Short title

This Act may be cited as the

Small Business Microlending Expansion Act of 2009

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.

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,.

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.

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..

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.

Young Entrepreneurs program

Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is amended by adding at the end the following:

(G)

Young Entrepreneurs program

(i)

In general

An intermediary that receives a grant under paragraph (1)(B)(ii) may establish a program for the geographic area served by such intermediary that provides to young entrepreneurs technical assistance regarding the following: (I)Establishing or operating a small business concern in the geographic area served by the intermediary. (II)Acquiring or securing financing to carry out the activities described in subclause (I). (ii)

Young entrepreneur defined

For purposes of this subparagraph, a young entrepreneur is an individual who— (I)is 25 years of age or younger; and (II)has resided in the geographic area served by the intermediary for not less than 2 years. (iii)

Good faith effort requirement

If a young entrepreneur who receives technical assistance under this subparagraph from an intermediary establishes or operates a small business concern, the young entrepreneur shall make a good faith effort to establish or operate such concern in the geographic area served by the intermediary. (iv)

Deferred repayment

If a small business concern established or operated by a young entrepreneur receives a loan under this subsection, such concern may defer repayment on such loan for a period of not more than 6 months beginning on the date that such concern receives the final disbursement of such loan.

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.

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.

10.

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

The Administrator is authorized to make grants to intermediaries for the purposes of reducing interest rates charged to borrowers that receive financing under this subsection.

11.

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 with respect to section 7(m)

(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); (B)$110,000,000 in direct loans, as provided in section 7(m); and (C)$10,000,000 in interest assistance grants, as provided in section 7(m)(16). (2)

Authorization of appropriations

There is authorized to be appropriated such sums as may be necessary to carry out paragraph (1).

12.

Regulations

Except as otherwise provided in this Act or in amendments made by this Act, after an opportunity for notice and comment, but not later than 180 days after the date of the enactment of this Act, the Administrator shall issue regulations to carry out this Act and the amendments made by this Act.