H.R.1502 - Microloan Improvement Act of 2021117th Congress (2021-2022) |
|Sponsor:||Rep. Kim, Andy [D-NJ-3] (Introduced 03/02/2021)|
|Committees:||House - Small Business | Senate - Small Business and Entrepreneurship|
|Latest Action:||Senate - 04/19/2021 Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship. (All Actions)|
|Roll Call Votes:||There has been 1 roll call vote|
This bill has the status Passed House
Here are the steps for Status of Legislation:
- Passed House
- Passed Senate
- To President
- Became Law
Summary: H.R.1502 — 117th Congress (2021-2022)All Information (Except Text)
Passed House (04/15/2021)
Microloan Improvement Act of 2021
This bill revises the microloan program through which the Small Business Administration (SBA) provides, through designated intermediaries, certain financial assistance to small businesses.
Specifically, the bill authorizes an intermediary to offer a line of credit to a small business, and it increases the average amount for loans from an intermediary to participating small businesses that makes the intermediary eligible for a reduced interest rate on SBA loans. The bill also places limits on the repayment term for a microloan, and it prohibits the SBA from imposing any additional limitation on the term for repayment of a microloan.
Further, the SBA must (1) reserve 15% of new loan funds that are made available for disbursement as microloans to designated underutilized states and make the remaining 85% available for any state, (2) establish a process for an intermediary to provide the major credit reporting agencies with information about a borrower that is relevant to credit reporting, and (3) include information regarding equitable distribution of loan funds in its annual report.