< Back to H.R. 4173 (103rd Congress, 1993–1994)

Text of the To amend the Small Business Act to provide for expanded participation in the microloan demonstration program.

This bill was introduced on April 12, 1994, in a previous session of Congress, but was not enacted. The text of the bill below is as of Apr 12, 1994 (Introduced).

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HR 4173 IH

103d CONGRESS

2d Session

H. R. 4173

To amend the Small Business Act to provide for expanded participation in the microloan demonstration program.

IN THE HOUSE OF REPRESENTATIVES

April 12, 1994

Mr. MACHTLEY introduced the following bill; which was referred to the Committee on Small Business


A BILL

To amend the Small Business Act to provide for expanded participation in the microloan demonstration program.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. LOAN GUARANTEES.

    (a) IN GENERAL- Section 7(m)(3) of the Small Business Act (15 U.S.C. 636(m)(3)) is amended by adding at the end the following:

        ‘(I) LOAN GUARANTEES- The Administration may make loans to intermediaries under this subsection either directly or in cooperation with banks or other financial institutions through agreements to participate on an immediate or deferred (guaranteed) basis. Participation in deferred participation loans under this subsection shall be subject to the terms and conditions applicable to participation in such loans under subsection (a); except that for any loan under this subsection such participation shall be equal to 100 percent of the balance of the financing outstanding at the time of disbursement.’.

    (b) CONFORMING AMENDMENTS- Section 7(m) of such Act (15 U.S.C. 636(m)) is amended--

      (1) in paragraph (1)(B)(i) by striking ‘direct’; and

      (2) in paragraph (3)(H) by striking ‘subparagraphs (B) and (D)’ and inserting ‘subparagraphs (B), (D), and (I)’.

SEC. 2. STATE FUNDING LIMITATIONS.

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

      (1) by striking clause (i);

      (2) by redesignating clauses (ii) and (iii) as clauses (i) and (ii), respectively; and

      (3) in clause (i), as so redesignated, by striking ‘such programs’ and inserting ‘microloan programs’.

SEC. 3. MICROLOAN INTERMEDIARIES.

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

      (1) in paragraph (11)(A)(iv) by inserting ‘, except as provided by paragraph (12),’ after ‘other than’; and

      (2) by adding at the end the following:

      ‘(12) MUNICIPAL AGENCIES AND INSTRUMENTALITIES- An agency or instrumentality of a municipal government shall be considered to be a quasi-governmental economic development entity under paragraph (11)(A)(iv) if the agency or instrumentality--

        ‘(A) has a governing body with a majority of its members from the private sector; and

        ‘(B) is not under the direct administrative control of the municipal government.

      For the purposes of this paragraph, the use of public employees by an agency or instrumentality of a municipal government shall not be considered to constitute direct administrative control by the municipal government and shall not otherwise affect the eligibility of the agency or instrumentality as a quasi-governmental economic development entity.’.