I 

117TH CONGRESS 

1ST SESSION H. R. 1502 

To amend the Small Business Act to optimize the operations of the microloan 

program, lower costs for small business concerns and intermediary participants in the program, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 2, 2021 

Mr. KIM of New Jersey (for himself, Mr. GARBARINO, Ms. NEWMAN, and Mr. 

BURCHETT) introduced the following bill; which was referred to the Committee on Small Business 

A BILL 

To amend the Small Business Act to optimize the operations 

of the microloan program, lower costs for small business 

concerns and intermediary participants in the 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 Improve5 ment Act of 2021’’. 


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1 SEC. 2. INTEREST RATE FOR CERTAIN INTERMEDIARIES. 

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

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

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

5 SEC. 3. LINES OF CREDIT AUTHORIZED. 

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

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

8 lines of credit)’’ after ‘‘fixed rate loans’’. 

9 SEC. 4. EXTENDED REPAYMENT TERMS. 

10 (a) IN GENERAL.—Section 7(m)(6) of the Small 

11 Business Act (15 U.S.C. 636(m)(6)) is amended by add12 ing at the end the following: 

13 ‘‘(F) REPAYMENT TERMS.— 

14 ‘‘(i) LIMITATION ON REPAYMENTS

15 TERM.—The repayment term for a loan 

16 made under this paragraph shall not be 

17 more than— 

18 ‘‘(I) in the case of a loan made 

19 by an intermediary of $10,000 or less, 

20 7 years; and 

21 ‘‘(II) in the case of a loan made 

22 by an intermediary of greater than 

23 $10,000, 10 years. 

24 ‘‘(ii) NO ADDITIONAL LIMITATIONS.— 

25 The Administrator may not impose any ad26 ditional limitation on the term for repayVerDate Sep 11 2014 05:11 Mar 06, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1502.IH H1502

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1 ment of a loan made by an intermediary 

2 under this paragraph.’’. 

3 (b) TECHNICAL AMENDMENT.—Section 329(c) of the 

4 Economic Aid to Hard-Hit Small Businesses, Nonprofits, 

5 and Venues Act (Public Law 116–260; 134 Stat. 2042 

6 15 U.S.C. 636 note) is repealed. 

7 SEC. 5. PROGRAM FUNDING FOR MICROLOANS. 

8 (a) IN GENERAL.—Section 7(m) of the Small Busi9 ness Act (15 U.S.C. 636(m)) is amended— 

10 (1) in paragraph (7)(B)— 

11 (A) by amending clause (i) to read as fol12 lows: 

13 ‘‘(i) ALLOCATION.—Subject to the 

14 availability of appropriations and for the 

15 first 2 quarters of a fiscal year, of the total 

16 amount of new loan funds made available 

17 for award under this subsection in such 

18 fiscal year, the Administrator shall— 

19 ‘‘(I) reserve 15 percent of such 

20 funds for award to designated under21 utilized States; and 

22 ‘‘(II) make the remaining 85 per23 cent of such funds available for award 

24 in any State.’’; and 


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1 (B) in clause (ii), by striking ‘‘to carry 

2 out’’ and all that follows through the period at 

3 the end and inserting the following: ‘‘under 

4 clause (i)(I) remains unexpended, the Adminis5 trator may make that portion available for 

6 award in any State or designated underutilized 

7 State.’’; and 

8 (2) in paragraph (11)— 

9 (A) in subparagraph (C)(ii), by striking 

10 ‘‘and’’ at the end; 

11 (B) in subparagraph (D), by striking the 

12 period at the end and inserting ‘‘; and’’; and 

13 (C) by adding at the end the following new 

14 subparagraph: 

15 ‘‘(E) the term ‘State’ means each of the 

16 several States, the District of Columbia, the 

17 Commonwealth of Puerto Rico, the United 

18 States Virgin Islands, Guam, the Northern 

19 Mariana Islands, and American Samoa.’’. 

20 (b) RULEMAKING.—Not later than 180 days after the 

21 date of the enactment of this Act, the Administrator of 

22 the Small Business Administration shall issue regulations 

23 to define the term ‘‘designated underutilized State’’, as 

24 used in section 7(m)(7)(B) of the Small Business Act (15 

25 U.S.C. 636(m)(7)(B)), as added by this section. 


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1 SEC. 6. CREDIT REPORTING INFORMATION. 

2 The Administrator of the Small Business Administra3 tion shall issue rules establishing a process under which 

4 an intermediary that makes a loan to a borrower under 

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

6 636(m)) shall be required to provide the major credit re7 porting agencies with information about the borrower rel8 evant to credit reporting, such as the borrower’s payment 

9 activity on the loan. 

10 SEC. 7. REPORT REGARDING EQUITABLE DISTRIBUTION. 

11 Section 7(m)(8) of the Small Business Act (15 

12 U.S.C. 636(m)(8)) is amended— 

13 (1) by striking ‘‘In approving’’ and inserting 

14 the following: 

15 ‘‘(A) IN GENERAL.—In approving’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(B) ANNUAL REPORT.—The Adminis18 trator shall include in the report submitted 

19 under paragraph (10), and make publicly avail20 able on the website of the Administration, infor21 mation on how the Administration has met the 

22 requirements of subparagraph (A).’’. 

Æ 


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