[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6291 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6291
To amend the microloan program of the Small Business Adminstration in
response to COVID-19, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 19, 2020
Mr. Kim introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the microloan program of the Small Business Adminstration in
response to COVID-19, 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 Emergency Assistance Act
of 2020''.
SEC. 2. RECOVERY ASSISTANCE FOR MICROBUSINESSES.
(a) Purpose.--The purpose of this section is to allow lenders to
deploy more capital, give borrowers more time to repay, increase rural
lending, and cut technical assistance red tape.
(b) Loans to Intermediaries.--
(1) In general.--Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended--
(A) in paragraph (3)(C)--
(i) by striking ``and $6,000,000'' and
inserting ``$10,000,000, in the aggregate,'';
and
(ii) by inserting before the period at the
end the following: ``, and $4,500,000 in any of
those remaining years'';
(B) in paragraph (4)--
(i) in subparagraph (A), by striking
``subparagraph (C)'' each place that term
appears and inserting ``subparagraphs (C) and
(G)'';
(ii) in subparagraph (C), by amending
clause (i) to read as follows:
``(i) In general.--In addition to grants
made under subparagraph (A) or (G), each
intermediary 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 if--
``(I) the intermediary provides not
less than 25 percent of its loans to
small business concerns located in or
owned by one or more residents of an
economically distressed area; or
``(II) the intermediary has a
portfolio of loans made under this
subsection--
``(aa) that averages not
more than $10,000 during the
period of the intermediary's
participation in the program;
or
``(bb) of which not less
than 25 percent is serving
rural areas during the period
of the intermediary's
participation in the
program.''; and
(iii) by adding at the end the following:
``(G) Grant amounts based on appropriations.--In
any fiscal year in which the amount appropriated to
make grants under subparagraph (A) is sufficient to
provide to each intermediary that receives a loan under
paragraph (1)(B)(i) a grant of not less than 25 percent
of the total outstanding balance of loans made to the
intermediary under this subsection, the Administration
shall make a grant under subparagraph (A) to each
intermediary of not less than 25 percent and not more
than 30 percent of that total outstanding balance for
the intermediary.''; and
(C) by striking paragraph (7) and inserting the
following:
``(7) Program funding for microloans.--Under the program
authorized by this subsection, the Administration may fund, on
a competitive basis, not more than 300 intermediaries.''.
(2) Amendment in 2021.--Effective on October 1, 2021,
section 7(m)(3)(C) of the Small Business Act (15 U.S.C.
636(m)(3)(C)) is amended--
(A) by striking ``$10,000,000'' and by inserting
``$7,000,000''; and
(B) by striking ``$4,500,000'' and inserting
``$3,000,000''.
(c) Temporary Waiver of Technical Assistance Grants Matching
Requirements and Flexibility on Pre- and Post-Loan Assistance.--During
the period beginning on the date of enactment of this Act and ending on
September 30, 2021, the Administration shall waive--
(1) the requirement to contribute non-Federal funds under
section 7(m)(4)(B) of the Small Business Act (15 U.S.C.
636(m)(4)(B)); and
(2) the limitation on amounts allowed to be expended to
provide information and technical assistance under clause (i)
of section 7(m)(4)(E) of the Small Business Act (15 U.S.C.
636(m)(4)(E)) and enter into third-party contracts to provide
technical assistance under clause (ii) of such section
7(m)(4)(E).
(d) Temporary Duration of Loans to Borrowers.--
(1) In general.--During the period beginning on the date of
enactment of this Act and ending on September 30, 2021, the
duration of a loan made by an eligible intermediary under
section 7(m) of the Small Business Act (15 U.S.C. 636(m))--
(A) to an existing borrower may be extended to not
more than 8 years; and
(B) to a new borrower may be not more than 8 years.
(2) Reversion.--On and after October 1, 2021, the duration
of a loan made by an eligible intermediary to a borrower under
section 7(m) of the Small Business Act (15 U.S.C. 636(m)) shall
be 7 years or such other amount established by the
Administrator.
(e) Program Levels.--Section 20 of the Small Business Act (15
U.S.C. 631 note) is amended by adding at the end the following:
``(h) Microloan Program.--For each of fiscal years 2021 through
2025, the Administration is authorized to make--
``(1) $80,000,000 in technical assistance grants, as
provided in section 7(m); and
``(2) $110,000,000 in direct loans, as provided in section
7(m).''.
(f) Authorization of Appropriations.--In addition to amounts
provided under the Consolidated Appropriations Act, 2020 (Public Law
116-93) for the program established under section 7(m) of the Small
Business Act (15 U.S.C. 636(m)), there is authorized to be appropriated
for fiscal year 2020, to remain available until expended--
(1) $50,000,000 to provide technical assistance grants
under such section 7(m); and
(2) $7,000,000 to provide direct loans under such section
7(m).
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