Microloan Improvement Act of 2024

Bill: 118-hr-10241
Sponsor: full_name: Rep. Velázquez, Nydia M. [D-NY-7]
Introduced: 2024-11-21
Policy area: Commerce
Latest action: action_date: 2024-11-21
text: Referred to the House Committee on Small Business.

Summaries:

tv_txt: I 118th CONGRESS 2d Session H. R. 10241 IN THE HOUSE OF REPRESENTATIVES November 21, 2024 Ms. Velázquez introduced the following bill; which was referred to the Committee on Small Business A BILL To amend the Small Business Act to optimize the operations of the microloan program, lower costs for small business concerns and intermediary participants in the program, and for other purposes.

1. Short title This Act may be cited as the Microloan Improvement Act of 2024 . 2. Interest rate for certain intermediaries Section 7(m)(3)(F)(iii) of the Small Business Act ( 15 U.S.C. 636(m)(3)(F)(iii) ) is amended by striking $7,500 and inserting $10,000 . 3. 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 striking fixed rate loans and inserting fixed-rate loans (including extensions of a short-term, fixed-rate line of credit) . 4. Extended repayment terms (a) In general 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 (i) Limitation on repayments term The repayment term for a loan made under this paragraph shall not be more than— (I) in the case of a loan made by an intermediary of $10,000 or less, 7 years; and (II) in the case of a loan made by an intermediary of greater than $10,000, 10 years. (ii) No additional limitations The Administrator may not impose any additional limitation on the term for repayment of a loan made by an intermediary under this paragraph. . (b) Technical amendment Section 329(c) of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ( Public Law 116–260 ; 134 Stat. 2042 15 U.S.C. 636 note) is repealed. 5. Program funding for microloans (a) In general Section 7(m) of the Small Business Act ( 15 U.S.C. 636(m) ) is amended— (1) in paragraph (7)(B)— (A) by amending clause (i) to read as follows: (i) Allocation Subject to the availability of appropriations and for the first 2 quarters of a fiscal year, of the total amount of new loan funds made available for award under this subsection in such fiscal year, the Administrator shall— (I) reserve 15 percent of such funds for award to designated underutilized States; and (II) make the remaining 85 percent of such funds available for award in any State. ; and (B) in clause (ii), by striking to carry out and all that follows through the period at the end and inserting the following: under clause (i)(I) remains unexpended, the Administrator may make that portion available for award in any State or designated underutilized State. ; and (2) in paragraph (11)— (A) in clause (ii) of subparagraph (C), by striking rural and all that follows through the end of such clause and inserting rural; ; (B) in subparagraph (D), by striking the period at the end and inserting ; and ; and (C) by adding at the end the following new subparagraph: (E) the term State means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa. . (b) Rulemaking Not later than 180 days after the date of the enactment of this Act, the Administrator of the Small Business Administration shall issue regulations to define the term designated underutilized State , as used in section 7(m)(7)(B) of the Small Business Act ( 15 U.S.C. 636(m)(7)(B) ), as added by this section. 6. Credit reporting information The Administrator of the Small Business Administration shall issue rules establishing a process under which an intermediary that makes a loan to a borrower under section 7(m) of the Small Business Act ( 15 U.S.C. 636(m) ) shall be required to provide the major credit reporting agencies with information about the borrower relevant to credit reporting, such as the borrower’s payment activity on the loan. 7. Report regarding equitable distribution Section 7(m)(8) of the Small Business Act ( 15 U.S.C. 636(m)(8) ) is amended— (1) by striking In approving and inserting the following: (A) In general In approving ; and (2) by adding at the end the following: (B) Annual report The Administrator shall include in the report submitted under paragraph (10), and make publicly available on the website of the Administration, information on how the Administration has complied with the requirements of subparagraph (A). .