I 111th CONGRESS 1st Session H. R. 1756 IN THE HOUSE OF REPRESENTATIVES March 26, 2009 Mr. Heller introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to improve the Microloan program, and for other purposes.

1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Small Business Microloan Modernization Act of 2009. (b)

Table of contents

The table of contents for this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Transmission of credit reporting information. Sec. 3. Flexible credit. Sec. 4. Intermediary eligibility requirements. Sec. 5. Average loan size. Sec. 6. Technical assistance. Sec. 7. Entrepreneurs with disabilities.

2.

Transmission of credit reporting information

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended by adding at the end the following: (14)

Credit reporting information

The Administrator shall establish a process, for use by a lender making a loan to a borrower under this subsection, under which the lender provides to the major credit reporting agencies the information about the borrower that is relevant to credit reporting, such as the payment activity of the borrower on the loan. .

3.

Flexible credit

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as amended, is further amended, in each of paragraphs (1)(B)(i), (6)(A), and (11)(B), by striking short-term,.

4.

Intermediary eligibility requirements

Section 7(m)(2) of the Small Business Act (15 U.S.C. 636(m)(2)) is amended— (1)in subparagraph (A) by striking paragraph (10) and inserting paragraph (11); and (2)by amending subparagraph (B) to read as follows: (B)has— (i)at least— (I)1 year of experience making microloans to startup, newly established, or growing small business concerns; or (II)1 full-time employee who has not less than 3 years experience making microloans to startup, newly established, or growing small business concerns; and (ii)at least 1 year of experience providing, as an integral part of its microloan program, intensive marketing, management, and technical assistance to its borrowers. .

5.

Average loan size

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as amended, is further amended, in each of paragraphs (3)(F)(iii), (6)(C)(i), and (6)(C)(ii), by striking $7,500 and inserting $10,000.

6.

Technical assistance

Section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) is amended, in each of clauses (i) and (ii), by striking 25 percent and inserting 35 percent.

7.

Entrepreneurs with disabilities

Section 7(m)(1)(A)(i) of the Small Business Act (15 U.S.C. 636(m)(1)(A)(i)) is amended by inserting disabled, before and minority entrepreneurs.