II 

114TH CONGRESS 

1ST SESSION S. 1857 

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 

JULY 23, 2015 

Mrs. FISCHER (for herself, Ms. AYOTTE, and Mr. SCOTT) 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 2015’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 


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

2 given that 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. WAIVERS OF 25/75 RULE. 

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

14 U.S.C. 636(m)(4)(E)) is amended by adding at the end 

15 the following: 

16 ‘‘(iii) WAIVER.— 

17 ‘‘(I) IN GENERAL.—The Admin18 istrator shall by rule, after a notice 

19 and comment period of not less than 

20 60 days, establish a process by which 

21 an intermediary may apply for and 

22 the Administrator may grant a waiver 

23 from the requirements of clause (i). 

24 ‘‘(II) CONTENTS.—The rule re25 quired under subclause (I) shall— 


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1 ‘‘(aa) require any applicant 

2 for a waiver to— 

3 ‘‘(AA) specify how the 

4 applicant will use the addi5 tional technical assistance; 

6 and 

7 ‘‘(BB) provide assur8 ance, in a form provided for 

9 by the Administrator in the 

10 rule, that the intermediary 

11 will have sufficient funds to 

12 provide technical assistance 

13 to all borrowers of the inter14 mediary; and 

15 ‘‘(bb) incorporate any dele16 gation of the authority of the Ad17 ministrator to approve waivers to 

18 any appropriate subsidiary offi19 cial.’’. 

20 SEC. 5. LINES OF CREDIT AUTHORIZED. 

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

22 U.S.C. 636(m)(6)(A)) is amended by inserting ‘‘(including 

23 lines of credit)’’ after ‘‘short-term’’. 


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1 SEC. 6. 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 not more than $10,000, 

13 the repayment term shall be not more than 

14 6 years; and 

15 ‘‘(ii) in the case of a loan made by an 

16 intermediary of more than $10,000, the re17 payment term shall be not more than 10 

18 years.’’. 

19 SEC. 7. GAO STUDY OF MICROENTERPRISE PARTICIPATION. 

20 Not later than 120 days after the date of enactment 

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

22 shall conduct a study and submit to the Committee on 

23 Small Business and Entrepreneurship of the Senate and 

24 the Committee on Small Business of the House of Rep25 resentatives 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 as non-profits, 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. 

Æ 


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