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Bill > HR2056


US HR2056

US HR2056
Microloan Modernization Act of 2017


summary

Introduced
04/06/2017
In Committee
06/15/2017
Crossed Over
07/25/2017
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Microloan Modernization Act of 2017 (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) SBA-designated microloan intermediary lenders may expend up to 50% (currently, 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.

AI Summary

This bill, the Microloan Modernization Act of 2017, amends the Small Business Act to increase the total amount of loans outstanding and committed to any particular microloan intermediary (an organization that provides microloans to low-income individuals to start or operate a small business) from $5 million to $6 million. It also allows microloan intermediary lenders to use up to 50% (instead of 25%) of their technical assistance grant funds from the Small Business Administration (SBA) to provide information and assistance to prospective borrowers. The bill also requires the SBA to study the operations of participating and non-participating microloan intermediaries, and the reasons for non-participation, in order to recommend ways to encourage increased participation and decrease costs. Additionally, the bill requires 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 (12)

Last Action

Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship. (on 07/25/2017)

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