117TH CONGRESS 

1ST SESSION H. R. 1502 

AN ACT 

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, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Microloan Improve3 ment Act of 2021’’. 

4 SEC. 2. INTEREST RATE FOR CERTAIN INTERMEDIARIES. 

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

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

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

8 SEC. 3. LINES OF CREDIT AUTHORIZED. 

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

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

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

12 SEC. 4. EXTENDED REPAYMENT TERMS. 

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

14 Business Act (15 U.S.C. 636(m)(6)) is amended by add15 ing at the end the following: 

16 ‘‘(F) REPAYMENT TERMS.— 

17 ‘‘(i) LIMITATION ON REPAYMENTS

18 TERM.—The repayment term for a loan 

19 made under this paragraph shall not be 

20 more than— 

21 ‘‘(I) in the case of a loan made 

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

23 7 years; and 

24 ‘‘(II) in the case of a loan made 

25 by an intermediary of greater than 

26 $10,000, 10 years. 
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1 ‘‘(ii) NO ADDITIONAL LIMITATIONS.— 

2 The Administrator may not impose any ad3 ditional limitation on the term for repay4 ment of a loan made by an intermediary 

5 under this paragraph.’’. 

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

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

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

9 15 U.S.C. 636 note) is repealed. 

10 SEC. 5. PROGRAM FUNDING FOR MICROLOANS. 

11 (a) IN GENERAL.—Section 7(m) of the Small Busi12 ness Act (15 U.S.C. 636(m)) is amended— 

13 (1) in paragraph (7)(B)— 

14 (A) by amending clause (i) to read as fol15 lows: 

16 ‘‘(i) ALLOCATION.—Subject to the 

17 availability of appropriations and for the 

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

19 amount of new loan funds made available 

20 for award under this subsection in such 

21 fiscal year, the Administrator shall— 

22 ‘‘(I) reserve 15 percent of such 

23 funds for award to designated under24 utilized States; and 
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1 ‘‘(II) make the remaining 85 per2 cent of such funds available for award 

3 in any State.’’; and 

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

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

6 the end and inserting the following: ‘‘under 

7 clause (i)(I) remains unexpended, the Adminis8 trator may make that portion available for 

9 award in any State or designated underutilized 

10 State.’’; and 

11 (2) in paragraph (11)— 

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

13 ‘‘and’’ at the end; 

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

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

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

17 subparagraph: 

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

19 several States, the District of Columbia, the 

20 Commonwealth of Puerto Rico, the United 

21 States Virgin Islands, Guam, the Northern 

22 Mariana Islands, and American Samoa.’’. 

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

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

25 the Small Business Administration shall issue regulations 
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1 to define the term ‘‘designated underutilized State’’, as 

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

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

4 SEC. 6. CREDIT REPORTING INFORMATION. 

5 The Administrator of the Small Business Administra6 tion shall issue rules establishing a process under which 

7 an intermediary that makes a loan to a borrower under 

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

9 636(m)) shall be required to provide the major credit re10 porting agencies with information about the borrower rel11 evant to credit reporting, such as the borrower’s payment 

12 activity on the loan. 

13 SEC. 7. REPORT REGARDING EQUITABLE DISTRIBUTION. 

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

15 U.S.C. 636(m)(8)) is amended— 

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

17 the following: 

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

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

20 ‘‘(B) ANNUAL REPORT.—The Adminis21 trator shall include in the report submitted 

22 under paragraph (10), and make publicly avail23 able on the website of the Administration, infor-
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1 mation on how the Administration has met the 

2 requirements of subparagraph (A).’’. 

Passed the House of Representatives April 15, 2021. 

Attest: 

Clerk. 

117TH CONGRESS 

1ST SESSION H. R. 1502 

AN ACT 

To amend the Small Business Act to optimize the 

poses. participants in the program, and for other purfor small business concerns and intermediary operations of the microloan program, lower costs