To amend the Small Business Act to improve the Microloan Program, and for other purposes.

Summary: Small Business Microlending Expansion Act of 2009 - (Sec. 2) Amends the Small Business Act with respect to the Small Business Administration (SBA) Microloan program (small-scale loans to start-up, newly established, or growing small businesses for working capital or the acquisition of materials, supplies, or equipment) to direct the SBA Administrator to establish a process under which an intermediary making a Microloan loan provides relevant borrower information to the major credit reporting agencies.

(Sec. 3) Removes the requirement that such loans be short-term only.

(Sec. 4) Increases eligibility for Microloan program participation to include intermediaries with at least one full-time employee with not less than: (1) three years of experience making microloans to startup, newly established, or growing small businesses; or (2) one year of experience providing intensive marketing, management, and technical assistance to borrowers.

(Sec. 5) Increases from: (1) $750,000 to $1 million the loan limit to an intermediary in the first year of participation; and (2) $3.5 million to $7 million the loan limit for the remaining years of participation.

(Sec. 6) Increases from 25% to 35% of grant funds received the maximum amount that may be used by an intermediary to provide information and technical assistance to small business borrowers.

(Sec. 7) Allows intermediaries that receive grants to establish a program that provides technical assistance to young entrepreneurs in establishing or operating a small business, or in securing financing, in the area served by the intermediary.

(Sec. 8) Increases from $7,500 to $10,000 the maximum loan amount to a small business borrower that will qualify for a reduced interest rate from the intermediary.

(Sec. 9) Directs the Administrator to submit annually to the congressional small business committees specified information with respect to the Microloan program, including participating intermediaries and borrowers, and the marketing, management, and technical assistance provided.

(Sec. 10) Authorizes the Administrator to make grants to intermediaries for reducing interest rates charged to Microloan borrowers (interest assistance grants).

(Sec. 11) Authorizes the Administrator to make Microloan technical assistance grants, direct loans, and interest assistance grants for FY2010-FY2011, and authorizes appropriations for such loans and grants.

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.