The Microbusiness Support Act would create a new direct loan program through the Small Business Administration to provide financing directly to very small businesses. The program targets microbusinesses defined as independently owned companies with no more than 10 full-time employees and annual revenue not exceeding $5 million or the relevant industry size standard, whichever is lower. Eligible businesses could borrow up to $100,000 per loan, with interest rates set at 6 percent per year. The SBA would have 90 days after enactment to establish the detailed rules governing loan terms, repayment schedules, and underwriting standards, and could partner with banks and other third parties to process applications and manage loans while collecting fees to cover administrative costs.
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