A bill to establish a temporary Working Capital Express loan guarantee program for small business concerns, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Working Capital Express Act of 
2010''.

SEC. 2. WORKING CAPITAL EXPRESS PROGRAM.

    (a) Program Established.--
            (1) Working capital express program.--Section 7(a)(31) of 
        the Small Business Act (15 U.S.C. 636(a)(31)) is amended by 
        adding at the end the following:
                    ``(G) Working capital express program in response 
                to economic crisis.--
                            ``(i) Loan guarantees.--The Administrator 
                        may guarantee loans for working capital under 
                        the Express Loan Program made by lenders 
                        designated in accordance with clause (iii)(I) 
                        to small business concerns that have been in 
                        business for not less than 2 years before the 
                        date on which the small business concern 
                        submits an application for a loan under this 
                        subparagraph.
                            ``(ii) Loan terms.--
                                    ``(I) Amount.--Notwithstanding 
                                subparagraph (D), the Administrator may 
                                guarantee a loan of not more than 
                                $750,000 under this subparagraph.
                                    ``(II) Guarantee rate.--
                                Notwithstanding subparagraph (A)(iii), 
                                the guarantee rate for a loan under 
                                this subparagraph shall be 80 percent.
                            ``(iii) Program safeguards.--
                                    ``(I) Eligibility.--The 
                                Administrator shall, by rule, establish 
                                criteria for the designation of lenders 
                                that are eligible to make a loan 
                                guaranteed under this subparagraph.
                                    ``(II) Underwriting standards.--The 
                                Administrator shall, by rule, establish 
                                underwriting standards for loans 
                                guaranteed under this subparagraph, to 
                                ensure that the Administrator may 
                                guarantee new loans under this 
                                subparagraph until December 1, 2011. 
                                The standards established under this 
                                subclause shall require the borrower to 
                                submit income tax returns to provide 
                                verification of business income.
                                    ``(III) Default and delinquency 
                                rates.--The Administrator shall--
                                            ``(aa) by rule establish 
                                        maximum default and delinquency 
                                        rates permissible for loans 
                                        made under this subparagraph; 
                                        and
                                            ``(bb) suspend the 
                                        eligibility to make a loan 
                                        guaranteed under this 
                                        subparagraph of any lender that 
                                        has a default or delinquency 
                                        rate grater than the rate 
                                        established under item (aa).
                                    ``(IV) Penalties for fraud.--
                                Notwithstanding section 16, a lender 
                                that knowingly makes a false statement 
                                with respect to the income, assets, or 
                                other qualifications of a small 
                                business concern in connection with a 
                                loan or application for a loan 
                                guaranteed under this subparagraph 
                                shall be fined not more than $500,000, 
                                imprisoned for not more than 5 years, 
                                or both.
                            ``(iv) Authority of participating 
                        lenders.--A lender designated in accordance 
                        with clause (iii) shall have the same authority 
                        with respect to the underwriting and 
                        liquidation of a loan guaranteed under this 
                        subparagraph as a lender participating in the 
                        Certified Lenders Program under paragraph (19).
                            ``(v) Payment of claims by the 
                        administrator.--The Administrator shall pay a 
                        claim by a lender on a guarantee of a loan by 
                        the Administrator under this subparagraph, 
                        unless the Administrator determines that--
                                    ``(I) the lender has committed 
                                fraud with respect to the loan; or
                                    ``(II) there is a material error in 
                                the loan origination, servicing, or 
                                liquidation process.
                            ``(vi) Total amount of loans.--Not more 
                        than 20 percent of the total dollar amount of 
                        all loans guaranteed under this subsection in 
                        any fiscal year may be loan guarantees under 
                        this subparagraph.
                            ``(vii) Default rate.--The Administrator 
                        shall calculate the default rate for loans 
                        guaranteed under this subparagraph separately 
                        from the default rate for any other loans made 
                        or guaranteed by the Administration.
                            ``(viii) Self-screening website.--The 
                        Administrator shall establish a website to 
                        allow the owners and operators of small 
                        business concerns to assess their eligibility 
                        to obtain loans guaranteed under this 
                        subparagraph.''.
            (2) Conforming amendment.--Section 7(a)(25)(B) of the Small 
        Business Act (15 U.S.C. 636(a)(25)(B)) is amended by inserting 
        ``, and does not include loans under paragraph (31)(G)'' after 
        ``by law''.
    (b) Prospective Repeal.--
            (1) In general.--Effective December 1, 2011, section 7(a) 
        of the Small Business Act (15 U.S.C. 636(a)) is amended--
                    (A) in paragraph (25)(B), by striking ``, and does 
                not include loans under paragraph (31)(G)''; and
                    (B) in paragraph (31), by striking subparagraph 
                (G).
            (2) Penalties.--Notwithstanding paragraph (1), subclause 
        (IV) of section 7(a)(31)(G)(iii) of the Small Business Act, as 
        added by this Act, shall continue to apply on and after 
        December 1, 2011, to loans guaranteed under section 7(a)(31)(G) 
        of the Small Business Act.

Summary: Working Capital Express Act of 2010 - Amends the Small Business Act to authorize the Administrator of the Small Business Administration (SBA) to guarantee loans for working capital made by lenders under the SBA's Express Loan Program to small businesses in operation for at least two years. Provides loan terms, including a guarantee limit of $750,000 for each small business. Directs the Administrator to: (1) establish maximum default and delinquency rates for such loans. And (2) suspend the eligibility to make such loans in the case of any lender with a default or delinquency rate in excess of such rates.