II 

117TH CONGRESS 

1ST SESSION S. 258 

To help small businesses access capital and create jobs by reauthorizing 

the successful State Small Business Credit Initiative. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 4, 2021 

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

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To help small businesses access capital and create jobs by 

reauthorizing the successful State Small Business Credit 

Initiative. 

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 Access 

5 to Capital Act of 2021’’. 

6 SEC. 2. NEW TRANCHES OF CAPITAL FOR SUCCESSFUL 

7 STATE PROGRAMS. 

8 Section 3003 of the Small Business Jobs Act of 2010 

9 (12 U.S.C. 5702) is amended by adding at the end the 

10 following: 


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1 ‘‘(d) ADDITIONAL ALLOCATION AND COMPETITIVE

2 AWARDS.— 

3 ‘‘(1) DEFINITIONS.—In this subsection— 

4 ‘‘(A) the term ‘eligible participating State’ 

5 means a participating State that has certified 

6 to the Secretary that the State has expended, 

7 transferred, or obligated not less than 80 percent of the second 1 8 ⁄3 of the 2010 allocation 

9 transferred to the State under subsection 

10 (c)(1)(A)(iii); and 

11 ‘‘(B) the term ‘unused funds’ means— 

12 ‘‘(i) amounts made available to the 

13 Secretary under clause (i)(II) or (ii)(II) of 

14 paragraph (2)(E); and 

15 ‘‘(ii) amounts made available to the 

16 Secretary under paragraph (4)(B)(ii). 

17 ‘‘(2) ALLOCATION FOR 2010 PARTICIPATING

18 STATES.— 

19 ‘‘(A) ALLOCATION.—Of the amount made 

20 available under paragraph (6)(D), the Secretary 

21 shall allocate a total of $5,000,000,000 among 

22 eligible participating States in the same ratio as 

23 funds were allocated under the 2010 allocation 

24 under subsection (b)(1) among participating 

25 States. 


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1 ‘‘(B) APPLICATION.—An eligible partici2 pating State desiring to receive funds allocated 

3 under this paragraph shall submit an applica4 tion— 

5 ‘‘(i) not later than the date that is 6 

6 months after the date of enactment of the 

7 Small Business Access to Capital Act of 

8 2021; and 

9 ‘‘(ii) in such manner and containing 

10 such information as the Secretary may re11 quire. 

12 ‘‘(C) AVAILABILITY OF ALLOCATED

13 AMOUNT.— 

14 ‘‘(i) IN GENERAL.—Notwithstanding 

15 subsection (c)(1), after an eligible partici16 pating State approved by the Secretary to 

17 receive an allocation under this paragraph 

18 has certified to the Secretary that the eligi19 ble participating State has expended, 

20 transferred, or obligated not less than 80 

percent of the last 1 21 ⁄3 of the 2010 alloca22 tion to the eligible participating State, the 

23 Secretary shall transfer to the eligible par24 ticipating State the funds allocated to the 


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1 eligible participating State under this para2 graph. 

3 ‘‘(ii) EFFECT ON AGREEMENTS.—The 

4 allocation or transfer of funds under this 

5 paragraph to an eligible participating State 

6 shall not be construed to— 

7 ‘‘(I) amend or modify the terms 

8 of the allocation agreement entered 

9 into by the eligible participating State 

10 relating to the 2010 allocation; or 

11 ‘‘(II) modify or extend the alloca12 tion time period, as defined under 

13 such allocation agreement. 

14 ‘‘(D) USE OF TRANSFERRED FUNDS.—An 

15 eligible participating State may use funds 

16 transferred under this paragraph for any pur17 pose authorized under subparagraph (A) or (B) 

18 of subsection (c)(3). 

19 ‘‘(E) TERMINATION OF AVAILABILITY OF

20 AMOUNTS.— 

21 ‘‘(i) IN GENERAL.—If an eligible par22 ticipating State has not certified to the 

23 Secretary that the State has expended, 

24 transferred, or obligated not less than 80 

percent of the last 1 25 ⁄3 of the 2010 allocaVerDate Sep 11 2014 23:04 Feb 20, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S258.IS S258

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1 tion as of the date that is 2 years after the 

2 date on which the Secretary approves the 

3 eligible participating State to receive an al4 location under this paragraph, any 

5 amounts allocated to the eligible partici6 pating State under this paragraph— 

7 ‘‘(I) may not be transferred to 

8 the eligible participating State under 

9 this paragraph; and 

10 ‘‘(II) shall be available to the 

11 Secretary to make awards under para12 graph (4). 

13 ‘‘(ii) OTHER AMOUNTS.—Effective on 

14 the date that is 2 years after the date of 

15 enactment of the Small Business Access to 

16 Capital Act of 2021, any amounts allo17 cated under this paragraph to a partici18 pating State that, as of such date, is not 

19 an eligible participating State or to an eli20 gible participating State that did not sub21 mit an application under subparagraph (B) 

22 or was not approved by the Secretary to 

23 receive an allocation under this para24 graph— 


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1 ‘‘(I) may not be transferred to an 

2 eligible participating State under this 

3 paragraph; and 

4 ‘‘(II) shall be available to the 

5 Secretary to make awards under para6 graph (4). 

7 ‘‘(3) COMPETITIVE FUNDING.— 

8 ‘‘(A) IN GENERAL.—Of the amount made 

9 available under paragraph (6)(D), the Secretary 

10 may award, on a competitive basis, not more 

11 than a total of $5,000,000,000 to participating 

12 States and consortiums of participating States 

13 for use for any purpose authorized under sub14 paragraph (A) or (B) of subsection (c)(3). 

15 ‘‘(B) APPLICATION.— 

16 ‘‘(i) IN GENERAL.—A participating 

17 State or consortium of participating States 

18 desiring to receive an award under this 

19 paragraph shall submit an application— 

20 ‘‘(I) not later than the date es21 tablished by the Secretary, which shall 

22 be not later than the date that is 1 

23 year after the date of enactment of 

24 the Small Business Access to Capital 

25 Act of 2021; and 


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1 ‘‘(II) in such manner and con2 taining such information as the Sec3 retary may require. 

4 ‘‘(ii) NUMBER OF APPLICATIONS.—A 

5 participating State may submit not more 

6 than 1 application on behalf of the partici7 pating State and not more than 1 applica8 tion as part of a consortium of partici9 pating States. 

10 ‘‘(iii) STATES THAT DID NOT PARTICI11 PATE.—A State that is not a participating 

12 State may apply to the Secretary for ap13 proval to be a participating State for pur14 poses of this paragraph and paragraph (4), 

15 in accordance with section 3004. 

16 ‘‘(C) FACTORS.—In determining whether 

17 to make an award to a participating State or 

18 consortium of participating States under this 

19 paragraph, the Secretary shall consider— 

20 ‘‘(i) how the participating State or 

21 consortium of participating States plan to 

22 use amounts provided under the award 

23 under the approved State program to— 

24 ‘‘(I) leverage private sector cap25 ital; 


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1 ‘‘(II) create and retain jobs dur2 ing the 2-year period beginning on the 

3 date of the award; 

4 ‘‘(III) serve businesses that have 

5 been incorporated or in operation for 

6 not more than 5 years; and 

7 ‘‘(IV) serve low- or moderate-in8 come communities; 

9 ‘‘(ii) the extent to which the partici10 pating State or consortium of participating 

11 States will establish or continue a robust 

12 self-evaluation of the activities of the par13 ticipating State or consortium of partici14 pating States using amounts made avail15 able under this title; 

16 ‘‘(iii) the extent to which the partici17 pating State or consortium of participating 

18 States will provide non-Federal funds in 

19 excess of the amount required under sub20 paragraph (E); and 

21 ‘‘(iv) the extent to which the partici22 pating State expended, obligated, or trans23 ferred the 2010 allocation to the State. 

24 ‘‘(D) AWARD OF FUNDS.— 


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1 ‘‘(i) FIRST TRANCHE.—Notwith2 standing subsection (c)(1), and not later 

3 than 30 days after making an award under 

4 this paragraph to a participating State or 

5 consortium of participating States, the 

6 Secretary shall transfer 50 percent of the 

7 amount of the award to the participating 

8 State or consortium of participating 

9 States. 

10 ‘‘(ii) SECOND TRANCHE.—After a par11 ticipating State or consortium of partici12 pating States has certified to the Secretary 

13 that the participating State or consortium 

14 of participating States has expended, 

15 transferred, or obligated not less than 80 

16 percent of the amount transferred under 

17 clause (i), the Secretary shall transfer to 

18 the participating State or consortium of 

19 participating States the remaining amount 

20 of the award. 

21 ‘‘(E) STATE SHARE.—The State share of 

22 the cost of the activities, excluding administra23 tive expenses, carried out using an award under 

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1 tributions by a State qualify as part of the 

2 State share of the cost for purposes of this sub3 paragraph. 

4 ‘‘(4) AWARD OF UNUSED FUNDS.— 

5 ‘‘(A) IN GENERAL.—The Secretary may 

6 award, on a competitive basis, unused funds to 

7 participating States for use for any purpose au8 thorized under subparagraph (A) or (B) of sub9 section (c)(3). 

10 ‘‘(B) UNUSED 2010 FUNDS.— 

11 ‘‘(i) IN GENERAL.—The Secretary 

12 shall determine whether any amounts allo13 cated to a participating State under sub14 section (b) shall be deemed no longer allo15 cated and no longer available if a partici16 pating State has not certified to the Sec17 retary that the State has expended, trans18 ferred, or obligated 80 percent of the second 1 19 ⁄3 of the 2010 allocation by December 

20 31, 2022. 

21 ‘‘(ii) AVAILABILITY.—Effective on the 

22 date of the determination under clause (i), 

23 any amounts identified in the determina24 tion that were deemed no longer allocated 

25 and no longer available to the participating 


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1 State shall be available to the Secretary to 

2 make awards under this paragraph. 

3 ‘‘(C) APPLICATION.—A participating State 

4 desiring to receive an award under this para5 graph shall submit an application— 

6 ‘‘(i) not later than 3 months after the 

7 date on which funds are deemed no longer 

8 allocated and no longer available to any 

9 participating State; and 

10 ‘‘(ii) in such manner and containing 

11 such information as the Secretary may re12 quire. 

13 ‘‘(D) FACTORS.—In determining whether 

14 to make an award to a participating State 

15 under this paragraph, the Secretary shall con16 sider the factors described in paragraph (3)(C). 

17 ‘‘(E) MINIMUM AMOUNT.—The Secretary 

18 may not make an award of less than 

19 $5,000,000 under this paragraph. 

20 ‘‘(5) COMPLIANCE AND REPORTING REQUIRE21 MENTS.—During the period beginning on the date 

22 on which a participating State first receives funds 

23 under paragraph (2), (3), or (4) and ending on the 

24 date that is 8 years after the date of enactment of 

25 the Small Business Access to Capital Act of 2021, 


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1 the participating State shall submit quarterly and 

2 annual reports containing the information described 

3 in, and in accordance with the deadlines established 

4 under, section 3007. 

5 ‘‘(6) ADMINISTRATION AND IMPLEMENTA6 TION.— 

7 ‘‘(A) ADMINISTRATIVE EXPENSES FOR

8 PARTICIPATING STATES.—A participating State 

9 may use not more than 3 percent of the amount 

10 made available to the participating State under 

11 paragraph (2), (3), or (4) for administrative ex12 penses incurred by the participating State in 

13 implementing an approved State program. 

14 ‘‘(B) CONTRACTING.—During the 1-year 

15 period beginning on the date of enactment of 

16 the Small Business Access to Capital Act of 

17 2021, and notwithstanding any other provision 

18 of law relating to public contracting, the Sec19 retary may enter into contracts to carry out 

20 this subsection. 

21 ‘‘(C) AMOUNTS NOT ASSISTANCE.—Any 

22 amounts transferred to a participating State 

23 under paragraph (2), (3), or (4) shall not be 

24 considered assistance for purposes of subtitle V 

25 of title 31, United States Code. 


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1 ‘‘(D) APPROPRIATION.—There are appro2 priated to the Secretary, out of any funds in 

3 the Treasury not otherwise appropriated, 

4 $10,000,000,000 to carry out this subsection, 

5 including to pay reasonable costs of admin6 istering the programs under this subsection, to 

7 remain available until expended. 

8 ‘‘(E) TERMINATION OF SECRETARY’S PRO9 GRAM ADMINISTRATION FUNCTIONS.—Notwith10 standing section 3009(c), the authorities and 

11 duties of the Secretary to implement and ad12 minister the program under this subsection 

13 shall terminate at the end of the 8-year period 

14 beginning on the date of enactment of the 

15 Small Business Access to Capital Act of 

16 2021.’’. 

Æ 


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