[Congressional Record Volume 147, Number 10 (Thursday, January 25, 2001)]
[Senate]
[Page S571]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Mr. Kerry):
  S. 182. A bill to amend the Small Business Act with respect to the 
microloan program; to the Committee on Small Business.
  Ms. SNOWE. Mr. President, I rise today to reintroduce legislation I 
first offered during the 106th Congress during the Senate Small 
Business Committee's consideration of legislation to reauthorize the 
Small Business Administration.
  This legislation is very simple and straight forward. It is designed 
to enhance the SBA Microloan program, which provides small, short-term 
loans for purchase of machinery and equipment, furniture and fixtures, 
inventory, supplies, and working capital for small businesses. These 
loans are made through SBA-approved nonprofit groups or intermediaries, 
which also provide counseling and educational assistance to firms or 
individuals.
  Under the Microloan program, intermediaries operate both as lenders 
and as technical asistance providers. Through technical assistance, the 
intermediaries help the borrower to develop a business plan, to secure 
financing and to learn how to operate a business. I am very proud of 
the four Microloan intermediaries in my home state of Maine: Coastal 
Enterprises, Northern Maine Development Company, Eastern Maine 
Development Company, and Community Concepts. Mr. President, these 
organizations do great work in my state, and I am pleased to have this 
opportunity to recognize them.
  I have long been a supporter of the Microloan program, and I am proud 
to sponsor this legislation today, which is designed to enhance and 
expand the program. The purpose of the legislation I am introducing 
today is to support efforts to increase the reach of and the number of 
Microlenders by authorizing peer-to-peer mentoring where experienced 
lending intermediaries can share their knowledge and experience with 
other intermediaries or organizations looking to develop a mcirolending 
program.
  Currently, there are no resources to support such activities. Under 
this legislation, industry would develop a network of intermediaries 
with training experience and develop a system to match them with 
intermediaries seeking assistance. Under my bill, the program would 
authorize $1 million annually, and the funding would come out of 
already-authorized funding for Microloan technical assistance.
  I hope this legislation will be a constructive step in the ongoing 
effort to improve the successful Microloan program, and I urge my 
colleagues to join me in supporting this effort.
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