I 
116TH CONGRESS 
2D SESSION 
H. R. 6291 
To amend the microloan program of the Small Business Adminstration in 
response to COVID-19, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 19, 2020 
Mr. KIM introduced the following bill; which was referred to the Committee 
on Small Business 
A BILL 
To amend the microloan program of the Small Business 
Adminstration in response to COVID-19, 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 Emergency 
Assistance Act of 2020’’. 
SEC. 2. RECOVERY ASSISTANCE FOR MICROBUSINESSES. 
(a) PURPOSE.—The purpose of this section is to allow 
lenders to deploy more capital, give borrowers more time 
to repay, increase rural lending, and cut technical assist-
ance red tape. 
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(b) LOANS TO INTERMEDIARIES.— 
(1) IN GENERAL.—Section 7(m) of the Small 
Business Act (15 U.S.C. 636(m)) is amended— 
(A) in paragraph (3)(C)— 
(i) by striking ‘‘and $6,000,000’’ and 
inserting ‘‘$10,000,000, in the aggre-
gate,’’; and 
(ii) by inserting before the period at 
the end the following: ‘‘, and $4,500,000 in 
any of those remaining years’’; 
(B) in paragraph (4)— 
(i) in subparagraph (A), by striking 
‘‘subparagraph (C)’’ each place that term 
appears and inserting ‘‘subparagraphs (C) 
and (G)’’; 
(ii) in subparagraph (C), by amending 
clause (i) to read as follows: 
‘‘(i) IN
GENERAL.—In addition to 
grants made under subparagraph (A) or 
(G), each intermediary shall be eligible to 
receive a grant equal to 5 percent of the 
total outstanding balance of loans made to 
the intermediary under this subsection if— 
‘‘(I) the intermediary provides 
not less than 25 percent of its loans 
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to small business concerns located in 
or owned by one or more residents of 
an economically distressed area; or 
‘‘(II) the intermediary has a 
portfolio of loans made under this 
subsection— 
‘‘(aa) 
that 
averages 
not 
more than $10,000 during the 
period of the intermediary’s par-
ticipation in the program; or 
‘‘(bb) of which not less than 
25 percent is serving rural areas 
during 
the 
period 
of 
the 
intermediary’s participation in 
the program.’’; and 
(iii) by adding at the end the fol-
lowing: 
‘‘(G) GRANT AMOUNTS BASED ON APPRO-
PRIATIONS.—In any fiscal year in which the 
amount appropriated to make grants under 
subparagraph (A) is sufficient to provide to 
each intermediary that receives a loan under 
paragraph (1)(B)(i) a grant of not less than 25 
percent of the total outstanding balance of 
loans made to the intermediary under this sub-
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section, the Administration shall make a grant 
under subparagraph (A) to each intermediary 
of not less than 25 percent and not more than 
30 percent of that total outstanding balance for 
the intermediary.’’; and 
(C) by striking paragraph (7) and insert-
ing the following: 
‘‘(7) PROGRAM FUNDING FOR MICROLOANS.— 
Under the program authorized by this subsection, 
the Administration may fund, on a competitive basis, 
not more than 300 intermediaries.’’. 
(2) AMENDMENT IN 2021.—Effective on October 
1, 2021, section 7(m)(3)(C) of the Small Business 
Act (15 U.S.C. 636(m)(3)(C)) is amended— 
(A) by striking ‘‘$10,000,000’’ and by in-
serting ‘‘$7,000,000’’; and 
(B) by striking ‘‘$4,500,000’’ and insert-
ing ‘‘$3,000,000’’. 
(c) TEMPORARY WAIVER OF TECHNICAL ASSISTANCE 
GRANTS MATCHING REQUIREMENTS AND FLEXIBILITY 
ON PRE- AND POST-LOAN ASSISTANCE.—During the pe-
riod beginning on the date of enactment of this Act and 
ending on September 30, 2021, the Administration shall 
waive— 
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(1) the requirement to contribute non-Federal 
funds under section 7(m)(4)(B) of the Small Busi-
ness Act (15 U.S.C. 636(m)(4)(B)); and 
(2) the limitation on amounts allowed to be ex-
pended to provide information and technical assist-
ance under clause (i) of section 7(m)(4)(E) of the 
Small Business Act (15 U.S.C. 636(m)(4)(E)) and 
enter into third-party contracts to provide technical 
assistance under clause (ii) of such section 
7(m)(4)(E). 
(d) TEMPORARY DURATION
OF LOANS
TO BOR-
ROWERS.— 
(1) IN GENERAL.—During the period beginning 
on the date of enactment of this Act and ending on 
September 30, 2021, the duration of a loan made by 
an eligible intermediary under section 7(m) of the 
Small Business Act (15 U.S.C. 636(m))— 
(A) to an existing borrower may be ex-
tended to not more than 8 years; and 
(B) to a new borrower may be not more 
than 8 years. 
(2) REVERSION.—On and after October 1, 
2021, the duration of a loan made by an eligible 
intermediary to a borrower under section 7(m) of 
the Small Business Act (15 U.S.C. 636(m)) shall be 
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7 years or such other amount established by the Ad-
ministrator. 
(e) PROGRAM LEVELS.—Section 20 of the Small 
Business Act (15 U.S.C. 631 note) is amended by adding 
at the end the following: 
‘‘(h) MICROLOAN PROGRAM.—For each of fiscal 
years 2021 through 2025, the Administration is author-
ized to make— 
‘‘(1) $80,000,000 in technical assistance grants, 
as provided in section 7(m); and 
‘‘(2) $110,000,000 in direct loans, as provided 
in section 7(m).’’. 
(f) AUTHORIZATION OF APPROPRIATIONS.—In addi-
tion to amounts provided under the Consolidated Appro-
priations Act, 2020 (Public Law 116–93) for the program 
established under section 7(m) of the Small Business Act 
(15 U.S.C. 636(m)), there is authorized to be appro-
priated for fiscal year 2020, to remain available until ex-
pended— 
(1) $50,000,000 to provide technical assistance 
grants under such section 7(m); and 
(2) $7,000,000 to provide direct loans under 
such section 7(m). 
Æ 
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