IIB 

111TH CONGRESS 

1ST SESSION H. R. 3737 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 9, 2009 

Received; read twice and referred to the Committee on Small Business and 

Entrepreneurship 

AN ACT 

To amend the Small Business Act to improve 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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Small Business Micro3 lending Expansion Act of 2009’’. 

4 SEC. 2. MICROLOAN CREDIT BUILDING INITIATIVE. 

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

6 636(m)) is amended by adding at the end the following: 

7 ‘‘(14) CREDIT REPORTING INFORMATION.—The 

8 Administrator shall establish a process, for use by 

9 an intermediary making a loan to a borrower under 

10 this subsection, under which the intermediary shall 

11 provide to the major credit reporting agencies the in12 formation about the borrower, both positive and neg13 ative, that is relevant to credit reporting, such as the 

14 payment activity of the borrower on the loan. Such 

15 process shall allow an intermediary the option of 

16 providing information to the major credit reporting 

17 agencies through the Administration or independ18 ently.’’. 

19 SEC. 3. FLEXIBLE CREDIT TERMS. 

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

21 636(m)), as amended by this Act, is further amended— 

22 (1) in paragraph (1)(B)(i) by striking ‘‘short23 term,’’; 

24 (2) in paragraph (6)(A) by striking ‘‘short25 term,’’; and 


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1 (3) in paragraph (11)(B) by striking ‘‘short2 term,’’. 

3 SEC. 4. INCREASED PROGRAM PARTICIPATION. 

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

5 U.S.C. 636(m)(2)) is amended— 

6 (1) in subparagraph (A) by striking ‘‘paragraph 

7 (10)’’ and inserting ‘‘paragraph (11)’’; and 

8 (2) by amending subparagraph (B) to read as 

9 follows: 

10 ‘‘(B) has— 

11 ‘‘(i) at least— 

12 ‘‘(I) 1 year of experience making 

13 microloans to startup, newly estab14 lished, or growing small business con15 cerns; or 

16 ‘‘(II) 1 full-time employee who 

17 has not less than 3 years of experi18 ence making microloans to startup, 

19 newly established, or growing small 

20 business concerns; and 

21 ‘‘(ii) at least— 

22 ‘‘(I) 1 year of experience pro23 viding, as an integral part of its 

24 microloan program, intensive marVerDate Nov 24 2008 00:13 Nov 10, 2009 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3737.RFS H3737

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1 keting, management, and technical as2 sistance to its borrowers; or 

3 ‘‘(II) 1 full-time employee who 

4 has not less than 1 year of experience 

5 providing intensive marketing, man6 agement, and technical assistance to 

7 borrowers.’’. 

8 SEC. 5. INCREASED LIMIT ON INTERMEDIARY BORROWING. 

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

10 U.S.C. 636(m)(3)(C)) is amended— 

11 (1) by striking ‘‘$750,000’’ and inserting 

12 ‘‘$1,000,000’’; 

13 (2) by striking ‘‘$3,500,000’’ and inserting 

14 ‘‘$7,000,000’’; and 

15 (3) by adding at the end the following: ‘‘The 

16 Administrator may treat the amount of $7,000,000 

17 in this subparagraph as if such amount is 

18 $10,000,000 if the Administrator determines, with 

19 respect to an intermediary, that such treatment is 

20 appropriate.’’. 

21 SEC. 6. EXPANDED BORROWER EDUCATION ASSISTANCE. 

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

23 U.S.C. 636(m)(4)(E)) is amended— 

24 (1) in clause (i) by striking ‘‘25 percent’’ and 

25 inserting ‘‘35 percent’’; and 


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1 (2) in clause (ii) by striking ‘‘25 percent’’ and 

2 inserting ‘‘35 percent’’. 

3 SEC. 7. YOUNG ENTREPRENEURS PROGRAM. 

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

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

6 following: 

7 ‘‘(G) YOUNG ENTREPRENEURS PRO8 GRAM.— 

9 ‘‘(i) IN GENERAL.—An intermediary 

10 that receives a grant under paragraph 

11 (1)(B)(ii) may establish a program for the 

12 geographic area served by such inter13 mediary that provides to young entre14 preneurs technical assistance regarding the 

15 following: 

16 ‘‘(I) Establishing or operating a 

17 small business concern in the geo18 graphic area served by the inter19 mediary. 

20 ‘‘(II) Acquiring or securing fi21 nancing to carry out the activities de22 scribed in subclause (I). 

23 ‘‘(ii) YOUNG ENTREPRENEUR DE24 FINED.—For purposes of this subparaVerDate Nov 24 2008 00:13 Nov 10, 2009 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3737.RFS H3737

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1 graph, a young entrepreneur is an indi2 vidual who— 

3 ‘‘(I) is 25 years of age or young4 er; and 

5 ‘‘(II) has resided in the geo6 graphic area served by the inter7 mediary for not less than 2 years. 

8 ‘‘(iii) GOOD FAITH EFFORT REQUIRE9 MENT.—If a young entrepreneur who re10 ceives technical assistance under this sub11 paragraph from an intermediary estab12 lishes or operates a small business concern, 

13 the young entrepreneur shall make a good 

14 faith effort to establish or operate such 

15 concern in the geographic area served by 

16 the intermediary. 

17 ‘‘(iv) DEFERRED REPAYMENT.—If a 

18 small business concern established or oper19 ated by a young entrepreneur receives a 

20 loan under this subsection, such concern 

21 may defer repayment on such loan for a 

22 period of not more than 6 months begin23 ning on the date that such concern receives 

24 the final disbursement of such loan.’’. 


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1 SEC. 8. INTEREST RATES AND LOAN SIZE. 

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

3 636(m)), as amended by this Act, is further amended— 

4 (1) in paragraph (3)(F)(iii) by striking 

5 ‘‘$7,500’’ and inserting ‘‘$10,000’’; 

6 (2) in paragraph (6)(C)(i) by striking ‘‘$7,500’’ 

7 and inserting ‘‘$10,000’’; and 

8 (3) in paragraph (6)(C)(ii) by striking 

9 ‘‘$7,500’’ and inserting ‘‘$10,000’’. 

10 SEC. 9. REPORTING REQUIREMENT. 

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

12 636(m)), as amended by this Act, is further amended by 

13 adding at the end the following: 

14 ‘‘(15) REPORTING REQUIREMENT.—Not later 

15 than 90 days after the end of each fiscal year, the 

16 Administrator shall submit to the Committee on 

17 Small Business of the House of Representatives and 

18 the Committee on Small Business and Entrepre19 neurship of the Senate a report that includes, with 

20 respect to such fiscal year of the microloan program, 

21 the following: 

22 ‘‘(A) The names and locations of each 

23 intermediary that received funds to make 

24 microloans or provide marketing, management, 

25 and technical assistance. 


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1 ‘‘(B) The amounts of each loan and each 

2 grant provided to each such intermediary in 

3 such fiscal year and in prior fiscal years. 

4 ‘‘(C) A description of the contributions 

5 from non-Federal sources of each such inter6 mediary. 

7 ‘‘(D) The number and amounts of 

8 microloans made by each such intermediary to 

9 all borrowers and to each of the following: 

10 ‘‘(i) Women entrepreneurs and busi11 ness owners. 

12 ‘‘(ii) Low-income entrepreneurs and 

13 business owners. 

14 ‘‘(iii) Veteran entrepreneurs and busi15 ness owners. 

16 ‘‘(iv) Disabled entrepreneurs and busi17 ness owners. 

18 ‘‘(v) Minority entrepreneurs and busi19 ness owners. 

20 ‘‘(E) A description of the marketing, man21 agement, and technical assistance provided by 

22 each such intermediary to all borrowers and to 

23 each of the following: 

24 ‘‘(i) Women entrepreneurs and busi25 ness owners. 


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1 ‘‘(ii) Low-income entrepreneurs and 

2 business owners. 

3 ‘‘(iii) Veteran entrepreneurs and busi4 ness owners. 

5 ‘‘(iv) Disabled entrepreneurs and busi6 ness owners. 

7 ‘‘(v) Minority entrepreneurs and busi8 ness owners. 

9 ‘‘(F) The number of jobs created and re10 tained as a result of microloans and marketing, 

11 management, and technical assistance provided 

12 by each such intermediary. 

13 ‘‘(G) The repayment history of each such 

14 intermediary. 

15 ‘‘(H) The number of businesses that 

16 achieved success after receipt of a microloan.’’. 

17 SEC. 10. SURPLUS INTEREST RATE SUBSIDY FOR BUSI18 NESSES. 

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

20 636(m)), as amended by this Act, is further amended by 

21 adding at the end the following: 

22 ‘‘(16) INTEREST ASSISTANCE.—The Adminis23 trator is authorized to make grants to intermediaries 

24 for the purposes of reducing interest rates charged 


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1 to borrowers that receive financing under this sub2 section.’’. 

3 SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 

4 Section 20 of the Small Business Act (15 U.S.C. 631 

5 note) is amended by inserting after subsection (e) the fol6 lowing: 

7 ‘‘(f) FISCAL YEARS 2010 AND 2011 WITH RESPECT

8 TO SECTION 7(m).— 

9 ‘‘(1) PROGRAM LEVELS.—For the programs au10 thorized by this Act, the Administration is author11 ized to make during each of fiscal years 2010 and 

12 2011— 

13 ‘‘(A) $80,000,000 in technical assistance 

14 grants, as provided in section 7(m); 

15 ‘‘(B) $110,000,000 in direct loans, as pro16 vided in section 7(m); and 

17 ‘‘(C) $10,000,000 in interest assistance 

18 grants, as provided in section 7(m)(16). 

19 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

20 There is authorized to be appropriated such sums as 

21 may be necessary to carry out paragraph (1).’’. 

22 SEC. 12. REGULATIONS. 

23 Except as otherwise provided in this Act or in amend24 ments made by this Act, after an opportunity for notice 

25 and comment, but not later than 180 days after the date 


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1 of the enactment of this Act, the Administrator shall issue 

2 regulations to carry out this Act and the amendments 

3 made by this Act. 

Passed the House of Representatives November 7, 

2009. 

Attest: LORRAINE C. MILLER, 

Clerk. 


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