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[111th Congress Public Law 240]
[From the U.S. Government Printing Office]

[[Page 2503]]

                     SMALL BUSINESS JOBS ACT OF 2010

[[Page 124 STAT. 2504]]

Public Law 111-240
111th Congress

                                 An Act

 
    To create the Small Business Lending Fund Program to direct the 
   Secretary of the Treasury to make capital investments in eligible 
 institutions in order to increase the availability of credit for small 
 businesses, to amend the Internal Revenue Code of 1986 to provide tax 
       incentives for small business job creation, and for other 
           purposes. <<NOTE: Sept. 27, 2010 -  [H.R. 5297]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Small Business 
Jobs Act of 2010.>> 
SECTION 1. <<NOTE: 15 USC 631 note.>>  SHORT TITLE.

    This Act may be cited as the ``Small Business Jobs Act of 2010''.
SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                        TITLE I--SMALL BUSINESSES

Sec. 1001. Definitions.

               Subtitle A--Small Business Access to Credit

Sec. 1101. Short title.

         PART I--Next Steps for Main Street Credit Availability

Sec. 1111. Section 7(a) business loans.
Sec. 1112. Maximum loan amounts under 504 program.
Sec. 1113. Maximum loan limits under microloan program.
Sec. 1114. Loan guarantee enhancement extensions.
Sec. 1115. New Markets Venture Capital company investment limitations.
Sec. 1116. Alternative size standards.
Sec. 1117. Sale of 7(a) loans in secondary market.
Sec. 1118. Online lending platform.
Sec. 1119. SBA Secondary Market Guarantee Authority.

                PART II--Small Business Access to Capital

Sec. 1122. Low-interest refinancing under the local development business 
           loan program.

                         PART III--Other Matters

Sec. 1131. Small business intermediary lending pilot program.
Sec. 1132. Public policy goals.
Sec. 1133. Floor plan pilot program extension.
Sec. 1134. Guarantees for bonds and notes issued for community or 
           economic development purposes.
Sec. 1135. Temporary express loan enhancement.
Sec. 1136. Prohibition on using TARP funds or tax increases.

             Subtitle B--Small Business Trade and Exporting

Sec. 1201. Short title.
Sec. 1202. Definitions.

[[Page 124 STAT. 2505]]

Sec. 1203. Office of International Trade.
Sec. 1204. Duties of the Office of International Trade.
Sec. 1205. Export assistance centers.
Sec. 1206. International trade finance programs.
Sec. 1207. State Trade and Export Promotion Grant Program.
Sec. 1208. Rural export promotion.
Sec. 1209. International trade cooperation by small business development 
           centers.

                 Subtitle C--Small Business Contracting

                        PART I--Contract Bundling

Sec. 1311. Small Business Act.
Sec. 1312. Leadership and oversight.
Sec. 1313. Consolidation of contract requirements.
Sec. 1314. Small business teams pilot program.

                    PART II--Subcontracting Integrity

Sec. 1321. Subcontracting misrepresentations.
Sec. 1322. Small business subcontracting improvements.

                      PART III--Acquisition Process

Sec. 1331. Reservation of prime contract awards for small businesses.
Sec. 1332. Micro-purchase guidelines.
Sec. 1333. Agency accountability.
Sec. 1334. Payment of subcontractors.
Sec. 1335. Repeal of Small Business Competitiveness Demonstration 
           Program.

            PART IV--Small Business Size and Status Integrity

Sec. 1341. Policy and presumptions.
Sec. 1342. Annual certification.
Sec. 1343. Training for contracting and enforcement personnel.
Sec. 1344. Updated size standards.
Sec. 1345. Study and report on the mentor-protege program.
Sec. 1346. Contracting goals reports.
Sec. 1347. Small business contracting parity.

     Subtitle D--Small Business Management and Counseling Assistance

Sec. 1401. Matching requirements under small business programs.
Sec. 1402. Grants for SBDCs.

                  Subtitle E--Disaster Loan Improvement

Sec. 1501. Aquaculture business disaster assistance.

              Subtitle F--Small Business Regulatory Relief

Sec. 1601. Requirements providing for more detailed analyses.
Sec. 1602. Office of advocacy.

                  Subtitle G--Appropriations Provisions

Sec. 1701. Salaries and expenses.
Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program 
           account.
Sec. 1704. Small business loan guarantee enhancement extensions.

                        TITLE II--TAX PROVISIONS

Sec. 2001. Short title.

                    Subtitle A--Small Business Relief

                   PART I--Providing Access to Capital

Sec. 2011. Temporary exclusion of 100 percent of gain on certain small 
           business stock.
Sec. 2012. General business credits of eligible small businesses for 
           2010 carried back 5 years.
Sec. 2013. General business credits of eligible small businesses in 2010 
           not subject to alternative minimum tax.
Sec. 2014. Temporary reduction in recognition period for built-in gains 
           tax.

                     PART II--Encouraging Investment

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain 
           real property treated as section 179 property.

[[Page 124 STAT. 2506]]

Sec. 2022. Additional first-year depreciation for 50 percent of the 
           basis of certain qualified property.
Sec. 2023. Special rule for long-term contract accounting.

                  PART III--Promoting Entrepreneurship

Sec. 2031. Increase in amount allowed as deduction for start-up 
           expenditures in 2010.
Sec. 2032. Authorization of appropriations for the United States Trade 
           Representative to develop market access opportunities for 
           United States small- and medium-sized businesses and to 
           enforce trade agreements.

               PART IV--Promoting Small Business Fairness

Sec. 2041. Limitation on penalty for failure to disclose reportable 
           transactions based on resulting tax benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
           employment taxes in 2010.
Sec. 2043. Removal of cellular telephones and similar telecommunications 
           equipment from listed property.

                     Subtitle B--Revenue Provisions

                      PART I--Reducing the Tax Gap

Sec. 2101. Information reporting for rental property expense payments.
Sec. 2102. Increase in information return penalties.
Sec. 2103. Report on tax shelter penalties and certain other enforcement 
           actions.
Sec. 2104. Application of continuous levy to tax liabilities of certain 
           Federal contractors.

                PART II--Promoting Retirement Preparation

Sec. 2111. Participants in government section 457 plans allowed to treat 
           elective deferrals as Roth contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth 
           accounts.
Sec. 2113. Special rules for annuities received from only a portion of a 
           contract.

                 PART III--Closing Unintended Loopholes

Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer 
           credit.
Sec. 2122. Source rules for income on guarantees.

         PART IV--Time for Payment of Corporate Estimated Taxes

Sec. 2131. Time for payment of corporate estimated taxes.

            TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE

Sec. 3001. Short title.
Sec. 3002. Definitions.
Sec. 3003. Federal funds allocated to States.
Sec. 3004. Approving States for participation.
Sec. 3005. Approving State capital access programs.
Sec. 3006. Approving collateral support and other innovative credit 
           access and guarantee initiatives for small businesses and 
           manufacturers.
Sec. 3007. Reports.
Sec. 3008. Remedies for State program termination or failures.
Sec. 3009. Implementation and administration.
Sec. 3010. Regulations.
Sec. 3011. Oversight and audits.

             TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS

                 Subtitle A--Small Business Lending Fund

Sec. 4101. Purpose.
Sec. 4102. Definitions.
Sec. 4103. Small business lending fund.
Sec. 4104. Additional authorities of the Secretary.
Sec. 4105. Considerations.
Sec. 4106. Reports.
Sec. 4107. Oversight and audits.
Sec. 4108. Credit reform; funding.
Sec. 4109. Termination and continuation of authorities.
Sec. 4110. Preservation of authority.
Sec. 4111. Assurances.
Sec. 4112. Study and report with respect to women-owned, veteran-owned, 
           and minority-owned businesses.

[[Page 124 STAT. 2507]]

Sec. 4113. Sense of Congress.

                      Subtitle B--Other Provisions

           PART I--Small Business Export Promotion Initiatives

Sec. 4221. Short title.
Sec. 4222. Global business development and promotion activities of the 
           Department of Commerce.
Sec. 4223. Additional funding to improve access to global markets for 
           rural businesses.
Sec. 4224. Additional funding for the ExporTech program.
Sec. 4225. Additional funding for the market development cooperator 
           program of the Department of Commerce.
Sec. 4226. Hollings Manufacturing Partnership Program; Technology 
           Innovation Program.
Sec. 4227. Sense of the Senate concerning Federal collaboration with 
           States on export promotion issues.
Sec. 4228. Report on tariff and nontariff barriers.

                         PART II--Medicare Fraud

Sec. 4241. Use of predictive modeling and other analytics technologies 
           to identify and prevent waste, fraud, and abuse in the 
           Medicare fee-for-service program.

                      TITLE V--BUDGETARY PROVISIONS

Sec. 5001. Determination of budgetary effects.

                        TITLE I--SMALL BUSINESSES

SEC. 1001. <<NOTE: 15 USC 632 note.>>  DEFINITIONS.

    In this title--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator thereof, 
        respectively; and
            (2) the term ``small business concern'' has the meaning 
        given that term under section 3 of the Small Business Act (15 
        U.S.C. 632).

Subtitle A <<NOTE: Small Business Job Creation and Access to Capital Act 
of 2010.>> --Small Business Access to Credit
SEC. 1101. <<NOTE: 15 USC 631 note.>>  SHORT TITLE.

    This subtitle may be cited as the ``Small Business Job Creation and 
Access to Capital Act of 2010''.

         PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

SEC. 1111. SECTION 7(a) BUSINESS LOANS.

    (a) Amendment.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended--
            (1) in paragraph (2)(A)--
                    (A) in clause (i), by striking ``75 percent'' and 
                inserting ``90 percent''; and
                    (B) in clause (ii), by striking ``85 percent'' and 
                inserting ``90 percent''; and
            (2) in paragraph (3)(A), by striking ``$1,500,000 (or if the 
        gross loan amount would exceed $2,000,000'' and inserting 
        ``$4,500,000 (or if the gross loan amount would exceed 
        $5,000,000''.

[[Page 124 STAT. 2508]]

    (b) <<NOTE: Effective date. 15 USC 636 note.>>  Prospective 
Repeal.--Effective January 1, 2011, section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended--
            (1) in paragraph (2)(A)--
                    (A) in clause (i), by striking ``90 percent'' and 
                inserting ``75 percent''; and
                    (B) in clause (ii), by striking ``90 percent'' and 
                inserting ``85 percent''; and
            (2) in paragraph (3)(A), by striking ``$4,500,000'' and 
        inserting ``$3,750,000''.
SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.

    Section 502(2)(A) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)(A)) is amended--
            (1) in clause (i), by striking ``$1,500,000'' and inserting 
        ``$5,000,000'';
            (2) in clause (ii), by striking ``$2,000,000'' and inserting 
        ``$5,000,000'';
            (3) in clause (iii), by striking ``$4,000,000'' and 
        inserting ``$5,500,000'';
            (4) in clause (iv), by striking ``$4,000,000'' and inserting 
        ``$5,500,000''; and
            (5) in clause (v), by striking ``$4,000,000'' and inserting 
        ``$5,500,000''.
SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.

    Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is 
amended--
            (1) in paragraph (1)(B)(iii), by striking ``$35,000'' and 
        inserting ``$50,000'';
            (2) in paragraph (3)--
                    (A) in subparagraph (C), by striking ``$3,500,000'' 
                and inserting ``$5,000,000''; and
                    (B) in subparagraph (E), by striking ``$35,000'' 
                each place that term appears and inserting ``$50,000''; 
                and
            (3) in paragraph (11)(B), by striking ``$35,000'' and 
        inserting ``$50,000''.
SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS.

    (a) Fees.--Section 501 of the American Recovery and Reinvestment Act 
of 2009 (Public Law 111-5; 123 Stat. 151) is amended by striking 
``September 30, 2010'' each place that term appears and inserting 
``December 31, 2010''.
    (b) Loan Guarantees.--Section 502(f) of division A of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 153) 
is amended by striking ``May 31, 2010'' and inserting ``December 31, 
2010''.
SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT 
                          LIMITATIONS.

    Section 355 of the Small Business Investment Act of 1958 (15 U.S.C. 
689d) is amended by adding at the end the following:
    ``(e) Investment Limitations.--
            ``(1) Definition.--In this subsection, the term `covered New 
        Markets Venture Capital company' means a New Markets Venture 
        Capital company--
                    ``(A) granted final approval by the Administrator 
                under section 354(e) on or after March 1, 2002; and

[[Page 124 STAT. 2509]]

                    ``(B) that has obtained a financing from the 
                Administrator.
            ``(2) Limitation.--Except to the extent approved by the 
        Administrator, a covered New Markets Venture Capital company may 
        not acquire or issue commitments for securities under this title 
        for any single enterprise in an aggregate amount equal to more 
        than 10 percent of the sum of--
                    ``(A) the regulatory capital of the covered New 
                Markets Venture Capital company; and
                    ``(B) the total amount of leverage projected in the 
                participation agreement of the covered New Markets 
                Venture Capital.''.
SEC. 1116. ALTERNATIVE SIZE STANDARDS.

    Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended 
by adding at the end the following:
    ``(5) Alternative Size Standard.--
            ``(A) In general.--The Administrator shall establish an 
        alternative size standard for applicants for business loans 
        under section 7(a) and applicants for development company loans 
        under title V of the Small Business Investment Act of 1958 (15 
        U.S.C. 695 et seq.), that uses maximum tangible net worth and 
        average net income as an alternative to the use of industry 
        standards.
            ``(B) Interim rule.--Until the date on which the alternative 
        size standard established under subparagraph (A) is in effect, 
        an applicant for a business loan under section 7(a) or an 
        applicant for a development company loan under title V of the 
        Small Business Investment Act of 1958 may be eligible for such a 
        loan if--
                    ``(i) the maximum tangible net worth of the 
                applicant is not more than $15,000,000; and
                    ``(ii) the average net income after Federal income 
                taxes (excluding any carry-over losses) of the applicant 
                for the 2 full fiscal years before the date of the 
                application is not more than $5,000,000.''.
SEC. 1117. SALE OF 7(a) LOANS IN SECONDARY MARKET.

    Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) is amended 
by adding at the end the following:
    ``(6) If the amount of the guaranteed portion of any loan under 
section 7(a) is more than $500,000, the Administrator shall, upon 
request of a pool assembler, divide the loan guarantee into increments 
of $500,000 and 1 increment of any remaining amount less than $500,000, 
in order to permit the maximum amount of any loan in a pool to be not 
more than $500,000. Only 1 increment of any loan guarantee divided under 
this paragraph may be included in the same pool. Increments of loan 
guarantees to different borrowers that are divided under this paragraph 
may be included in the same pool.''.
SEC. 1118. ONLINE LENDING PLATFORM.

    It is the sense of Congress that the Administrator of the Small 
Business Administration should establish a website that--
            (1) lists each lender that makes loans guaranteed by the 
        Small Business Administration and provides information about the 
        loan rates of each such lender; and

[[Page 124 STAT. 2510]]

            (2) allows prospective borrowers to compare rates on loans 
        guaranteed by the Small Business Administration.
SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.

    Section 503(f) of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 155) is amended by 
striking ``on the date 2 years after the date of enactment of this 
section'' and inserting ``2 years after the date of the first sale of a 
pool of first lien position 504 loans guaranteed under this section to a 
third-party investor''.

                PART II--SMALL BUSINESS ACCESS TO CAPITAL

SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT 
                          BUSINESS LOAN PROGRAM.

    (a) Refinancing.--Section 502(7) of the Small Business Investment 
Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the 
following:
                    ``(C) Refinancing not involving expansions.--
                          ``(i) Definitions.--In this subparagraph--
                                    ``(I) the term `borrower' means a 
                                small business concern that submits an 
                                application to a development company for 
                                financing under this subparagraph;
                                    ``(II) the term `eligible fixed 
                                asset' means tangible property relating 
                                to which the Administrator may provide 
                                financing under this section; and
                                    ``(III) the term `qualified debt' 
                                means indebtedness--
                                            ``(aa) that--
                                                ``(AA) was incurred not 
                                            less than 2 years before the 
                                            date of the application for 
                                            assistance under this 
                                            subparagraph;
                                                ``(BB) is a commercial 
                                            loan;
                                                ``(CC) is not subject to 
                                            a guarantee by a Federal 
                                            agency;
                                                ``(DD) the proceeds of 
                                            which were used to acquire 
                                            an eligible fixed asset;
                                                ``(EE) was incurred for 
                                            the benefit of the small 
                                            business concern; and
                                                ``(FF) is collateralized 
                                            by eligible fixed assets; 
                                            and
                                            ``(bb) for which the 
                                        borrower has been current on all 
                                        payments for not less than 1 
                                        year before the date of the 
                                        application.
                          ``(ii) Authority.--A project that does not 
                      involve the expansion of a small business concern 
                      may include the refinancing of qualified debt if--
                                    ``(I) the amount of the financing is 
                                not more than 90 percent of the value of 
                                the collateral for the financing, except 
                                that, if the appraised value of the 
                                eligible fixed assets serving as 
                                collateral for the financing is less 
                                than the amount equal to 125 percent of 
                                the amount of the financing, the 
                                borrower may provide additional cash or 
                                other collateral to eliminate any 
                                deficiency;

[[Page 124 STAT. 2511]]

                                    ``(II) the borrower has been in 
                                operation for all of the 2-year period 
                                ending on the date of the loan; and
                                    ``(III) for a financing for which 
                                the Administrator determines there will 
                                be an additional cost attributable to 
                                the refinancing of the qualified debt, 
                                the borrower agrees to pay a fee in an 
                                amount equal to the anticipated 
                                additional cost.
                          ``(iii) Financing for business expenses.--
                                    ``(I) Financing for business 
                                expenses.--The Administrator may provide 
                                financing to a borrower that receives 
                                financing that includes a refinancing of 
                                qualified debt under clause (ii), in 
                                addition to the refinancing under clause 
                                (ii), to be used solely for the payment 
                                of business expenses.
                                    ``(II) Application for financing.--
                                An application for financing under 
                                subclause (I) shall include--
                                            ``(aa) a specific 
                                        description of the expenses for 
                                        which the additional financing 
                                        is requested; and
                                            ``(bb) an itemization of the 
                                        amount of each expense.
                                    ``(III) Condition on additional 
                                financing.--A borrower may not use any 
                                part of the financing under this clause 
                                for non-business purposes.
                          ``(iv) Loans based on jobs.--
                                    ``(I) Job creation and retention 
                                goals.--
                                            ``(aa) In general.--The 
                                        Administrator may provide 
                                        financing under this 
                                        subparagraph for a borrower that 
                                        meets the job creation goals 
                                        under subsection (d) or (e) of 
                                        section 501.
                                            ``(bb) Alternate job 
                                        retention goal.--The 
                                        Administrator may provide 
                                        financing under this 
                                        subparagraph to a borrower that 
                                        does not meet the goals 
                                        described in item (aa) in an 
                                        amount that is not more than the 
                                        product obtained by multiplying 
                                        the number of employees of the 
                                        borrower by $65,000.
                                    ``(II) Number of employees.--For 
                                purposes of subclause (I), the number of 
                                employees of a borrower is equal to the 
                                sum of--
                                            ``(aa) the number of full-
                                        time employees of the borrower 
                                        on the date on which the 
                                        borrower applies for a loan 
                                        under this subparagraph; and
                                            ``(bb) the product obtained 
                                        by multiplying--
                                                ``(AA) the number of 
                                            part-time employees of the 
                                            borrower on the date on 
                                            which the borrower applies 
                                            for a loan under this 
                                            subparagraph; by
                                                ``(BB) the quotient 
                                            obtained by dividing the 
                                            average number of hours each 
                                            part time employee of the 
                                            borrower works each week by 
                                            40.

[[Page 124 STAT. 2512]]

                          ``(v) Nondelegation.--Notwithstanding section 
                      508(e), the Administrator may not permit a premier 
                      certified lender to approve or disapprove an 
                      application for assistance under this 
                      subparagraph.
                          ``(vi) Total amount of loans.--The 
                      Administrator may provide not more than a total of 
                      $7,500,000,000 of financing under this 
                      subparagraph for each fiscal year.''.

    (b) <<NOTE: Effective date. 15 USC 696 note.>>  Prospective 
Repeal.--Effective 2 years after the date of enactment of this Act, 
section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 
696(7)) is amended by striking subparagraph (C).

    (c) Technical Correction.--Section 502(2)(A)(i) of the Small 
Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(i)) is amended by 
striking ``subparagraph (B) or (C)'' and inserting ``clause (ii), (iii), 
(iv), or (v)''.

                         PART III--OTHER MATTERS

SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

    (a) In General.--Section 7 of the Small Business Act (15 U.S.C. 636) 
is amended by striking subsection (l) and inserting the following:
    ``(l) Small Business Intermediary Lending Pilot Program.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `eligible intermediary'--
                          ``(i) means a private, nonprofit entity that--
                                    ``(I) seeks or has been awarded a 
                                loan from the Administrator to make 
                                loans to small business concerns under 
                                this subsection; and
                                    ``(II) has not less than 1 year of 
                                experience making loans to startup, 
                                newly established, or growing small 
                                business concerns; and
                          ``(ii) includes--
                                    ``(I) a private, nonprofit community 
                                development corporation;
                                    ``(II) a consortium of private, 
                                nonprofit organizations or nonprofit 
                                community development corporations; and
                                    ``(III) an agency of or nonprofit 
                                entity established by a Native American 
                                Tribal Government; and
                    ``(B) the term `Program' means the small business 
                intermediary lending pilot program established under 
                paragraph (2).
            ``(2) Establishment.--There is established a 3-year small 
        business intermediary lending pilot program, under which the 
        Administrator may make direct loans to eligible intermediaries, 
        for the purpose of making loans to startup, newly established, 
        and growing small business concerns.
            ``(3) Purposes.--The purposes of the Program are--
                    ``(A) to assist small business concerns in areas 
                suffering from a lack of credit due to poor economic 
                conditions or changes in the financial market; and
                    ``(B) to establish a loan program under which the 
                Administrator may provide loans to eligible 
                intermediaries

[[Page 124 STAT. 2513]]

                to enable the eligible intermediaries to provide loans 
                to startup, newly established, and growing small 
                business concerns for working capital, real estate, or 
                the acquisition of materials, supplies, or equipment.
            ``(4) Loans to eligible intermediaries.--
                    ``(A) Application.--Each eligible intermediary 
                desiring a loan under this subsection shall submit an 
                application to the Administrator that describes--
                          ``(i) the type of small business concerns to 
                      be assisted;
                          ``(ii) the size and range of loans to be made;
                          ``(iii) the interest rate and terms of loans 
                      to be made;
                          ``(iv) the geographic area to be served and 
                      the economic, poverty, and unemployment 
                      characteristics of the area;
                          ``(v) the status of small business concerns in 
                      the area to be served and an analysis of the 
                      availability of credit; and
                          ``(vi) the qualifications of the applicant to 
                      carry out this subsection.
                    ``(B) Loan limits.--No loan may be made to an 
                eligible intermediary under this subsection if the total 
                amount outstanding and committed to the eligible 
                intermediary by the Administrator would, as a result of 
                such loan, exceed $1,000,000 during the participation of 
                the eligible intermediary in the Program.
                    ``(C) Loan duration.--Loans made by the 
                Administrator under this subsection shall be for a term 
                of 20 years.
                    ``(D) Applicable interest rates.--Loans made by the 
                Administrator to an eligible intermediary under the 
                Program shall bear an annual interest rate equal to 1.00 
                percent.
                    ``(E) Fees; collateral.--The Administrator may not 
                charge any fees or require collateral with respect to 
                any loan made to an eligible intermediary under this 
                subsection.
                    ``(F) Delayed payments.--The Administrator shall not 
                require the repayment of principal or interest on a loan 
                made to an eligible intermediary under the Program 
                during the 2-year period beginning on the date of the 
                initial disbursement of funds under that loan.
                    ``(G) Maximum participants and amounts.--During each 
                of fiscal years 2011, 2012, and 2013, the Administrator 
                may make loans under the Program--
                          ``(i) to not more than 20 eligible 
                      intermediaries; and
                          ``(ii) in a total amount of not more than 
                      $20,000,000.
            ``(5) Loans to small business concerns.--
                    ``(A) In general.--The Administrator, through an 
                eligible intermediary, shall make loans to startup, 
                newly established, and growing small business concerns 
                for working capital, real estate, and the acquisition of 
                materials, supplies, furniture, fixtures, and equipment.

[[Page 124 STAT. 2514]]

                    ``(B) Maximum loan.--An eligible intermediary may 
                not make a loan under this subsection of more than 
                $200,000 to any 1 small business concern.
                    ``(C) Applicable interest rates.--A loan made by an 
                eligible intermediary to a small business concern under 
                this subsection, may have a fixed or a variable interest 
                rate, and shall bear an interest rate specified by the 
                eligible intermediary in the application of the eligible 
                intermediary for a loan under this subsection.
                    ``(D) Review restrictions.--The Administrator may 
                not review individual loans made by an eligible 
                intermediary to a small business concern before approval 
                of the loan by the eligible intermediary.
            ``(6) Termination.--The authority of the Administrator to 
        make loans under the Program shall terminate 3 years after the 
        date of enactment of the Small Business Job Creation and Access 
        to Capital Act of 2010.''.

    (b) <<NOTE: Deadline. 15 USC 636 note.>>  Rulemaking Authority.--Not 
later than 180 days after the date of enactment of this Act, the 
Administrator shall issue regulations to carry out section 7(l) of the 
Small Business Act, as amended by subsection (a).

    (c) <<NOTE: 15 USC 636 note.>>  Availability of Funds.--Any amounts 
provided to the Administrator for the purposes of carrying out section 
7(l) of the Small Business Act, as amended by subsection (a), shall 
remain available until expended.
SEC. 1132. PUBLIC POLICY GOALS.

    Section 501(d)(3) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(d)(3)) is amended--
            (1) in subparagraph (J), by striking ``or'' at the end;
            (2) in subparagraph (K), by striking the period at the end 
        and inserting ``, or''; and
            (3) by adding at the end the following:
                    ``(L) reduction of rates of unemployment in labor 
                surplus areas, as such areas are determined by the 
                Secretary of Labor.''.
SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended--
            (1) by redesignating paragraph (32), relating to increased 
        veteran participation, as added by section 208 of the Military 
        Reservist and Veteran Small Business Reauthorization and 
        Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 631), as 
        paragraph (33); and
            (2) by adding at the end the following:
            ``(34) Floor plan financing program.--
                    ``(A) Definition.--In this paragraph, the term 
                `eligible retail good'--
                          ``(i) means a good for which a title may be 
                      obtained under State law; and
                          ``(ii) includes an automobile, recreational 
                      vehicle, boat, and manufactured home.
                    ``(B) Program.--The Administrator may guarantee the 
                timely payment of an open-end extension of credit to a 
                small business concern, the proceeds of which may be 
                used for the purchase of eligible retail goods for 
                resale.

[[Page 124 STAT. 2515]]

                    ``(C) Amount.--An open-end extension of credit 
                guaranteed under this paragraph shall be in an amount 
                not less than $500,000 and not more than $5,000,000.
                    ``(D) Term.--An open-end extension of credit 
                guaranteed under this paragraph shall have a term of not 
                more than 5 years.
                    ``(E) Guarantee percentage.--The Administrator may 
                guarantee--
                          ``(i) not less than 60 percent of an open-end 
                      extension of credit under this paragraph; and
                          ``(ii) not more than 75 percent of an open-end 
                      extension of credit under this paragraph.
                    ``(F) Advance rate.--The lender for an open-end 
                extension of credit guaranteed under this paragraph may 
                allow the borrower to draw funds on the line of credit 
                in an amount equal to not more than 100 percent of the 
                value of the eligible retail goods to be purchased.''.

    (b) <<NOTE: Effective date. 15 USC 636 note.>>  Sunset.--Effective 
September 30, 2013, section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended--
            (1) by striking paragraph (34); and
            (2) by redesignating paragraph (35), as added by section 
        1206 of this Act, as paragraph (34).
SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY OR 
                          ECONOMIC DEVELOPMENT PURPOSES.

    The Riegle Community Development and Regulatory Improvement Act of 
1994 (12 U.S.C. 4701 et seq.) is amended by inserting after section 114 
(12 U.S.C. 4713) the following:
``SEC. 114A. <<NOTE: 12 USC 4713a.>>  GUARANTEES FOR BONDS AND 
                          NOTES ISSUED FOR COMMUNITY OR ECONOMIC 
                          DEVELOPMENT PURPOSES.

    ``(a) Definitions.--In this section, the following definitions shall 
apply:
            ``(1) Eligible community development financial 
        institution.--The term `eligible community development financial 
        institution' means a community development financial institution 
        (as described in section 1805.201 of title 12, Code of Federal 
        Regulations, or any successor thereto) certified by the 
        Secretary that has applied to a qualified issuer for, or been 
        granted by a qualified issuer, a loan under the Program.
            ``(2) Eligible community or economic development purpose.--
        The term `eligible community or economic development purpose'--
                    ``(A) means any purpose described in section 108(b); 
                and
                    ``(B) includes the provision of community or 
                economic development in low-income or underserved rural 
                areas.
            ``(3) Guarantee.--The term `guarantee' means a written 
        agreement between the Secretary and a qualified issuer (or 
        trustee), pursuant to which the Secretary ensures repayment of 
        the verifiable losses of principal, interest, and call premium, 
        if any, on notes or bonds issued by a qualified issuer to 
        finance or refinance loans to eligible community development 
        financial institutions.
            ``(4) Loan.--The term `loan' means any credit instrument 
        that is extended under the Program for any eligible community or 
        economic development purpose.
            ``(5) Master servicer.--

[[Page 124 STAT. 2516]]

                    ``(A) In general.--The term `master servicer' means 
                any entity approved by the Secretary in accordance with 
                subparagraph (B) to oversee the activities of servicers, 
                as provided in subsection (f)(4).
                    ``(B) <<NOTE: Deadline.>>  Approval criteria for 
                master servicers.--The Secretary shall approve or deny 
                any application to become a master servicer under the 
                Program not later than 90 days after the date on which 
                all required information is submitted to the Secretary, 
                based on the capacity and experience of the applicant 
                in--
                          ``(i) loan administration, servicing, and loan 
                      monitoring;
                          ``(ii) managing regional or national loan 
                      intake, processing, or servicing operational 
                      systems and infrastructure;
                          ``(iii) managing regional or national 
                      originator communication systems and 
                      infrastructure;
                          ``(iv) developing and implementing training 
                      and other risk management strategies on a regional 
                      or national basis; and
                          ``(v) compliance monitoring, investor 
                      relations, and reporting.
            ``(6) Program.--The term `Program' means the guarantee 
        Program for bonds and notes issued for eligible community or 
        economic development purposes established under this section.
            ``(7) Program administrator.--The term `Program 
        administrator' means an entity designated by the issuer to 
        perform administrative duties, as provided in subsection (f)(2).
            ``(8) Qualified issuer.--
                    ``(A) In general.--The term `qualified issuer' means 
                a community development financial institution (or any 
                entity designated to issue notes or bonds on behalf of 
                such community development financial institution) that 
                meets the qualification requirements of this paragraph.
                    ``(B) Approval criteria for qualified issuers.--
                          ``(i) In general.--The Secretary shall approve 
                      a qualified issuer for a guarantee under the 
                      Program in accordance with the requirements of 
                      this paragraph, and such additional requirements 
                      as the Secretary may establish, by regulation.
                          ``(ii) Terms and qualifications.--A qualified 
                      issuer shall--
                                    ``(I) have appropriate expertise, 
                                capacity, and experience, or otherwise 
                                be qualified to make loans for eligible 
                                community or economic development 
                                purposes;
                                    ``(II) provide to the Secretary--
                                            ``(aa) an acceptable 
                                        statement of the proposed 
                                        sources and uses of the funds; 
                                        and
                                            ``(bb) a capital 
                                        distribution plan that meets the 
                                        requirements of subsection 
                                        (c)(1); and
                                    ``(III) <<NOTE: Certification.>>  
                                certify to the Secretary that the bonds 
                                or notes to be guaranteed are to be used 
                                for eligible community or economic 
                                development purposes.
                    ``(C) <<NOTE: Deadlines.>>  Department opinion; 
                timing.--

[[Page 124 STAT. 2517]]

                          ``(i) Department opinion.--Not later than 30 
                      days after the date of a request by a qualified 
                      issuer for approval of a guarantee under the 
                      Program, the Secretary shall provide an opinion 
                      regarding compliance by the issuer with the 
                      requirements of the Program under this section.
                          ``(ii) Timing.--The Secretary shall approve or 
                      deny a guarantee under this section after 
                      consideration of the opinion provided to the 
                      Secretary under clause (i), and in no case later 
                      than 90 days after receipt of all required 
                      information by the Secretary with respect to a 
                      request for such guarantee.
            ``(9) Secretary.--The term `Secretary' means the Secretary 
        of the Treasury.
            ``(10) Servicer.--The term `servicer' means an entity 
        designated by the issuer to perform various servicing duties, as 
        provided in subsection (f)(3).

    ``(b) Guarantees Authorized.--The Secretary shall guarantee payments 
on bonds or notes issued by any qualified issuer, if the proceeds of the 
bonds or notes are used in accordance with this section to make loans to 
eligible community development financial institutions--
            ``(1) for eligible community or economic development 
        purposes; or
            ``(2) to refinance loans or notes issued for such purposes.

    ``(c) General Program Requirements.--
            ``(1) In general.--A capital distribution plan meets the 
        requirements of this subsection, if not less than 90 percent of 
        the principal amount of guaranteed bonds or notes (other than 
        costs of issuance fees) are used to make loans for any eligible 
        community or economic development purpose, measured annually, 
        beginning at the end of the 1-year period beginning on the 
        issuance date of such guaranteed bonds or notes.
            ``(2) Relending account.--Not more than 10 percent of the 
        principal amount of guaranteed bonds or notes, multiplied by an 
        amount equal to the outstanding principal balance of issued 
        notes or bonds, minus the risk-share pool amount under 
        subsection (d), may be held in a relending account and may be 
        made available for new eligible community or economic 
        development purposes.
            ``(3) Limitations on unpaid principal balances.--The 
        proceeds of guaranteed bonds or notes under the Program may not 
        be used to pay fees (other than costs of issuance fees), and 
        shall be held in--
                    ``(A) community or economic development loans;
                    ``(B) a relending account, to the extent authorized 
                under paragraph (2); or
                    ``(C) a risk-share pool established under subsection 
                (d).
            ``(4) Repayment.--If a qualified issuer fails to meet the 
        requirements of paragraph (1) by the end of the 90-day period 
        beginning at the end of the annual measurement period, repayment 
        shall be made on that portion of bonds or notes necessary to 
        bring the bonds or notes that remain outstanding after such 
        repayment into compliance with the 90 percent requirement of 
        paragraph (1).
            ``(5) <<NOTE: Regulations.>>  Prohibited uses.--The 
        Secretary shall, by regulation--

[[Page 124 STAT. 2518]]

                    ``(A) prohibit, as appropriate, certain uses of 
                amounts from the guarantee of a bond or note under the 
                Program, including the use of such funds for political 
                activities, lobbying, outreach, counseling services, or 
                travel expenses; and
                    ``(B) provide that the guarantee of a bond or note 
                under the Program may not be used for salaries or other 
                administrative costs of--
                          ``(i) the qualified issuer; or
                          ``(ii) any recipient of amounts from the 
                      guarantee of a bond or note.

    ``(d) Risk-Share Pool.--Each qualified issuer shall, during the term 
of a guarantee provided under the Program, establish a risk-share pool, 
capitalized by contributions from eligible community development 
financial institution participants an amount equal to 3 percent of the 
guaranteed amount outstanding on the subject notes and bonds.
    ``(e) Guarantees.--
            ``(1) In general.--A guarantee issued under the Program 
        shall--
                    ``(A) be for the full amount of a bond or note, 
                including the amount of principal, interest, and call 
                premiums;
                    ``(B) be fully assignable and transferable to the 
                capital market, on terms and conditions that are 
                consistent with comparable Government-guaranteed bonds, 
                and satisfactory to the Secretary;
                    ``(C) represent the full faith and credit of the 
                United States; and
                    ``(D) not exceed 30 years.
            ``(2) Limitations.--
                    ``(A) Annual number of guarantees.--The Secretary 
                shall issue not more than 10 guarantees in any calendar 
                year under the Program.
                    ``(B) Guarantee amount.--The Secretary may not 
                guarantee any amount under the Program equal to less 
                than $100,000,000, but the total of all such guarantees 
                in any fiscal year may not exceed $1,000,000,000.

    ``(f) Servicing of Transactions.--
            ``(1) In general.--To maximize efficiencies and minimize 
        cost and interest rates, loans made under this section may be 
        serviced by qualified Program administrators, bond servicers, 
        and a master servicer.
            ``(2) Duties of program administrator.--The duties of a 
        Program administrator shall include--
                    ``(A) approving and qualifying eligible community 
                development financial institution applications for 
                participation in the Program;
                    ``(B) compliance monitoring;
                    ``(C) bond packaging in connection with the Program; 
                and
                    ``(D) all other duties and related services that are 
                customarily expected of a Program administrator.
            ``(3) Duties of servicer.--The duties of a servicer shall 
        include--
                    ``(A) billing and collecting loan payments;
                    ``(B) initiating collection activities on past-due 
                loans;

[[Page 124 STAT. 2519]]

                    ``(C) transferring loan payments to the master 
                servicing accounts;
                    ``(D) loan administration and servicing;
                    ``(E) systematic and timely reporting of loan 
                performance through remittance and servicing reports;
                    ``(F) proper measurement of annual outstanding loan 
                requirements; and
                    ``(G) all other duties and related services that are 
                customarily expected of servicers.
            ``(4) Duties of master servicer.--The duties of a master 
        servicer shall include--
                    ``(A) tracking the movement of funds between the 
                accounts of the master servicer and any other servicer;
                    ``(B) ensuring orderly receipt of the monthly 
                remittance and servicing reports of the servicer;
                    ``(C) monitoring the collection comments and 
                foreclosure actions;
                    ``(D) aggregating the reporting and distribution of 
                funds to trustees and investors;
                    ``(E) removing and replacing a servicer, as 
                necessary;
                    ``(F) loan administration and servicing;
                    ``(G) systematic and timely reporting of loan 
                performance compiled from all bond servicers' reports;
                    ``(H) proper distribution of funds to investors; and
                    ``(I) all other duties and related services that are 
                customarily expected of a master servicer.

    ``(g) Fees.--
            ``(1) In general.--A qualified issuer that receives a 
        guarantee issued under this section on a bond or note shall pay 
        a fee to the Secretary, in an amount equal to 10 basis points of 
        the amount of the unpaid principal of the bond or note 
        guaranteed.
            ``(2) Payment.--A qualified issuer shall pay the fee 
        required under this subsection on an annual basis.
            ``(3) Use of fees.--Fees collected by the Secretary under 
        this subsection shall be used to reimburse the Department of the 
        Treasury for any administrative costs incurred by the Department 
        in implementing the Program established under this section.

    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to the Secretary, such sums as are necessary to carry out this 
        section.
            ``(2) Use of fees.--To the extent that the amount of funds 
        appropriated for a fiscal year under paragraph (1) are not 
        sufficient to carry out this section, the Secretary may use the 
        fees collected under subsection (g) for the cost of providing 
        guarantees of bonds and notes under this section.

    ``(i) Investment in Guaranteed Bonds Ineligible for Community 
Reinvestment Act Purposes.--Notwithstanding any other provision of law, 
any investment by a financial institution in bonds or notes guaranteed 
under the Program shall not be taken into account in assessing the 
record of such institution for purposes of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2901).
    ``(j) <<NOTE: Deadlines.>>  Administration.--

[[Page 124 STAT. 2520]]

            ``(1) Regulations.--Not later than 1 year after the date of 
        enactment of this section, the Secretary shall promulgate 
        regulations to carry out this section.
            ``(2) Implementation.--Not later than 2 years after the date 
        of enactment of this section, the Secretary shall implement this 
        section.

    ``(k) <<NOTE: Repeal.>>  Termination.--This section is repealed, and 
the authority provided under this section shall terminate, on September 
30, 2014.''.
SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.

    (a) In General.--Section 7(a)(31)(D) of the Small Business Act (15 
U.S.C. 636(a)(31)(D)) is amended by striking ``$350,000'' and inserting 
``$1,000,000''.
    (b) <<NOTE: Effective date. 15 USC 636 note.>>  Prospective 
Repeal.--Effective 1 year after the date of enactment of this Act, 
section 7(a)(31)(D) of the Small Business Act (15 U.S.C. 636(a)(31)(D)) 
is amended by striking ``$1,000,000'' and inserting ``$350,000''.
SEC. 1136. <<NOTE: 15 USC 632 note.>>  PROHIBITION ON USING TARP 
                          FUNDS OR TAX INCREASES.

    (a) In General.--Except as provided in subsection (b), nothing in 
section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 1118, 1122, or 1131, 
or an amendment made by such sections, shall be construed to limit the 
ability of Congress to appropriate funds.
    (b) TARP Funds and Tax Increases.--
            (1) In general.--Any covered amounts may not be used to 
        carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
        1118, 1122, or 1131, or an amendment made by such sections.
            (2) Definition.--In this subsection, the term ``covered 
        amounts'' means--
                    (A) the amounts made available to the Secretary of 
                the Treasury under title I of the Emergency Economic 
                Stabilization Act of 2008 S.C. 5201 et seq.) to purchase 
                (under section 101) or guarantee (under section 102) 
                assets under that Act; and
                    (B) any revenue increase attributable to any 
                amendment to the Internal Revenue Code of 1986 made 
                during the period beginning on the date of enactment of 
                this Act and ending on December 31, 2010.

 Subtitle B <<NOTE: Small Business Export Enhancement and International 
Trade Act of 2010.>> --Small Business Trade and Exporting
SEC. 1201. <<NOTE: 15 USC 631 note.>>  SHORT TITLE.

    This subtitle may be cited as the ``Small Business Export 
Enhancement and International Trade Act of 2010''.
SEC. 1202. <<NOTE: 15 USC 649b note.>>  DEFINITIONS.

    (a) Definitions.--In this subtitle--
            (1) the term ``Associate Administrator'' means the Associate 
        Administrator for International Trade appointed under section 
        22(a)(2) of the Small Business Act, as amended by this subtitle;
            (2) the term ``Export Assistance Center'' means a one-stop 
        shop referred to in section 2301(b)(8) of the Omnibus Trade and 
        Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); and

[[Page 124 STAT. 2521]]

            (3) the term ``rural small business concern'' means a small 
        business concern located in a rural area, as that term is 
        defined in section 1393(a)(2) of the Internal Revenue Code of 
        1986.

    (b) Technical and Conforming Amendments.--
            (1) Definitions.--Section 3 of the Small Business Act (15 
        U.S.C. 632) is amended by adding at the end the following:

    ``(t) Small Business Development Center.--In this Act, the term 
`small business development center' means a small business development 
center described in section 21.
    ``(u) Region of the Administration.--In this Act, the term `region 
of the Administration' means the geographic area served by a regional 
office of the Administration established under section 4(a).''.
            (2) Conforming amendment.--Section 4(b)(3)(B)(x) of the 
        Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by 
        striking ``Administration district and region'' and inserting 
        ``district and region of the Administration''.
SEC. 1203. OFFICE OF INTERNATIONAL TRADE.

    (a) Establishment.--Section 22 of the Small Business Act (15 U.S.C. 
649) is amended--
            (1) by striking ``Sec. 22. (a) There'' and inserting the 
        following:
``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

    ``(a) Establishment.--
            ``(1) Office.--There''; and
            (2) in subsection (a)--
                    (A) in paragraph (1), as so designated, by striking 
                the period and inserting ``for the primary purposes of 
                increasing--
                    ``(A) the number of small business concerns that 
                export; and
                    ``(B) the volume of exports by small business 
                concerns.''; and
                    (B) by adding at the end the following:
            ``(2) Associate administrator.--The head of the Office shall 
        be the Associate Administrator for International Trade, who 
        shall be responsible to the Administrator.''.

    (b) Authority for Additional Associate Administrator.--Section 
4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--
            (1) in the fifth sentence, by striking ``five Associate 
        Administrators'' and inserting ``Associate Administrators''; and
            (2) by adding at the end the following: ``One such Associate 
        Administrator shall be the Associate Administrator for 
        International Trade, who shall be the head of the Office of 
        International Trade established under section 22.''.

    (c) Discharge of International Trade Responsibilities of 
Administration.--Section 22 of the Small Business Act (15 U.S.C. 649) is 
amended by adding at the end the following:
    ``(h) Discharge of International Trade Responsibilities of 
Administration.--The Administrator shall ensure that--
            ``(1) the responsibilities of the Administration regarding 
        international trade are carried out by the Associate 
        Administrator;
            ``(2) the Associate Administrator has sufficient resources 
        to carry out such responsibilities; and

[[Page 124 STAT. 2522]]

            ``(3) the Associate Administrator has direct supervision and 
        control over--
                    ``(A) the staff of the Office; and
                    ``(B) any employee of the Administration whose 
                principal duty station is an Export Assistance Center, 
                or any successor entity.''.

    (d) Role of Associate Administrator in Carrying Out International 
Trade Policy.--Section 2(b)(1) of the Small Business Act (15 U.S.C. 
631(b)(1)) is amended in the matter preceding subparagraph (A)--
            (1) by inserting ``the Administrator of'' before ``the Small 
        Business Administration''; and
            (2) by inserting ``through the Associate Administrator for 
        International Trade, and'' before ``in cooperation with''.

    (e) <<NOTE: Appointment. 15 USC 649 note.>>  Implementation Date.--
Not later than 90 days after the date of enactment of this Act, the 
Administrator of the Small Business Administration shall appoint an 
Associate Administrator for International Trade under section 22(a) of 
the Small Business Act (15 U.S.C. 649(a)), as added by this section.
SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.

    (a) Amendments to Section 22.--Section 22 of the Small Business Act 
(15 U.S.C. 649) is amended--
            (1) by striking subsection (b) and inserting the following:

    ``(b) Trade Distribution Network.--The Associate Administrator, 
working in close cooperation with the Secretary of Commerce, the United 
States Trade Representative, the Secretary of Agriculture, the Secretary 
of State, the President of the Export-Import Bank of the United States, 
the President of the Overseas Private Investment Corporation, Director 
of the United States Trade and Development Agency, and other relevant 
Federal agencies, small business development centers engaged in export 
promotion efforts, Export Assistance Centers, regional and district 
offices of the Administration, the small business community, and 
relevant State and local export promotion programs, shall--
            ``(1) maintain a distribution network, using regional and 
        district offices of the Administration, the small business 
        development center network, networks of women's business 
        centers, the Service Corps of Retired Executives authorized by 
        section 8(b)(1), and Export Assistance Centers, for programs 
        relating to--
                    ``(A) trade promotion;
                    ``(B) trade finance;
                    ``(C) trade adjustment assistance;
                    ``(D) trade remedy assistance; and
                    ``(E) trade data collection;
            ``(2) aggressively market the programs described in 
        paragraph (1) and disseminate information, including 
        computerized marketing data, to small business concerns on 
        exporting trends, market-specific growth, industry trends, and 
        international prospects for exports;
            ``(3) promote export assistance programs through the 
        district and regional offices of the Administration, the small 
        business development center network, Export Assistance Centers, 
        the network of women's business centers, chapters of the Service 
        Corps of Retired Executives, State and local export promotion 
        programs, and partners in the private sector; and

[[Page 124 STAT. 2523]]

            ``(4) give preference in hiring or approving the transfer of 
        any employee into the Office or to a position described in 
        subsection (c)(9) to otherwise qualified applicants who are 
        fluent in a language in addition to English, to--
                    ``(A) accompany small business concerns on foreign 
                trade missions; and
                    ``(B) translate documents, interpret conversations, 
                and facilitate multilingual transactions, including by 
                providing referral lists for translation services, if 
                required.'';
            (2) in subsection (c)--
                    (A) by striking ``(c) The Office'' and inserting the 
                following:

    ``(c) Promotion of Sales Opportunities.--The Associate 
Administrator'';
                    (B) by redesignating paragraphs (1) through (8) as 
                paragraphs (2) through (9), respectively;
                    (C) by inserting before paragraph (2), as so 
                redesignated, the following:
            ``(1) establish annual goals for the Office relating to--
                    ``(A) enhancing the exporting capability of small 
                business concerns and small manufacturers;
                    ``(B) facilitating technology transfers;
                    ``(C) enhancing programs and services to assist 
                small business concerns and small manufacturers to 
                compete effectively and efficiently in foreign markets;
                    ``(D) increasing the ability of small business 
                concerns to access capital; and
                    ``(E) disseminating information concerning Federal, 
                State, and private programs and initiatives;'';
                    (D) in paragraph (2), as so redesignated, by 
                striking ``mechanism for'' and all that follows through 
                ``(D) assisting'' and inserting the following: 
                ``mechanism for--
                    ``(A) identifying subsectors of the small business 
                community with strong export potential;
                    ``(B) identifying areas of demand in foreign 
                markets;
                    ``(C) prescreening foreign buyers for commercial and 
                credit purposes; and
                    ``(D) assisting'';
                    (E) in paragraph (3), as so redesignated, by 
                striking ``assist small businesses in the formation and 
                utilization of'' and inserting ``assist small business 
                concerns in forming and using'';
                    (F) in paragraph (4), as so redesignated--
                          (i) by striking ``local'' and inserting 
                      ``district'';
                          (ii) by striking ``existing'';
                          (iii) by striking ``Small Business Development 
                      Center network'' and inserting ``small business 
                      development center network''; and
                          (iv) by striking ``Small Business Development 
                      Center Program'' and inserting ``small business 
                      development center program'';
                    (G) in paragraph (5), as so redesignated--
                          (i) in subparagraph (A), by striking ``Gross 
                      State Produce'' and inserting ``Gross State 
                      Product'';
                          (ii) in subparagraph (B), by striking ``SIC'' 
                      each place it appears and inserting ``North 
                      American Industry Classification System''; and

[[Page 124 STAT. 2524]]

                          (iii) in subparagraph (C), by striking ``small 
                      businesses'' and inserting ``small business 
                      concerns'';
                    (H) in paragraph (6), as so redesignated, by 
                striking the period at the end and inserting a 
                semicolon;
                    (I) in paragraph (7), as so redesignated--
                          (i) in the matter preceding subparagraph (A)--
                                    (I) by inserting ``concerns'' after 
                                ``small business''; and
                                    (II) by striking ``current'' and 
                                inserting ``up to date'';
                          (ii) in subparagraph (A), by striking 
                      ``Administration's regional offices'' and 
                      inserting ``regional and district offices of the 
                      Administration'';
                          (iii) in subparagraph (B) by striking 
                      ``current'';
                          (iv) in subparagraph (C), by striking 
                      ``current''; and
                          (v) by striking ``small businesses'' each 
                      place that term appears and inserting ``small 
                      business concerns'';
                    (J) in paragraph (8), as so redesignated, by 
                striking and at the end;
                    (K) in paragraph (9), as so redesignated--
                          (i) in the matter preceding subparagraph (A)--
                                    (I) by striking ``full-time export 
                                development specialists to each 
                                Administration regional office and 
                                assigning''; and
                                    (II) by striking ``person in each 
                                district office. Such specialists'' and 
                                inserting ``individual in each district 
                                office and providing each Administration 
                                regional office with a full-time export 
                                development specialist, who'';
                          (ii) in subparagraph (B)--
                                    (I) by striking ``current''; and
                                    (II) by striking ``with'' and 
                                inserting ``in'';
                          (iii) in subparagraph (D)--
                                    (I) by striking ``Administration 
                                personnel involved in granting'' and 
                                inserting ``personnel of the 
                                Administration involved in making''; and
                                    (II) by striking ``and'' at the end;
                          (iv) in subparagraph (E)--
                                    (I) by striking ``small businesses' 
                                needs'' and inserting ``the needs of 
                                small business concerns''; and
                                    (II) by striking the period at the 
                                end and inserting a semicolon;
                          (v) by adding at the end the following:
                    ``(F) participate, jointly with employees of the 
                Office, in an annual training program that focuses on 
                current small business needs for exporting; and
                    ``(G) develop and conduct training programs for 
                exporters and lenders, in cooperation with the Export 
                Assistance Centers, the Department of Commerce, the 
                Department of Agriculture, small business development 
                centers, women's business centers, the Export-Import 
                Bank of the United States, the Overseas Private 
                Investment Corporation, and other relevant Federal 
                agencies;''; and

[[Page 124 STAT. 2525]]

                          (vi) by striking ``small businesses'' each 
                      place that term appears and inserting ``small 
                      business concerns''; and
                    (L) by adding at the end the following:
            ``(10) <<NOTE: Web posting.>>  make available on the website 
        of the Administration the name and contact information of each 
        individual described in paragraph (9);
            ``(11) carry out a nationwide marketing effort using 
        technology, online resources, training, and other strategies to 
        promote exporting as a business development opportunity for 
        small business concerns;
            ``(12) disseminate information to the small business 
        community through regional and district offices of the 
        Administration, the small business development center network, 
        Export Assistance Centers, the network of women's business 
        centers, chapters of the Service Corps of Retired Executives 
        authorized by section 8(b)(1), State and local export promotion 
        programs, and partners in the private sector regarding exporting 
        trends, market-specific growth, industry trends, and prospects 
        for exporting; and
            ``(13) establish and carry out training programs for the 
        staff of the regional and district offices of the Administration 
        and resource partners of the Administration on export promotion 
        and providing assistance relating to exports.'';
            (3) in subsection (d)--
                    (A) by redesignating paragraphs (1) through (5) as 
                clauses (i) through (v), respectively, and adjusting the 
                margins accordingly;
                    (B) by striking ``(d) The Office'' and inserting the 
                following:

    ``(d) Export Financing Programs.--
            ``(1) In general.--The Associate Administrator''; and
                    (C) by striking ``To accomplish this goal, the 
                Office shall work'' and inserting the following:
            ``(2) <<NOTE: Designation.>>  Trade finance specialist.--To 
        accomplish the goal established under paragraph (1), the 
        Associate Administrator shall--
                    ``(A) designate at least 1 individual within the 
                Administration as a trade finance specialist to oversee 
                international loan programs and assist Administration 
                employees with trade finance issues; and
                    ``(B) work'';
            (4) in subsection (e), by striking ``(e) The Office'' and 
        inserting the following:

    ``(e) Trade Remedies.--The Associate Administrator'';
            (5) by amending subsection (f) to read as follows:

    ``(f) Reporting Requirement.--The Associate Administrator shall 
submit an annual report to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small Business of 
the House of Representatives that contains--
            ``(1) a description of the progress of the Office in 
        implementing the requirements of this section;
            ``(2) a detailed account of the results of export growth 
        activities of the Administration, including the activities of 
        each district and regional office of the Administration, based 
        on the performance measures described in subsection (i);

[[Page 124 STAT. 2526]]

            ``(3) an estimate of the total number of jobs created or 
        retained as a result of export assistance provided by the 
        Administration and resource partners of the Administration;
            ``(4) for any travel by the staff of the Office, the 
        destination of such travel and the benefits to the 
        Administration and to small business concerns resulting from 
        such travel; and
            ``(5) a description of the participation by the Office in 
        trade negotiations.'';
            (6) in subsection (g), by striking ``(g) The Office'' and 
        inserting the following:

    ``(g) Studies.--The Associate Administrator''; and
            (7) by adding after subsection (h), as added by section 1203 
        of this subtitle, the following:

    ``(i) Export and Trade Counseling.--
            ``(1) Definition.--In this subsection--
                    ``(A) the term `lead small business development 
                center' means a small business development center that 
                has received a grant from the Administration; and
                    ``(B) the term `lead women's business center' means 
                a women's business center that has received a grant from 
                the Administration.
            ``(2) Certification program.--The Administrator shall 
        establish an export and trade counseling certification program 
        to certify employees of lead small business development centers 
        and lead women's business centers in providing export assistance 
        to small business concerns.
            ``(3) Number of certified employees.--The Administrator 
        shall ensure that the number of employees of each lead small 
        business development center who are certified in providing 
        export assistance is not less than the lesser of--
                    ``(A) 5; or
                    ``(B) 10 percent of the total number of employees of 
                the lead small business development center.
            ``(4) Reimbursement for certification.--
                    ``(A) In general.--Subject to the availability of 
                appropriations, the Administrator shall reimburse a lead 
                small business development center or a lead women's 
                business center for costs relating to the certification 
                of an employee of the lead small business center or lead 
                women's business center in providing export assistance 
                under the program established under paragraph (2).
                    ``(B) Limitation.--The total amount reimbursed by 
                the Administrator under subparagraph (A) may not exceed 
                $350,000 in any fiscal year.

    ``(j) Performance Measures.--
            ``(1) In general.--The Associate Administrator shall develop 
        performance measures for the Administration to support export 
        growth goals for the activities of the Office under this section 
        that include--
                    ``(A) the number of small business concerns that--
                          ``(i) receive assistance from the 
                      Administration;
                          ``(ii) had not exported goods or services 
                      before receiving the assistance described in 
                      clause (i); and
                          ``(iii) export goods or services;
                    ``(B) the number of small business concerns 
                receiving assistance from the Administration that export 
                goods or services to a market outside the United States 
                into which

[[Page 124 STAT. 2527]]

                the small business concern did not export before 
                receiving the assistance;
                    ``(C) export revenues by small business concerns 
                assisted by programs of the Administration;
                    ``(D) the number of small business concerns referred 
                to an Export Assistance Center or a small business 
                development center by the staff of the Office;
                    ``(E) the number of small business concerns referred 
                to the Administration by an Export Assistance Center or 
                a small business development center; and
                    ``(F) the number of small business concerns referred 
                to the Department of Commerce, the Department of 
                Agriculture, the Department of State, the Export-Import 
                Bank of the United States, the Overseas Private 
                Investment Corporation, or the United States Trade and 
                Development Agency by the staff of the Office, an Export 
                Assistance Center, or a small business development 
                center.
            ``(2) Joint performance measures.--The Associate 
        Administrator shall develop joint performance measures for the 
        district offices of the Administration and the Export Assistance 
        Centers that include the number of export loans made under--
                    ``(A) section 7(a)(16);
                    ``(B) the Export Working Capital Program established 
                under section 7(a)(14);
                    ``(C) the Preferred Lenders Program, as defined in 
                section 7(a)(2)(C)(ii); and
                    ``(D) the export express program established under 
                section 7(a)(34).
            ``(3) Consistency of tracking.--The Associate Administrator, 
        in coordination with the departments and agencies that are 
        represented on the Trade Promotion Coordinating Committee 
        established under section 2312 of the Export Enhancement Act of 
        1988 (15 U.S.C. 4727) and the small business development center 
        network, shall develop a system to track exports by small 
        business concerns, including information relating to the 
        performance measures developed under paragraph (1), that is 
        consistent with systems used by the departments and agencies and 
        the network.''.

    (b) Report.--Not later than 60 days after the date of enactment of 
this Act, the Administrator shall submit a report to the Committee on 
Small Business and Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives on any travel by the 
staff of the Office of International Trade of the Administration, during 
the period beginning on October 1, 2004, and ending on the date of 
enactment of the Act, including the destination of such travel and the 
benefits to the Administration and to small business concerns resulting 
from such travel.
SEC. 1205. EXPORT ASSISTANCE CENTERS.

    (a) Export Assistance Centers.--Section 22 of the Small Business Act 
(15 U.S.C. 649), as amended by this subtitle, is amended by adding at 
the end the following:
    ``(k) Export Assistance Centers.--
            ``(1) <<NOTE: Deadlines.>>  Export finance specialists.--
                    ``(A) Minimum number of export finance 
                specialists.--On and after the date that is 90 days 
                after the

[[Page 124 STAT. 2528]]

                date of enactment of this subsection, the Administrator, 
                in coordination with the Secretary of Commerce, shall 
                ensure that the number of export finance specialists is 
                not less than the number of such employees so assigned 
                on January 1, 2003.
                    ``(B) Export finance specialists assigned to each 
                region of the administration.--On and after the date 
                that is 2 years after the date of enactment of this 
                subsection, the Administrator, in coordination with the 
                Secretary of Commerce, shall ensure that there are not 
                fewer than 3 export finance specialists in each region 
                of the Administration.
            ``(2) Placement of export finance specialists.--
                    ``(A) Priority.--The Administrator shall give 
                priority, to the maximum extent practicable, to placing 
                employees of the Administration at any Export Assistance 
                Center that--
                          ``(i) had an Administration employee assigned 
                      to the Export Assistance Center before January 
                      2003; and
                          ``(ii) <<NOTE: Time period.>>  has not had an 
                      Administration employee assigned to the Export 
                      Assistance Center during the period beginning 
                      January 2003, and ending on the date of enactment 
                      of this subsection, either through retirement or 
                      reassignment.
                    ``(B) Needs of exporters.--The Administrator shall, 
                to the maximum extent practicable, strategically assign 
                Administration employees to Export Assistance Centers, 
                based on the needs of exporters.
                    ``(C) Rule of construction.--Nothing in this 
                subsection may be construed to require the Administrator 
                to reassign or remove an export finance specialist who 
                is assigned to an Export Assistance Center on the date 
                of enactment of this subsection.
            ``(3) Goals.--The Associate Administrator shall work with 
        the Department of Commerce, the Export-Import Bank of the United 
        States, and the Overseas Private Investment Corporation to 
        establish shared annual goals for the Export Assistance Centers.
            ``(4) <<NOTE: Designation.>>  Oversight.--The Associate 
        Administrator shall designate an individual within the 
        Administration to oversee all activities conducted by 
        Administration employees assigned to Export Assistance Centers.

    ``(l) Definitions.--In this section--
            ``(1) the term `Associate Administrator' means the Associate 
        Administrator for International Trade described in subsection 
        (a)(2);
            ``(2) the term `Export Assistance Center' means a one-stop 
        shop for United States exporters established by the United 
        States and Foreign Commercial Service of the Department of 
        Commerce pursuant to section 2301(b)(8) of the Omnibus Trade and 
        Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
            ``(3) the term `export finance specialist' means a full-time 
        equivalent employee of the Office assigned to an Export 
        Assistance Center to carry out the duties described in 
        subsection (e); and

[[Page 124 STAT. 2529]]

            ``(4) the term `Office' means the Office of International 
        Trade established under subsection (a)(1).''.

    (b) <<NOTE: 15 USC 649 note.>>  Study and Report on Filling Gaps in 
High-and-Low-Export Volume Areas.--
            (1) Study and report.--Not later than 6 months after the 
        date of enactment of this Act, and every 2 years thereafter, the 
        Administrator shall--
                    (A) conduct a study of--
                          (i) the volume of exports for each State;
                          (ii) the availability of export finance 
                      specialists in each State;
                          (iii) the number of exporters in each State 
                      that are small business concerns;
                          (iv) the percentage of exporters in each State 
                      that are small business concerns;
                          (v) the change, if any, in the number of 
                      exporters that are small business concerns in each 
                      State--
                                    (I) for the first study conducted 
                                under this subparagraph, during the 10-
                                year period ending on the date of 
                                enactment of this Act; and
                                    (II) for each subsequent study, 
                                during the 10-year period ending on the 
                                date the study is commenced;
                          (vi) the total value of the exports in each 
                      State by small business concerns;
                          (vii) the percentage of the total volume of 
                      exports in each State that is attributable to 
                      small business concerns; and
                          (viii) the change, if any, in the percentage 
                      of the total volume of exports in each State that 
                      is attributable to small business concerns--
                                    (I) for the first study conducted 
                                under this subparagraph, during the 10-
                                year period ending on the date of 
                                enactment of this Act; and
                                    (II) for each subsequent study, 
                                during the 10-year period ending on the 
                                date the study is commenced; and
                    (B) submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives a report 
                containing--
                          (i) the results of the study under 
                      subparagraph (A);
                          (ii) to the extent practicable, a 
                      recommendation regarding how to eliminate gaps 
                      between the supply of and demand for export 
                      finance specialists in the 15 States that have the 
                      greatest volume of exports, based upon the most 
                      recent data available from the Department of 
                      Commerce;
                          (iii) to the extent practicable, a 
                      recommendation regarding how to eliminate gaps 
                      between the supply of and demand for export 
                      finance specialists in the 15 States that have the 
                      lowest volume of exports, based upon the most 
                      recent data available from the Department of 
                      Commerce; and
                          (iv) such additional information as the 
                      Administrator determines is appropriate.

[[Page 124 STAT. 2530]]

            (2) Definition.--In this subsection, the term ``export 
        finance specialist'' has the meaning given that term in section 
        22(l) of the Small Business Act, as added by this title.
SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.

    (a) Loan Limits.--
            (1) Total amount outstanding.--Section 7(a)(3)(B) of the 
        Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by 
        striking ``$1,750,000, of which not more than $1,250,000'' and 
        inserting ``$4,500,000 (or if the gross loan amount would exceed 
        $5,000,000), of which not more than $4,000,000''.
            (2) Participation.--Section 7(a)(2) of the Small Business 
        Act (15 U.S.C. 636(a)(2)) is amended--
                    (A) in subparagraph (A), in the matter preceding 
                clause (i), by striking ``subparagraph (B)'' and 
                inserting ``subparagraphs (B), (D), and (E)'';
                    (B) in subparagraph (D), by striking 
                ``Notwithstanding subparagraph (A), in'' and inserting 
                ``In''; and
                    (C) by adding at the end the following:
                    ``(E) Participation in international trade loan.--In 
                an agreement to participate in a loan on a deferred 
                basis under paragraph (16), the participation by the 
                Administration may not exceed 90 percent.''.

    (b) Working Capital.--Section 7(a)(16)(A) of the Small Business Act 
(15 U.S.C. 636(a)(16)(A)) is amended--
            (1) in the matter preceding clause (i), by striking ``in--'' 
        and inserting ``--'';
            (2) in clause (i)--
                    (A) by inserting ``in'' after ``(i)''; and
                    (B) by striking ``or'' at the end;
            (3) in clause (ii)--
                    (A) by inserting ``in'' after ``(ii)''; and
                    (B) by striking the period at the end and inserting 
                ``, including any debt that qualifies for refinancing 
                under any other provision of this subsection; or''; and
            (4) by adding at the end the following:
                          ``(iii) by providing working capital.''.

    (c) Collateral.--Section 7(a)(16)(B) of the Small Business Act (15 
U.S.C. 636(a)(16)(B)) is amended--
            (1) by striking ``Each loan'' and inserting the following:
                          ``(i) In general.--Except as provided in 
                      clause (ii), each loan''; and
            (2) by adding at the end the following:
                          ``(ii) Exception.--A loan under this paragraph 
                      may be secured by a second lien position on the 
                      property or equipment financed by the loan or on 
                      other assets of the small business concern, if the 
                      Administrator determines the lien provides 
                      adequate assurance of the payment of the loan.''.

    (d) Export Working Capital Program.--Section 7(a) of the Small 
Business Act (15 U.S.C. 636(a)) is amended--
            (1) in paragraph (2)(D), by striking ``not exceed'' and 
        inserting ``be''; and
            (2) in paragraph (14)--
                    (A) by striking ``(A) The Administration'' and 
                inserting the following: ``Export working capital 
                program.--
                    ``(A) In general.--The Administrator'';

[[Page 124 STAT. 2531]]

                    (B) by striking ``(B) When considering'' and 
                inserting the following:
                    ``(C) Considerations.--When considering'';
                    (C) by striking ``(C) The Administration'' and 
                inserting the following:
                    ``(D) Marketing.--The Administrator''; and
                    (D) by inserting after subparagraph (A) the 
                following:
                    ``(B) Terms.--
                          ``(i) Loan amount.--The Administrator may not 
                      guarantee a loan under this paragraph of more than 
                      $5,000,000.
                          ``(ii) Fees.--
                                    ``(I) In general.--For a loan under 
                                this paragraph, the Administrator shall 
                                collect the fee assessed under paragraph 
                                (23) not more frequently than once each 
                                year.
                                    ``(II) Untapped credit.--The 
                                Administrator may not assess a fee on 
                                capital that is not accessed by the 
                                small business concern.''.

    (e) Participation in Preferred Lenders Program.--Section 7(a)(2)(C) 
of the Small Business Act (15 U.S.C. 636(a)(2)(C)) is amended--
            (1) by redesignating clause (ii) as clause (iii); and
            (2) by inserting after clause (i) the following:
                          ``(ii) Export-import bank lenders.--Any lender 
                      that is participating in the Delegated Authority 
                      Lender Program of the Export-Import Bank of the 
                      United States (or any successor to the Program) 
                      shall be eligible to participate in the Preferred 
                      Lenders Program.''.

    (f) Export Express Program.--Section 7(a) of the Small Business Act 
(15 U.S.C. 636(a)) is amended by adding at the end the following:
            ``(35) Export express program.--
                    ``(A) Definitions.--In this paragraph--
                          ``(i) the term `export development activity' 
                      includes--
                                    ``(I) obtaining a standby letter of 
                                credit when required as a bid bond, 
                                performance bond, or advance payment 
                                guarantee;
                                    ``(II) participation in a trade show 
                                that takes place outside the United 
                                States;
                                    ``(III) translation of product 
                                brochures or catalogues for use in 
                                markets outside the United States;
                                    ``(IV) obtaining a general line of 
                                credit for export purposes;
                                    ``(V) performing a service contract 
                                from buyers located outside the United 
                                States;
                                    ``(VI) obtaining transaction-
                                specific financing associated with 
                                completing export orders;
                                    ``(VII) purchasing real estate or 
                                equipment to be used in the production 
                                of goods or services for export;
                                    ``(VIII) providing term loans or 
                                other financing to enable a small 
                                business concern, including an

[[Page 124 STAT. 2532]]

                                export trading company and an export 
                                management company, to develop a market 
                                outside the United States; and
                                    ``(IX) acquiring, constructing, 
                                renovating, modernizing, improving, or 
                                expanding a production facility or 
                                equipment to be used in the United 
                                States in the production of goods or 
                                services for export; and
                          ``(ii) the term `express loan' means a loan in 
                      which a lender uses to the maximum extent 
                      practicable the loan analyses, procedures, and 
                      documentation of the lender to provide expedited 
                      processing of the loan application.
                    ``(B) Authority.--The Administrator may guarantee 
                the timely payment of an express loan to a small 
                business concern made for an export development 
                activity.
                    ``(C) Level of participation.--
                          ``(i) Maximum amount.--The maximum amount of 
                      an express loan guaranteed under this paragraph 
                      shall be $500,000.
                          ``(ii) Percentage.--For an express loan 
                      guaranteed under this paragraph, the Administrator 
                      shall guarantee--
                                    ``(I) 90 percent of a loan that is 
                                not more than $350,000; and
                                    ``(II) 75 percent of a loan that is 
                                more than $350,000 and not more than 
                                $500,000.''.

    (g) Annual Listing of Export Finance Lenders.--Section 7(a)(16) of 
the Small Business Act (15 U.S.C. 636(a)(16)) is amended by adding at 
the end the following:
                    ``(F) List of export finance lenders.--
                          ``(i) Publication of list required.--The 
                      Administrator shall publish an annual list of the 
                      banks and participating lending institutions that, 
                      during the 1-year period ending on the date of 
                      publication of the list, have made loans 
                      guaranteed by the Administration under--
                                    ``(I) this paragraph;
                                    ``(II) paragraph (14); or
                                    ``(III) paragraph (34).
                          ``(ii) Availability of list.--The 
                      Administrator shall--
                                    ``(I) <<NOTE: Web posting.>>  post 
                                the list published under clause (i) on 
                                the website of the Administration; and
                                    ``(II) make the list published under 
                                clause (i) available, upon request, at 
                                each district office of the 
                                Administration.''.

    (h) <<NOTE: 15 USC 636 note.>>  Applicability.--The amendments made 
by subsections (a) through (f) shall apply with respect to any loan made 
after the date of enactment of this Act.
SEC. 1207. <<NOTE: 15 USC 649b note.>>  STATE TRADE AND EXPORT 
                          PROMOTION GRANT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``eligible small business concern'' means a 
        small business concern that--

[[Page 124 STAT. 2533]]

                    (A) has been in business for not less than the 1-
                year period ending on the date on which assistance is 
                provided using a grant under this section;
                    (B) is operating profitably, based on operations in 
                the United States;
                    (C) has demonstrated understanding of the costs 
                associated with exporting and doing business with 
                foreign purchasers, including the costs of freight 
                forwarding, customs brokers, packing and shipping, as 
                determined by the Associate Administrator; and
                    (D) has in effect a strategic plan for exporting;
            (2) the term ``program'' means the State Trade and Export 
        Promotion Grant Program established under subsection (b);
            (3) the term ``small business concern owned and controlled 
        by women'' has the meaning given that term in section 3 of the 
        Small Business Act (15 U.S.C. 632);
            (4) the term ``socially and economically disadvantaged small 
        business concern'' has the meaning given that term in section 
        8(a)(4)(A) of the Small Business Act (15 U.S.C. 6537(a)(4)(A)); 
        and
            (5) the term ``State'' means each of the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, and American Samoa.

    (b) Establishment of Program.--The Associate Administrator shall 
establish a 3-year trade and export promotion pilot program to be known 
as the State Trade and Export Promotion Grant Program, to make grants to 
States to carry out export programs that assist eligible small business 
concerns in--
            (1) participation in a foreign trade mission;
            (2) a foreign market sales trip;
            (3) a subscription to services provided by the Department of 
        Commerce;
            (4) the payment of website translation fees;
            (5) the design of international marketing media;
            (6) a trade show exhibition;
            (7) participation in training workshops; or
            (8) any other export initiative determined appropriate by 
        the Associate Administrator.

    (c) Grants.--
            (1) Joint review.--In carrying out the program, the 
        Associate Administrator may make a grant to a State to increase 
        the number of eligible small business concerns in the State that 
        export or to increase the value of the exports by eligible small 
        business concerns in the State.
            (2) Considerations.--In making grants under this section, 
        the Associate Administrator may give priority to an application 
        by a State that proposes a program that--
                    (A) focuses on eligible small business concerns as 
                part of an export promotion program;
                    (B) demonstrates success in promoting exports by--
                          (i) socially and economically disadvantaged 
                      small business concerns;
                          (ii) small business concerns owned or 
                      controlled by women; and
                          (iii) rural small business concerns;
                    (C) promotes exports from a State that is not 1 of 
                the 10 States with the highest percentage of exporters

[[Page 124 STAT. 2534]]

                that are small business concerns, based upon the latest 
                data available from the Department of Commerce; and
                    (D) promotes new-to-market export opportunities to 
                the People's Republic of China for eligible small 
                business concerns in the United States.
            (3) Limitations.--
                    (A) Single application.--A State may not submit more 
                than 1 application for a grant under the program in any 
                1 fiscal year.
                    (B) Proportion of amounts.--The total value of 
                grants under the program made during a fiscal year to 
                the 10 States with the highest number of exporters that 
                are small business concerns, based upon the latest data 
                available from the Department of Commerce, shall be not 
                more than 40 percent of the amounts appropriated for the 
                program for that fiscal year.
            (4) Application.--A State desiring a grant under the program 
        shall submit an application at such time, in such manner, and 
        accompanied by such information as the Associate Administrator 
        may establish.

    (d) Competitive Basis.--The Associate Administrator shall award 
grants under the program on a competitive basis.
    (e) Federal Share.--The Federal share of the cost of an export 
program carried out using a grant under the program shall be--
            (1) for a State that has a high export volume, as determined 
        by the Associate Administrator, not more than 65 percent; and
            (2) for a State that does not have a high export volume, as 
        determined by the Associate Administrator, not more than 75 
        percent.

    (f) Non-Federal Share.--The non-Federal share of the cost of an 
export program carried using a grant under the program shall be 
comprised of not less than 50 percent cash and not more than 50 percent 
of indirect costs and in-kind contributions, except that no such costs 
or contributions may be derived from funds from any other Federal 
program.
    (g) Reports.--
            (1) Initial report.--Not later than 120 days after the date 
        of enactment of this Act, the Associate Administrator shall 
        submit to the Committee on Small Business and Entrepreneurship 
        of the Senate and the Committee on Small Business of the House 
        of Representatives a report, which shall include--
                    (A) a description of the structure of and procedures 
                for the program;
                    (B) a management plan for the program; and
                    (C) a description of the merit-based review process 
                to be used in the program.
            (2) Annual reports.--The Associate Administrator shall 
        submit an annual report to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives regarding the program, 
        which shall include--
                    (A) the number and amount of grants made under the 
                program during the preceding year;

[[Page 124 STAT. 2535]]

                    (B) a list of the States receiving a grant under the 
                program during the preceding year, including the 
                activities being performed with grant; and
                    (C) the effect of each grant on exports by eligible 
                small business concerns in the State receiving the 
                grant.

    (h) Reviews by Inspector General.--
            (1) In general.--The Inspector General of the Administration 
        shall conduct a review of--
                    (A) the extent to which recipients of grants under 
                the program are measuring the performance of the 
                activities being conducted and the results of the 
                measurements; and
                    (B) the overall management and effectiveness of the 
                program.
            (2) Report.--Not later than September 30, 2012, the 
        Inspector General of the Administration shall submit to the 
        Committee on Small Business and Entrepreneurship of the Senate 
        and the Committee on Small Business of the House of 
        Representatives a report regarding the review conducted under 
        paragraph (1).

    (i) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the program $30,000,000 for each of fiscal 
years 2011, 2012, and 2013.
    (j) Termination.--The authority to carry out the program shall 
terminate 3 years after the date on which the Associate Administrator 
establishes the program.
SEC. 1208. RURAL EXPORT PROMOTION.

    Not <<NOTE: Deadline. Reports.>>  later than 6 months after the date 
of enactment of this Act, the Administrator, in consultation with the 
Secretary of Agriculture and the Secretary of Commerce, shall submit to 
the Committee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives a report 
that contains--
            (1) a description of each program of the Administration that 
        promotes exports by rural small business concerns, including--
                    (A) the number of rural small business concerns 
                served by the program;
                    (B) the change, if any, in the number of rural small 
                business concerns as a result of participation in the 
                program during the 10-year period ending on the date of 
                enactment of this Act;
                    (C) the volume of exports by rural small business 
                concerns that participate in the program; and
                    (D) the change, if any, in the volume of exports by 
                rural small businesses that participate in the program 
                during the 10-year period ending on the date of 
                enactment of this Act;
            (2) a description of the coordination between programs of 
        the Administration and other Federal programs that promote 
        exports by rural small business concerns;
            (3) recommendations, if any, for improving the coordination 
        described in paragraph (2);
            (4) a description of any plan by the Administration to 
        market the international trade financing programs of the 
        Administration through lenders that--

[[Page 124 STAT. 2536]]

                    (A) serve rural small business concerns; and
                    (B) are associated with financing programs of the 
                Department of Agriculture;
            (5) recommendations, if any, for improving coordination 
        between the counseling programs and export financing programs of 
        the Administration, in order to increase the volume of exports 
        by rural small business concerns; and
            (6) any additional information the Administrator determines 
        is necessary.
SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS 
                          DEVELOPMENT CENTERS.

    Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) is 
amended--
            (1) by striking ``(2) The Small Business Development 
        Centers'' and inserting the following:
            ``(2) Cooperation to provide international trade services.--
                    ``(A) Information and services.--The small business 
                development centers''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), as so designated, by 
                inserting ``(including State trade agencies),'' after 
                ``local agencies''; and
                    (B) by adding at the end the following:
                    ``(B) Cooperation with state trade agencies and 
                export assistance centers.--A small business development 
                center that counsels a small business concern on issues 
                relating to international trade shall--
                          ``(i) consult with State trade agencies and 
                      Export Assistance Centers to provide appropriate 
                      services to the small business concern; and
                          ``(ii) as necessary, refer the small business 
                      concern to a State trade agency or an Export 
                      Assistance Center for further counseling or 
                      assistance.
                    ``(C) Definition.--In this paragraph, the term 
                `Export Assistance Center' has the same meaning as in 
                section 22.''.

                 Subtitle C--Small Business Contracting

                        PART I--CONTRACT BUNDLING

SEC. 1311. SMALL BUSINESS ACT.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
section 1202, is amended by adding at the end the following:
    ``(v) <<NOTE: Definition.>>  Multiple Award Contract.--In this Act, 
the term `multiple award contract' means--
            ``(1) a multiple award task order contract or delivery order 
        contract that is entered into under the authority of sections 
        303H through 303K of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 253h through 253k); and
            ``(2) any other indefinite delivery, indefinite quantity 
        contract that is entered into by the head of a Federal agency 
        with 2 or more sources pursuant to the same solicitation.''.

[[Page 124 STAT. 2537]]

SEC. 1312. LEADERSHIP AND OVERSIGHT.

    (a) In General.--Section 15 of the Small Business Act (15 U.S.C. 
644) is amended by adding at the end the following:
    ``(q) Bundling Accountability Measures.--
            ``(1) Teaming requirements.--Each Federal agency shall 
        include in each solicitation for any multiple award contract 
        above the substantial bundling threshold of the Federal agency a 
        provision soliciting bids from any responsible source, including 
        responsible small business concerns and teams or joint ventures 
        of small business concerns.
            ``(2) <<NOTE: Deadlines. Web postings.>>  Policies on 
        reduction of contract bundling.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of this subsection, the Federal 
                Acquisition Regulatory Council established under section 
                25(a) of the Office of Federal Procurement Policy Act 
                (41 U.S.C. 4219(a)) shall amend the Federal Acquisition 
                Regulation issued under section 25 of such Act to--
                          ``(i) establish a Government-wide policy 
                      regarding contract bundling, including regarding 
                      the solicitation of teaming and joint ventures 
                      under paragraph (1); and
                          ``(ii) require that the policy established 
                      under clause (i) be published on the website of 
                      each Federal agency.
                    ``(B) Rationale for contract bundling.--Not later 
                than 30 days after the date on which the head of a 
                Federal agency submits data certifications to the 
                Administrator for Federal Procurement Policy, the head 
                of the Federal agency shall publish on the website of 
                the Federal agency a list and rationale for any bundled 
                contract for which the Federal agency solicited bids or 
                that was awarded by the Federal agency.
            ``(3) Reporting.--Not later than 90 days after the date of 
        enactment of this subsection, and every 3 years thereafter, the 
        Administrator shall submit to the Committee on Small Business 
        and Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a report regarding 
        procurement center representatives and commercial market 
        representatives, which shall--
                    ``(A) identify each area for which the 
                Administration has assigned a procurement center 
                representative or a commercial market representative;
                    ``(B) explain why the Administration selected the 
                areas identified under subparagraph (A); and
                    ``(C) describe the activities performed by 
                procurement center representatives and commercial market 
                representatives.''.

    (b) Technical Correction.--Section 15(g) of the Small Business Act 
(15 U.S.C. 644(g)) is amended by striking ``Administrator of the Office 
of Federal Procurement Policy'' each place it appears and inserting 
``Administrator for Federal Procurement Policy''.
    (c) Report.--
            (1) In general.--Not later than 180 days after the date of 
        enactment of this Act, the Comptroller General of the United 
        States shall submit to Congress a report regarding the 
        procurement center representative program of the Administration.

[[Page 124 STAT. 2538]]

            (2) Contents.--The report submitted under paragraph (1) 
        shall--
                    (A) address ways to improve the effectiveness of the 
                procurement center representative program in helping 
                small business concerns obtain Federal contracts;
                    (B) evaluate the effectiveness of procurement center 
                representatives and commercial marketing 
                representatives; and
                    (C) include recommendations, if any, on how to 
                improve the procurement center representative program.

    (d) <<NOTE: 15 USC 644 note.>>  Electronic Procurement Center 
Representative.--
            (1) <<NOTE: Deadline.>>  In general.--Not later than 1 year 
        after the date of enactment of this Act, the Administrator shall 
        implement a 3-year pilot electronic procurement center 
        representative program.
            (2) Report.--Not later than 30 days after the pilot program 
        under paragraph (1) ends, the Comptroller General of the United 
        States shall submit to the Committee on Small Business and 
        Entrepreneurship of the Senate and the Committee on Small 
        Business of the House of Representatives a report regarding the 
        pilot program.
SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.

    (a) In General.--The Small Business Act (15 U.S.C. 631 et seq.) is 
amended--
            (1) by redesignating section 44 <<NOTE: 15 USC 631 note.>>  
        as section 45; and
            (2) by inserting after section 43 the following:
``SEC. 44. <<NOTE: 15 USC 657q.>>  CONSOLIDATION OF CONTRACT 
                      REQUIREMENTS.

    ``(a) Definitions.--In this section--
            ``(1) the term `Chief Acquisition Officer' means the 
        employee of a Federal agency designated as the Chief Acquisition 
        Officer for the Federal agency under section 16(a) of the Office 
        of Federal Procurement Policy Act (41 U.S.C. 414(a));
            ``(2) the term `consolidation of contract requirements', 
        with respect to contract requirements of a Federal agency, means 
        a use of a solicitation to obtain offers for a single contract 
        or a multiple award contract to satisfy 2 or more requirements 
        of the Federal agency for goods or services that have been 
        provided to or performed for the Federal agency under 2 or more 
        separate contracts lower in cost than the total cost of the 
        contract for which the offers are solicited; and
            ``(3) the term `senior procurement executive' means an 
        official designated under section 16(c) of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 414(c)) as the senior 
        procurement executive for a Federal agency.

    ``(b) Policy.--The head of each Federal agency shall ensure that the 
decisions made by the Federal agency regarding consolidation of contract 
requirements of the Federal agency are made with a view to providing 
small business concerns with appropriate opportunities to participate as 
prime contractors and subcontractors in the procurements of the Federal 
agency.
    ``(c) Limitation on Use of Acquisition Strategies Involving 
Consolidation.--
            ``(1) In general.--Subject to paragraph (4), the head of a 
        Federal agency may not carry out an acquisition strategy that 
        includes a consolidation of contract requirements of the Federal 
        agency with a total value of more than $2,000,000,

[[Page 124 STAT. 2539]]

        unless the senior procurement executive or Chief Acquisition 
        Officer for the Federal agency, before carrying out the 
        acquisition strategy--
                    ``(A) conducts market research;
                    ``(B) identifies any alternative contracting 
                approaches that would involve a lesser degree of 
                consolidation of contract requirements;
                    ``(C) <<NOTE: Determination.>>  makes a written 
                determination that the consolidation of contract 
                requirements is necessary and justified;
                    ``(D) identifies any negative impact by the 
                acquisition strategy on contracting with small business 
                concerns; and
                    ``(E) <<NOTE: Certification.>>  certifies to the 
                head of the Federal agency that steps will be taken to 
                include small business concerns in the acquisition 
                strategy.
            ``(2) Determination that consolidation is necessary and 
        justified.--
                    ``(A) In general.--A senior procurement executive or 
                Chief Acquisition Officer may determine that an 
                acquisition strategy involving a consolidation of 
                contract requirements is necessary and justified for the 
                purposes of paragraph (1)(C) if the benefits of the 
                acquisition strategy substantially exceed the benefits 
                of each of the possible alternative contracting 
                approaches identified under paragraph (1)(B).
                    ``(B) Savings in administrative or personnel 
                costs.--For purposes of subparagraph (A), savings in 
                administrative or personnel costs alone do not 
                constitute a sufficient justification for a 
                consolidation of contract requirements in a procurement 
                unless the expected total amount of the cost savings, as 
                determined by the senior procurement executive or Chief 
                Acquisition Officer, is expected to be substantial in 
                relation to the total cost of the procurement.
            ``(3) Benefits to be considered.--The benefits considered 
        for the purposes of paragraphs (1) and (2) may include cost and, 
        regardless of whether quantifiable in dollar amounts--
                    ``(A) quality;
                    ``(B) acquisition cycle;
                    ``(C) terms and conditions; and
                    ``(D) any other benefit.
            ``(4) Department of defense.--
                    ``(A) <<NOTE: Compliance.>>  In general.--The 
                Department of Defense and each military department shall 
                comply with this section until after the date described 
                in subparagraph (C).
                    ``(B) Rule.--After the date described in 
                subparagraph (C), contracting by the Department of 
                Defense or a military department shall be conducted in 
                accordance with section 2382 of title 10, United States 
                Code.
                    ``(C) Date.--The date described in this subparagraph 
                is the date on which the Administrator determines the 
                Department of Defense or a military department is in 
                compliance with the Government-wide contracting goals 
                under section 15.''.

    (b) Technical and Conforming Amendment.--Section 2382(b)(1) of title 
10, United States Code, is amended by striking ``An official'' and 
inserting ``Subject to section 44(c)(4), an official''.

[[Page 124 STAT. 2540]]

SEC. 1314. <<NOTE: 15 USC 644 note.>>  SMALL BUSINESS TEAMS PILOT 
                          PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``Pilot Program'' means the Small Business 
        Teaming Pilot Program established under subsection (b); and
            (2) the term ``eligible organization'' means a well-
        established national organization for small business concerns 
        with the capacity to provide assistance to small business 
        concerns (which may be provided with the assistance of the 
        Administrator) relating to--
                    (A) customer relations and outreach;
                    (B) team relations and outreach; and
                    (C) performance measurement and quality assurance.

    (b) Establishment.--The Administrator shall establish a Small 
Business Teaming Pilot Program for teaming and joint ventures involving 
small business concerns.
    (c) Grants.--Under the Pilot Program, the Administrator may make 
grants to eligible organizations to provide assistance and guidance to 
teams of small business concerns seeking to compete for larger 
procurement contracts.
    (d) Contracting Opportunities.--The Administrator shall work with 
eligible organizations receiving a grant under the Pilot Program to 
recommend appropriate contracting opportunities for teams or joint 
ventures of small business concerns.
    (e) Report.--Not later than 1 year before the date on which the 
authority to carry out the Pilot Program terminates under subsection 
(f), the Administrator shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on Small Business 
of the House of Representatives a report on the effectiveness of the 
Pilot Program.
    (f) Termination.--The authority to carry out the Pilot Program shall 
terminate 5 years after the date of enactment of this Act.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated for grants under subsection (c) $5,000,000 for each of 
fiscal years 2010 through 2015.

                    PART II--SUBCONTRACTING INTEGRITY

SEC. 1321. <<NOTE: Deadline. Regulations. 15 USC 637 note.>>  
                          SUBCONTRACTING MISREPRESENTATIONS.

    Not later than 1 year after the date of enactment of this Act, the 
Administrator, in consultation with the Administrator for Federal 
Procurement Policy, shall promulgate regulations relating to, and the 
Federal Acquisition Regulatory Council established under section 25(a) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) shall 
amend the Federal Acquisition Regulation issued under section 25 of such 
Act to establish a policy on, subcontracting compliance relating to 
small business concerns, including assignment of compliance 
responsibilities between contracting offices, small business offices, 
and program offices and periodic oversight and review activities.
SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

    Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) is 
amended--
            (1) in subparagraph (E), by striking ``and'' at the end;
            (2) in subparagraph (F), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end, the following:

[[Page 124 STAT. 2541]]

                    ``(G) a representation that the offeror or bidder 
                will--
                          ``(i) make a good faith effort to acquire 
                      articles, equipment, supplies, services, or 
                      materials, or obtain the performance of 
                      construction work from the small business concerns 
                      used in preparing and submitting to the 
                      contracting agency the bid or proposal, in the 
                      same amount and quality used in preparing and 
                      submitting the bid or proposal; and
                          ``(ii) provide to the contracting officer a 
                      written explanation if the offeror or bidder fails 
                      to acquire articles, equipment, supplies, 
                      services, or materials or obtain the performance 
                      of construction work as described in clause 
                      (i).''.

                      PART III--ACQUISITION PROCESS

SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
                          BUSINESSES.

    Section 15 of the Small Business Act (15 U.S.C. 644), as amended by 
this Act, is amended by adding at the end the following:
    ``(r) Multiple Award 
Contracts. <<NOTE: Deadline. Regulations. Guidance.>> --Not later than 1 
year after the date of enactment of this subsection, the Administrator 
for Federal Procurement Policy and the Administrator, in consultation 
with the Administrator of General Services, shall, by regulation, 
establish guidance under which Federal agencies may, at their 
discretion--
            ``(1) set aside part or parts of a multiple award contract 
        for small business concerns, including the subcategories of 
        small business concerns identified in subsection (g)(2);
            ``(2) notwithstanding the fair opportunity requirements 
        under section 2304c(b) of title 10, United States Code, and 
        section 303J(b) of the Federal Property and Administrative 
        Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders 
        placed against multiple award contracts for small business 
        concerns, including the subcategories of small business concerns 
        identified in subsection (g)(2); and
            ``(3) reserve 1 or more contract awards for small business 
        concerns under full and open multiple award procurements, 
        including the subcategories of small business concerns 
        identified in subsection (g)(2).''.
SEC. 1332. <<NOTE: Deadline. 41 USC 428 note.>>  MICRO-PURCHASE 
                          GUIDELINES.

    Not later than 1 year after the date of enactment of this Act, the 
Director of the Office of Management and Budget, in coordination with 
the Administrator of General Services, shall issue guidelines regarding 
the analysis of purchase card expenditures to identify opportunities for 
achieving and accurately measuring fair participation of small business 
concerns in purchases in an amount not in excess of the micro-purchase 
threshold, as defined in section 32 of the Office of Federal Procurement 
Policy Act (41 U.S.C. 428) (in this section referred to as ``micro-
purchases''), consistent with the national policy on small business 
participation in Federal procurements set forth in sections 2(a) and 
15(g) of the Small Business Act (15 U.S.C. 631(a) and 644(g)), and 
dissemination of best practices for participation of small business 
concerns in micro-purchases.

[[Page 124 STAT. 2542]]

SEC. 1333. AGENCY ACCOUNTABILITY.

    Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is 
amended--
            (1) by inserting ``(A)'' after ``(2)'';
            (2) by striking ``Goals established'' and inserting the 
        following:

    ``(B) Goals established'';
            (3) by striking ``Whenever'' and inserting the following:

    ``(C) Whenever'';
            (4) by striking ``For the purpose of'' and inserting the 
        following:

    ``(D) For the purpose of'';
            (5) by striking ``The head of each Federal agency, in 
        attempting to attain such participation'' and inserting the 
        following:

    ``(E) The head of each Federal agency, in attempting to attain the 
participation described in subparagraph (D)''.
            (6) in subparagraph (E), as so designated--
                    (A) by striking ``(A) contracts'' and inserting 
                ``(i) contracts''; and
                    (B) by striking ``(B) contracts'' and inserting 
                ``(ii) contracts''; and
            (7) by adding at the end the following:

    ``(F)(i) Each procurement employee or program manager described in 
clause (ii) shall communicate to the subordinates of the procurement 
employee or program manager the importance of achieving small business 
goals.
    ``(ii) A procurement employee or program manager described in this 
clause is a senior procurement executive, senior program manager, or 
Director of Small and Disadvantaged Business Utilization of a Federal 
agency having contracting authority.''.
SEC. 1334. PAYMENT OF SUBCONTRACTORS.

    Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended 
by adding at the end the following:
    ``(12) Payment of Subcontractors.--
            ``(A) Definition.--In this paragraph, the term `covered 
        contract' means a contract relating to which a prime contractor 
        is required to develop a subcontracting plan under paragraph (4) 
        or (5).
            ``(B) Notice.--
                    ``(i) In general.--A prime contractor for a covered 
                contract shall notify in writing the contracting officer 
                for the covered contract if the prime contractor pays a 
                reduced price to a subcontractor for goods and services 
                upon completion of the responsibilities of the 
                subcontractor or the payment to a subcontractor is more 
                than 90 days past due for goods or services provided for 
                the covered contract for which the Federal agency has 
                paid the prime contractor.
                    ``(ii) Contents.--A prime contractor shall include 
                the reason for the reduction in a payment to or failure 
                to pay a subcontractor in any notice made under clause 
                (i).
            ``(C) Performance.--A contracting officer for a covered 
        contract shall consider the unjustified failure by a prime 
        contractor to make a full or timely payment to a subcontractor 
        in evaluating the performance of the prime contractor.

[[Page 124 STAT. 2543]]

            ``(D) <<NOTE: Records.>>  Control of funds.--If the 
        contracting officer for a covered contract determines that a 
        prime contractor has a history of unjustified, untimely payments 
        to contractors, the contracting officer shall record the 
        identity of the contractor in accordance with the regulations 
        promulgated under subparagraph (E).
            ``(E) Regulations. <<NOTE: Deadline.>> --Not later than 1 
        year after the date of enactment of this paragraph, the Federal 
        Acquisition Regulatory Council established under section 25(a) 
        of the Office of Federal Procurement Policy Act (41 U.S.C. 
        421(a)) shall amend the Federal Acquisition Regulation issued 
        under section 25 of such Act to--
                    ``(i) describe the circumstances under which a 
                contractor may be determined to have a history of 
                unjustified, untimely payments to subcontractors;
                    ``(ii) <<NOTE: Records.>>  establish a process for 
                contracting officers to record the identity of a 
                contractor described in clause (i); and
                    ``(iii) <<NOTE: Public information.>>  require the 
                identity of a contractor described in clause (i) to be 
                incorporated in, and made publicly available through, 
                the Federal Awardee Performance and Integrity 
                Information System, or any successor thereto.''.
SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS DEMONSTRATION 
                          PROGRAM.

    (a) In General.--The Business Opportunity Development Reform Act of 
1988 (Public Law 100-656) is amended by striking title VII (15 U.S.C. 
644 note).
    (b) <<NOTE: 15 USC 644 note.>>  Effective Date and Applicability.--
The amendment made by this section--
            (1) shall take effect on the date of enactment of this Act; 
        and
            (2) apply to the first full fiscal year after the date of 
        enactment of this Act.

            PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

SEC. 1341. POLICY AND PRESUMPTIONS.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
section 1311, is amended by adding at the end the following:
    ``(w) Presumption.--
            ``(1) In general.--In every contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant which is set aside, reserved, or otherwise 
        classified as intended for award to small business concerns, 
        there shall be a presumption of loss to the United States based 
        on the total amount expended on the contract, subcontract, 
        cooperative agreement, cooperative research and development 
        agreement, or grant whenever it is established that a business 
        concern other than a small business concern willfully sought and 
        received the award by misrepresentation.
            ``(2) Deemed certifications.--The following actions shall be 
        deemed affirmative, willful, and intentional certifications of 
        small business size and status:
                    ``(A) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement reserved,

[[Page 124 STAT. 2544]]

                set aside, or otherwise classified as intended for award 
                to small business concerns.
                    ``(B) Submission of a bid or proposal for a Federal 
                grant, contract, subcontract, cooperative agreement, or 
                cooperative research and development agreement which in 
                any way encourages a Federal agency to classify the bid 
                or proposal, if awarded, as an award to a small business 
                concern.
                    ``(C) Registration on any Federal electronic 
                database for the purpose of being considered for award 
                of a Federal grant, contract, subcontract, cooperative 
                agreement, or cooperative research agreement, as a small 
                business concern.
            ``(3) Certification by signature of responsible official.--
                    ``(A) In general.--Each solicitation, bid, or 
                application for a Federal contract, subcontract, or 
                grant shall contain a certification concerning the small 
                business size and status of a business concern seeking 
                the Federal contract, subcontract, or grant.
                    ``(B) Content of certifications.--A certification 
                that a business concern qualifies as a small business 
                concern of the exact size and status claimed by the 
                business concern for purposes of bidding on a Federal 
                contract or subcontract, or applying for a Federal 
                grant, shall contain the signature of an authorized 
                official on the same page on which the certification is 
                contained.
            ``(4) Regulations.--The Administrator shall promulgate 
        regulations to provide adequate protections to individuals and 
        business concerns from liability under this subsection in cases 
        of unintentional errors, technical malfunctions, and other 
        similar situations.''.
SEC. 1342. ANNUAL CERTIFICATION.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
section 1341, is amended by adding at the end the following:
    ``(x) Annual Certification.--
            ``(1) In general.--Each business certified as a small 
        business concern under this Act shall annually certify its small 
        business size and, if appropriate, its small business status, by 
        means of a confirming entry on the Online Representations and 
        Certifications Application database of the Administration, or 
        any successor thereto.
            ``(2) <<NOTE: Deadline.>>  Regulations.--Not later than 1 
        year after the date of enactment of this subsection, the 
        Administrator, in consultation with the Inspector General and 
        the Chief Counsel for Advocacy of the Administration, shall 
        promulgate regulations to ensure that--
                    ``(A) no business concern continues to be certified 
                as a small business concern on the Online 
                Representations and Certifications Application database 
                of the Administration, or any successor thereto, without 
                fulfilling the requirements for annual certification 
                under this subsection; and
                    ``(B) the requirements of this subsection are 
                implemented in a manner presenting the least possible 
                regulatory burden on small business concerns.''.

[[Page 124 STAT. 2545]]

SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.

    (a) In General. <<NOTE: Deadline. 41 USC 433 note.>> --Not later 
than 1 year after the date of enactment of this Act, the Federal 
Acquisition Institute, in consultation with the Administrator for 
Federal Procurement Policy, the Defense Acquisition University, and the 
Administrator, shall develop courses for acquisition personnel 
concerning proper classification of business concerns and small business 
size and status for purposes of Federal contracts, subcontracts, grants, 
cooperative agreements, and cooperative research and development 
agreements.

    (b) Policy on Prosecutions of Small Business Size and Status 
Fraud.--Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by section 1342, is amended by adding at the end the following:
    ``(y) Policy on Prosecutions of Small Business Size and Status 
Fraud.-- <<NOTE: Deadline.>> Not later than 1 year after the date of 
enactment of this subsection, the Administrator, in consultation with 
the Attorney General, shall issue a Government-wide policy on 
prosecution of small business size and status fraud, which shall direct 
Federal agencies to appropriately publicize the policy.''.
SEC. <<NOTE: 15 USC 1632 note.>>  1344. UPDATED SIZE STANDARDS.

    (a) Rolling Review.--
            (1) In general.--The Administrator shall--
                    (A) <<NOTE: Time period.>>  during the 18-month 
                period beginning on the date of enactment of this Act, 
                and during every 18-month period thereafter, conduct a 
                detailed review of not less than \1/3\ of the size 
                standards for small business concerns established under 
                section 3(a)(2) of the Small Business Act (15 U.S.C. 
                632(a)(2)), which shall include holding not less than 2 
                public forums located in different geographic regions of 
                the United States;
                    (B) after completing each review under subparagraph 
                (A) make appropriate adjustments to the size standards 
                established under section 3(a)(2) of the Small Business 
                Act to reflect market conditions;
                    (C) <<NOTE: Public information.>>  make publicly 
                available--
                          (i) information regarding the factors 
                      evaluated as part of each review conducted under 
                      subparagraph (A); and
                          (ii) information regarding the criteria used 
                      for any revised size standards promulgated under 
                      subparagraph (B); and
                    (D) <<NOTE: Deadline. Public information.>>  not 
                later than 30 days after the date on which the 
                Administrator completes each review under subparagraph 
                (A), submit to the Committee on Small Business and 
                Entrepreneurship of the Senate and the Committee on 
                Small Business of the House of Representatives and make 
                publicly available a report regarding the review, 
                including why the Administrator--
                          (i) used the factors and criteria described in 
                      subparagraph (C); and
                          (ii) adjusted or did not adjust each size 
                      standard that was reviewed under the review.
            (2) <<NOTE: Deadlines.>>  Complete review of size 
        standards.--The Administrator shall ensure that each size 
        standard for small business concerns established under section 
        3(a)(2) of the Small Business

[[Page 124 STAT. 2546]]

        Act (15 U.S.C. 632(a)(2)) is reviewed under paragraph (1) not 
        less frequently than once every 5 years.

    (b) Rules.--Not later than 1 year after the date of enactment of 
this Act, the Administrator shall promulgate rules for conducting the 
reviews required under subsection (a).
SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.

    (a) In General.--The Comptroller General of the United States shall 
conduct a study of the mentor-protege program of the Administration for 
small business concerns participating in programs under section 8(a) of 
the Small Business Act (15 U.S.C. 637(a)), and other relationships and 
strategic alliances pairing a larger business and a small business 
concern partner to gain access to Federal Government contracts, to 
determine whether the programs and relationships are effectively 
supporting the goal of increasing the participation of small business 
concerns in Government contracting.
    (b) Matters To Be Studied.--The study conducted under this section 
shall include--
            (1) a review of a broad cross-section of industries; and
            (2) an evaluation of--
                    (A) how each Federal agency carrying out a program 
                described in subsection (a) administers and monitors the 
                program;
                    (B) whether there are systems in place to ensure 
                that the mentor-protege relationship, or similar 
                affiliation, promotes real gain to the protege, and is 
                not just a mechanism to enable participants that would 
                not otherwise qualify under section 8(a) of the Small 
                Business Act (15 U.S.C. 637(a)) to receive contracts 
                under that section; and
                    (C) the degree to which protege businesses become 
                able to compete for Federal contracts without the 
                assistance of a mentor.

    (c) Report to Congress.--Not later than 180 days after the date of 
enactment of this Act, the Comptroller General shall submit to the 
Committee on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives a report on 
the results of the study conducted under this section.
SEC. 1346. CONTRACTING GOALS REPORTS.

    Section 15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)) is 
amended by striking ``submit them'' and all that follows through ``the 
following:'' and inserting ``submit to the President and the Committee 
on Small Business and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives the compilation and 
analysis, which shall include the following:''.
SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.

    (a) <<NOTE: 15 USC 637 note.>>  Definitions.--In this section--
            (1) the terms ``Administration'' and ``Administrator'' mean 
        the Small Business Administration and the Administrator thereof, 
        respectively; and
            (2) the terms ``HUBZone small business concern'', ``small 
        business concern'', ``small business concern owned and 
        controlled by service-disabled veterans'', and ``small business 
        concern owned and controlled by women'' have the same meanings 
        as in section 3 of the Small Business Act (15 U.S.C. 632).

[[Page 124 STAT. 2547]]

    (b) Contracting Improvements.--
            (1) Contracting opportunities.--Section 31(b)(2)(B) of the 
        Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended by 
        striking ``shall'' and inserting ``may''.
            (2) Contracting goals.--Section 15(g)(1) of the Small 
        Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth 
        sentence by inserting ``and subcontract'' after ``not less than 
        3 percent of the total value of all prime contract''.
            (3) Mentor-protege programs.--The Administrator may 
        establish mentor-protege programs for small business concerns 
        owned and controlled by service-disabled veterans, small 
        business concerns owned and controlled by women, and HUBZone 
        small business concerns modeled on the mentor-protege program of 
        the Administration for small business concerns participating in 
        programs under section 8(a) of the Small Business Act (15 U.S.C. 
        637(a)).

    (c) Small Business Contracting Programs Parity.--Section 31(b)(2) of 
the Small Business Act (15 U.S.C. 657a(b)(2)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``Notwithstanding any other provision of law--'';
            (2) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking 
                ``a contracting'' and inserting ``Sole source 
                contracts.--A contracting''; and
                    (B) in clause (iii), by striking the semicolon at 
                the end and inserting a period;
            (3) in subparagraph (B)--
                    (A) by striking ``a contract opportunity shall'' and 
                inserting ``Restricted competition.--A contract 
                opportunity may''; and
                    (B) by striking ``; and'' and inserting a period; 
                and
            (4) in subparagraph (C), by striking ``not later'' and 
        inserting ``Appeals.--Not later''.

     Subtitle D--Small Business Management and Counseling Assistance

SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS PROGRAMS.

    (a) Microloan Program.--Section 7(m) of the Small Business Act (15 
U.S.C. 636(m)) is amended--
            (1) in paragraph (3)(B)--
                    (A) by striking ``As a condition'' and inserting the 
                following:
                          ``(i) In general.--Subject to clause (ii), as 
                      a condition'';
                    (B) by striking ``the Administration'' and inserting 
                ``the Administrator''; and
                    (C) by adding at the end the following:
                          ``(ii) Waiver of non-federal share.--
                                    ``(I) In general.--Upon request by 
                                an intermediary, and in accordance with 
                                this clause, the Administrator may 
                                waive, in whole or in part, the 
                                requirement to obtain non-Federal funds 
                                under clause (i) for a fiscal year. The 
                                Administrator may

[[Page 124 STAT. 2548]]

                                waive the requirement to obtain non-
                                Federal funds under this clause for 
                                successive fiscal years.
                                    ``(II) Considerations.--In 
                                determining whether to waive the 
                                requirement to obtain non-Federal funds 
                                under this clause, the Administrator 
                                shall consider--
                                            ``(aa) the economic 
                                        conditions affecting the 
                                        intermediary;
                                            ``(bb) the impact a waiver 
                                        under this clause would have on 
                                        the credibility of the microloan 
                                        program under this subsection;
                                            ``(cc) the demonstrated 
                                        ability of the intermediary to 
                                        raise non-Federal funds; and
                                            ``(dd) the performance of 
                                        the intermediary.
                                    ``(III) Limitations.--
                                            ``(aa) In general.--The 
                                        Administrator may not waive the 
                                        requirement to obtain non-
                                        Federal funds under this clause 
                                        if granting the waiver would 
                                        undermine the credibility of the 
                                        microloan program under this 
                                        subsection.
                                            ``(bb) Sunset.--The 
                                        Administrator may not waive the 
                                        requirement to obtain non-
                                        Federal funds under this clause 
                                        for fiscal year 2013 or any 
                                        fiscal year thereafter.''; and
            (2) in paragraph (4)(B)--
                    (A) by striking ``As a condition'' and all that 
                follows through ``the Administration shall require'' and 
                inserting the following:
                          ``(i) In general.--Subject to clause (ii), as 
                      a condition of a grant made under subparagraph 
                      (A), the Administrator shall require''; and
                    (B) by adding at the end the following:
                          ``(ii) Waiver of non-federal share.--
                                    ``(I) In general.--Upon request by 
                                an intermediary, and in accordance with 
                                this clause, the Administrator may 
                                waive, in whole or in part, the 
                                requirement to obtain non-Federal funds 
                                under clause (i) for a fiscal year. The 
                                Administrator may waive the requirement 
                                to obtain non-Federal funds under this 
                                clause for successive fiscal years.
                                    ``(II) Considerations.--In 
                                determining whether to waive the 
                                requirement to obtain non-Federal funds 
                                under this clause, the Administrator 
                                shall consider--
                                            ``(aa) the economic 
                                        conditions affecting the 
                                        intermediary;
                                            ``(bb) the impact a waiver 
                                        under this clause would have on 
                                        the credibility of the microloan 
                                        program under this subsection;
                                            ``(cc) the demonstrated 
                                        ability of the intermediary to 
                                        raise non-Federal funds; and
                                            ``(dd) the performance of 
                                        the intermediary.
                                    ``(III) Limitations.--
                                            ``(aa) In general.--The 
                                        Administrator may not waive the 
                                        requirement to obtain non-
                                        Federal funds under this clause 
                                        if granting

[[Page 124 STAT. 2549]]

                                        the waiver would undermine the 
                                        credibility of the microloan 
                                        program under this subsection.
                                            ``(bb) Sunset.--The 
                                        Administrator may not waive the 
                                        requirement to obtain non-
                                        Federal funds under this clause 
                                        for fiscal year 2013 or any 
                                        fiscal year thereafter.''.

    (b) Women's Business Center Program.--Section 29(c) of the Small 
Business Act (15 U.S.C. 656(c)) is amended--
            (1) in paragraph (1), by striking ``As a condition'' and 
        inserting ``Subject to paragraph (5), as a condition''; and
            (2) by adding at the end the following:
            ``(5) Waiver of non-federal share relating to technical 
        assistance and counseling.--
                    ``(A) In general.--Upon request by a recipient 
                organization, and in accordance with this paragraph, the 
                Administrator may waive, in whole or in part, the 
                requirement to obtain non-Federal funds under this 
                subsection for the technical assistance and counseling 
                activities of the recipient organization carried out 
                using financial assistance under this section for a 
                fiscal year. The Administrator may waive the requirement 
                to obtain non-Federal funds under this paragraph for 
                successive fiscal years.
                    ``(B) Considerations.--In determining whether to 
                waive the requirement to obtain non-Federal funds under 
                this paragraph, the Administrator shall consider--
                          ``(i) the economic conditions affecting the 
                      recipient organization;
                          ``(ii) the impact a waiver under this clause 
                      would have on the credibility of the women's 
                      business center program under this section;
                          ``(iii) the demonstrated ability of the 
                      recipient organization to raise non-Federal funds; 
                      and
                          ``(iv) the performance of the recipient 
                      organization.
                    ``(C) Limitations.--
                          ``(i) In general.--The Administrator may not 
                      waive the requirement to obtain non-Federal funds 
                      under this paragraph if granting the waiver would 
                      undermine the credibility of the women's business 
                      center program under this section.
                          ``(ii) Sunset.--The Administrator may not 
                      waive the requirement to obtain non-Federal funds 
                      under this paragraph for fiscal year 2013 or any 
                      fiscal year thereafter.''.

    (c) Prospective Repeals. <<NOTE: Effective date. 15 USC 636 
note.>> --Effective October 1, 2012, the Small Business Act (15 U.S.C. 
631 et seq.) is amended--
            (1) in section 7(m) (15 U.S.C. 636(m))--
                    (A) in paragraph (3)(B)--
                          (i) by striking ``Intermediary contribution.--
                      '' and all that follows through ``Subject to 
                      clause (ii), as'' and inserting ``Intermediary 
                      contribution.--As''; and
                          (ii) by striking clause (ii); and
                    (B) in paragraph (4)(B)--
                          (i) by striking ``Contribution.--'' and all 
                      that follows through ``Subject to clause (ii), 
                      as'' and inserting ``Contribution.--As''; and

[[Page 124 STAT. 2550]]

                          (ii) by striking clause (ii); and
            (2) in section 29(c) (15 U.S.C. 656(c))--
                    (A) in paragraph (1), by striking ``Subject to 
                paragraph (5), as'' and inserting ``As''; and
                    (B) by striking paragraph (5).
SEC. 1402. <<NOTE: 15 USC 648b.>>  GRANTS FOR SBDCS.

    (a) In General.--The Administrator may make grants to small business 
development centers under section 21 of the Small Business Act (15 
U.S.C. 648) to provide targeted technical assistance to small business 
concerns seeking access to capital or credit, Federal procurement 
opportunities, energy efficiency audits to reduce energy bills, 
opportunities to export products or provide services to foreign 
customers, adopting, making innovations in, and using broadband 
technologies, or other assistance.
    (b) Allocation.--
            (1) In general.--Subject to paragraph (2), and 
        notwithstanding the requirements of section 21(a)(4)(C)(iii) of 
        the Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the amount 
        appropriated to carry out this section shall be allocated under 
        the formula under section 21(a)(4)(C)(i) of that Act.
            (2) Minimum funding.--The amount made available under this 
        section to each State shall be not less than $325,000.
            (3) Types of uses.--Of the total amount of the grants 
        awarded by the Administrator under this section--
                    (A) not less than 80 percent shall be used for 
                counseling of small business concerns; and
                    (B) not more than 20 percent may be used for classes 
                or seminars.

    (c) No Non-Federal Share Required.--Notwithstanding section 
21(a)(4)(A) of the Small Business Act (15 U.S.C. 648(a)(4)(A)), the 
recipient of a grant made under this section shall not be required to 
provide non-Federal matching funds.
    (d) Distribution. <<NOTE: Deadline.>> --Not later than 30 days after 
the date on which amounts are appropriated to carry out this section, 
the Administrator shall disburse the total amount appropriated.

    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Administrator $50,000,000 to carry out this section.

                  Subtitle E--Disaster Loan Improvement

SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.

    Section 3 of the Small Business Act (15 U.S.C. 632), as amended by 
section 1343, is amended by adding at the end the following:
    ``(z) Aquaculture Business Disaster Assistance.--Subject to section 
18(a) and notwithstanding section 18(b)(1), the Administrator may 
provide disaster assistance under section 7(b)(2) to aquaculture 
enterprises that are small businesses.''.

[[Page 124 STAT. 2551]]

              Subtitle F--Small Business Regulatory Relief

SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.

    Section 604(a) of title 5, United States Code, is amended--
            (1) in paragraph (1), by striking ``succinct'';
            (2) in paragraph (2), by striking ``summary'' each place it 
        appears and inserting ``statement'';
            (3) by redesignating paragraphs (3), (4), and (5) as 
        paragraphs (4), (5), and (6), respectively; and
            (4) by inserting after paragraph (2) the following:
            ``(3) the response of the agency to any comments filed by 
        the Chief Counsel for Advocacy of the Small Business 
        Administration in response to the proposed rule, and a detailed 
        statement of any change made to the proposed rule in the final 
        rule as a result of the comments;''.
SEC. 1602. OFFICE OF ADVOCACY.

    (a) In General.--Section 203 of Public Law 94-305 (15 U.S.C. 634c) 
is amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(6) carry out the responsibilities of the Office of 
        Advocacy under chapter 6 of title 5, United States Code.''.

    (b) Budgetary Line Item and Authorization of Appropriations.--Title 
II of Public Law 94-305 (15 U.S.C. 634a et seq.) is amended by striking 
section 207 and inserting the following:
``SEC. 207. <<NOTE: 15 USC 634g.>>  BUDGETARY LINE ITEM AND 
                        AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Appropriation Requests.--Each budget of the United States 
Government submitted by the President under section 1105 of title 31, 
United States Code, shall include a separate statement of the amount of 
appropriations requested for the Office of Advocacy of the Small 
Business Administration, which shall be designated in a separate account 
in the General Fund of the Treasury.
    ``(b) Administrative Operations.--The Administrator of the Small 
Business Administration shall provide the Office of Advocacy with 
appropriate and adequate office space at central and field office 
locations, together with such equipment, operating budget, and 
communications facilities and services as may be necessary, and shall 
provide necessary maintenance services for such offices and the 
equipment and facilities located in such offices.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this title. Any 
amount appropriated under this subsection shall remain available, 
without fiscal year limitation, until expended.''.

[[Page 124 STAT. 2552]]

                  Subtitle G--Appropriations Provisions

SEC. 1701. SALARIES AND EXPENSES.

    (a) Appropriation.--There is appropriated, out of any money in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2010, $150,000,000, to remain available until September 
30, 2012, for an additional amount for the appropriations account 
appropriated under the heading ``salaries and expenses'' under the 
heading ``Small Business Administration'', of which--
            (1) $50,000,000 is for grants to small business development 
        centers authorized under section 1402;
            (2) $1,000,000 is for the costs of administering grants 
        authorized under section 1402;
            (3) $30,000,000 is for grants to States for fiscal year 2011 
        to carry out export programs that assist small business concerns 
        authorized under section 1207;
            (4) $30,000,000 is for grants to States for fiscal year 2012 
        to carry out export programs that assist small business concerns 
        authorized under section 1207;
            (5) $2,500,000 is for the costs of administering grants 
        authorized under section 1207;
            (6) $5,000,000 is for grants for fiscal year 2011 under the 
        Small Business Teaming Pilot Program under section 1314; and
            (7) $5,000,000 is for grants for fiscal year 2012 under the 
        Small Business Teaming Pilot Program under section 1314.

    (b) Report.--Not later than 60 days after the date of enactment of 
this Act, the Administrator shall submit to the Committee on 
Appropriations of the Senate and the Committee on Appropriations of the 
House of Representatives a detailed expenditure plan for using the funds 
provided under subsection (a).
SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.

    (a) In General.--There is appropriated, out of any money in the 
Treasury not otherwise appropriated, for the fiscal year ending 
September 30, 2010, for an additional amount for the appropriations 
account appropriated under the heading ``business loans program 
account'' under the heading ``Small Business Administration''--
            (1) $8,000,000, to remain available until September 30, 
        2012, for fiscal year 2011 for the cost of direct loans 
        authorized under section 7(l) of the Small Business Act, as 
        added by section 1131 of this title, including the cost of 
        modifying the loans;
            (2) $8,000,000, to remain available until September 30, 
        2012, for fiscal year 2012 for the cost of direct loans 
        authorized under section 7(l) of the Small Business Act, as 
        added by section 1131 of this title, including the cost of 
        modifying the loans;
            (3) $6,500,000, to remain available until September 30, 
        2012, for administrative expenses to carry out the direct loan 
        program authorized under section 7(l) of the Small Business Act, 
        as added by section 1131 of this title, which may be transferred 
        to and merged with the appropriations account appropriated under 
        the heading ``salaries and expenses'' under the heading ``Small 
        Business Administration''; and

[[Page 124 STAT. 2553]]

            (4) $15,000,000, to remain available until September 30, 
        2011, for the cost of guaranteed loans as authorized under 
        section 7(a) of the Small Business Act, including the cost of 
        modifying the loans.

    (b) Definition.--In this section, the term ``cost'' has the meaning 
given that term in section 502 of the Congressional Budget Act of 1974.
SEC. 1703. <<NOTE: Appropriation authorization.>>  COMMUNITY 
                          DEVELOPMENT FINANCIAL INSTITUTIONS FUND 
                          PROGRAM ACCOUNT.

    There is appropriated, out of any money in the Treasury not 
otherwise appropriated, for the fiscal year ending September 30, 2010, 
for an additional amount for the appropriations account appropriated 
under the heading ``community development financial institutions fund 
program account'' under the heading ``DEPARTMENT OF THE TREASURY'', 
$13,500,000, to remain available until September 30, 2012, for the costs 
of administering guarantees for bonds and notes as authorized under 
section 114A of the Riegle Community Development and Regulatory 
Improvement Act of 1994, as added by section 1134 of this Act.
SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT EXTENSIONS.

    (a) Extension of Programs.--
            (1) In general.--There is appropriated, out of any funds in 
        the Treasury not otherwise appropriated, for an additional 
        amount for ``Small Business Administration--Business Loans 
        Program Account'', $505,000,000, to remain available through 
        December 31, 2010, for the cost of--
                    (A) fee reductions and eliminations under section 
                501 of division A of the American Recovery and 
                Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 
                151), as amended by this Act; and
                    (B) loan guarantees under section 502 of division A 
                of the American Recovery and Reinvestment Act of 2009 
                (Public Law 111-5; 123 Stat. 152), as amended by this 
                Act.
            (2) Cost.--For purposes of this subsection, the term 
        ``cost'' has the same meaning as in section 502 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661a).

    (b) Administrative Expenses.--There is appropriated for an 
additional amount, out of any funds in the Treasury not otherwise 
appropriated, for administrative expenses to carry out sections 501 and 
502 of division A of the American Recovery and Reinvestment Act of 2009 
(Public Law 111-5), $5,000,000, to remain available until expended, 
which may be transferred and merged with the appropriation for ``Small 
Business Administration--Salaries and Expenses''.

   TITLE II <<NOTE: Creating Small Business Jobs Act of 2010.>> --TAX 
PROVISIONS
SEC. 2001. <<NOTE: 26 USC 1 note.>>  SHORT TITLE.

    This title may be cited as the ``Creating Small Business Jobs Act of 
2010''.

[[Page 124 STAT. 2554]]

                    Subtitle A--Small Business Relief

                   PART I--PROVIDING ACCESS TO CAPITAL

SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN 
                          SMALL BUSINESS STOCK.

    (a) In General.--Subsection (a) of section 1202 of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 1202.>>  is amended by adding at the 
end the following new paragraph:
            ``(4) 100 percent exclusion for stock acquired during 
        certain periods in 2010.--In the case of qualified small 
        business stock acquired after the date of the enactment of the 
        Creating Small Business Jobs Act of 2010 and before January 1, 
        2011--
                    ``(A) <<NOTE: Applicability.>>  paragraph (1) shall 
                be applied by substituting `100 percent' for `50 
                percent',
                    ``(B) paragraph (2) shall not apply, and
                    ``(C) paragraph (7) of section 57(a) shall not 
                apply.''.

    (b) Conforming Amendment.--Paragraph (3) of section 1202(a) of the 
Internal Revenue Code of 1986 is amended--
            (1) by inserting ``certain periods in'' before ``2010'' in 
        the heading, and
            (2) by striking ``before January 1, 2011'' and inserting 
        ``on or before the date of the enactment of the Creating Small 
        Business Jobs Act of 2010''.

    (c) <<NOTE: 26 USC 1202 note.>>  Effective Date.--The amendments 
made by this section shall apply to stock acquired after the date of the 
enactment of this Act.
SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES 
                          FOR 2010 CARRIED BACK 5 YEARS.

    (a) In General.--Section 39(a) of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 39.>>  is amended by adding at the end the following 
new paragraph:
            ``(4) 5-year carryback for eligible small business 
        credits.--
                    ``(A) In general.--Notwithstanding subsection (d), 
                in the case of eligible small business credits 
                determined in the first taxable year of the taxpayer 
                beginning in 2010--
                          ``(i) <<NOTE: Applicability.>>  paragraph (1) 
                      shall be applied by substituting `each of the 5 
                      taxable years' for `the taxable year' in 
                      subparagraph (A) thereof, and
                          ``(ii) <<NOTE: Applicability.>>  paragraph (2) 
                      shall be applied--
                                    ``(I) by substituting `25 taxable 
                                years' for `21 taxable years' in 
                                subparagraph (A) thereof, and
                                    ``(II) by substituting `24 taxable 
                                years' for `20 taxable years' in 
                                subparagraph (B) thereof.
                    ``(B) Eligible small business credits.--For purposes 
                of this subsection, the term `eligible small business 
                credits' has the meaning given such term by section 
                38(c)(5)(B).''.

    (b) Conforming Amendment.--Section 39(a)(3)(A) of the Internal 
Revenue Code of 1986 is amended by inserting ``or the eligible small 
business credits'' after ``credit)''.
    (c) <<NOTE: 26 USC 39 note.>>  Effective Date.--The amendments made 
by this section shall apply to credits determined in taxable years 
beginning after December 31, 2009.

[[Page 124 STAT. 2555]]

SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL BUSINESSES 
                          IN 2010 NOT SUBJECT TO ALTERNATIVE 
                          MINIMUM TAX.

    (a) In General.--Section 38(c) of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 38.>>  is amended by redesignating paragraph (5) as 
paragraph (6) and by inserting after paragraph (4) the following new 
paragraph:
            ``(5) Special rules for eligible small business credits in 
        2010.--
                    ``(A) In general.--In the case of eligible small 
                business credits determined in taxable years beginning 
                in 2010--
                          ``(i) <<NOTE: Applicability.>>  this section 
                      and section 39 shall be applied separately with 
                      respect to such credits, and
                          ``(ii) in applying paragraph (1) to such 
                      credits--
                                    ``(I) the tentative minimum tax 
                                shall be treated as being zero, and
                                    ``(II) the limitation under 
                                paragraph (1) (as modified by subclause 
                                (I)) shall be reduced by the credit 
                                allowed under subsection (a) for the 
                                taxable year (other than the eligible 
                                small business credits).
                    ``(B) <<NOTE: Definition.>>  Eligible small business 
                credits.--For purposes of this subsection, the term 
                `eligible small business credits' means the sum of the 
                credits listed in subsection (b) which are determined 
                for the taxable year with respect to an eligible small 
                business. Such credits shall not be taken into account 
                under paragraph (2), (3), or (4).
                    ``(C) <<NOTE: Definition.>>  Eligible small 
                business.--For purposes of this subsection, the term 
                `eligible small business' means, with respect to any 
                taxable year--
                          ``(i) a corporation the stock of which is not 
                      publicly traded,
                          ``(ii) a partnership, or
                          ``(iii) a sole proprietorship,
                if the average annual gross receipts of such 
                corporation, partnership, or sole proprietorship for the 
                3-taxable-year period preceding such taxable year does 
                not exceed $50,000,000. <<NOTE: Applicability.>>  For 
                purposes of applying the test under the preceding 
                sentence, rules similar to the rules of paragraphs (2) 
                and (3) of section 448(c) shall apply.
                    ``(D) Treatment of partners and s corporation 
                shareholders.--Credits determined with respect to a 
                partnership or S corporation shall not be treated as 
                eligible small business credits by any partner or 
                shareholder unless such partner or shareholder meets the 
                gross receipts test under subparagraph (C) for the 
                taxable year in which such credits are treated as 
                current year business credits.''.

    (b) Technical Amendment.--Section 55(e)(5) of the Internal Revenue 
Code of 1986 <<NOTE: 26 USC 55.>>  is amended by striking 
``38(c)(3)(B)'' and inserting ``38(c)(6)(B)''.

    (c) Conforming Amendments.--
            (1) Subclause (II) of section 38(c)(2)(A)(ii) of the 
        Internal Revenue Code of 1986 is amended by inserting ``the 
        eligible small business credits,'' after ``the New York Liberty 
        Zone business employee credit,''.

[[Page 124 STAT. 2556]]

            (2) Subclause (II) of section 38(c)(3)(A)(ii) of 
        such <<NOTE: 26 USC 38.>>  Code is amended by inserting ``, the 
        eligible small business credits,'' after ``the New York Liberty 
        Zone business employee credit''.
            (3) Subclause (II) of section 38(c)(4)(A)(ii) of such Code 
        is amended by inserting ``the eligible small business credits 
        and'' before ``the specified credits''.

    (d) <<NOTE: 26 USC 38 note.>>  Effective Date.--The amendments made 
by subsection (a) shall apply to credits determined in taxable years 
beginning after December 31, 2009, and to carrybacks of such credits.
SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR BUILT-IN 
                          GAINS TAX.

    (a) In General.--Subparagraph (B) of section 1374(d)(7) of the 
Internal Revenue Code of 1986 <<NOTE: 26 USC 1374.>>  is amended to read 
as follows:
                    ``(B) Special rules for 2009, 2010, and 2011.--No 
                tax shall be imposed on the net recognized built-in gain 
                of an S corporation--
                          ``(i) in the case of any taxable year 
                      beginning in 2009 or 2010, if the 7th taxable year 
                      in the recognition period preceded such taxable 
                      year, or
                          ``(ii) in the case of any taxable year 
                      beginning in 2011, if the 5th year in the 
                      recognition period preceded such taxable year.
                The <<NOTE: Applicability.>>  preceding sentence shall 
                be applied separately with respect to any asset to which 
                paragraph (8) applies.''.

    (b) <<NOTE: 26 USC 1374.>>  Effective Date.--The amendment made by 
this section shall apply to taxable years beginning after December 31, 
2010.

                     PART II--ENCOURAGING INVESTMENT

SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; 
                          CERTAIN REAL PROPERTY TREATED AS SECTION 
                          179 PROPERTY.

    (a) Increased Limitations.--Subsection (b) of section 179 of the 
Internal Revenue Code of 1986 <<NOTE: 26 USC 179.>>  is amended--
            (1) by striking ``shall not exceed'' and all that follows in 
        paragraph (1) and inserting ``shall not exceed--
                    ``(A) $250,000 in the case of taxable years 
                beginning after 2007 and before 2010,
                    ``(B) $500,000 in the case of taxable years 
                beginning in 2010 or 2011, and
                    ``(C) $25,000 in the case of taxable years beginning 
                after 2011.'', and
            (2) by striking ``exceeds'' and all that follows in 
        paragraph (2) and inserting ``exceeds--
                    ``(A) $800,000 in the case of taxable years 
                beginning after 2007 and before 2010,
                    ``(B) $2,000,000 in the case of taxable years 
                beginning in 2010 or 2011, and
                    ``(C) $200,000 in the case of taxable years 
                beginning after 2011.''.

    (b) Inclusion of Certain Real Property.--Section 179 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(f) Special Rules for Qualified Real Property.--
            ``(1) In general.--If a taxpayer elects the application of 
        this subsection for any taxable year beginning in 2010 or 2011,

[[Page 124 STAT. 2557]]

        the term `section 179 property' shall include any qualified real 
        property which is--
                    ``(A) of a character subject to an allowance for 
                depreciation,
                    ``(B) acquired by purchase for use in the active 
                conduct of a trade or business, and
                    ``(C) not described in the last sentence of 
                subsection (d)(1).
            ``(2) Qualified real property.--For purposes of this 
        subsection, the term `qualified real property' means--
                    ``(A) qualified leasehold improvement property 
                described in section 168(e)(6),
                    ``(B) qualified restaurant property described in 
                section 168(e)(7) (without regard to the dates specified 
                in subparagraph (A)(i) thereof), and
                    ``(C) qualified retail improvement property 
                described in section 168(e)(8) (without regard to 
                subparagraph (E) thereof).
            ``(3) Limitation.--For purposes of applying the limitation 
        under subsection (b)(1)(B), not more than $250,000 of the 
        aggregate cost which is taken into account under subsection (a) 
        for any taxable year may be attributable to qualified real 
        property.
            ``(4) Carryover limitation.--
                    ``(A) In general.--Notwithstanding subsection 
                (b)(3)(B), no amount attributable to qualified real 
                property may be carried over to a taxable year beginning 
                after 2011.
                    ``(B) <<NOTE: Applicability.>>  Treatment of 
                disallowed amounts.--Except as provided in subparagraph 
                (C), to the extent that any amount is not allowed to be 
                carried over to a taxable year beginning after 2011 by 
                reason of subparagraph (A), this title shall be applied 
                as if no election under this section had been made with 
                respect to such amount.
                    ``(C) Amounts carried over from 2010.--If 
                subparagraph (B) applies to any amount (or portion of an 
                amount) which is carried over from a taxable year other 
                than the taxpayer's last taxable year beginning in 2011, 
                such amount (or portion of an amount) shall be treated 
                for purposes of this title as attributable to property 
                placed in service on the first day of the taxpayer's 
                last taxable year beginning in 2011.
                    ``(D) Allocation of amounts.--For purposes of 
                applying this paragraph and subsection (b)(3)(B) to any 
                taxable year, the amount which is disallowed under 
                subsection (b)(3)(A) for such taxable year which is 
                attributed to qualified real property shall be the 
                amount which bears the same ratio to the total amount so 
                disallowed as--
                          ``(i) the aggregate amount attributable to 
                      qualified real property placed in service during 
                      such taxable year, increased by the portion of any 
                      amount carried over to such taxable year from a 
                      prior taxable year which is attributable to such 
                      property, bears to
                          ``(ii) the total amount of section 179 
                      property placed in service during such taxable 
                      year, increased by the aggregate amount carried 
                      over to such taxable year from any prior taxable 
                      year.

[[Page 124 STAT. 2558]]

                For purposes of the preceding sentence, only section 179 
                property with respect to which an election was made 
                under subsection (c)(1) (determined without regard to 
                subparagraph (B) of this paragraph) shall be taken into 
                account.''.

    (c) Revocability of Election.--Paragraph (2) of section 179(c) of 
the Internal Revenue Code of 1986 <<NOTE: 26 USC 179.>>  is amended by 
striking ``2011'' and inserting ``2012''.

    (d) Computer Software Treated as 179 Property.--Clause (ii) of 
section 179(d)(1)(A) is amended by striking ``2011'' and inserting 
``2012''.
    (e) <<NOTE: Applicability. 26 USC 179 note.>>  Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to property placed 
        in service after December 31, 2009, in taxable years beginning 
        after such date.
            (2) Extensions.--The amendments made by subsections (c) and 
        (d) shall apply to taxable years beginning after December 31, 
        2010.
SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT OF 
                          THE BASIS OF CERTAIN QUALIFIED PROPERTY.

    (a) In General.--Paragraph (2) of section 168(k) of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 168.>>  is amended--
            (1) by striking ``January 1, 2011'' in subparagraph (A)(iv) 
        and inserting ``January 1, 2012'', and
            (2) by striking ``January 1, 2010'' each place it appears 
        and inserting ``January 1, 2011''.

    (b) Conforming Amendments.--
            (1) The heading for subsection (k) of section 168 of the 
        Internal Revenue Code of 1986 is amended by striking ``January 
        1, 2010'' and inserting ``January 1, 2011''.
            (2) The heading for clause (ii) of section 168(k)(2)(B) of 
        such Code is amended by striking ``Pre-january 1, 2010'' and 
        inserting ``Pre-january 1, 2011''.
            (3) Subparagraph (D) of section 168(k)(4) of such Code is 
        amended by striking ``and'' at the end of clause (ii), by 
        striking the period at the end of clause (iii) and inserting a 
        comma, and by adding at the end the following new clauses:
                          ``(iv) `January 1, 2011' shall be substituted 
                      for `January 1, 2012' in subparagraph (A)(iv) 
                      thereof, and
                          ``(v) `January 1, 2010' shall be substituted 
                      for `January 1, 2011' each place it appears in 
                      subparagraph (A) thereof.''.
            (4) Subparagraph (B) of section 168(l)(5) of such Code is 
        amended by striking ``January 1, 2010'' and inserting ``January 
        1, 2011''.
            (5) Subparagraph (C) of section 168(n)(2) of such Code is 
        amended by striking ``January 1, 2010'' and inserting ``January 
        1, 2011''.
            (6) Subparagraph (D) of section 1400L(b)(2) of 
        such <<NOTE: 26 USC 1400L.>>  Code is amended by striking 
        ``January 1, 2010'' and inserting ``January 1, 2011''.
            (7) Subparagraph (B) of section 1400N(d)(3) of 
        such <<NOTE: 26 USC 1400N.>>  Code is amended by striking 
        ``January 1, 2010'' and inserting ``January 1, 2011''.

[[Page 124 STAT. 2559]]

    (c) <<NOTE: 26 USC 168 note.>>  Effective Date.--The amendments made 
by this section shall apply to property placed in service after December 
31, 2009, in taxable years ending after such date.
SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING.

    (a) In General.--Section 460(c) of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 460.>>  is amended by adding at the end the 
following new paragraph:
            ``(6) Special rule for allocation of bonus depreciation with 
        respect to certain property.--
                    ``(A) In general.--Solely for purposes of 
                determining the percentage of completion under 
                subsection (b)(1)(A), the cost of qualified property 
                shall be taken into account as a cost allocated to the 
                contract as if subsection (k) of section 168 had not 
                been enacted.
                    ``(B) <<NOTE: Definition.>>  Qualified property.--
                For purposes of this paragraph, the term `qualified 
                property' means property described in section 168(k)(2) 
                which--
                          ``(i) has a recovery period of 7 years or 
                      less, and
                          ``(ii) is placed in service after December 31, 
                      2009, and before January 1, 2011 (January 1, 2012, 
                      in the case of property described in section 
                      168(k)(2)(B)).''.

    (b) <<NOTE: 26 USC 460 note.>>  Effective Date.--The amendment made 
by this section shall apply to property placed in service after December 
31, 2009.

                  PART III--PROMOTING ENTREPRENEURSHIP

SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP 
                          EXPENDITURES IN 2010.

    (a) Start-up Expenditures.--Subsection (b) of section 195 of the 
Internal Revenue Code of 1986 <<NOTE: 26 USC 195.>>  is amended by 
adding at the end the following new paragraph:
            ``(3) <<NOTE: Applicability.>>  Special rule for taxable 
        years beginning in 2010.--In the case of a taxable year 
        beginning in 2010, paragraph (1)(A)(ii) shall be applied--
                    ``(A) by substituting `$10,000' for `$5,000', and
                    ``(B) by substituting `$60,000' for `$50,000'.''.

    (b) <<NOTE: 26 USC 195 note.>>  Effective Date.--The amendment made 
by this section shall apply to amounts paid or incurred in taxable years 
beginning after December 31, 2009.
SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED STATES 
                          TRADE REPRESENTATIVE TO DEVELOP MARKET 
                          ACCESS OPPORTUNITIES FOR UNITED STATES 
                          SMALL- AND MEDIUM-SIZED BUSINESSES AND 
                          TO ENFORCE TRADE AGREEMENTS.

    (a) In General.--There are authorized to be appropriated to the 
Office of the United States Trade Representative $5,230,000, to remain 
available until expended, for--
            (1) analyzing and developing opportunities for businesses in 
        the United States to access the markets of foreign countries; 
        and
            (2) enforcing trade agreements to which the United States is 
        a party.

    (b) Requirements.--In obligating and expending the funds authorized 
to be appropriated under subsection (a), the United States Trade 
Representative shall--

[[Page 124 STAT. 2560]]

            (1) give preference to those initiatives that the United 
        States Trade Representative determines will create or sustain 
        the greatest number of jobs in the United States or result in 
        the greatest benefit to the economy of the United States; and
            (2) consider the needs of small- and medium-sized businesses 
        in the United States with respect to--
                    (A) accessing the markets of foreign countries; and
                    (B) the enforcement of trade agreements to which the 
                United States is a party.

               PART IV--PROMOTING SMALL BUSINESS FAIRNESS

SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE 
                          REPORTABLE TRANSACTIONS BASED ON 
                          RESULTING TAX BENEFITS.

    (a) In General.--Subsection (b) of section 6707A of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 6707A.>>  is amended to read as 
follows:

    ``(b) Amount of Penalty.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the amount of the penalty under subsection (a) with 
        respect to any reportable transaction shall be 75 percent of the 
        decrease in tax shown on the return as a result of such 
        transaction (or which would have resulted from such transaction 
        if such transaction were respected for Federal tax purposes).
            ``(2) Maximum penalty.--The amount of the penalty under 
        subsection (a) with respect to any reportable transaction shall 
        not exceed--
                    ``(A) in the case of a listed transaction, $200,000 
                ($100,000 in the case of a natural person), or
                    ``(B) in the case of any other reportable 
                transaction, $50,000 ($10,000 in the case of a natural 
                person).
            ``(3) Minimum penalty.--The amount of the penalty under 
        subsection (a) with respect to any transaction shall not be less 
        than $10,000 ($5,000 in the case of a natural person).''.

    (b) <<NOTE: 26 USC 6707A note.>>  Effective Date.--The amendment 
made by this section shall apply to penalties assessed after December 
31, 2006.
SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING SELF-
                          EMPLOYMENT TAXES IN 2010.

    (a) In General.--Paragraph (4) of section 162(l) of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 162.>>  is amended by inserting 
``for taxable years beginning before January 1, 2010, or after December 
31, 2010'' before the period.

    (b) <<NOTE: 26 USC 162 note.>>  Effective Date.--The amendments made 
by this section shall apply to taxable years beginning after December 
31, 2009.
SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR 
                          TELECOMMUNICATIONS EQUIPMENT FROM LISTED 
                          PROPERTY.

    (a) In General.--Subparagraph (A) of section 280F(d)(4) of the 
Internal Revenue Code of 1986 <<NOTE: 26 USC 280F.>>  (defining listed 
property) is amended by adding `` `and' '' at the end of clause (iv), by 
striking clause (v), and by redesignating clause (vi) as clause (v).

    (b) <<NOTE: 26 USC 280F note.>>  Effective Date.--The amendment made 
by this section shall apply to taxable years beginning after December 
31, 2009.

[[Page 124 STAT. 2561]]

                     Subtitle B--Revenue Provisions

                      PART I--REDUCING THE TAX GAP

SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE 
                          PAYMENTS.

    (a) In General.--Section 6041 of the Internal Revenue Code of 1986, 
as amended by section 9006 of the Patient Protection and Affordable Care 
Act, <<NOTE: Ante, p. 855.>>  is amended by redesignating subsections 
(h) and (i) as subsections (i) and (j), respectively, and by inserting 
after subsection (g) the following new subsection:

    ``(h) Treatment of Rental Property Expense Payments.--
            ``(1) In general.--Solely for purposes of subsection (a) and 
        except as provided in paragraph (2), a person receiving rental 
        income from real estate shall be considered to be engaged in a 
        trade or business of renting property.
            ``(2) <<NOTE: Regulations.>>  Exceptions.--Paragraph (1) 
        shall not apply to--
                    ``(A) any individual, including any individual who 
                is an active member of the uniformed services or an 
                employee of the intelligence community (as defined in 
                section 121(d)(9)(C)(iv)), if substantially all rental 
                income is derived from renting the principal residence 
                (within the meaning of section 121) of such individual 
                on a temporary basis,
                    ``(B) any individual who receives rental income of 
                not more than the minimal amount, as determined under 
                regulations prescribed by the Secretary, and
                    ``(C) any other individual for whom the requirements 
                of this section would cause hardship, as determined 
                under regulations prescribed by the Secretary.''.

    (b) <<NOTE: 26 USC 6041 note.>>  Effective Date.--The amendments 
made by subsection (a) shall apply to payments made after December 31, 
2010.
SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.

    (a) Failure To File Correct Information Returns.--
            (1) In general.--Subsections (a)(1), (b)(1)(A), and 
        (b)(2)(A) of section 6721 of the Internal Revenue Code of 
        1986 <<NOTE: 26 USC 6721.>>  are each amended by striking 
        ``$50'' and inserting ``$100''.
            (2) Aggregate annual limitation.--Subsections (a)(1), 
        (d)(1)(A), and (e)(3)(A) of section 6721 of such Code are each 
        amended by striking ``$250,000'' and inserting ``$1,500,000''.

    (b) Reduction Where Correction Within 30 Days.--
            (1) In general.--Subparagraph (A) of section 6721(b)(1) of 
        the Internal Revenue Code of 1986 is amended by striking ``$15'' 
        and inserting ``$30''.
            (2) Aggregate annual limitation.--Subsections (b)(1)(B) and 
        (d)(1)(B) of section 6721 of such Code are each amended by 
        striking ``$75,000'' and inserting ``$250,000''.

    (c) Reduction Where Correction on or Before August 1.--
            (1) In general.--Subparagraph (A) of section 6721(b)(2) of 
        the Internal Revenue Code of 1986 is amended by striking ``$30'' 
        and inserting ``$60''.
            (2) Aggregate annual limitation.--Subsections (b)(2)(B) and 
        (d)(1)(C) of section 6721 of such Code are each amended by 
        striking ``$150,000'' and inserting ``$500,000''.

    (d) Aggregate Annual Limitations for Persons With Gross Receipts of 
Not More Than $5,000,000.--

[[Page 124 STAT. 2562]]

            (1) In general.--Paragraph (1) of section 6721(d) of the 
        Internal Revenue Code of 1986 <<NOTE: 26 USC 6721.>>  is 
        amended--
                    (A) by striking ``$100,000'' in subparagraph (A) and 
                inserting ``$500,000'',
                    (B) by striking ``$25,000'' in subparagraph (B) and 
                inserting ``$75,000'', and
                    (C) by striking ``$50,000'' in subparagraph (C) and 
                inserting ``$200,000''.
            (2) Technical amendment.--Paragraph (1) of section 6721(d) 
        of such Code is amended by striking ``such taxable year'' and 
        inserting ``such calendar year''.

    (e) Penalty in Case of Intentional Disregard.--Paragraph (2) of 
section 6721(e) of the Internal Revenue Code of 1986 is amended by 
striking ``$100'' and inserting ``$250''.
    (f) Adjustment for Inflation.--Section 6721 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new 
subsection:
    ``(f) Adjustment for Inflation.--
            ``(1) In general.--For each fifth calendar year beginning 
        after 2012, each of the dollar amounts under subsections (a), 
        (b), (d) (other than paragraph (2)(A) thereof), and (e) shall be 
        increased by such dollar amount multiplied by the cost-of-living 
        adjustment determined under section 1(f)(3) determined by 
        substituting `calendar year 2011' for `calendar year 1992' in 
        subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph 
        (1)--
                    ``(A) is not less than $75,000 and is not a multiple 
                of $500, such amount shall be rounded to the next lowest 
                multiple of $500, and
                    ``(B) is not described in subparagraph (A) and is 
                not a multiple of $10, such amount shall be rounded to 
                the next lowest multiple of $10.''.

    (g) Failure To Furnish Correct Payee Statements.--Section 6722 of 
the Internal Revenue Code of 1986 is amended to read as follows:
``SEC. 6722. <<NOTE: 26 USC 6722.>>  FAILURE TO FURNISH CORRECT 
                          PAYEE STATEMENTS.

    ``(a) Imposition of Penalty.--
            ``(1) General rule.--In the case of each failure described 
        in paragraph (2) by any person with respect to a payee 
        statement, such person shall pay a penalty of $100 for each 
        statement with respect to which such a failure occurs, but the 
        total amount imposed on such person for all such failures during 
        any calendar year shall not exceed $1,500,000.
            ``(2) Failures subject to penalty.--For purposes of 
        paragraph (1), the failures described in this paragraph are--
                    ``(A) any failure to furnish a payee statement on or 
                before the date prescribed therefor to the person to 
                whom such statement is required to be furnished, and
                    ``(B) any failure to include all of the information 
                required to be shown on a payee statement or the 
                inclusion of incorrect information.

    ``(b) Reduction Where Correction in Specified Period.--
            ``(1) Correction within 30 days.--If any failure described 
        in subsection (a)(2) is corrected on or before the day 30 days 
        after the required filing date--

[[Page 124 STAT. 2563]]

                    ``(A) the penalty imposed by subsection (a) shall be 
                $30 in lieu of $100, and
                    ``(B) the total amount imposed on the person for all 
                such failures during any calendar year which are so 
                corrected shall not exceed $250,000.
            ``(2) Failures corrected on or before august 1.--If any 
        failure described in subsection (a)(2) is corrected after the 
        30th day referred to in paragraph (1) but on or before August 1 
        of the calendar year in which the required filing date occurs--
                    ``(A) the penalty imposed by subsection (a) shall be 
                $60 in lieu of $100, and
                    ``(B) the total amount imposed on the person for all 
                such failures during the calendar year which are so 
                corrected shall not exceed $500,000.

    ``(c) Exception for De Minimis Failures.--
            ``(1) In general.--If--
                    ``(A) a payee statement is furnished to the person 
                to whom such statement is required to be furnished,
                    ``(B) there is a failure described in subsection 
                (a)(2)(B) (determined after the application of section 
                6724(a)) with respect to such statement, and
                    ``(C) such failure is corrected on or before August 
                1 of the calendar year in which the required filing date 
                occurs,
        for purposes of this section, such statement shall be treated as 
        having been furnished with all of the correct required 
        information.
            ``(2) Limitation.--The number of payee statements to which 
        paragraph (1) applies for any calendar year shall not exceed the 
        greater of--
                    ``(A) 10, or
                    ``(B) one-half of 1 percent of the total number of 
                payee statements required to be filed by the person 
                during the calendar year.

    ``(d) Lower Limitations for Persons With Gross Receipts of Not More 
Than $5,000,000.--
            ``(1) In general.--If any person meets the gross receipts 
        test of paragraph (2) with respect to any calendar year, with 
        respect to failures during such calendar year--
                    ``(A) subsection (a)(1) shall be applied by 
                substituting `$500,000' for `$1,500,000',
                    ``(B) subsection (b)(1)(B) shall be applied by 
                substituting `$75,000' for `$250,000', and
                    ``(C) subsection (b)(2)(B) shall be applied by 
                substituting `$200,000' for `$500,000'.
            ``(2) Gross receipts test.--A person meets the gross 
        receipts test of this paragraph if such person meets the gross 
        receipts test of section 6721(d)(2).

    ``(e) <<NOTE: Applicability.>>  Penalty in Case of Intentional 
Disregard.--If 1 or more failures to which subsection (a) applies are 
due to intentional disregard of the requirement to furnish a payee 
statement (or the correct information reporting requirement), then, with 
respect to each such failure--
            ``(1) subsections (b), (c), and (d) shall not apply,
            ``(2) the penalty imposed under subsection (a)(1) shall be 
        $250, or, if greater--

[[Page 124 STAT. 2564]]

                    ``(A) in the case of a payee statement other than a 
                statement required under section 6045(b), 6041A(e) (in 
                respect of a return required under section 6041A(b)), 
                6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of 
                the aggregate amount of the items required to be 
                reported correctly, or
                    ``(B) in the case of a payee statement required 
                under section 6045(b), 6050K(b), or 6050L(c), 5 percent 
                of the aggregate amount of the items required to be 
                reported correctly, and
            ``(3) in the case of any penalty determined under paragraph 
        (2)--
                    ``(A) the $1,500,000 limitation under subsection (a) 
                shall not apply, and
                    ``(B) such penalty shall not be taken into account 
                in applying such limitation to penalties not determined 
                under paragraph (2).

    ``(f) Adjustment for Inflation.--
            ``(1) In general.--For each fifth calendar year beginning 
        after 2012, each of the dollar amounts under subsections (a), 
        (b), (d)(1), and (e) shall be increased by such dollar amount 
        multiplied by the cost-of-living adjustment determined under 
        section 1(f)(3) determined by substituting `calendar year 2011' 
        for `calendar year 1992' in subparagraph (B) thereof.
            ``(2) Rounding.--If any amount adjusted under paragraph 
        (1)--
                    ``(A) is not less than $75,000 and is not a multiple 
                of $500, such amount shall be rounded to the next lowest 
                multiple of $500, and
                    ``(B) is not described in subparagraph (A) and is 
                not a multiple of $10, such amount shall be rounded to 
                the next lowest multiple of $10.''.

    (h) <<NOTE: 26 USC 6721 note.>>  Effective Date.--The amendments 
made by this section shall apply with respect to information returns 
required to be filed on or after January 1, 2011.
SEC. 2103. <<NOTE: 26 USC 6662A note.>>  REPORT ON TAX SHELTER 
                          PENALTIES AND CERTAIN OTHER ENFORCEMENT 
                          ACTIONS.

    (a) In General.--The Commissioner of Internal Revenue, in 
consultation with the Secretary of the Treasury, shall submit to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate an annual report on the penalties 
assessed by the Internal Revenue Service during the preceding year under 
each of the following provisions of the Internal Revenue Code of 1986:
            (1) Section 6662A (relating to accuracy-related penalty on 
        understatements with respect to reportable transactions).
            (2) Section 6700(a) (relating to promoting abusive tax 
        shelters).
            (3) Section 6707 (relating to failure to furnish information 
        regarding reportable transactions).
            (4) Section 6707A (relating to failure to include reportable 
        transaction information with return).
            (5) Section 6708 (relating to failure to maintain lists of 
        advisees with respect to reportable transactions).

[[Page 124 STAT. 2565]]

    (b) Additional Information.--The report required under subsection 
(a) shall also include information on the following with respect to each 
year:
            (1) Any action taken under section 330(b) of title 31, 
        United States Code, with respect to any reportable transaction 
        (as defined in section 6707A(c) of the Internal Revenue Code of 
        1986).
            (2) Any extension of the time for assessment of tax 
        enforced, or assessment of any amount under such an extension, 
        under paragraph (10) of section 6501(c) of the Internal Revenue 
        Code of 1986.

    (c) Date of Report.--The first report required under subsection (a) 
shall be submitted not later than December 31, 2010.
SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES OF 
                          CERTAIN FEDERAL CONTRACTORS.

    (a) In General.--Subsection (f) of section 6330 of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 6330.>>  is amended by striking 
``or'' at the end of paragraph (2), by inserting ``or'' at the end of 
paragraph (3), and by inserting after paragraph (3) the following new 
paragraph:
            ``(4) the Secretary has served a Federal contractor levy,''.

    (b) Federal Contractor Levy.--Subsection (h) of section 6330 of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking all that precedes ``any levy in connection 
        with the collection'' and inserting the following:

    ``(h) Definitions Related to Exceptions.--For purposes of subsection 
(f)--
            ``(1) Disqualified employment tax levy.--A disqualified 
        employment tax levy is''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Federal contractor levy.--A Federal contractor levy is 
        any levy if the person whose property is subject to the levy (or 
        any predecessor thereof) is a Federal contractor.''.

    (c) Conforming Amendment.--The heading of subsection (f) of section 
6330 of the Internal Revenue Code of 1986 is amended by striking 
``Jeopardy and State Refund Collection'' and inserting ``Exceptions''.
    (d) <<NOTE: 26 USC 6330 note.>>  Effective Date.--The amendments 
made by this section shall apply to levies issued after the date of the 
enactment of this Act.

                PART II--PROMOTING RETIREMENT PREPARATION

SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS ALLOWED TO 
                          TREAT ELECTIVE DEFERRALS AS ROTH 
                          CONTRIBUTIONS.

    (a) In General.--Section 402A(e)(1) of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 402A.>>  is amended by striking ``and'' at the end 
of subparagraph (A), by striking the period at the end of subparagraph 
(B) and inserting ``, and'', and by adding at the end the following:
                    ``(C) an eligible deferred compensation plan (as 
                defined in section 457(b)) of an eligible employer 
                described in section 457(e)(1)(A).''.

    (b) Elective Deferrals.--Section 402A(e)(2) of the Internal Revenue 
Code of 1986 is amended to read as follows:

[[Page 124 STAT. 2566]]

            ``(2) Elective deferral.--The term `elective deferral' 
        means--
                    ``(A) any elective deferral described in 
                subparagraph (A) or (C) of section 402(g)(3), and
                    ``(B) any elective deferral of compensation by an 
                individual under an eligible deferred compensation plan 
                (as defined in section 457(b)) of an eligible employer 
                described in section 457(e)(1)(A).''.

    (c) <<NOTE: 26 USC 402A note.>>  Effective Date.--The amendments 
made by this section shall apply to taxable years beginning after 
December 31, 2010.
SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO DESIGNATED 
                          ROTH ACCOUNTS.

    (a) In General.--Section 402A(c) of the Internal Revenue Code of 
1986 <<NOTE: 26 USC 402A.>>  is amended by adding at the end the 
following new paragraph:
            ``(4) Taxable rollovers to designated roth accounts.--
                    ``(A) In general.--Notwithstanding sections 402(c), 
                403(b)(8), and 457(e)(16), in the case of any 
                distribution to which this paragraph applies--
                          ``(i) there shall be included in gross income 
                      any amount which would be includible were it not 
                      part of a qualified rollover contribution,
                          ``(ii) section 72(t) shall not apply, and
                          ``(iii) unless the taxpayer elects not to have 
                      this clause apply, any amount required to be 
                      included in gross income for any taxable year 
                      beginning in 2010 by reason of this paragraph 
                      shall be so included ratably over the 2-taxable-
                      year period beginning with the first taxable year 
                      beginning in 2011.
                Any election under clause (iii) for any distributions 
                during a taxable year may not be changed after the due 
                date for such taxable year.
                    ``(B) Distributions to which paragraph applies.--In 
                the case of an applicable retirement plan which includes 
                a qualified Roth contribution program, this paragraph 
                shall apply to a distribution from such plan other than 
                from a designated Roth account which is contributed in a 
                qualified rollover contribution (within the meaning of 
                section 408A(e)) to the designated Roth account 
                maintained under such plan for the benefit of the 
                individual to whom the distribution is made.
                    ``(C) Coordination with limit.--Any distribution to 
                which this paragraph applies shall not be taken into 
                account for purposes of paragraph (1).
                    ``(D) Other rules.--The rules of subparagraphs (D), 
                (E), and (F) of section 408A(d)(3) (as in effect for 
                taxable years beginning after 2009) shall apply for 
                purposes of this paragraph.''.

    (b) <<NOTE: 26 USC 402A note.>>  Effective Date.--The amendments 
made by this section shall apply to distributions after the date of the 
enactment of this Act.
SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED FROM ONLY A 
                          PORTION OF A CONTRACT.

    (a) In General.--Subsection (a) of section 72 of the Internal 
Revenue Code of 1986 <<NOTE: 26 USC 72.>>  is amended to read as 
follows:

    ``(a) General Rules for Annuities.--

[[Page 124 STAT. 2567]]

            ``(1) Income inclusion.--Except as otherwise provided in 
        this chapter, gross income includes any amount received as an 
        annuity (whether for a period certain or during one or more 
        lives) under an annuity, endowment, or life insurance contract.
            ``(2) Partial annuitization.--If any amount is received as 
        an annuity for a period of 10 years or more or during one or 
        more lives under any portion of an annuity, endowment, or life 
        insurance contract--
                    ``(A) such portion shall be treated as a separate 
                contract for purposes of this section,
                    ``(B) for purposes of applying subsections (b), (c), 
                and (e), the investment in the contract shall be 
                allocated pro rata between each portion of the contract 
                from which amounts are received as an annuity and the 
                portion of the contract from which amounts are not 
                received as an annuity, and
                    ``(C) a separate annuity starting date under 
                subsection (c)(4) shall be determined with respect to 
                each portion of the contract from which amounts are 
                received as an annuity.''.

    (b) <<NOTE: 26 USC 72 note.>>  Effective Date.--The amendment made 
by this section shall apply to amounts received in taxable years 
beginning after December 31, 2010.

                 PART III--CLOSING UNINTENDED LOOPHOLES

SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL 
                          PRODUCER CREDIT.

    (a) In General.--Clause (iii) of section 40(b)(6)(E) of the Internal 
Revenue Code of 1986, as added by the Health Care and Education 
Reconciliation Act of 2010, <<NOTE: Ante, p. 1067.>>  is amended--
            (1) by striking ``or'' at the end of subclause (I),
            (2) by striking the period at the end of subclause (II) and 
        inserting ``, or'',
            (3) by adding at the end the following new subclause:
                                    ``(III) such fuel has an acid number 
                                greater than 25.'', and
            (4) by striking ``unprocessed'' in the heading and inserting 
        ``certain''.

    (b) <<NOTE: 26 USC 40 note.>>  Effective Date.--The amendments made 
by this section shall apply to fuels sold or used on or after January 1, 
2010.
SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES.

    (a) Amounts Sourced Within the United States.--Subsection (a) of 
section 861 of the Internal Revenue Code of <<NOTE: 26 USC 861.>>  1986 
is amended by adding at the end the following new paragraph:
            ``(9) Guarantees.--Amounts received, directly or indirectly, 
        from--
                    ``(A) a noncorporate resident or domestic 
                corporation for the provision of a guarantee of any 
                indebtedness of such resident or corporation, or
                    ``(B) any foreign person for the provision of a 
                guarantee of any indebtedness of such person, if such 
                amount is connected with income which is effectively 
                connected (or treated as effectively connected) with the 
                conduct of a trade or business in the United States.''.

[[Page 124 STAT. 2568]]

    (b) Amounts Sourced Without the United States.--Subsection (a) of 
section 862 of the Internal Revenue Code of 1986 <<NOTE: 26 USC 862.>>  
is amended by striking ``and'' at the end of paragraph (7), by striking 
the period at the end of paragraph (8) and inserting ``; and'', and by 
adding at the end the following new paragraph:
            ``(9) amounts received, directly or indirectly, from a 
        foreign person for the provision of a guarantee of indebtedness 
        of such person other than amounts which are derived from sources 
        within the United States as provided in section 861(a)(9).''.

    (c) Conforming Amendment.--Clause (ii) of section 864(c)(4)(B) of 
the Internal Revenue Code of 1986 <<NOTE: 26 USC 864.>>  is amended by 
striking ``dividends or interest'' and inserting ``dividends, interest, 
or amounts received for the provision of guarantees of indebtedness''.

    (d) <<NOTE: 26 USC 861 note.>>  Effective Date.--The amendments made 
by this section shall apply to guarantees issued after the date of the 
enactment of this Act.

         PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

SEC. 2131. <<NOTE: 22 USC 6655 note.>>  TIME FOR PAYMENT OF 
                          CORPORATE ESTIMATED TAXES.

    The percentage under paragraph (2) of section 561 of the Hiring 
Incentives to Restore Employment Act in effect on the date of the 
enactment of this Act is increased by 36 percentage points.

  TITLE III <<NOTE: Small Business Credit Initiative Act of 2010.>> --
STATE SMALL BUSINESS CREDIT INITIATIVE
SEC. 3001. <<NOTE: 12 USC 5701 note.>>  SHORT TITLE.

    This title may be cited as the ``State Small Business Credit 
Initiative Act of 2010''.
SEC. 3002. <<NOTE: 12 USC 5701.>>  DEFINITIONS.

    In this title, the following definitions shall apply:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Small Business and 
                Entrepreneurship, the Committee on Agriculture, 
                Nutrition, and Forestry, the Committee on Banking, 
                Housing, and Urban Affairs, the Committee on Finance, 
                the Committee on the Budget, and the Committee on 
                Appropriations of the Senate; and
                    (B) the Committee on Small Business, the Committee 
                on Agriculture, the Committee on Financial Services, the 
                Committee on Ways and Means, the Committee on the 
                Budget, and the Committee on Appropriations of the House 
                of Representatives.
            (2) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency''--
                    (A) has the same meaning as in section 3(q) of the 
                Federal Deposit Insurance Act (12 U.S.C. 1813(q)); and
                    (B) includes the National Credit Union 
                Administration Board in the case of any credit union the 
                deposits of which

[[Page 124 STAT. 2569]]

                are insured in accordance with the Federal Credit Union 
                Act.
            (3) Enrolled loan.--The term ``enrolled loan'' means a loan 
        made by a financial institution lender that is enrolled by a 
        participating State in an approved State capital access program 
        in accordance with this title.
            (4) Federal contribution.--The term ``Federal contribution'' 
        means the portion of the contribution made by a participating 
        State to, or for the account of, an approved State program that 
        is made with Federal funds allocated to the State by the 
        Secretary under section 3003.
            (5) Financial institution.--The term ``financial 
        institution'' means any insured depository institution, insured 
        credit union, or community development financial institution, as 
        those terms are each defined in section 103 of the Riegle 
        Community Development and Regulatory Improvement Act of 1994 (12 
        U.S.C. 4702).
            (6) Participating state.--The term ``participating State'' 
        means any State that has been approved for participation in the 
        Program under section 3004.
            (7) Program.--The term ``Program'' means the State Small 
        Business Credit Initiative established under this title.
            (8) Qualifying loan or swap funding facility.--The term 
        ``qualifying loan or swap funding facility'' means a contractual 
        arrangement between a participating State and a private 
        financial entity under which--
                    (A) the participating State delivers funds to the 
                entity as collateral;
                    (B) the entity provides funding from the arrangement 
                back to the participating State; and
                    (C) the full amount of resulting funding from the 
                arrangement, less any fees and other costs of the 
                arrangement, is contributed to, or for the account of, 
                an approved State program.
            (9) Reserve fund.--The term ``reserve fund'' means a fund, 
        established by a participating State, dedicated to a particular 
        financial institution lender, for the purposes of--
                    (A) depositing all required premium charges paid by 
                the financial institution lender and by each borrower 
                receiving a loan under an approved State program from 
                that financial institution lender;
                    (B) depositing contributions made by the 
                participating State, including State contributions made 
                with Federal contributions; and
                    (C) covering losses on enrolled loans by disbursing 
                accumulated funds.
            (10) State.--The term ``State'' means--
                    (A) a State of the United States;
                    (B) the District of Columbia, the Commonwealth of 
                Puerto Rico, the Commonwealth of Northern Mariana 
                Islands, Guam, American Samoa, and the United States 
                Virgin Islands;
                    (C) when designated by a State of the United States, 
                a political subdivision of that State that the Secretary 
                determines has the capacity to participate in the 
                Program; and

[[Page 124 STAT. 2570]]

                    (D) under the circumstances described in section 
                3004(d), a municipality of a State of the United States 
                to which the Secretary has given a special permission 
                under section 3004(d).
            (11) State capital access program.--The term ``State capital 
        access program'' means a program of a State that--
                    (A) uses public resources to promote private access 
                to credit; and
                    (B) meets the eligibility criteria in section 
                3005(c).
            (12) State other credit support program.--The term ``State 
        other credit support program''--
                    (A) means a program of a State that--
                          (i) uses public resources to promote private 
                      access to credit;
                          (ii) is not a State capital access program; 
                      and
                          (iii) meets the eligibility criteria in 
                      section 3006(c); and
                    (B) includes, collateral support programs, loan 
                participation programs, State-run venture capital fund 
                programs, and credit guarantee programs.
            (13) State program.--The term ``State program'' means a 
        State capital access program or a State other credit support 
        program.
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
SEC. 3003. <<NOTE: 12 USC 5702.>>  FEDERAL FUNDS ALLOCATED TO 
                          STATES.

    (a) Program Established; Purpose.--There is established the State 
Small Business Credit Initiative, to be administered by the Secretary. 
Under the Program, the Secretary shall allocate Federal funds to 
participating States and make the allocated funds available to the 
participating States as provided in this section for the uses described 
in this section.
    (b) Allocation Formula.--
            (1) <<NOTE: Deadline.>>  In general.--Not later than 30 days 
        after the date of enactment of this Act, the Secretary shall 
        allocate Federal funds to participating States so that each 
        State is eligible to receive an amount equal to the average of 
        the respective amounts that the State--
                    (A) would receive under the 2009 allocation, as 
                determined under paragraph (2); and
                    (B) would receive under the 2010 allocation, as 
                determined under paragraph (3).
            (2) 2009 allocation formula.--
                    (A) <<NOTE: Determination.>>  In general.--The 
                Secretary shall determine the 2009 allocation by 
                allocating Federal funds among the States in the 
                proportion that each such State's 2008 State employment 
                decline bears to the aggregate of the 2008 State 
                employment declines for all States.
                    (B) <<NOTE: Adjustment.>>  Minimum allocation.--The 
                Secretary shall adjust the allocations under 
                subparagraph (A) for each State to the extent necessary 
                to ensure that no State receives less than 0.9 percent 
                of the Federal funds.
                    (C) 2008 state employment decline defined.--In this 
                paragraph and with respect to a State, the term ``2008 
                State employment decline'' means the excess (if any) 
                of--

[[Page 124 STAT. 2571]]

                          (i) the number of individuals employed in such 
                      State determined for December 2007; over
                          (ii) the number of individuals employed in 
                      such State determined for December 2008.
            (3) 2010 allocation formula.--
                    (A) <<NOTE: Determination.>>  In general.--The 
                Secretary shall determine the 2010 allocation by 
                allocating Federal funds among the States in the 
                proportion that each such State's 2009 unemployment 
                number bears to the aggregate of the 2009 unemployment 
                numbers for all of the States.
                    (B) <<NOTE: Adjustment.>>  Minimum allocation.--The 
                Secretary shall adjust the allocations under 
                subparagraph (A) for each State to the extent necessary 
                to ensure that no State receives less than 0.9 percent 
                of the Federal funds.
                    (C) 2009 unemployment number defined.--In this 
                paragraph and with respect to a State, the term ``2009 
                unemployment number'' means the number of individuals 
                within such State who were determined to be unemployed 
                by the Bureau of Labor Statistics for December 2009.

    (c) Availability of Allocated Amount.--The amount allocated by the 
Secretary to each participating State under subsection (b) shall be made 
available to the State as follows:
            (1) Allocated amount generally to be available to state in 
        one-thirds.--
                    (A) In general.--The Secretary shall--
                          (i) apportion the participating State's 
                      allocated amount into thirds;
                          (ii) transfer to the participating State the 
                      first \1/3\ when the Secretary approves the State 
                      for participation under section 3004; and
                          (iii) transfer to the participating State each 
                      successive \1/3\ when the State has certified to 
                      the Secretary that it has expended, transferred, 
                      or obligated 80 percent of the last transferred 
                      \1/3\ for Federal contributions to, or for the 
                      account of, State programs.
                    (B) Authority to withhold pending audit.--The 
                Secretary may withhold the transfer of any successive 
                \1/3\ pending results of a financial audit.
                    (C) Inspector general audits.--
                          (i) In general.--The Inspector General of the 
                      Department of the Treasury shall carry out an 
                      audit of the participating State's use of 
                      allocated Federal funds transferred to the State.
                          (ii) Recoupment of misused transferred funds 
                      required.--The allocation agreement between the 
                      Secretary and the participating State shall 
                      provide that the Secretary shall recoup any 
                      allocated Federal funds transferred to the 
                      participating State if the results of the an audit 
                      include a finding that there was an intentional or 
                      reckless misuse of transferred funds by the State.
                          (iii) Penalty for misstatement.--Any 
                      participating State that is found to have 
                      intentionally misstated any report issued to the 
                      Secretary under the Program shall be ineligible to 
                      receive any additional funds under the Program. 
                      Funds that had been allocated or that would 
                      otherwise have been allocated to

[[Page 124 STAT. 2572]]

                      such participating State shall be paid into the 
                      general fund of the Treasury for reduction of the 
                      public debt.
                          (iv) Municipalities.--In this subparagraph, 
                      the term ``participating State'' shall include a 
                      municipality given special permission to 
                      participate in the Program, under section 3004(d).
                    (D) Exception.--The Secretary may, in the 
                Secretary's discretion, transfer the full amount of the 
                participating State's allocated amount to the State in a 
                single transfer if the participating State applies to 
                the Secretary for approval to use the full amount of the 
                allocation as collateral for a qualifying loan or swap 
                funding facility.
            (2) Transferred amounts.--Each amount transferred to a 
        participating State under this section shall remain available to 
        the State until used by the State as permitted under paragraph 
        (3).
            (3) Use of transferred funds.--Each participating State may 
        use funds transferred to it under this section only--
                    (A) for making Federal contributions to, or for the 
                account of, an approved State program;
                    (B) as collateral for a qualifying loan or swap 
                funding facility;
                    (C) in the case of the first \1/3\ transferred, for 
                paying administrative costs incurred by the State in 
                implementing an approved State program in an amount not 
                to exceed 5 percent of that first \1/3\; or
                    (D) in the case of each successive \1/3\ 
                transferred, for paying administrative costs incurred by 
                the State in implementing an approved State program in 
                an amount not to exceed 3 percent of that successive \1/
                3\.
            (4) Termination of availability of amounts not transferred 
        within 2 years of participation.--Any portion of a participating 
        State's allocated amount that has not been transferred to the 
        State under this section by the end of the 2-year period 
        beginning on the date that the Secretary approves the State for 
        participation may be deemed by the Secretary to be no longer 
        allocated to the State and no longer available to the State and 
        shall be returned to the General Fund of the Treasury.
            (5) Transferred amounts not assistance.--The amounts 
        transferred to a participating State under this section shall 
        not be considered assistance for purposes of subtitle V of title 
        31, United States Code.
            (6) Definitions.--In this section--
                    (A) the term ``allocated amount'' means the total 
                amount of Federal funds allocated by the Secretary under 
                subsection (b) to the participating State; and
                    (B) the term ``\1/3\'' means--
                          (i) in the case of the first \1/3\ and second 
                      \1/3\, an amount equal to 33 percent of a 
                      participating State's allocated amount; and
                          (ii) in the case of the last \1/3\, an amount 
                      equal to 34 percent of a participating State's 
                      allocated amount.

[[Page 124 STAT. 2573]]

SEC. 3004. <<NOTE: 12 USC 5703.>>  APPROVING STATES FOR 
                          PARTICIPATION.

    (a) Application.--Any State may apply to the Secretary for approval 
to be a participating State under the Program and to be eligible for an 
allocation of Federal funds under the Program.
    (b) General Approval Criteria.--The Secretary shall approve a State 
to be a participating State, if--
            (1) a specific department, agency, or political subdivision 
        of the State has been designated to implement a State program 
        and participate in the Program;
            (2) all legal actions necessary to enable such designated 
        department, agency, or political subdivision to implement a 
        State program and participate in the Program have been 
        accomplished;
            (3) the State has filed an application with the Secretary 
        for approval of a State capital access program under section 
        3005 or approval as a State other credit support program under 
        section 3006, in each case within the time period provided in 
        the respective section; and
            (4) <<NOTE: Contracts.>>  the State and the Secretary have 
        executed an allocation agreement that--
                    (A) conforms to the requirements of this title;
                    (B) ensures that the State program complies with 
                such national standards as are established by the 
                Secretary under section 3009(a)(2);
                    (C) sets forth internal control, compliance, and 
                reporting requirements as established by the Secretary, 
                and such other terms and conditions necessary to carry 
                out the purposes of this title, including an agreement 
                by the State to allow the Secretary to audit State 
                programs;
                    (D) <<NOTE: Deadline.>>  requires that the State 
                program be fully positioned, within 90 days of the 
                State's execution of the allocation agreement with the 
                Secretary, to act on providing the kind of credit 
                support that the State program was established to 
                provide; and
                    (E) includes an agreement by the State to deliver to 
                the Secretary, and update annually, a schedule 
                describing how the State intends to apportion among its 
                State programs the Federal funds allocated to the State.

    (c) Contractual Arrangements for Implementation of State Programs.--
A State may be approved to be a participating State, and be eligible for 
an allocation of Federal funds under the Program, if the State has 
contractual arrangements for the implementation and administration of 
its State program with--
            (1) an existing, approved State program administered by 
        another State; or
            (2) an authorized agent of, or entity supervised by, the 
        State, including for-profit and not-for-profit entities.

    (d) Special Permission.--
            (1) Circumstances when a municipality may apply directly.-- 
        <<NOTE: Deadlines. Notice.>> If a State does not, within 60 days 
        after the date of enactment of this Act, file with the Secretary 
        a notice of its intent to apply for approval by the Secretary of 
        a State program or within 9 months after the date of enactment 
        of this Act, file with the Secretary a complete application for 
        approval of a State program, the Secretary may grant to 
        municipalities of that State a special permission that will 
        allow them

[[Page 124 STAT. 2574]]

        to apply directly to the Secretary without the State for 
        approval to be participating municipalities.
            (2) Timing requirements applicable to municipalities 
        applying directly.--To qualify for the special permission, a 
        municipality of a State shall be required, within 12 months 
        after the date of enactment of this Act, to file with the 
        Secretary a complete application for approval by the Secretary 
        of a State program.
            (3) Notices of intent and applications from more than 1 
        municipality.--A municipality of a State may combine with 1 or 
        more other municipalities of that State to file a joint notice 
        of intent to file and a joint application.
            (4) <<NOTE: Applicability.>>  Approval criteria.--The 
        general approval criteria in paragraphs (2) and (4) shall apply.
            (5) Allocation to municipalities.--
                    (A) If more than 3.--If more than 3 municipalities, 
                or combination of municipalities as provided in 
                paragraph (3), of a State apply for approval by the 
                Secretary to be participating municipalities under this 
                subsection, and the applications meet the approval 
                criteria in paragraph (4), the Secretary shall allocate 
                Federal funds to the 3 municipalities with the largest 
                populations.
                    (B) If 3 or fewer.--If 3 or fewer municipalities, or 
                combination of municipalities as provided in paragraph 
                (3), of a State apply for approval by the Secretary to 
                be participating municipalities under this subsection, 
                and the applications meet the approval criteria in 
                paragraph (4), the Secretary shall allocate Federal 
                funds to each applicant municipality or combination of 
                municipalities.
            (6) Apportionment of allocated amount among participating 
        municipalities.--If the Secretary approves municipalities to be 
        participating municipalities under this subsection, the 
        Secretary shall apportion the full amount of the Federal funds 
        that are allocated to that State to municipalities that are 
        approved under this subsection in amounts proportionate to the 
        population of those municipalities, based on the most recent 
        available decennial census.
            (7) Approving state programs for municipalities.--If the 
        Secretary approves municipalities to be participating 
        municipalities under this subsection, the Secretary shall take 
        into account the additional considerations in section 3006(d) in 
        making the determination under section 3005 or 3006 that the 
        State program or programs to be implemented by the participating 
        municipalities, including a State capital access program, is 
        eligible for Federal contributions to, or for the account of, 
        the State program.
SEC. 3005. <<NOTE: 12 USC 5704.>>  APPROVING STATE CAPITAL ACCESS 
                          PROGRAMS.

    (a) Application.--A participating State that establishes a new, or 
has an existing, State capital access program that meets the eligibility 
criteria in subsection (c) may apply to Secretary to have the State 
capital access program approved as eligible for Federal contributions to 
the reserve fund.
    (b) Approval.--The Secretary shall approve such State capital access 
program as eligible for Federal contributions to the reserve fund if--

[[Page 124 STAT. 2575]]

            (1) <<NOTE: Deadline.>>  within 60 days after the date of 
        enactment of this Act, the State has filed with the Secretary a 
        notice of intent to apply for approval by the Secretary of a 
        State capital access program;
            (2) <<NOTE: Deadline.>>  within 9 months after the date of 
        enactment of this Act, the State has filed with the Secretary a 
        complete application for approval by the Secretary of a capital 
        access program;
            (3) the State satisfies the requirements of subsections (a) 
        and (b) of section 3004; and
            (4) the State capital access program meets the eligibility 
        criteria in subsection (c).

    (c) Eligibility Criteria for State Capital Access Programs.--For a 
State capital access program to be approved under this section, that 
program shall be required to be a program of the State that--
            (1) provides portfolio insurance for business loans based on 
        a separate loan-loss reserve fund for each financial 
        institution;
            (2) requires insurance premiums to be paid by the financial 
        institution lenders and by the business borrowers to the reserve 
        fund to have their loans enrolled in the reserve fund;
            (3) provides for contributions to be made by the State to 
        the reserve fund in amounts at least equal to the sum of the 
        amount of the insurance premium charges paid by the borrower and 
        the financial institution to the reserve fund for any newly 
        enrolled loan; and
            (4) provides its portfolio insurance solely for loans that 
        meet both the following requirements:
                    (A) The borrower has 500 employees or less at the 
                time that the loan is enrolled in the Program.
                    (B) The loan amount does not exceed $5,000,000.

    (d) Federal Contributions to Approved State Capital Access 
Programs.--A State capital access program approved under this section 
will be eligible for receiving Federal contributions to the reserve fund 
in an amount equal to the sum of the amount of the insurance premium 
charges paid by the borrowers and by the financial institution to the 
reserve fund for loans that meet the requirements in subsection (c)(4). 
A participating State may use the Federal contribution to make its 
contribution to the reserve fund of an approved State capital access 
program.
    (e) Minimum Program Requirements for State Capital Access 
Programs. <<NOTE: Regulations.>> --The Secretary shall, by regulation or 
other guidance, prescribe Program requirements that meet the following 
minimum requirements:
            (1) <<NOTE: Determination.>>  Experience and capacity.--The 
        participating State shall determine for each financial 
        institution that participates in the State capital access 
        program, after consultation with the appropriate Federal banking 
        agency or, in the case of a financial institution that is a 
        nondepository community development financial institution, the 
        Community Development Financial Institution Fund, that the 
        financial institution has sufficient commercial lending 
        experience and financial and managerial capacity to participate 
        in the approved State capital access program. The determination 
        by the State shall not be reviewable by the Secretary.
            (2) Investment authority.--Subject to applicable State law, 
        the participating State may invest, or cause to be invested,

[[Page 124 STAT. 2576]]

        funds held in a reserve fund by establishing a deposit account 
        at the financial institution lender in the name of the 
        participating State. In the event that funds in the reserve fund 
        are not deposited in such an account, such funds shall be 
        invested in a form that the participating State determines is 
        safe and liquid.
            (3) Loan terms and conditions to be determined by 
        agreement.--A loan to be filed for enrollment in an approved 
        State capital access program may be made with such interest 
        rate, fees, and other terms and conditions, and the loan may be 
        enrolled in the approved State capital access program and claims 
        may be filed and paid, as agreed upon by the financial 
        institution lender and the borrower, consistent with applicable 
        law.
            (4) Lender capital at-risk.--A loan to be filed for 
        enrollment in the State capital access program shall require the 
        financial institution lender to have a meaningful amount of its 
        own capital resources at risk in the loan.
            (5) Premium charges minimum and maximum amounts.--The 
        insurance premium charges payable to the reserve fund by the 
        borrower and the financial institution lender shall be 
        prescribed by the financial institution lender, within minimum 
        and maximum limits that require that the sum of the insurance 
        premium charges paid in connection with a loan by the borrower 
        and the financial institution lender may not be less than 2 
        percent nor more than 7 percent of the amount of the loan 
        enrolled in the approved State capital access program.
            (6) State contributions.--In enrolling a loan in an approved 
        State capital access program, the participating State may make a 
        contribution to the reserve fund to supplement Federal 
        contributions made under this Program.
            (7) Loan purpose.--
                    (A) Particular loan purpose requirements and 
                prohibitions.--In connection with the filing of a loan 
                for enrollment in an approved State capital access 
                program, the financial institution lender--
                          (i) shall obtain an assurance from each 
                      borrower that--
                                    (I) the proceeds of the loan will be 
                                used for a business purpose;
                                    (II) the loan will not be used to 
                                finance such business activities as the 
                                Secretary, by regulation, may proscribe 
                                as prohibited loan purposes for 
                                enrollment in an approved State capital 
                                access program; and
                                    (III) the borrower is not--
                                            (aa) an executive officer, 
                                        director, or principal 
                                        shareholder of the financial 
                                        institution lender;
                                            (bb) a member of the 
                                        immediate family of an executive 
                                        officer, director, or principal 
                                        shareholder of the financial 
                                        institution lender; or
                                            (cc) a related interest of 
                                        any such executive officer, 
                                        director, principal shareholder, 
                                        or member of the immediate 
                                        family;

[[Page 124 STAT. 2577]]

                          (ii) shall provide assurances to the 
                      participating State that the loan has not been 
                      made in order to place under the protection of the 
                      approved State capital access program prior debt 
                      that is not covered under the approved State 
                      capital access program and that is or was owed by 
                      the borrower to the financial institution lender 
                      or to an affiliate of the financial institution 
                      lender;
                          (iii) shall not allow the enrollment of a loan 
                      to a borrower that is a refinancing of a loan 
                      previously made to that borrower by the financial 
                      institution lender or an affiliate of the 
                      financial institution lender; and
                          (iv) may include additional restrictions on 
                      the eligibility of loans or borrowers that are not 
                      inconsistent with the provisions and purposes of 
                      this title, including compliance with all 
                      applicable Federal and State laws, regulations, 
                      ordinances, and Executive orders.
                    (B) Definitions.--In this paragraph, the terms 
                ``executive officer'', ``director'', ``principal 
                shareholder'', ``immediate family'', and ``related 
                interest'' refer to the same relationship to a financial 
                institution lender as the relationship described in part 
                215 of title 12 of the Code of Federal Regulations, or 
                any successor to such part.
            (8) Capital access for small businesses in underserved 
        communities.--At the time that a State applies to the Secretary 
        to have the State capital access program approved as eligible 
        for Federal contributions, the State shall deliver to the 
        Secretary a report stating how the State plans to use the 
        Federal contributions to the reserve fund to provide access to 
        capital for small businesses in low- and moderate-income, 
        minority, and other underserved communities, including women- 
        and minority-owned small businesses.
SEC. 3006. <<NOTE: 12 USC 5705.>>  APPROVING COLLATERAL SUPPORT 
                          AND OTHER INNOVATIVE CREDIT ACCESS AND 
                          GUARANTEE INITIATIVES FOR SMALL 
                          BUSINESSES AND MANUFACTURERS.

    (a) Application.--A participating State that establishes a new, or 
has an existing, credit support program that meets the eligibility 
criteria in subsection (c) may apply to the Secretary to have the State 
other credit support program approved as eligible for Federal 
contributions to, or for the account of, the State program.
    (b) Approval.--The Secretary shall approve such State other credit 
support program as eligible for Federal contributions to, or for the 
account of, the program if--
            (1) the Secretary determines that the State satisfies the 
        requirements of paragraphs (1) through (3) of section 3005(b);
            (2) the Secretary determines that the State other credit 
        support program meets the eligibility criteria in subsection 
        (c);
            (3) the Secretary determines the State other credit support 
        program to be eligible based on the additional considerations in 
        subsection (d); and
            (4) <<NOTE: Deadline.>>  within 9 months after the date of 
        enactment of this Act, the State has filed with Treasury a 
        complete application for Treasury approval.

[[Page 124 STAT. 2578]]

    (c) Eligibility Criteria for State Other Credit Support Programs.--
For a State other credit support program to be approved under this 
section, that program shall be required to be a program of the State 
that--
            (1) can demonstrate that, at a minimum, $1 of public 
        investment by the State program will cause and result in $1 of 
        new private credit;
            (2) can demonstrate a reasonable expectation that, when 
        considered with all other State programs of the State, such 
        State programs together have the ability to use amounts of new 
        Federal contributions to, or for the account of, all such 
        programs in the State to cause and result in amounts of new 
        small business lending at least 10 times the new Federal 
        contribution amount;
            (3) for those State other credit support programs that 
        provide their credit support through 1 or more financial 
        institution lenders, requires the financial institution lenders 
        to have a meaningful amount of their own capital resources at 
        risk in their small business lending; and
            (4) uses Federal funds allocated under this title to extend 
        credit support that--
                    (A) targets an average borrower size of 500 
                employees or less;
                    (B) does not extend credit support to borrowers that 
                have more than 750 employees;
                    (C) targets support towards loans with an average 
                principal amount of $5,000,000 or less; and
                    (D) does not extend credit support to loans that 
                exceed a principal amount of $20,000,000.

    (d) Additional Considerations.--In making a determination that a 
State other credit support program is eligible for Federal contributions 
to, or for the account of, the State program, the Secretary shall take 
into account the following additional considerations:
            (1) The anticipated benefits to the State, its businesses, 
        and its residents to be derived from the Federal contributions 
        to, or for the account of, the approved State other credit 
        support program, including the extent to which resulting small 
        business lending will expand economic opportunities.
            (2) The operational capacity, skills, and experience of the 
        management team of the State other credit support program.
            (3) The capacity of the State other credit support program 
        to manage increases in the volume of its small business lending.
            (4) The internal accounting and administrative controls 
        systems of the State other credit support program, and the 
        extent to which they can provide reasonable assurance that funds 
        of the State program are safeguarded against waste, loss, 
        unauthorized use, or misappropriation.
            (5) The soundness of the program design and implementation 
        plan of the State other credit support program.

    (e) Federal Contributions to Approved State Other Credit Support 
Programs.--A State other credit support program approved under this 
section will be eligible for receiving Federal contributions to, or for 
the account of, the State program in an amount consistent with the 
schedule describing the apportionment of allocated Federal funds among 
State programs delivered by the State to the Secretary under the 
allocation agreement.

[[Page 124 STAT. 2579]]

    (f) Minimum Program Requirements for State Other Credit Support 
Programs.--
            (1) Fund to prescribe. <<NOTE: Regulations.>> --The 
        Secretary shall, by regulation or other guidance, prescribe 
        Program requirements for approved State other credit support 
        programs.
            (2) Considerations for fund.--In prescribing minimum Program 
        requirements for approved State other credit support programs, 
        the Secretary shall take into consideration, to the extent the 
        Secretary determines applicable and appropriate, the minimum 
        Program requirements for approved State capital access programs 
        in section 3005(e).
SEC. 3007. <<NOTE: 12 USC 5706.>>  REPORTS.

    (a) Quarterly Use-of-funds Report.--
            (1) In general.--Not later than 30 days after the beginning 
        of each calendar quarter, beginning after the first full 
        calendar quarter to occur after the date the Secretary approves 
        a State for participation, the participating State shall submit 
        to the Secretary a report on the use of Federal funding by the 
        participating State during the previous calendar quarter.
            (2) Report contents.--Each report under this subsection 
        shall--
                    (A) indicate the total amount of Federal funding 
                used by the participating State; and
                    (B) include a certification by the participating 
                State that--
                          (i) the information provided in accordance 
                      with subparagraph (A) is accurate;
                          (ii) funds continue to be available and 
                      legally committed to contributions by the State 
                      to, or for the account of, approved State 
                      programs, less any amount that has been 
                      contributed by the State to, or for the account 
                      of, approved State programs subsequent to the 
                      State being approved for participation in the 
                      Program; and
                          (iii) the participating State is implementing 
                      its approved State program or programs in 
                      accordance with this title and regulations issued 
                      under section 3010.

    (b) <<NOTE: Effective date.>>  Annual Report.--Not later than March 
31 of each year, beginning March 31, 2011, each participating State 
shall submit to the Secretary an annual report that shall include the 
following information:
            (1) The number of borrowers that received new loans 
        originated under the approved State program or programs after 
        the State program was approved as eligible for Federal 
        contributions.
            (2) The total amount of such new loans.
            (3) Breakdowns by industry type, loan size, annual sales, 
        and number of employees of the borrowers that received such new 
        loans.
            (4) The zip code of each borrower that received such a new 
        loan.
            (5) Such other data as the Secretary, in the Secretary's 
        sole discretion, may require to carry out the purposes of the 
        Program.

[[Page 124 STAT. 2580]]

    (c) Form.--The reports and data filed under subsections (a) and (b) 
shall be in such form as the Secretary, in the Secretary's sole 
discretion, may require.
    (d) Termination of Reporting Requirements.--The requirement to 
submit reports under subsections (a) and (b) shall terminate for a 
participating State with the submission of the completed reports due on 
the first March 31 to occur after 5 complete 12-month periods after the 
State is approved by the Secretary to be a participating State.
SEC. 3008. <<NOTE: 12 USC 5707.>>  REMEDIES FOR STATE PROGRAM 
                          TERMINATION OR FAILURES.

    (a) Remedies.--
            (1) In general.--If any of the events listed in paragraph 
        (2) occur, the Secretary, in the Secretary's discretion, may--
                    (A) reduce the amount of Federal funds allocated to 
                the State under the Program; or
                    (B) terminate any further transfers of allocated 
                amounts that have not yet been transferred to the State.
            (2) Causal events.--The events referred to in paragraph (1) 
        are--
                    (A) termination by a participating State of its 
                participation in the Program;
                    (B) failure on the part of a participating State to 
                submit complete reports under section 3007 on a timely 
                basis; or
                    (C) noncompliance by the State with the terms of the 
                allocation agreement between the Secretary and the 
                State.

    (b) Deallocated Amounts To Be Reallocated.-- <<NOTE: Time 
period.>> If, after 13 months, any portion of the amount of Federal 
funds allocated to a participating State is deemed by the Secretary to 
be no longer allocated to the State after actions taken by the Secretary 
under subsection (a)(1), the Secretary shall reallocate that portion 
among the participating States, excluding the State whose allocated 
funds were deemed to be no longer allocated, as provided in section 
3003(b).
SEC. 3009. <<NOTE: 12 USC 5708.>>  IMPLEMENTATION AND 
                          ADMINISTRATION.

    (a) General Authorities and Duties.--The Secretary shall--
            (1) <<NOTE: Consultation.>>  consult with the Administrator 
        of the Small Business Administration and the appropriate Federal 
        banking agencies on the administration of the Program;
            (2) <<NOTE: Standards.>>  establish minimum national 
        standards for approved State programs;
            (3) provide technical assistance to States for starting 
        State programs and generally disseminate best practices;
            (4) manage, administer, and perform necessary program 
        integrity functions for the Program; and
            (5) ensure adequate oversight of the approved State 
        programs, including oversight of the cash flows, performance, 
        and compliance of each approved State program.

    (b) Appropriations.--There is hereby appropriated to the Secretary, 
out of funds in the Treasury not otherwise appropriated, $1,500,000,000 
to carry out the Program, including to pay reasonable costs of 
administering the Program.

[[Page 124 STAT. 2581]]

    (c) Termination of Secretary's Program Administration Functions.-- 
<<NOTE: Time period.>> The authorities and duties of the Secretary to 
implement and administer the Program shall terminate at the end of the 
7-year period beginning on the date of enactment of this Act.

    (d) Expedited Contracting.-- <<NOTE: Time period.>> During the 1-
year period beginning on the date of enactment of this Act, the 
Secretary may enter into contracts without regard to any other provision 
of law regarding public contracts, for purposes of carrying out this 
title.
SEC. 3010. <<NOTE: 12 USC 5709.>>  REGULATIONS.

    The Secretary, in consultation with the Administrator of the Small 
Business Administration, shall issue such regulations and other guidance 
as the Secretary determines necessary or appropriate to implement this 
title including to define terms, to establish compliance and reporting 
requirements, and such other terms and conditions necessary to carry out 
the purposes of this title.
SEC. 3011. <<NOTE: 12 USC 5710.>>  OVERSIGHT AND AUDITS.

    (a) Inspector General Oversight.--The Inspector General of the 
Department of the Treasury shall conduct, supervise, and coordinate 
audits and investigations of the use of funds made available under the 
Program.
    (b) GAO Audit.--The Comptroller General of the United States shall 
perform an annual audit of the Program and issue a report to the 
appropriate committees of Congress containing the results of such audit.
    (c) Required Certification.--
            (1) Financial institutions certification.--With respect to 
        funds received by a participating State under the Program, any 
        financial institution that receives a loan, a loan guarantee, or 
        other financial assistance using such funds after the date of 
        the enactment of this Act shall certify that such institution is 
        in compliance with the requirements of section 103.121 of title 
        31, Code of Federal Regulations, a regulation that, at a 
        minimum, requires financial institutions, as that term is 
        defined in section 5312 (a)(2) and (c)(1)(A) of title 31, United 
        States Code, to implement reasonable procedures to verify the 
        identity of any person seeking to open an account, to the extent 
        reasonable and practicable, maintain records of the information 
        used to verify the person's identity, and determine whether the 
        person appears on any lists of known or suspected terrorists or 
        terrorist organizations provided to the financial institution by 
        any government agency.
            (2) Sex offense certification.--With respect to funds 
        received by a participating State under the Program, any private 
        entity that receives a loan, a loan guarantee, or other 
        financial assistance using such funds after the date of the 
        enactment of this Act shall certify to the participating State 
        that the principals of such entity have not been convicted of a 
        sex offense against a minor (as such terms are defined in 
        section 111 of the Sex Offender Registration and Notification 
        Act (42 U.S.C. 16911)).

    (d) Prohibition on Pornography.--None of the funds made available 
under this title may be used to pay the salary of any individual engaged 
in activities related to the Program who has been officially disciplined 
for violations of subpart G of the Standards of Ethical Conduct for 
Employees of the Executive Branch for viewing, downloading, or 
exchanging pornography, including

[[Page 124 STAT. 2582]]

child pornography, on a Federal Government computer or while performing 
official Federal Government duties.

             TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS

Subtitle A-- <<NOTE: 12 USC 4741 note.>> Small Business Lending Fund
SEC. 4101. PURPOSE.

    The purpose of this subtitle is to address the ongoing effects of 
the financial crisis on small businesses by providing temporary 
authority to the Secretary of the Treasury to make capital investments 
in eligible institutions in order to increase the availability of credit 
for small businesses.
SEC. 4102. DEFINITIONS.

    For purposes of this subtitle:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Small Business and 
                Entrepreneurship, the Committee on Agriculture, 
                Nutrition, and Forestry, the Committee on Banking, 
                Housing, and Urban Affairs, the Committee on Finance, 
                the Committee on the Budget, and the Committee on 
                Appropriations of the Senate; and
                    (B) the Committee on Small Business, the Committee 
                on Agriculture, the Committee on Financial Services, the 
                Committee on Ways and Means, the Committee on the 
                Budget, and the Committee on Appropriations of the House 
                of Representatives.
            (2) Appropriate federal banking agency.--The term 
        ``appropriate Federal banking agency'' has the meaning given 
        such term under section 3(q) of the Federal Deposit Insurance 
        Act (12 U.S.C. 1813(q)).
            (3) Bank holding company.--The term ``bank holding company'' 
        has the meaning given such term under section 2(a)(1) of the 
        Bank Holding Company Act of 1956 (12 U.S.C. 1841(2)(a)(1)).
            (4) Call report.--The term ``call report'' means--
                    (A) reports of Condition and Income submitted to the 
                Office of the Comptroller of the Currency, the Board of 
                Governors of the Federal Reserve System, and the Federal 
                Deposit Insurance Corporation;
                    (B) the Office of Thrift Supervision Thrift 
                Financial Report;
                    (C) any report that is designated by the Office of 
                the Comptroller of the Currency, the Board of Governors 
                of the Federal Reserve System, the Federal Deposit 
                Insurance Corporation, or the Office of Thrift 
                Supervision, as applicable, as a successor to any report 
                referred to in subparagraph (A) or (B);
                    (D) reports of Condition and Income as designated 
                through guidance developed by the Secretary, in 
                consultation with the Director of the Community 
                Development Financial Institutions Fund; and

[[Page 124 STAT. 2583]]

                    (E) with respect to an eligible institution for 
                which no report exists that is described under 
                subparagraph (A), (B), (C), or (D), such other report or 
                set of information as the Secretary, in consultation 
                with the Administrator of the Small Business 
                Administration, may prescribe.
            (5) CDCI.--The term ``CDCI'' means the Community Development 
        Capital Initiative created by the Secretary under the Troubled 
        Asset Relief Program established by the Emergency Economic 
        Stabilization Act of 2008.
            (6) CDCI investment.--The term ``CDCI investment'' means, 
        with respect to any eligible institution, the principal amount 
        of any investment made by the Secretary in such eligible 
        institution under the CDCI that has not been repaid.
            (7) CDFI; community development financial institution.--The 
        terms ``CDFI'' and ``community development financial 
        institution'' have the meaning given the term ``community 
        development financial institution'' under the Riegle Community 
        Development and Regulatory Improvement Act of 1994.
            (8) CDLF; community development loan fund.--The terms 
        ``CDLF'' and ``community development loan fund'' mean any entity 
        that--
                    (A) is certified by the Department of the Treasury 
                as a community development financial institution loan 
                fund;
                    (B) is exempt from taxation under the Internal 
                Revenue Code of 1986; and
                    (C) had assets less than or equal to $10,000,000,000 
                as of the end of the fourth quarter of calendar year 
                2009.
            (9) CPP.--The term ``CPP'' means the Capital Purchase 
        Program created by the Secretary under the Troubled Asset Relief 
        Program established by the Emergency Economic Stabilization Act 
        of 2008.
            (10) CPP investment.--The term ``CPP investment'' means, 
        with respect to any eligible institution, the principal amount 
        of any investment made by the Secretary in such eligible 
        institution under the CPP that has not been repaid.
            (11) Eligible institution.--The term ``eligible 
        institution'' means--
                    (A) any insured depository institution, which--
                          (i) is not controlled by a bank holding 
                      company or savings and loan holding company that 
                      is also an eligible institution;
                          (ii) has total assets of equal to or less than 
                      $10,000,000,000, as reported in the call report of 
                      the insured depository institution as of the end 
                      of the fourth quarter of calendar year 2009; and
                          (iii) is not directly or indirectly controlled 
                      by any company or other entity that has total 
                      consolidated assets of more than $10,000,000,000, 
                      as so reported;
                    (B) any bank holding company which has total 
                consolidated assets of equal to or less than 
                $10,000,000,000, as reported in the call report of the 
                bank holding company as of the end of the fourth quarter 
                of calendar year 2009;
                    (C) any savings and loan holding company which has 
                total consolidated assets of equal to or less than 
                $10,000,000,000, as reported in the call report of the

[[Page 124 STAT. 2584]]

                savings and loan holding company as of the end of the 
                fourth quarter of calendar year 2009; and
                    (D) any community development financial institution 
                loan fund which has total assets of equal to or less 
                than $10,000,000,000, as reported in audited financial 
                statements for the fiscal year of the community 
                development financial institution loan fund that ends in 
                calendar year 2009.
            (12) Fund.--The term ``Fund'' means the Small Business 
        Lending Fund established under section 4103(a)(1).
            (13) Insured depository institution.--The term ``insured 
        depository institution'' has the meaning given such term under 
        section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
        1813(c)(2)).
            (14) Minority-owned and women-owned business.--The terms 
        ``minority-owned business'' and ``women-owned business'' shall 
        have the meaning given the terms ``minority-owned business'' and 
        ``women's business'', respectively, under section 21A(r)(4) of 
        the Federal Home Loan Bank Act (12 U.S.C. 1441A(r)(4)).
            (15) Program.--The term ``Program'' means the Small Business 
        Lending Fund Program authorized under section 4103(a)(2).
            (16) Savings and loan holding company.--The term ``savings 
        and loan holding company'' has the meaning given such term under 
        section 10(a)(1)(D) of the Home Owners' Loan Act (12 U.S.C. 
        1467a(a)(1)(D)).
            (17) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (18) Small business lending.--
                    (A) In general.--The term ``small business lending'' 
                means lending, as defined by and reported in an eligible 
                institutions' quarterly call report, where each loan 
                comprising such lending is one of the following types:
                          (i) Commercial and industrial loans.
                          (ii) Owner-occupied nonfarm, nonresidential 
                      real estate loans.
                          (iii) Loans to finance agricultural production 
                      and other loans to farmers.
                          (iv) Loans secured by farmland.
                    (B) Exclusion.--No loan that has an original amount 
                greater than $10,000,000 or that goes to a business with 
                more than $50,000,000 in revenues shall be included in 
                the measure.
                    (C) Treatment of holding companies.--In the case of 
                eligible institutions that are bank holding companies or 
                savings and loan holding companies having one or more 
                insured depository institution subsidiaries, small 
                business lending shall be measured based on the combined 
                small business lending reported in the call report of 
                the insured depository institution subsidiaries.
            (19) Veteran-owned business.--
                    (A) The term ``veteran-owned business'' means a 
                business--
                          (i) more than 50 percent of the ownership or 
                      control of which is held by 1 or more veterans;

[[Page 124 STAT. 2585]]

                          (ii) more than 50 percent of the net profit or 
                      loss of which accrues to 1 or more veterans; and
                          (iii) a significant percentage of senior 
                      management positions of which are held by 
                      veterans.
                    (B) For purposes of this paragraph, the term 
                ``veteran'' has the meaning given such term in section 
                101(2) of title 38, United States Code.
SEC. 4103. SMALL BUSINESS LENDING FUND.

    (a) Fund and Program.--
            (1) Fund established.--There is established in the Treasury 
        of the United States a fund to be known as the ``Small Business 
        Lending Fund'', which shall be administered by the Secretary.
            (2) Programs authorized.--The Secretary is authorized to 
        establish the Small Business Lending Fund Program for using the 
        Fund consistent with this subtitle.

    (b) Use of Fund.--
            (1) In general.--Subject to paragraph (2), the Fund shall be 
        available to the Secretary, without further appropriation or 
        fiscal year limitation, for the costs of purchases (including 
        commitments to purchase), and modifications of such purchases, 
        of preferred stock and other financial instruments from eligible 
        institutions on such terms and conditions as are determined by 
        the Secretary in accordance with this subtitle. For purposes of 
        this paragraph and with respect to an eligible institution, the 
        term ``other financial instruments'' shall include only debt 
        instruments for which such eligible institution is fully liable 
        or equity equivalent capital of the eligible institution. Such 
        debt instruments may be subordinated to the claims of other 
        creditors of the eligible institution.
            (2) Maximum purchase limit.--The aggregate amount of 
        purchases (and commitments to purchase) made pursuant to 
        paragraph (1) may not exceed $30,000,000,000.
            (3) Proceeds used to pay down public debt.--All funds 
        received by the Secretary in connection with purchases made 
        pursuant to paragraph (1), including interest payments, dividend 
        payments, and proceeds from the sale of any financial 
        instrument, shall be paid into the general fund of the Treasury 
        for reduction of the public debt.
            (4) Limitation on purchases from cdlfs.--
                    (A) In general.--Not more than 1 percent of the 
                maximum purchase limit of the Program, pursuant to 
                paragraph (2), may be used to make purchases from 
                community development loan funds.
                    (B) Eligibility standards.--The Secretary, in 
                consultation with the Community Development Financial 
                Institutions Fund, shall develop eligibility criteria to 
                determine the financial ability of a CDLF to participate 
                in the Program and repay the investment. Such criteria 
                shall include the following:
                          (i) Ratio of net assets to total assets is at 
                      least 20 percent.
                          (ii) Ratio of loan loss reserves to loans and 
                      leases 90 days or more delinquent (including loans 
                      sold with full recourse) is at least 30 percent.

[[Page 124 STAT. 2586]]

                          (iii) Positive net income measured on a 3-year 
                      rolling average.
                          (iv) Operating liquidity ratio of at least 1.0 
                      for the 4 most recent quarters and for one or both 
                      of the two preceding years.
                          (v) Ratio of loans and leases 90 days or more 
                      delinquent (including loans sold with full 
                      recourse) to total equity plus loan loss reserves 
                      is less than 40 percent.
                    (C) Requirement to submit audited financial 
                statements.--CDLFs participating in the Program shall 
                submit audited financial statements to the Secretary, 
                have a clean audit opinion, and have at least 3 years of 
                operating experience.

    (c) Credits to the Fund.--There shall be credited to the Fund 
amounts made available pursuant to section 4108, to the extent provided 
by appropriations Acts.
    (d) Terms.--
            (1) Application.--
                    (A) Institutions with assets of $1,000,000,000 or 
                less.--Eligible institutions having total assets equal 
                to or less than $1,000,000,000, as reported in a call 
                report as of the end of the fourth quarter of calendar 
                year 2009, may apply to receive a capital investment 
                from the Fund in an amount not exceeding 5 percent of 
                risk-weighted assets, as reported in the call report 
                immediately preceding the date of application, less the 
                amount of any CDCI investment and any CPP investment.
                    (B) Institutions with assets of more than 
                $1,000,000,000 and less than or equal to 
                $10,000,000,000.--Eligible institutions having total 
                assets of more than $1,000,000,000 but less than 
                $10,000,000,000, as of the end of the fourth quarter of 
                calendar year 2009, may apply to receive a capital 
                investment from the Fund in an amount not exceeding 3 
                percent of risk-weighted assets, as reported in the call 
                report immediately preceding the date of application, 
                less the amount of any CDCI investment and any CPP 
                investment.
                    (C) Treatment of holding companies.--In the case of 
                an eligible institution that is a bank holding company 
                or a savings and loan holding company having one or more 
                insured depository institution subsidiaries, total 
                assets shall be measured based on the combined total 
                assets reported in the call report of the insured 
                depository institution subsidiaries as of the end of the 
                fourth quarter of calendar year 2009 and risk-weighted 
                assets shall be measured based on the combined risk-
                weighted assets of the insured depository institution 
                subsidiaries as reported in the call report immediately 
                preceding the date of application.
                    (D) Treatment of applicants that are institutions 
                controlled by holding companies.--If an eligible 
                institution that applies to receive a capital investment 
                under the Program is under the control of a bank holding 
                company or a savings and loan holding company, then the 
                Secretary may use the Fund to purchase preferred stock 
                or other

[[Page 124 STAT. 2587]]

                financial instruments from the top-tier bank holding 
                company or savings and loan holding company of such 
                eligible institution, as applicable. For purposes of 
                this subparagraph, the term ``control'' with respect to 
                a bank holding company shall have the same meaning as in 
                section 2(a)(2) of the Bank Holding Company Act of 1956 
                (12 U.S.C. 1841(2)(a)(2)). For purposes of this 
                subparagraph, the term ``control'' with respect to a 
                savings and loan holding company shall have the same 
                meaning as in 10(a)(2) of the Home Owners' Loan Act (12 
                U.S.C. 1467a(a)(2)).
                    (E) Requirement to provide a small business lending 
                plan.--At the time that an applicant submits an 
                application to the Secretary for a capital investment 
                under the Program, the applicant shall deliver to the 
                appropriate Federal banking agency, and, for applicants 
                that are State-chartered banks, to the appropriate State 
                banking regulator, a small business lending plan 
                describing how the applicant's business strategy and 
                operating goals will allow it to address the needs of 
                small businesses in the areas it serves, as well as a 
                plan to provide linguistically and culturally 
                appropriate outreach, where appropriate. In the case of 
                eligible institutions that are community development 
                loan funds, this plan shall be submitted to the 
                Secretary. <<NOTE: Confidentiality.>>  This plan shall 
                be confidential supervisory information.
                    (F) Treatment of applicants that are community 
                development loan funds.--Eligible institutions that are 
                community development loan funds may apply to receive a 
                capital investment from the Fund in an amount not 
                exceeding 5 percent of total assets, as reported in the 
                audited financial statements for the fiscal year of the 
                eligible institution that ends in calendar year 2009.
            (2) Consultation with regulators.--For each eligible 
        institution that applies to receive a capital investment under 
        the Program, the Secretary shall--
                    (A) consult with the appropriate Federal banking 
                agency or, in the case of an eligible institution that 
                is a nondepository community development financial 
                institution, the Community Development Financial 
                Institution Fund, for the eligible institution, to 
                determine whether the eligible institution may receive 
                such capital investment;
                    (B) in the case of an eligible institution that is a 
                State-chartered bank, consider any views received from 
                the State banking regulator of the State of the eligible 
                institution regarding the financial condition of the 
                eligible institution; and
                    (C) in the case of a community development financial 
                institution loan fund, consult with the Community 
                Development Financial Institution Fund.
            (3) Consideration of matched private investments.--
                    (A) In general.--For an eligible institution that 
                applies to receive a capital investment under the 
                Program, if the entity to be consulted under paragraph 
                (2) would not otherwise recommend the eligible 
                institution to receive the capital investment, the 
                Secretary, in consultation with the entity to be so 
                consulted, may consider whether the

[[Page 124 STAT. 2588]]

                entity to be consulted would recommend the eligible 
                institution to receive a capital investment based on the 
                financial condition of the institution if the conditions 
                in subparagraph (B) are satisfied.
                    (B) Conditions.--The conditions referred to in 
                subparagraph (A) are as follows:
                          (i) Capital sources.--The eligible institution 
                      shall receive capital both under the Program and 
                      from private, nongovernment investors.
                          (ii) Amount of capital.--The amount of capital 
                      to be received under the Program shall not exceed 
                      3 percent of risk-weighted assets, as reported in 
                      the call report immediately preceding the date of 
                      application, less the amount of any CDCI 
                      investment and any CPP investment.
                          (iii) Terms.--The amount of capital to be 
                      received from private, nongovernment investors 
                      shall be--
                                    (I) equal to or greater than 100 
                                percent of the capital to be received 
                                under the Program; and
                                    (II) subordinate to the capital 
                                investment made by the Secretary under 
                                the Program.
            (4) Ineligibility of institutions on fdic problem bank 
        list.--
                    (A) In general.--An eligible institution may not 
                receive any capital investment under the Program, if--
                          (i) such institution is on the FDIC problem 
                      bank list; or
                          (ii) such institution has been removed from 
                      the FDIC problem bank list for less than 90 days.
                    (B) Construction.--Nothing in subparagraph (A) shall 
                be construed as limiting the discretion of the Secretary 
                to deny the application of an eligible institution that 
                is not on the FDIC problem bank list.
                    (C) FDIC problem bank list defined.--For purposes of 
                this paragraph, the term ``FDIC problem bank list'' 
                means the list of depository institutions having a 
                current rating of 4 or 5 under the Uniform Financial 
                Institutions Rating System, or such other list 
                designated by the Federal Deposit Insurance Corporation.
            (5) Incentives to lend.--
                    (A) Requirements on preferred stock and other 
                financial instruments.--Any preferred stock or other 
                financial instrument issued to Treasury by an eligible 
                institution receiving a capital investment under the 
                Program shall provide that--
                          (i) the rate at which dividends or interest 
                      are payable shall be 5 percent per annum 
                      initially;
                          (ii) <<NOTE: Time period.>>  within the first 
                      2 years after the date of the capital investment 
                      under the Program, the rate may be adjusted based 
                      on the amount of an eligible institution's small 
                      business lending. Changes in the amount of small 
                      business lending shall be measured against the 
                      average amount of small business lending reported 
                      by the eligible institution in its call reports 
                      for the 4 full quarters immediately preceding the 
                      date of enactment of this Act, minus adjustments 
                      from each quarterly balance in respect of--

[[Page 124 STAT. 2589]]

                                    (I) net loan charge offs with 
                                respect to small business lending; and
                                    (II) gains realized by the eligible 
                                institution resulting from mergers, 
                                acquisitions or purchases of loans after 
                                origination and syndication; which 
                                adjustments shall be determined in 
                                accordance with guidance promulgated by 
                                the Secretary; and
                          (iii) during any calendar quarter during the 
                      initial 2-year period referred to in clause (ii), 
                      an institution's rate shall be adjusted to reflect 
                      the following schedule, based on that 
                      institution's change in the amount of small 
                      business lending relative to the baseline--
                                    (I) if the amount of small business 
                                lending has increased by less than 2.5 
                                percent, the dividend or interest rate 
                                shall be 5 percent;
                                    (II) if the amount of small business 
                                lending has increased by 2.5 percent or 
                                greater, but by less than 5.0 percent, 
                                the dividend or interest rate shall be 4 
                                percent;
                                    (III) if the amount of small 
                                business lending has increased by 5.0 
                                percent or greater, but by less than 7.5 
                                percent, the dividend or interest rate 
                                shall be 3 percent;
                                    (IV) if the amount of small business 
                                lending has increased by 7.5 percent or 
                                greater, and but by less than 10.0 
                                percent, the dividend or interest rate 
                                shall be 2 percent; or
                                    (V) if the amount of small business 
                                lending has increased by 10 percent or 
                                greater, the dividend or interest rate 
                                shall be 1 percent.
                    (B) Basis of initial rate.--The initial dividend or 
                interest rate shall be based on call report data 
                published in the quarter immediately preceding the date 
                of the capital investment under the Program.
                    (C) Timing of rate adjustments.--Any rate adjustment 
                shall occur in the calendar quarter following the 
                publication of call report data, such that the rate 
                based on call report data from any one calendar quarter, 
                which is published in the first following calendar 
                quarter, shall be adjusted in that first following 
                calendar quarter and payable in the second following 
                quarter.
                    (D) Rate following initial 2-year period.--
                Generally, the rate based on call report data from the 
                eighth calendar quarter after the date of the capital 
                investment under the Program shall be payable until the 
                expiration of the 4\1/2\-year period that begins on the 
                date of the investment. In the case where the amount of 
                small business lending has remained the same or 
                decreased relative to the institution's baseline in the 
                eighth quarter after the date of the capital investment 
                under the Program, the rate shall be 7 percent until the 
                expiration of the 4\1/2\-year period that begins on the 
                date of the investment.
                    (E) Rate following initial 4\1/2\ -year period.--The 
                dividend or interest rate paid on any preferred stock or 
                other financial instrument issued by an eligible 
                institution that receives a capital investment under the 
                Program shall increase to 9 percent at the end of the 
                4\1/2\-year period

[[Page 124 STAT. 2590]]

                that begins on the date of the capital investment under 
                the Program.
                    (F) Limitation on rate reductions with respect to 
                certain amount.--The reduction in the dividend or 
                interest rate payable to Treasury by any eligible 
                institution shall be limited such that the rate 
                reduction shall not apply to a dollar amount of the 
                investment made by Treasury that is greater than the 
                dollar amount increase in the amount of small business 
                lending realized under this 
                program. <<NOTE: Applicability.>>  The Secretary may 
                issue guidelines that will apply to new capital 
                investments limiting the amount of capital available to 
                eligible institutions consistent with this limitation.
                    (G) Rate adjustments for s corporation.--Before 
                making a capital investment in an eligible institution 
                that is an S corporation or a corporation organized on a 
                mutual basis, the Secretary may adjust the dividend or 
                interest rate on the financial instrument to be issued 
                to the Secretary, from the dividend or interest rate 
                that would apply under subparagraphs (A) through (F), to 
                take into account any differential tax treatment of 
                securities issued by such eligible institution. For 
                purpose of this subparagraph, the term ``S corporation'' 
                has the same meaning as in section 1361(a) of the 
                Internal Revenue Code of 1986.
                    (H) Repayment deadline.--The capital investment 
                received by an eligible institution under the Program 
                shall be evidenced by preferred stock or other financial 
                instrument that--
                          (i) includes, as a term and condition, that 
                      the capital investment will--
                                    (I) be repaid not later than the end 
                                of the 10-year period beginning on the 
                                date of the capital investment under the 
                                Program; or
                                    (II) <<NOTE: Terms.>>  at the end of 
                                such 10-year period, be subject to such 
                                additional terms as the Secretary shall 
                                prescribe, which shall include a 
                                requirement that the stock or instrument 
                                shall carry the highest dividend or 
                                interest rate payable; and
                          (ii) provides that the term and condition 
                      described under clause (i) shall not apply if the 
                      application of that term and condition would 
                      adversely affect the capital treatment of the 
                      stock or financial instrument under current or 
                      successor applicable capital provisions compared 
                      to a capital instrument with identical terms other 
                      than the term and condition described under clause 
                      (i).
                    (I) Requirements on financial instruments issued by 
                a community development financial institution loan 
                fund.--Any equity equivalent capital issued to the 
                Treasury by a community development loan fund receiving 
                a capital investment under the Program shall provide 
                that the rate at which interest is payable shall be 2 
                percent per annum for 8 years. After 8 years, the rate 
                at which interest is payable shall be 9 percent.

[[Page 124 STAT. 2591]]

            (6) <<NOTE: Applicability.>>  Additional incentives to 
        repay.--The Secretary may, by regulation or guidance issued 
        under section 4104(9), establish repayment incentives in 
        addition to the incentive in paragraph (5)(E) that will apply to 
        new capital investments in a manner that the Secretary 
        determines to be consistent with the purposes of this subtitle.
            (7) Capital purchase program refinance.--
                    (A) <<NOTE: Regulations.>>  In general.--The 
                Secretary shall, in a manner that the Secretary 
                determines to be consistent with the purposes of this 
                subtitle, issue regulations and other guidance to permit 
                eligible institutions to refinance securities issued to 
                Treasury under the CDCI and the CPP for securities to be 
                issued under the Program.
                    (B) Prohibition on participation by non-paying cpp 
                participants.-- <<NOTE: Deadline.>> Subparagraph (A) 
                shall not apply to any eligible institution that has 
                missed more than one dividend payment due under the CPP. 
                For purposes of this subparagraph, a CPP dividend 
                payment that is submitted within 60 days of the due date 
                of such payment shall not be considered a missed 
                dividend payment.
            (8) <<NOTE: Requirements.>>  Outreach to minorities, women, 
        and veterans.--The Secretary shall require eligible institutions 
        receiving capital investments under the Program to provide 
        linguistically and culturally appropriate outreach and 
        advertising in the applicant pool describing the availability 
        and application process of receiving loans from the eligible 
        institution that are made possible by the Program through the 
        use of print, radio, television or electronic media outlets 
        which target organizations, trade associations, and individuals 
        that--
                    (A) represent or work within or are members of 
                minority communities;
                    (B) represent or work with or are women; and
                    (C) represent or work with or are veterans.
            (9) Additional terms.--The Secretary may, by regulation or 
        guidance issued under section 4104(9), make modifications that 
        will apply to new capital investments in order to manage risks 
        associated with the administration of the Fund in a manner 
        consistent with the purposes of this subtitle.
            (10) <<NOTE: Deadline.>>  Minimum underwriting standards.--
        The appropriate Federal banking agency for an eligible 
        institution that receives funds under the Program shall within 
        60 days issue guidance regarding prudent underwriting standards 
        that must be used for loans made by the eligible institution 
        using such funds.
SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY.

    The Secretary may take such actions as the Secretary deems necessary 
to carry out the authorities in this subtitle, including, without 
limitation, the following:
            (1) The Secretary may use the services of any agency or 
        instrumentality of the United States or component thereof on a 
        reimbursable basis, and any such agency or instrumentality or 
        component thereof is authorized to provide services as requested 
        by the Secretary using all authorities vested in or delegated to 
        that agency, instrumentality, or component.

[[Page 124 STAT. 2592]]

            (2) The Secretary may enter into contracts, including 
        contracts for services authorized by section 3109 of title 5, 
        United States Code.
            (3) The Secretary may designate any bank, savings 
        association, trust company, security broker or dealer, asset 
        manager, or investment adviser as a financial agent of the 
        Federal Government and such institution shall perform all such 
        reasonable duties related to this subtitle as financial agent of 
        the Federal Government as may be required. The Secretary shall 
        have authority to amend existing agreements with financial 
        agents, entered into during the 2-year period before the date of 
        enactment of this Act, to perform reasonable duties related to 
        this subtitle.
            (4) The Secretary may exercise any rights received in 
        connection with any preferred stock or other financial 
        instruments or assets purchased or acquired pursuant to the 
        authorities granted under this subtitle.
            (5) Subject to section 4103(b)(3), the Secretary may manage 
        any assets purchased under this subtitle, including revenues and 
        portfolio risks therefrom.
            (6) The Secretary may sell, dispose of, transfer, exchange 
        or enter into securities loans, repurchase transactions, or 
        other financial transactions in regard to, any preferred stock 
        or other financial instrument or asset purchased or acquired 
        under this subtitle, upon terms and conditions and at a price 
        determined by the Secretary.
            (7) The Secretary may manage or prohibit conflicts of 
        interest that may arise in connection with the administration 
        and execution of the authorities provided under this subtitle.
            (8) The Secretary may establish and use vehicles, subject to 
        supervision by the Secretary, to purchase, hold, and sell 
        preferred stock or other financial instruments and issue 
        obligations.
            (9) The Secretary may, in consultation with the 
        Administrator of the Small Business Administration, issue such 
        regulations and other guidance as may be necessary or 
        appropriate to define terms or carry out the authorities or 
        purposes of this subtitle.
SEC. 4105. CONSIDERATIONS.

    In exercising the authorities granted in this subtitle, the 
Secretary shall take into consideration--
            (1) increasing the availability of credit for small 
        businesses;
            (2) providing funding to minority-owned eligible 
        institutions and other eligible institutions that serve small 
        businesses that are minority-, veteran-, and women-owned and 
        that also serve low- and moderate-income, minority, and other 
        underserved or rural communities;
            (3) protecting and increasing American jobs;
            (4) increasing the opportunity for small business 
        development in areas with high unemployment rates that exceed 
        the national average;
            (5) ensuring that all eligible institutions may apply to 
        participate in the program established under this subtitle, 
        without discrimination based on geography;
            (6) providing transparency with respect to use of funds 
        provided under this subtitle;

[[Page 124 STAT. 2593]]

            (7) minimizing the cost to taxpayers of exercising the 
        authorities;
            (8) promoting and engaging in financial education to would-
        be borrowers; and
            (9) providing funding to eligible institutions that serve 
        small businesses directly affected by the discharge of oil 
        arising from the explosion on and sinking of the mobile offshore 
        drilling unit Deepwater Horizon and small businesses in 
        communities that have suffered negative economic effects as a 
        result of that discharge with particular consideration to States 
        along the coast of the Gulf of Mexico.
SEC. 4106. REPORTS.

    The Secretary shall provide to the appropriate committees of 
Congress--
            (1) within 7 days of the end of each month commencing with 
        the first month in which transactions are made under the 
        Program, a written report describing all of the transactions 
        made during the reporting period pursuant to the authorities 
        granted under this subtitle;
            (2) <<NOTE: Effective date.>>  after the end of March and 
        the end of September, commencing September 30, 2010, a written 
        report on all projected costs and liabilities, all operating 
        expenses, including compensation for financial agents, and all 
        transactions made by the Fund, which shall include participating 
        institutions and amounts each institution has received under the 
        Program; and
            (3) within 7 days of the end of each calendar quarter 
        commencing with the first calendar quarter in which transactions 
        are made under the Program, a written report detailing how 
        eligible institutions participating in the Program have used the 
        funds such institutions received under the Program.
SEC. 4107. OVERSIGHT AND AUDITS.

    (a) Inspector General Oversight.--The Inspector General of the 
Department of the Treasury shall conduct, supervise, and coordinate 
audits and investigations of the Program through the Office of Small 
Business Lending Fund Program Oversight established under subsection 
(b).
    (b) Office of Small Business Lending Fund Program Oversight.--
            (1) Establishment.--There is hereby established within the 
        Office of the Inspector General of the Department of the 
        Treasury a new office to be named the ``Office of Small Business 
        Lending Fund Program Oversight'' to provide oversight of the 
        Program.
            (2) <<NOTE: Appointment.>>  Leadership.--The Inspector 
        General shall appoint a Special Deputy Inspector General for 
        SBLF Program Oversight to lead the Office, with commensurate 
        staff, who shall report directly to the Inspector General and 
        who shall be responsible for the performance of all auditing and 
        investigative activities relating to the Program.
            (3) Reporting.--
                    (A) In general.--The Inspector General shall issue a 
                report no less than two times a year to the Congress and 
                the Secretary devoted to the oversight provided by the 
                Office, including any recommendations for improvements 
                to the Program.

[[Page 124 STAT. 2594]]

                    (B) Recommendations.--With respect to any 
                deficiencies identified in a report under subparagraph 
                (A), the Secretary shall either--
                          (i) take actions to address such deficiencies; 
                      or
                          (ii) <<NOTE: Certification.>>  certify to the 
                      appropriate committees of Congress that no action 
                      is necessary or appropriate.
            (4) Coordination.--The Inspector General, in maximizing the 
        effectiveness of the Office, shall work with other Offices of 
        Inspector General, as appropriate, to minimize duplication of 
        effort and ensure comprehensive oversight of the Program.
            (5) <<NOTE: Time period.>>  Termination.--The Office shall 
        terminate at the end of the 6-month period beginning on the date 
        on which all capital investments are repaid under the Program or 
        the date on which the Secretary determines that any remaining 
        capital investments will not be repaid.
            (6) Definitions.--For purposes of this subsection:
                    (A) Office.--The term ``Office'' means the Office of 
                Small Business Lending Fund Program Oversight 
                established under paragraph (1).
                    (B) Inspector general.--The term ``Inspector 
                General'' means the Inspector General of the Department 
                of the Treasury.

    (c) <<NOTE: Deadline. Reports.>>  GAO Audit.--The Comptroller 
General of the United States shall perform an annual audit of the 
Program and issue a report to the appropriate committees of Congress 
containing the results of such audit.

    (d) Required Certifications.--
            (1) Eligible institution certification.--Each eligible 
        institution that participates in the Program must certify that 
        such institution is in compliance with the requirements of 
        section 103.121 of title 31, Code of Federal Regulations, a 
        regulation that, at a minimum, requires financial institutions, 
        as that term is defined in 31 U.S.C. 5312(a)(2) and (c)(1)(A), 
        to implement reasonable procedures to verify the identity of any 
        person seeking to open an account, to the extent reasonable and 
        practicable, maintain records of the information used to verify 
        the person's identity, and determine whether the person appears 
        on any lists of known or suspected terrorists or terrorist 
        organizations provided to the financial institution by any 
        government agency.
            (2) Loan recipients.--With respect to funds received by an 
        eligible institution under the Program, any business receiving a 
        loan from the eligible institution using such funds after the 
        date of the enactment of this Act shall certify to such eligible 
        institution that the principals of such business have not been 
        convicted of a sex offense against a minor (as such terms are 
        defined in section 111 of the Sex Offender Registration and 
        Notification Act (42 U.S.C. 16911)).

    (e) Prohibition on Pornography.--None of the funds made available 
under this subtitle may be used to pay the salary of any individual 
engaged in activities related to the Program who has been officially 
disciplined for violations of subpart G of the Standards of Ethical 
Conduct for Employees of the Executive Branch for viewing, downloading, 
or exchanging pornography, including child pornography, on a Federal 
Government computer or while performing official Federal Government 
duties.

[[Page 124 STAT. 2595]]

SEC. 4108. CREDIT REFORM; FUNDING.

    (a) Credit Reform.--The cost of purchases of preferred stock and 
other financial instruments made as capital investments under this 
subtitle shall be determined as provided under the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.).
    (b) <<NOTE: Appropriation authorization.>>  Funds Made Available.--
There are hereby appropriated, out of funds in the Treasury not 
otherwise appropriated, such sums as may be necessary to pay the costs 
of $30,000,000,000 of capital investments in eligible institutions, 
including the costs of modifying such investments, and reasonable costs 
of administering the program of making, holding, managing, and selling 
the capital investments.
SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORITIES.

    (a) Termination of Investment Authority.--The authority to make 
capital investments in eligible institutions, including commitments to 
purchase preferred stock or other instruments, provided under this 
subtitle shall terminate 1 year after the date of enactment of this Act.
    (b) Continuation of Other Authorities.--The authorities of the 
Secretary under section 4104 shall not be limited by the termination 
date in subsection (a).
SEC. 4110. PRESERVATION OF AUTHORITY.

    Nothing in this subtitle may be construed to limit the authority of 
the Secretary under any other provision of law.
SEC. 4111. ASSURANCES.

    (a) Small Business Lending Fund Separate From TARP.--The Small 
Business Lending Fund Program is established as separate and distinct 
from the Troubled Asset Relief Program established by the Emergency 
Economic Stabilization Act of 2008. An institution shall not, by virtue 
of a capital investment under the Small Business Lending Fund Program, 
be considered a recipient of the Troubled Asset Relief Program.
    (b) Change in Law.--If, after a capital investment has been made in 
an eligible institution under the Program, there is a change in law that 
modifies the terms of the investment or program in a materially adverse 
respect for the eligible institution, the eligible institution may, 
after consultation with the appropriate Federal banking agency for the 
eligible institution, repay the investment without impediment.
SEC. 4112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, VETERAN-
                          OWNED, AND MINORITY-OWNED BUSINESSES.

    (a) Study.--The Secretary shall conduct a study of the impact of the 
Program on women-owned businesses, veteran-owned businesses, and 
minority-owned businesses.
    (b) Report.--Not later than one year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report on the results 
of the study conducted pursuant to subsection (a). To the extent 
possible, the Secretary shall disaggregate the results of such study by 
ethnic group and gender.
    (c) Information Provided to the Secretary.--Eligible institutions 
that participate in the Program shall provide the Secretary with such 
information as the Secretary may require to carry out the study required 
by this section.

[[Page 124 STAT. 2596]]

SEC. 4113. SENSE OF CONGRESS.

    It is the sense of Congress that the Federal Deposit Insurance 
Corporation and other bank regulators are sending mixed messages to 
banks regarding regulatory capital requirements and lending standards, 
which is a contributing cause of decreased small business lending and 
increased regulatory uncertainty at community banks.

                      Subtitle B--Other Provisions

 PART I-- <<NOTE: Export Promotion Act of 2010.>> SMALL BUSINESS EXPORT 
PROMOTION INITIATIVES
SEC. 4221. <<NOTE: 15 USC 271 note.>>  SHORT TITLE.

    This part may be cited as the ``Export Promotion Act of 2010''.
SEC. 4222. GLOBAL BUSINESS DEVELOPMENT AND PROMOTION ACTIVITIES OF 
                          THE DEPARTMENT OF COMMERCE.

    (a) Increase in Employees With Responsibility for Global Business 
Development and Promotion Activities.--
            (1) <<NOTE: Time period. Effective date.>>  In general.--
        During the 24-month period beginning on the date of the 
        enactment of this Act, the Secretary of Commerce shall increase 
        the number of full-time departmental employees whose primary 
        responsibilities involve promoting or facilitating participation 
        by United States businesses in the global marketplace and 
        facilitating the entry into, or expansion of, such participation 
        by United States businesses. In carrying out this subsection, 
        the Secretary shall ensure that--
                    (A) the cohort of such employees is increased by not 
                less than 80 persons; and
                    (B) a substantial portion of the increased cohort is 
                stationed outside the United States.
            (2) Enhanced focus on united states small- and medium-sized 
        businesses.--In carrying out this subsection, the Secretary 
        shall take such action as may be necessary to ensure that the 
        activities of the Department of Commerce relating to promoting 
        and facilitating participation by United States businesses in 
        the global marketplace include promoting and facilitating such 
        participation by small and medium-sized businesses in the United 
        States.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary for each of the fiscal years 
        2011 and 2012 such sums as may be necessary to carry out this 
        section.

    (b) Additional Funding for Global Business Development and Promotion 
Activities of the Department of Commerce.--
            (1) <<NOTE: Appropriation authorization.>>  In general.--
        There are authorized to be appropriated to the Secretary of 
        Commerce for the period beginning on the date of the enactment 
        of this Act and ending 18 months thereafter, $30,000,000 to 
        promote or facilitate participation by United States businesses 
        in the global marketplace and facilitating the entry into, or 
        expansion of, such participation by United States businesses.
            (2) Requirements.--In obligating and expending the funds 
        authorized to be appropriated by paragraph (1), the Secretary of 
        Commerce shall give preference to activities that--

[[Page 124 STAT. 2597]]

                    (A) assist small- and medium-sized businesses in the 
                United States; and
                    (B) the Secretary determines will create or sustain 
                the greatest number of jobs in the United States and 
                obtain the maximum return on investment.
SEC. 4223. ADDITIONAL FUNDING TO IMPROVE ACCESS TO GLOBAL MARKETS 
                          FOR RURAL BUSINESSES.

    (a) In General.--There are authorized to be appropriated to the 
Secretary of Commerce $5,000,000 for each of the fiscal years 2011 and 
2012 for improving access to the global marketplace for goods and 
services provided by rural businesses in the United States.
    (b) Requirements.--In obligating and expending the funds authorized 
to be appropriated by subsection (a), the Secretary of Commerce shall 
give preference to activities that--
            (1) assist small- and medium-sized businesses in the United 
        States; and
            (2) the Secretary determines will create or sustain the 
        greatest number of jobs in the United States and obtain the 
        maximum return on investment.
SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM.

    (a) <<NOTE: Time period.>>  In General.--There are authorized to be 
appropriated to the Secretary of Commerce $11,000,000 for the period 
beginning on the date of the enactment of this Act and ending 18 months 
thereafter, to expand ExporTech, a joint program of the Hollings 
Manufacturing Partnership Program and the Export Assistance Centers of 
the Department of Commerce.

    (b) Requirements.--In obligating and expending the funds authorized 
to be appropriated by subsection (a), the Secretary of Commerce shall 
give preference to activities that--
            (1) assist small- and medium-sized businesses in the United 
        States; and
            (2) the Secretary determines will create or sustain the 
        greatest number of jobs in the United States and obtain the 
        maximum return on investment.
SEC. 4225. ADDITIONAL FUNDING FOR THE MARKET DEVELOPMENT 
                          COOPERATOR PROGRAM OF THE DEPARTMENT OF 
                          COMMERCE.

    (a) <<NOTE: Time period.>>  In General.--There are authorized to be 
appropriated to the Secretary of Commerce for the period beginning on 
the date of the enactment of this Act and ending 18 months thereafter, 
$15,000,000 for the Manufacturing and Services unit of the International 
Trade Administration--
            (1) to establish public-private partnerships under the 
        Market Development Cooperator Program of the International Trade 
        Administration; and
            (2) to underwrite a portion of the start-up costs for new 
        projects carried out under that Program to strengthen the 
        competitiveness and market share of United States industry, not 
        to exceed, for each such project, the lesser of--
                    (A) \1/3\ of the total start-up costs for the 
                project; or
                    (B) $500,000.

    (b) Requirements.--In obligating and expending the funds authorized 
to be appropriated by subsection (a), the Secretary of Commerce shall 
give preference to activities that--

[[Page 124 STAT. 2598]]

            (1) assist small- and medium-sized businesses in the United 
        States; and
            (2) the Secretary determines will create or sustain the 
        greatest number of jobs in the United States and obtain the 
        maximum return on investment.
SEC. 4226. HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM; TECHNOLOGY 
                          INNOVATION PROGRAM.

    (a) Hollings Manufacturing Partnership Program.--Section 25(f) of 
the National Institute of Standards and Technology Act (15 U.S.C. 
278k(f)) is amended by adding at the end the following:
            ``(7) Global marketplace projects.--In making awards under 
        this subsection, the Director, in consultation with the 
        Manufacturing Extension Partnership Advisory Board and the 
        Secretary of Commerce, may--
                    ``(A) take into consideration whether an application 
                has significant potential for enhancing the 
                competitiveness of small and medium-sized United States 
                manufacturers in the global marketplace; and
                    ``(B) give a preference to applications for such 
                projects to the extent the Director deems appropriate, 
                taking into account the broader purposes of this 
                subsection.''.

    (b) <<NOTE: Grants. Contracts. 15 USC 278n note.>>  Technology 
Innovation Program.--In awarding grants, cooperative agreements, or 
contracts under section 28 of the National Institute of Standards and 
Technology Act (15 U.S.C. 278n), in addition to the award criteria set 
forth in subsection (c) of that section, the Director of the National 
Institute of Standards and Technology may take into consideration 
whether an application has significant potential for enhancing the 
competitiveness of small- and medium-sized businesses in the United 
States in the global marketplace. <<NOTE: Consultation.>>  The Director 
shall consult with the Technology Innovation Program Advisory Board and 
the Secretary of Commerce in implementing this subsection.
SEC. 4227. SENSE OF THE SENATE CONCERNING FEDERAL COLLABORATION 
                          WITH STATES ON EXPORT PROMOTION ISSUES.

    It is the sense of the Senate that the Secretary of Commerce should 
enhance Federal collaboration with the States on export promotion issues 
by--
            (1) providing the necessary training to the staff at State 
        international trade agencies to enable them to assist the United 
        States and Foreign Commercial Service (established by section 
        2301 of the Export Enhancement Act of 1988 (15 U.S.C. 4721)) in 
        providing counseling and other export services to businesses in 
        their communities; and
            (2) entering into agreements with State international trade 
        agencies for those agencies to deliver export promotion services 
        in their local communities in order to extend the outreach of 
        United States and Foreign Commercial Service programs.
SEC. 4228. <<NOTE: Columbia. Republic of Korea. Panama.>>  REPORT 
                          ON TARIFF AND NONTARIFF BARRIERS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of Commerce, in consultation with the United States Trade 
Representative and other appropriate entities, shall report to Congress 
on the tariff and nontariff barriers imposed by Colombia, the Republic 
of Korea, and Panama with respect

[[Page 124 STAT. 2599]]

to exports of articles from the United States, including articles 
exported or produced by small- and medium-sized businesses in the United 
States.

                         PART II--MEDICARE FRAUD

SEC. 4241. <<NOTE: 42 USC 1320a-7m.>>  USE OF PREDICTIVE MODELING 
                          AND OTHER ANALYTICS TECHNOLOGIES TO 
                          IDENTIFY AND PREVENT WASTE, FRAUD, AND 
                          ABUSE IN THE MEDICARE FEE-FOR-SERVICE 
                          PROGRAM.

    (a) Use in the Medicare Fee-for-service Program.--The Secretary 
shall use predictive modeling and other analytics technologies (in this 
section referred to as ``predictive analytics technologies'') to 
identify improper claims for reimbursement and to prevent the payment of 
such claims under the Medicare fee-for-service program.
    (b) Predictive Analytics Technologies Requirements.--The predictive 
analytics technologies used by the Secretary shall--
            (1) capture Medicare provider and Medicare beneficiary 
        activities across the Medicare fee-for-service program to 
        provide a comprehensive view across all providers, 
        beneficiaries, and geographies within such program in order to--
                    (A) identify and analyze Medicare provider networks, 
                provider billing patterns, and beneficiary utilization 
                patterns; and
                    (B) identify and detect any such patterns and 
                networks that represent a high risk of fraudulent 
                activity;
            (2) be integrated into the existing Medicare fee-for-service 
        program claims flow with minimal effort and maximum efficiency;
            (3) be able to--
                    (A) analyze large data sets for unusual or 
                suspicious patterns or anomalies or contain other 
                factors that are linked to the occurrence of waste, 
                fraud, or abuse;
                    (B) undertake such analysis before payment is made; 
                and
                    (C) prioritize such identified transactions for 
                additional review before payment is made in terms of the 
                likelihood of potential waste, fraud, and abuse to more 
                efficiently utilize investigative resources;
            (4) capture outcome information on adjudicated claims for 
        reimbursement to allow for refinement and enhancement of the 
        predictive analytics technologies on the basis of such outcome 
        information, including post-payment information about the 
        eventual status of a claim; and
            (5) prevent the payment of claims for reimbursement that 
        have been identified as potentially wasteful, fraudulent, or 
        abusive until such time as the claims have been verified as 
        valid.

    (c) Implementation Requirements.--
            (1) <<NOTE: Deadline.>>  Request for proposals.--Not later 
        than January 1, 2011, the Secretary shall issue a request for 
        proposals to carry out this section during the first year of 
        implementation. To the extent the Secretary determines 
        appropriate--
                    (A) the initial request for proposals may include 
                subsequent implementation years; and

[[Page 124 STAT. 2600]]

                    (B) the Secretary may issue additional requests for 
                proposals with respect to subsequent implementation 
                years.
            (2) <<NOTE: Contracts.>>  First implementation year.--The 
        initial request for proposals issued under paragraph (1) shall 
        require the contractors selected to commence using predictive 
        analytics technologies on July 1, 2011, in the 10 States 
        identified by the Secretary as having the highest risk of waste, 
        fraud, or abuse in the Medicare fee-for-service program.
            (3) <<NOTE: Applicability.>>  Second implementation year.--
        Based on the results of the report and recommendation required 
        under subsection (e)(1)(B), the Secretary shall expand the use 
        of predictive analytics technologies on October 1, 2012, to 
        apply to an additional 10 States identified by the Secretary as 
        having the highest risk of waste, fraud, or abuse in the 
        Medicare fee-for-service program, after the States identified 
        under paragraph (2).
            (4) Third implementation year.--Based on the results of the 
        report and recommendation required under subsection (e)(2), the 
        Secretary shall expand the use of predictive analytics 
        technologies on January 1, 2014, to apply to the Medicare fee-
        for-service program in any State not identified under paragraph 
        (2) or (3) and the commonwealths and territories.
            (5) Fourth implementation year.--Based on the results of the 
        report and recommendation required under subsection (e)(3), the 
        Secretary shall expand the use of predictive analytics 
        technologies, beginning April 1, 2015, to apply to Medicaid and 
        CHIP. To the extent the Secretary determines appropriate, such 
        expansion may be made on a phased-in basis.
            (6) <<NOTE: Certification. Time period.>>  Option for 
        refinement and evaluation.--If, with respect to the first, 
        second, or third implementation year, the Inspector General of 
        the Department of Health and Human Services certifies as part of 
        the report required under subsection (e) for that year no or 
        only nominal actual savings to the Medicare fee-for-service 
        program, the Secretary may impose a moratorium, not to exceed 12 
        months, on the expansion of the use of predictive analytics 
        technologies under this section for the succeeding year in order 
        to refine the use of predictive analytics technologies to 
        achieve more than nominal savings before further expansion. If a 
        moratorium is imposed in accordance with this paragraph, the 
        implementation dates applicable for the succeeding year or years 
        shall be adjusted to reflect the length of the moratorium 
        period.

    (d) Contractor Selection, Qualifications, and Data Access 
Requirements.--
            (1) Selection.--
                    (A) In general.--The Secretary shall select 
                contractors to carry out this section using competitive 
                procedures as provided for in the Federal Acquisition 
                Regulation.
                    (B) Number of contractors.--The Secretary shall 
                select at least 2 contractors to carry out this section 
                with respect to any year.
            (2) Qualifications.--
                    (A) In general.--The Secretary shall enter into a 
                contract under this section with an entity only if the 
                entity--
                          (i) has leadership and staff who--

[[Page 124 STAT. 2601]]

                                    (I) have the appropriate clinical 
                                knowledge of, and experience with, the 
                                payment rules and regulations under the 
                                Medicare fee-for-service program; and
                                    (II) have direct management 
                                experience and proficiency utilizing 
                                predictive analytics technologies 
                                necessary to carry out the requirements 
                                under subsection (b); or
                          (ii) has a contract, or will enter into a 
                      contract, with another entity that has leadership 
                      and staff meeting the criteria described in clause 
                      (i).
                    (B) Conflict of interest.--The Secretary may only 
                enter into a contract under this section with an entity 
                to the extent that the entity complies with such 
                conflict of interest standards as are generally 
                applicable to Federal acquisition and procurement.
            (3) Data access.--The Secretary shall provide entities with 
        a contract under this section with appropriate access to data 
        necessary for the entity to use predictive analytics 
        technologies in accordance with the contract.

    (e) <<NOTE: Public information.>>  Reporting Requirements.--
            (1) First implementation year report.--Not later than 3 
        months after the completion of the first implementation year 
        under this section, the Secretary shall submit to the 
        appropriate committees of Congress and make available to the 
        public a report that includes the following:
                    (A) A description of the implementation of the use 
                of predictive analytics technologies during the year.
                    (B) A certification of the Inspector General of the 
                Department of Health and Human Services that--
                          (i) specifies the actual and projected savings 
                      to the Medicare fee-for-service program as a 
                      result of the use of predictive analytics 
                      technologies, including estimates of the amounts 
                      of such savings with respect to both improper 
                      payments recovered and improper payments avoided;
                          (ii) the actual and projected savings to the 
                      Medicare fee-for-service program as a result of 
                      such use of predictive analytics technologies 
                      relative to the return on investment for the use 
                      of such technologies and in comparison to other 
                      strategies or technologies used to prevent and 
                      detect fraud, waste, and abuse in the Medicare 
                      fee-for-service program; and
                          (iii) includes recommendations regarding--
                                    (I) whether the Secretary should 
                                continue to use predictive analytics 
                                technologies;
                                    (II) whether the use of such 
                                technologies should be expanded in 
                                accordance with the requirements of 
                                subsection (c); and
                                    (III) any modifications or 
                                refinements that should be made to 
                                increase the amount of actual or 
                                projected savings or mitigate any 
                                adverse impact on Medicare beneficiaries 
                                or providers.
                    (C) An analysis of the extent to which the use of 
                predictive analytics technologies successfully prevented 
                and detected waste, fraud, or abuse in the Medicare fee-
                for-service program.

[[Page 124 STAT. 2602]]

                    (D) A review of whether the predictive analytics 
                technologies affected access to, or the quality of, 
                items and services furnished to Medicare beneficiaries.
                    (E) A review of what effect, if any, the use of 
                predictive analytics technologies had on Medicare 
                providers.
                    (F) Any other items determined appropriate by the 
                Secretary.
            (2) Second year implementation report.--Not later than 3 
        months after the completion of the second implementation year 
        under this section, the Secretary shall submit to the 
        appropriate committees of Congress and make available to the 
        public a report that includes, with respect to such year, the 
        items required under paragraph (1) as well as any other 
        additional items determined appropriate by the Secretary with 
        respect to the report for such year.
            (3) Third year implementation report.--Not later than 3 
        months after the completion of the third implementation year 
        under this section, the Secretary shall submit to the 
        appropriate committees of Congress, and make available to the 
        public, a report that includes with respect to such year, the 
        items required under paragraph (1), as well as any other 
        additional items determined appropriate by the Secretary with 
        respect to the report for such year, and the following:
                    (A) An analysis of the cost-effectiveness and 
                feasibility of expanding the use of predictive analytics 
                technologies to Medicaid and CHIP.
                    (B) An analysis of the effect, if any, the 
                application of predictive analytics technologies to 
                claims under Medicaid and CHIP would have on States and 
                the commonwealths and territories.
                    (C) Recommendations regarding the extent to which 
                technical assistance may be necessary to expand the 
                application of predictive analytics technologies to 
                claims under Medicaid and CHIP, and the type of any such 
                assistance.

    (f) Independent Evaluation and Report.--
            (1) <<NOTE: Grants. Contracts.>>  Evaluation.--Upon 
        completion of the first year in which predictive analytics 
        technologies are used with respect to claims under Medicaid and 
        CHIP, the Secretary shall, by grant, contract, or interagency 
        agreement, conduct an independent evaluation of the use of 
        predictive analytics technologies under the Medicare fee-for-
        service program and Medicaid and CHIP. The evaluation shall 
        include an analysis with respect to each such program of the 
        items required for the third year implementation report under 
        subsection (e)(3).
            (2) Report.--Not later than 18 months after the evaluation 
        required under paragraph (1) is initiated, the Secretary shall 
        submit a report to Congress on the evaluation that shall include 
        the results of the evaluation, the Secretary's response to such 
        results and, to the extent the Secretary determines appropriate, 
        recommendations for legislation or administrative actions.

    (g) Waiver Authority.--The Secretary may waive such provisions of 
titles XI, XVIII, XIX, and XXI of the Social Security Act, including 
applicable prompt payment requirements under titles XVIII and XIX of 
such Act, as the Secretary determines to be appropriate to carry out 
this section.
    (h) Funding.--

[[Page 124 STAT. 2603]]

            (1) Appropriation.--Out of any funds in the Treasury not 
        otherwise appropriated, there is appropriated to the Secretary 
        to carry out this section, $100,000,000 for the period beginning 
        January 1, 2011, to remain available until expended.
            (2) Reservations.--
                    (A) Independent evaluation.--The Secretary shall 
                reserve not more than 5 percent of the funds 
                appropriated under paragraph (1) for purposes of 
                conducting the independent evaluation required under 
                subsection (f).
                    (B) Application to medicaid and chip.--The Secretary 
                shall reserve such portion of the funds appropriated 
                under paragraph (1) as the Secretary determines 
                appropriate for purposes of providing assistance to 
                States for administrative expenses in the event of the 
                expansion of predictive analytics technologies to claims 
                under Medicaid and CHIP.

    (i) Definitions.--In this section:
            (1) Commonwealths and territories.--The term ``commonwealth 
        and territories'' includes the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, American Samoa, the Commonwealth of the 
        Northern Mariana Islands, and any other territory or possession 
        of the United States in which the Medicare fee-for-service 
        program, Medicaid, or CHIP operates.
            (2) CHIP.--The term ``CHIP'' means the Children's Health 
        Insurance Program established under title XXI of the Social 
        Security Act (42 U.S.C. 1397aa et seq.).
            (3) Medicaid.--The term ``Medicaid'' means the program to 
        provide grants to States for medical assistance programs 
        established under title XIX of the Social Security Act (42 
        U.S.C. 1396 et seq.).
            (4) Medicare beneficiary.--The term ``Medicare beneficiary'' 
        means an individual enrolled in the Medicare fee-for-service 
        program.
            (5) Medicare fee-for-service program.--The term ``Medicare 
        fee-for-service program'' means the original medicare fee-for-
        service program under parts A and B of title XVIII of the Social 
        Security Act (42 U.S.C. 1395 et seq.).
            (6) Medicare provider.--The term ``Medicare provider'' means 
        a provider of services (as defined in subsection (u) of section 
        1861 of the Social Security Act (42 U.S.C. 1395x)) and a 
        supplier (as defined in subsection (d) of such section).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services, acting through the Administrator 
        of the Centers for Medicare & Medicaid Services.
            (8) State.--The term ``State'' means each of the 50 States 
        and the District of Columbia.

                      TITLE V--BUDGETARY PROVISIONS

SEC. 5001. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying with 
the Statutory Pay-As-You-Go-Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the

[[Page 124 STAT. 2604]]

Congressional Record by the Chairman of the Senate Budget Committee, 
provided that such statement has been submitted prior to the vote on 
passage.

    Approved September 27, 2010.

LEGISLATIVE HISTORY--H.R. 5297:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 111-499 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 156 (2010):
            June 16, 17, considered and passed House.
            June 29, July 19, 21, 22, 27-29, Aug. 5, Sept. 14-16, 
                considered and passed Senate, amended.
            Sept. 23, House concurred in Senate amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010):
            Sept. 27, Presidential remarks.

                                  <all>
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