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Microloan Improvements: Lower Costs, Longer Repayments for Small Businesses

This new law aims to simplify access to microloans for small businesses by reducing costs and extending repayment periods. This will give entrepreneurs greater flexibility in managing their finances and make it easier to obtain support for their business development. The changes also include improved credit data reporting, which may affect borrowers' credit history.
Key points
Increase in the maximum amount intermediaries can lend from $7,500 to $10,000, potentially providing more support for small businesses.
Authorization for short-term lines of credit, offering greater flexibility in managing immediate financial needs.
Extension of maximum microloan repayment terms to 7 years for amounts up to $10,000 and 10 years for amounts over $10,000, reducing monthly burdens.
Requirement for intermediaries to report borrower payment activity to major credit reporting agencies, impacting credit history.
Changes in microloan fund allocation, reserving 15% for designated underutilized states to ensure more equitable access to funding.
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Additional Information
Print number: 118_HR_10241
Sponsor: Rep. Velázquez, Nydia M. [D-NY-7]
Process start date: 2024-11-21
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Microloan Improvement Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_10241.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-11-21.

What are the main provisions?

Key points include:

  • Increase in the maximum amount intermediaries can lend from $7,500 to $10,000, potentially providing more support for small businesses.
  • Authorization for short-term lines of credit, offering greater flexibility in managing immediate financial needs.
  • Extension of maximum microloan repayment terms to 7 years for amounts up to $10,000 and 10 years for amounts over $10,000, reducing monthly burdens.
  • Requirement for intermediaries to report borrower payment activity to major credit reporting agencies, impacting credit history.
  • Changes in microloan fund allocation, reserving 15% for designated underutilized states to ensure more equitable access to funding.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Velázquez, Nydia M. [D-NY-7].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Small Business.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Economy