II 

115TH CONGRESS 

1ST 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, and Mrs. GILLIBRAND) 

introduced the following bill; which was read twice and referred to the 

Committee on Small Business and Entrepreneurship 

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’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 


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

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

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

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

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

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

7 SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT IN8 CREASED. 

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

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

11 ‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 

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

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

14 U.S.C. 636(m)(4)) is amended— 

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

16 (2) by redesignating subparagraph (F) as sub17 paragraph (E). 

18 SEC. 5. SBA STUDY OF MICROENTERPRISE PARTICIPATION. 

19 Not later than 1 year after the date of enactment 

20 of this Act, the Administrator of the Small Business Ad21 ministration shall conduct a study and submit to the Com22 mittee on Small Business and Entrepreneurship of the 

23 Senate and the Committee on Small Business of the 

24 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. 

Æ 


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