Rural Microentrepreneur Assistance Act of 2025
Summary
The Rural Microentrepreneur Assistance Act of 2025 aims to amend the Consolidated Farm and Rural Development Act. The primary goal is to extend and enhance the Rural Microentrepreneur Assistance Program. This involves increasing funding, expanding eligible uses of microloans, and extending the program's authorization period.
Expected Effects
If enacted, the bill would increase the maximum microloan amount from $50,000 to $75,000. It also allows microloans to cover up to 50% of demolition, construction, or related real estate improvement costs. Furthermore, the bill extends the program's authorization through 2030.
Potential Benefits
- Increased access to capital for rural microentrepreneurs.
- Expanded uses of microloans to include real estate improvements.
- Increased funding for microenterprise development organizations.
- Extended program authorization provides long-term stability.
- Potential for job creation and economic growth in rural areas.
Potential Disadvantages
- Potential for increased government spending and debt.
- Risk of misuse of funds by microentrepreneurs or development organizations.
- Limited impact if demand for microloans is low.
- May not address other barriers to entrepreneurship in rural areas.
- The 50% limit on real estate costs might still be a barrier for some projects.
Constitutional Alignment
The bill appears to align with the Constitution's Article I, Section 8, which grants Congress the power to regulate commerce and provide for the general welfare. The bill's focus on rural development can be seen as an effort to promote economic activity and improve living conditions in rural areas. There is no apparent infringement on individual rights or liberties as defined in the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).