Microloan Transparency and Accountability Act of 2021
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HR 1487 — Microloan Transparency and Accountability Act of 2021
Last action — Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
No card. One bill, free forever — alerts when it moves.
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✓Introduced
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✓In Committee
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✓Passed House
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Died in session
This bill died with 117th Congress. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Summary
Microloan Transparency and Accountability Act of 2021 This bill modifies reporting requirements related to the Small Business Administration's (SBA) disbursement of certain financial assistance. Specifically, the bill requires the SBA to report certain metrics related to the disbursement of microloans to small businesses, including (1) the number, amount, and percentage of such loans that went into default in the previous year; (2) the extent to which microloans are provided to small businesses in rural areas; and (3) the average size, rate of interest, and amount of fees charged for each microloan.
Bill Text
What changed in the latest version
6 added · 1 removedPlain-language change summary
The current version of the bill, H.R. 1487, indicates that it has been referred to the Senate Committee on Small Business and Entrepreneurship after being received and read twice. The earlier version, Engrossed in House, has been removed from the text. This change reflects the bill's progression to the Senate for further consideration.
1487 EngrossedReferred in HouseSenate (EH)](RFS)] <DOC> 117th CONGRESS 1st Session H.
1487 _______________________________________________________________________ ANIN ACTTHE ToSENATE amendOF theTHE SmallUNITED BusinessSTATES ActApril to19, increase2021 transparency,Received; and for other purposes.
read twice and referred to the Committee on Small Business and Entrepreneurship _______________________________________________________________________ AN ACT To amend the Small Business Act to increase transparency, and for other purposes.
Clerk.CHERYL L.
117thJOHNSON, CONGRESSClerk. 1st Session H.
R.
1487 _______________________________________________________________________ AN ACT To amend the Small Business Act to increase transparency, and for other purposes.
View plain text versions (3)
- Referred in Senate View text Current html April 19, 2021
- Engrossed Engrossed in House html April 15, 2021
- Introduced Introduced in House html March 02, 2021
Sections of law this bill changes
1 section in 1 lawFrom the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).
Aid to small business · 15 U.S.C. ch. 14A 1 section
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§ 636 Additional powers Amends
15 U.S.C. § 636 — at 636(m)(10)
The law today
(a) Loans to small business concerns; allowable purposes; qualified business; restrictions and limitations The Administration is empowered to the extent and in such amounts as provided in advance in appropriation Acts to make loans for plant acquisition, construction, conversion, or expansion, including the acquisition of land, material, supplies, equipment, and working capital, and to make loans to any qualified small business concern, including those owned by qualified Indian tribes, for purposes of this chapter. Such financings may be made either directly or in cooperation with banks or other financial institutions through agreements to participate on an immediate or deferred (guaranteed) basis. These powers shall be subject, however, to the following restrictions, limitations, and provisions: (1) In general.— (A) Credit elsewhere.— (i) In general.— The Administrator has the authority to direct, and conduct oversight for, the methods by which lenders determine whether a borrower is able to obtain credit elsewhere. No financial assistance shall be extended pursuant to this subsection if the applicant can obtain credit elsewhere. No immediate participation may be purchased unless it is shown that a deferred participation is not available; and no direct financing may be made unless it is shown that a participation is not available. (ii) Liquidity.— On and after October 1, 2015, the Administrator may not guarantee a loan under this subsection if the lender determines that the borrower is unable to obtain credit elsewhere solely because the liquidity of the lender depends upon the guaranteed portion of the loan being sold on the secondary market. (B) Background checks.— Prior to the approval of any loan made pursuant to this subsection, or section 503 of the Small Business Investment Act of 1958 [15 U.S.C. 697], the Administrator may verify the applicant’s criminal background, or lack thereof, through the best available means, including, if possible, use of the National Crime Information Center computer system at the Federal Bureau of Investigation. (C) Lending limits of lenders.— On and after October 1, 2015, the Administrator may not guarantee a loan under this subsection if the sole purpose for requesting the guarantee is to allow the lender to exceed the legal lending limit of the lender. (2) Level of participation in guaranteed loans.— (A) In general.— Except as provided in subparagraphs (B), (D), (E), and (F), in an agreement to participate in a loan on a deferred basis under this subsection (including a loan made under the Preferred Lenders Program), such participation by the Administration shall be equal to— (i) 75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or (ii) 85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000. (B) Reduced participation upon request.— (i) In general.— The guarantee percentage specified by subparagraph (A) for any loan under this subsection may be reduced upon the request of the participating lender. (ii) Prohibition.— The Administration shall not use the guarantee percentage requested by a participating lender under clause (i) as a criterion for establishing priorities in approving loan guarantee requests under this subsection. (C) Interest rate under preferred lenders program.— (i) In general.— The maximum interest rate for a loan guaranteed under the Preferred Lenders Program shall not exceed the maximum interest rate, as determined by the Administration, applicable to other loans guaranteed under this subsection. (ii) Export-import bank lenders.— Any lender that is participating in the Delegated Authority Lender Program of the Export-Import Bank of the United States (or any successor to the Program) shall be eligible to participate in the Preferred Lenders Program. (iii) Preferred lenders program defined.— For purpose...170 other bills also change this section · Follow it → Official text at uscode.house.gov ↗
Compared against current U.S. Code AI-generated reading aid — verify against the official bill.
The bill amends the Small Business Act to enhance transparency in the microloan program by requiring detailed annual reports from the Administrator.
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15 U.S.C. 636(m)(10)
On November 1, 1995, the following:→ In general.--Beginning on February 1, 2022, and annually thereafter, the Administrator shall submit to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business of the House of Representatives, and make available to the public on the website of the Administration, a report on the effectiveness of the microloan program during the fiscal year preceding the date of the report. Such report shall include--This change establishes a requirement for annual reports on the microloan program's effectiveness, enhancing transparency.
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15 U.S.C. 636(m)(10)
the number and type of enforcement actions taken by the Administrator against noncompliant intermediaries;
This addition mandates reporting on enforcement actions against intermediaries that do not comply with regulations.
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15 U.S.C. 636(m)(10)
an analysis of compliance by intermediaries with the credit availability requirements of paragraph (3)(E) for loans in an amount greater than $20,000;
This requires an analysis of how intermediaries meet credit availability standards for larger loans.
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15 U.S.C. 636(m)(10)
the extent to which microloans are provided to small business concerns in rural areas;
This change emphasizes the need to report on microloan distribution in rural areas.
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15 U.S.C. 636(m)(10)
the number of underserved borrowers, as defined by the Administration, participating in the microloan program;
This ensures reporting on the participation of underserved borrowers in the microloan program.
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15 U.S.C. 636(m)(10)
the average rate of interest for each microloan;
This mandates reporting of average interest rates for microloans, promoting transparency in costs.
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15 U.S.C. 636(m)(10)
the average amount of fees charged for each microloan;
This requires disclosure of average fees associated with microloans, enhancing cost transparency.
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15 U.S.C. 636(m)(10)
the average size of each microloan, including-- the number of loans made in an amount greater than $20,000; and the average size and charge-off rate of such loans;
This addition requires comprehensive reporting on the size and performance of larger microloans.
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15 U.S.C. 636(m)(10)
the subsidy cost to the Administration;
This mandates reporting on the financial subsidy costs associated with the microloan program.
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15 U.S.C. 636(m)(10)
the number and percentage of microloans that were made to refinance other loans;
This requires reporting on the percentage of microloans used for refinancing purposes.
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15 U.S.C. 636(m)(10)
the number and percentage of microloans made to new program participants and the number and percentage of microloans made to previous program participants;
This change adds a requirement to report participation rates of new versus returning borrowers.
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15 U.S.C. 636(m)(10)
the average amount of technical assistance grant monies spent on each loan;
This requires reporting on the investment in technical assistance associated with microloans.
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15 U.S.C. 636(m)(10)
Each report submitted under subparagraph (A) shall not contain any personally identifiable information of any borrower.
This ensures borrower privacy in the annual microloan reports.
Action History
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Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
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Considered as unfinished business. (consideration: CR H1834)
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Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 409 - 4 (Roll no. 115).(text: 04/14/2021 CR H1767)
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On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 409 - 4 (Roll no. 115). (text: 04/14/2021 CR H1767)
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Motion to reconsider laid on the table Agreed to without objection.
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Ms. Craig moved to suspend the rules and pass the bill.
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Considered under suspension of the rules. (consideration: CR H1767-1769)
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DEBATE - The House proceeded with forty minutes of debate on H.R. 1487.
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At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
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Introduced in House
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Introduced in House
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Referred to the House Committee on Small Business.
Sponsors
- Tim Burchett · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 546 not signed on
Sponsors (1)
- Burchett, Tim Republican
Co-sponsors (0)
None.
Not signed on (546)
546 members have not signed on to this bill.
Show all 546 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- What does HR 1487 do?
- Microloan Transparency and Accountability Act of 2021 This bill modifies reporting requirements related to the Small Business Administration's (SBA) disbursement of certain financial assistance. Specifically, the bill requires the SBA to report certain metrics related to the disbursement of microloans to small businesses, including (1) the number, amount, and percentage of such loans that went into default in the previous year; (2) the extent to which microloans are provided to small businesses in rural areas; and (3) the average size, rate of interest, and amount of fees charged for each microloan.
- Who sponsors HR 1487?
- HR 1487 is sponsored by Burchett, Tim (Republican).
- What is the current status of HR 1487?
- This bill died with 117th Congress. It reached “Passed House” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track HR 1487?
- Track HR 1487 free on One Click Politics — get push/email alerts when it moves.
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