Small Business Act

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SMALL BUSINESS ACT

(1)

(A)

§ 7(rn)( 1)(A) to
§ 7(rn)( I)(A)(iv)

PURPOSES. The purposes of the Microloan Program are-

(i)22i to assist women, low-income, veteran (\\'ithin the
meaning of such term under section 3(q»),222and minority entrepreneursand business
owners, and other such individuals possessing the capability to operate successful business
concerns; and
(ii)
to assist small business concerns in those areas
suffering from a lack of credit due to economic downturns;
(iii) to establish a microloan program to be administered by
the Small Business Administration-0)
to make loans to eligible intermediaries to
enable such intermediaries to provide small-scale loans. particularly loans in amounts
averaging not more than $10,000,~~3to startup, newly established. or growing small business
concerns for working capital or thc acquisition of materials. supplies, or equipment~
(II)
to make grants to eligible intermediaries that
totrether with non-Federal matching funds. will enable such intermediaries to provide
in~ensive marketing, management. and technical assistance to microloan borro\Vers~
(III)
to make grants to eligible nonprofit entitics that,
totrether with non-federal matching funds. will enable such entities to provide intensive
m;rkcting, managcment, and technical assistance to assist low-income cntrepreneurs and
other low-income individuals obtain private sector financing f()r their businesses, with or
without loan guarantees; and

(IV) to report to the Committees on Small Business
of the Senate and the House of Representatives on the effectiveness of the microloan
program and the advisability and feasibility of implementing such a program; and
Welfare-to-

(ivl24 to establish a welfare-to-work microloan initiative,
which shall be administered by the Administration, in order to test the feasibility of

work
initiative.

2~1Paragraph7(m)(I)(A)(i) rewrinen slightly by § 113(a)(I)(A)ofPL 102-366.approved Sept. 4. 1992 (106 Stat. 989). Section
114or PL 102-366providesthat "[N]OIlaterthan 45 days after the date of enactmentof this Act, the Small Business
Administrationshall promulgate interim tinalregulations to implement the amcndmentsmade by this subtitle."
222 The reference to veterans was added by § 403 of P.L 106-50. approved August 17, 1999(113 Stat. 246).
223Theclausewithin the commas added by § 113(a)(J)(B) of PI. 102-366,approved Sept. 4, 1992(106 Stat. 989). The amount
was changedfrom $7,500 by § 2! 0(a)(2) ofP.L. 106-554.approved Dec. 21.2000 (114 Stat.2763).
224Newclause 7(m)(1)(A)(iv)added by § 202(a)(1)(C) ofP.L. 105-] 35. approved Dec. 2. ]997 (1 ] I Stat. 2598).

93
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(Rev. 10)

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subparagraph (B) to individuals who are receiving assistance under the State program funded
under part A of title IV of the Social SecurityAct (42 D.S.C. 601 et seq.), or under any
comparable State funded means tested program of assistance for low-income individuals, in
order to adequately assist those individuals in-

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(1)

establishing small businesses; and

(II)

eliminating their dependence on that assistance.

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