IB 
Union Calendar No. 199 
110TH CONGRESS 
1ST SESSION H. R. 3020 
[Report No. 110–313] 
To amend the Small Business Act to improve the Microloan program, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 12, 2007 
Mr. CHABOT (for himself, Ms. VELA´ZQUEZ, Mr. CUELLAR, Ms. CLARKE, and 
Mr. LIPINSKI) introduced the following bill; which was referred to the 
Committee on Small Business 
SEPTEMBER 4, 2007 
Additional sponsor: Mr. BRALEY of Iowa 
SEPTEMBER 4, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on July 12, 2007] 
A BILL 
To amend the Small Business Act to improve the Microloan 
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, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Microloan Amendments and Modernization Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—MICROLOAN 
Sec. 101. Transmission of credit reporting information. 
Sec. 102. Flexible credit. 
Sec. 103. Intermediary eligibility requirements. 
Sec. 104. Average loan size. 
Sec. 105. Technical assistance. 
Sec. 106. Entrepreneurs with disabilities. 
TITLE II—PRIME 
Sec. 201. Short title. 
Sec. 202. PRIME. 
Sec. 203. Conforming repeal. 
TITLE I—MICROLOAN 
SEC. 101. TRANSMISSION OF CREDIT REPORTING INFORMA-
TION. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended by adding at the end the following: 
‘‘(14) CREDIT
REPORTING
INFORMATION.—The 
Administrator shall establish a process, for use by a 
lender making a loan to a borrower under this sub-
section, under which the lender provides to the major 
credit reporting agencies the information about the 
borrower that is relevant to credit reporting, such as 
the payment activity of the borrower on the loan.’’. 
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SEC. 102. FLEXIBLE CREDIT. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended, in each of paragraphs (1)(B)(i) and 
(11)(B), by striking ‘‘short-term,’’. 
SEC. 103. INTERMEDIARY ELIGIBILITY REQUIREMENTS. 
Section 7(m)(2) of the Small Business Act (15 U.S.C. 
636(m)(2)) is amended— 
(1) in subparagraph (A) by striking ‘‘paragraph 
(10)’’ and inserting ‘‘paragraph (11)’’; and 
(2) by amending subparagraph (B) to read as 
follows: 
‘‘(B) has— 
‘‘(i) at least— 
‘‘(I) 1 year of experience making 
microloans to startup, newly estab-
lished, or growing small business con-
cerns; or 
‘‘(II) 1 full-time employee who 
has not less than 3 years experience 
making microloans to startup, newly 
established, or growing small business 
concerns; and 
‘‘(ii) at least 1 year of experience pro-
viding, as an integral part of its microloan 
program, intensive marketing, management, 
and technical assistance to its borrowers.’’. 
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SEC. 104. AVERAGE LOAN SIZE. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended by striking ‘‘$7,500’’ and inserting 
‘‘$10,000’’ in each of the following places: paragraph 
(3)(F)(iii), paragraph (6)(C)(i), and paragraph (6)(C)(ii). 
SEC. 105. TECHNICAL ASSISTANCE. 
Section 7(m)(4)(E) of the Small Business Act (15 
U.S.C. 636(m)(4)(E)) is amended as follows: 
(1) PRE-LOAN.—Clause (i) is amended by strik-
ing ‘‘25 percent’’ and inserting ‘‘35 percent’’. 
(2) THIRD
PARTY
CONTRACTS.—Clause (ii) is 
amended by striking ‘‘25 percent’’ and inserting ‘‘35 
percent’’. 
SEC. 106. ENTREPRENEURS WITH DISABILITIES. 
Section 7(m)(1)(A)(i) of the Small Business Act (15 
U.S.C. 636(m)(1)(A)(i)) is amended by inserting ‘‘dis-
abled,’’ before ‘‘and minority entrepreneurs’’. 
TITLE II—PRIME 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Program for Investment 
in Microentrepreneurs Act’’ or the ‘‘PRIME Act’’. 
SEC. 202. PRIME. 
The Small Business Act is amended— 
(1) by redesignating section 37 as 99; and 
(2) by inserting after section 36 the following: 
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‘‘SEC. 37. PRIME PROGRAM. 
‘‘(a) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) CAPACITY BUILDING SERVICES.—The term 
‘capacity building services’ means services provided to 
an organization that is, or that is in the process of 
becoming, a microenterprise development organization 
or program, for the purpose of enhancing its ability 
to provide training and services to disadvantaged en-
trepreneurs. 
‘‘(2) 
DISADVANTAGED
ENTREPRENEUR.—The 
term ‘disadvantaged entrepreneur’ means a micro-
entrepreneur that is— 
‘‘(A) a very low-income person; 
‘‘(B) a low-income person; or 
‘‘(C) an entrepreneur that lacks adequate 
access to capital or other resources essential for 
business success, or is economically disadvan-
taged, as determined by the Administrator. 
‘‘(3) COLLABORATIVE.—The term ‘collaborative’ 
means 2 or more nonprofit entities that agree to act 
jointly as a qualified organization under this section. 
‘‘(4) INDIAN
TRIBE.—The term ‘Indian tribe’ 
means any Indian tribe, band, pueblo, nation, or 
other organized group or community, including any 
Alaska Native village or regional or village corpora-
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tion, as defined in or established pursuant to the 
Alaska Native Claims Settlement Act, which is recog-
nized as eligible for the special programs and services 
provided by the United States to Indians because of 
their status as Indians. 
‘‘(5) INTERMEDIARY.—The term ‘intermediary’ 
means a private, nonprofit entity that seeks to serve 
microenterprise development organizations and pro-
grams as authorized under subsection (d). 
‘‘(6) LOW-INCOME PERSON.—The term ‘low-in-
come person’ means a person having an income, ad-
justed for family size, of not more than— 
‘‘(A) for metropolitan areas, 80 percent of 
the area median income; and 
‘‘(B) for nonmetropolitan areas, the greater 
of— 
‘‘(i) 80 percent of the area median in-
come; or 
‘‘(ii) 80 percent of the statewide non-
metropolitan area median income. 
‘‘(7) MICROENTREPRENEUR.—The term ‘micro-
entrepreneur’ means the owner or developer of a 
microenterprise. 
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‘‘(8) MICROENTERPRISE.—The term ‘microenter-
prise’ 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. 
‘‘(9) MICROENTERPRISE DEVELOPMENT ORGANI-
ZATION OR PROGRAM.—The term ‘microenterprise de-
velopment 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 services 
to disadvantaged entrepreneurs. 
‘‘(10) POVERTY LINE.—The term ‘poverty line’ 
means the official poverty line defined by the Office 
of Management and Budget based on the most recent 
data available from the Bureau of the Census. The 
Administrator shall revise annually (or at any short-
er interval the Administrator determines to be feasible 
and desirable) the poverty line. The required revision 
shall be accomplished by multiplying the official pov-
erty line by the percentage change in the Consumer 
Price Index for All Urban Consumers during the an-
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nual or other interval immediately preceding the time 
at which the revision is made. 
‘‘(11) TRAINING AND TECHNICAL ASSISTANCE.— 
The term ‘training and technical assistance’ means 
services and support provided to disadvantaged entre-
preneurs, such as assistance for the purpose of en-
hancing business planning, marketing, management, 
financial management skills, and assistance for the 
purpose of accessing financial services. 
‘‘(12) VERY
LOW-INCOME
PERSON.—The term 
‘very low-income person’ means having an income, 
adjusted for family size, of not more than 150 percent 
of the poverty line. 
‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a microenterprise technical assistance 
and capacity building grant program to provide assistance 
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 assistance 
to disadvantaged entrepreneurs; 
‘‘(2) to provide training and capacity building 
services to microenterprise development organizations 
and programs and groups of such organizations to as-
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sist 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 tech-
nical assistance programs for disadvantaged entre-
preneurs; and 
‘‘(4) 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 orga-
nization shall be— 
‘‘(1) a nonprofit microenterprise development or-
ganization 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 organization 
or program that is accountable to a local community, 
working in conjunction with a State or local govern-
ment or Indian tribe; or 
‘‘(4) an Indian tribe acting on its own, if the In-
dian tribe can certify that no private organization or 
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program referred to in this paragraph exists within 
its jurisdiction. 
‘‘(e) ALLOCATION OF ASSISTANCE; SUBGRANTS.— 
‘‘(1) ALLOCATION OF ASSISTANCE.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall allocate assistance from the Administration 
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 benefit 
very low-income persons, including those residing on 
Indian reservations. 
‘‘(3) SUBGRANTS AUTHORIZED.— 
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‘‘(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 re-
cipients include both large and small microenterprise 
organizations, serving urban, rural, and Indian trib-
al communities serving diverse populations. 
‘‘(5) PROHIBITION ON PREFERENTIAL CONSIDER-
ATION OF CERTAIN SBA PROGRAM PARTICIPANTS.—In 
making grants under this section, the Administrator 
shall ensure that any application made by a qualified 
organization that is a participant in the program es-
tablished under section 7(m) does not receive pref-
erential consideration over applications from other 
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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 provided by the 
Administration. 
‘‘(2) SOURCES
OF
MATCHING
FUNDS.—Fees, 
grants, gifts, funds from loan sources, and in-kind re-
sources of a grant recipient from public or private 
sources may be used to comply with the matching re-
quirement in paragraph (1). 
‘‘(3) EXCEPTION.— 
‘‘(A) IN GENERAL.—In the case of an appli-
cant for assistance under this section with severe 
constraints on available sources of matching 
funds, the Administrator may reduce or elimi-
nate the matching requirement in paragraph (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 
requirement in paragraph (1), as authorized by 
subparagraph (A). 
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‘‘(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.— 
‘‘(1) IN GENERAL.—A qualified organization re-
ceiving assistance from the Administration under this 
section shall keep such records, for such periods as 
may be prescribed by the Administrator and nec-
essary to disclose the manner in which any assistance 
under this section is used and to demonstrate compli-
ance with the requirements of this section. 
‘‘(2) USER PROFILE INFORMATION.—The Admin-
istrator shall require each qualified organization re-
ceiving assistance from the Administration under this 
section to compile such data, as is determined to be 
appropriate by the Administrator, on the gender, 
race, ethnicity, national origin, or other pertinent in-
formation concerning individuals that utilize the 
services of the assisted organization to ensure that 
targeted populations and low-income residents of in-
vestment areas are adequately served. 
‘‘(3) ACCESS TO RECORDS.—The Administrator 
shall have access on demand, for the purpose of deter-
mining compliance with this section, to any records 
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of a qualified organization that receives assistance 
from the Administration under this section. 
‘‘(4) REVIEW.—Not less than annually, the Ad-
ministrator shall review the progress of each assisted 
organization in carrying out its strategic plan, meet-
ing its performance goals, and satisfying the terms 
and conditions of its assistance agreement. 
‘‘(5) REPORTING.— 
‘‘(A) ANNUAL
REPORTS.—The Adminis-
trator shall require each qualified organization 
receiving assistance from the Administration 
under this section to submit an annual report to 
the Administrator on its activities, its financial 
condition, and its success in meeting perform-
ance goals, in satisfying the terms and condi-
tions of its assistance agreement, and in com-
plying with other requirements of this section, in 
such form and manner as the Administrator 
shall specify. 
‘‘(B) AVAILABILITY OF REPORTS.—The Ad-
ministrator, after deleting or redacting any ma-
terial as appropriate to protect privacy or pro-
prietary interests, shall make such reports sub-
mitted under subparagraph (A) available for 
public inspection. 
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‘‘(i) IMPLEMENTATION.—The Administrator shall, by 
regulation, establish such requirements as may be necessary 
to carry out this section.’’. 
SEC. 203. CONFORMING REPEAL. 
Subtitle C (15 U.S.C. 6901 et seq.) of title I of the 
Riegle Community Development and Regulatory Improve-
ment Act of 1994 is repealed. 
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Union Calendar No. 199 
110TH CONGRESS 
1ST SESSION 
H. R. 3020 
[Report No. 110–313] 
A BILL 
To amend the Small Business Act to improve the 
Microloan program, and for other purposes. 
SEPTEMBER 4, 2007 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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