[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4173 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4173

 To amend the Small Business Act to provide for expanded participation 
                in the microloan demonstration program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 1994

 Mr. Machtley introduced the following bill; which was referred to the 
                      Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act to provide for expanded participation 
                in the microloan demonstration program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LOAN GUARANTEES.

    (a) In General.--Section 7(m)(3) of the Small Business Act (15 
U.S.C. 636(m)(3)) is amended by adding at the end the following:
                    ``(I) Loan guarantees.--The Administration may make 
                loans to intermediaries under this subsection either 
                directly or in cooperation with banks or other 
                financial institutions through agreements to 
                participate on an immediate or deferred (guaranteed) 
                basis. Participation in deferred participation loans 
                under this subsection shall be subject to the terms and 
                conditions applicable to participation in such loans 
                under subsection (a); except that for any loan under 
                this subsection such participation shall be equal to 
                100 percent of the balance of the financing outstanding 
                at the time of disbursement.''.
    (b) Conforming Amendments.--Section 7(m) of such Act (15 U.S.C. 
636(m)) is amended--
            (1) in paragraph (1)(B)(i) by striking ``direct''; and
            (2) in paragraph (3)(H) by striking ``subparagraphs (B) and 
        (D)'' and inserting ``subparagraphs (B), (D), and (I)''.

SEC. 2. STATE FUNDING LIMITATIONS.

    Section 7(m)(7)(C) of the Small Business Act (15 U.S.C. 
636(m)(7)(C)) is amended--
            (1) by striking clause (i);
            (2) by redesignating clauses (ii) and (iii) as clauses (i) 
        and (ii), respectively; and
            (3) in clause (i), as so redesignated, by striking ``such 
        programs'' and inserting ``microloan programs''.

SEC. 3. MICROLOAN INTERMEDIARIES.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
amended--
            (1) in paragraph (11)(A)(iv) by inserting ``, except as 
        provided by paragraph (12),'' after ``other than''; and
            (2) by adding at the end the following:
            ``(12) Municipal agencies and instrumentalities.--An agency 
        or instrumentality of a municipal government shall be 
        considered to be a quasi-governmental economic development 
        entity under paragraph (11)(A)(iv) if the agency or 
        instrumentality--
                    ``(A) has a governing body with a majority of its 
                members from the private sector; and
                    ``(B) is not under the direct administrative 
                control of the municipal government.
        For the purposes of this paragraph, the use of public employees 
        by an agency or instrumentality of a municipal government shall 
        not be considered to constitute direct administrative control 
        by the municipal government and shall not otherwise affect the 
        eligibility of the agency or instrumentality as a quasi-
        governmental economic development entity.''.

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