Small Business Microlending Expansion Act of 2009 - (Sec. 2) Amends the Small Business Act with respect to the Small Business Administration (SBA) Microloan program (small-scale loans to start-up, newly established, or growing small businesses for working capital or the acquisition of materials, supplies, or equipment) to direct the SBA Administrator to establish a process under which an intermediary making a Microloan loan provides relevant borrower information to the major credit reporting agencies.
(Sec. 3) Removes the requirement that such loans be short-term only.
(Sec. 4) Increases eligibility for Microloan program participation to include intermediaries with at least one full-time employee with not less than: (1) three years of experience making microloans to startup, newly established, or growing small businesses; or (2) one year of experience providing intensive marketing, management, and technical assistance to borrowers.
(Sec. 5) Increases from: (1) $750,000 to $1 million the loan limit to an intermediary in the first year of participation; and (2) $3.5 million to $7 million the loan limit for the remaining years of participation.
(Sec. 6) Increases from 25% to 35% of grant funds received the maximum amount that may be used by an intermediary to provide information and technical assistance to small business borrowers.
(Sec. 7) Allows intermediaries that receive grants to establish a program that provides technical assistance to young entrepreneurs in establishing or operating a small business, or in securing financing, in the area served by the intermediary.
(Sec. 8) Increases from $7,500 to $10,000 the maximum loan amount to a small business borrower that will qualify for a reduced interest rate from the intermediary.
(Sec. 9) Directs the Administrator to submit annually to the congressional small business committees specified information with respect to the Microloan program, including participating intermediaries and borrowers, and the marketing, management, and technical assistance provided.
(Sec. 10) Authorizes the Administrator to make grants to intermediaries for reducing interest rates charged to Microloan borrowers (interest assistance grants).
(Sec. 11) Authorizes the Administrator to make Microloan technical assistance grants, direct loans, and interest assistance grants for FY2010-FY2011, and authorizes appropriations for such loans and grants.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3737 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 3737
To amend the Small Business Act to improve the Microloan Program, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 7, 2009
Mr. Ellsworth introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to improve the Microloan Program, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Microlending
Expansion Act of 2009''.
SEC. 2. MICROLOAN CREDIT BUILDING INITIATIVE.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is
amended by adding at the end the following:
``(14) Credit reporting information.--The Administrator
shall establish a process, for use by an intermediary making a
loan to a borrower under this subsection, under which the
intermediary shall provide to the major credit reporting
agencies the information about the borrower, both positive and
negative, that is relevant to credit reporting, such as the
payment activity of the borrower on the loan. Such process
shall allow an intermediary the option of providing information
to the major credit reporting agencies through the
Administration or independently.''.
SEC. 3. FLEXIBLE CREDIT TERMS.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as
amended by this Act, is further amended--
(1) in paragraph (1)(B)(i) by striking ``short-term,'';
(2) in paragraph (6)(A) by striking ``short-term,''; and
(3) in paragraph (11)(B) by striking ``short-term,''.
SEC. 4. INCREASED PROGRAM PARTICIPATION.
Section 7(m)(2) of the Small Business Act (15 U.S.C. 636(m)(2)) is
amended--
(1) in subparagraph (A) by striking ``paragraph (10)'' and
inserting ``paragraph (11)''; and
(2) by amending subparagraph (B) to read as follows:
``(B) has--
``(i) at least--
``(I) 1 year of experience making
microloans to startup, newly
established, or growing small business
concerns; or
``(II) 1 full-time employee who has
not less than 3 years of experience
making microloans to startup, newly
established, or growing small business
concerns; and
``(ii) at least--
``(I) 1 year of experience
providing, as an integral part of its
microloan program, intensive marketing,
management, and technical assistance to
its borrowers; or
``(II) 1 full-time employee who has
not less than 1 year of experience
providing intensive marketing,
management, and technical assistance to
borrowers.''.
SEC. 5. INCREASED LIMIT ON INTERMEDIARY BORROWING.
Section 7(m)(3)(C) of the Small Business Act (15 U.S.C.
636(m)(3)(C)) is amended--
(1) by striking ``$750,000'' and inserting ``$1,000,000'';
(2) by striking ``$3,500,000'' and inserting
``$7,000,000''; and
(3) by adding at the end the following: ``The Administrator
may treat the amount of $7,000,000 in this subparagraph as if
such amount is $10,000,000 if the Administrator determines,
with respect to an intermediary, that such treatment is
appropriate.''.
SEC. 6. EXPANDED BORROWER EDUCATION ASSISTANCE.
Section 7(m)(4)(E) of the Small Business Act (15 U.S.C.
636(m)(4)(E)) is amended--
(1) in clause (i) by striking ``25 percent'' and inserting
``35 percent''; and
(2) in clause (ii) by striking ``25 percent'' and inserting
``35 percent''.
SEC. 7. INTEREST RATES AND LOAN SIZE.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as
amended by this Act, is further amended--
(1) in paragraph (3)(F)(iii) by striking ``$7,500'' and
inserting ``$10,000'';
(2) in paragraph (6)(C)(i) by striking ``$7,500'' and
inserting ``$10,000''; and
(3) in paragraph (6)(C)(ii) by striking ``$7,500'' and
inserting ``$10,000''.
SEC. 8. REPORTING REQUIREMENT.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as
amended by this Act, is further amended by adding at the end the
following:
``(15) Reporting requirement.--Not later than 90 days after
the end of each fiscal year, the Administrator shall submit to
the Committee on Small Business of the House of Representatives
and the Committee on Small Business and Entrepreneurship of the
Senate a report that includes, with respect to such fiscal year
of the microloan program, the following:
``(A) The names and locations of each intermediary
that received funds to make microloans or provide
marketing, management, and technical assistance.
``(B) The amounts of each loan and each grant
provided to each such intermediary in such fiscal year
and in prior fiscal years.
``(C) A description of the contributions from non-
Federal sources of each such intermediary.
``(D) The number and amounts of microloans made by
each such intermediary to all borrowers and to each of
the following:
``(i) Women entrepreneurs and business
owners.
``(ii) Low-income entrepreneurs and
business owners.
``(iii) Veteran entrepreneurs and business
owners.
``(iv) Disabled entrepreneurs and business
owners.
``(v) Minority entrepreneurs and business
owners.
``(E) A description of the marketing, management,
and technical assistance provided by each such
intermediary to all borrowers and to each of the
following:
``(i) Women entrepreneurs and business
owners.
``(ii) Low-income entrepreneurs and
business owners.
``(iii) Veteran entrepreneurs and business
owners.
``(iv) Disabled entrepreneurs and business
owners.
``(v) Minority entrepreneurs and business
owners.
``(F) The number of jobs created and retained as a
result of microloans and marketing, management, and
technical assistance provided by each such
intermediary.
``(G) The repayment history of each such
intermediary.
``(H) The number of businesses that achieved
success after receipt of a microloan.''.
SEC. 9. SURPLUS INTEREST RATE SUBSIDY FOR BUSINESSES.
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as
amended by this Act, is further amended by adding at the end the
following:
``(16) Interest assistance.--
``(A) In general.--The Administrator is authorized
to use amounts determined unlikely to be expended under
subparagraph (B) to assist borrowers that receive a
microloan under this subsection to reduce the interest
paid with respect to such microloan.
``(B) Amounts unlikely to be expended.--Not later
than April 1 of each fiscal year, the Administrator
shall determine if any amounts made available to carry
out this subsection for such fiscal year are unlikely
to be expended for activities under this subsection
other than activities under this paragraph.''.
SEC. 10. AUTHORIZATION OF APPROPRIATIONS.
Section 20 of the Small Business Act (15 U.S.C. 631 note) is
amended by inserting after subsection (e) the following:
``(f) Fiscal Years 2010 and 2011.--
``(1) Program levels.--For the programs authorized by this
Act, the Administration is authorized to make during each of
fiscal years 2010 and 2011--
``(A) $80,000,000 in technical assistance grants,
as provided in section 7(m); and
``(B) $110,000,000 in direct loans, as provided in
section 7(m).
``(2) Authorization of appropriations.--There is authorized
to be appropriated such sums as may be necessary to carry out
paragraph (1).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
Referred to the Subcommittee on Finance and Tax.
Subcommittee Consideration and Mark-up Session Held.
Forwarded by Subcommittee to Full Committee by Voice Vote .
Provisions of Measure Incorporated into H.R. 3854.
Ms. Velazquez moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H12466-12469)
DEBATE - The House proceeded with forty minutes of debate on H.R. 3737.
At the conclusion of debate, the chair put the question on the motion to suspend the rules. Ms. Velazquez objected to the vote on the grounds that a quorum was not present. Further proceedings on the motion were postponed. The point of no quorum was withdrawn.
Considered as unfinished business. (consideration: CR H12594-12595)
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 23 (Roll no. 876).(text: CR 11/6/2009 H12466-12467)
Roll Call #876 (House)On motion to suspend the rules and pass the bill, as amended Agreed to by the Yeas and Nays: (2/3 required): 405 - 23 (Roll no. 876). (text: CR 11/6/2009 H12466-12467)
Roll Call #876 (House)Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.