Microloan Modernization Act of 2015

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Microloan Modernization Act of 
2015''.

SEC. 2. DEFINITIONS.

    In this Act--
            (1) the term ``intermediary'' has the meaning given that 
        term in section 7(m)(11) of the Small Business Act (15 U.S.C. 
        636(m)(11)); and
            (2) the term ``microloan program'' means the program 
        established under section 7(m) of the Small Business Act (15 
        U.S.C. 636(m)).

SEC. 3. MICROLOAN INTERMEDIARY LENDING LIMIT INCREASED.

    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. WAIVERS OF 25/75 RULE.

    Section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 
636(m)(4)(E)) is amended by adding at the end the following:
                            ``(iii) Waiver.--
                                    ``(I) In general.--The 
                                Administrator shall by rule, after a 
                                notice and comment period of not less 
                                than 60 days, establish a process by 
                                which an intermediary may apply for and 
                                the Administrator may grant a waiver 
                                from the requirements of clause (i).
                                    ``(II) Contents.--The rule required 
                                under subclause (I) shall--
                                            ``(aa) require any 
                                        applicant for a waiver to--

                                                    ``(AA) specify how 
                                                the applicant will use 
                                                the additional 
                                                technical assistance; 
                                                and

                                                    ``(BB) provide 
                                                assurance, in a form 
                                                provided for by the 
                                                Administrator in the 
                                                rule, that the 
                                                intermediary will have 
                                                sufficient funds to 
                                                provide technical 
                                                assistance to all 
                                                borrowers of the 
                                                intermediary; and

                                            ``(bb) incorporate any 
                                        delegation of the authority of 
                                        the Administrator to approve 
                                        waivers to any appropriate 
                                        subsidiary official.''.

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 ``(including lines of credit)'' 
after ``short-term''.

SEC. 6. 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 repayment 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 not more than $10,000, the 
                        repayment term shall be not more than 6 years; 
                        and
                            ``(ii) in the case of a loan made by an 
                        intermediary of more than $10,000, the 
                        repayment term shall be not more than 10 
                        years.''.

SEC. 7. 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 conduct a study and 
submit to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives a report on--
            (1) the operations (including services provided, structure, 
        size, and area of operation) of a representative sample of--
                    (A) intermediaries that are eligible to participate 
                in the microloan program and that do participate; and
                    (B) intermediaries (including those operated for 
                profit, operated as non-profits, and those affiliated 
                with a United States institution of higher learning) 
                that are eligible to participate in the microloan 
                program and that do not participate;
            (2) the reasons why intermediaries described in paragraph 
        (1)(B) choose not to participate in the microloan program;
            (3) recommendations on how to encourage increased 
        participation in the microloan program by intermediaries 
        described in paragraph (1)(B); and
            (4) recommendations on how to decrease the costs associated 
        with participation in the microloan program for eligible 
        intermediaries.

Summary: .  Microloan Modernization Act of 2015 (Sec. 2) This bill amends the Small Business Act with respect to the rule under the Small Business Administration (SBA) Microloan Program (assisting low-income individuals to start and operate a small business) that permits SBA-designated microloan intermediary lenders to expend up to 25% of the grant funds they receive from the SBA to provide information and technical assistance to small business concerns that are their prospective borrowers. (Sec. 3) The total amount of loans outstanding and committed to any particular intermediary (excluding outstanding grants) from the SBA business loan and investment fund is increased from $5 million to $6 million for the remaining years of the intermediary's participation in the program.  (Sec. 4) The SBA must establish a process by which these microloan intermediaries may apply for, and the SBA may grant, a waiver of this 25/75 allocation. This rule shall require any waiver applicant to:  specify how it will use the additional technical assistance, and make assurances that the intermediary will have sufficient funds to provide technical assistance to all of the intermediary's borrowers.  (Sec. 5) An eligible intermediary may include lines of credit among the short-term, fixed rate loans it makes to startup, newly established, and growing small business concerns from SBA funds made available to the intermediary for working capital and the acquisition of materials, supplies, furniture, fixtures, and equipment. (Sec. 6) The SBA may not impose limitations on the repayment term of a loan by an intermediary to a small business or entrepreneur. This repayment term, however, may not exceed:  6 years for a loan of $10,000 or less, or 10 years for a loan greater than $10,000.  (Sec. 7) The Government Accountability Office shall:  compare the operations of a representative sample of eligible intermediaries that participate in the microloan program and of eligible intermediaries that do not, study the reasons why the latter do not participate, recommend how to encourage increased participation by intermediaries in the microloan program, and  recommend how to decrease the associated costs for intermediary participation.