Microloan Transparency and Accountability Act of 2021

IIB 117TH CONGRESS 1ST SESSION H. R. 1487 IN THE SENATE OF THE UNITED STATES APRIL 19, 2021 Received; read twice and referred to the Committee on Small Business and Entrepreneurship AN ACT To amend the Small Business Act to increase transparency, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:33 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1487.RFS H1487 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 1487 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Microloan Trans- 2 parency and Accountability Act of 2021’’. 3 SEC. 2. PORTFOLIO RISK ANALYSIS OF MICROLOANS. 4 Section 7(m)(10) of the Small Business Act (15 5 U.S.C. 636(m)(10)) is amended— 6 (1) by redesignating subparagraphs (A) through 7 (F) as clauses (i) through (vi), respectively, and ad- 8 justing the margins accordingly; 9 (2) by amending clause (iv), as so redesignated, 10 to read as follows: 11 ‘‘(vi) the number, amount, and per- 12 centage of microloans made by inter- 13 mediaries to small business concerns— 14 ‘‘(I) that went into default in the 15 previous year; and 16 ‘‘(II) that were charged off in the 17 previous year by such inter- 18 mediaries;’’; 19 (3) in clause (vi), as so redesignated, by strik- 20 ing ‘‘and’’ at the end; 21 (4) by redesignating subparagraph (G) as 22 clause (xviii), and adjusting the margin accordingly; 23 (5) by striking ‘‘On November 1, 1995,’’ and all 24 that follows through ‘‘the following:’’ and inserting 25 the following: 26 VerDate Sep 11 2014 23:33 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1487.RFS H1487 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 1487 RFS ‘‘(A) IN GENERAL.—Beginning on Feb- 1 ruary 1, 2022, and annually thereafter, the Ad- 2 ministrator shall submit to the Committee on 3 Small Business and Entrepreneurship of the 4 Senate and the Committee on Small Business 5 of the House of Representatives, and make 6 available to the public on the website of the Ad- 7 ministration, a report on the effectiveness of 8 the microloan program during the fiscal year 9 preceding the date of the report. Such report 10 shall include—’’; 11 (6) in subparagraph (A), as so designated, by 12 inserting after clause (vi) the following new clauses: 13 ‘‘(vii) the number and type of enforce- 14 ment actions taken by the Administrator 15 against noncompliant intermediaries; 16 ‘‘(viii) an analysis of compliance by 17 intermediaries with the credit availability 18 requirements of paragraph (3)(E) for loans 19 in an amount greater than $20,000; 20 ‘‘(ix) the extent to which microloans 21 are provided to small business concerns in 22 rural areas; 23 VerDate Sep 11 2014 23:33 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1487.RFS H1487 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 1487 RFS ‘‘(x) the number of underserved bor- 1 rowers, as defined by the Administration, 2 participating in the microloan program; 3 ‘‘(xi) the average rate of interest for 4 each microloan; 5 ‘‘(xii) the average amount of fees 6 charged for each microloan; 7 ‘‘(xiii) the average size of each 8 microloan, including— 9 ‘‘(I) the number of loans made in 10 an amount greater than $20,000; and 11 ‘‘(II) the average size and 12 charge-off rate of such loans; 13 ‘‘(xiv) the subsidy cost to the Admin- 14 istration; 15 ‘‘(xv) the number and percentage of 16 microloans that were made to refinance 17 other loans; 18 ‘‘(xvi) the number and percentage of 19 microloans made to new program partici- 20 pants and the number and percentage of 21 microloans made to previous program par- 22 ticipants; 23 VerDate Sep 11 2014 23:33 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1487.RFS H1487 pamtmann on DSKBC07HB2PROD with BILLS 5 HR 1487 RFS ‘‘(xvii) the average amount of tech- 1 nical assistance grant monies spent on 2 each loan; and’’; and 3 (7) by adding at the end the following: 4 ‘‘(B) PRIVACY.—Each report submitted 5 under subparagraph (A) shall not contain any 6 personally identifiable information of any bor- 7 rower.’’. 8 Passed the House of Representatives April 15, 2021. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:33 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1487.RFS H1487 pamtmann on DSKBC07HB2PROD with BILLS