Page:United States Statutes at Large Volume 105 Part 1.djvu/858

 105 STAT. 830 PUBLIC LAW 102-140—OCT. 28, 1991 "(A) GRANT AMOUNTS. — Subject to the requirements of subparagraph (B), in each of the 5 years of the demonstration program estabhshed under this subsection, the Administration may make not more than 2 grants, each in amounts not to exceed $125,000 for the purposes specified in subparagraph (B)(iii) of paragraph (1). "(B) CONTRIBUTION. — As a condition of any grant made under subparagraph (A), the Administration shall require the grant recipient to contribute an amount equal to 20 percent of the amount of the grant, obtained solely from non-Federal sources. In addition to cash or other direct funding, the contribution may include indirect costs or inkind contributions paid for under non-Federal programs. " (6) LOANS TO SMALL BUSINESS CONCERNS FROM ELIGIBLE INTERMEDIARIES. — "(A) IN GENERAL. —An eligible intermediary shall make short-term, fixed rate loans to startup, newly established, and growing small business concerns from the funds made available to it under subparagraph (B)(i) of paragraph (1) for working capital and the acquisition of materials, supplies, furniture, fixtures, and equipment. "(B) PORTFOLIO REQUIREMENT. — To the extent practicable, each intermediary that operates a microloan program under this subsection shall maintain a microloan portfolio with an average loan size of not more than $10,000. "(C) INTEREST LIMIT. —Notwithstanding any provision of the laws of any State or the constitution of any State pertaining to the rate or amount of interest that may be charged, taken, received or reserved on a loan, the maximum rate of interest to be charged on a microloan funded under this subsection shall be not more than 4 percentage points above the prime lending rate, as identified by the Administration and published in the Federal Register on a quarterly basis. "(D) REVIEW RESTRICTION.— The Administration shall not review individual microloans made by intermediaries prior to approval. "(7) PROGRAM FUNDING.— "(A) FIRST YEAR PROGRAMS.— In the first year of the demonstration program, the Administration is authorized to fund, on a competitive basis, not more than 35 microloan programs, including not less than 1 program to be located in each of the following States: Arkansas, Illinois, Iowa, Kentucky, Maine, Minnesota, New Hampshire, New York, North Carolina, Pennsylvania, South Carolina, and Wisconsin. "(B) EXPANDED PROGRAMS.— In the second year of the demonstration program, the Administration is authorized to fund up to 25 additional microloan programs. "(C) STATE LIMITATIONS. —In no case shall a State— "(i) be awarded more than 2 microloan programs in any year of the demonstration program; "(ii) receive more than $1,000,000 to fund such programs in such State's first year of participation; or "(iii) receive more than $1,500,000 to fund such programs in any succeeding year of such State's participation.

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