H.R.2056 – Microloan Modernization Act of 2017

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Week ending July 28, 2017

H.R.2056 – Microloan Modernization Act of 2017


‘To assist small dollar borrowers, the Small Business Administration (SBA) offers the Microloan program, which was created in 1991 as a pilot program and was made permanent in 1997.’

‘Through the Microloan program, the SBA works with nonprofit lending intermediaries to make small dollar microloans of $50,000 or less. With an average loan of approximately $13,500, the Microloan program enhances a small dollar borrower’s access to capital. Beyond lending, the intermediary is also required to provide technical assistance and training to their borrowers.’

The purpose of H.R. 2056, the “Microloan Modernization Act of 2017,” is to amend the Small Business Act by granting microloan intermediaries greater flexibility in providing loans and technical assistance to small dollar borrowers. “H.R. 2056 would raise the amount the SBA may commit to an intermediary and raise the cap on the amount of grant funds that intermediaries can spend on pre-loan training and technical assistance for prospective borrowers” – cbo

‘H.R. 2056 raises the maximum lending volume a microloan intermediary has at any given time from $5 million to $6 million. Next, the legislation provides flexibility to the 25/75 Rule, which limits a microloan intermediary to using 25 percent of their SBA technical assistance grants on pre-loan assistance or on third-party contracts. By giving micro lender intermediaries more latitude with pre-loan assistance, small business startups will receive more comprehensive assistance during their infancy.’

‘H.R. 2056 directs the SBA to conduct a study on the usage of the program. Further, the legislation requires a Government Accountability Office (GAO) study to examine the oversight of the program.’

 (Full text of H.R. 2056 at congress.gov)

SponsorRep. Murphy, Stephanie N. [D-FL-7] (Introduced 04/06/2017

Status: Passed House /



On Passage: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote

House Amendments:

Motion to recommit:

Text of the motion:


On Passage:

Procedural Actions:

Senate Amendments:


Cost to the taxpayersCBO estimates that implementing H.R. 2056 would have no significant effect on the federal budget.

Pay-as-you-go requirements: pay-as-you-go procedures do not apply

Regulatory and Other Impact: H.R. 2056 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.

Dynamic Scoring:   CBO estimates that enacting H.R. 2056 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.

Tax Complexity:  Not applicable to this bill.

Earmark Certification:      Pursuant to clause 9 of rule XXI, H.R. 2056 does not contain any congressional earmarks, limited tax benefits or limited tariff benefits as defined in subsections (d), (e) or (f) of clause 9 of rule XXI of the Rules of the House.

Duplication of programs:    Pursuant to clause 3(c) of the rule XIII of the Rules of the House, no provision of H.R. 2056 establishes or reauthorizes a program of the federal government known to be duplicative of another federal program

Direct Rule-Making:      Pursuant to clause 3(c) of rule XIII of the Rules of the House, H.R. 2056 does not direct any rulemaking.

Advisory Committee Statement: H.R. 2056 does not establish or authorize the establishment of any new advisory committees as that term is defined in the Federal Advisory Committee Act, 5 U.S.C. App. 2.

Budget Authority: Data not available

Constitutional Authority:   Assumed.


More Bill Information:


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