PROPOSED NEW LEGISLATION MAY IMPACT FUNDING ELIGIBILITY FOR BUSINESSES THAT OUTSOURCE CALL CENTERS OVERSEAS

Proposed new bill > Arizona Senator > raises potential flags for business owners and real estate investors.

A new bill proposed from Arizona Senator Ruben Gallego is raising important flags for business owners and commercial real estate investors. If your business, or your tenant's business, relies on offshore call centers or third-party customer service providers, this proposal could significantly impact access to financing and federal opportunities if not accounted for in advance.

Key Highlights of the Proposed Bill:

• Advance Notice Required: Businesses must notify the U.S. Secretary of Labor 120 days before shifting call center operations overseas or contracting to a foreign third party (i.e., BPOs).

• Public Tracking: Once reported, businesses are added to a publicly available list maintained by the U.S. Secretary of Labor of all employers that relocate or contract call center work overseas, defined as moving at least 30% of call volume offshore.

• Stiff Penalties: Failure to notify results in a $10,000 per day fine until compliance is met.

• Funding Restrictions: Businesses added to the list become ineligible to apply for or receive any federal grant or federally guaranteed loan for 5 years, unless they meet removal criteria, such as relocating those operations back to the U.S. or amending contracts to return jobs onshore. This could restrict access to programs like SBA, HUD, USDA, and others, programs that back an estimated 75% of commercial business loans.

More Than Just Fines, Here’s What Else Is in the Bill:

• Clawback Clause: Even if a business gets a loan before outsourcing, the government can revoke funding if offshoring occurs later.

• Federal Contract Impact: Companies on the list may be disqualified from federal contracting opportunities, as preference will be given to U.S.-based operators.

• Mandatory Call Disclosures: All inbound and outbound calls must disclose the physical location of the agent, even AI-generated calls.

• Transfer Option: If the call is handled outside the U.S., the consumer must be offered the option to transfer to a U.S. based representative.

• Annual Certification: All businesses with call center operations must annually certify their offshoring strategy with the FCC.

• FTC Enforcement: Non-compliance could trigger FTC penalties under the Federal Trade Commission Act.

• 8.3% Monthly Penalty on Existing Loans: If a business already has a federal loan and then offshores its call center operations, it may be required to pay a monthly penalty equal to 8.3% of the total disbursed loan amount and will no longer be eligible for future disbursements. If not resolved within a year, the loan must be canceled.

  
  

 Definitions That Matter:

• Call Center: Includes remote or in-office employees handling calls, emails, or digital communications for customer assistance.

• Relocation/Contracting: Refers to shifting 30%+ of total call volume outside the U.S., either directly or through outsourcing.

• Employer Threshold: Applies to businesses with 50+ employees or 1,500+ hours of call center labor weekly.

What This Means for CRE Owners, Operators, and Tenants

Whether you're:

• A business considering outsourcing,

• A commercial property owner with call center tenants, or

• An investor involved in federally backed financing or leasing arrangements,

this bill could directly affect your strategy, risk exposure, and long-term access to capital if not accounted for in advance.

Insight

This proposed law goes far beyond labor, it has direct implications for financing, compliance, and commercial leasing. 

If you're currently:

• Evaluating a tenant mix,

• Planning a refinance or acquisition,

• Engaged in a federal loan program, or

• Relying on outsourced labor for operations,

you are highly encouraged to take a fresh look at how this may affect your future eligibility, partnerships, and plans.

I’m here to help you navigate shifts in policy that could impact your real estate strategy, valuation, or capital stack.

Let’s schedule time to review your commercial real estate needs so should this bill be passed you'll be able to weather the change.

All The Best!

Alicia Milton | Real Estate With Alicia | (602) 400-7769 | Alicia@RealEstateWithAlicia.com

KW Commercial, A Division of Keller Williams Realty East Valley

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Fellow KW Commercial broker, Christopher McCarthy, notified our team about the BREAKING NEWS from Contact Center Compliance. Full Article: https://www.dnc.com/blog/breaking-news-consequences-for-relocating-or-contracting-call-center-work-overseas-the-newest-message-from-your-elected-officials Proposed Bill: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.gallego.senate.gov/wp-content/uploads/2025/07/Keep-Call-Centers-in-America-Act-of-2025-1.pdf