S.2850 - Microloan Program Modernization Act of 2016114th Congress (2015-2016)
|Sponsor:||Sen. Fischer, Deb [R-NE] (Introduced 04/26/2016)|
|Committees:||Senate - Small Business and Entrepreneurship|
|Committee Reports:||S. Rept. 114-301|
|Latest Action:||Senate - 07/13/2016 By Senator Vitter from Committee on Small Business and Entrepreneurship filed written report. Report No. 114-301. (All Actions)|
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Summary: S.2850 — 114th Congress (2015-2016)All Information (Except Text)
Reported to Senate with amendment(s) (05/24/2016)
Microloan Program Modernization Act of 2016
(Sec. 3) This bill amends the Small Business Act, with respect to the Small Business Administration (SBA) Microloan Program (assisting low-income individuals to start and operate a small business), to increase from $5 million to $6 million the total amount of loans outstanding and committed to any particular intermediary (excluding outstanding grants) from the SBA business loan and investment fund for the remaining years of the intermediary's participation in the program.
(Sec. 4) The Microloan Program "25/75" rule is repealed, which permits SBA-designated microloan intermediary lenders to expend up to 25% of the intensive marketing, management, and technical assistance grant funds they receive from the SBA to provide information and technical assistance to small business concerns that are their prospective borrowers.
(Sec. 5) The SBA shall:
- compare the operations of a representative sample of eligible intermediaries that participate in the microloan program and of eligible intermediaries that do not,
- study the reasons why the latter do not participate,
- recommend how to encourage increased participation by intermediaries in the microloan program, and
- recommend how to decrease the associated costs for intermediary participation.
(Sec. 6) The Government Accountability Office shall evaluate:
- SBA oversight of the microloan program, including oversight of participating intermediaries; and
- the specific processes the SBA uses to ensure program compliance by participating intermediaries and overall microloan program performance.