SBA Franchise Loan Default Disclosure Act

II 117TH CONGRESS 1ST SESSION S. 2162 To require the Small Business Administration to publish loan default rates by franchise brand, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 22, 2021 Ms. CORTEZ MASTO (for herself and Ms. WARREN) introduced the following bill; which was read twice and referred to the Committee on Small Busi- ness and Entrepreneurship A BILL To require the Small Business Administration to publish loan default rates by franchise brand, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘SBA Franchise Loan 4 Default Disclosure Act’’. 5 SEC. 2. PUBLICATION OF DEFAULT RATES BY FRANCHISE 6 BRAND. 7 (a) DEFINITIONS.—In this section— 8 VerDate Sep 11 2014 16:41 Jun 25, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2162.IS S2162 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2162 IS (1) the terms ‘‘Administration’’ and ‘‘Adminis- 1 trator’’ mean the Small Business Administration 2 and the Administrator thereof, respectively; and 3 (2) the term ‘‘franchise’’ has the meaning given 4 the term in section 436.1 of title 16, Code of Fed- 5 eral Regulations, as in effect on July 1, 2007. 6 (b) PUBLICATION OF DEFAULT RATES.—The Ad- 7 ministrator shall publish and update on a quarterly basis 8 loan default rates by franchise brand during the preceding 9 10-year period on the website of the Administration in a 10 manner that is publicly accessible and linked to the Fran- 11 chise Directory of the Administration. 12 Æ VerDate Sep 11 2014 16:41 Jun 25, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S2162.IS S2162 pamtmann on DSKBC07HB2PROD with BILLS