The Microloan Improvement Act of 2024 makes several changes to the Small Business Administration's microloan program, which provides small loans to entrepreneurs and small business owners. The bill increases the loan threshold that qualifies for certain interest rate benefits from $7,500 to $10,000 and allows microloans to be structured as fixed-rate lines of credit, giving borrowers more flexibility. It also extends repayment periods, allowing loans of $10,000 or less to be repaid over up to seven years and larger microloans over up to ten years, which should reduce monthly payment burdens on small business borrowers. The legislation reserves 15 percent of new microloan funds for underutilized states during the first half of each fiscal year and requires the SBA to issue regulations defining which states qualify for this set-aside. Additionally, the bill requires intermediary lenders to report borrower payment information to credit agencies and mandates annual public reporting on how the program distributes funds equitably across regions.
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