II 

Calendar No. 346 

115TH CONGRESS 

2D SESSION S. 526 

To amend the Small Business Act to provide for expanded participation 

in the microloan program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 2, 2017 

Mrs. FISCHER (for herself, Mr. COONS, Mr. SCOTT, Mrs. GILLIBRAND, Mrs. 

SHAHEEN, Mr. PETERS, Mr. DONNELLY, and Ms. DUCKWORTH) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship 

MARCH 19, 2018 

Reported by Mr. RISCH, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To amend the Small Business Act to provide for expanded 

participation in the microloan program, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Microloan Moderniza5 tion Act of 2017’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act— 

3 (1) the term ‘‘intermediary’’ has the meaning 

4 given the term in section 7(m)(11) of the Small 

5 Business Act (15 U.S.C. 636(m)(11)); and 

6 (2) the term ‘‘microloan program’’ means the 

7 program established under section 7(m) of the Small 

8 Business Act (15 U.S.C. 636(m)). 

9 SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT IN10 CREASED. 

11 Section 7(m)(3)(C) of the Small Business Act (15 

12 U.S.C. 636(m)(3)(C)) is amended by striking 

13 ‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 

14 SEC. 4. ELIMINATION OF 25/75 RULE. 

15 Section 7(m)(4) of the Small Business Act (15 

16 U.S.C. 636(m)(4)) is amended— 

17 (1) by striking subparagraph (E); and 

18 (2) by redesignating subparagraph (F) as sub19 paragraph (E). 

20 SEC. 5. SBA STUDY OF MICROENTERPRISE PARTICIPATION. 

21 Not later than 1 year after the date of enactment 

22 of this Act, the Administrator of the Small Business Ad23 ministration shall conduct a study and submit to the Com24 mittee on Small Business and Entrepreneurship of the 

25 Senate and the Committee on Small Business of the 

26 House of Representatives a report on— 


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1 (1) the operations (including services provided, 

2 structure, size, and area of operation) of a rep3 resentative sample of— 

4 (A) intermediaries that are eligible to par5 ticipate in the microloan program and that do 

6 participate; and 

7 (B) intermediaries (including those oper8 ated for profit, operated not for profit, and 

9 those affiliated with a United States institution 

10 of higher learning) that are eligible to partici11 pate in the microloan program and that do not 

12 participate; 

13 (2) the reasons why intermediaries described in 

14 paragraph (1)(B) choose not to participate in the 

15 microloan program; 

16 (3) recommendations on how to encourage in17 creased participation in the microloan program by 

18 intermediaries described in paragraph (1)(B); and 

19 (4) recommendations on how to decrease the 

20 costs associated with participation in the microloan 

21 program for eligible intermediaries. 

22 SEC. 6. GAO STUDY ON MICROLOAN INTERMEDIARY PRAC23 TICES. 

24 Not later than 1 year after the date of enactment 

25 of this Act, the Comptroller General of the United States 


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1 shall submit to the Committee on Small Business and En2 trepreneurship of the Senate and the Committee on Small 

3 Business of the House of Representatives a report evalu4 ating— 

5 (1) oversight of the microloan program by the 

6 Small Business Administration, including oversight 

7 of intermediaries participating in the microloan pro8 gram; and 

9 (2) the specific processes used by the Small 

10 Business Administration to ensure— 

11 (A) compliance by intermediaries partici12 pating in the microloan program; and 

13 (B) the overall performance of the micro14 loan program. 

15 SECTION 1. SHORT TITLE. 

16 This Act may be cited as the ‘‘Microloan Moderniza17 tion Act of 2018’’. 

18 SEC. 2. DEFINITIONS. 

19 In this Act— 

20 (1) the term ‘‘intermediary’’ has the meaning 

21 given the term in section 7(m)(11) of the Small Busi22 ness Act (15 U.S.C. 636(m)(11)); and 

23 (2) the term ‘‘microloan program’’ means the 

24 program established under section 7(m) of the Small 

25 Business Act (15 U.S.C. 636(m)). 


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1 SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT IN2 CREASED. 

3 Section 7(m)(3)(C) of the Small Business Act (15 

4 U.S.C. 636(m)(3)(C)) is amended by striking ‘‘$5,000,000’’ 

5 and inserting ‘‘$6,000,000’’. 

6 SEC. 4. MICROLOAN TECHNICAL ASSISTANCE. 

7 Section 7(m)(4)(E) of the Small Business Act (15 

8 U.S.C. 636(m)(4)(E)) is amended by striking ‘‘25 percent’’ 

9 each place that term appears and inserting ‘‘50 percent’’. 

10 SEC. 5. SBA STUDY OF MICROENTERPRISE PARTICIPATION. 

11 Not later than 1 year after the date of enactment of 

12 this Act, the Administrator of the Small Business Adminis13 tration shall conduct a study and submit to the Committee 

14 on Small Business and Entrepreneurship of the Senate and 

15 the Committee on Small Business of the House of Represent16 atives a report on— 

17 (1) the operations (including services provided, 

18 structure, size, and area of operation) of a representa19 tive sample of— 

20 (A) intermediaries that are eligible to par21 ticipate in the microloan program and that do 

22 participate; and 

23 (B) intermediaries (including those oper24 ated for profit, operated not for profit, and those 

25 affiliated with a United States institution of 

26 higher learning) that are eligible to participate 


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1 in the microloan program and that do not par2 ticipate; 

3 (2) the reasons why intermediaries described in 

4 paragraph (1)(B) choose not to participate in the 

5 microloan program; 

6 (3) recommendations on how to encourage in7 creased participation in the microloan program by 

8 intermediaries described in paragraph (1)(B); and 

9 (4) recommendations on how to decrease the costs 

10 associated with participation in the microloan pro11 gram for eligible intermediaries. 

12 SEC. 6. GAO STUDY ON MICROLOAN INTERMEDIARY PRAC13 TICES. 

14 Not later than 1 year after the date of enactment of 

15 this Act, the Comptroller General of the United States shall 

16 submit to the Committee on Small Business and Entrepre17 neurship of the Senate and the Committee on Small Busi18 ness of the House of Representatives a report evaluating— 

19 (1) oversight of the microloan program by the 

20 Small Business Administration, including oversight 

21 of intermediaries participating in the microloan pro22 gram; and 

23 (2) the specific processes used by the Small Busi24 ness Administration to ensure— 


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1 (A) compliance by intermediaries partici2 pating in the microloan program; and 

3 (B) the overall performance of the 

4 microloan program. 


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Calendar No. 346 

115TH CONGRESS 

2D SESSION S. 526 

A BILL 

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

MARCH 19, 2018 

Reported with an amendment 


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