# American Recovery and Reinvestment Act of 2009/Division A/Title V

TITLE V—Financial Services And General Government

## DEPARTMENT OF THE TREASURY
### Treasury Inspector General for Tax Administration
#### Salaries And Expenses

    For an additional amount for necessary expenses of the Treasury Inspector General for Tax Administration in carrying out the Inspector General Act of 1978, $7,000,000, to remain available until September 30, 2013, for oversight and audits of the administration of the making work pay tax credit and economic recovery payments under the American Recovery and Reinvestment Act of 2009.

#### Community Development Financial Institutions Fund Program Account

    For an additional amount for "Community Development Financial Institutions Fund Program Account", $100,000,000, to remain available until September 30, 2010, for qualified applicants under the fiscal year 2009 funding round of the Community Development Financial Institutions Program, of which up to $8,000,000 may be for financial assistance, technical assistance, training and outreach programs designed to benefit Native American, Native Hawaiian, and Alaskan Native communities and provided primarily through qualified community development lender organizations with experience and expertise in community development banking and lending in Indian country, Native American organizations, tribes and tribal organizations and other suitable providers and up to $2,000,000 may be used for administrative expenses:
    Provided, That for the purpose of the fiscal year 2009 funding round, the following statutory provisions are hereby waived: 12 U.S.C. 4707(e) and 12 U.S.C. 4707(d):
    Provided further, That no awardee, together with its subsidiaries and affiliates, may be awarded more than 5 percent of the aggregate funds available during fiscal year 2009 from the Community Development Financial Institutions Program:
    Provided further, That no later than 60 days after the date of enactment of this Act, the Department of the Treasury shall submit to the Committees on Appropriations of the House of Representatives and the Senate a detailed expenditure plan for funds provided under this heading.

### Internal Revenue Service
#### Health Insurance Tax Credit Administration

    For an additional amount to implement the health insurance tax credit under the TAA Health Coverage Improvement Act of 2009, $80,000,000, to remain available until September 30, 2010.

## GENERAL SERVICES ADMINISTRATION
### Real Property Activities
#### Federal Buildings Fund
##### Limitations On Availability Of Revenue

(Including Transfer Of Funds)
    For an additional amount to be deposited in the Federal Buildings Fund, $5,550,000,000, to carry out the purposes of the Fund, of which not less than $750,000,000 shall be available for Federal buildings and United States courthouses, not less than $300,000,000 shall be available for border stations and land ports of entry, and not less than $4,500,000,000 shall be available for measures necessary to convert GSA facilities to High-Performance Green Buildings, as defined in section 401 of Public Law 110-140:
    Provided, That not to exceed $108,000,000 of the amounts provided under this heading may be expended for rental of space, related to leasing of temporary space in connection with projects funded under this heading:
    Provided further, That not to exceed $127,000,000 of the amounts provided under this heading may be expended for building operations, for the administrative costs of completing projects funded under this heading:
    Provided further, That not to exceed $3,000,000 of the funds provided shall be for on-the-job pre-apprenticeship and apprenticeship training programs registered with the Department of Labor, for the construction, repair, and alteration of Federal buildings:
    Provided further, That not less than $5,000,000,000 of the funds provided under this heading shall be obligated by September 30, 2010, and the remainder of the funds provided under this heading shall be obligated not later than September 30, 2011:
    Provided further, That the Administrator of General Services is authorized to initiate design, construction, repair, alteration, and other projects through existing authorities of the Administrator:
    Provided further, That the General Services Administration shall submit a detailed plan, by project, regarding the use of funds made available in this Act to the Committees on Appropriations of the House of Representatives and the Senate within 45 days of enactment of this Act, and shall provide notification to the Committees within 15 days prior to any changes regarding the use of these funds:
    Provided further, That, hereafter, the Administrator shall report to the Committees on the obligation of these funds on a quarterly basis beginning on June 30, 2009:
    Provided further, That of the amounts provided, $4,000,000 shall be transferred to and merged with "Government-Wide Policy", for the Office of Federal High-Performance Green Buildings as authorized in the Energy Independence and Security Act of 2007 (Public Law 110-140):
    Provided further, That amounts provided under this heading that are savings or cannot be used for the activity for which originally obligated may be deobligated and, notwithstanding any other provision of law, reobligated for the purposes identified in the plan required under this heading not less than 15 days after notification has been provided to the Committees on Appropriations of the House of Representatives and the Senate.

### Energy-Efficient Federal Motor Vehicle Fleet Procurement

    For capital expenditures and necessary expenses of acquiring motor vehicles with higher fuel economy, including: hybrid vehicles; electric vehicles; and commercially-available, plug-in hybrid vehicles, $300,000,000, to remain available until September 30, 2011:
    Provided, That none of these funds may be obligated until the Administrator of General Services submits to the Committees on Appropriations of the House of Representatives and the Senate, within 90 days after enactment of this Act, a plan for expenditure of the funds that details the current inventory of the Federal fleet owned by the General Services Administration, as well as other Federal agencies, and the strategy to expend these funds to replace a portion of the Federal fleet with the goal of substantially increasing energy efficiency over the current status, including increasing fuel efficiency and reducing emissions:
    Provided further, That, hereafter, the Administrator shall report to the Committees on the obligation of these funds on a quarterly basis beginning on September 30, 2009.

### Office of Inspector General

    For an additional amount for the Office of the Inspector General, to remain available until September 30, 2013, for oversight and audit of programs, grants, and projects funded under this title, $7,000,000.

## RECOVERY ACT ACCOUNTABILITY AND TRANSPARENCY BOARD

    For necessary expenses of the Recovery Act Accountability and Transparency Board to carry out the provisions of title XV of this Act, $84,000,000, to remain available until September 30, 2011.

## SMALL BUSINESS ADMINISTRATION
#### Salaries and Expenses

    For an additional amount, to remain available until September 30, 2010, $69,000,000, of which $24,000,000 is for marketing, management, and technical assistance under section 7(m) of the Small Business Act (15 U.S.C. 636(m)(4)) by intermediaries that make microloans under the microloan program, and of which $20,000,000 is for improving, streamlining, and automating information technology systems related to lender processes and lender oversight:
    Provided, That no later than 60 days after the date of enactment of this Act, the Small Business Administration shall submit to the Committees on Appropriations of the House of Representatives and the Senate a detailed expenditure plan for funds provided under the heading "Small Business Administration" in this Act.

#### Office of Inspector General

    For an additional amount for the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, $10,000,000, to remain available until September 30, 2013, for oversight and audit of programs, grants, and projects funded under this title.

#### Surety Bond Guarantees Revolving Fund

    For additional capital for the Surety Bond Guarantees Revolving Fund, authorized by the Small Business Investment Act of 1958, $15,000,000, to remain available until expended.

#### Business Loans Program Account

    For an additional amount for the cost of direct loans, $6,000,000, to remain available until September 30, 2010, and for an additional amount for the cost of guaranteed loans, $630,000,000, to remain available until September 30, 2010:
    Provided, That of the amount for the cost of guaranteed loans, $375,000,000 shall be for reimbursements, loan subsidies and loan modifications for loans to small business concerns authorized in section 501 of this title; and $255,000,000 shall be for loan subsidies and loan modifications for loans to small business concerns authorized in section 506 of this title:
    Provided further, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974.

#### Administrative Provisions—Small Business Administration
##### Sec. 501. Fee Reductions.

    (a) Administrative Provisions Small Business Administration.—
       Until September 30, 2010, and to the extent that the cost of such elimination or reduction of fees is offset by appropriations, with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) and section 502 of this title, for which the application is approved on or after the date of enactment of this Act, the Administrator shall—
       (1) in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), collect no fee or reduce fees to the maximum extent possible; and
       (2) in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect no fee or reduce fees to the maximum extent possible.
    (b) Temporary Fee Elimination for the 504 Loan Program.—
       (1) In general.—
          Until September 30, 2010, and to the extent the cost of such elimination in fees is offset by appropriations, with respect to each project or loan guaranteed by the Administrator pursuant to title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) for which an application is approved or pending approval on or after the date of enactment of this Act—
          (A) the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(2)), collect no fee;
          (B) a development company shall, in lieu of the processing fee under section 120.971(a)(1) of title 13, Code of Federal Regulations (relating to fees paid by borrowers), or any successor thereto, collect no fee.
       (2) Reimbursement for waived fees.—
          (A) In general.—
             To the extent that the cost of such payments is offset by appropriations, the Administrator shall reimburse each development company that does not collect a processing fee pursuant to paragraph (1)(B).
          (B) Amount.—
             The payment to a development company under subparagraph (A) shall be in an amount equal to 1.5 percent of the net debenture proceeds for which the development company does not collect a processing fee pursuant to paragraph (1)(B).
    (c) Application of Fee Eliminations.—
       (1) To the extent that amounts are made available to the Administrator for the purpose of fee eliminations or reductions under subsection (a), the Administrator shall—
          (A) first use any amounts provided to eliminate or reduce fees paid by small business borrowers under clauses (i) through (iii) of paragraph (18)(A), to the maximum extent possible; and
          (B) then use any amounts provided to eliminate or reduce fees under paragraph (23)(A) paid by small business lenders with assets less than $1,000,000,000 as of the date of enactment; and
          (C) then use any remaining amounts appropriated under this title to reduce fees paid by small business lenders other than those with assets less than $1,000,000,000.
       (2) The Administrator shall eliminate fees under subsections (a) and (b) until the amount provided for such purposes, as applicable, under the heading "Business Loans Program Account" under the heading "Small Business Administration" under this Act are expended.

##### Sec. 502. Economic Stimulus Lending Program for Small Businesses.

    (a) Purpose.—
       The purpose of this section is to permit the Small Business Administration to guarantee up to 90 percent of qualifying small business loans made by eligible lenders.
    (b) Definitions.—
       For purposes of this section:
       (1) The term "Administrator" means the Administrator of the Small Business Administration.
       (2) The term "qualifying small business loan" means any loan to a small business concern pursuant to section 7(a) of the Small Business Act (15 U.S.C. 636) or title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 and following) except for such loans made under section 7(a)(31).
       (3) The term "small business concern" has the same meaning as provided by section 3 of the Small Business Act (15 U.S.C. 632).
    (c) Qualified Borrowers.—
       (1) Aliens unlawfully present in the united states.—
          A loan guarantee may not be made under this section for a loan made to a concern if an individual who is an alien unlawfully present in the United States—
          (A) has an ownership interest in that concern; or
          (B) has an ownership interest in another concern that itself has an ownership interest in that concern.
       (2) Firms in violation of immigration laws.—
          No loan guarantee may be made under this section for a loan to any entity found, based on a determination by the Secretary of Homeland Security or the Attorney General to have engaged in a pattern or practice of hiring, recruiting or referring for a fee, for employment in the United States an alien knowing the person is an unauthorized alien.
    (d) Criminal Background Checks.—
       Prior to the approval of any loan guarantee under this section, the Administrator may verify the applicant's criminal background, or lack thereof, through the best available means, including, if possible, use of the National Crime Information Center computer system at the Federal Bureau of Investigation.
    (e) Application of Other Law.—
       Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
    (f) Sunset.—
       Loan guarantees may not be issued under this section after the date 12 months after the date of enactment of this Act.
    (g) Small Business Act Provisions.—
       The provisions of the Small Business Act applicable to loan guarantees under section 7 of that Act and regulations promulgated thereunder as of the date of enactment of this Act shall apply to loan guarantees under this section except as otherwise provided in this section.
    (h) Authorization.—
       There are authorized to be appropriated such sums as may be necessary to carry out this section.

##### Sec. 503. Establishment of SBA Secondary Market Guarantee Authority.

    (a) Purpose.—
       The purpose of this section is to provide the Administrator with the authority to establish the SBA Secondary Market Guarantee Authority within the SBA to provide a Federal guarantee for pools of first lien 504 loans that are to be sold to third-party investors.
    (b) Definitions.—
       For purposes of this section:
       (1) The term "Administrator" means the Administrator of the Small Business Administration.
       (2) The term "first lien position 504 loan" means the first mortgage position, non-federally guaranteed loans made by private sector lenders made under title V of the Small Business Investment Act.
    (c) Establishment of Authority.—
       (1) Organization.—
          (A) The Administrator shall establish a Secondary Market Guarantee Authority within the Small Business Administration.
          (B) The Administrator shall appoint a Director of the Authority who shall report to the Administrator.
          (C) The Administrator is authorized to hire such personnel as are necessary to operate the Authority and may contract such operations of the Authority as necessary to qualified third party companies or individuals.
          (D) The Administrator is authorized to contract with private sector fiduciary and custom dial agents as necessary to operate the Authority.
       (2) Guarantee process.—
          (A) The Administrator shall establish, by rule, a process in which private sector entities may apply to the Administration for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors.
          (B) The Administrator is authorized to contract with private sector fiduciary and custom dial agents as necessary to operate the Authority.
       (3) Responsibilities.—
          (A) The Administrator shall establish, by rule, a process in which private sector entities may apply to the SBA for a Federal guarantee on pools of first lien position 504 loans that are to be sold to third-party investors.
          (B) The rule under this section shall provide for a process for the Administrator to consider and make decisions regarding whether to extend a Federal guarantee referred to in clause (i). Such rule shall also provide that:
             (i) The seller of the pools purchasing a guarantee under this section retains not less than 5 percent of the dollar amount of the pools to be sold to third-party investors.
             (ii) The Administrator shall charge fees, upfront or annual, at a specified percentage of the loan amount that is at such a rate that the cost of the program under the Federal Credit Reform Act of 1990 (title V of the Federal Credit Reform Act of 1990; 2 U.S.C. 661) shall be equal to zero.
             (iii) The Administrator may guarantee not more than $3,000,000,000 of pools under this authority.
          (C) The Administrator shall establish documents, legal covenants, and other required documentation to protect the interests of the United States.
          (D) The Administrator shall establish a process to receive and disburse funds to entities under the authority established in this section.
    (d) Limitations.—
       (1) The Administrator shall ensure that entities purchasing a guarantee under this section are using such guarantee for the purpose of selling 504 first lien position pools to third-party investors.
       (2) If the Administrator finds that any such guarantee was used for a purpose other than that specified in paragraph (1), the Administrator shall—
          (A) prohibit the purchaser of the guarantee or its affiliates (within the meaning of the regulations under 13 CFR 121.103) from using the authority of this section in the future; and
          (B) take any other actions the Administrator, in consultation with the Attorney General of the United States deems appropriate.
    (e) Oversight.—
       The Administrator shall submit a report to Congress not later than the third business day of each month setting forth each of the following:
       (1) The aggregate amount of guarantees extended under this section during the preceding month.
       (2) The aggregate amount of guarantees outstanding.
       (3) Defaults and payments on defaults made under this section.
       (4) The identity of each purchaser of a guarantee found by the Administrator to have misused guarantees under this section.
       (5) Any other information the Administrator deems necessary to fully inform Congress of undue risk to the United States associated with the issuance of guarantees under this section.
    (f) Duration of Program.—
       The authority of this section shall terminate on the date 2 years after the date of enactment of this section.
    (g) Funding.—
       Such sums as necessary are authorized to be appropriated to carry out the provisions of this section.
    (h) Budget Treatment.—
       Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
    (i) Emergency Rulemaking Authority.—
       The Administrator shall issue regulations under this section within 15 days after the date of enactment of this section. The notice requirements of section 553(b) of title 5, United States Code shall not apply to the promulgation of such regulations.

##### Sec. 504. Stimulus for Community Development Lending.

    (a) Low Interest Refinancing Under the Local Development Business Loan Program.—
       Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by adding at the end the following:
             "(7) Permissible debt refinancing.—
                "(A) In general.—Any financing approved under this title may include a limited amount of debt refinancing.
                "(B) Expansions.—If the project involves expansion of a small business concern, any amount of existing indebtedness that does not exceed 50 percent of the project cost of the expansion may be refinanced and added to the expansion cost, if—
                   "(i) the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment;
                   "(ii) the existing indebtedness is collateralized by fixed assets;
                   "(iii) the existing indebtedness was incurred for the benefit of the small business concern;
                   "(iv) the financing under this title will be used only for refinancing existing indebtedness or costs relating to the project financed under this title;
                   "(v) the financing under this title will provide a substantial benefit to the borrower when prepayment penalties, financing fees, and other financing costs are accounted for;
                   "(vi) the borrower has been current on all payments due on the existing debt for not less than 1 year preceding the date of refinancing; and
                   "(vii) the financing under section 504 will provide better terms or rate of interest than the existing indebtedness at the time of refinancing.".
    (b) Job Creation Goals.—
       Section 501(e)(1) and section 501(e)(2) of the Small Business Investment Act (15 U.S.C. 695) are each amended by striking "$50,000" and inserting "$65,000".

##### Sec. 505. Increasing Small Business Investment.

    (a) Simplified Maximum Leverage Limits.—
       Section 303(b) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)) is amended as follows:
       (1) By striking so much of paragraph (2) as precedes subparagraphs (C) and (D) and inserting the following:
             "(2) Maximum leverage.—
                "(A) In general.—The maximum amount of outstanding leverage made available to any one company licensed under section 301(c) of this Act may not exceed the lesser of—
                   "(i) 300 percent of such company's private capital; or
                   "(ii) $150,000,000.
                "(B) Multiple licenses under common control.—The maximum amount of outstanding leverage made available to two or more companies licensed under section 301(c) of this Act that are commonly controlled (as determined by the Administrator) and not under capital impairment may not exceed $225,000,000.";
       (2) By amending paragraph (2)(C) by inserting "(i)" before "In calculating" and adding the following at the end thereof:
                   "(ii) The maximum amount of outstanding leverage made available to—
                      "(I) any 1 company described in clause (iii) may not exceed the lesser of 300 percent of private capital of the company, or $175,000,000; and
                      "(II) 2 or more companies described in clause (iii) that are under common control (as determined by the Administrator) may not exceed $250,000,000.
                   "(iii) A company described in this clause is a company licensed under section 301(c) in the first fiscal year after the date of enactment of this clause or any fiscal year thereafter that certifies in writing that not less than 50 percent of the dollar amount of investments of that company shall be made in companies that are located in a low-income geographic area (as that term is defined in section 351).".
       (3) By striking paragraph (4).
    (b) Simplified Aggregate Investment Limitations.—
       Section 306(a) of the Small Business Investment Act of 1958 (15 U.S.C. 686(a)) is amended to read as follows:
          "(a) Percentage Limitation on Private Capital.—If any small business investment company has obtained financing from the Administrator and such financing remains outstanding, the aggregate amount of securities acquired and for which commitments may be issued by such company under the provisions of this title for any single enterprise shall not, without the approval of the Administrator, exceed 10 percent of the sum of—
             "(1) the private capital of such company; and
             "(2) the total amount of leverage projected by the company in the company's business plan that was approved by the Administrator at the time of the grant of the company's license.".
    (c) Investments in Smaller Enterprises.—
       Section 303(d) of the Small Business Investment Act of 1958 (15 U.S.C. 683(d)) is amended to read as follows:
          "(d) Investments in Smaller Enterprises.—The Administrator shall require each licensee, as a condition of approval of an application for leverage, to certify in writing that not less than 25 percent of the aggregate dollar amount of financings of that licensee shall be provided to smaller enterprises.".

##### Sec. 506. Business Stabilization Program.

    (a) In General.—
       Subject to the availability of appropriations, the Administrator of the Small Business Administration shall carry out a program to provide loans on a deferred basis to viable (as such term is determined pursuant to regulation by the Administrator of the Small Business Administration) small business concerns that have a qualifying small business loan and are experiencing immediate financial hardship.
    (b) Eligible Borrower.—
       A small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632).
    (c) Qualifying Small Business Loan.—
       A loan made to a small business concern that meets the eligibility standards in section 7(a) of the Small Business Act (15 U.S.C. 636(a)) but shall not include loans guarantees (or loan guarantee commitments made) by the Administrator prior to the date of enactment of this Act.
    (d) Loan Size.—
       Loans guaranteed under this section may not exceed $35,000.
    (e) Purpose.—
       Loans guaranteed under this program shall be used to make periodic payment of principal and interest, either in full or in part, on an existing qualifying small business loan for a period of time not to exceed 6 months.
    (f) Loan Terms.—
       Loans made under this section shall:
       (1) carry a 100 percent guaranty; and
       (2) have interest fully subsidized for the period of repayment.
    (g) Repayment.—
       Repayment for loans made under this section shall—
       (1) be amortized over a period of time not to exceed 5 years; and
       (2) not begin until 12 months after the final disbursement of funds is made.
    (h) Collateral.—
       The Administrator of the Small Business Administration may accept any available collateral, including subordinated liens, to secure loans made under this section.
    (i) Fees.—
       The Administrator of the Small Business Administration is prohibited from charging any processing fees, origination fees, application fees, points, brokerage fees, bonus points, prepayment penalties, and other fees that could be charged to a loan applicant for loans under this section.
    (j) Sunset.—
       The Administrator of the Small Business Administration shall not issue loan guarantees under this section after September 30, 2010.
    (k) Emergency Rulemaking Authority.—
       The Administrator of the Small Business Administration shall issue regulations under this section within 15 days after the date of enactment of this section. The notice requirements of section 553(b) of title 5, United States Code shall not apply to the promulgation of such regulations.

##### SEC. 507. GAO REPORT.

    (a) Report.—
       Not later than 60 days after the enactment of this Act, the Comptroller General of the United States shall report to the Congress on the actions of the Administrator in implementing the authorities established in the administrative provisions of this title.
    (b) Included Item.—
       The report under this section shall include a summary of the activity of the Administrator under this title and an analysis of whether he is accomplishing the purpose of increasing liquidity in the secondary market for Small Business Administration loans.

##### SEC. 508. SURETY BONDS.

    (a) Maximum Bond Amount.—
       Section 411(a)(1) of the Small Business Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is amended—
       (1) by inserting "(A)" after "(1)";
       (2) by striking "$2,000,000" and inserting "$5,000,000"; and
       (3) by adding at the end the following:
          "(B) The Administrator may guarantee a surety under subparagraph (A) for a total work order or contract amount that does not exceed $10,000,000, if a contracting officer of a Federal agency certifies that such a guarantee is necessary.".
    (b) Denial of Liability—
       Section 411 of the Small Business Investment Act of 1958 (15 U.S.C. 694b) is amended—
       (1) by striking subsection (e) and inserting the following:
          "(e) Reimbursement of Surety; Conditions.—
          "Pursuant to any such guarantee or agreement, the Administration shall reimburse the surety, as provided in subsection (c) of this section, except that the Administration shall be relieved of liability (in whole or in part within the discretion of the Administration) if—
       (1) the surety obtained such guarantee or agreement, or applied for such reinbursement, by fraud or material misrepresentation,
       (2) the total contract amount at the time of execution of the bond or bonds exceeds $5,000,000,
       (3) the surety has breached a material term or condition of such guarantee agreement, or
       (4) the surety has substantially violated the regulations promulgated by the Administration pursuant to subsection (d)."
       (2) by adding at the end the following:
          "(k) For bonds made or executed with the prior approval of the Administration, the Administration shall not deny liability to a surety based upon material information that was provided as part of the guaranty application.".
    (c) Size Standards.—
       Section 410 of the Small Business Investment Act of 1958 (15 U.S.C. 694a) is amended by adding at the end the following:
             "(9) Notwithstanding any other provision of law or any rule, regulation, or order of the Administration, for purposes of sections 410, 411, and 412 the term `small business concern' means a business concern that meets the size standard for the primary industry in which such business concern, and the affiliates of such business concern, is engaged, as determined by the Administrator in accordance with the North American Industry Classification System.".
    (d) Study—
       The Administrator of the Small Business Administration shall conduct a study of the current funding structure of the surety bond program carried out under part B (15 U.S.C. 694a et seq.) of title IV of the Small Business Investment Act of 1958. The study shall include—
       (1) an assessment of whether the program's current funding framework and program fees are inhibiting the program's growth;
       (2) an assessment of whether surety companies and small business concerns could benefit from an alternative funding structure; and
    (e) Report—
       Not later than 180 days after the date of enactment of this Act, the Administrator shall submit to Congress a report on the results of the study required under subsection (d).
    (f) Sunset.—
       The amendments made by this section shall remain in effect until September 30, 2010.

##### SEC. 509. ESTABLISHMENT OF SBA SECONDARY MARKET LENDING AUTHORITY.

    (a) Purpose.—
       The purpose of this section is to provide the Small Business Administration with the authority to establish a Secondary Market Lending Authority within the SBA to make loans to the systemically important SBA secondary market broker-dealers who operate the SBA secondary market.
    (b) Definitions.—
       For purposes of this section:
       (1) The term "Administrator" means the Administrator of the SBA.
       (2) The term "SBA" means the Small Business Administration.
       (3) The terms "Secondary Market Lending Authority" and "Authority" mean the office establishedunder subsection (c).
       (4) The term "SBA secondary market" meansthe market for the purchase and sale of loans originated, underwritten, and closed under the Small Business Act.
       (5) The term "Systemically Important Secondary Market Broker-Dealers" mean those entities designated under subsection (c)(1) as vital to the continued operation of the SBA secondary market by reason of their purchase and sale of the government guaranteed portion of loans, or pools of loans,originated, underwritten, and closed under the Small Business Act.
    (c) Responsibilities, Authorities, Organization, and Limitations.—
       (1) Designation of systemically important SBA secondary market broker-dealers.—
          The Administrator shall establish a process to designate, in consultation with the Board of Governors of the Federal Reserve and the Secretary of the Treasury, Systemically Important Secondary Market Broker-Dealers.
       (2) Establishment of SBA secondary market lending authority.—
          (A) Organization.—
             (i) The Administrator shall establish within the SBA an office to provide loans to Systemically Important Secondary Market Broker-dealers to be used for the purpose of financing the inventory of the government guaranteed portion of loans, originated, underwritten, and closed under the Small Business Act or pools of such loans.
             (ii) The Administrator shall appoint a Director of the Authority who shall report to the Administrator.
             (iii) The Administrator is authorized to hire such personnel as are necessary to operate the Authority.
             (iv) The Administrator may contract such Authority operations as he determines necessary to qualified third-party companies or individuals.
             (v) The Administrator is authorized to contract with private sector fiduciary and custodial agents as necessary to operate the Authority.
          (B) Loans.—
             (i) The Administrator shall establish by rule a process under which Systemically Important SBA Secondary Market Broker-Dealers designated under paragraph (1) may apply to the Administrator for loans under this section.
             (ii) The rule under clause (i) shall provide a process for the Administrator to consider and make decisions regarding whether or not to extend a loan applied for under this section. Such rule shall include provisions to assure each of the following:
                (I) That loans made under this section are for the sole purpose of financing the inventory of the govern ment guaranteed portion of loans, originated, underwritten, and closed under the Small Business Act or pools of such loans.
                (II) That loans made under this section are fully collateralized to the satisfaction of the Administrator.
                (III) That there is no limit to the frequency in which a borrower may borrow under this section unless the Administrator determines that doing so would create an undue risk of loss to the agency or the United States.
                (IV) That there is no limit on the size of a loan, subject to the discretion of the Administrator.
             (iii) Interest on loans under this section shall not exceed the Federal Funds target rate as established by the Federal Reserve Board of Governors plus 25 basis points.
             (iv) The rule under this section shall provide for such loan documents, legal covenants, collateral requirements and other required documentation as necessary to protect the interests of the agency, the United States, and the taxpayer.
             (v) The Administrator shall establish custodial accounts to safeguard any collateral pledged to the SBA in connection with a loan under this section.
             (vi) The Administrator shall establish a process to disburse and receive funds to and from borrowers under this section.
          (C) Limitations on use of Loan Proceeds by Systemically Important Secondary Market Broker-Dealers.—
             The Administrator shall ensure that borrowers under this section are using funds provided under this section only for the purpose specified in subparagraph (B)(ii)(I). If the Administrator finds that such funds were used for any other purpose, the Administrator shall—
       (i) require immediate repayment of outstanding loans;
       (ii) prohibit the borrower, its affiliates, or any future corporate manifestation of the borrower from using the Authority; and
       (iii) take any other actions the Administrator, in consultation with the Attorney General of the United States, deemsappropriate.
    (d) Report to Congress.—
       The Administrator shall submit a report to Congress not later than the third business day of each month containing a statement of each of the following:
       (1) The aggregate loan amounts extended during the preceding month under this section.
       (2) The aggregate loan amounts repaid under this section during the proceeding month.
       (3) The aggregate loan amount outstanding under this section.
       (4) The aggregate value of assets held as collateral under this section;
       (5) The amount of any defaults or delinquencies on loans made under this section.
       (6) The identity of any borrower found by the Administrator to misuse funds made available under this section.
       (7) Any other information the Administrator deems necessary to fully inform Congress of undue risk of financial loss to the United States in connection with loans made under this section.
    (e) Duration.—
       The authority of this section shall remain in effect for a period of 2 years after the date of enactment of this section.
    (f) Fees.—
       The Administrator shall charge fees, up front, annual, or both at a specified percentage of the loan amount that is at such a rate that the cost of the program under the Federal Credit Reform Act of 1990 ((title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661) shall be equal to zero.
    (h) Budget treatment.—
       Nothing in this section shall be construed to exempt any activity of the Administrator under this section from the Federal Credit Reform Act of 1990 (title V of the Congressional Budget and Impoundment Control Act of 1974; 2 U.S.C. 661 and following).
    (i) Emergency Rulemaking Authority.—
       The Administrator shall promulgate regulations under this section within 30 days after the date of enactment of enactment of this section. In promulgating these regulations,the Administrator the notice requirements of section 553(b) of title 5 of the United States Code shall not apply.