Text: H.R.3737 — 111th Congress (2009-2010)All Information (Except Text)

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Referred in Senate (11/09/2009)


111th CONGRESS
1st Session
H. R. 3737


IN THE SENATE OF THE UNITED STATES

November 9, 2009

Received; read twice and referred to the Committee on Small Business and Entrepreneurship


AN ACT

To amend the Small Business Act to improve the Microloan 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 “Small Business Microlending Expansion Act of 2009”.

SEC. 2. Microloan credit building initiative.

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended by adding at the end the following:

“(14) CREDIT REPORTING INFORMATION.—The Administrator shall establish a process, for use by an intermediary making a loan to a borrower under this subsection, under which the intermediary shall provide to the major credit reporting agencies the information about the borrower, both positive and negative, that is relevant to credit reporting, such as the payment activity of the borrower on the loan. Such process shall allow an intermediary the option of providing information to the major credit reporting agencies through the Administration or independently.”.

SEC. 3. Flexible credit terms.

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as amended by this Act, is further amended—

(1) in paragraph (1)(B)(i) by striking “short-term,”;

(2) in paragraph (6)(A) by striking “short-term,”; and

(3) in paragraph (11)(B) by striking “short-term,”.

SEC. 4. Increased program participation.

Section 7(m)(2) of the Small Business Act (15 U.S.C. 636(m)(2)) is amended—

(1) in subparagraph (A) by striking “paragraph (10)” and inserting “paragraph (11)”; and

(2) by amending subparagraph (B) to read as follows:

    “(B) has—

    “(i) at least—

    “(I) 1 year of experience making microloans to startup, newly established, or growing small business concerns; or

    “(II) 1 full-time employee who has not less than 3 years of experience making microloans to startup, newly established, or growing small business concerns; and

    “(ii) at least—

    “(I) 1 year of experience providing, as an integral part of its microloan program, intensive marketing, management, and technical assistance to its borrowers; or

    “(II) 1 full-time employee who has not less than 1 year of experience providing intensive marketing, management, and technical assistance to borrowers.”.

SEC. 5. Increased limit on intermediary borrowing.

Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended—

(1) by striking “$750,000” and inserting “$1,000,000”;

(2) by striking “$3,500,000” and inserting “$7,000,000”; and

(3) by adding at the end the following: “The Administrator may treat the amount of $7,000,000 in this subparagraph as if such amount is $10,000,000 if the Administrator determines, with respect to an intermediary, that such treatment is appropriate.”.

SEC. 6. Expanded borrower education assistance.

Section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) is amended—

(1) in clause (i) by striking “25 percent” and inserting “35 percent”; and

(2) in clause (ii) by striking “25 percent” and inserting “35 percent”.

SEC. 7. Young Entrepreneurs program.

Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is amended by adding at the end the following:

“(G) YOUNG ENTREPRENEURS PROGRAM.—

“(i) IN GENERAL.—An intermediary that receives a grant under paragraph (1)(B)(ii) may establish a program for the geographic area served by such intermediary that provides to young entrepreneurs technical assistance regarding the following:

“(I) Establishing or operating a small business concern in the geographic area served by the intermediary.

“(II) Acquiring or securing financing to carry out the activities described in subclause (I).

“(ii) YOUNG ENTREPRENEUR DEFINED.—For purposes of this subparagraph, a young entrepreneur is an individual who—

“(I) is 25 years of age or younger; and

“(II) has resided in the geographic area served by the intermediary for not less than 2 years.

“(iii) GOOD FAITH EFFORT REQUIREMENT.—If a young entrepreneur who receives technical assistance under this subparagraph from an intermediary establishes or operates a small business concern, the young entrepreneur shall make a good faith effort to establish or operate such concern in the geographic area served by the intermediary.

“(iv) DEFERRED REPAYMENT.—If a small business concern established or operated by a young entrepreneur receives a loan under this subsection, such concern may defer repayment on such loan for a period of not more than 6 months beginning on the date that such concern receives the final disbursement of such loan.”.

SEC. 8. Interest rates and loan size.

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as amended by this Act, is further amended—

(1) in paragraph (3)(F)(iii) by striking “$7,500” and inserting “$10,000”;

(2) in paragraph (6)(C)(i) by striking “$7,500” and inserting “$10,000”; and

(3) in paragraph (6)(C)(ii) by striking “$7,500” and inserting “$10,000”.

SEC. 9. Reporting requirement.

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as amended by this Act, is further amended by adding at the end the following:

“(15) REPORTING REQUIREMENT.—Not later than 90 days after the end of each fiscal year, the Administrator shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report that includes, with respect to such fiscal year of the microloan program, the following:

“(A) The names and locations of each intermediary that received funds to make microloans or provide marketing, management, and technical assistance.

“(B) The amounts of each loan and each grant provided to each such intermediary in such fiscal year and in prior fiscal years.

“(C) A description of the contributions from non-Federal sources of each such intermediary.

“(D) The number and amounts of microloans made by each such intermediary to all borrowers and to each of the following:

“(i) Women entrepreneurs and business owners.

“(ii) Low-income entrepreneurs and business owners.

“(iii) Veteran entrepreneurs and business owners.

“(iv) Disabled entrepreneurs and business owners.

“(v) Minority entrepreneurs and business owners.

“(E) A description of the marketing, management, and technical assistance provided by each such intermediary to all borrowers and to each of the following:

“(i) Women entrepreneurs and business owners.

“(ii) Low-income entrepreneurs and business owners.

“(iii) Veteran entrepreneurs and business owners.

“(iv) Disabled entrepreneurs and business owners.

“(v) Minority entrepreneurs and business owners.

“(F) The number of jobs created and retained as a result of microloans and marketing, management, and technical assistance provided by each such intermediary.

“(G) The repayment history of each such intermediary.

“(H) The number of businesses that achieved success after receipt of a microloan.”.

SEC. 10. Surplus interest rate subsidy for businesses.

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), as amended by this Act, is further amended by adding at the end the following:

“(16) INTEREST ASSISTANCE.—The Administrator is authorized to make grants to intermediaries for the purposes of reducing interest rates charged to borrowers that receive financing under this subsection.”.

SEC. 11. Authorization of appropriations.

Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended by inserting after subsection (e) the following:

“(f) Fiscal years 2010 and 2011 with respect to section 7(m).—

“(1) PROGRAM LEVELS.—For the programs authorized by this Act, the Administration is authorized to make during each of fiscal years 2010 and 2011—

“(A) $80,000,000 in technical assistance grants, as provided in section 7(m);

“(B) $110,000,000 in direct loans, as provided in section 7(m); and

“(C) $10,000,000 in interest assistance grants, as provided in section 7(m)(16).

“(2) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated such sums as may be necessary to carry out paragraph (1).”.

SEC. 12. Regulations.

Except as otherwise provided in this Act or in amendments made by this Act, after an opportunity for notice and comment, but not later than 180 days after the date of the enactment of this Act, the Administrator shall issue regulations to carry out this Act and the amendments made by this Act.

Passed the House of Representatives November 7, 2009.

    Attest: lorraine c. miller,   
    Clerk.

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