Section 7(m) of the Small Business Act, (15 U.S.C. 636(m)) and 13 CFR 120, subpart G, set forth the legal authority and framework for the Microloan Program. Section 329 of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (Pub. L. 116-260), enacted December 27, 2020, amended the Small Business Act to: (1) add the definition of Economically Distressed Area; (2) add the definition of Rural Area; (3) increase the total amount an Intermediary may borrow under the Microloan Program per year to $3,000,000, and in aggregate to $7,000,000; (4) increase the maximum term of a microloan to seven years; (5) expand eligibility for Intermediaries to receive a bonus grant to Intermediaries that provide not less than 25 percent of their Microloans to small businesses located in or owned by one or more residents of an economically distressed area and to Intermediaries with a Microloan Portfolio of which at least 25 percent is serving rural areas; and (6) provide a new minimum grant amount of 25 percent of an Intermediary’s total outstanding SBA loan balance (subject to appropriation) and increase the maximum grant amount to 30 percent of an Intermediary’s total outstanding SBA loan balance. SBA will amend sections 120.701, 120.706, 120.707, and 120.712 of its regulations to incorporate these changes.