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 par-
ticipants 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 Com-
mittee 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Microloan Improve-
ment Act of 2021’’. 
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SEC. 2. INTEREST RATE FOR CERTAIN INTERMEDIARIES. 
Section 7(m)(3)(F)(iii) of the Small Business Act (15 
U.S.C. 
636(m)(3)(F)(iii)) 
is 
amended 
by 
striking 
‘‘$7,500’’ and inserting ‘‘$10,000’’. 
SEC. 3. LINES OF CREDIT AUTHORIZED. 
Section 7(m)(6)(A) of the Small Business Act (15 
U.S.C. 636(m)(6)(A)) is amended by inserting ‘‘(including 
lines of credit)’’ after ‘‘fixed rate loans’’. 
SEC. 4. EXTENDED REPAYMENT TERMS. 
(a) IN GENERAL.—Section 7(m)(6) of the Small 
Business Act (15 U.S.C. 636(m)(6)) is amended by add-
ing at the end the following: 
‘‘(F) REPAYMENT TERMS.— 
‘‘(i) LIMITATION
ON
REPAYMENTS 
TERM.—The repayment term for a loan 
made under this paragraph shall not be 
more than— 
‘‘(I) in the case of a loan made 
by an intermediary of $10,000 or less, 
7 years; and 
‘‘(II) in the case of a loan made 
by an intermediary of greater than 
$10,000, 10 years. 
‘‘(ii) NO ADDITIONAL LIMITATIONS.— 
The Administrator may not impose any ad-
ditional limitation on the term for repay-
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ment of a loan made by an intermediary 
under this paragraph.’’. 
(b) TECHNICAL AMENDMENT.—Section 329(c) of the 
Economic Aid to Hard-Hit Small Businesses, Nonprofits, 
and Venues Act (Public Law 116–260; 134 Stat. 2042 
15 U.S.C. 636 note) is repealed. 
SEC. 5. PROGRAM FUNDING FOR MICROLOANS. 
(a) IN GENERAL.—Section 7(m) of the Small Busi-
ness Act (15 U.S.C. 636(m)) is amended— 
(1) in paragraph (7)(B)— 
(A) by amending clause (i) to read as fol-
lows: 
‘‘(i) ALLOCATION.—Subject to the 
availability of appropriations and for the 
first 2 quarters of a fiscal year, of the total 
amount of new loan funds made available 
for award under this subsection in such 
fiscal year, the Administrator shall— 
‘‘(I) reserve 15 percent of such 
funds for award to designated under-
utilized States; and 
‘‘(II) make the remaining 85 per-
cent of such funds available for award 
in any State.’’; and 
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(B) in clause (ii), by striking ‘‘to carry 
out’’ and all that follows through the period at 
the end and inserting the following: ‘‘under 
clause (i)(I) remains unexpended, the Adminis-
trator may make that portion available for 
award in any State or designated underutilized 
State.’’; and 
(2) in paragraph (11)— 
(A) in subparagraph (C)(ii), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (D), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(E) the term ‘State’ means each of the 
several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United 
States Virgin Islands, Guam, the Northern 
Mariana Islands, and American Samoa.’’. 
(b) RULEMAKING.—Not later than 180 days after the 
date of the enactment of this Act, the Administrator of 
the Small Business Administration shall issue regulations 
to define the term ‘‘designated underutilized State’’, as 
used in section 7(m)(7)(B) of the Small Business Act (15 
U.S.C. 636(m)(7)(B)), as added by this section. 
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SEC. 6. CREDIT REPORTING INFORMATION. 
The Administrator of the Small Business Administra-
tion shall issue rules establishing a process under which 
an intermediary that makes a loan to a borrower under 
section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) shall be required to provide the major credit re-
porting agencies with information about the borrower rel-
evant to credit reporting, such as the borrower’s payment 
activity on the loan. 
SEC. 7. REPORT REGARDING EQUITABLE DISTRIBUTION. 
Section 7(m)(8) of the Small Business Act (15 
U.S.C. 636(m)(8)) is amended— 
(1) by striking ‘‘In approving’’ and inserting 
the following: 
‘‘(A) IN GENERAL.—In approving’’; and 
(2) by adding at the end the following: 
‘‘(B) ANNUAL
REPORT.—The Adminis-
trator shall include in the report submitted 
under paragraph (10), and make publicly avail-
able on the website of the Administration, infor-
mation on how the Administration has met the 
requirements of subparagraph (A).’’. 
Æ 
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