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S. 1857 (114th): Microloan Modernization Act of 2015

The text of the bill below is as of Sep 15, 2015 (Reported by Senate Committee).

Source: GPO

II

Calendar No. 224

114th CONGRESS

1st Session

S. 1857

IN THE SENATE OF THE UNITED STATES

July 23, 2015

(for herself, Ms. Ayotte, Mr. Scott, Mrs. Shaheen, and Mr. Peters) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

September 15, 2015

Reported by , without amendment

A BILL

To amend the Small Business Act to provide for expanded participation in the microloan program, and for other purposes.

1.

Short title

This Act may be cited as the Microloan Modernization Act of 2015.

2.

Definitions

In this Act—

(1)

the term intermediary has the meaning given that term in section 7(m)(11) of the Small Business Act (15 U.S.C. 636(m)(11)); and

(2)

the term microloan program means the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)).

3.

Microloan intermediary lending limit increased

Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended by striking $5,000,000 and inserting $6,000,000.

4.

Waivers of 25/75 rule

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

(iii)

Waiver

(I)

In general

The Administrator shall by rule, after a notice and comment period of not less than 60 days, establish a process by which an intermediary may apply for and the Administrator may grant a waiver from the requirements of clause (i).

(II)

Contents

The rule required under subclause (I) shall—

(aa)

require any applicant for a waiver to—

(AA)

specify how the applicant will use the additional technical assistance; and

(BB)

provide assurance, in a form provided for by the Administrator in the rule, that the intermediary will have sufficient funds to provide technical assistance to all borrowers of the intermediary; and

(bb)

incorporate any delegation of the authority of the Administrator to approve waivers to any appropriate subsidiary official.

.

5.

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 inserting (including lines of credit) after short-term.

6.

Extended repayment terms

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 for loans to small businesses

The Administrator may not impose limitations on the term for repayment of a loan made by an intermediary to a small business concern or entrepreneur, except that—

(i)

in the case of a loan made by an intermediary of not more than $10,000, the repayment term shall be not more than 6 years; and

(ii)

in the case of a loan made by an intermediary of more than $10,000, the repayment term shall be not more than 10 years.

.

7.

GAO study of microenterprise participation

Not later than 120 days after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study and submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives a report on—

(1)

the operations (including services provided, structure, size, and area of operation) of a representative sample of—

(A)

intermediaries that are eligible to participate in the microloan program and that do participate; and

(B)

intermediaries (including those operated for profit, operated as non-profits, and those affiliated with a United States institution of higher learning) that are eligible to participate in the microloan program and that do not participate;

(2)

the reasons why intermediaries described in paragraph (1)(B) choose not to participate in the microloan program;

(3)

recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph (1)(B); and

(4)

recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries.

September 15, 2015

Reported without amendment