[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2235 Introduced in House (IH)]




105th CONGRESS
  1st Session
                                H. R. 2235

    To amend the Small Business Act to make permanent the microloan 
                    program, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 1997

  Mr. Baldacci (for himself and Mr. LaFalce) introduced the following 
      bill; which was referred to the Committee on Small Business

_______________________________________________________________________

                                 A BILL


 
    To amend the Small Business Act to make permanent 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; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Microloan Program Improvement Act''.
    (b) Purpose.--To make permanent the microloan program, increase 
loan limits, and improve the loan loss reserve fund.

SEC. 2. MICROLOAN PROGRAM.

    (a) Loan Limits.--Section 7(m)(3)(C) of the Small Business Act (15 
U.S.C. 636(m)(3)(C)) is amended by striking ``$2,500,000'' and 
inserting ``$3,500,000''.
    (b) Loan Loss Reserve Fund.--Section 7(m)(3)(D) of the Small 
Business Act (15 U.S.C. 636(m)(3)(D)) is amended by striking clauses 
(i) and (ii) and inserting the following:
                            ``(i) during the initial 5 years of the 
                        intermediary's participation in the program 
                        under this subsection, at a level equal to not 
                        more than 15 percent of the outstanding balance 
                        of the notes receivable owed to the 
                        intermediary; and
                            ``(ii) in each year of participation 
                        thereafter, at a level equal to not more than 
                        the greater of--
                                    ``(I) 2 times an amount reflecting 
                                the total losses of the intermediary as 
                                a result of participation in the 
                                program under this subsection, as 
                                determined by the Administrator on a 
                                case-by-case basis; or
                                    ``(II) 10 percent of the 
                                outstanding balance of the notes 
                                receivable owed to the intermediary.''.
    (c) Authorization of Appropriations.--Section 7(m) of the Small 
Business Act (15 U.S.C. 636(m)) is amended--
            (1) in the subsection heading, by striking 
        ``Demonstration'';
            (2) by striking ``Demonstration'' each place that term 
        appears;
            (3) by striking ``demonstration'' each place that term 
        appears; and
            (4) in paragraph (12), by striking ``during fiscal years 
        1995 through 1997'' and inserting ``during fiscal years 1998 
        through 2000''.
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