IIB 
111TH CONGRESS 
1ST SESSION H. R. 3737 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 9, 2009 
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. 
This Act may be cited as the ‘‘Small Business Micro-
lending Expansion Act of 2009’’. 
SEC. 2. MICROLOAN CREDIT BUILDING INITIATIVE. 
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 
an intermediary making a loan to a borrower under 
this subsection, under which the intermediary shall 
provide to the major credit reporting agencies the in-
formation about the borrower, both positive and neg-
ative, that is relevant to credit reporting, such as the 
payment activity of the borrower on the loan. Such 
process shall allow an intermediary the option of 
providing information to the major credit reporting 
agencies through the Administration or independ-
ently.’’. 
SEC. 3. FLEXIBLE CREDIT TERMS. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)), as amended by this Act, is further amended— 
(1) in paragraph (1)(B)(i) by striking ‘‘short- 
term,’’; 
(2) in paragraph (6)(A) by striking ‘‘short- 
term,’’; and 
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(3) in paragraph (11)(B) by striking ‘‘short- 
term,’’. 
SEC. 4. INCREASED PROGRAM PARTICIPATION. 
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 of experi-
ence making microloans to startup, 
newly established, or growing small 
business concerns; and 
‘‘(ii) at least— 
‘‘(I) 1 year of experience pro-
viding, as an integral part of its 
microloan program, intensive mar-
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keting, management, and technical as-
sistance to its borrowers; or 
‘‘(II) 1 full-time employee who 
has not less than 1 year of experience 
providing intensive marketing, man-
agement, and technical assistance to 
borrowers.’’. 
SEC. 5. INCREASED LIMIT ON INTERMEDIARY BORROWING. 
Section 7(m)(3)(C) of the Small Business Act (15 
U.S.C. 636(m)(3)(C)) is amended— 
(1) by striking ‘‘$750,000’’ and inserting 
‘‘$1,000,000’’; 
(2) by striking ‘‘$3,500,000’’ and inserting 
‘‘$7,000,000’’; and 
(3) by adding at the end the following: ‘‘The 
Administrator may treat the amount of $7,000,000 
in this subparagraph as if such amount is 
$10,000,000 if the Administrator determines, with 
respect to an intermediary, that such treatment is 
appropriate.’’. 
SEC. 6. EXPANDED BORROWER EDUCATION ASSISTANCE. 
Section 7(m)(4)(E) of the Small Business Act (15 
U.S.C. 636(m)(4)(E)) is amended— 
(1) in clause (i) by striking ‘‘25 percent’’ and 
inserting ‘‘35 percent’’; and 
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(2) in clause (ii) by striking ‘‘25 percent’’ and 
inserting ‘‘35 percent’’. 
SEC. 7. YOUNG ENTREPRENEURS PROGRAM. 
Section 7(m)(4) of the Small Business Act (15 
U.S.C. 636(m)(4)) is amended by adding at the end the 
following: 
‘‘(G) 
YOUNG
ENTREPRENEURS
PRO-
GRAM.— 
‘‘(i) IN
GENERAL.—An intermediary 
that receives a grant under paragraph 
(1)(B)(ii) may establish a program for the 
geographic area served by such inter-
mediary that provides to young entre-
preneurs technical assistance regarding the 
following: 
‘‘(I) Establishing or operating a 
small business concern in the geo-
graphic area served by the inter-
mediary. 
‘‘(II) Acquiring or securing fi-
nancing to carry out the activities de-
scribed in subclause (I). 
‘‘(ii) YOUNG
ENTREPRENEUR
DE-
FINED.—For purposes of this subpara-
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graph, a young entrepreneur is an indi-
vidual who— 
‘‘(I) is 25 years of age or young-
er; and 
‘‘(II) has resided in the geo-
graphic area served by the inter-
mediary for not less than 2 years. 
‘‘(iii) GOOD FAITH EFFORT REQUIRE-
MENT.—If a young entrepreneur who re-
ceives technical assistance under this sub-
paragraph from an intermediary estab-
lishes or operates a small business concern, 
the young entrepreneur shall make a good 
faith effort to establish or operate such 
concern in the geographic area served by 
the intermediary. 
‘‘(iv) DEFERRED
REPAYMENT.—If a 
small business concern established or oper-
ated by a young entrepreneur receives a 
loan under this subsection, such concern 
may defer repayment on such loan for a 
period of not more than 6 months begin-
ning on the date that such concern receives 
the final disbursement of such loan.’’. 
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SEC. 8. INTEREST RATES AND LOAN SIZE. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)), as amended by this Act, is further amended— 
(1) 
in 
paragraph 
(3)(F)(iii) 
by 
striking 
‘‘$7,500’’ and inserting ‘‘$10,000’’; 
(2) in paragraph (6)(C)(i) by striking ‘‘$7,500’’ 
and inserting ‘‘$10,000’’; and 
(3) 
in 
paragraph 
(6)(C)(ii) 
by 
striking 
‘‘$7,500’’ and inserting ‘‘$10,000’’. 
SEC. 9. REPORTING REQUIREMENT. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(15) REPORTING
REQUIREMENT.—Not later 
than 90 days after the end of each fiscal year, the 
Administrator shall submit to the Committee on 
Small Business of the House of Representatives and 
the Committee on Small Business and Entrepre-
neurship of the Senate a report that includes, with 
respect to such fiscal year of the microloan program, 
the following: 
‘‘(A) The names and locations of each 
intermediary that received funds to make 
microloans or provide marketing, management, 
and technical assistance. 
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‘‘(B) The amounts of each loan and each 
grant provided to each such intermediary in 
such fiscal year and in prior fiscal years. 
‘‘(C) A description of the contributions 
from non-Federal sources of each such inter-
mediary. 
‘‘(D) 
The 
number 
and 
amounts 
of 
microloans made by each such intermediary to 
all borrowers and to each of the following: 
‘‘(i) Women entrepreneurs and busi-
ness owners. 
‘‘(ii) Low-income entrepreneurs and 
business owners. 
‘‘(iii) Veteran entrepreneurs and busi-
ness owners. 
‘‘(iv) Disabled entrepreneurs and busi-
ness owners. 
‘‘(v) Minority entrepreneurs and busi-
ness owners. 
‘‘(E) A description of the marketing, man-
agement, and technical assistance provided by 
each such intermediary to all borrowers and to 
each of the following: 
‘‘(i) Women entrepreneurs and busi-
ness owners. 
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to borrowers that receive financing under this sub-
section.’’. 
SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note) is amended by inserting after subsection (e) the fol-
lowing: 
‘‘(f) FISCAL YEARS 2010 AND 2011 WITH RESPECT 
TO SECTION 7(m).— 
‘‘(1) PROGRAM LEVELS.—For the programs au-
thorized by this Act, the Administration is author-
ized to make during each of fiscal years 2010 and 
2011— 
‘‘(A) $80,000,000 in technical assistance 
grants, as provided in section 7(m); 
‘‘(B) $110,000,000 in direct loans, as pro-
vided in section 7(m); and 
‘‘(C) $10,000,000 in interest assistance 
grants, as provided in section 7(m)(16). 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated such sums as 
may be necessary to carry out paragraph (1).’’. 
SEC. 12. REGULATIONS. 
Except as otherwise provided in this Act or in amend-
ments made by this Act, after an opportunity for notice 
and comment, but not later than 180 days after the date 
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of the enactment of this Act, the Administrator shall issue 
regulations to carry out this Act and the amendments 
made by this Act. 
Passed the House of Representatives November 7, 
2009. 
Attest: 
LORRAINE C. MILLER, 
Clerk. 
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