[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2850 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 2850

 To amend the Small Business Act to provide for expanded participation 
           in the microloan program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 26, 2016

Mrs. Fischer (for herself, Ms. Ayotte, Mr. Peters, Mr. Coons, and Mrs. 
   Shaheen) introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
 To amend the Small Business Act to provide for expanded participation 
           in 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 ``Microloan Program Modernization Act 
of 2016''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``intermediary'' has the meaning given the 
        term in section 7(m)(11) of the Small Business Act (15 U.S.C. 
        636(m)(11)); and
            (2) the term ``microloan program'' means the program 
        established under section 7(m) of the Small Business Act (15 
        U.S.C. 636(m)).

SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT INCREASED.

    Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
636(m)(3)(C)) is amended by striking ``$5,000,000'' and inserting 
``$6,000,000''.

SEC. 4. ELIMINATION OF 25/75 RULE.

    Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)) is 
amended--
            (1) by striking subparagraph (E); and
            (2) by redesignating subparagraph (F) as subparagraph (E).

SEC. 5. SBA STUDY OF MICROENTERPRISE PARTICIPATION.

    Not later than 1 year after the date of enactment of this Act, the 
Administrator of the Small Business Administration shall conduct a 
study and submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives a report on--
            (1) the operations (including services provided, structure, 
        size, and area of operation) of a representative sample of--
                    (A) intermediaries that are eligible to participate 
                in the microloan program and that do participate; and
                    (B) intermediaries (including those operated for 
                profit, operated as non-profits, and those affiliated 
                with a United States institution of higher learning) 
                that are eligible to participate in the microloan 
                program and that do not participate;
            (2) the reasons why intermediaries described in paragraph 
        (1)(B) choose not to participate in the microloan program;
            (3) recommendations on how to encourage increased 
        participation in the microloan program by intermediaries 
        described in paragraph (1)(B); and
            (4) recommendations on how to decrease the costs associated 
        with participation in the microloan program for eligible 
        intermediaries.

SEC. 6. GAO STUDY ON MICROLOAN INTERMEDIARY PRACTICES.

    Not later than 1 year after the date of enactment of this Act, the 
Comptroller General of the United States shall submit to the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives a report evaluating--
            (1) oversight of the microloan program by the Small 
        Business Administration, including oversight of intermediaries 
        participating in the microloan program; and
            (2) the specific processes used by the Small Business 
        Administration to ensure--
                    (A) compliance by intermediaries participating in 
                the microloan program; and
                    (B) the overall performance of the microloan 
                program.
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