I 

117TH CONGRESS 

1ST SESSION H. R. 1669 

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

to the COVID–19 pandemic, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 9, 2021 

Mr. GREEN of Texas (for himself and Ms. WATERS) introduced the following 

bill; which was referred to the Committee on Financial Services 

A BILL 

To amend the State Small Business Credit Initiative Act 

of 2010 to respond to the COVID–19 pandemic, 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 ‘‘State Small Business 

5 Credit Initiative Renewal Act’’. 

6 SEC. 2. REAUTHORIZATION OF THE STATE SMALL BUSI7 NESS CREDIT INITIATIVE ACT OF 2010. 

8 (a) REAUTHORIZATION.— 


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1 (1) IN GENERAL.—The State Small Business 

2 Credit Initiative Act of 2010 (12 U.S.C. 5701 et 

3 seq.) is amended— 

4 (A) in section 3003— 

5 (i) in subsection (b)— 

6 (I) by amending paragraph (1) to 

7 read as follows: 

8 ‘‘(1) IN GENERAL.—Not later than 30 days 

9 after the date of enactment of subsection (d), the 

10 Secretary shall allocate Federal funds to partici11 pating States so that each State is eligible to receive 

12 an amount equal to what the State would receive 

13 under the 2021 allocation, as determined under 

14 paragraph (2).’’; 

15 (II) in paragraph (2)— 

16 (aa) by striking ‘‘2009’’ 

17 each place such term appears 

18 and inserting ‘‘2021’’; 

19 (bb) by striking ‘‘2008’’ 

20 each place such term appears 

21 and inserting ‘‘2020’’; 

22 (cc) in subparagraph (A), by 

23 striking ‘‘The Secretary’’ and in24 serting ‘‘With respect to States 


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1 other than Tribal governments, 

2 the Secretary’’; 

3 (dd) in subparagraph (C)(i), 

4 by striking ‘‘2007’’ and inserting 

5 ‘‘2019’’; and 

6 (ee) by adding at the end 

7 the following: 

8 ‘‘(C) SEPARATE ALLOCATION FOR TRIBAL

9 GOVERNMENTS.— 

10 ‘‘(i) IN GENERAL.—With respect to 

11 States that are Tribal governments, the 

12 Secretary shall determine the 2021 alloca13 tion by allocating $500,000,000 among the 

14 Tribal governments in the proportion the 

15 Secretary determines appropriate, includ16 ing with consideration to available employ17 ment and economic data regarding each 

18 such Tribal government. 

19 ‘‘(ii) NOTICE OF INTENT; TIMING OF

20 ALLOCATION.—With respect to allocations 

21 to States that are Tribal governments, the 

22 Secretary may— 

23 ‘‘(I) require Tribal governments 

24 that wish to participate in the Pro25 gram to file a notice of intent with the 


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1 Secretary not later than 30 days after 

2 the date of enactment of subsection 

3 (d); and 

4 ‘‘(II) notwithstanding paragraph 

5 (1), allocate Federal funds to partici6 pating Tribal governments not later 

7 than 60 days after the date of enact8 ment of subsection (d). 

9 ‘‘(D) EMPLOYMENT DATA.—If the Sec10 retary determines that employment data with 

11 respect to a State is unavailable from the Bu12 reau of Labor Statistics of the Department of 

13 Labor, the Secretary shall consider such other 

14 economic and employment data that is other15 wise available for purposes of determining the 

16 employment data of such State.’’; and 

17 (III) by striking paragraph (3); 

18 and 

19 (ii) in subsection (c)— 

20 (I) in paragraph (1)(A)(iii), by 

21 inserting before the period the fol22 lowing: ‘‘that have delivered loans or 

23 investments to eligible businesses’’; 

24 and 


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1 (II) by amending paragraph (4) 

2 to read as follows: 

3 ‘‘(4) TERMINATION OF AVAILABILITY OF

4 AMOUNTS NOT TRANSFERRED.— 

5 ‘‘(A) IN GENERAL.—Any portion of a par6 ticipating State’s allocated amount that has not 

7 been transferred to the State under this section 

8 may be deemed by the Secretary to be no longer 

9 allocated to the State and no longer available to 

10 the State and shall be returned to the general 

11 fund of the Treasury or reallocated as described 

12 under subparagraph (B), if— 

‘‘(i) the second 1 13 ⁄3 of a State’s allo14 cated amount has not been transferred to 

15 the State before the end of the end of the 

16 3-year period beginning on the date that 

17 the Secretary approves the State for par18 ticipation; or 

‘‘(ii) the last 1 19 ⁄3 of a State’s allocated 

20 amount has not been transferred to the 

21 State before the end of the end of the 5- 

22 year period beginning on the date that the 

23 Secretary approves the State for participa24 tion. 


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1 ‘‘(B) REALLOCATION.—Any amount 

2 deemed by the Secretary to be no longer allo3 cated to a State and no longer available to such 

4 State under subparagraph (A) may be reallo5 cated by the Secretary to other participating 

6 States. In making such a reallocation, the Sec7 retary shall not take into account the minimum 

8 allocation requirements under subsection 

9 (b)(2)(B) or the specific allocation for Tribal 

10 governments described under subsection 

11 (b)(2)(C).’’; 

12 (B) in section 3004(d), by striking ‘‘date 

13 of enactment of this Act’’ each place it appears 

14 and inserting ‘‘date of the enactment of section 

15 3003(d)’’; 

16 (C) in section 3005(b), by striking ‘‘date of 

17 enactment of this Act’’ each place it appears 

18 and inserting ‘‘date of the enactment of section 

19 3003(d)’’; 

20 (D) in section 3006(b)(4), by striking 

21 ‘‘date of enactment of this Act’’ and inserting 

22 ‘‘date of the enactment of section 3003(d)’’; 

23 (E) in section 3007(b), by striking ‘‘March 

24 31, 2011’’ and inserting ‘‘March 31, 2022’’; 


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1 (F) in section 3009, by striking ‘‘date of 

2 enactment of this Act’’ each place it appears 

3 and inserting ‘‘date of the enactment of section 

4 3003(d)’’; and 

5 (G) in section 3011(b), by striking ‘‘date 

6 of the enactment of this Act’’ each place it ap7 pears and inserting ‘‘date of the enactment of 

8 section 3003(d)’’. 

9 (2) APPROPRIATION.— 

10 (A) IN GENERAL.—There is hereby appro11 priated to the Secretary of the Treasury, out of 

12 funds in the Treasury not otherwise appro13 priated, $10,000,000,000 to carry out the State 

14 Small Business Credit Initiative established 

15 under the State Small Business Credit Initia16 tive Act of 2010, including to pay reasonable 

17 costs of administering such Initiative. 

18 (B) RESCISSION.—With respect to 

19 amounts appropriated under subparagraph 

20 (A)— 

21 (i) the Secretary of the Treasury shall 

22 complete all disbursements and remaining 

23 obligations before September 30, 2030; 

24 and 


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1 (ii) any amounts that remain unex2 pended (whether obligated or unobligated) 

3 on September 30, 2030, shall be rescinded 

4 and deposited into the general fund of the 

5 Treasury. 

6 (b) ADDITIONAL ALLOCATIONS TO SUPPORT BUSI7 NESS ENTERPRISES OWNED AND CONTROLLED BY SO8 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVID9 UALS.—Section 3003 of the State Small Business Credit 

10 Initiative Act of 2010 (12 U.S.C. 5702) is amended by 

11 adding at the end the following: 

12 ‘‘(d) ADDITIONAL ALLOCATIONS TO SUPPORT BUSI13 NESS ENTERPRISES OWNED AND CONTROLLED BY SO14 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVID15 UALS.—Of the amounts appropriated to carry out the Pro16 gram, the Secretary shall— 

17 ‘‘(1) ensure that $1,500,000,000 from funds al18 located under this section shall be expended for busi19 ness enterprises owned and controlled by socially 

20 and economically disadvantaged individuals; and 

21 ‘‘(2) allocate such amounts to States based on 

22 the needs of business enterprises owned and con23 trolled by socially and economically disadvantaged 

24 individuals, as determined by the Secretary, in each 


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1 State, and not subject to the allocation formula de2 scribed under subsection (b). 

3 ‘‘(e) SUPPORTING BUSINESS ENTERPRISES OWNED

4 AND CONTROLLED BY SOCIALLY AND ECONOMICALLY

5 DISADVANTAGED INDIVIDUALS.—In allocating funds to 

6 participating States under this section, the Secretary shall 

7 establish a minimum amount of support that a State shall 

8 provide to business enterprises owned and controlled by 

9 socially and economically disadvantaged individuals. 

10 ‘‘(f) INCENTIVE ALLOCATIONS TO SUPPORT BUSI11 NESS ENTERPRISES OWNED AND CONTROLLED BY SO12 CIALLY AND ECONOMICALLY DISADVANTAGED INDIVID13 UALS.—Of the amounts appropriated to carry out the Pro14 gram, the Secretary shall set aside $1,000,000,000 for an 

15 incentive program under which the Secretary shall increase the second 1⁄3 and last 1 16 ⁄3 allocations for States that 

17 demonstrate robust support, as determined by the Sec18 retary, for business concerns owned and controlled by so19 cially and economically disadvantaged individuals in the 

20 deployment of prior allocation amounts.’’. 

21 (c) CDFI AND MDI PARTICIPATION PLAN.—Section 

22 3004 of the State Small Business Credit Initiative Act of 

23 2010 (12 U.S.C. 5703) is amended by adding at the end 

24 the following: 


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1 ‘‘(e) CDFI AND MDI PARTICIPATION PLAN.—The 

2 Secretary may not approve a State to be a participating 

3 State unless the State has provided the Secretary with a 

4 plan detailing how minority depository institutions and 

5 community development financial institutions will be en6 couraged to participate in State programs.’’. 

7 (d) PANDEMIC RESPONSE PLAN.—Section 3004 of 

8 the State Small Business Credit Initiative Act of 2010 (12 

9 U.S.C. 5703), as amended by subsection (c), is further 

10 amended by adding at the end the following: 

11 ‘‘(f) PANDEMIC RESPONSE PLAN.—The Secretary 

12 may not approve a State to be a participating State unless 

13 the State has provided the Secretary with a description 

14 of how the State will expeditiously utilize funds to support 

15 small businesses, including business enterprises owned and 

16 controlled by socially and economically disadvantaged indi17 viduals, in responding to and recovering from the eco18 nomic effects of the COVID–19 pandemic.’’. 

19 (e) TECHNICAL ASSISTANCE.— 

20 (1) STATE TECHNICAL ASSISTANCE PLAN.— 

21 Section 3004 of the State Small Business Credit Ini22 tiative Act of 2010 (12 U.S.C. 5703), as amended 

23 by subsection (d), is further amended by adding at 

24 the end the following: 

25 ‘‘(g) STATE TECHNICAL ASSISTANCE PLAN.— 


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1 ‘‘(1) IN GENERAL.—The Secretary may not ap2 prove a State to be a participating State unless the 

3 State has provided the Secretary with a technical as4 sistance plan under which the State will use a por5 tion of the funds received under the Program to pro6 vide legal, accounting, and financial advisory services 

7 to very small businesses and business enterprises 

8 owned and controlled by socially and economically 

9 disadvantaged individuals applying for— 

10 ‘‘(A) State programs under the Program; 

11 and 

12 ‘‘(B) other State or Federal programs that 

13 support small businesses. 

14 ‘‘(2) CONTRACTING.—Services described under 

15 paragraph (1) may be contracted with legal, ac16 counting, and financial advisory firms, with priority 

17 given to business enterprises owned and controlled 

18 by socially and economically disadvantaged individ19 uals.’’. 

20 (2) FUNDING.—Section 3009 of the State 

21 Small Business Credit Initiative Act of 2010 (12 

22 U.S.C. 5708) is amended by adding at the end the 

23 following: 


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1 ‘‘(e) TECHNICAL ASSISTANCE.—Of the amounts ap2 propriated to carry out the Program, $500,000,000 may 

3 be used by the Secretary to— 

4 ‘‘(1) provide funds to States to carry out tech5 nical assistance plans described under section 

6 3004(g); 

7 ‘‘(2) transfer amounts to the Minority Business 

8 Development Agency, so that the Agency may use 

9 such amounts in a manner the Agency determines 

10 appropriate, including through contracting with 

11 third parties, to provide technical assistance to busi12 ness enterprises owned and controlled by socially 

13 and economically disadvantaged individuals applying 

14 to— 

15 ‘‘(A) State programs under the Program; 

16 and 

17 ‘‘(B) other State or Federal programs that 

18 support small businesses; and 

19 ‘‘(3) contract with legal, accounting, and finan20 cial advisory firms (with priority given to business 

21 enterprises owned and controlled by socially and eco22 nomically disadvantaged individuals), to provide 

23 technical assistance to business enterprises owned 

24 and controlled by socially and economically disadvan25 taged individuals applying to— 


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1 ‘‘(A) State programs under the Program; 

2 and 

3 ‘‘(B) other State or Federal programs that 

4 support small businesses.’’. 

5 (f) MULTI-STATE PARTICIPATION PROGRAM.—Sec6 tion 3009 of the State Small Business Credit Initiative 

7 Act of 2010 (12 U.S.C. 5708), as amended by subsection 

8 (d)(2), is further amended by adding at the end the fol9 lowing: 

10 ‘‘(f) MULTI-STATE PARTICIPATION PROGRAM.—The 

11 Secretary may establish a multi-State participation pro12 gram under which— 

13 ‘‘(1) the Secretary determines which State pro14 grams are similar to each other, with respect to eli15 gibility criteria and such other criteria as the Sec16 retary determines appropriate; and 

17 ‘‘(2) a State may elect to automatically deem a 

18 person eligible for a State program if the person is 

19 already participating in another State’s State pro20 gram that the Secretary has determined is similar 

21 under paragraph (1).’’. 

22 (g) APPLICATION OF THE MILITARY LENDING

23 ACT.—Section 3004 of the State Small Business Credit 

24 Initiative Act of 2010 (15 U.S.C. 5702), as amended by 


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1 subsection (d)(1), is further amended by adding at the end 

2 the following: 

3 ‘‘(h) APPLICATION OF THE MILITARY LENDING

4 ACT.—The Secretary may not approve a State to be a par5 ticipating State unless the State has agreed that no lend6 ing activity supported by amounts received by the State 

7 under the Program would result in interest rates being 

8 charged at an annualized percentage rate above 36 per9 cent, as determined in accordance with section 987(b) of 

10 title 10, United States Code (commonly known as the 

11 ‘Military Lending Act’).’’. 

12 (h) INCLUSION OF TRIBAL GOVERNMENTS.—Section 

13 3002(10) of the State Small Business Credit Initiative Act 

14 of 2010 (12 U.S.C. 5701(10)) is amended— 

15 (1) in subparagraph (C), by striking ‘‘and’’ at 

16 the end; 

17 (2) in subparagraph (D), by striking the period 

18 at the end and inserting ‘‘; and’’; and 

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

20 ‘‘(E) a Tribal government.’’. 

21 (i) DEFINITIONS.—Section 3002 of the State Small 

22 Business Credit Initiative Act of 2010 (12 U.S.C. 5701) 

23 is amended by adding at the end the following: 

24 ‘‘(15) BUSINESS ENTERPRISE OWNED AND CON25 TROLLED BY SOCIALLY AND ECONOMICALLY DISVerDate Sep 11 2014 22:50 Apr 30, 2021 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1669.IH H1669

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1 ADVANTAGED INDIVIDUALS.—The term ‘business en2 terprise owned and controlled by socially and eco3 nomically disadvantaged individuals’ means a busi4 ness that— 

5 ‘‘(A) if privately owned, 51 percent is 

6 owned by one or more socially and economically 

7 disadvantaged individuals; 

8 ‘‘(B) if publicly owned, 51 percent of the 

9 stock is owned by one or more socially and eco10 nomically disadvantaged individuals; and 

11 ‘‘(C) in the case of a mutual institution, a 

12 majority of the Board of Directors, account 

13 holders, and the community which the institu14 tion services is predominantly comprised of so15 cially and economically disadvantaged individ16 uals. 

17 ‘‘(16) COMMUNITY DEVELOPMENT FINANCIAL

18 INSTITUTION.—The term ‘community development 

19 financial institution’ has the meaning given that 

20 term under section 103 of the Riegle Community 

21 Development and Regulatory Improvement Act of 

22 1994. 

23 ‘‘(17) MINORITY DEPOSITORY INSTITUTION.— 

24 The term ‘minority depository institution’ has the 

25 meaning given that term under section 308(b) of the 


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1 Financial Institutions Reform, Recovery, and En2 forcement Act of 1989. 

3 ‘‘(18) SOCIALLY AND ECONOMICALLY DIS4 ADVANTAGED INDIVIDUAL.—The term ‘socially and 

5 economically disadvantaged individual’ means an in6 dividual who is a socially disadvantaged individual or 

7 an economically disadvantaged individual, as such 

8 terms are defined, respectively, under section 8 of 

9 the Small Business Act (15 U.S.C. 637) and the 

10 regulations thereunder. 

11 ‘‘(19) TRIBAL GOVERNMENT.—The term ‘Tribal 

12 government’ means a government of an Indian Tribe 

13 listed on the list of recognized Tribes published by 

14 the Secretary of the Interior under section 104 of 

15 the Federally Recognized Indian Tribe List Act of 

16 1994 (25 U.S.C. 5131).’’. 

17 (j) RULE OF APPLICATION.—The amendments made 

18 by this section shall apply with respect to funds appro19 priated under this section and funds appropriated on and 

20 after the date of enactment of this section. 

Æ 


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