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US S526

Microloan Modernization Act of 2018


summary

Introduced
03/02/2017
In Committee
03/14/2018
Crossed Over
07/19/2018
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Microloan Modernization Act of 2018 This bill amends the Small Business Act to repeal the "25/75" 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.

AI Summary

This bill, the Microloan Modernization Act of 2018, amends the Small Business Act to make several changes to the Small Business Administration (SBA) Microloan Program, which helps low-income individuals start and operate small businesses. The bill increases the total amount of loans that can be outstanding and committed to any particular microloan intermediary (the organizations that provide microloans) from $5 million to $6 million. It also requires the SBA to study the operations of participating and non-participating microloan intermediaries, understand why some intermediaries choose not to participate, and provide recommendations on how to encourage more participation and reduce the costs associated with the program. Additionally, the bill directs the Government Accountability Office to evaluate the SBA's oversight of the microloan program and the processes used to ensure compliance and overall program performance.

Committee Categories

Business and Industry

Sponsors (8)

Last Action

By Senator Risch from Committee on Small Business and Entrepreneurship filed written report. Report No. 115-452. (on 12/20/2018)

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