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[House Report 111-508]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-508

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 PROVIDING FOR FURTHER CONSIDERATION OF THE BILL (H.R. 5297) 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, AND FOR 
                             OTHER PURPOSES

                                _______
                                

    June 16, 2010.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

  Mr. Perlmutter, from the Committee on Rules, submitted the following

                              R E P O R T

                      [To accompany H. Res. 1448]

    The Committee on Rules, having had under consideration 
House Resolution 1448, by a non-record vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for further consideration of H.R. 
5297, the Small Business Lending Fund Act of 2010 under a 
structured rule. The resolution provides that pursuant to House 
Resolution 1436, it shall be in order to consider the 
amendments printed in this report as though they were the last 
two amendments printed in part C of House Report 111-506.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Schrader (OR): Would authorize the establishment of the 
Small Business Borrower Assistance Program which will create a 
fund for 7(a) loan borrowers to use if they need help paying 
the principal or interest payments of their small business 
loans. (10 minutes)
    2. Miller, Brad (NC), Baca (CA): Would expand the 
definition of ``small business lending'' used in the bill to 
include loans made to small business concerns for the purpose 
of acquiring, constructing, or improving industrial, 
commercial, residential, or farm buildings. (10 minutes)

                 TEXT OF AMENDMENTS TO BE MADE IN ORDER

   1. An Amendment To Be Offered by Representative Schrader, or His 
                   Designee, Debatable for 10 Minutes

  Add at the end the following new title:

          TITLE __--SMALL BUSINESS BORROWER ASSISTANCE PROGRAM

SEC. __1. SHORT TITLE.

  This title may be cited as the ``Small Business Assistance 
Fund Act of 2010''.

SEC. __2. SMALL BUSINESS BORROWER ASSISTANCE PROGRAM.

  (a) In General.--The Administrator shall carry out a program 
to be called the ``Small Business Borrower Assistance Program'' 
to provide payments of principal and interest on qualifying 
small business loans.
  (b) Automatic Enrollment; Commitment of Funds.--
          (1) In general.--To the extent funds are available 
        under the Program, each borrower that receives a 
        qualifying small business loan after the date on which 
        the Administrator issues regulations pursuant to 
        subsection (e) shall be automatically enrolled in the 
        Program, unless the borrower requests otherwise, and 
        the Administrator shall commit an amount to each 
        borrower equal to 6 percent of the principal disbursed 
        amount of such borrower's qualifying small business 
        loan.
          (2) One year window for participating in program.--
        Notwithstanding paragraph (1), a borrower may only be 
        enrolled in the Program if the borrower is approved for 
        a qualifying small business loan before the end of the 
        1-year period following the date on which the 
        Administrator issues final regulations pursuant to 
        subsection (e).
          (3) Termination of participation in certain 
        circumstances.--In any instance in which the 
        Administrator determines that a borrower participating 
        in the Program has committed fraud or made a material 
        misrepresentation related to such participation, the 
        Administrator may terminate such borrower's 
        participation in the Program and ban such borrower from 
        any future participation in the Program.
  (c) Disbursement of Funds.--
          (1) In general.--A borrower enrolled in the Program 
        may submit a request for the payment of committed funds 
        by a method to be developed by the Administrator.
          (2) Multiple disbursements permitted.--A borrower 
        enrolled in the Program may request multiple payments 
        under paragraph (1), as long as the aggregate amount of 
        such payments does not exceed the amount committed to 
        such borrower under subsection (b).
  (d) Terms.--
          (1) Payments only to lender or servicer.--Payments 
        made by the Administrator under the Program shall only 
        be made to the lender or servicer of a qualifying small 
        business loan to be applied against outstanding 
        principal or interest, and may not be made to the 
        borrower.
          (2) Program participation only permitted during first 
        2 years.--
                  (A) In general.--Payments made by the 
                Administrator under the Program may only be 
                made with respect to a payment of interest or 
                principal due on a qualifying small business 
                loan within the 2-year period following the 
                date on which such loan is disbursed.
                  (B) Unexpended committed funds.--
                          (i) In general.--With respect to any 
                        funds committed to a borrower enrolled 
                        in the Program that remain unexpended 
                        at the end of the 2-year period 
                        described under subparagraph (A), such 
                        funds shall be paid to the lender or 
                        servicer of the borrower's loan and 
                        applied to the principal of such loan.
                          (ii) Exception.--In any case in which 
                        the amount of committed funds that 
                        remain unexpended is greater than the 
                        remaining principal of a borrower's 
                        loan, the amount of any excess shall be 
                        returned to the Treasury.
  (e) Rulemaking.--Not later than 180 days after the date of 
the enactment of this section, the Administrator shall issue 
regulations necessary to carry out this section.
  (f) Contracting With Agents.--The Administrator may contract 
with one or more entities as necessary to carry out the 
provisions of the Program. The Secretary of the Treasury is 
authorized to designate financial institutions, including any 
bank, savings association, or trust company, as financial 
agents of the Federal government to carry out the authorities 
of this section, and such institutions shall perform all such 
reasonable duties related to the Program as financial agents of 
the Federal government as the Secretary may require. In 
engaging any such third parties to carry out the Program, the 
Administrator or the Secretary shall seek to involve small 
businesses in the provision of the core direct services 
required under the engagement.
  (g) Definitions.--For purposes of this section:
          (1) Administrator.--The term ``Administrator'' means 
        the Administrator of the Small Business Administration.
          (2) Program.--The term ``Program'' means the Small 
        Business Borrower Assistance Program established under 
        subsection (a).
          (3) Qualifying small business loan.--The term 
        ``qualifying small business loan'' means any loan, up 
        to $300,000, made to a small business concern and 
        guaranteed under section 7(a) of the Small Business Act 
        (15 U.S.C. 636(a)), other than a loan made pursuant to 
        section 7(a)(31) of such Act, a revolving credit line, 
        or any other revolving loan.
          (4) Small business concern.--The term ``small 
        business concern'' has the meaning given such term 
        under section 3 of the Small Business Act (15 U.S.C. 
        632).
  (h) Authorization of Appropriations.--There is hereby 
authorized to be appropriated to the Administrator $300,000,000 
to carry out this section.
                              ----------                              

    2. An Amendment To Be Offered by Representative Miller of North 
          Carolina, or His Designee, Debatable for 10 Minutes

  Page 6, after line 9, insert the following new clause:
                          (v) Construction, land development, 
                        and other land loans.--
                                  (I) In general.--Loans 
                                secured by real estate--
                                          (aa) that are made to 
                                        finance--
                                                  (AA) land 
                                                development 
                                                that is 
                                                preparatory to 
                                                erecting new 
                                                structures, 
                                                including 
                                                improving land, 
                                                laying sewers, 
                                                and laying 
                                                water pipes; or
                                                  (BB) the on-
                                                site 
                                                construction of 
                                                industrial, 
                                                commercial, 
                                                residential, or 
                                                farm buildings;
                                          (bb) that is vacant 
                                        land, except land known 
                                        to be used or usable 
                                        for agricultural 
                                        purposes, such as crop 
                                        and livestock 
                                        production;
                                          (cc) the proceeds of 
                                        which are to be used to 
                                        acquire and improve 
                                        developed or 
                                        undeveloped property; 
                                        or
                                          (dd) that are made 
                                        under title I or title 
                                        X of the National 
                                        Housing Act.
                                  (II) Construction industry 
                                requirement.--Subclause (I) 
                                shall only apply to loans that 
                                are extended to small business 
                                concerns in the construction 
                                industry, as such term is 
                                defined by the Secretary in 
                                consultation with the 
                                Administrator of the Small 
                                Business Administration.
                                  (III) Construction defined.--
                                For purposes of this clause, 
                                the term ``construction'' 
                                includes the construction of 
                                new structures, additions or 
                                alterations to existing 
                                structures, and the demolition 
                                of existing structures to make 
                                way for new structures.

                                  
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