[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3737 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3737

 To amend the Small Business Act to improve the Microloan Program, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 2009

Mr. Ellsworth 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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Microlending 
Expansion Act of 2009''.

SEC. 2. MICROLOAN CREDIT BUILDING INITIATIVE.

    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 an intermediary making a 
        loan to a borrower under this subsection, under which the 
        intermediary shall provide to the major credit reporting 
        agencies the information about the borrower, both positive and 
        negative, that is relevant to credit reporting, such as the 
        payment activity of the borrower on the loan. Such process 
        shall allow an intermediary the option of providing information 
        to the major credit reporting agencies through the 
        Administration or independently.''.

SEC. 3. FLEXIBLE CREDIT TERMS.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as 
amended by this Act, is further amended--
            (1) in paragraph (1)(B)(i) by striking ``short-term,'';
            (2) in paragraph (6)(A) by striking ``short-term,''; and
            (3) in paragraph (11)(B) by striking ``short-term,''.

SEC. 4. INCREASED PROGRAM PARTICIPATION.

    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 of experience 
                                making microloans to startup, newly 
                                established, or growing small business 
                                concerns; and
                            ``(ii) at least--
                                    ``(I) 1 year of experience 
                                providing, as an integral part of its 
                                microloan program, intensive marketing, 
                                management, and technical assistance to 
                                its borrowers; or
                                    ``(II) 1 full-time employee who has 
                                not less than 1 year of experience 
                                providing intensive marketing, 
                                management, and technical assistance to 
                                borrowers.''.

SEC. 5. INCREASED LIMIT ON INTERMEDIARY BORROWING.

    Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
636(m)(3)(C)) is amended--
            (1) by striking ``$750,000'' and inserting ``$1,000,000'';
            (2) by striking ``$3,500,000'' and inserting 
        ``$7,000,000''; and
            (3) by adding at the end the following: ``The Administrator 
        may treat the amount of $7,000,000 in this subparagraph as if 
        such amount is $10,000,000 if the Administrator determines, 
        with respect to an intermediary, that such treatment is 
        appropriate.''.

SEC. 6. EXPANDED BORROWER EDUCATION ASSISTANCE.

    Section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 
636(m)(4)(E)) is amended--
            (1) in clause (i) by striking ``25 percent'' and inserting 
        ``35 percent''; and
            (2) in clause (ii) by striking ``25 percent'' and inserting 
        ``35 percent''.

SEC. 7. INTEREST RATES AND LOAN SIZE.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as 
amended by this Act, is further amended--
            (1) in paragraph (3)(F)(iii) by striking ``$7,500'' and 
        inserting ``$10,000'';
            (2) in paragraph (6)(C)(i) by striking ``$7,500'' and 
        inserting ``$10,000''; and
            (3) in paragraph (6)(C)(ii) by striking ``$7,500'' and 
        inserting ``$10,000''.

SEC. 8. REPORTING REQUIREMENT.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as 
amended by this Act, is further amended by adding at the end the 
following:
            ``(15) Reporting requirement.--Not later than 90 days after 
        the end of each fiscal year, the Administrator shall submit to 
        the Committee on Small Business of the House of Representatives 
        and the Committee on Small Business and Entrepreneurship of the 
        Senate a report that includes, with respect to such fiscal year 
        of the microloan program, the following:
                    ``(A) The names and locations of each intermediary 
                that received funds to make microloans or provide 
                marketing, management, and technical assistance.
                    ``(B) The amounts of each loan and each grant 
                provided to each such intermediary in such fiscal year 
                and in prior fiscal years.
                    ``(C) A description of the contributions from non-
                Federal sources of each such intermediary.
                    ``(D) The number and amounts of microloans made by 
                each such intermediary to all borrowers and to each of 
                the following:
                            ``(i) Women entrepreneurs and business 
                        owners.
                            ``(ii) Low-income entrepreneurs and 
                        business owners.
                            ``(iii) Veteran entrepreneurs and business 
                        owners.
                            ``(iv) Disabled entrepreneurs and business 
                        owners.
                            ``(v) Minority entrepreneurs and business 
                        owners.
                    ``(E) A description of the marketing, management, 
                and technical assistance provided by each such 
                intermediary to all borrowers and to each of the 
                following:
                            ``(i) Women entrepreneurs and business 
                        owners.
                            ``(ii) Low-income entrepreneurs and 
                        business owners.
                            ``(iii) Veteran entrepreneurs and business 
                        owners.
                            ``(iv) Disabled entrepreneurs and business 
                        owners.
                            ``(v) Minority entrepreneurs and business 
                        owners.
                    ``(F) The number of jobs created and retained as a 
                result of microloans and marketing, management, and 
                technical assistance provided by each such 
                intermediary.
                    ``(G) The repayment history of each such 
                intermediary.
                    ``(H) The number of businesses that achieved 
                success after receipt of a microloan.''.

SEC. 9. SURPLUS INTEREST RATE SUBSIDY FOR BUSINESSES.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as 
amended by this Act, is further amended by adding at the end the 
following:
            ``(16) Interest assistance.--
                    ``(A) In general.--The Administrator is authorized 
                to use amounts determined unlikely to be expended under 
                subparagraph (B) to assist borrowers that receive a 
                microloan under this subsection to reduce the interest 
                paid with respect to such microloan.
                    ``(B) Amounts unlikely to be expended.--Not later 
                than April 1 of each fiscal year, the Administrator 
                shall determine if any amounts made available to carry 
                out this subsection for such fiscal year are unlikely 
                to be expended for activities under this subsection 
                other than activities under this paragraph.''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    Section 20 of the Small Business Act (15 U.S.C. 631 note) is 
amended by inserting after subsection (e) the following:
    ``(f) Fiscal Years 2010 and 2011.--
            ``(1) Program levels.--For the programs authorized by this 
        Act, the Administration is authorized to make during each of 
        fiscal years 2010 and 2011--
                    ``(A) $80,000,000 in technical assistance grants, 
                as provided in section 7(m); and
                    ``(B) $110,000,000 in direct loans, as provided in 
                section 7(m).
            ``(2) Authorization of appropriations.--There is authorized 
        to be appropriated such sums as may be necessary to carry out 
        paragraph (1).''.
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