MICROLOAN PROGRAM.

SEC. 201. MICROLOAN PROGRAM. (a) Loan Limits.— Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)) is amended by striking “$2,500,000” and inserting “$3,500,000”. (b) Loan Loss Reserve Fund.— Section 7(m)(3)(D) of the Small Business Act (15 U.S.C. 636(m)(3)(D)) is amended by striking clauses (i) and (ii), and inserting the following: “(i) during the initial 5 years of the intermediary’s participation in the program under this subsection, at a level equal to not more than 15 percent of the outstanding balance of the notes receivable owed to the intermediary; and “(ii) in each year of participation thereafter, at a level equal to not more than the greater of— 111 STAT. 2598 “(I) 2 times an amount reflecting the total losses of the intermediary as a result of participation in the program under this subsection, as determined by the Administrator on a case-by-case basis; or “(II) 10 percent of the outstanding balance of the notes receivable owed to the intermediary.”. (c) Authorization of Appropriations.— Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended— (1) in the subsection heading, by striking “Demonstration”; (2) by striking “Demonstration” each place that term appears; (3) by striking “demonstration” each place that term appears; and (4) in paragraph (12), by striking “during fiscal years 1995 through 1997” and inserting “during fiscal years 1998 through 2000”. (d) Technical Assistance Grants.— Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended— (1) in paragraph (4)(E)— (A) by striking “Each intermediary” and inserting the following: “(i) In general.— Each intermediary”; (B) by striking “15” and inserting “25”; and (C) by adding at the end the following: “(ii) Technical assistance.— An intermediary may expend not more than 25 percent of the funds received under paragraph (1)(B)(ii) to enter into third party contracts for the provision of technical assistance.”; and (2) in paragraph (5)(A)— (A) by striking “in each of the 5 years of the demonstration program established under this subsection,”; and (B) by striking “for terms of up to 5 years” and inserting “annually”.