Microloan Improvement Act of 2021

IIB 117TH CONGRESS 1ST SESSION H. R. 1502 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 optimize the operations of the microloan program, lower costs for small business concerns and intermediary participants in the program, 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 23:34 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1502.RFS H1502 pamtmann on DSKBC07HB2PROD with BILLS 2 HR 1502 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Microloan Improve- 2 ment Act of 2021’’. 3 SEC. 2. INTEREST RATE FOR CERTAIN INTERMEDIARIES. 4 Section 7(m)(3)(F)(iii) of the Small Business Act (15 5 U.S.C. 636(m)(3)(F)(iii)) is amended by striking 6 ‘‘$7,500’’ and inserting ‘‘$10,000’’. 7 SEC. 3. LINES OF CREDIT AUTHORIZED. 8 Section 7(m)(6)(A) of the Small Business Act (15 9 U.S.C. 636(m)(6)(A)) is amended by inserting ‘‘(including 10 lines of credit)’’ after ‘‘fixed rate loans’’. 11 SEC. 4. EXTENDED REPAYMENT TERMS. 12 (a) IN GENERAL.—Section 7(m)(6) of the Small 13 Business Act (15 U.S.C. 636(m)(6)) is amended by add- 14 ing at the end the following: 15 ‘‘(F) REPAYMENT TERMS.— 16 ‘‘(i) LIMITATION ON REPAYMENTS 17 TERM.—The repayment term for a loan 18 made under this paragraph shall not be 19 more than— 20 ‘‘(I) in the case of a loan made 21 by an intermediary of $10,000 or less, 22 7 years; and 23 ‘‘(II) in the case of a loan made 24 by an intermediary of greater than 25 $10,000, 10 years. 26 VerDate Sep 11 2014 23:34 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1502.RFS H1502 pamtmann on DSKBC07HB2PROD with BILLS 3 HR 1502 RFS ‘‘(ii) NO ADDITIONAL LIMITATIONS.— 1 The Administrator may not impose any ad- 2 ditional limitation on the term for repay- 3 ment of a loan made by an intermediary 4 under this paragraph.’’. 5 (b) TECHNICAL AMENDMENT.—Section 329(c) of the 6 Economic Aid to Hard-Hit Small Businesses, Nonprofits, 7 and Venues Act (Public Law 116–260; 134 Stat. 2042 8 15 U.S.C. 636 note) is repealed. 9 SEC. 5. PROGRAM FUNDING FOR MICROLOANS. 10 (a) IN GENERAL.—Section 7(m) of the Small Busi- 11 ness Act (15 U.S.C. 636(m)) is amended— 12 (1) in paragraph (7)(B)— 13 (A) by amending clause (i) to read as fol- 14 lows: 15 ‘‘(i) ALLOCATION.—Subject to the 16 availability of appropriations and for the 17 first 2 quarters of a fiscal year, of the total 18 amount of new loan funds made available 19 for award under this subsection in such 20 fiscal year, the Administrator shall— 21 ‘‘(I) reserve 15 percent of such 22 funds for award to designated under- 23 utilized States; and 24 VerDate Sep 11 2014 23:34 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1502.RFS H1502 pamtmann on DSKBC07HB2PROD with BILLS 4 HR 1502 RFS ‘‘(II) make the remaining 85 per- 1 cent of such funds available for award 2 in any State.’’; and 3 (B) in clause (ii), by striking ‘‘to carry 4 out’’ and all that follows through the period at 5 the end and inserting the following: ‘‘under 6 clause (i)(I) remains unexpended, the Adminis- 7 trator may make that portion available for 8 award in any State or designated underutilized 9 State.’’; and 10 (2) in paragraph (11)— 11 (A) in subparagraph (C)(ii), by striking 12 ‘‘and’’ at the end; 13 (B) in subparagraph (D), by striking the 14 period at the end and inserting ‘‘; and’’; and 15 (C) by adding at the end the following new 16 subparagraph: 17 ‘‘(E) the term ‘State’ means each of the 18 several States, the District of Columbia, the 19 Commonwealth of Puerto Rico, the United 20 States Virgin Islands, Guam, the Northern 21 Mariana Islands, and American Samoa.’’. 22 (b) RULEMAKING.—Not later than 180 days after the 23 date of the enactment of this Act, the Administrator of 24 the Small Business Administration shall issue regulations 25 VerDate Sep 11 2014 23:34 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1502.RFS H1502 pamtmann on DSKBC07HB2PROD with BILLS 5 HR 1502 RFS to define the term ‘‘designated underutilized State’’, as 1 used in section 7(m)(7)(B) of the Small Business Act (15 2 U.S.C. 636(m)(7)(B)), as added by this section. 3 SEC. 6. CREDIT REPORTING INFORMATION. 4 The Administrator of the Small Business Administra- 5 tion shall issue rules establishing a process under which 6 an intermediary that makes a loan to a borrower under 7 section 7(m) of the Small Business Act (15 U.S.C. 8 636(m)) shall be required to provide the major credit re- 9 porting agencies with information about the borrower rel- 10 evant to credit reporting, such as the borrower’s payment 11 activity on the loan. 12 SEC. 7. REPORT REGARDING EQUITABLE DISTRIBUTION. 13 Section 7(m)(8) of the Small Business Act (15 14 U.S.C. 636(m)(8)) is amended— 15 (1) by striking ‘‘In approving’’ and inserting 16 the following: 17 ‘‘(A) IN GENERAL.—In approving’’; and 18 (2) by adding at the end the following: 19 ‘‘(B) ANNUAL REPORT.—The Adminis- 20 trator shall include in the report submitted 21 under paragraph (10), and make publicly avail- 22 able on the website of the Administration, infor- 23 VerDate Sep 11 2014 23:34 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1502.RFS H1502 pamtmann on DSKBC07HB2PROD with BILLS 6 HR 1502 RFS mation on how the Administration has met the 1 requirements of subparagraph (A).’’. 2 Passed the House of Representatives April 15, 2021. Attest: CHERYL L. JOHNSON, Clerk. VerDate Sep 11 2014 23:34 Apr 19, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1502.RFS H1502 pamtmann on DSKBC07HB2PROD with BILLS