673 
sole underwriter of all loans and is re-
sponsible for associated risks. 
‘‘(iii) 
MICROLOAN.—The 
term 
‘microloan’ means a business loan of not 
more than $50,000 that is provided to a 
rural microenterprise. 
‘‘(iv) PROGRAM.—The term ‘program’ 
means the rural microentrepreneur assist-
ance program established under subpara-
graph (B). 
‘‘(v) RURAL MICROENTERPRISE.—The 
term ‘rural microenterprise’ means a busi-
ness entity with not more than 10 full-time 
equivalent employees located in a rural 
area. 
‘‘(vi) TRAINING.—The term ‘training’ 
means teaching broad business principles 
or general business skills in a group or 
public setting. 
‘‘(vii) TECHNICAL ASSISTANCE.—The 
term ‘technical assistance’ means working 
with a business client in a 1-to-1 manner 
to provide business and financial manage-
ment counseling, assist in the preparation 
of business or marketing plans, or provide 
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other skills tailored to an individual micro-
entrepreneur. 
‘‘(B) RURAL
MICROENTREPRENEUR
AS-
SISTANCE PROGRAM.— 
‘‘(i) ESTABLISHMENT.—The Secretary 
shall establish a rural microentrepreneur 
assistance program to provide loans and 
grants to support microentrepreneurs in 
the development and ongoing success of 
rural microenterprises. 
‘‘(ii) PURPOSE.—The purpose of the 
program is to provide microentrepreneurs 
with— 
‘‘(I) the skills necessary to estab-
lish new rural microenterprises; and 
‘‘(II) continuing technical and fi-
nancial assistance related to the suc-
cessful operation of rural microenter-
prises. 
‘‘(iii) LOANS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall make loans to microenter-
prise development organizations for 
the purpose of providing fixed-interest 
rate microloans to microentrepreneurs 
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for startup and growing rural micro-
enterprises. 
‘‘(II) 
LOAN
TERMS.—A 
loan 
made by the Secretary to a microen-
terprise 
development 
organization 
under this subparagraph shall— 
‘‘(aa) be for a term not to 
exceed 20 years; and 
‘‘(bb) bear an annual inter-
est rate of at least 1 percent. 
‘‘(III) 
LOAN
LOSS
RESERVE 
FUND.—The Secretary shall require 
each microenterprise development or-
ganization that receives a loan under 
this subparagraph to— 
‘‘(aa) establish a loan loss 
reserve fund; and 
‘‘(bb) maintain the reserve 
fund in an amount equal to at 
least 5 percent of the outstanding 
balance of such loans owed by 
the microenterprise development 
organization, until all obligations 
owed to the Secretary under this 
subparagraph are repaid. 
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‘‘(IV) DEFERRAL
OF
INTEREST 
AND PRINCIPAL.—The Secretary may 
permit the deferral of payments on 
principal and interest due on a loan to 
a microenterprise development organi-
zation made under this paragraph for 
a 2-year period beginning on the date 
on which the loan is made. 
‘‘(iv) GRANTS TO SUPPORT RURAL MI-
CROENTERPRISE DEVELOPMENT.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall make grants to microen-
terprise development organizations— 
‘‘(aa) to provide training 
and technical assistance, and 
other related services to rural 
microentrepreneurs; and 
‘‘(bb) to carry out such 
other projects and activities as 
the Secretary determines appro-
priate to further the purposes of 
the program. 
‘‘(II) SELECTION.—In making 
grants under subclause (I), the Sec-
retary shall— 
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‘‘(aa) place an emphasis on 
microenterprise development or-
ganizations that serve micro-
entrepreneurs that are located in 
rural areas that have suffered 
significant outward migration, as 
determined by the Secretary; and 
‘‘(bb) ensure, to the max-
imum extent practicable, that 
grant recipients include microen-
terprise development organiza-
tions of varying sizes and that 
serve racially and ethnically di-
verse populations. 
‘‘(v) GRANTS TO ASSIST MICROENTRE-
PRENEURS.— 
‘‘(I) IN
GENERAL.—The Sec-
retary shall make annual grants to 
microenterprise development organiza-
tions to provide technical assistance to 
microentrepreneurs that— 
‘‘(aa) received a loan from 
the microenterprise development 
organization under subparagraph 
(B)(iii); or 
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