Microloan Improvement Act of 2020
This bill revises the microloan program through which the
Specifically, the bill raises the limit on the aggregate amount for loans the SBA makes to an intermediary participating in the microloan program. Further, the bill (1) authorizes an intermediary to offer a line of credit to a small business, (2) increases the average amount for loans from an intermediary to participating small businesses that makes the intermediary eligible for a reduced interest rate on SBA loans, and (3) makes certain intermediaries eligible to receive a 5% technical assistance grant.
The bill also places limits on the repayment term for a microloan, and it prohibits the SBA from imposing any additional limitation on the term for repayment of a microloan.
The SBA must reserve 15% of new loan funds that are made available for disbursement as microloans to designated underutilized states and make the remaining 85% available for any state.
[NOTE: The contents of this legislative update are current as of
BILL NUMBER: 116th
CHAMBER OF ORIGIN:
For DETAILED LEGISLATIVE INFORMATION on H.R.6079, visit: https://www.congress.gov/bill/116th-congress/house-bill/6079
ACTIONS-TO-DATE (ordered by most recent first):
[*Note: Sponsors and co-sponsors are current as of
SUBJECTS: Administrative law and regulatory procedures, Business records, Credit and credit markets, Government information and archives, Government lending and loan guarantees, Interest, dividends, interest rates, Small business.