To amend the Small Business Act to provide for expanded participation in the microloan demonstration program.

Amends the Small Business Act with respect to the microloan demonstration program (the provision of business loans to certain small businesses and women, low-income, and minority entrepreneurs) to: (1) authorize the Administrator of the Small Business Administration to make guaranteed loans under such program on an immediate or deferred basis; and (2) allow agencies or instrumentalities of a municipal government to be considered quasi-governmental economic development entities under the Act and therefore able to act as microloan intermediaries.