II 

117TH CONGRESS 

2D SESSION S. 4476 

To amend the State Small Business Credit Initiative Act of 2010 to modify 

allocations under the State Small Business Credit Initiative, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 23, 2022 

Ms. KLOBUCHAR (for herself and Mr. WARNER) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To amend the State Small Business Credit Initiative Act 

of 2010 to modify allocations under the State Small 

Business Credit Initiative, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘SSBCI Improvement 

5 Act’’. 

6 SEC. 2. TECHNICAL AMENDMENTS TO THE STATE SMALL 

7 BUSINESS CREDIT INITIATIVE ACT OF 2010. 

8 (a) EXCEPTION FOR ALLOCATED AMOUNTS OF NOT

9 MORE THAN $1,000,000.— 


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•S 4476 IS

1 (1) IN GENERAL.—Section 3003(c)(1) of the 

2 State Small Business Credit Initiative Act of 2010 

3 (12 U.S.C. 5702(c)(1)) is amended— 

4 (A) in subparagraph (A)(i), by inserting ‘‘, 

5 except as provided in subparagraph (D)’’ before 

6 the semicolon at the end; and 

7 (B) by amending subparagraph (D) to 

8 read as follows: 

9 ‘‘(D) EXCEPTIONS.—The Secretary— 

10 ‘‘(i) may, in the Secretary’s discretion, 

11 transfer the full amount of the partici12 pating State’s allocated amount to the 

13 State in a single transfer if the partici14 pating State applies to the Secretary for 

15 approval to use the full amount of the allo16 cation as collateral for a qualifying loan or 

17 swap funding facility; and 

18 ‘‘(ii) shall transfer the full amount of 

19 the participating State’s allocated amount, 

20 if the amount is not more than 

21 $1,000,000, to the State in a single trans22 fer upon approval under section 3004 and 

23 subject to the requirements of paragraph 

24 (7).’’. 


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1 (2) USE OF TRANSFERRED FUNDS.—Section 

2 3003(c)(3) of the State Small Business Credit Ini3 tiative Act of 2010 (12 U.S.C. 5702(c)(3)) is 

4 amended— 

5 (A) in subparagraph (C)— 

6 (i) by inserting ‘‘if the allocated 

7 amount under subsection (b) is greater 

8 than $1,000,000,’’ before ‘‘in the case of’’; 

9 and 

10 (ii) by striking ‘‘or’’ at the end; 

11 (B) in subparagraph (D)— 

12 (i) by inserting ‘‘if the allocated 

13 amount under subsection (b) is more than 

14 $1,000,000,’’ before ‘‘in the case of’’; and 

15 (ii) by striking the period at the end 

16 and inserting ‘‘; or’’; and 

17 (C) by adding at the end the following: 

18 ‘‘(E) if the allocated amount under sub19 section (b) is not more than $1,000,000, for 

20 paying administrative costs incurred by the 

21 State in implementing an approved State pro22 gram in an amount not to exceed 3.6 percent 

23 of the allocated amount.’’. 

24 (3) RECOUPMENT.—Section 3003(c) of the 

25 State Small Business Credit Initiative Act of 2010 


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1 (12 U.S.C. 5702(c)) is amended by adding at the 

2 end the following: 

3 ‘‘(7) RECOUPMENT OF ALLOCATED AMOUNTS

4 FOR CERTAIN PARTICIPATING STATES.— 

5 ‘‘(A) IN GENERAL.—With respect to a par6 ticipating State for which the Secretary allo7 cated an amount less than or equal to 

8 $1,000,000, the Secretary may recoup an 

9 amount of the participating State’s allocated 

10 amount as follows: 

11 ‘‘(i) If, not later than the last day of 

12 the 3-year period beginning on the date of 

13 approval under section 3004, an amount 

equal to 80 percent of 1 14 ⁄3 of the allocated 

15 amount has not been certified by the State 

16 as expended, obligated, or transferred, the 

amount recouped shall be equal to 2 17 ⁄3 of 

18 the allocated amount. 

19 ‘‘(ii) If, not later than the last day of 

20 the 6-year period beginning on the date of 

21 approval under section 3004, an amount 

equal to 80 percent of 2 22 ⁄3 of the allocated 

23 amount has not been certified by the State 

24 as expended, obligated, or transferred, the 


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amount shall be equal to 1 1 ⁄3 of the allo2 cated amount. 

3 ‘‘(B) REALLOCATION.— 

4 ‘‘(i) IN GENERAL.—Any amount re5 couped under this paragraph may be re6 allocated by the Secretary to a Tribal gov7 ernment that was not a participating State 

8 subject to recoupment under this para9 graph. 

10 ‘‘(ii) CONSIDERATION.—In making a 

11 reallocation under clause (i), the Secretary 

12 shall not take into account the specific al13 location for Tribal governments described 

14 in subsection (b)(2)(D).’’. 

15 (4) APPLICABILITY.—The amendments made 

16 by this subsection shall apply with respect to an allo17 cation made to a participating State under the State 

18 Small Business Credit Initiative Act of 2010 (12 

19 U.S.C. 5701 et seq.) for fiscal year 2022 and each 

20 fiscal year thereafter. 

21 (b) EXTENSION OF CERTAIN PERIODS.—The State 

22 Small Business Credit Initiative Act of 2010 (12 U.S.C. 

23 5701 et seq.) is amended— 


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1 (1) in section 3004(d)(2) (12 U.S.C. 

2 5703(d)(2)), by striking ‘‘12 months’’ and inserting 

3 ‘‘18 months’’; 

4 (2) in section 3007(d) (12 U.S.C. 5706(d)), by 

5 striking ‘‘the first March 31’’ and all that follows 

6 and inserting ‘‘March 31, 2031.’’; and 

7 (3) in section 3009(c) (12 U.S.C. 5707(c)), by 

8 striking ‘‘7-year’’ and inserting ‘‘11-year’’. 

9 (c) TECHNICAL AMENDMENT.—Section 3003 of the 

10 State Small Business Credit Initiative Act of 2010 (12 

11 U.S.C. 5702) is amended— 

12 (1) in subsection (b)(2)— 

13 (A) by redesignating subparagraph (D) as 

14 subparagraph (E); and 

15 (B) by redesignating the second subpara16 graph (C) (relating to separate allocation for 

17 Tribal governments) as subparagraph (D); and 

18 (2) in subsection (c)(4)(B), by striking ‘‘sub19 section (b)(2)(C)’’ and inserting ‘‘subsection 

20 (b)(2)(D)’’. 

Æ 


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