‘‘(C) lacks adequate access to capital or 
other resources essential for business success, 
or is economically disadvantaged, as determined 
by the Administrator. 
‘‘(6) DISADVANTAGED NATIVE AMERICAN EN-
TREPRENEUR.—The term ‘disadvantaged Native 
American entrepreneur’ means a disadvantaged en-
trepreneur who is also a member of an Indian Tribe. 
‘‘(7) INDIAN TRIBE.—The term ‘Indian tribe’ 
has the same meaning as in section 4(a) of the In-
dian Self-Determination and Education Assistance 
Act. 
‘‘(8) INTERMEDIARY.—The term ‘intermediary’ 
means a private, nonprofit entity that seeks to serve 
microenterprise development organizations and pro-
grams, as authorized under subsection (d). 
‘‘(9) LOW-INCOME PERSON.—The term ‘low-in-
come person’ means having an income, adjusted for 
family size, of not more than— 
‘‘(A) for metropolitan areas, 80 percent of 
the area median income; and 
‘‘(B) for nonmetropolitan areas, the great-
er of— 
‘‘(i) 80 percent of the area median in-
come; or
‘‘(ii) 80 percent of the statewide non-
metropolitan area median income. 
‘‘(10) 
MICROENTREPRENEUR.—The 
term 
‘microentrepreneur’ means the owner or developer of 
a microenterprise. 
‘‘(11) MICROENTERPRISE.—The term ‘micro-
enterprise’ means a sole proprietorship, partnership, 
or corporation that— 
‘‘(A) has fewer than 5 employees; and 
‘‘(B) generally lacks access to conventional 
loans, equity, or other banking services. 
‘‘(12) MICROENTERPRISE DEVELOPMENT ORGA-
NIZATION OR PROGRAM.—The term ‘microenterprise 
development organization or program’ means a non-
profit entity, or a program administered by such an 
entity, including community development corpora-
tions or other nonprofit development organizations 
and social service organizations, that provides serv-
ices to disadvantaged entrepreneurs. 
‘‘(13) TRAINING
AND
TECHNICAL
ASSIST-
ANCE.—The term ‘training and technical assistance’ 
means services and support provided to disadvan-
taged entrepreneurs, such as assistance for the pur-
pose of enhancing business planning, marketing, 
management, financial management skills, and as-
sistance for the purpose of accessing financial serv-
ices. 
‘‘(14) VERY LOW-INCOME PERSON.—The term 
‘very low-income person’ means having an income, 
adjusted for family size, of not more than 150 per-
cent of the poverty line (as defined in section 673(2) 
of the Community Services Block Grant Act (42 
U.S.C. 9902(2)), including any revision required by 
that section). 
‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a microenterprise technical assist-
ance and capacity building grant program to provide as-
sistance from the Administration in the form of grants 
to qualified organizations in accordance with this section. 
‘‘(c) USES OF ASSISTANCE.—A qualified organization 
shall use grants made under this section— 
‘‘(1) to provide training and technical assist-
ance to disadvantaged entrepreneurs; 
‘‘(2) to provide training and capacity building 
services to microenterprise development organiza-
tions and programs and groups of such organiza-
tions to assist such organizations and programs in 
developing microenterprise training and services; 
‘‘(3) to aid in researching and developing the 
best practices in the field of microenterprise and
technical assistance programs for disadvantaged en-
trepreneurs; 
‘‘(4) to provide training and technical assist-
ance to disadvantaged Native American entre-
preneurs and prospective entrepreneurs; and 
‘‘(5) for such other activities as the Adminis-
trator determines are consistent with the purposes of 
this section. 
‘‘(d) QUALIFIED ORGANIZATIONS.—For purposes of 
eligibility for assistance under this section, a qualified or-
ganization shall be— 
‘‘(1) a nonprofit microenterprise development 
organization or program (or a group or collaborative 
thereof) that has a demonstrated record of delivering 
microenterprise services to disadvantaged entre-
preneurs; 
‘‘(2) an intermediary; 
‘‘(3) a microenterprise development organiza-
tion or program that is accountable to a local com-
munity, working in conjunction with a State or local 
government or Indian tribe; or 
‘‘(4) an Indian tribe acting on its own, if the 
Indian tribe can certify that no private organization 
or program referred to in this subsection exists with-
in its jurisdiction.
‘‘(e) ALLOCATION OF ASSISTANCE; SUBGRANTS.— 
‘‘(1) ALLOCATION OF ASSISTANCE.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall allocate assistance from the Administra-
tion under this section to ensure that— 
‘‘(i) activities described in subsection 
(c)(1) are funded using not less than 75 
percent of amounts made available for 
such assistance; and 
‘‘(ii) activities described in subsection 
(c)(2) are funded using not less than 15 
percent of amounts made available for 
such assistance. 
‘‘(B) LIMIT ON INDIVIDUAL ASSISTANCE.— 
No single person may receive more than 10 per-
cent of the total funds appropriated under this 
section in a single fiscal year. 
‘‘(2) TARGETED
ASSISTANCE.—The Adminis-
trator shall ensure that not less than 50 percent of 
the grants made under this section are used to ben-
efit very low-income persons, including those resid-
ing on Indian reservations. 
‘‘(3) SUBGRANTS AUTHORIZED.— 
‘‘(A) IN GENERAL.—A qualified organiza-
tion receiving assistance under this section may
provide grants using that assistance to qualified 
small and emerging microenterprise organiza-
tions and programs, subject to such rules and 
regulations as the Administrator determines to 
be appropriate. 
‘‘(B) LIMIT
ON
ADMINISTRATIVE
EX-
PENSES.—Not more than 7.5 percent of assist-
ance received by a qualified organization under 
this section may be used for administrative ex-
penses in connection with the making of sub-
grants under subparagraph (A). 
‘‘(4) DIVERSITY.—In making grants under this 
section, the Administrator shall ensure that grant 
recipients include both large and small microenter-
prise organizations, serving urban, rural, and Indian 
tribal communities serving diverse populations. 
‘‘(5) PROHIBITION ON PREFERENTIAL CONSID-
ERATION
OF
CERTAIN
SBA
PROGRAM
PARTICI-
PANTS.—In making grants under this section, the 
Administrator shall ensure that any application 
made by a qualified organization that is a partici-
pant in the program established under section 7(m) 
of the Small Business Act does not receive pref-
erential consideration over applications from other
qualified organizations that are not participants in 
such program. 
‘‘(f) MATCHING REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Financial assistance under 
this section shall be matched with funds from 
sources other than the Federal Government on the 
basis of not less than 50 percent of each dollar pro-
vided by the Administration. 
‘‘(2) SOURCES
OF
MATCHING
FUNDS.—Fees, 
grants, gifts, funds from loan sources, and in-kind 
resources of a grant recipient from public or private 
sources may be used to comply with the matching 
requirement in paragraph (1). 
‘‘(3) EXCEPTION.— 
‘‘(A) IN GENERAL.—In the case of an ap-
plicant for assistance under this section with se-
vere constraints on available sources of match-
ing funds, the Administrator may reduce or 
eliminate the matching requirements of para-
graph (1). 
‘‘(B) LIMITATION.—Not more than 10 per-
cent of the total funds made available from the 
Administration in any fiscal year to carry out 
this section may be excepted from the matching
requirements of paragraph (1), as authorized by 
subparagraph (A) of this paragraph. 
‘‘(g) APPLICATIONS FOR ASSISTANCE.—An applica-
tion for assistance under this section shall be submitted 
in such form and in accordance with such procedures as 
the Administrator shall establish. 
‘‘(h) RECORDKEEPING AND REPORTING.— 
‘‘(1) IN GENERAL.—Each organization that re-
ceives assistance from the Administration in accord-
ance with this section shall— 
‘‘(A) submit to the Administration not less 
than once in every 18-month period, financial 
statements audited by an independent certified 
public accountant; 
‘‘(B) submit an annual report to the Ad-
ministration on its activities; and 
‘‘(C) keep such records as may be nec-
essary to disclose the manner in which any as-
sistance under this section is used. 
‘‘(2) ACCESS.—The Administration shall have 
access upon request, for the purposes of determining 
compliance with this section, to any records of any 
organization that receives assistance from the Ad-
ministration in accordance with this section.
‘‘(3) DATA
COLLECTION.—Each organization 
that receives assistance from the Administration in 
accordance with this section shall collect information 
relating to, as applicable— 
‘‘(A) the number of individuals counseled 
or trained; 
‘‘(B) the number of hours of counseling 
provided; 
‘‘(C) the number of startup small business 
concerns formed; 
‘‘(D) the number of small business con-
cerns expanded; 
‘‘(E) the number of low-income individuals 
counseled or trained; and 
‘‘(F) the number of very low-income indi-
viduals counseled or trained. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to the Administrator $15,000,000 for 
each of the fiscal years 2005 through 2007 to carry 
out the provisions of this section, which shall remain 
available until expended. 
‘‘(2) TRAINING FOR NATIVE AMERICAN ENTRE-
PRENEURS.—In addition to the amount authorized 
under subsection (i)(1), there are authorized to be
appropriated to the Administrator $2,000,000 for 
each of the fiscal years 2005 through 2007 to carry 
out the provisions of subsection (c)(4), which shall 
remain available until expended.’’. 
(b) TRANSFER PROVISIONS.— 
(1) SMALL BUSINESS ACT AMENDMENTS.—The 
Small Business Act (15 U.S.C. 631 et seq.) is 
amended by redesignating section 37 as section 38. 
(2) TRANSFER.—Section 37 of the Riegle Com-
munity Development and Regulatory Improvement 
Act of 1994 (15 U.S.C. 6901 note), as so designated 
by subsection (a) of this section, is transferred to, 
and inserted after, section 36 of the Small Business 
Act. 
(c) REFERENCES.—All references in Federal law to 
the ‘‘Program for Investment in Microentrepreneurs Act 
of 1999’’ or the ‘‘PRIME Act’’ shall be deemed to be ref-
erences to section 37 of the Small Business Act, as added 
by this section. 
(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion or the amendments made by this section shall affect 
any grant or assistance provided under the Program for 
Investment in Microentrepreneurs Act of 1999, before the 
date of enactment of this Act, and any such grant or as-
sistance shall be subject to the Program for Investment
in Microentrepreneurs Act of 1999, as in effect on the day 
before the date of enactment of this Act. 
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