136
is amended by adding at the end the following new sub-
clause:
‘‘(VII) The aggregate amount of
microenterprise loans held by the sav-
ings association.’’.
(b) MICROENTERPRISE LOAN DEFINED.—Section
10(m)(4) of the Home Owners’ Loan Act (12 U.S.C.
1467a(m)(4)) is amended by adding at the end the follow-
ing new subparagraph:
‘‘(D) MICROENTERPRISE LOAN.—For pur-
poses of this paragraph, the term ‘microenter-
prise loan’—
‘‘(i) means a loan—
‘‘(I) to a commercial enterprise
with 5 or fewer employees, 1 or more
of whom own the enterprise;
‘‘(II) in amounts not less than
$100 and not more than $10,000; and
‘‘(III) the interest rate on which
is comparable to the interest rate
charged on secured commercial loans
offered by the savings association to
the association’s most preferred com-
mercial customers;
137
‘‘(IV) which is not secured by
collateral or is secured by collateral
the value of which, as a percentage of
the amount of the loan, is substan-
tially less than the percentage gen-
erally required by the institution for
commercial loans; and
‘‘(V) the terms of which may per-
mit the deferral of principal or inter-
est payments otherwise due under
such terms;
‘‘(ii) includes a loan to a microenter-
prise intermediary the proceeds of which
will be used by the intermediary for mak-
ing loans described in clause (i); and
‘‘(iii) does not include—
‘‘(I) 
any 
loan 
to 
a 
micro-
enterprise which does not meet the re-
quirements of paragraph (8); or
‘‘(II) any loan to a micro-
enterprise intermediary which does
not agree to use the proceeds of the
loan to make microenterprise loans in
accordance with the requirements of
paragraph (8).’’.
138
(c) CRITERIA FOR MICROENTERPRISE LOANS.—Sec-
tion 10(m) of the Home Owners’ Loan Act (12 U.S.C.
1467a(m)) is amended by adding at the end the following
new paragraph:
‘‘(8) 
CRITERIA
FOR
MICROENTERPRISE
LOANS.—
‘‘(A) IN
GENERAL.—A microenterprise
loan meets the requirements of this paragraph
only if the savings association makes the micro-
enterprise 
loan, 
or 
the 
microenterprise
intermediary which receives a loan from the as-
sociation, agrees to use the proceeds of the loan
to make microenterprise loans in accordance
with the following criteria:
‘‘(i) In considering any loan to a
microenterprise, the lender takes into ac-
count—
‘‘(I) the creditworthiness of any
person who controls the microenter-
prise in lieu of the creditworthiness of
the enterprise;
‘‘(II) in the case of a microenter-
prise which is a startup business,
whether the microenterprise is soundly
conceived; and
139
‘‘(III) the need of the microenter-
prise for expansion capital.
‘‘(ii) The lender accepts as collateral
for the loan a security interest in any per-
sonal property of any person who controls
the microenterprise which consists of
consumer or household goods.
‘‘(iii) The lender does not require col-
lateral or a secured interest for more than
50 percent of the face amount of the loan.
‘‘(iv) The loans are made in amounts
not less than $100 and not more than
$10,000 to persons who would not other-
wise qualify for a commercial loan.
‘‘(v) The lender provides technical as-
sistance, training, and counseling in busi-
ness practices, such as accounting, market-
ing, management, financial practices, and
general business practices and sales, to the
microenterprise in connection with the loan
and closely monitors the microenterprise,
including the enterprise’s loan repayment
performance.
‘‘(B) LENDER DEFINED.—For purposes of
subparagraph (A), the term ‘lender’ means—
140
‘‘(i) in the case of a microenterprise
loan by a savings association to a micro-
enterprise, the savings association; and
‘‘(ii) in the case of a microenterprise
loan by a microenterprise intermediary to
a 
microenterprise, 
the 
microenterprise
intermediary.’’.
SEC. 21005. USE OF CDBG ASSISTANCE FOR ADMINISTRA-
TIVE COSTS OF ENTITIES ASSISTING MICRO-
ENTERPRISES.
Section 105(a)(23) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(23)) is
amended by adding at the end the following flush material:
‘‘assistance provided to such entities under this
paragraph may be used for reasonable administra-
tive and operating costs of such entities related to
facilitating economic development through activities
under subparagraphs (A) through (C);’’.
SEC. 21006. ESTABLISHMENT OF MICROENTERPRISE DIVI-
SION IN EACH FEDERAL BANKING AGENCY.
(a) IN GENERAL.—Each Federal banking agency (as
defined in section 3(z) of the Federal Deposit Insurance
Act) shall establish a division to be known as the ‘‘Micro-
enterprise Technical and Operations Office’’ to promote
microenterprises by offering technical assistance, training,
141
outreach, and other support to groups and individuals en-
gaged in, or desiring to establish, a microenterprise or an
institution which offers credit or financial services to
microenterprises.
(b) DUTIES OF MICROENTERPRISE DIVISION.—The
Microenterprise Technical and Operations Office of each
Federal banking agency shall—
(1) facilitate the creation and financing of
microenterprises by—
(A) collecting information relating to
microenterprises, including the ownership char-
acteristics of microenterprises and the perform-
ance of microenterprises by industry;
(B) providing such information without
charge to interested persons; and
(C) generally serving as a clearinghouse
for information relating to microenterprises;
and
(2) monitor and provide assistance to the
microenterprise divisions established pursuant to
section 34 of the Federal Deposit Insurance Act.
(a) MICROENTERPRISE DEFINED.—As used in this
section, the term ‘‘microenterprise’’ means any commer-
cial enterprise with 5 or fewer employees, 1 or more of
whom own the enterprise.