Microloan Program Enhancement Act of 2019

II 116TH CONGRESS 1ST SESSION S. 996 To modify the microloan program of the Small Business Administration, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 2, 2019 Ms. DUCKWORTH introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To modify the microloan program of the Small Business Administration, 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 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Microloan Program 4 Enhancement Act of 2019’’. 5 SEC. 2. MICROLOAN PROGRAM. 6 (a) IN GENERAL.—Section 7(m) of the Small Busi- 7 ness Act (15 U.S.C. 636(m)) is amended— 8 (1) in paragraph (3)(C)— 9 VerDate Sep 11 2014 17:06 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S996.IS S996 pbinns on DSK79D2C42PROD with BILLS 2 •S 996 IS (A) by striking ‘‘and $6,000,000’’ and in- 1 serting ‘‘, $7,000,000, in the aggregate,’’; and 2 (B) by inserting before the period at the 3 end the following: ‘‘, and $3,000,000 in any of 4 those remaining years’’; 5 (2) in paragraph (4)— 6 (A) in subparagraph (A), by striking ‘‘sub- 7 paragraph (C)’’ each place that term appears 8 and inserting ‘‘subparagraphs (C) and (G)’’; 9 (B) in subparagraph (C)(i), by striking 10 ‘‘subparagraph (A)’’ and inserting ‘‘subpara- 11 graphs (A) and (G)’’; and 12 (C) by adding at the end the following: 13 ‘‘(G) GRANT AMOUNTS BASED ON APPRO- 14 PRIATIONS.—In any fiscal year in which the 15 amount appropriated to make grants under 16 subparagraph (A) is sufficient to provide to 17 each intermediary that receives a loan under 18 paragraph (1)(B)(i) a grant of not less than 25 19 percent of the total outstanding balance of 20 loans made to the intermediary under this sub- 21 section, the Administration shall make a grant 22 under subparagraph (A) to each intermediary 23 of not less than 25 percent and not more than 24 VerDate Sep 11 2014 17:06 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S996.IS S996 pbinns on DSK79D2C42PROD with BILLS 3 •S 996 IS 30 percent of that total outstanding balance for 1 the intermediary.’’; 2 (3) in paragraph (8)— 3 (A) by striking ‘‘In approving’’ and insert- 4 ing the following: 5 ‘‘(A) IN GENERAL.—In approving’’; and 6 (B) by adding at the end the following: 7 ‘‘(B) ANNUAL REPORT.—The Adminis- 8 trator shall, on an annual basis, submit to the 9 Committee on Small Business and Entrepre- 10 neurship of the Senate and the Committee on 11 Small Business of the House of Representa- 12 tives, and make publicly available on the 13 website of the Administration, a report on how 14 the Administration has met the requirements of 15 subparagraph (A).’’; and 16 (4) in paragraph (10)— 17 (A) in the matter preceding subparagraph 18 (A)— 19 (i) by striking ‘‘On November 1, 20 1995, the Administration shall’’ and in- 21 serting ‘‘The Administration shall, on an 22 annual basis,’’; 23 VerDate Sep 11 2014 17:06 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S996.IS S996 pbinns on DSK79D2C42PROD with BILLS 4 •S 996 IS (ii) by inserting ‘‘and make available 1 to the public on the website of the Admin- 2 istration’’ after ‘‘Representatives’’; and 3 (iii) by striking ‘‘of the first 3 1⁄2 4 years’’; 5 (B) in subparagraph (F), by striking 6 ‘‘and’’ at the end; 7 (C) by redesignating subparagraph (G) as 8 subparagraph (I); and 9 (D) by inserting after subparagraph (F) 10 the following: 11 ‘‘(G) the number of small business con- 12 cerns that received a microloan that remain in 13 business after completing the final payment of 14 the microloan; 15 ‘‘(H) the number of jobs created and re- 16 tained by small business concerns after com- 17 pleting the final payment of the microloan; 18 and’’. 19 (b) MINIMUM ALLOCATION.—Section 7(m) of the 20 Small Business Act (15 U.S.C. 636(m)) is amended by 21 striking paragraph (7) and inserting the following: 22 ‘‘(7) PROGRAM FUNDING FOR MICROLOANS.— 23 Under the program authorized by this subsection, 24 VerDate Sep 11 2014 17:06 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S996.IS S996 pbinns on DSK79D2C42PROD with BILLS 5 •S 996 IS the Administration may fund, on a competitive basis, 1 not more than 300 intermediaries.’’. 2 (c) PROGRAM LEVELS.—Section 20 of the Small 3 Business Act (15 U.S.C. 631 note) is amended by adding 4 at the end the following: 5 ‘‘(h) MICROLOAN PROGRAM.—The following program 6 levels are authorized for the microloan program under sec- 7 tion 7(m): 8 ‘‘(1) FISCAL YEAR 2020.—For the programs au- 9 thorized by this Act, the Administration is author- 10 ized to make, for fiscal year 2020— 11 ‘‘(A) $80,000,000 in technical assistance 12 grants, as provided in section 7(m); and 13 ‘‘(B) $110,000,000 in direct loans, as pro- 14 vided in section 7(m). 15 ‘‘(2) FISCAL YEAR 2021.—For the programs au- 16 thorized by this Act, the Administration is author- 17 ized to make, for fiscal year 2021— 18 ‘‘(A) $80,000,000 in technical assistance 19 grants, as provided in section 7(m); and 20 ‘‘(B) $110,000,000 in direct loans, as pro- 21 vided in section 7(m). 22 ‘‘(3) FISCAL YEAR 2022.—For the programs au- 23 thorized by this Act, the Administration is author- 24 ized to make, for fiscal year 2022— 25 VerDate Sep 11 2014 17:06 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S996.IS S996 pbinns on DSK79D2C42PROD with BILLS 6 •S 996 IS ‘‘(A) $80,000,000 in technical assistance 1 grants, as provided in section 7(m); and 2 ‘‘(B) $110,000,000 in direct loans, as pro- 3 vided in section 7(m).’’. 4 Æ VerDate Sep 11 2014 17:06 Apr 06, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\S996.IS S996 pbinns on DSK79D2C42PROD with BILLS