PRIME Act

SECTION 1. PROVISION OF TECHNICAL ASSISTANCE TO MICROENTERPRISES.

    Title I of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4701 et seq.) is amended by adding 
at the end the following new subtitle:

    ``Subtitle C--Microenterprise Technical Assistance and Capacity 
                            Building Program

``SEC. 171. SHORT TITLE.

    ``This subtitle may be cited as the `Program for Investment in 
Microentrepreneurs Act of 1999', also referred to as the `PRIME Act'.

``SEC. 172. DEFINITIONS.

    ``For purposes of this subtitle--
            ``(1) the term `Administrator' has the same meaning as in 
        section 103;
            ``(2) the term `capacity building services' means services 
        provided to an organization that is, or is in the process of 
        becoming a microenterprise development organization or program, 
        for the purpose of enhancing its ability to provide training 
        and services to disadvantaged entrepreneurs;
            ``(3) the term `collaborative' means 2 or more nonprofit 
        entities that agree to act jointly as a qualified organization 
        under this subtitle;
            ``(4) the term `disadvantaged entrepreneur' means a 
        microentrepreneur that is--
                    ``(A) a low-income person;
                    ``(B) a very low-income person; or
                    ``(C) an entrepreneur that lacks adequate access to 
                capital or other resources essential for business 
                success, or is economically disadvantaged, as 
                determined by the Administrator;
            ``(5) the term `Fund' has the same meaning as in section 
        103;
            ``(6) the term `Indian tribe' has the same meaning as in 
        section 103;
            ``(7) the term `intermediary' means a private, nonprofit 
        entity that seeks to serve microenterprise development 
        organizations and programs as authorized under section 175;
            ``(8) the term `low-income person' has the same meaning as 
        in section 103;
            ``(9) the term `microentrepreneur' means the owner or 
        developer of a microenterprise;
            ``(10) the term `microenterprise' 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;
            ``(11) the term `microenterprise development organization 
        or program' means a nonprofit entity, or a program administered 
        by such an entity, including community development corporations 
        or other nonprofit development organizations and social service 
        organizations, that provides services to disadvantaged 
        entrepreneurs or prospective entrepreneurs;
            ``(12) the term `training and technical assistance' means 
        services and support provided to disadvantaged entrepreneurs or 
        prospective entrepreneurs, such as assistance for the purpose 
        of enhancing business planning, marketing, management, 
        financial management skills, and assistance for the purpose of 
        accessing financial services; and
            ``(13) the term `very low-income person' means having an 
        income, adjusted for family size, of not more than 150 percent 
        of the poverty line (as defined in section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2), 
        including any revision required by that section).

``SEC. 173. ESTABLISHMENT OF PROGRAM.

    ``The Administrator shall establish a microenterprise technical 
assistance and capacity building grant program to provide assistance 
from the Fund in the form of grants to qualified organizations in 
accordance with this subtitle.

``SEC. 174. USES OF ASSISTANCE.

    ``A qualified organization shall use grants made under this 
subtitle--
            ``(1) to provide training and technical assistance to 
        disadvantaged entrepreneurs;
            ``(2) to provide training and capacity building services to 
        microenterprise development organizations and programs and 
        groups of such organizations 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 entrepreneurs; and
            ``(4) for such other activities as the Administrator 
        determines are consistent with the purposes of this subtitle.

``SEC. 175. QUALIFIED ORGANIZATIONS.

    ``For purposes of eligibility for assistance under this subtitle, a 
qualified organization 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 entrepreneurs;
            ``(2) an intermediary;
            ``(3) a microenterprise development organization or program 
        that is accountable to a local community, working in 
        conjunction with a State or local government or Indian tribe; 
        or
            ``(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 within its jurisdiction.

``SEC. 176. ALLOCATION OF ASSISTANCE; SUBGRANTS.

    ``(a) Allocation of Assistance.--
            ``(1) In general.--The Administrator shall allocate 
        assistance from the Fund under this subtitle to ensure that--
                    ``(A) activities described in section 174(1) are 
                funded using not less than 75 percent of amounts made 
                available for such assistance; and
                    ``(B) activities described in section 174(2) are 
                funded using not less than 15 percent of amounts made 
                available for such assistance.
            ``(2) Limit on individual assistance.--No single 
        organization or entity may receive more than 10 percent of the 
        total funds appropriated under this subtitle in a single fiscal 
        year.
    ``(b) Targeted Assistance.--The Administrator shall ensure that not 
less than 50 percent of the grants made under this subtitle are used to 
benefit very low-income persons, including those residing on Indian 
reservations.
    ``(c) Subgrants Authorized.--
            ``(1) In general.--A qualified organization receiving 
        assistance under this subtitle may provide grants using that 
        assistance to qualified small and emerging microenterprise 
        organizations and programs, subject to such rules and 
        regulations as the Administrator determines to be appropriate.
            ``(2) Limit on administrative expenses.--Not more than 7.5 
        percent of assistance received by a qualified organization 
        under this subtitle may be used for administrative expenses in 
        connection with the making of subgrants under paragraph (1).
    ``(d) Diversity.--In making grants under this subtitle, the 
Administrator shall ensure that grant recipients include both large and 
small microenterprise organizations, serving urban, rural, and Indian 
tribal communities and racially and ethnically diverse populations.

``SEC. 177. MATCHING REQUIREMENTS.

    ``(a) In General.--Financial assistance under this subtitle shall 
be matched with funds from sources other than the Federal Government on 
the basis of not less than 50 percent of each dollar provided by the 
Fund.
    ``(b) 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 
subsection (a).
    ``(c) Exception.--
            ``(1) In general.--In the case of an applicant for 
        assistance under this subtitle with severe constraints on 
        available sources of matching funds, the Administrator may 
        reduce or eliminate the matching requirements of subsection 
        (a).
            ``(2) Limitation.--Not more than 10 percent of the total 
        funds made available from the Fund in any fiscal year to carry 
        out this subtitle may be excepted from the matching 
        requirements of subsection (a), as authorized by paragraph (1) 
        of this subsection.

``SEC. 178. APPLICATIONS FOR ASSISTANCE.

    ``An application for assistance under this subtitle shall be 
submitted in such form and in accordance with such procedures as the 
Fund shall establish.

``SEC. 179. RECORDKEEPING.

    ``The requirements of section 115 shall apply to a qualified 
organization receiving assistance from the Fund under this subtitle as 
if it were a community development financial institution receiving 
assistance from the Fund under subtitle A.

``SEC. 180. AUTHORIZATION.

    ``In addition to funds otherwise authorized to be appropriated to 
the Fund to carry out this title, there are authorized to be 
appropriated to the Fund to carry out this subtitle--
            ``(1) $15,000,000 for fiscal year 2000;
            ``(2) $25,000,000 for fiscal year 2001;
            ``(3) $30,000,000 for fiscal year 2002; and
            ``(4) $35,000,000 for fiscal year 2003.

``SEC. 181. IMPLEMENTATION.

    ``The Administrator shall, by regulation, establish such 
requirements as may be necessary to carry out this subtitle.''.

SEC. 2. ADMINISTRATIVE EXPENSES.

    Section 121(a)(2)(A) of the Riegle Community Development and 
Regulatory Improvement Act of 1994 (12 U.S.C. 4718(a)(2)(A)) is 
amended--
            (1) by striking ``$5,550,000'' and inserting 
        ``$6,100,000''; and
            (2) in the first sentence, by inserting before the period 
        ``, including costs and expenses associated with carrying out 
        subtitle C''.

SEC. 3. CONFORMING AMENDMENTS.

    Section 104(d) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4703(d)) is amended--
            (1) in paragraph (2)--
                    (A) by striking ``15'' and inserting ``17'';
                    (B) in subparagraph (G)--
                            (i) by striking ``9'' and inserting ``11'';
                            (ii) by redesignating clauses (iv) and (v) 
                        as clauses (v) and (vi), respectively; and
                            (iii) by inserting after clause (iii) the 
                        following:
                            ``(iv) 2 individuals who have expertise in 
                        microenterprises and microenterprise 
                        development;''; and
            (2) in paragraph (4), in the first sentence, by inserting 
        before the period ``and subtitle C''.

Summary: Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to add to title I a new subtitle C, which may be cited as the Program for Investment in Microentrepreneurs Act of 1999 (or PRIME Act).  Directs the Administrator of the Community Development Financial Institutions Fund (Administrator) to establish a microenterprise technical assistance and capacity building program to provide Fund grants to qualified nonprofit organizations to: (1) provide training and technical assistance to disadvantaged entrepreneurs; (2) provide training and capacity building services to help microenterprise development organizations and programs develop microenterprise training and services; and (3) aid in researching and developing the best practices in the field of microenterprise and technical assistance programs for disadvantaged entrepreneurs. Prohibits the use of grant amounts to make loans of any kind.  Sets forth an allocation formula for such assistance and for grants benefitting very low-income persons, including those residing on Indian reservations. 
Authorizes a qualified organization to provide subgrants to small and emerging microenterprise entities.  Instructs the Administrator to employ selection criteria that provide  positive consideration to applications by qualified organizations participating in the Microloan program established under the Small Business Act.  Mandates matching funds from non-Federal sources. 
Requires the Administrator to report to certain congressional committees on the enterprise technical assistance and capacity building program, including an evaluation of its effectiveness.  Authorizes appropriations. 
Requires the Administrator to: (1) submit regulations to the Administrator of the Small Business Administration (SBA) for review and comment; and (2) enter into a memorandum of understanding with the SBA Administrator providing that the program under this Act and the Microloan program under the Small Business Act will be implemented in conjunction and coordination  with one another. Prohibits the Fund Administrator from making any grant under this Act before reaching accord on such memorandum of understanding.