To amend the Consolidated and Further Continuing Appropriations Act, 2015 with respect to funding available for fiscal year 2015 for certain general business loans authorized under the Small Business Act, to amend the Small Business Act to modify loan limitations, and for other purposes.

SECTION 1. AMENDMENTS TO FUNDING AVAILABLE TO THE SMALL BUSINESS 
              ADMINISTRATION TO MAKE SECTION 7(A) LOANS.

    (a) Section 7(a) Loan Funding Levels.--The third proviso under the 
heading ``Small Business Administration--Business Loans Program 
Account'' in title V of division E of the Consolidated and Further 
Continuing Appropriations Act, 2015 (Public Law 113-235; 128 Stat. 
2371) is amended by striking ``$18,750,000,000'' and inserting 
``$23,500,000,000''.
    (b) Loan Limitations.--Section 7(a)(1) of the Small Business Act 
(15 U.S.C. 636(a)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``No financial assistance'' and 
                inserting the following:
                            ``(i) In general.--No financial 
                        assistance''; and
                    (B) by adding at the end the following:
                            ``(ii) Liquidity.--On and after October 1, 
                        2015, the Administrator may not guarantee a 
                        loan under this subsection if the lender 
                        determines that the borrower is unable to 
                        obtain credit elsewhere solely because the 
                        liquidity of the lender depends upon the 
                        guaranteed portion of the loan being sold on 
                        the secondary market.''; and
            (2) by adding at the end the following:
                    ``(C) Lending limits of lenders.--On and after 
                October 1, 2015, the Administrator may not guarantee a 
                loan under this subsection if the sole purpose for 
                requesting the guarantee is to allow the lender to 
                exceed the legal lending limit of the lender.''.
    (c) Reporting.--
            (1) Definitions.--In this subsection--
                    (A) the term ``Administrator'' means the 
                Administrator of the Small Business Administration;
                    (B) the term ``business loan'' means a loan made or 
                guaranteed under section 7(a) of the Small Business Act 
                (15 U.S.C. 636(a));
                    (C) the term ``cancellation'' means that the 
                Administrator approves a proposed business loan, but 
                the prospective borrower determines not to take the 
                business loan; and
                    (D) the term ``net dollar amount of business 
                loans'' means the difference between the total dollar 
                amount of business loans and the total dollar amount of 
                cancellations.
            (2) Requirement.--During the 3-year period beginning on the 
        date of enactment of this Act, the Administrator shall submit 
        to Committee on Small Business and Entrepreneurship and the 
        Committee on Appropriations of the Senate and the Committee on 
        Small Business and the Committee on Appropriations of the House 
        of Representatives a quarterly report regarding the loan 
        programs carried out under section 7(a) of the Small Business 
        Act (15 U.S.C. 636(a)), which shall include--
                    (A) for the fiscal year during which the report is 
                submitted and the 3 fiscal years before such fiscal 
                year--
                            (i) the weekly total dollar amount of 
                        business loans;
                            (ii) the weekly total dollar amount of 
                        cancellations; and
                            (iii) the weekly net dollar amount of 
                        business loans--
                                    (I) for all business loans; and
                                    (II) for each category of loan 
                                amount described in clause (i), (ii), 
                                or (iii) of section 7(a)(18) of the 
                                Small Business Act (15 U.S.C. 
                                636(a)(18));
                    (B) for the fiscal year during which the report is 
                submitted--
                            (i) the amount of remaining authority for 
                        business loans, in dollar amount and as a 
                        percentage; and
                            (ii) estimates of the date on which the net 
                        dollar amount of business loans will reach the 
                        maximum for such business loans based on daily 
                        net lending volume and extrapolations based on 
                        year-to-date net lending volume, quarterly net 
                        lending volume, and quarterly growth trends;
                    (C) the number of early defaults (as determined by 
                the Administrator) during the quarter covered by the 
                report;
                    (D) the total amount paid by borrowers in early 
                default during the quarter covered by the report, as of 
                the time of purchase of the guarantee;
                    (E) the number of borrowers in early default that 
                are franchisees;
                    (F) the total amount of guarantees purchased by the 
                Administrator during the quarter covered by the report; 
                and
                    (G) a description of the actions the Administrator 
                is taking to combat early defaults administratively and 
                any legislative action the Administrator recommends to 
                address early defaults.

Summary: This bill amends the Consolidated and Further Continuing Appropriations Act, 2015 to increase from $18.75 billion to $23.5 billion the FY2015 funding available to the Small Business Administration (SBA) for general business loans authorized under section 7(a) of the Small Business Act. The bill prohibits the SBA from guaranteeing a loan on and after October 1, 2015, if: the lender determines that the borrower is unable to obtain credit elsewhere solely because the lender's liquidity depends upon the guaranteed portion of the loan being sold on the secondary market, or the sole purpose for requesting the guarantee is to allow the lender to exceed its legal lending limit. The bill also requires the SBA to submit quarterly reports to Congress regarding the loan programs carried out under this section.