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H.R. 6291House116th Congress (2019-2021)In Committee

Microloan Emergency Assistance Act of 2020

Sponsored by Andy KimRep. Andy Kim (D-NJ)
Introduced March 19, 2020

AI-Generated Summary

Updated April 14, 2026 at 11:35 AM UTC

The Microloan Emergency Assistance Act of 2020 updates the Small Business Administration’s microloan program to help small businesses affected by COVID‑19. It raises the amount of money that can be loaned and granted, adds new incentives for lenders to serve distressed and rural areas, temporarily relaxes technical‑assistance funding rules, and extends loan repayment terms. The changes apply to the SBA’s network of intermediary lenders and the small businesses they serve.

Key Provisions

  • Increases the total amount of microloan program funding that can be made to intermediaries to $10 million, plus an additional $4.5 million in any remaining years.
  • Creates new grant eligibility so an intermediary can receive a grant equal to 5 % of its outstanding loan balance if it meets certain criteria, such as lending at least 25 % of its loans to businesses in economically distressed areas, keeping average loan size at $10,000 or less, or serving rural areas with at least 25 % of its portfolio.
  • Adds a grant formula that, when sufficient appropriations are available, provides each intermediary a grant of 25 %–30 % of its outstanding loan balance.
  • Limits the program to a competitive pool of no more than 300 intermediaries.
  • Temporarily waives the requirement for non‑federal matching funds and lifts limits on technical‑assistance spending for the period up to September 30, 2021.
  • Extends the repayment period for new and existing microloans to up to eight years through September 30, 2021; after that date the term reverts to seven years or another term set by the SBA administrator.
  • Sets higher annual funding levels for FY 2021‑2025: $80 million for technical‑assistance grants and $110 million for direct loans.
  • Authorizes additional FY 2020 appropriations of $50 million for technical‑assistance grants and $7 million for direct loans.
  • Provides a one‑time reduction of the 2021 funding caps to $7 million and $3 million respectively.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Small Business.

Small Business Committee

March 19, 2020

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HouseIntro Referral

Introduced in House

March 19, 2020

HouseIntro Referral

Referred to the House Committee on Small Business.

Small Business Committee

March 19, 2020

Bill Text

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Introduced in HouseIssued March 19, 2020

I

116th CONGRESS

2d Session

H. R. 6291

IN THE HOUSE OF REPRESENTATIVES

March 19, 2020

Mr. Kim introduced the following bill; which was referred to the Committee on Small Business

A BILL

To amend the microloan program of the Small Business Adminstration in response to COVID-19, and for other purposes.

1.

Short title

This Act may be cited as the Microloan Emergency Assistance Act of 2020.

2.

Recovery assistance for microbusinesses

(a)

Purpose

The purpose of this section is to allow lenders to deploy more capital, give borrowers more time to repay, increase rural lending, and cut technical assistance red tape.

(b)

Loans to intermediaries

(1)

In general

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended—

(A)

in paragraph (3)(C)—

(i)

by striking and $6,000,000 and inserting $10,000,000, in the aggregate,; and

(ii)

by inserting before the period at the end the following: , and $4,500,000 in any of those remaining years;

(B)

in paragraph (4)—

(i)

in subparagraph (A), by striking subparagraph (C) each place that term appears and inserting subparagraphs (C) and (G);

(ii)

in subparagraph (C), by amending clause (i) to read as follows:

(i)

In general

In addition to grants made under subparagraph (A) or (G), each intermediary shall be eligible to receive a grant equal to 5 percent of the total outstanding balance of loans made to the intermediary under this subsection if—

(I)

the intermediary provides not less than 25 percent of its loans to small business concerns located in or owned by one or more residents of an economically distressed area; or

(II)

the intermediary has a portfolio of loans made under this subsection—

(aa)

that averages not more than $10,000 during the period of the intermediary's participation in the program; or

(bb)

of which not less than 25 percent is serving rural areas during the period of the intermediary’s participation in the program.

; and

(iii)

by adding at the end the following:

(G)

Grant amounts based on appropriations

In any fiscal year in which the amount appropriated to make grants under subparagraph (A) is sufficient to provide to each intermediary that receives a loan under paragraph (1)(B)(i) a grant of not less than 25 percent of the total outstanding balance of loans made to the intermediary under this subsection, the Administration shall make a grant under subparagraph (A) to each intermediary of not less than 25 percent and not more than 30 percent of that total outstanding balance for the intermediary.

; and

(C)

by striking paragraph (7) and inserting the following:

(7)

Program funding for microloans

Under the program authorized by this subsection, the Administration may fund, on a competitive basis, not more than 300 intermediaries.

.

(2)

Amendment in 2021

Effective on October 1, 2021, section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended—

(A)

by striking $10,000,000 and by inserting $7,000,000; and

(B)

by striking $4,500,000 and inserting $3,000,000.

(c)

Temporary waiver of technical assistance grants matching requirements and flexibility on pre- and post-Loan assistance

During the period beginning on the date of enactment of this Act and ending on September 30, 2021, the Administration shall waive—

(1)

the requirement to contribute non-Federal funds under section 7(m)(4)(B) of the Small Business Act (15 U.S.C. 636(m)(4)(B)); and

(2)

the limitation on amounts allowed to be expended to provide information and technical assistance under clause (i) of section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 636(m)(4)(E)) and enter into third-party contracts to provide technical assistance under clause (ii) of such section 7(m)(4)(E).

(d)

Temporary duration of loans to borrowers

(1)

In general

During the period beginning on the date of enactment of this Act and ending on September 30, 2021, the duration of a loan made by an eligible intermediary under section 7(m) of the Small Business Act (15 U.S.C. 636(m))—

(A)

to an existing borrower may be extended to not more than 8 years; and

(B)

to a new borrower may be not more than 8 years.

(2)

Reversion

On and after October 1, 2021, the duration of a loan made by an eligible intermediary to a borrower under section 7(m) of the Small Business Act (15 U.S.C. 636(m)) shall be 7 years or such other amount established by the Administrator.

(e)

Program levels

Section 20 of the Small Business Act (15 U.S.C. 631 note) is amended by adding at the end the following:

(h)

Microloan program

For each of fiscal years 2021 through 2025, the Administration is authorized to make—

(1)

$80,000,000 in technical assistance grants, as provided in section 7(m); and

(2)

$110,000,000 in direct loans, as provided in section 7(m).

.

(f)

Authorization of appropriations

In addition to amounts provided under the Consolidated Appropriations Act, 2020 (Public Law 116–93) for the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)), there is authorized to be appropriated for fiscal year 2020, to remain available until expended—

(1)

$50,000,000 to provide technical assistance grants under such section 7(m); and

(2)

$7,000,000 to provide direct loans under such section 7(m).