SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Lending for Jobs Act 
of 2012''.

SEC. 2. FOCUS ON CREDIT AVAILABILITY.

    (a) Mission Modification.--
            (1) In general.--In addition to the missions of the Federal 
        banking agencies included in other law, the Federal banking 
        agencies shall include focusing on--
                    (A) generally fostering and facilitating credit 
                availability to customers of insured depository 
                institutions, so long as that credit is provided in a 
                safe and sound manner; and
                    (B) generally assisting insured depository 
                institutions to provide such credit responsibly, so as 
                to encourage business development and employment, by 
                utilizing regulatory policies and procedures that 
                promote credit availability in a safe and sound manner.
            (2) Prohibition.--In carrying out the elements of their 
        missions added by paragraph (1), the Federal banking agencies 
        may not require or pressure insured depository institutions, 
        directly or indirectly, to provide particular kinds of credit 
        or on particular terms.
            (3) Implementation plan.--Not later than the end of the 
        120-day period beginning on the date of the enactment of this 
        Act, each Federal banking agency shall issue a report to the 
        Congress containing an implementation plan that addresses--
                    (A) how the agency will modify specific rules, 
                regulations, interpretative opinions, and other 
                policies of the agency to address the modification of 
                the agency's mission under paragraph (1);
                    (B) how and when those modifications will be put 
                into effect, but in no case later than the end of the 
                180-day period beginning on the date of the enactment 
                of this Act; and
                    (C) how examiners, other agency personnel who have 
                direct contact with insured depository institutions, 
                and the supervisors of those agency personnel are to be 
                trained and evaluated on their individual performance 
                on implementation of the modified mission.
            (4) Reports.--Not later than the end of the 360-day period 
        beginning on the date of the enactment of this Act, and 
        annually thereafter, each Federal banking agency shall issue a 
        report to the Congress on--
                    (A) a current assessment of the degree to which the 
                agency's policies foster and facilitate the 
                availability of credit to customers of insured 
                depository institutions in a safe and sound manner;
                    (B) the agency's progress on implementing the 
                modified mission;
                    (C) results of ongoing evaluation methods to assess 
                how the agency and its individual examiners, other 
                employees who have direct contact with insured 
                depository institutions, and supervisors of those 
                personnel have performed in implementing the modified 
                mission; and
                    (D) corrective measures the agency will take to 
                address deficiencies in accomplishing the requirements 
                described under subparagraphs (A) through (C).
    (b) Credit Availability Council.--There is hereby established the 
Credit Availability Council, which shall--
            (1) consist of the head of each Federal banking agency, or 
        a designee; and
            (2) coordinate the efforts of the Federal banking agencies 
        in--
                    (A) fostering and facilitating credit availability 
                to customers of insured depository institutions, so 
                long as that credit is provided in a safe and sound 
                manner; and
                    (B) assisting insured depository institutions to 
                provide such credit responsibly, so as to encourage 
                business development and employment.
    (c) Definitions.--For purposes of this section:
            (1) Federal banking agency.--The term ``Federal banking 
        agency'' means--
                    (A) the Board of Governors of the Federal Reserve 
                System;
                    (B) the Bureau of Consumer Financial Protection;
                    (C) the Federal Deposit Insurance Corporation;
                    (D) the Office of the Comptroller of the Currency; 
                and
                    (E) the National Credit Union Administration.
            (2) Insured depository institution.--The term ``insured 
        depository institution'' means--
                    (A) an insured depository institution, as such term 
                is defined under section 3(c)(2) of the Federal Deposit 
                Insurance Act (12 U.S.C. 1813(c)(2)); and
                    (B) an insured credit union, as such term is 
                defined under section 101 of the Federal Credit Union 
                Act (12 U.S.C. 1752).

SEC. 3. COMMERCIAL REAL ESTATE LOAN LOSS AMORTIZATION.

    (a) In General.--For purposes of capital calculation under the 
Financial Institutions Examination Council's Consolidated Reports of 
Condition and Income, an insured depository institution with assets of 
less than $10,000,000,000 may choose to amortize any loss or write-
down, on a quarterly straight-line basis over the 7-year period 
beginning with the month in which such loss or write-down occurs, 
incurred with respect to--
            (1) a loan secured by commercial real estate; or
            (2) other real estate owned.
    (b) Effective Date.--The provisions of this section shall apply to 
capital calculations described under subsection (a) occurring after the 
date of the enactment of this Act for losses and write-downs that 
occurred--
            (1) on or after January 1, 2007; and
            (2) before the end of the 2-year period beginning on the 
        date of the enactment of this Act.
    (c) Disclosure on Consolidated Reports of Condition and Income.--
With respect to an insured depository institution choosing to make use 
of the amortization provided for under subsection (a), such institution 
shall, on the Financial Institutions Examination Council's Consolidated 
Reports of Condition and Income, disclose the difference between the 
amount of the institution's capital when calculated using such 
amortization and when calculated without using such amortization.
    (d) Reporting on Prior Losses and Write-downs.--An insured 
depository institution that chooses to make use of the amortization 
provided for under subsection (a) with respect to losses and write-
downs occurring prior to the date of the enactment of this Act shall do 
so by making a one-time adjustment to the institution's Consolidated 
Reports of Condition and Income.
    (e) Definitions.--For purposes of this section:
            (1) Insured depository institution.--The term ``insured 
        depository institution'' shall have the meaning given such term 
        under section 3(c)(2) of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(c)(2)).
            (2) Other real estate owned.--The term ``other real estate 
        owned'' shall have the meaning given such term under section 
        34.81 of title 12, Code of Federal Regulations.

SEC. 4. INCLUSION OF LOAN LOSS RESERVES IN COMPUTATION OF CAPITAL 
              RESERVES.

    (a) In General.--The appropriate Federal banking agencies shall 
issue regulations to permit an insured depository institution to 
include all of such institution's allowance for loan and lease losses 
when computing such institution's capital for purposes of satisfying 
risk-based capital requirements.
    (b) Exception for Loss Classification.--Notwithstanding subsection 
(a), this section shall not apply to allowances for loans or lease 
losses where such loan or lease is classified as a ``loss''.
    (c) Rulemaking.--The appropriate Federal banking agencies shall 
issue regulations required under this section no later than the end of 
the 120-day period beginning on the date of the enactment of this Act.
    (d) Report to the Congress.--Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter, each appropriate 
Federal banking agency shall issue a report to the Congress on--
            (1) the implementation of the provisions of this section;
            (2) the impact of the provisions of this section on the 
        availability of lending; and
            (3) the impact of the provisions of this section on the 
        safety and soundness of insured depository institutions.
    (e) Definitions.--For purposes of this section:
            (1) Allowance for loan and lease losses.--
                    (A) In general.--The term ``allowance for loan and 
                lease losses'' means those general valuation allowances 
                that have been established through charges against 
                earnings to absorb losses on loans and lease financing 
                receivables.
                    (B) Exclusion.--The term ``allowance for loan and 
                lease losses'' does not include allocated transfer risk 
                reserves established pursuant to section 905 of the 
                International Lending Supervision Act of 1983 (12 
                U.S.C. 3904) and specific reserves created against 
                identified losses.
            (2) Appropriate federal banking agencies.--The term 
        ``appropriate Federal banking agencies'' shall have the meaning 
        given such term under section 3(q) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1813(q)).
            (3) Insured depository institution.--The term ``insured 
        depository institution'' shall have the meaning given such term 
        under section 3(c)(2) of the Federal Deposit Insurance Act (12 
        U.S.C. 1813(c)(2)).
Small Business Lending for Jobs Act of 2012 - Directs federal banking agencies to focus upon: (1) facilitating credit availability to customers of insured depository institutions, and (2) using regulatory policies and procedures that promote credit availability in a safe and sound manner in order to assist insured depository institutions to provide such credit and thus encourage business development and employment.

Prohibits federal banking agencies from requiring or pressuring insured depository institutions to provide particular kinds of credit or on particular terms.

Directs each federal banking agency to report to Congress an implementation plan addressing such foci.

Establishes the Credit Availability Council to coordinate federal banking agency efforts in facilitating credit availability to insured depository institution customers.

Authorizes an insured depository institution with assets of less than $10 billion, for purposes of capital calculation under the Financial Institutions Examination Council's Consolidated Reports of Condition and Income, to choose to amortize any loss or write-down, on a quarterly straight-line basis over a seven-year period, which it has incurred with respect to: (1) a loan secured by commercial real estate, or (2) other real estate owned.

Directs the federal banking agencies to promulgate regulations permitting an insured depository institution to include all of its allowance for loan and lease losses when computing capital for purposes of satisfying risk-based capital requirements.
To include focusing on credit availability in the mission of each Federal banking regulator, to provide insured depository institutions with certain amortization authority and authority to include allowances for loan and lease losses when calculating the institution's capital, and for other purposes.