NASBP Focal Point – May 7, 2024

Federal Report

118th Congress–The numbers don’t lie: As of April 29, over 12,000 bills have been introduced during the 118th Congress, which is being characterized as the “do nothing Congress.” Of those bills, 3,000 have been considered in Committee(s), 463 have been considered on the floor (Senate and/or House), 426 have passed one chamber, while only 54 have passed both chambers, and ONLY 46 bills have been signed into law. With these numbers, the 118th Congress is on track to become the least productive Congress since the Great Depression.

Congress, however, was able to unite on foreign aid support for Taiwan, Israel, and Ukraine and to reauthorize the Foreign Intelligence Surveillance Act (FISA). It also appears, as reported in the April 25 Focal Point, that Congress is prepared to reauthorize the Federal Aviation Administration (FAA), which is set to expire on Friday, May 10. Last Wednesday, the Senate voted to begin debate on H.R. 3935, the FAA Reauthorization Act of 2024 and will return this week to work through the amendment process. The Senate’s activity is in anticipation of the House moving forward on the FAA bill this week. The FAA bill calls for significant investments for construction in the nation’s airports as delineated in Title IV, “Airport Improvement Program Modifications.”

SBA Bond Guarantee Program: Changes were recently adopted in the Program which become effective on May 30, 2024. Those changes include the following revisions to Section § 115.13, “Eligibility of Principal.”

(2) … A Person’s good character and reputation is presumed absent when:

(i): The Person is currently incarcerated, serving a sentence of imprisonment imposed upon adjudication of guilty, or under indictment for a felony. Changes to the Program impact applicants and producers in the following manner:

• No criminal history check: Criminal history will no longer be requested for applications. (SBA is only concerned with current status);
• No fingerprints: Application procedures no longer include fingerprint checks for individuals with a prior criminal history of any kind;
• Yes means no: An answer of “Yes” to the language above is automatic ineligibility for the program and;
• SBA rights to further review: Additional SBA review will only occur if SBA receives information indicating the above ineligiblity language applies to the applicant.

The entire list of changes to SBA Capital Access programs can be found here:

Federal Register :: Criminal Justice Reviews for the SBA Business Loan Programs, Disaster Loan Programs, and Surety Bond Guaranty Program

State Activity

Update: LA HB514(Braud): Amends R.S. 48:252(A)/253(A) by increasing the bond threshold from $50,000 to $100,00 for Louisiana DOT contracts. HB514 passed both chambers and was delivered to the Governor on May 2.

If you are aware of any bills impacting the industry, please reach out to Larry LeClair, NASBP’s Director of Government Relations, and let us know.