110TH CONGRESS 
1ST SESSION H. R. 3020 
AN ACT 
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,
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 report-
ing, such as the payment activity of the borrower on 
the loan.’’.
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, manage-
ment, and technical assistance to its bor-
rowers.’’. 
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 Invest-
ment 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: 
‘‘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 organi-
zation or program, for the purpose of enhancing its 
ability to provide training and services to disadvan-
taged entrepreneurs. 
‘‘(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 
‘collabo-
rative’ 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-
tion, as defined in or established pursuant to the 
Alaska Native Claims Settlement Act, which is rec-
ognized as eligible for the special programs and serv-
ices provided by the United States to Indians be-
cause 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 great-
er of— 
‘‘(i) 80 percent of the area median in-
come; or 
‘‘(ii) 80 percent of the statewide non-
metropolitan area median income.