I 

114TH CONGRESS 

1ST SESSION H. R. 2670 

To amend the Small Business Act to provide for expanded participation 

in the microloan program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 4, 2015 

Mr. MOULTON introduced the following bill; which was referred to the 

Committee on Small Business 

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 2015’’. 

6 SEC. 2. WAIVERS OF 25/75 RULE. 

7 (a) WAIVER AUTHORIZED.—Section 7(m)(4)(E)(i) of 

8 the Small Business Act (15 U.S.C. 636(m)(4)(E)(i)) is 

9 amended by adding at the end the following: ‘‘The Admin10 istrator shall by rule establish a process by which interVerDate Sep 11 2014 20:00 Jun 05, 2015 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2670.IH H2670

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1 mediaries may apply for and the Administrator may grant 

2 a waiver from the requirements of this clause.’’. 

3 (b) CONTENTS OF RULE.—In the rule required by 

4 the amendment made by subsection (a), the Administrator 

5 of the Small Business Administration shall require any ap6 plicant for a waiver to— 

7 (1) to specify how such applicant will use the 

8 additional technical assistance; and 

9 (2) provide assurance in a form provided for by 

10 the Administrator in the rule that the intermediary 

11 will have sufficient funds to provide technical assist12 ance to all of the intermediary’s borrowers. 

13 (c) RULEMAKING REQUIREMENTS.—The rule re14 quired by subsection (a) shall be promulgated after notice 

15 and the opportunity for comment of not less than 60 days. 

16 Such regulation shall be codified in the Code of Federal 

17 Regulations and shall incorporate any delegation of the 

18 Administrator’s authority to approve waivers to any ap19 propriate subsidiary official. 

20 SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT IN21 CREASED. 

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

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

24 ‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 


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1 SEC. 4. EXTENDED REPAYMENT TERMS. 

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

3 U.S.C. 636(m)(6)) is amended by adding at the end the 

4 following: 

5 ‘‘(F) REPAYMENT TERMS FOR LOANS TO

6 SMALL BUSINESSES.—The Administrator may 

7 not impose limitations on the term for repay8 ment of a loan made by an intermediary to a 

9 small business concern or entrepreneur, except 

10 that— 

11 ‘‘(i) in the case of a loan made by an 

12 intermediary of $10,000 or less, the repay13 ment term shall be not more than 6 years; 

14 and 

15 ‘‘(ii) in the case of a loan greater than 

16 $10,000, the repayment term shall be not 

17 more than 10 years.’’. 

18 SEC. 5. LINES OF CREDIT AUTHORIZED. 

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

20 U.S.C. 636(m)(6)(A)) is amended by inserting after 

21 ‘‘short-term’’ insert ‘‘(including lines of credit)’’. 

22 SEC. 6. GAO STUDY OF MICROENTERPRISE PARTICIPATION. 

23 Not later than 120 days after the date of enactment 

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

25 shall complete a study on and report to the Committee 


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1 on Small Business of the House of Representatives on the 

2 following: 

3 (1) The operations (including services provided, 

4 structure, size, and area of operation) of a rep5 resentative sample of— 

6 (A) intermediaries that are eligible for par7 ticipation in the microloan program under sec8 tion 7(m) of the Small Business Act and that 

9 do participate; and 

10 (B) intermediaries (including those oper11 ated for profit, operated as non-profits, and 

12 those affiliated with a United States institution 

13 of higher learning) that are so eligible and that 

14 do not participate. 

15 (2) The reasons why intermediaries described in 

16 paragraph (1)(B) choose not to participate. 

17 (3) Recommendations on how to encourage in18 creased participation in the microloan program by 

19 intermediaries described in paragraph (1)(B). 

20 (4) Recommendations on how to decrease the 

21 costs associated with participation in the microloan 

22 program for eligible intermediaries. 


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1 SEC. 7. OFFICE OF ADVOCACY ECONOMIC STUDY OF MAN2 DATORY SAVINGS REQUIREMENT. 

3 Not later than 120 days after the date of enactment 

4 of this Act, the Chief Counsel for Advocacy of the Small 

5 Business Administration shall submit to the Committee on 

6 Small Business of the House of Representatives a report 

7 on the economic impact of a mandatory savings require8 ment on business concerns eligible to participate in the 

9 microloan program under section 7(m) of the Small Busi10 ness Act, including on the benefits and costs of such a 

11 requirement and recommendations on implementation of 

12 such a requirement. 

Æ 


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