II 

111TH CONGRESS 

1ST SESSION S. 1817 

To temporarily raise the limits on certain loans under the Small Business 

Act and the Small Business Investment Act of 1958, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 20, 2009 

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

to the Committee on Small Business and Entrepreneurship 

A BILL 

To temporarily raise the limits on certain loans under the 

Small Business Act and the Small Business Investment 

Act of 1958, 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 ‘‘Small Business Emer5 gency Loan Relief Act of 2009’’. 

6 SEC. 2. TEMPORARY INCREASE IN MAXIMUM LOAN 

7 AMOUNTS AND USE OF REFINANCES. 

8 (a) IN GENERAL.— 

9 (1) MAXIMUM AMOUNTS FOR 7(a) LOANS.—Sec10 tion 7(a)(3)(A) of the Small Business Act (15 


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1 U.S.C. 636(a)(3)(A)) is amended by striking 

2 ‘‘$1,500,000 (or if the gross loan amount would ex3 ceed $2,000,000’’ and inserting ‘‘$4,500,000 (or if 

4 the gross loan amount would exceed $5,000,000’’. 

5 (2) MAXIMUM LOAN AMOUNTS UNDER 504 PRO6 GRAM.—Section 502(2)(A) of the Small Business In7 vestment Act of 1958 (15 U.S.C. 696(2)(A)) is 

8 amended— 

9 (A) in clause (i), by striking ‘‘$1,500,000’’ 

10 and inserting ‘‘$4,000,000’’; 

11 (B) in clause (ii), by striking ‘‘$2,000,000’’ 

12 and inserting ‘‘$5,000,000’’; 

13 (C) in clause (iii), by striking 

14 ‘‘$4,000,000’’ and inserting ‘‘$5,500,000’’; 

15 (D) in clause (iv), by striking 

16 ‘‘$4,000,000’’ and inserting ‘‘$5,500,000’’; and 

17 (E) in clause (v), by striking ‘‘$4,000,000’’ 

18 and inserting ‘‘$5,500,000’’. 

19 (3) MAXIMUM LOAN LIMITS UNDER MICROLOAN

20 PROGRAM.—Section 7(m) of the Small Business Act 

21 (15 U.S.C. 636(m)) is amended— 

22 (A) in paragraph (1)(B)(iii), by striking 

23 ‘‘$35,000’’ and inserting ‘‘$50,000’’; 


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1 (B) in paragraph (3)(E), by striking 

2 ‘‘$35,000’’ each place it appears and inserting 

3 ‘‘$50,000’’; and 

4 (C) in paragraph (11)(B), by striking 

5 ‘‘$35,000’’ and inserting ‘‘$50,000’’. 

6 (4) LOW INTEREST REFINANCING UNDER THE

7 LOCAL DEVELOPMENT BUSINESS LOAN PROGRAM.— 

8 Section 502(7) of the Small Business Investment 

9 Act of 1958 (15 U.S.C. 696(7)) is amended— 

10 (A) in subparagraph (A), by inserting ‘‘, 

11 including a financing that does not involve an 

12 expansion of a small business concern,’’ after 

13 ‘‘under this title’’; and 

14 (B) by adding at the end the following: 

15 ‘‘(C) REFINANCING NOT INVOLVING EX16 PANSIONS.—If the project for which a financing 

17 is approved under this title does not involve the 

18 expansion of a small business concern, any 

19 amount of existing indebtedness may be refi20 nanced and added to the project cost if— 

21 ‘‘(i) the total amount of the financing 

22 is not more than 80 percent of the value 

23 of the collateral for the financing; 


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1 ‘‘(ii) the small business concern has 

2 been in operation for all of the 2-year pe3 riod ending on the date of the financing; 

4 ‘‘(iii) the existing indebtedness was 

5 not incurred during the 2-year period end6 ing on the date of the financing; 

7 ‘‘(iv) the existing indebtedness is not 

8 subject to a guarantee by any Federal 

9 agency; and 

10 ‘‘(v) in any case in which the Admin11 istrator determines that there will be an 

12 additional cost for making a loan that in13 cludes the refinancing of the existing in14 debtedness, the borrower agrees to pay a 

15 fee in an amount equal to the anticipated 

16 additional cost.’’. 

17 (5) BUSINESS STABILIZATION PROGRAM.—Sec18 tion 506(d) of division A of the American Recovery 

19 and Reinvestment Act of 2009 (Public Law 111–5; 

20 123 Stat. 157) is amended by striking ‘‘$35,000’’ 

21 and inserting ‘‘$50,000’’. 

22 (b) FEES.—During the period beginning on the date 

23 of enactment of this Act and ending on January 1, 2011— 

24 (1) with respect to each loan guaranteed under 

25 section 7(a) of the Small Business Act (15 U.S.C. 


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1 636(a)), the Administrator of the Small Business 

2 Administration (in this subsection referred to as the 

3 ‘‘Administrator’’) shall, in lieu of the fees otherwise 

4 applicable under paragraphs (23)(A) and (18)(A) of 

5 section 7(a) of the Small Business Act (15 U.S.C. 

6 636(a)), collect no fee; 

7 (2) the Administrator shall, in lieu of the fee 

8 otherwise applicable under section 503(d)(2) of the 

9 Small Business Investment Act of 1958 (15 U.S.C. 

10 697(d)(2)) for an institution described in subclause 

11 (I), (II), or (III) of section 502(3)(B)(i) of that Act 

12 (15 U.S.C. 696(3)(B)(i)), for any loan guarantee or 

13 project subject to such subsection, collect no fee; and 

14 (3) the Administrator shall, in lieu of the fee 

15 otherwise applicable under section 503(d)(3) of the 

16 Small Business Investment Act of 1958 (15 U.S.C. 

17 697(d)(3)), collect no fee. 

18 (c) PROSPECTIVE REPEAL.— 

19 (1) IN GENERAL.— 

20 (A) MAXIMUM AMOUNTS FOR 7(a) 

21 LOANS.—Section 7(a)(3)(A) of the Small Busi22 ness Act (15 U.S.C. 636(a)(3)(A)) is amended 

23 by striking ‘‘$4,500,000 (or if the gross loan 

24 amount would exceed $5,000,000’’ and insertVerDate Nov 24 2008 00:01 Oct 21, 2009 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1817.IS S1817

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1 ing ‘‘$1,500,000 (or if the gross loan amount 

2 would exceed $2,000,000’’. 

3 (B) MAXIMUM LOAN AMOUNTS UNDER 504

4 PROGRAM.—Section 502(2)(A) of the Small 

5 Business Investment Act of 1958 (15 U.S.C. 

6 696(2)(A)) is amended— 

7 (i) in clause (i), by striking 

8 ‘‘$4,000,000’’ and inserting ‘‘$1,500,000’’; 

9 (ii) in clause (ii), by striking 

10 ‘‘$5,000,000’’ and inserting ‘‘$2,000,000’’; 

11 (iii) in clause (iii), by striking 

12 ‘‘$5,500,000’’ and inserting ‘‘$4,000,000’’; 

13 (iv) in clause (iv), by striking 

14 ‘‘$5,500,000’’ and inserting ‘‘$4,000,000’’; 

15 and 

16 (v) in clause (v), by striking 

17 ‘‘$5,500,000’’ and inserting ‘‘$4,000,000’’. 

18 (C) MAXIMUM LOAN LIMITS UNDER

19 MICROLOAN PROGRAM.—Section 7(m) of the 

20 Small Business Act (15 U.S.C. 636(m)) is 

21 amended— 

22 (i) in paragraph (1)(B)(iii), by strik23 ing ‘‘$50,000’’ and inserting ‘‘$35,000’’; 


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1 (ii) in paragraph (3)(E), by striking 

2 ‘‘$50,000’’ each place it appears and in3 serting ‘‘$35,000’’; and 

4 (iii) in paragraph (11)(B), by striking 

5 ‘‘$50,000’’ and inserting ‘‘$35,000’’. 

6 (D) LOW INTEREST REFINANCING UNDER

7 THE LOCAL DEVELOPMENT BUSINESS LOAN

8 PROGRAM.—Section 502(7) of the Small Busi9 ness Investment Act of 1958 (15 U.S.C. 

10 696(7)) is amended— 

11 (i) in subparagraph (A), by striking ‘‘, 

12 including a financing that does not involve 

13 an expansion of a small business con14 cern,’’; and 

15 (ii) by striking subparagraph (C). 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by paragraph (1) shall take effect on January 1, 

18 2011. 

Æ 


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