[Congressional Record Volume 167, Number 64 (Wednesday, April 14, 2021)]
[House]
[Pages H1765-H1767]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   MICROLOAN IMPROVEMENT ACT OF 2021

  Ms. CRAIG. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 1502) to amend the Small Business Act to optimize the 
operations of the microloan program, lower costs for small business 
concerns and intermediary participants in the program, and for other 
purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1502

       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 Improvement Act of 
     2021''.

     SEC. 2. INTEREST RATE FOR CERTAIN INTERMEDIARIES.

       Section 7(m)(3)(F)(iii) of the Small Business Act (15 
     U.S.C. 636(m)(3)(F)(iii)) is amended by striking ``$7,500'' 
     and inserting ``$10,000''.

     SEC. 3. LINES OF CREDIT AUTHORIZED.

        Section 7(m)(6)(A) of the Small Business Act (15 U.S.C. 
     636(m)(6)(A)) is amended by inserting ``(including lines of 
     credit)'' after ``fixed rate loans''.

     SEC. 4. EXTENDED REPAYMENT TERMS.

       (a) In General.--Section 7(m)(6) of the Small Business Act 
     (15 U.S.C. 636(m)(6)) is amended by adding at the end the 
     following:
       ``(F) Repayment terms.--
       ``(i) Limitation on repayments term.--The repayment term 
     for a loan made under this paragraph shall not be more than--

       ``(I) in the case of a loan made by an intermediary of 
     $10,000 or less, 7 years; and
       ``(II) in the case of a loan made by an intermediary of 
     greater than $10,000, 10 years.

       ``(ii) No additional limitations.--The Administrator may 
     not impose any additional limitation on the term for 
     repayment of a loan made by an intermediary under this 
     paragraph.''.
       (b) Technical Amendment.--Section 329(c) of the Economic 
     Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act 
     (Public Law 116-260; 134 Stat. 2042 15 U.S.C. 636 note) is 
     repealed.

     SEC. 5. PROGRAM FUNDING FOR MICROLOANS.

       (a) In General.--Section 7(m) of the Small Business Act (15 
     U.S.C. 636(m)) is amended--
       (1) in paragraph (7)(B)--
       (A) by amending clause (i) to read as follows:
       ``(i) Allocation.--Subject to the availability of 
     appropriations and for the first 2 quarters of a fiscal year, 
     of the total amount of new loan funds made available for 
     award under this subsection in such fiscal year, the 
     Administrator shall--

       ``(I) reserve 15 percent of such funds for award to 
     designated underutilized States; and
       ``(II) make the remaining 85 percent of such funds 
     available for award in any State.''; and

       (B) in clause (ii), by striking ``to carry out'' and all 
     that follows through the period at the end and inserting the 
     following: ``under clause (i)(I) remains unexpended, the 
     Administrator may make that portion available for award in 
     any State or designated underutilized State.''; and
       (2) in paragraph (11)--
       (A) in subparagraph (C)(ii), by striking ``and'' at the 
     end;
       (B) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following new subparagraph:
       ``(E) the term `State' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the United States Virgin Islands, Guam, the Northern Mariana 
     Islands, and American Samoa.''.
       (b) Rulemaking.--Not later than 180 days after the date of 
     the enactment of this Act, the Administrator of the Small 
     Business Administration shall issue regulations to define the 
     term ``designated underutilized State'', as used in section 
     7(m)(7)(B) of the Small Business Act (15 U.S.C. 
     636(m)(7)(B)), as added by this section.

     SEC. 6. CREDIT REPORTING INFORMATION.

       The Administrator of the Small Business Administration 
     shall issue rules establishing a process under which an 
     intermediary that makes a loan to a borrower under section 
     7(m) of the Small Business Act (15 U.S.C. 636(m)) shall be 
     required to provide the major credit reporting agencies with 
     information about the borrower relevant to credit reporting, 
     such as the borrower's payment activity on the loan.

     SEC. 7. REPORT REGARDING EQUITABLE DISTRIBUTION.

       Section 7(m)(8) of the Small Business Act (15 U.S.C. 
     636(m)(8)) is amended--
       (1) by striking ``In approving'' and inserting the 
     following:
       ``(A) In general.--In approving''; and
       (2) by adding at the end the following:
       ``(B) Annual report.--The Administrator shall include in 
     the report submitted under paragraph (10), and make publicly 
     available on the website of the Administration, information 
     on how the Administration has met the requirements of 
     subparagraph (A).''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from

[[Page H1766]]

Minnesota (Ms. Craig) and the gentleman from Missouri (Mr. Luetkemeyer) 
each will control 20 minutes.
  The Chair recognizes the gentlewoman from Minnesota.


                             General Leave

  Ms. CRAIG. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
and include extraneous material on the measure under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Minnesota?
  There was no objection.
  Ms. CRAIG. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise in support of the bill before us today, H.R. 
1502, the Microloan Improvement Act of 2021.
  Today, we are considering four bipartisan bills that were approved by 
the Small Business Committee and the full House of Representatives last 
year. I am proud of the committee's work on behalf of small businesses 
and pleased that we worked together to get things done. Our small 
businesses deserve nothing less.
  I would like to thank the chairwoman, Ms. Velazquez, for giving me 
the opportunity to manage time today on these four important small 
business bills.
  I would also like to thank the ranking member, Mr. Luetkemeyer, who 
will be handling the floor proceedings today with me.
  Prior to the COVID-19 pandemic, the Subcommittee on Economic Growth, 
Tax, and Capital Access, under the leadership of Mr. Kim, held a 
hearing on the microloan program, where we heard from a panel of 
intermediaries who reported that many of the program's rules, largely 
unchanged since 1991, are outdated and restrict them from meeting 
today's demand for start-up financing and providing more technical 
assistance.
  In response, Mr. Kim crafted the Microloan Improvement Act of 2020, a 
series of proposals designed to update the program's rules and, 
ultimately, help microloan intermediaries extend more affordable 
capital to first-time entrepreneurs.
  I was proud to support the Microloan Improvement Act last Congress 
and was pleased to see some of its provisions become law as part of the 
Economic Aid Act last December.
  Today's bill, the Microloan Improvement Act of 2021, is virtually the 
same as last Congress' version without the policies we have already 
enacted into law.
  Madam Speaker, we have heard time and again many entrepreneurs lack 
the experience needed to demonstrate their creditworthiness to 
conventional lenders. The COVID-19 pandemic has highlighted these gaps 
in financing, showing the smallest of small businesses, especially 
those owned by women and minorities, struggle the most to afford access 
to capital.
  The microloan program is uniquely suited to address this problem, and 
today's bill strengthens the program and is long overdue.
  I encourage my colleagues to support the bill.
  Madam Speaker, I reserve the balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, I yield myself such time as I may 
consume, and I rise in support of H.R. 1502, the Microloan Improvement 
Act of 2021.
  Before I begin, I would like to thank the chairwoman for working in a 
bipartisan manner on behalf of our Nation's small businesses.
  The bills before us today were developed in the 116th Congress and 
have been updated and reintroduced in this Congress. They focus on the 
Small Business Administration's existing government guaranteed loan 
programs. These programs are important resources and tools for the 
Nation's smallest businesses as they seek out financing.
  Now, more than ever, these programs need to be ready for small 
businesses as they begin and continue to recover from the COVID-19 
pandemic. As ranking member of the Committee on Small Business, I want 
to make sure we focus, or continue to focus on these programs that 
assist the Nation's small businesses, entrepreneurs, and start-ups.
  The first bill is the Microloan Improvement Act. This legislation 
enhances and expands SBA's microloan program which provides loans of 
$50,000 or less. This program, which is delivered to small businesses 
through a partnership with microloan intermediaries, concentrates on 
low-dollar loans and technical assistance.
  When a small business is starting out, counseling and capital 
assistance are true drivers of continued and prolonged success. H.R. 
1502 further enhances the program for micro-borrowers by expanding the 
repayment terms of the program and providing additional tools in their 
toolbox.
  Additionally, the bill removes the burdensome 1/55th rule that delays 
dollars from flowing to microloan intermediaries within the first two 
fiscal quarters of the year and replaces it with an allocation 
mechanism that will provide more equitable access to all States across 
the Nation.
  I would like to thank Mr. Kim, Mr. Garbarino, Ms. Newman, and Mr. 
Burchett for concentrating their efforts on this legislation.
  Madam Speaker, I urge my colleagues to support H.R. 1502, and I 
reserve the balance of my time.
  Ms. CRAIG. Madam Speaker, I yield such time as she may consume to the 
gentlewoman from Illinois (Ms. Newman).
  Ms. NEWMAN. Madam Speaker, I rise today, excitedly, on behalf of the 
millions of small businesses across our Nation that are truly suffering 
from the pandemic and struggling to keep their doors open because 
support is simply not reaching them.
  As a former small business owner, I know firsthand how loans can make 
an absolutely life-changing difference for an entrepreneur.
  However, the reality is that too many small businesses, especially 
those led by women, or minorities, or those in rural communities, don't 
have access to the primary lending programs offered by the Small 
Business Administration or private sector.

  Microloans are designed to help start-ups and new small businesses 
that don't have banking relationships with access to larger capital. 
But for too many businesses, these microloans have been unreachable.
  That is why I am proud to co-lead the Microloan Improvement Act to 
ensure that, regardless of background or location, every business has 
equitable access to capital.
  With this legislation, we are expanding the number of community-based 
lenders eligible for the lowest interest rates on loans. That means 
these lenders can offer lines of credit to more small businesses.
  Now more than ever, we have an obligation to remove barriers that 
prevent small businesses from receiving microloans. With this 
legislation, we are cutting bureaucratic red tape that has restricted 
growth and job creation.
  From mom-and-pop shops, to family-owned stores, to every small 
business, they will all benefit. That is why this legislation is 
supported by Democrats and Republicans, and I am so glad to partner 
today with my Republican colleagues. I am happy to work in a bipartisan 
fashion to help our intermediaries provide assistance to our local 
entrepreneurs.
  Let's pass this legislation so we can support the smallest of the 
small businesses in all of our communities.
  Mr. LUETKEMEYER. Madam Speaker, I yield such time as he may consume 
to the gentleman from Tennessee (Mr. Burchett), who has been a leader 
in small business issues.
  Mr. BURCHETT. Madam Speaker, I thank the ranking member for yielding.
  I rise in support of Representative Kim's Microloan Improvement Act. 
I am proud to be an original cosponsor of this important legislation.
  Access to financial capital is essential to the success of America's 
small businesses and their entrepreneurs. This bipartisan bill is 
straightforward and effective. It increases the number of nonprofit 
community-based lenders that can offer loans through the SBA's 
microloan program.
  Representative Kim's bill works in tandem with the Microloan 
Transparency and Accountability Act, my small business legislation that 
we will debate shortly, to expand access to financial resources that 
will help our aspiring small business owners and entrepreneurs chase 
down the American Dream.

[[Page H1767]]

  I encourage my colleagues to support this important bipartisan 
legislation.
  Ms. CRAIG. Madam Speaker, I have no further speakers and I am 
prepared to close. I reserve the balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, I yield myself the balance of my 
time.
  Madam Speaker, 2020 was a difficult year for small businesses. The 
COVID-19 pandemic hit small businesses hard. This is especially true 
for small businesses that were just starting out.
  As our country continues to recover, the SBA's programs and resources 
must be ready to assist the Nation's job creators along the way.
  The microloan program is a key tool for many small business owners. 
The reforms in H.R. 1502 are commonsense improvements that will 
continue to provide assistance and resources to America's Main Street 
businesses.
  Madam Speaker, I urge and recommend my colleagues to support H.R. 
1502, and I yield back the balance of my time.

                              {time}  1430

  Ms. CRAIG. Madam Speaker, I yield myself the balance of my time.
  As the small business economy starts to recover from the COVID-19 
pandemic, entrepreneurs will need as many affordable capital options as 
possible. That is why the Economic Aid Act included PPP updates, grants 
for hard-hit venues, and other enhancements to SBA's business loan 
programs, including the microloan program.
  Today's bill takes the next step after that relief effort toward 
fully modernizing and optimizing SBA's microloan program. For nearly 30 
years, this program has had a strong track record of success and has 
helped to launch many successful small businesses, especially those 
owned by women and minority entrepreneurs. The record is full of 
success stories as the program has grown from a simple pilot program to 
a vital lending tool with strong stakeholder and congressional support.
  The legislation before us today renews our commitment to startups by 
easing access to the program for even more aspiring entrepreneurs and 
making the program nimbler for intermediaries and borrowers alike.
  Passing this bill will be another step to help lead our Nation out of 
this pandemic and build back the economy by embracing America's 
entrepreneurial spirit.
  I applaud the work by Mr. Kim and Mr. Garbarino for their bipartisan 
work on the microloan program. I encourage all of my colleagues to vote 
``yes,'' and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentlewoman from Minnesota (Ms. Craig) that the House suspend the rules 
and pass the bill, H.R. 1502.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. WEBER of Texas. Madam Speaker, on that I demand the yeas and 
nays.
  The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution 
8, the yeas and nays are ordered.
  Pursuant to clause 8 of rule XX, further proceedings on this motion 
are postponed.

                          ____________________