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S. 2162: SBA Franchise Loan Default Disclosure Act


The text of the bill below is as of Jun 22, 2021 (Introduced).


II

117th CONGRESS

1st Session

S. 2162

IN THE SENATE OF THE UNITED STATES

June 22, 2021

(for herself and Ms. Warren) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

A BILL

To require the Small Business Administration to publish loan default rates by franchise brand, and for other purposes.

1.

Short title

This Act may be cited as the SBA Franchise Loan Default Disclosure Act.

2.

Publication of default rates by franchise brand

(a)

Definitions

In this section—

(1)

the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and

(2)

the term franchise has the meaning given the term in section 436.1 of title 16, Code of Federal Regulations, as in effect on July 1, 2007.

(b)

Publication of default rates

The Administrator shall publish and update on a quarterly basis loan default rates by franchise brand during the preceding 10-year period on the website of the Administration in a manner that is publicly accessible and linked to the Franchise Directory of the Administration.