Section 1 Short title
This Act may be cited as the “Microloan Modernization Act of 2015”.
Microloan Modernization Act of 2015
A BILL
To amend the Small Business Act to provide for expanded participation in the microloan program, and for other purposes.
Sec. 2 Definitions
In this Act—
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
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—
the operations (including services provided, structure, size, and area of operation) of a representative sample of—
intermediaries that are eligible to participate in the microloan program and that do participate; and
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;
the reasons why intermediaries described in paragraph (1)(B) choose not to participate in the microloan program;
recommendations on how to encourage increased participation in the microloan program by intermediaries described in paragraph (1)(B); and
recommendations on how to decrease the costs associated with participation in the microloan program for eligible intermediaries.