I 

118TH CONGRESS 

2D SESSION H. R. 10241 

To amend the Small Business Act to optimize the operations of the microloan 

program, lower costs for small business concerns and intermediary participants in the program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 21, 2024 

Ms. VELA ́ZQUEZ introduced the following bill; which was referred to the 

Committee on Small Business 

A BILL 

To amend the Small Business Act to optimize the operations 

of the microloan program, lower costs for small business 

concerns and intermediary participants in the 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 Improve5 ment Act of 2024’’. 


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1 SEC. 2. INTEREST RATE FOR CERTAIN INTERMEDIARIES. 

2 Section 7(m)(3)(F)(iii) of the Small Business Act (15 

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

4 ‘‘$7,500’’ and inserting ‘‘$10,000’’. 

5 SEC. 3. LINES OF CREDIT AUTHORIZED. 

6 Section 7(m)(6)(A) of the Small Business Act (15 

7 U.S.C. 636(m)(6)(A)) is amended by striking ‘‘fixed rate 

8 loans’’ and inserting ‘‘fixed-rate loans (including exten9 sions of a short-term, fixed-rate line of credit)’’. 

10 SEC. 4. EXTENDED REPAYMENT TERMS. 

11 (a) IN GENERAL.—Section 7(m)(6) of the Small 

12 Business Act (15 U.S.C. 636(m)(6)) is amended by add13 ing at the end the following: 

14 ‘‘(F) REPAYMENT TERMS.— 

15 ‘‘(i) LIMITATION ON REPAYMENTS

16 TERM.—The repayment term for a loan 

17 made under this paragraph shall not be 

18 more than— 

19 ‘‘(I) in the case of a loan made 

20 by an intermediary of $10,000 or less, 

21 7 years; and 

22 ‘‘(II) in the case of a loan made 

23 by an intermediary of greater than 

24 $10,000, 10 years. 

25 ‘‘(ii) NO ADDITIONAL LIMITATIONS.— 

26 The Administrator may not impose any adVerDate Sep 11 2014 01:10 Dec 28, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H10241.IH H10241

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1 ditional limitation on the term for repay2 ment of a loan made by an intermediary 

3 under this paragraph.’’. 

4 (b) TECHNICAL AMENDMENT.—Section 329(c) of the 

5 Economic Aid to Hard-Hit Small Businesses, Nonprofits, 

6 and Venues Act (Public Law 116–260; 134 Stat. 2042 

7 15 U.S.C. 636 note) is repealed. 

8 SEC. 5. PROGRAM FUNDING FOR MICROLOANS. 

9 (a) IN GENERAL.—Section 7(m) of the Small Busi10 ness Act (15 U.S.C. 636(m)) is amended— 

11 (1) in paragraph (7)(B)— 

12 (A) by amending clause (i) to read as fol13 lows: 

14 ‘‘(i) ALLOCATION.—Subject to the 

15 availability of appropriations and for the 

16 first 2 quarters of a fiscal year, of the total 

17 amount of new loan funds made available 

18 for award under this subsection in such 

19 fiscal year, the Administrator shall— 

20 ‘‘(I) reserve 15 percent of such 

21 funds for award to designated under22 utilized States; and 

23 ‘‘(II) make the remaining 85 per24 cent of such funds available for award 

25 in any State.’’; and 


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1 (B) in clause (ii), by striking ‘‘to carry 

2 out’’ and all that follows through the period at 

3 the end and inserting the following: ‘‘under 

4 clause (i)(I) remains unexpended, the Adminis5 trator may make that portion available for 

6 award in any State or designated underutilized 

7 State.’’; and 

8 (2) in paragraph (11)— 

9 (A) in clause (ii) of subparagraph (C), by 

10 striking ‘‘rural’’ and all that follows through 

11 the end of such clause and inserting ‘‘rural;’’; 

12 (B) in subparagraph (D), by striking the 

13 period at the end and inserting ‘‘; and’’; and 

14 (C) by adding at the end the following new 

15 subparagraph: 

16 ‘‘(E) the term ‘State’ means each of the 

17 several States, the District of Columbia, the 

18 Commonwealth of Puerto Rico, the United 

19 States Virgin Islands, Guam, the Northern 

20 Mariana Islands, and American Samoa.’’. 

21 (b) RULEMAKING.—Not later than 180 days after the 

22 date of the enactment of this Act, the Administrator of 

23 the Small Business Administration shall issue regulations 

24 to define the term ‘‘designated underutilized State’’, as 


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1 used in section 7(m)(7)(B) of the Small Business Act (15 

2 U.S.C. 636(m)(7)(B)), as added by this section. 

3 SEC. 6. CREDIT REPORTING INFORMATION. 

4 The Administrator of the Small Business Administra5 tion shall issue rules establishing a process under which 

6 an intermediary that makes a loan to a borrower under 

7 section 7(m) of the Small Business Act (15 U.S.C. 

8 636(m)) shall be required to provide the major credit re9 porting agencies with information about the borrower rel10 evant to credit reporting, such as the borrower’s payment 

11 activity on the loan. 

12 SEC. 7. REPORT REGARDING EQUITABLE DISTRIBUTION. 

13 Section 7(m)(8) of the Small Business Act (15 

14 U.S.C. 636(m)(8)) is amended— 

15 (1) by striking ‘‘In approving’’ and inserting 

16 the following: 

17 ‘‘(A) IN GENERAL.—In approving’’; and 

18 (2) by adding at the end the following: 

19 ‘‘(B) ANNUAL REPORT.—The Adminis20 trator shall include in the report submitted 

21 under paragraph (10), and make publicly avail22 able on the website of the Administration, infor23 mation on how the Administration has complied 

24 with the requirements of subparagraph (A).’’. 

Æ 


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