[Congressional Record Volume 167, Number 64 (Wednesday, April 14, 2021)]
[House]
[Pages H1767-H1769]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         MICROLOAN TRANSPARENCY AND ACCOUNTABILITY ACT OF 2021

  Ms. CRAIG. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 1487) to amend the Small Business Act to increase 
transparency, and for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 1487

       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 2021''.

     SEC. 2. 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, 2022, 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.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from 
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. 
1487, the Microloan Transparency and Accountability Act, which will 
improve SBA's data reporting with respect to the microloan program.
  Specifically, the bill would have SBA and microlenders report on the 
number, amount, and percentage of microloans that went into default in 
the previous year; the extent to which microloans are provided to small 
businesses in rural areas; and the average size, interest rate, and 
amount of fees charged for each microloan.
  These metrics will help Congress and the public better evaluate the 
program and its impact on underserved communities and make improvements 
as needed.
  This program is vital in helping women and minorities obtain much-
needed capital. In fiscal year 2020, 47 percent of microloans were made 
to women-owned small businesses, and more than 51 percent of microloans 
were made to minority-owned small businesses.
  This language was approved unanimously last Congress by both the 
Small Business Committee and the full House, and I look forward to a 
similar vote here today.
  The version of the bill from last Congress also included a provision 
that would increase the amount of technical assistance grant funding a 
rural-serving microlender would receive. I am

[[Page H1768]]

pleased that language was included as part of the Economic Aid Act and 
is now law.
  However, our work on the microloan program is not done. H.R. 1487 
continues the work to keep strengthening the program, and I encourage 
all of my colleagues to support it.
  I applaud the bipartisanship shown by the sponsors of these bills, 
especially the leads, Mr. Burchett and Mr. Kim.
  I urge all of my colleagues to vote ``yes.''
  Madam Speaker, I reserve the balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 1487, the Microloan 
Transparency and Accountability Act of 2021.
  I thank the chair for moving these bills quickly to the House floor. 
I also want to commend the gentleman from Tennessee (Mr. Burchett), the 
gentleman from Wisconsin (Mr. Fitzgerald), the gentleman from New 
Jersey (Mr. Kim), and the gentlewoman from Illinois (Ms. Newman) for 
working diligently and in a bipartisan fashion on behalf of America's 
small businesses.
  It is important to note that once Congress creates a Federal 
Government program, tool, or resource, the work is not done. Members of 
Congress must examine and determine the effectiveness and efficiency of 
the programs in practice to ensure that they are meeting congressional 
intent.
  H.R. 1487 does just this for the microloan program, which delivers 
capital assistance and counseling to our Nation's smallest businesses. 
Oftentimes, businesses that are just starting out and taking their 
first steps as a company are participants in the microloan program.
  On an annual basis, the Small Business Administration will be 
required to report to Congress on the microloan program's default 
rates, an analysis of credit requirements, the extent and reach of the 
program in rural areas, and so on.
  H.R. 1487 will also increase transparency and provide Congress with 
tools to ensure it is working on behalf of small businesses across the 
Nation.
  I urge my colleagues to support this commonsense and straightforward 
legislation, and I reserve the balance of my time.
  Ms. CRAIG. Madam Speaker, I reserve the balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, I yield as much time as he may 
consume to the gentleman from Tennessee (Mr. Burchett), a distinguished 
gentleman who has worked hard on a lot of small business issues.
  Mr. BURCHETT. Madam Speaker, the Microloan Transparency and 
Accountability Act is important bipartisan legislation that gives all 
entrepreneurs fair access to the Small Business Administration's 
microloan program.
  As a former small business owner, I know accessible financial 
resources are important for growth, innovation, and success. Working 
folks have to jump on the first horse that comes down the pike, as my 
dad used to say, or need to dip into personal savings, like I did. 
Wealthy folks have family assets. Inner cities and rural Appalachia 
don't have those same opportunities, Madam Speaker. These are 
hardworking Americans just looking to get their foot in the door and to 
have a fair shot.
  This legislation aims to boost rural small business participation in 
the SBA microloan program by requiring the Small Business 
Administration to submit to Congress a financial analysis of the 
microloan program. This ensures Federal microloans are targeted toward 
rural areas, not just large urban centers, and creates important 
oversight that reduces fraud and government waste.
  These fixes will allow America's entrepreneurs, regardless of 
background or location, to have easier access to capital that helps 
them reach their goals.
  I am proud to partner with Representatives   Andy Kim, Scott 
Fitzgerald, and Marie Newman on this legislation that will make a 
difference for east Tennessee's mom-and-pop shops and small businesses 
across our great country.

  Ms. CRAIG. Madam Speaker, I reserve the balance of my time.
  Mr. LUETKEMEYER. Madam Speaker, I yield as much time as he may 
consume to the gentleman from Wisconsin (Mr. Fitzgerald), a huge 
supporter of small businesses and all their issues.
  Mr. FITZGERALD. Madam Speaker, I rise today in support of H.R. 1487.
  Unlike large businesses with access to debt and equity markets, small 
businesses rely on commercial banking to fund their operations. Should 
a creditworthy small business be unable to obtain a conventional 
business loan, the Small Business Administration can help the small 
business by offering access to capital through the microloan program. 
The microloan program allows nonprofit intermediaries to make loans of 
up to $50,000 to small businesses, along with technical assistance.
  The program has grown from approving $52 million in loans in 2015 to 
over $80 million in 2019. Despite this growth, the SBA produces minimal 
statistics that are needed to evaluate a government guarantee loan 
program.
  This commonsense legislation will require the SBA to produce an 
annual report detailing additional information about microloans that 
have defaulted and the number of loans provided to rural areas.
  We owe it to Americans to conduct basic oversight to protect their 
taxpayer dollars while expanding opportunities for rural small 
businesses to grow and innovate.
  I urge a ``yes'' vote on this bill to ensure small businesses hit 
hard by the pandemic have robust access to capital, regardless of their 
size and location.
  Ms. CRAIG. Madam Speaker, I have no further speakers, and I am 
prepared to close.
  Mr. LUETKEMEYER. Madam Speaker, I yield myself the balance of my 
time.
  The microloan program, which delivers capital assistance to the 
Nation's smallest businesses, is an important lending tool at the SBA. 
H.R. 1487, the Microloan Transparency and Accountability Act of 2021, 
will deliver comprehensive data and information on the effectiveness of 
the program.
  I applaud all of the Members working on this important legislation in 
an effort to shine more light on how well the program is working.
  From my State of Missouri to both of the Nation's coasts, accessing 
capital remains a top challenge facing all small businesses. Tools and 
resources like the microloan program can make a huge difference to 
small business owners in the early stages of their businesses. We must 
ensure these programs and tools are operating at a high level and 
delivering on the goals that Congress set for them. That is why this 
bill is so important.
  I urge my colleagues to support H.R. 1487, and I yield back the 
balance of my time.
  Ms. CRAIG. Madam Speaker, I yield myself the balance of my time.
  It is often said that information is power. H.R. 1487 will greatly 
increase the information publicly available about the microloan 
program's performance and impact.
  If we intend to continue to support the smallest of small businesses, 
we need to make sure the programs targeting them are operating at their 
best. That starts with improving the data and information available 
about where the loans are going, how affordable they are, and where the 
gaps in coverage are.
  With more data, the public can assess the impact these loans have in 
our communities, and Congress will be able to monitor the program and 
identify areas for improvement.
  I thank the gentlemen from Tennessee and New Jersey for their hard 
work and collaboration in bringing this bill to the floor today.
  I urge 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. 1487.
  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.

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