[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6078 Engrossed in House (EH)]

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116th CONGRESS
  2d Session
                                H. R. 6078

_______________________________________________________________________

                                 AN ACT


 
To amend the Small Business Act to increase transparency and to enhance 
     the use of microloans in rural areas, 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 Transparency and 
Accountability Act of 2020''.

SEC. 2. ASSISTANCE FOR INTERMEDIARIES SERVING RURAL AREAS.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
amended--
            (1) by amending paragraph (4)(C)(i) to read as follows:
                            ``(i) Each intermediate shall be eligible 
                        to receive a grant equal to 5 percent of the 
                        total outstanding balance of loans made to the 
                        intermediary under this subsection, in addition 
                        to grants made under subparagraph (A), if the 
                        intermediary has either--
                                    ``(I) a portfolio of loans made 
                                under this subsection that averages not 
                                more than $10,000 during the period of 
                                the intermediary's participation in the 
                                program;
                                    ``(II) a portfolio of loans made 
                                under this subsection of which not less 
                                than 25 percent are made to small 
                                business concerns located in or owned 
                                by one or more residents of an 
                                economically distressed area; or
                                    ``(III) a portfolio of loans made 
                                under this subsection of which not less 
                                than 25 percent is serving rural areas 
                                during the period of the intermediary's 
                                participation in the program.''; and
            (2) in paragraph (11)--
                    (A) in subparagraph (C)(ii), by striking all after 
                the semicolon and inserting ``and''; and
                    (B) by striking all after subparagraph (C), and 
                inserting the following:
                    ``(D) the term `economically distressed area', as 
                used in paragraph (4), means a county or equivalent 
                division of local government of a State in which the 
                small business concern is located, in which, according 
                to the most recent data available from the Bureau of 
                the Census, Department of Commerce, not less than 40 
                percent of residents have an annual income that is at 
                or below the poverty level.''.

SEC. 3. PORTFOLIO RISK ANALYSIS OF MICROLOANS.

    Section 7(m)(10) of the Small Business Act (15 U.S.C. 636(m)(10)) 
is amended--
            (1) by redesignating subparagraphs (A) through (F) as 
        clauses (i) through (vi), respectively, and adjusting the 
        margins accordingly;
            (2) by amending clause (iv), as so redesignated, to read as 
        follows:
                            ``(vi) the number, amount, and percentage 
                        of microloans made by intermediaries to small 
                        business concerns--
                                    ``(I) that went into default in the 
                                previous year; and
                                    ``(II) that were charged off in the 
                                previous year by such 
                                intermediaries;'';
            (3) in clause (vi), as so redesignated, by striking ``and'' 
        at the end;
            (4) by redesignating subparagraph (G) as clause (xviii), 
        and adjusting the margin accordingly;
            (5) by striking ``On November 1, 1995,'' and all that 
        follows through ``the following:'' and inserting the following:
                    ``(A) In general.--Beginning on February 1, 2021, 
                and annually thereafter, the Administrator shall submit 
                to the Committee on Small Business and Entrepreneurship 
                of the Senate and the Committee on Small Business of 
                the House of Representatives, and make available to the 
                public on the website of the Administration, a report 
                on the effectiveness of the microloan program during 
                the fiscal year preceding the date of the report. Such 
                report shall include--'';
            (6) in subparagraph (A), as so designated, by inserting 
        after clause (vi) the following new clauses:
                            ``(vii) the number and type of enforcement 
                        actions taken by the Administrator against 
                        noncompliant intermediaries;
                            ``(viii) an analysis of compliance by 
                        intermediaries with the credit availability 
                        requirements of paragraph (3)(E) for loans in 
                        an amount greater than $20,000;
                            ``(ix) the extent to which microloans are 
                        provided to small business concerns in rural 
                        areas;
                            ``(x) the number of underserved borrowers, 
                        as defined by the Administration, participating 
                        in the microloan program;
                            ``(xi) the average rate of interest for 
                        each microloan;
                            ``(xii) the average amount of fees charged 
                        for each microloan;
                            ``(xiii) the average size of each 
                        microloan, including--
                                    ``(I) the number of loans made in 
                                an amount greater than $20,000; and
                                    ``(II) the average size and charge-
                                off rate of such loans;
                            ``(xiv) the subsidy cost to the 
                        Administration;
                            ``(xv) the number and percentage of 
                        microloans that were made to refinance other 
                        loans;
                            ``(xvi) the number and percentage of 
                        microloans made to new program participants and 
                        the number and percentage of microloans made to 
                        previous program participants;
                            ``(xvii) the average amount of technical 
                        assistance grant monies spent on each loan; 
                        and''; and
            (7) by adding at the end the following:
                    ``(B) Privacy.--Each report submitted under 
                subparagraph (A) shall not contain any personally 
                identifiable information of any borrower.''.

            Passed the House of Representatives September 14, 2020.

            Attest:

                                                                 Clerk.
116th CONGRESS

  2d Session

                               H. R. 6078

_______________________________________________________________________

                                 AN ACT

To amend the Small Business Act to increase transparency and to enhance 
     the use of microloans in rural areas, and for other purposes.