PUBLIC LAW 102-140—OCT. 28, 1991 105 STAT. 827 (h) Section 7 of the Small Business Act (15 U.S.C. 636) is amended by adding at the end the following new subsection: "(m) MiCROLOAN DEMONSTRATION PROGRAM. — "(1)(A) PURPOSES.—The purposes of the Microloan Demonstration Program are— "(i) to assist women, low-income, and minority entrepreneurs, business owners, and other individuals possessing the capability to operate successful business concerns; "(ii) to assist small business concerns in those areas suffering from a lack of credit due to economic downturns; and "(iii) to establish a microloan demonstration program to be administered by the Small Business Administration— "(I) to make loans to eligible intermediaries to enable such intermediaries to provide small-scale loans to startup, newly established, or growing small business concerns for working capital or the acquisition of materials, supplies, or equipment; "(II) to make grants to eligible intermediaries that, together with non-Federal matching funds, will enable such intermediaries to provide intensive marketing, management, and technical assistance to microloan borrowers; "(III) to make grants to eligible nonprofit entities that, together with non-Federal matching funds, will enable such entities to provide intensive marketing, management, and technical assistance to assist lowincome entrepreneurs and other low-income individuals obtain private sector financing for their businesses, with or without loan guarantees; and "(IV) to report to the Committees on Small Business of the Senate and the House of Representatives on the effectiveness of the microloan program and the advisability and feasibility of implementing such a program nationwide. "(B) ESTABLISHMENT.— T here is established a microloan demonstration program, under which the Administration may— "(i) make direct loans to eligible intermediaries, as provided under paragraph (3), for the purpose of making shortterm, fixed interest rate microloans to startup, newly established, and growing small business concerns under paragraph (6); "(ii) in conjunction with such loans and subject to the requirements of paragraph (4), make grants to such intermediaries for the purpose of providing intensive marketing, management, and technical assistance to small business concerns that are borrowers under this subsection; and "(iii) subject to the requirements of paragraph (5), make grants to nonprofit entities for the purpose of providing marketing, management, and technical assistance to lowincome individuals seeking to start or enlarge their own businesses, if such assistance includes working with the grant recipient to secure loans in amounts not to exceed $15,000 from private sector lending institutions, with or without a loan guarantee from the nonprofit entity. Women. Disadvantaged. Minorities. Small business. Grants.