I 

111TH CONGRESS 

1ST SESSION H. R. 3737 

To amend the Small Business Act to improve the Microloan Program, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 7, 2009 

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

Committee on Small Business 

A BILL 

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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Small Business Micro5 lending Expansion Act of 2009’’. 

6 SEC. 2. MICROLOAN CREDIT BUILDING INITIATIVE. 

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

8 636(m)) is amended by adding at the end the following: 

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

10 Administrator shall establish a process, for use by 


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1 an intermediary making a loan to a borrower under 

2 this subsection, under which the intermediary shall 

3 provide to the major credit reporting agencies the in4 formation about the borrower, both positive and neg5 ative, that is relevant to credit reporting, such as the 

6 payment activity of the borrower on the loan. Such 

7 process shall allow an intermediary the option of 

8 providing information to the major credit reporting 

9 agencies through the Administration or independ10 ently.’’. 

11 SEC. 3. FLEXIBLE CREDIT TERMS. 

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

13 636(m)), as amended by this Act, is further amended— 

14 (1) in paragraph (1)(B)(i) by striking ‘‘short15 term,’’; 

16 (2) in paragraph (6)(A) by striking ‘‘short17 term,’’; and 

18 (3) in paragraph (11)(B) by striking ‘‘short19 term,’’. 

20 SEC. 4. INCREASED PROGRAM PARTICIPATION. 

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

22 U.S.C. 636(m)(2)) is amended— 

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

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


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

2 follows: 

3 ‘‘(B) has— 

4 ‘‘(i) at least— 

5 ‘‘(I) 1 year of experience making 

6 microloans to startup, newly estab7 lished, or growing small business con8 cerns; or 

9 ‘‘(II) 1 full-time employee who 

10 has not less than 3 years of experi11 ence making microloans to startup, 

12 newly established, or growing small 

13 business concerns; and 

14 ‘‘(ii) at least— 

15 ‘‘(I) 1 year of experience pro16 viding, as an integral part of its 

17 microloan program, intensive mar18 keting, management, and technical as19 sistance to its borrowers; or 

20 ‘‘(II) 1 full-time employee who 

21 has not less than 1 year of experience 

22 providing intensive marketing, man23 agement, and technical assistance to 

24 borrowers.’’. 


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1 SEC. 5. INCREASED LIMIT ON INTERMEDIARY BORROWING. 

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

3 U.S.C. 636(m)(3)(C)) is amended— 

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

5 ‘‘$1,000,000’’; 

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

7 ‘‘$7,000,000’’; and 

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

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

10 in this subparagraph as if such amount is 

11 $10,000,000 if the Administrator determines, with 

12 respect to an intermediary, that such treatment is 

13 appropriate.’’. 

14 SEC. 6. EXPANDED BORROWER EDUCATION ASSISTANCE. 

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

16 U.S.C. 636(m)(4)(E)) is amended— 

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

18 inserting ‘‘35 percent’’; and 

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

20 inserting ‘‘35 percent’’. 

21 SEC. 7. INTEREST RATES AND LOAN SIZE. 

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

23 636(m)), as amended by this Act, is further amended— 

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

25 ‘‘$7,500’’ and inserting ‘‘$10,000’’; 


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

2 and inserting ‘‘$10,000’’; and 

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

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

5 SEC. 8. REPORTING REQUIREMENT. 

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

7 636(m)), as amended by this Act, is further amended by 

8 adding at the end the following: 

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

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

11 Administrator shall submit to the Committee on 

12 Small Business of the House of Representatives and 

13 the Committee on Small Business and Entrepre14 neurship of the Senate a report that includes, with 

15 respect to such fiscal year of the microloan program, 

16 the following: 

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

18 intermediary that received funds to make 

19 microloans or provide marketing, management, 

20 and technical assistance. 

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

22 grant provided to each such intermediary in 

23 such fiscal year and in prior fiscal years. 


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1 ‘‘(C) A description of the contributions 

2 from non-Federal sources of each such inter3 mediary. 

4 ‘‘(D) The number and amounts of 

5 microloans made by each such intermediary to 

6 all borrowers and to each of the following: 

7 ‘‘(i) Women entrepreneurs and busi8 ness owners. 

9 ‘‘(ii) Low-income entrepreneurs and 

10 business owners. 

11 ‘‘(iii) Veteran entrepreneurs and busi12 ness owners. 

13 ‘‘(iv) Disabled entrepreneurs and busi14 ness owners. 

15 ‘‘(v) Minority entrepreneurs and busi16 ness owners. 

17 ‘‘(E) A description of the marketing, man18 agement, and technical assistance provided by 

19 each such intermediary to all borrowers and to 

20 each of the following: 

21 ‘‘(i) Women entrepreneurs and busi22 ness owners. 

23 ‘‘(ii) Low-income entrepreneurs and 

24 business owners. 


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1 ‘‘(iii) Veteran entrepreneurs and busi2 ness owners. 

3 ‘‘(iv) Disabled entrepreneurs and busi4 ness owners. 

5 ‘‘(v) Minority entrepreneurs and busi6 ness owners. 

7 ‘‘(F) The number of jobs created and re8 tained as a result of microloans and marketing, 

9 management, and technical assistance provided 

10 by each such intermediary. 

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

12 intermediary. 

13 ‘‘(H) The number of businesses that 

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

15 SEC. 9. SURPLUS INTEREST RATE SUBSIDY FOR BUSI16 NESSES. 

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

18 636(m)), as amended by this Act, is further amended by 

19 adding at the end the following: 

20 ‘‘(16) INTEREST ASSISTANCE.— 

21 ‘‘(A) IN GENERAL.—The Administrator is 

22 authorized to use amounts determined unlikely 

23 to be expended under subparagraph (B) to as24 sist borrowers that receive a microloan under 


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1 this subsection to reduce the interest paid with 

2 respect to such microloan. 

3 ‘‘(B) AMOUNTS UNLIKELY TO BE EX4 PENDED.—Not later than April 1 of each fiscal 

5 year, the Administrator shall determine if any 

6 amounts made available to carry out this sub7 section for such fiscal year are unlikely to be 

8 expended for activities under this subsection 

9 other than activities under this paragraph.’’. 

10 SEC. 10. AUTHORIZATION OF APPROPRIATIONS. 

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

12 note) is amended by inserting after subsection (e) the fol13 lowing: 

14 ‘‘(f) FISCAL YEARS 2010 AND 2011.— 

15 ‘‘(1) PROGRAM LEVELS.—For the programs au16 thorized by this Act, the Administration is author17 ized to make during each of fiscal years 2010 and 

18 2011— 

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

20 grants, as provided in section 7(m); and 

21 ‘‘(B) $110,000,000 in direct loans, as pro22 vided in section 7(m). 


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1 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated such sums as 

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

Æ 


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