IIB 
116TH CONGRESS 
2D SESSION 
H. R. 6078 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 15, 2020 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
AN ACT 
To amend the Small Business Act to increase transparency 
and to enhance the use of microloans in rural areas, 
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. 
This Act may be cited as the ‘‘Microloan Trans-
parency and Accountability Act of 2020’’. 
SEC. 
2. 
ASSISTANCE 
FOR 
INTERMEDIARIES 
SERVING 
RURAL AREAS. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended— 
(1) by amending paragraph (4)(C)(i) to read as 
follows: 
‘‘(i) Each intermediate shall be eligi-
ble to receive a grant equal to 5 percent of 
the total outstanding balance of loans 
made to the intermediary under this sub-
section, in addition to grants made under 
subparagraph (A), if the intermediary has 
either— 
‘‘(I) a portfolio of loans made 
under this subsection that averages 
not more than $10,000 during the pe-
riod of the intermediary’s participa-
tion in the program; 
‘‘(II) a portfolio of loans made 
under this subsection of which not 
less than 25 percent are made to 
small business concerns located in or 
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owned by one or more residents of an 
economically distressed area; or 
‘‘(III) a portfolio of loans made 
under this subsection of which not 
less than 25 percent is serving rural 
areas during the period of the 
intermediary’s participation in the 
program.’’; and 
(2) in paragraph (11)— 
(A) in subparagraph (C)(ii), by striking all 
after the semicolon and inserting ‘‘and’’; and 
(B) by striking all after subparagraph (C), 
and inserting the following: 
‘‘(D) the term ‘economically distressed 
area’, as used in paragraph (4), means a county 
or equivalent division of local government of a 
State in which the small business concern is lo-
cated, in which, according to the most recent 
data available from the Bureau of the Census, 
Department of Commerce, not less than 40 per-
cent of residents have an annual income that is 
at or below the poverty level.’’. 
SEC. 3. PORTFOLIO RISK ANALYSIS OF MICROLOANS. 
Section 7(m)(10) of the Small Business Act (15 
U.S.C. 636(m)(10)) is amended— 
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(1) by redesignating subparagraphs (A) through 
(F) as clauses (i) through (vi), respectively, and ad-
justing the margins accordingly; 
(2) by amending clause (iv), as so redesignated, 
to read as follows: 
‘‘(vi) the number, amount, and per-
centage of microloans made by inter-
mediaries to small business concerns— 
‘‘(I) that went into default in the 
previous year; and 
‘‘(II) that were charged off in the 
previous 
year 
by 
such 
inter-
mediaries;’’; 
(3) in clause (vi), as so redesignated, by strik-
ing ‘‘and’’ at the end; 
(4) by redesignating subparagraph (G) as 
clause (xviii), and adjusting the margin accordingly; 
(5) by striking ‘‘On November 1, 1995,’’ and all 
that follows through ‘‘the following:’’ and inserting 
the following: 
‘‘(A) IN
GENERAL.—Beginning on Feb-
ruary 1, 2021, and annually thereafter, the Ad-
ministrator shall submit to the Committee on 
Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business 
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of the House of Representatives, and make 
available to the public on the website of the Ad-
ministration, a report on the effectiveness of 
the microloan program during the fiscal year 
preceding the date of the report. Such report 
shall include—’’; 
(6) in subparagraph (A), as so designated, by 
inserting after clause (vi) the following new clauses: 
‘‘(vii) the number and type of enforce-
ment actions taken by the Administrator 
against noncompliant intermediaries; 
‘‘(viii) an analysis of compliance by 
intermediaries with the credit availability 
requirements of paragraph (3)(E) for loans 
in an amount greater than $20,000; 
‘‘(ix) the extent to which microloans 
are provided to small business concerns in 
rural areas; 
‘‘(x) the number of underserved bor-
rowers, as defined by the Administration, 
participating in the microloan program; 
‘‘(xi) the average rate of interest for 
each microloan; 
‘‘(xii) the average amount of fees 
charged for each microloan; 
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‘‘(xiii) the average size of each 
microloan, including— 
‘‘(I) the number of loans made in 
an amount greater than $20,000; and 
‘‘(II) 
the 
average 
size 
and 
charge-off rate of such loans; 
‘‘(xiv) the subsidy cost to the Admin-
istration; 
‘‘(xv) the number and percentage of 
microloans that were made to refinance 
other loans; 
‘‘(xvi) the number and percentage of 
microloans made to new program partici-
pants and the number and percentage of 
microloans made to previous program par-
ticipants; 
‘‘(xvii) the average amount of tech-
nical assistance grant monies spent on 
each loan; and’’; and 
(7) by adding at the end the following: 
‘‘(B) PRIVACY.—Each report submitted 
under subparagraph (A) shall not contain any 
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personally identifiable information of any bor-
rower.’’. 
Passed the House of Representatives September 14, 
2020. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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