New Bill Mandates Study to Speed Up Small Business Loans in Appalachia, Targeting 2021-2024 Data.

The Main Street Lending Improvement Act of 2025 doesn't rewrite the rulebook on small business loans just yet, but it does mandate a deep-dive study aimed at fixing one of the biggest headaches for entrepreneurs: the time it takes to get funding. Specifically, this bill tasks the Comptroller General of the United States (the head of the Government Accountability Office, or GAO) with spending the next two years figuring out why small business loans move slower in certain regions.

The Appalachian Loan Timeline Audit

If you run a small business—say, a local construction company or a main street diner—you know that time is money, especially when you’re waiting on a loan to buy new equipment or expand your payroll. This bill zeroes in on the Appalachian region, requiring the GAO to compare the loan disbursement process there against similar non-Appalachian areas. The study must look at data from January 1, 2021, through December 31, 2024, analyzing several key metrics.

They’re not just looking at approval rates; they want the nitty-gritty details. The GAO must calculate the average length of time between a business submitting a loan application and actually receiving the funds. They also need to break down the time spent on each step of the process. Think of it like a time-motion study for bureaucracy. Furthermore, they will measure the volume of loans disbursed and approved per 1,000 small businesses in both regions, along with the average dollar amount of those loans. This is all about identifying if and where the government’s lending machinery is jamming up for businesses in these areas.

Why This Matters to Your Bottom Line

For a small manufacturer in, say, rural Kentucky, waiting an extra three months for a crucial Small Business Act (SBA) loan could mean the difference between hiring five new people or having to hold off until next year. By comparing the Appalachian region (defined by 40 U.S.C. 14102(a)(1)) against other covered regions, the study aims to pinpoint specific government inefficiencies. Crucially, the bill excludes any loans made under COVID-19 relief programs, like PPP or EIDL, focusing instead on the standard, long-term lending programs (like the popular 7(a) loans).

The Path to Faster Funding

This is a fact-finding mission with a clear objective: fixing the system. The Comptroller General has to brief Congress within one year and submit a final report with the study's results within two years of the law’s enactment. That final report isn't just data; it must include specific recommendations. These recommendations need to focus on how to increase loan accessibility, decrease the average time from application to funding, and improve the information available to applicants—such as providing clearer timelines and status updates. Essentially, the bill is asking the GAO to draw up a blueprint for a more efficient, user-friendly lending process for small businesses, forcing federal agencies to look inward at their own mechanisms and processes to reduce government drag.