IB 

Union Calendar No. 140 

114TH CONGRESS 

1ST SESSION H. R. 2670 

[Report No. 114–188] 

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 

JUNE 25, 2015 

Additional sponsors: Mr. CURBELO of Florida, Ms. VELA ́ZQUEZ, Mr. TAKAI, 

Mrs. RADEWAGEN, and Ms. JUDY CHU of California 

JUNE 25, 2015 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


rfrederick on DSK6VPTVN1PROD with BILLS
2 

•HR 2670 RH

A BILL 

To amend the Small Business Act to provide for expanded 

participation in the microloan program, and for other 

purposes. 


rfrederick on DSK6VPTVN1PROD with BILLS
3 

•HR 2670 RH

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 inter11 mediaries may apply for and the Administrator may grant 

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

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

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

15 of the Small Business Administration shall require any ap16 plicant for a waiver to— 

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

18 additional technical assistance; and 

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

20 the Administrator in the rule that the intermediary 

21 will have sufficient funds to provide technical assist22 ance to all of the intermediary’s borrowers. 

23 (c) RULEMAKING REQUIREMENTS.—The rule re24 quired by subsection (a) shall be promulgated after notice 

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


rfrederick on DSK6VPTVN1PROD with BILLS
4 

•HR 2670 RH

1 Such regulation shall be codified in the Code of Federal 

2 Regulations and shall incorporate any delegation of the 

3 Administrator’s authority to approve waivers to any ap4 propriate subsidiary official. 

5 SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT IN6 CREASED. 

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

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

9 ‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 

10 SEC. 4. EXTENDED REPAYMENT TERMS. 

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

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

13 following: 

14 ‘‘(F) REPAYMENT TERMS FOR LOANS TO

15 SMALL BUSINESSES.—The Administrator may 

16 not impose limitations on the term for repay17 ment of a loan made by an intermediary to a 

18 small business concern or entrepreneur, except 

19 that— 

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

21 intermediary of $10,000 or less, the repay22 ment term shall be not more than 6 years; 

23 and 


rfrederick on DSK6VPTVN1PROD with BILLS
5 

•HR 2670 RH

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

2 $10,000, the repayment term shall be not 

3 more than 10 years.’’. 

4 SEC. 5. LINES OF CREDIT AUTHORIZED. 

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

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

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

8 SEC. 6. GAO STUDY OF MICROENTERPRISE PARTICIPATION. 

9 Not later than 120 days after the date of enactment 

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

11 shall complete a study on and report to the Committee 

12 on Small Business of the House of Representatives on the 

13 following: 

14 (1) The operations (including services provided, 

15 structure, size, and area of operation) of a rep16 resentative sample of— 

17 (A) intermediaries that are eligible for par18 ticipation in the microloan program under sec19 tion 7(m) of the Small Business Act and that 

20 do participate; and 

21 (B) intermediaries (including those oper22 ated for profit, operated as non-profits, and 

23 those affiliated with a United States institution 

24 of higher learning) that are so eligible and that 

25 do not participate. 


rfrederick on DSK6VPTVN1PROD with BILLS
6 

•HR 2670 RH

1 (2) The reasons why intermediaries described in 

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

3 (3) Recommendations on how to encourage in4 creased participation in the microloan program by 

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

6 (4) Recommendations on how to decrease the 

7 costs associated with participation in the microloan 

8 program for eligible intermediaries. 

9 SEC. 7. OFFICE OF ADVOCACY ECONOMIC STUDY OF MAN10 DATORY SAVINGS REQUIREMENT. 

11 Not later than 120 days after the date of enactment 

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

13 Business Administration shall submit to the Committee on 

14 Small Business of the House of Representatives a report 

15 on the economic impact of a mandatory savings require16 ment on business concerns eligible to participate in the 

17 microloan program under section 7(m) of the Small Busi18 ness Act, including on the benefits and costs of such a 

19 requirement and recommendations on implementation of 

20 such a requirement. 


rfrederick on DSK6VPTVN1PROD with BILLS

rfrederick on DSK6VPTVN1PROD with BILLS
Union Calendar No. 140 

114TH CONGRESS 

1ST SESSION H. R. 2670 

[Report No. 114–188] 

A BILL 

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

JUNE 25, 2015 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


rfrederick on DSK6VPTVN1PROD with BILLS