IIB 
114TH CONGRESS 
1ST SESSION H. R. 2670 
IN THE SENATE OF THE UNITED STATES 
JULY 14, 2015 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
AN ACT 
To amend the Small Business Act to provide for expanded 
participation in 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 ‘‘Microloan Moderniza-
tion Act of 2015’’. 
SEC. 2. WAIVERS OF 25/75 RULE. 
(a) WAIVER AUTHORIZED.—Section 7(m)(4)(E)(i) of 
the Small Business Act (15 U.S.C. 636(m)(4)(E)(i)) is 
amended by adding at the end the following: ‘‘The Admin-
istrator shall by rule establish a process by which inter-
mediaries may apply for and the Administrator may grant 
a waiver from the requirements of this clause.’’. 
(b) CONTENTS OF RULE.—In the rule required by 
the amendment made by subsection (a), the Administrator 
of the Small Business Administration shall require any ap-
plicant for a waiver to— 
(1) to specify how such applicant will use the 
additional technical assistance; and 
(2) provide assurance in a form provided for by 
the Administrator in the rule that the intermediary 
will have sufficient funds to provide technical assist-
ance to all of the intermediary’s borrowers. 
(c) RULEMAKING REQUIREMENTS.—The rule re-
quired by subsection (a) shall be promulgated after notice 
and the opportunity for comment of not less than 60 days. 
Such regulation shall be codified in the Code of Federal 
Regulations and shall incorporate any delegation of the 
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Administrator’s authority to approve waivers to any ap-
propriate subsidiary official. 
SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT IN-
CREASED. 
Section 7(m)(3)(C) of the Small Business Act (15 
U.S.C. 
636(m)(3)(C)) 
is 
amended 
by 
striking 
‘‘$5,000,000’’ and inserting ‘‘$6,000,000’’. 
SEC. 4. EXTENDED REPAYMENT TERMS. 
Section 7(m)(6) of the Small Business Act (15 
U.S.C. 636(m)(6)) is amended by adding at the end the 
following: 
‘‘(F) REPAYMENT TERMS FOR LOANS TO 
SMALL
BUSINESSES.—The Administrator may 
not impose limitations on the term for repay-
ment of a loan made by an intermediary to a 
small business concern or entrepreneur, except 
that— 
‘‘(i) in the case of a loan made by an 
intermediary of $10,000 or less, the repay-
ment term shall be not more than 6 years; 
and 
‘‘(ii) in the case of a loan greater than 
$10,000, the repayment term shall be not 
more than 10 years.’’. 
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SEC. 5. LINES OF CREDIT AUTHORIZED. 
Section 7(m)(6)(A) of the Small Business Act (15 
U.S.C. 636(m)(6)(A)) is amended by inserting after 
‘‘short-term’’ insert ‘‘(including lines of credit)’’. 
SEC. 6. GAO STUDY OF MICROENTERPRISE PARTICIPATION. 
Not later than 120 days after the date of enactment 
of this Act, the Comptroller General of the United States 
shall complete a study on and report to the Committee 
on Small Business of the House of Representatives on the 
following: 
(1) The operations (including services provided, 
structure, size, and area of operation) of a rep-
resentative sample of— 
(A) intermediaries that are eligible for par-
ticipation in the microloan program under sec-
tion 7(m) of the Small Business Act and that 
do participate; and 
(B) intermediaries (including those oper-
ated for profit, operated as nonprofits, and 
those affiliated with a United States institution 
of higher learning) that are so eligible and that 
do not participate. 
(2) The reasons why intermediaries described in 
paragraph (1)(B) choose not to participate. 
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(3) Recommendations on how to encourage in-
creased participation in the microloan program by 
intermediaries described in paragraph (1)(B). 
(4) Recommendations on how to decrease the 
costs associated with participation in the microloan 
program for eligible intermediaries. 
SEC. 7. OFFICE OF ADVOCACY ECONOMIC STUDY OF MAN-
DATORY SAVINGS REQUIREMENT. 
Not later than 120 days after the date of enactment 
of this Act, the Chief Counsel for Advocacy of the Small 
Business Administration shall submit to the Committee on 
Small Business of the House of Representatives a report 
on the economic impact of a mandatory savings require-
ment on business concerns eligible to participate in the 
microloan program under section 7(m) of the Small Busi-
ness Act, including on the benefits and costs of such a 
requirement and recommendations on implementation of 
such a requirement. 
Passed the House of Representatives July 13, 2015. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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