HR 5918 IH
101st CONGRESS
2d Session
 H. R. 5918
To assist in the development of micro-enterprises and micro-enterprise lending.
IN THE HOUSE OF REPRESENTATIVES
October 24, 1990
Mrs. COLLINS introduced the following bill; which was referred jointly to
the Committees on Ways and Means, Banking, Finance and Urban Affairs, Small
Business, and Energy and Commerce
A BILL
To assist in the development of micro-enterprises and micro-enterprise lending.
  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 `Act for Micro-Enterprise'.
SEC. 2. PUBLIC ASSISTANCE PROVISIONS.
  (a) Business Assets Excluded From Resources and Income-
  (1) AFDC- Section 402(a)(8)(A) of the Social Security Act (42
  U.S.C. 602(a)(8)(A)) is amended--
  (A) by striking `and' at the end of clause (vii); and
  (B) by inserting after clause (viii) the following:
  `(ix) shall disregard any asset of (including any amount received as a
  loan by) a child, relative, or other individual specified in clause (ii)
  which is primarily used for business purposes; and'.
  (2) SSI-
  (A) EXCLUSION FROM INCOME- Section 1612(b) of such Act (42 U.S.C. 1382a(b))
  is amended--
  (i) by striking `and' at the end of paragraph (13);
  (ii) in paragraph (14), by striking the period and inserting `; and'; and
  (iii) by adding at the end the following:
  `(15) any asset of (including any amount received as a loan by) such
  individual (or such spouse) which is primarily used for business purposes.'.
  (B) EXCLUSION FROM RESOURCES- Section 1613(a) of such Act (42
  U.S.C. 1382b(a)) is amended--
  (i) by striking `and' at the end of paragraph (7);
  (ii) in paragraph (8), by striking the period and inserting `; and'; and
  (iii) by inserting after paragraph (8) the following:
  `(9) any asset of (including any amount received as a loan by) such
  individual (or such spouse) which is primarily used for business purposes.'.
  (b) Public Assistance Benefits Extended for Persons With Income From or
  Resources in a Micro-Enterprise-
  (1) AFDC AND MEDICAID- Section 402(a) of the Social Security Act (42
  U.S.C. 602(a)) is amended by inserting after paragraph (28) the following:
  `(29) notwithstanding paragraphs (7) and (8), provide that, during the
  1-year period beginning on the first day any member of a family eligible for
  benefits under the State plan sells any good or service as part of operating
  a commercial enterprise with 5 or fewer employees, 1 or more of whom own the
  enterprise, all income of such family member attributable to the enterprise
  and all resources in which such family member has a beneficial interest
  used primarily in the enterprise shall be disregarded in determining the
  amount of aid to which the family is entitled under the State plan;'.
  (2) SSI and medicaid-
  (A) EXCLUSION FROM INCOME- Section 1612(b) of the Social Security Act
  (42 U.S.C. 1382a(b)), as amended by subsection (a)(2)(A) of this section,
  is amended--
  (i) by striking `and' at the end of paragraph (14);
  (ii) in paragraph (15), by striking the period and inserting `; and'; and
  (iii) by adding at the end the following:
  `(16) during the 1-year period beginning on the first day such individual
  (or such spouse) sells any good or service as part of operating a
  commercial enterprise with 5 or fewer employees, 1 or more of whom own the
  enterprise, all income of such individual (or such spouse) attributable
  to the enterprise.'.
  (B) EXCLUSION FROM RESOURCES- Section 1613(a) of the Social Security Act
  (42 U.S.C. 1382b(a)), as amended by subsection (a)(2)(B) of this section,
  is amended--
  (i) by striking `and' at the end of paragraph (8);
  (ii) in paragraph (9), by striking the period and inserting `; and'; and
  (iii) by inserting after paragraph (9) the following:
  `(10) during the 1-year period beginning on the first day such individual
  (or such spouse) sells any good or service as part of operating a commercial
  enterprise with 5 or fewer employees, 1 or more of whom own the enterprise,
  all resources of such individual (or such spouse) that are used primarily
  in the enterprise.'.
SEC. 3. UNEMPLOYMENT COMPENSATION FOR INDIVIDUALS STARTING MICRO-ENTERPRISES.
  (a) STATE LAW REQUIREMENTS- Subsection (a) of section 3304 of the Internal
  Revenue Code of 1986 (relating to State law requirements) is amended by
  striking `and' at the end of paragraph (17), by redesignating paragraph
  (18) as paragraph (19), and by inserting after paragraph (17) the following
  new paragraph:
  `(18) compensation shall be payable to individuals starting micro-enterprises
  as provided in section 3(b) of the Act entitled `An Act to assist in the
  development of micro-enterprises and micro-enterprise lending.'; and'.
  (b) PAYMENT OF COMPENSATION TO INDIVIDUALS STARTING MICRO-ENTERPRISES-
  (1) IN GENERAL- For purposes of section 3304(a)(18) of the Internal Revenue
  Code of 1986, a State law shall provide that--
  (A) each individual who is an eligible individual with respect to any
  benefit year shall be entitled to receive regular or extended unemployment
  compensation, as the case may be, without regard to any State or Federal
  requirements relating to availability for work, active search for work,
  or refusal to accept suitable work, and
  (B) such individual shall be considered to be unemployed for purposes
  of the State and Federal laws applicable to unemployment compensation,
  as long as the individual performs services in the micro-enterprise.
  (2) DEFINITIONS- For purposes of this section--
  (A) ELIGIBLE INDIVIDUAL- The term `eligible individual' means, with respect
  to any benefit year, an individual who--
  (i) is eligible to receive regular or extended compensation under the
  State law during such benefit year,
  (ii) is starting a micro-enterprise, and
  (iii) submits an application to the State agency for compensation under
  this subsection.
  (B) MICRO-ENTERPRISE- The term `micro-enterprise' means any unincorporated
  trade or business with 5 or fewer employees, 1 or more of whom own the
  enterprise.
  (C) OTHER TERMS- The terms `compensation', `extended compensation',
  `regular compensation', `benefit year', `State', and `State law' have
  the respective meanings given to such terms under section 205 of the
  Federal-State Extended Unemployment Compensation of 1970.
SEC. 4. ELIGIBILITY OF ASSISTANCE FOR MICRO-ENTERPRISES UNDER COMMUNITY
DEVELOPMENT BLOCK GRANTS AND URBAN DEVELOPMENT ACTION GRANTS.
  (a) IN GENERAL- Section 105(a) of the Housing and Community Development
  Act of 1974 (42  U.S.C. 5305(a)) is amended--
  (1) in paragraph (18), by striking `and' at the end;
  (2) in paragraph (19), by striking the period at the end and inserting `;
  and'; and
  (3) by adding at the end the following:
  `(20) provision of assistance--
  `(A) to lending institutions and other organizations and agencies, in the
  form of amounts to be made available for loans to commercial enterprises
  with 5 or fewer employees, 1 or more of whom own the enterprise, such loans
  to be in amounts not less than $50 and not more than $5,000, the interest
  rate on which shall be comparable to the interest rate charged on secured
  commercial loans made in the county in which such enterprise is located; and
  `(B) public and private organizations and agencies for providing counseling,
  technical assistance, educational programs, planning, and training to
  facilitate the development, establishment, and operation of commercial
  enterprises described in subparagraph (A).'.
  (b) APPLICABILITY- The amendment made by this section shall apply to any
  amounts made available pursuant to sections 103 and 119 of the Housing and
  Community Development Act of 1974 (42  U.S.C. 5303 and 5318) for fiscal
  year 1990 and any succeeding fiscal year.
SEC. 5. BUSINESS LOANS TO MICRO-ENTERPRISES.
  Section 2 of the Small Business Act (15  U.S.C. 631) is amended by adding
  after subsection (h) the following:
  `(i) The Congress finds that in implementing business loan programs under
  section 7(a) of the Small Business Act and title V of the Small Business
  Investment Act of 1958, the Administrator should give due consideration
  to the needs of micro-enterprises and institutions which offer credit or
  services to micro-enterprises. For the purposes of this subsection, the term
  `micro-enterprises' means commercial enterprises with 5 or fewer employees,
  1 or more of whom owns the enterprise.'.
SEC. 6. TREATMENT OF MICRO-ENTERPRISE LOANS OF SAVINGS ASSOCIATIONS AS
QUALIFIED THRIFT INVESTMENTS.
  (a) IN GENERAL- Section 10(m)(4)(B)(i) of the Home Owners' Loan Act (12
  U.S.C. 1467a(m)(4)(B)(i)) is amended by inserting `, or to micro-enterprise
  loans' before the semicolon.
  (b) MICRO-ENTERPRISE LOAN DEFINED- Section 10(m)(4) of such Act (12
  U.S.C. 1467a(m)(4)) is amended by adding at the end the following:
  `(C) MICRO-ENTERPRISE LOAN- The term `micro-enterprise loan' means a loan--
  `(i) to a commercial enterprise with 5 or fewer employees, 1 or more of
  whom own the enterprise;
  `(ii) in amounts not less than $50 and not more than $5,000; and
  `(iii) the interest rate on which is comparable to the interest rate charged
  on secured commercial loans made in the county in which such enterprise
  is located.'.
SEC. 7. ESTABLISHMENT OF MICRO-ENTERPRISE DIVISION IN EACH FEDERAL BANKING
AGENCY.
  (a) IN GENERAL- Each Federal banking agency shall establish a division
  to be known as the `Micro-Enterprise Technical and Operations Office'
  to promote micro-enterprises by offering technical assistance, training,
  outreach, and other support to groups and individuals engaged in, or
  desiring to establish, a micro-enterprise or an institution which offers
  credit or services to micro-enterprises.
  (b) DUTIES OF MICRO-ENTERPRISE DIVISION- The Micro-Enterprise Technical
  and Operations Office of each Federal banking agency shall--
  (1) facilitate the creation and financing of micro-enterprises by
  collecting information relating to micro-enterprises and providing such
  information without charge to interested persons, and generally serving
  as a clearinghouse for information relating to micro-enterprises; and
  (2) monitor and provide assistance to the micro-enterprise divisions
  established pursuant to section 34 of the Federal Deposit Insurance Act.
  (c) MICRO-ENTERPRISE DEFINED- As used in this section, the term
  `micro-enterprise' means any commercial enterprise with 5 or fewer employees,
  1 or more of whom own the enterprise.