WELFARE-TO-WORK MICROLOAN INITIATIVE.

SEC. 202. WELFARE-TO-WORK MICROLOAN INITIATIVE. (a) Initiative.— Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended— (1) in paragraph (1)(A)— (A) in clause (ii), by striking “and” at the end; (B) in clause (iii), by striking the period at the end and inserting “; and”; and (C) by adding at the end the following: “(iv) to establish a welfare-to-work microloan initiative, which shall be administered by the Administration, in order to test the feasibility of supplementing the technical assistance grants provided under clauses (ii) and (iii) of subparagraph (B) to individuals who are receiving assistance under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), or under any comparable State funded means tested program of assistance for low-income individuals, in order to adequately assist those individuals in— “(I) establishing small businesses; and 111 STAT. 2599 “(II) eliminating their dependence on that assistance.”; (2) in paragraph (4), by adding at the end the following: “(F) Supplemental grant.— “(i) In general.— The Administration may accept any funds transferred to the Administration from other departments or agencies of the Federal Government to make grants in accordance with this subparagraph and section 202(b) of the Small Business Reauthorization Act of 1997 to participating intermediaries and technical assistance providers under paragraph (5), for use in accordance with clause (iii) to provide additional technical assistance and related services to recipients of assistance under a State program described in paragraph (1)(A)(iv) at the time they initially apply for assistance under this subparagraph. “(ii) Eligible recipients; grant amounts.— In making grants under this subparagraph, the Administration may select, from among participating intermediaries and technical assistance providers described in clause (i), not more than 20 grantees in fiscal year 1998, not more than 25 grantees in fiscal year 1999, and not more than 30 grantees in fiscal year 2000, each of whom may receive a grant under this subparagraph in an amount not to exceed $200,000 per year. “(iii) Use of grant amounts.— Grants under this subparagraph— “(I) are in addition to other grants provided under this subsection and shall not require the contribution of matching amounts as a condition of eligibility; and “(II) may be used by a grantee— “(aa) to pay or reimburse a portion of child care and transportation costs of recipients of assistance described in clause (i), to the extent such costs are not otherwise paid by State block grants under the Child Care Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) or under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.); and “(bb) for marketing, management, and technical assistance to recipients of assistance described in clause (i). “(iv) Memorandum of understanding— Prior to accepting any transfer of funds under clause (i) from a department or agency of the Federal Government, the Administration shall enter into a Memorandum of Understanding with the department or agency, which shall— “(I) specify the terms and conditions of the grants under this subparagraph; and “(II) provide for appropriate monitoring of expenditures by each grantee under this subparagraph and each recipient of assistance described in clause (i) who receives assistance from a grantee 111 STAT. 2600under this subparagraph, in order to ensure compliance with this subparagraph by those grantees and recipients of assistance.”; (3) in paragraph (6), by adding at the end the following: “(E) Establishment of child care or transportation businesses.— In addition to other eligible small businesses concerns, borrowers under any program under this subsection may include individuals who will use the loan proceeds to establish for-profit or nonprofit child care establishments or businesses providing for-profit transportation services.”; (4) in paragraph (9)— (A) by striking the paragraph designation and paragraph heading and inserting the following: “(9) Grants for management, marketing, technical assistance, and related services.—” ; and (B) by adding at the end the following: “(C) Welfare-to-work microloan initiative.— Of amounts made available to carry out the welfare-to-work microloan initiative under paragraph (1)(A)(iv) in any fiscal year, the Administration may use not more than 5 percent to provide technical assistance, either directly or through contractors, to welfare-to-work microloan initiative grantees, to ensure that, as grantees, they have the knowledge, skills, and understanding of microlending and welfare-to-work transition, and other related issues, to operate a successful welfare-to-work microloan initiative.”; and (5) by (5) adding at the end the following: “(13) Evaluation of welfare-to-work microloan initiative.— On January 31, 1999, and annually thereafter, the Administration shall submit to the Committees on Small Business of the House of Representatives and the Senate a report on any monies distributed pursuant to paragraph (4)(F).”. (b) Transfer of Funds— (1) In general.— No funds are authorized to be appropriated or otherwise provided to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section), except by transfer from another department or agency of the Federal Government to the Administration in accordance with this subsection. (2) Limitation on amounts.— The total amount transferred to the Administration from other departments and agencies of the Federal Government to carry out the grant program under section 7(m)(4)(F) of the Small Business Act (15 U.S.C. 636(m)(4)(F)) (as added by this section) shall not exceed— (A) $3,000,000 for fiscal year 1998; (B) $4,000,000 for fiscal year 1999; and (C) $5,000,000 for fiscal year 2000.