RECOVERY ASSISTANCE UNDER THE MICROLOAN PROGRAM.

SEC. 329. RECOVERY ASSISTANCE UNDER THE MICROLOAN PROGRAM. (a) 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 1 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) in paragraph (11)— (i) in subparagraph (C)(ii), by striking all after the semicolon and inserting “and”; and (ii) by striking all after subparagraph (C) and inserting the following: “(D) the term ‘economically distressed area’, as used in paragraph (4), means a county or equivalent division of local government of a State in which the small business concern is located, in which, according to the most recent data available from the Bureau of the Census, Department of Commerce, not less than 40 percent of residents have an annual income that is at or below the poverty level.” . (2) [15 U.S.C. 636 note] Prospective amendment.—Effective on October 1, 2021, section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 636(m)(3)(C)), as amended by paragraph (1)(A), 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”. (b) [15 U.S.C. 636 note] 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 for the provision of technical assistance under clause (ii) of such section 7(m)(4)(E). (c) [15 U.S.C. 636 note] 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. (d) Funding.—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).” . (e) Authorization of Appropriations.—In addition to amounts provided under the Consolidated Appropriations Act, 2020 (Public Law 116-93; 133 Stat. 2317) for the program established under section 7(m) of the Small Business Act (15 U.S.C. 636(m)) and amounts provided for fiscal year 2021 for that program, there is authorized to be appropriated for fiscal year 2021, 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).