Authority

SMALL BUSINESS ACT

(6)
TERMINATION.—The authority of the Administrator to make loans
under the Program shall terminate 3 years after the date of enactment of the Small Business Job
Creation and Access to Capital Act of 2010 [P.L. 111-240].
(m)

MICROLOAN PROGRAM
(1)

(A)

PURPOSES. The purposes of the Microloan Program are—

(i)
to assist women, low-income, veteran (within the meaning
of such term under section 3(q)), and minority entrepreneurs and 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)
Small Business Administration--

to establish a microloan program to be administered by the

(I)
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, to startup, newly established, or growing small business concerns for
working capital or the acquisition of materials, supplies, or equipment;
(II)
to make grants to eligible intermediaries that,
together with non-Federal matching funds, will enable such intermediaries to provide intensive
marketing, management, and technical assistance to microloan borrowers;
(III) to make grants to eligible nonprofit entities that,
together with non-Federal matching funds, will enable such entities to provide intensive
marketing, management, and technical assistance to assist low-income entrepreneurs and other
low-income individuals obtain private sector financing for 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
(iv)
to establish a welfare-to-work microloan initiative, which
shall be administered by the Administration, in order to test the feasibility of supplementing the
technical assistance grants provided under clauses (ii) and (iii) of subparagraph (B) to individuals
who are receiving assistance under the State program funded under part A of title IV of the
Social Security Act (42 U.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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(I)

establishing small businesses; and

(II)

eliminating their dependence on that assistance.

(B)
ESTABLISHMENT. There is established a microloan program,
under which the Administration may—
(i)
make direct loans to eligible intermediaries, as provided
under paragraph (3), for the purpose of making short-term, fixed interest rate microloans to
startup, newly established, and growing small business concerns under paragraph (6);
(ii)
in conjunction with such loans and subject to the
requirements of paragraph (4), make grants to such intermediaries for the purpose of providing
intensive marketing, management, and technical assistance to small business concerns that are
borrowers under this subsection; and
(iii) subject to the requirements of paragraph (5), make grants to
nonprofit entities for the purpose of providing marketing, management, and technical assistance
to low-income individuals seeking to start or enlarge their own businesses, if such assistance
includes working with the grant recipient to secure loans in amounts not to exceed $50,000 from
private sector lending institutions, with or without a loan guarantee from the nonprofit entity.
(2)
ELIGIBILITY FOR PARTICIPATION.—An intermediary shall be
eligible to receive loans and grants under subparagraphs (B)(i) and (B)(ii) of paragraph (1) if it—
(A)

meets the definition in paragraph (10); and

(B)
has at least 1 year of experience making microloans to startup,
newly established, or growing small business concerns and providing, as an integral part of its
microloan program, intensive marketing, management, and technical assistance to its borrowers.
(3)

LOANS TO INTERMEDIARIES.—
(A)

INTERMEDIARY APPLICATIONS.

(i)
IN GENERAL.—As part of its application for a loan, each
intermediary shall submit a description to the Administration of—
(I)

the type of businesses to be assisted;

(II)

the size and range of loans to be made;

(III)

the geographic area to be served and its economic

and unemployment characteristics;

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