H.R. 3737: Small Business Microlending Expansion Act of 2009

H.R. 3737

Small Business Microlending Expansion Act of 2009

Date
November 6, 2009 (111th Congress, 1st Session)

Staff Contact
Communications

Floor Situation

H.R. 3737 is expected to be considered under suspension of the rules, requiring a two-thirds majority for passage. The legislation was introduced by Rep. Brad Ellsworth (D-IN) on October 7, 2009. This bill was incorporated into H.R. 3854 which passed the House on October 29, 2009, by a vote of 389-32.

Bill Summary

H.R. 3737 authorizes such sums as necessary to make $80 million in technical assistance grants and $110 million in direct loans in Fiscal Year 2010 and 2011 under the SBA Microloan program. This program provides short-term loans of up to $35,000 for working capital and the purchase of supplies, inventory, and equipment. The bill also increases loan limits for intermediary lenders to $1 million for the first year of participation and $7 million in the remaining years. H.R. 3737 expands the eligibility for intermediary lenders so that lenders with no experience making microloans would be eligible to participate if one of its employees has at least three years of experience. Finally, the bill creates a Young Entrepreneurs program in the SBA to assist the development of new businesses by young people who remain in their local area. Repayment on such loans would be deferred for six months.

Cost

The Congressional Budget Office (CBO) has not produced a cost estimate for H.R. 3737.