IIB 
110TH CONGRESS 
1ST SESSION H. R. 3020 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 5, 2007 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
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, 
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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 report-
ing, 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, manage-
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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— 
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(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. 
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‘‘(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. 
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‘‘(7) MICROENTREPRENEUR.—The term ‘micro-
entrepreneur’ means the owner or developer of a 
microenterprise. 
‘‘(8) MICROENTERPRISE.—The term ‘micro-
enterprise’ 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 ORGA-
NIZATION OR PROGRAM.—The term ‘microenterprise 
development 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 serv-
ices 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 re-
cent data available from the Bureau of the Census. 
The Administrator shall revise annually (or at any 
shorter interval the Administrator determines to be 
feasible and desirable) the poverty line. The required 
revision shall be accomplished by multiplying the of-
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ficial poverty line by the percentage change in the 
Consumer Price Index for All Urban Consumers 
during the annual or other interval immediately pre-
ceding the time at which the revision is made. 
‘‘(11) TRAINING
AND
TECHNICAL
ASSIST-
ANCE.—The term ‘training and technical assistance’ 
means services and support provided to disadvan-
taged entrepreneurs, such as assistance for the pur-
pose of enhancing business planning, marketing, 
management, financial management skills, and as-
sistance for the purpose of accessing financial serv-
ices. 
‘‘(12) VERY LOW-INCOME PERSON.—The term 
‘very low-income person’ means having an income, 
adjusted for family size, of not more than 150 per-
cent of the poverty line. 
‘‘(b) ESTABLISHMENT OF PROGRAM.—The Adminis-
trator shall establish a microenterprise technical assist-
ance and capacity building grant program to provide as-
sistance 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 assist-
ance to disadvantaged entrepreneurs; 
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‘‘(2) to provide training and capacity building 
services to microenterprise development organiza-
tions and programs and groups of such organiza-
tions to assist 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 
technical assistance programs for disadvantaged en-
trepreneurs; 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 or-
ganization shall be— 
‘‘(1) a nonprofit microenterprise development 
organization 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 organiza-
tion or program that is accountable to a local com-
munity, working in conjunction with a State or local 
government or Indian tribe; or 
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‘‘(4) an Indian tribe acting on its own, if the 
Indian tribe can certify that no private organization 
or program referred to in this paragraph exists with-
in its jurisdiction. 
‘‘(e) ALLOCATION OF ASSISTANCE; SUBGRANTS.— 
‘‘(1) ALLOCATION OF ASSISTANCE.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall allocate assistance from the Administra-
tion 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 ben-
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efit very low-income persons, including those resid-
ing on Indian reservations. 
‘‘(3) SUBGRANTS AUTHORIZED.— 
‘‘(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 
recipients include both large and small microenter-
prise organizations, serving urban, rural, and Indian 
tribal communities serving diverse populations. 
‘‘(5) PROHIBITION ON PREFERENTIAL CONSID-
ERATION
OF
CERTAIN
SBA
PROGRAM
PARTICI-
PANTS.—In making grants under this section, the 
Administrator shall ensure that any application 
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made by a qualified organization that is a partici-
pant in the program established under section 7(m) 
does not receive preferential consideration over ap-
plications from other 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 pro-
vided by the Administration. 
‘‘(2) SOURCES
OF
MATCHING
FUNDS.—Fees, 
grants, gifts, funds from loan sources, and in-kind 
resources of a grant recipient from public or private 
sources may be used to comply with the matching 
requirement in paragraph (1). 
‘‘(3) EXCEPTION.— 
‘‘(A) IN GENERAL.—In the case of an ap-
plicant for assistance under this section with se-
vere constraints on available sources of match-
ing funds, the Administrator may reduce or 
eliminate the matching requirement in para-
graph (1). 
‘‘(B) LIMITATION.—Not more than 10 per-
cent of the total funds made available from the 
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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). 
‘‘(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 assist-
ance under this section is used and to demonstrate 
compliance with the requirements of this section. 
‘‘(2) USER PROFILE INFORMATION.—The Ad-
ministrator shall require each qualified organization 
receiving assistance from the Administration under 
this section to compile such data, as is determined 
to be appropriate by the Administrator, on the gen-
der, race, ethnicity, national origin, or other perti-
nent information concerning individuals that utilize 
the services of the assisted organization to ensure 
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that targeted populations and low-income residents 
of investment areas are adequately served. 
‘‘(3) ACCESS TO RECORDS.—The Administrator 
shall have access on demand, for the purpose of de-
termining compliance with this section, to any 
records of a qualified organization that receives as-
sistance 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 finan-
cial condition, and its success in meeting per-
formance goals, in satisfying the terms and con-
ditions of its assistance agreement, and in com-
plying with other requirements of this section, 
in such form and manner as the Administrator 
shall specify. 
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‘‘(B) AVAILABILITY
OF
REPORTS.—The 
Administrator, after deleting or redacting any 
material as appropriate to protect privacy or 
proprietary interests, shall make such reports 
submitted under subparagraph (A) available for 
public inspection. 
‘‘(i) IMPLEMENTATION.—The Administrator shall, by 
regulation, establish such requirements as may be nec-
essary 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. 
Passed the House of Representatives September 4, 
2007. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
By JORGE E. SORENSEN, 
Deputy Clerk. 
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