Congress is rounding out 2021 with a cooperative highlight. On Tuesday, December 22, 2021, Colorado’s Congressman Joe Neguse (CO-2) introduced the Capital for Cooperatives Act in the House.
This bill eliminates the requirement that cooperatives provide a personal guarantee with respect to certain Small Business Administration (SBA) loans. It also requires the SBA, in collaboration with the Interagency Working Group on Cooperative Development, to develop recommendations and cooperate with federal agencies and other entities to promote, support, and increase the number of cooperatives in the U.S.
The bill is a complement to the Senate legislation introduced by Sen. Hickenlooper (CO) earlier this year to remove barriers for cooperatives in accessing capital at SBA.