89–008 

111TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 111–508 

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) 


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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 ll—SMALL BUSINESS 

BORROWER ASSISTANCE PROGRAM 

SEC. ll1. SHORT TITLE. 

This title may be cited as the ‘‘Small Business Assistance Fund 

Act of 2010’’. 

SEC. ll2. 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 


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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 author- ized to be appropriated to the Administrator $300,000,000 to carry 

out this section. 


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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. 

Æ 


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