[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10241 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10241
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2024
Ms. Velazquez introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
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.
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 2024''.
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 striking ``fixed rate loans'' and inserting
``fixed-rate loans (including extensions of a short-term, fixed-rate
line of credit)''.
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260; 134 Stat. 2042 15 U.S.C. 636 note) is repealed.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 clause (ii) of subparagraph (C), by striking
``rural'' and all that follows through the end of such
clause and inserting ``rural;'';
(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 complied with the requirements of subparagraph
(A).''.
<all>