Microloan Program Modernization Act of 2016

Bill: 114-s-2850
Sponsor: Sen. Fischer, Deb [R-NE]
Introduced: 2016-04-26 in the Senate
Policy area: Commerce
Subjects: Congressional oversight
Government lending and loan guarantees
Government studies and investigations
Performance measurement
Small business

Summary:
action_date: 2016-04-26
text: 

Microloan Program Modernization Act of 2016

 
This bill amends the Small Business Act to repeal the &quot;25/75&quot; 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 intensive marketing, management, and technical assistance grant funds they receive from the SBA to provide information and technical assistance to small business concerns that are their prospective borrowers.
 
The total amount of loans outstanding and committed to any particular intermediary (excluding outstanding grants) from the SBA business loan and investment fund shall be increased from $5 million to $6 million for the remaining years of the intermediary's participation in the program. 
 
The SBA 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.
 
 
The Government Accountability Office shall evaluate:
 
 
 SBA oversight of the microloan program, including oversight of participating intermediaries; and
 
the specific processes the SBA uses to ensure program compliance by participating intermediaries and overall microloan program performance. 
 
 
 

action_date: 2016-05-24
text: 

Microloan Program Modernization Act of 2016

 
(Sec. 3) This bill amends the Small Business Act, with respect to the Small Business Administration (SBA) Microloan Program (assisting low-income individuals to start and operate a small business), to increase from $5 million to $6 million the total amount of loans outstanding and committed to any particular intermediary (excluding outstanding grants) from the SBA business loan and investment fund for the remaining years of the intermediary's participation in the program.
 
(Sec. 4) The Microloan Program &quot;25/75&quot; rule is repealed, which permits SBA-designated microloan intermediary lenders to expend up to 25% of the intensive marketing, management, and technical assistance grant funds they receive from the SBA to provide information and technical assistance to small business concerns that are their prospective borrowers.
 
(Sec. 5) The SBA 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.
 
 
(Sec. 6) The Government Accountability Office shall evaluate:
 
 
 SBA oversight of the microloan program, including oversight of participating intermediaries; and
 
the specific processes the SBA uses to ensure program compliance by participating intermediaries and overall microloan program performance. 
 
 


Legislative actions:
action_date: 2016-07-13
text: By Senator Vitter from Committee on Small Business and Entrepreneurship filed written report. Report No. 114-301.
action_date: 2016-07-13
text: By Senator Vitter from Committee on Small Business and Entrepreneurship filed written report. Report No. 114-301.
action_date: 2016-05-24
text: Placed on Senate Legislative Calendar under General Orders. Calendar No. 485.
action_date: 2016-05-24
text: Committee on Small Business and Entrepreneurship. Reported by Senator Vitter with amendments. Without written report.
action_date: 2016-05-24
text: Committee on Small Business and Entrepreneurship. Reported by Senator Vitter with amendments. Without written report.
action_date: 2016-05-11
text: Committee on Small Business and Entrepreneurship. Ordered to be reported with amendments favorably.
action_date: 2016-04-26
text: Read twice and referred to the Committee on Small Business and Entrepreneurship.
action_date: 2016-04-26
text: Introduced in Senate