II 

112TH CONGRESS 

1ST SESSION S. 1828 

To increase small business lending, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 8, 2011 

Mr. KERRY introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

A BILL 

To increase small business lending, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Increasing Small Busi5 ness Lending Act of 2011’’. 

6 SEC. 2. SMALL BUSINESS LENDING MARKET STABILIZA7 TION. 

8 (a) FEE REDUCTIONS AND LOAN GUARANTEES.— 

9 (1) FEE REDUCTIONS.—Section 501 of the 

10 American Recovery and Reinvestment Act of 2009 

11 (Public Law 111–5; 123 Stat. 151) is amended by 

12 striking ‘‘March 4, 2011’’ each place it appears and 


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1 inserting ‘‘the date that is 1 year after the date of 

2 enactment of the Increasing Small Business Lending 

3 Act of 2011’’. 

4 (2) LOAN GUARANTEES.—Section 502(f) of di5 vision A of the American Recovery and Reinvest6 ment Act of 2009 (Public Law 111–5; 123 Stat. 

7 153) is amended by striking ‘‘March 4, 2011’’ and 

8 inserting ‘‘the date that is 1 year after the date of 

9 enactment of the Increasing Small Business Lending 

10 Act of 2011’’. 

11 (3) AUTHORIZATION OF APPROPRIATIONS.— 

12 There are authorized to be appropriated to the Ad13 ministrator of the Small Business Administration 

14 such sums as may be necessary to carry out sections 

15 501 and 502 of the American Recovery and Rein16 vestment Act of 2009 (Public Law 111–5; 123 Stat. 

17 151), as amended by this subsection. 

18 (b) MAIN STREET INCENTIVES.— 

19 (1) IN GENERAL.—Section 502 of the Small 

20 Business Investment Act of 1958 (15 U.S.C. 696) is 

21 amended— 

22 (A) by striking paragraphs (4) and (5) and 

23 inserting the following: 

24 ‘‘(4) LIMITATION ON LEASING.—If the use of a 

25 loan under this section includes the acquisition of a 


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•S 1828 IS

1 facility or the construction of a new facility, the 

2 small business concern assisted— 

3 ‘‘(A) shall permanently occupy and use not 

4 less than a total of 50 percent of the space in 

5 the facility; and 

6 ‘‘(B) may, on a temporary or permanent 

7 basis, lease to others not more than 50 percent 

8 of the space in the facility.’’; and 

9 (B) by redesignating paragraphs (6) and 

10 (7) as paragraphs (5) and (6), respectively. 

11 (2) POLICY FOR 7(a) LOANS.—Section 7(a)(28) 

12 of the Small Business Act (15 U.S.C. 636(a)(28)) is 

13 amended to read as follows: 

14 ‘‘(28) LIMITATION ON LEASING.—If the use of 

15 a loan under this subsection includes the acquisition 

16 of a facility or the construction of a new facility, the 

17 small business concern assisted— 

18 ‘‘(A) shall permanently occupy and use not 

19 less than a total of 50 percent of the space in 

20 the facility; and 

21 ‘‘(B) may, on a temporary or permanent 

22 basis, lease to others not more than 50 percent 

23 of the space in the facility.’’. 

24 (c) LOAN POOLING.—Section 5(g)(1) of the Small 

25 Business Act (15 U.S.C. 634(g)(1)) is amended— 


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1 (1) by inserting ‘‘(A)’’ before ‘‘The Administra2 tion’’; 

3 (2) by striking the colon and all that follows 

4 and inserting a period; and 

5 (3) by adding at the end the following: 

6 ‘‘(B) A trust certificate issued under subparagraph 

7 (A) shall be based on, and backed by, a trust or pool ap8 proved by the Administrator and composed solely of the 

9 guaranteed portion of such loans. 

10 ‘‘(C) The interest rate on a trust certificate issued 

11 under subparagraph (A) shall be either— 

12 ‘‘(i) the lowest interest rate on any individual 

13 loan in the pool; or 

14 ‘‘(ii) the weighted average interest rate of all 

15 loans in the pool, subject to such limited variations 

16 in loan characteristics as the Administrator deter17 mines appropriate to enhance marketability of the 

18 pool certificates.’’. 

19 (d) ALTERNATIVE VARIABLE INTEREST RATE.— 

20 (1) IN GENERAL.—Section 7(a)(4)(A) of the 

21 Small Business Act (15 U.S.C. 636(a)(4)(A)) is 

22 amended by striking ‘‘prescribed by the Administra23 tion,’’ and inserting: ‘‘prescribed by the Administra24 tion, including, on variable rate loans, a nationally 

25 recognized prime rate of interest and at least 1 


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1 other index as an alternative thereto at the option 

2 of the participating lender,’’. 

3 (2) APPLICABILITY.—Not later than 180 days 

4 after the date of enactment of this Act, the Adminis5 trator of the Small Business Administration shall se6 lect not less than 1 alternative index under section 

7 7(a)(4)(A) of the Small Business Act, as amended 

8 by paragraph (1) of this subsection, and make such 

9 index available for use by participating lenders. 

Æ 


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