I 

111TH CONGRESS 

1ST SESSION H. R. 3723 

To amend the Small Business Act to improve the activities carried out 

under section 7(a) of such Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 6, 2009 

Mrs. HALVORSON introduced the following bill; which was referred to the 

Committee on Small Business 

A BILL 

To amend the Small Business Act to improve the activities 

carried out under section 7(a) of such Act, 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 Credit 

5 Expansion and Loan Markets Stabilization Act of 2009’’. 

6 SEC. 2. SMALL LENDER OUTREACH PROGRAM. 

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

8 636(a)) is amended by adding at the end the following: 

9 ‘‘(34) SMALL LENDER OUTREACH PROGRAM.— 

10 The Administrator shall establish and carry out a 


jbell on DSKDVH8Z91PROD with BILLS
2 

•HR 3723 IH

1 program to provide support to regional, district, and 

2 branch offices of the Administration to assist small 

3 lenders, who do not participate in the Preferred 

4 Lenders Program, to participate in the programs 

5 under this subsection.’’. 

6 SEC. 3. RURAL LENDING OUTREACH PROGRAM. 

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

8 636(a)), as amended by this Act, is further amended by 

9 adding at the end the following: 

10 ‘‘(35) RURAL LENDING OUTREACH PROGRAM.— 

11 ‘‘(A) IN GENERAL.—The Administrator 

12 shall establish and carry out a rural lending 

13 outreach program (hereinafter referred to in 

14 this paragraph as the ‘program’) to provide 

15 loans under this subsection in accordance with 

16 this paragraph. 

17 ‘‘(B) MAXIMUM PARTICIPATION.—A loan 

18 under the program shall include the maximum 

19 participation levels by the Administrator per20 mitted for loans made under this subsection. 

21 ‘‘(C) MAXIMUM LOAN AMOUNT.—The max22 imum amount of a loan under the program 

23 shall be $250,000. 

24 ‘‘(D) USE OF RURAL LENDERS.—The pro25 gram shall be carried out through lenders loVerDate Nov 24 2008 05:02 Oct 07, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3723.IH H3723

jbell on DSKDVH8Z91PROD with BILLS
3 

•HR 3723 IH

1 cated in a rural area (as such term is defined 

2 under subsection (m)(11)(C)) or, if a small 

3 business concern located in a rural area does 

4 not have a lender located within 30 miles of the 

5 principal place of business of such concern, 

6 through any lender chosen by such concern that 

7 provides loans under this subsection. 

8 ‘‘(E) TIME FOR APPROVAL.—The Adminis9 trator shall approve or disapprove a loan under 

10 the program within 36 hours. 

11 ‘‘(F) DOCUMENTATION.—The program 

12 shall use abbreviated application and docu13 mentation requirements. 

14 ‘‘(G) CREDIT STANDARDS.—Minimum 

15 credit standards, as the Administrator considers 

16 necessary to limit the rate of default on loans 

17 made under the program, shall apply.’’. 

18 SEC. 4. COMMUNITY EXPRESS PROGRAM MADE PERMA19 NENT. 

20 Section 7(a) of the Small Business Act (15 U.S.C. 

21 636(a)), as amended by this Act, is further amended by 

22 adding at the end the following: 

23 ‘‘(36) COMMUNITY EXPRESS PROGRAM.— 

24 ‘‘(A) IN GENERAL.—The Administrator 

25 shall carry out a Community Express Program 


jbell on DSKDVH8Z91PROD with BILLS
4 

•HR 3723 IH

1 to provide loans under this subsection in ac2 cordance with this paragraph. 

3 ‘‘(B) REQUIREMENTS.—For a loan made 

4 under the Community Express Program, the 

5 following shall apply: 

6 ‘‘(i) The loan shall be in an amount 

7 not exceeding $250,000. 

8 ‘‘(ii) The loan shall be made to a 

9 small business concern the majority owner10 ship interest of which is directly held by in11 dividuals the Administrator determines 

12 are, without regard to the geographic loca13 tion of such individuals, women, members 

14 of qualified Indian tribes, socially or eco15 nomically disadvantaged individuals, vet16 erans, or members of the reserve compo17 nents of the Armed Forces. 

18 ‘‘(iii) The loan shall comply with the 

19 collateral policy of the Administration. 

20 ‘‘(iv) The loan shall include terms re21 quiring the lender to provide, at the ex22 pense of the lender, technical assistance to 

23 the borrower through the lender or a third24 party provider. 


jbell on DSKDVH8Z91PROD with BILLS
5 

•HR 3723 IH

1 ‘‘(v) The Administrator shall approve 

2 or disapprove the loan within 36 hours.’’. 

3 SEC. 5. INCREASED VETERAN PARTICIPATION PROGRAM 

4 MADE PERMANENT. 

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

6 636(a)), as amended by this Act, is further amended— 

7 (1) by redesignating the second paragraph (32), 

8 as added by section 208 of the Military Reservist 

9 and Veteran Small Business Reauthorization and 

10 Opportunity Act of 2008 (Public Law 110–186; 122 

11 Stat. 631), as paragraph (33); and 

12 (2) in paragraph (33), as so redesignated by 

13 paragraph (1) of this section— 

14 (A) by striking ‘‘pilot program’’ each place 

15 it appears and inserting ‘‘program’’; 

16 (B) by striking subparagraphs (C) and 

17 (F); and 

18 (C) by redesignating subparagraphs (D) 

19 and (E) as subparagraphs (C) and (D), respec20 tively. 

21 SEC. 6. LEASING POLICY. 

22 Section 7(a) of the Small Business Act (15 U.S.C. 

23 636(a)), as amended by this Act, is further amended by 

24 striking paragraph (28) and inserting the following: 


jbell on DSKDVH8Z91PROD with BILLS
6 

•HR 3723 IH

1 ‘‘(28) LEASING.—If a loan under this sub2 section is used to acquire or construct a facility, the 

3 assisted small business concern— 

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

5 less than 50 percent of the space in such facil6 ity; and 

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

8 basis, lease to others not more than 50 percent 

9 of the space in such facility.’’. 

10 SEC. 7. NATIONAL LENDER TRAINING PROGRAM. 

11 Section 7(a) of the Small Business Act (15 U.S.C. 

12 636(a)), as amended by this Act, is further amended by 

13 adding at the end the following: 

14 ‘‘(37) NATIONAL LENDER TRAINING PRO15 GRAM.— 

16 ‘‘(A) IN GENERAL.—The Administrator 

17 shall establish and carry out, through the re18 gional offices of the Administration, a lender 

19 training program for new and existing lenders 

20 under this subsection with respect to the lend21 ing systems, policies, and procedures of the Ad22 ministration. 

23 ‘‘(B) FEES.—The Administrator shall 

24 charge a fee for the program established under 


jbell on DSKDVH8Z91PROD with BILLS
7 

•HR 3723 IH

1 subparagraph (A) to reduce the cost of such 

2 program to zero. 

3 ‘‘(C) LIMITATION.—The program estab4 lished under subparagraph (A) may not be car5 ried out by contract with a nongovernmental 

6 entity.’’. 

7 SEC. 8. APPLICATIONS FOR REPURCHASE OF LOANS. 

8 Section 7(a) of the Small Business Act (15 U.S.C. 

9 636(a)), as amended by this Act, is further amended by 

10 adding at the end the following: 

11 ‘‘(38) APPLICATIONS FOR REPURCHASE OF

12 LOANS.— 

13 ‘‘(A) IN GENERAL.—Not later than 45 

14 days after the date of the receipt of a claim 

15 from a lender for proper payment of the guar16 anteed portion of a loan under this subsection 

17 due to default, the Administrator shall make a 

18 final determination with respect to the approval 

19 or denial of such claim. 

20 ‘‘(B) LATE DETERMINATIONS.—If the Ad21 ministrator does not make a final determination 

22 under subparagraph (A) in the time period 

23 specified in such subparagraph, the claim shall 

24 be approved and paid promptly.’’. 


jbell on DSKDVH8Z91PROD with BILLS
8 

•HR 3723 IH

1 SEC. 9. ALTERNATIVE SIZE STANDARD. 

2 (a) IN GENERAL.—Section 3(a) of the Small Busi3 ness Act (15 U.S.C. 632(a)) is amended by adding at the 

4 end the following: 

5 ‘‘(5) In addition to any other size standard 

6 under this subsection, the Administrator shall estab7 lish and permit a lender making a loan under section 

8 7(a) to use an alternative size standard. The alter9 native size standard shall be based on factors includ10 ing the maximum tangible net worth and average 

11 net income of a business concern.’’. 

12 (b) APPLICABILITY.—Until the Administrator estab13 lishes under section 3(a)(5) of the Small Business Act, 

14 as added by subsection (a) of this section, an alternative 

15 size standard for use by a lender making a loan under 

16 section 7(a) of such Act, the alternative size standard in 

17 section 121.301(b) of title 13, Code of Federal Regula18 tions, shall apply in such a case. 

19 SEC. 10. PILOT PROGRAM AUTHORITY. 

20 Section 7(a) of the Small Business Act (15 U.S.C. 

21 636(a)), as amended by this Act, is further amended by 

22 striking paragraph (25) and inserting the following: 

23 ‘‘(25) LIMITATION ON CONDUCTING PILOT

24 PROJECTS.— 

25 ‘‘(A) LIMITATION ON NUMBER.—Not more 

26 than 10 percent of the total number of loans 


jbell on DSKDVH8Z91PROD with BILLS
9 

•HR 3723 IH

1 guaranteed in any fiscal year under this sub2 section may be awarded as part of a pilot pro3 gram. 

4 ‘‘(B) DOLLAR LIMITATIONS.— 

5 ‘‘(i) IN GENERAL.—With respect to 

6 any pilot program under this subsection es7 tablished on or after the date of the enact8 ment of the Small Business Credit Expan9 sion and Loan Markets Stabilization Act of 

10 2009, no loan shall be made under such 

11 program if such loan would result in the 

12 total amount of loans made during a fiscal 

13 year under all such programs to be in ex14 cess of 5 percent of the total amount of 

15 loans guaranteed in such fiscal year under 

16 this subsection. 

17 ‘‘(ii) CERTAIN PRE-EXISTING PRO18 GRAMS.—With respect to any pilot pro19 gram under this subsection established be20 fore the date of the enactment of the Small 

21 Business Credit Expansion and Loan Mar22 kets Stabilization Act of 2009, no loan 

23 shall be made under such program if such 

24 loan would result in the total amount of 

25 loans made during a fiscal year under all 


jbell on DSKDVH8Z91PROD with BILLS
10 

•HR 3723 IH

1 such programs to be in excess of 10 per2 cent of the total amount of loans guaran3 teed in such fiscal year under this sub4 section. 

5 ‘‘(C) EXPIRATION.— 

6 ‘‘(i) IN GENERAL.—Except as pro7 vided in clause (iii), the duration of any 

8 pilot program under this subsection may 

9 not exceed 3 years. 

10 ‘‘(ii) DESIGNATION AS NEW PRO11 GRAM.—For purposes of this subpara12 graph, a pilot program shall not be treated 

13 as a new pilot program solely on the basis 

14 of a modification or change in the pilot 

15 program, including the change of its name. 

16 ‘‘(iii) EXISTING PROGRAMS.—With re17 spect to any pilot program in existence on 

18 the date of the enactment of the Small 

19 Business Credit Expansion and Loan Mar20 kets Stabilization Act of 2009, such pro21 gram may continue in effect for a period 

22 not exceeding 3 years after such date with23 out regard to the duration of such program 

24 before such date. 

25 ‘‘(D) REGULATIONS.— 


jbell on DSKDVH8Z91PROD with BILLS
11 

•HR 3723 IH

1 ‘‘(i) IN GENERAL.—With respect to 

2 each pilot program under this subsection, 

3 including each pilot program in existence 

4 on the date of the enactment of the Small 

5 Business Credit Expansion and Loan Mar6 kets Stabilization Act of 2009, the Admin7 istrator shall— 

8 ‘‘(I) issue regulations for such 

9 program after providing notice in the 

10 Federal Register and an opportunity 

11 for comment; and 

12 ‘‘(II) ensure that such regula13 tions are published in the Code of 

14 Federal Regulations. 

15 ‘‘(ii) PILOT PROGRAMS ESTABLISHED

16 AFTER DATE OF ENACTMENT.—With re17 spect to any pilot program established 

18 after the date of the enactment of the 

19 Small Business Credit Expansion and 

20 Loan Markets Stabilization Act of 2009, 

21 such program shall not take effect until 

22 the requirements under this subparagraph 

23 are satisfied. 

24 ‘‘(E) REPEAL OF AUTHORITY TO WAIVE

25 CERTAIN RULES.— 


jbell on DSKDVH8Z91PROD with BILLS
12 

•HR 3723 IH

1 ‘‘(i) IN GENERAL.—Notwithstanding 

2 section 120.3 of title 13, Code of Federal 

3 Regulations, the Administrator may not 

4 from time to time suspend, modify, or 

5 waive rules for a limited period of time to 

6 test new programs or ideas with respect to 

7 this subsection, unless such suspension, 

8 modification, or waiver is explicitly author9 ized by Act of Congress. 

10 ‘‘(ii) EXISTING PILOT PROGRAMS.— 

11 Nothing under clause (i) may be construed 

12 to affect a pilot program in existence on 

13 the date of the enactment of the Small 

14 Business Credit Expansion and Loan Mar15 kets Stabilization Act of 2009. 

16 ‘‘(F) PILOT PROGRAM.—For purposes of 

17 this paragraph, the term ‘pilot program’ means 

18 any lending program initiative, project, innova19 tion, or other activity not specifically authorized 

20 by Act of Congress.’’. 

21 SEC. 11. LOANS TO COOPERATIVES. 

22 Section 7(a) of the Small Business Act (15 U.S.C. 

23 636(a)), as amended by this Act, is further amended by 

24 adding at the end the following: 


jbell on DSKDVH8Z91PROD with BILLS
13 

•HR 3723 IH

1 ‘‘(39) COOPERATIVES.—The Administration 

2 may provide loans under this subsection to any coop3 erative that— 

4 ‘‘(A) is not organized as a tax exempt enti5 ty; 

6 ‘‘(B) is engaged in a legal business activ7 ity; 

8 ‘‘(C) obtains financial benefits for the co9 operative and for the members of such coopera10 tive; and 

11 ‘‘(D) is eligible under applicable size stand12 ards of the Administration, including that any 

13 business entity that is a member of such coop14 erative is eligible under applicable size stand15 ards of the Administration.’’. 

16 SEC. 12. CAPITAL BACKSTOP PROGRAM. 

17 Section 7(a) of the Small Business Act (15 U.S.C. 

18 636(a)), as amended by this Act, is further amended by 

19 adding at the end the following: 

20 ‘‘(40) CAPITAL BACKSTOP PROGRAM.— 

21 ‘‘(A) IN GENERAL.—The Administrator 

22 shall establish a process under which a small 

23 business concern may submit an application to 

24 the Administrator for the purpose of securing a 

25 loan under this subsection. With respect to such 


jbell on DSKDVH8Z91PROD with BILLS
14 

•HR 3723 IH

1 application, the Administrator shall collect all 

2 information necessary to determine the credit3 worthiness and repayment ability of an appli4 cant and shall determine if such application 

5 meets basic eligibility and credit standards for 

6 a loan under this subsection. 

7 ‘‘(B) PARTICIPATION OF LENDERS.— 

8 ‘‘(i) IN GENERAL.—The Administrator 

9 shall establish a process under which the 

10 Administrator makes available to lenders 

11 each loan application submitted and deter12 mined to meet basic eligibility and credit 

13 standards under subparagraph (A) for the 

14 purpose of such lenders originating, under15 writing, closing, and servicing the loan for 

16 which the applicant applied. 

17 ‘‘(ii) ELIGIBILITY.—Lenders are eligi18 ble to receive a loan application described 

19 in clause (i) if they participate in the pro20 grams established under this subsection. 

21 ‘‘(iii) LOCAL LENDERS.—The Admin22 istrator shall first make available a loan 

23 application described in clause (i) to lend24 ers within 100 miles of the principal office 

25 of the loan applicant. 


jbell on DSKDVH8Z91PROD with BILLS
15 

•HR 3723 IH

1 ‘‘(iv) PREFERRED LENDERS.—If a 

2 lender described in clause (iii) does not 

3 agree to originate, underwrite, close, and 

4 service the loan applied for within 5 busi5 ness days of receiving a loan application 

6 described in clause (i), the Administrator 

7 shall subsequently make available such 

8 loan application to lenders in the Preferred 

9 Lenders Program under paragraph 

10 (2)(C)(ii) of this subsection. 

11 ‘‘(v) AUTHORITY OF ADMINISTRATION

12 TO LEND.—If a lender described in clauses 

13 (iii) or (iv) does not agree to originate, un14 derwrite, close, and service the loan applied 

15 for within 10 business days of receiving a 

16 loan application described in clause (i), the 

17 Administrator shall originate, underwrite, 

18 close, and service such loan. 

19 ‘‘(C) ASSET SALES.—The Administrator 

20 shall offer to sell loans made by the Adminis21 trator under this paragraph. Such sales shall be 

22 made through the semi-annual public solicita23 tion (in the Federal Register and in other 

24 media) of offers to purchase. The Administrator 

25 may contract with vendors for due diligence, 


jbell on DSKDVH8Z91PROD with BILLS
16 

•HR 3723 IH

1 asset valuation, and other services related to 

2 such sales. The Administrator may not sell any 

3 loan under this subparagraph for less than 90 

4 percent of the net present value of the loan, as 

5 determined and certified by a qualified third 

6 party. 

7 ‘‘(D) LOANS NOT SOLD.—The Adminis8 trator shall maintain and service loans made by 

9 the Administrator under this paragraph that 

10 are not sold through the asset sales under this 

11 paragraph. 

12 ‘‘(E) EFFECTIVE DATES.—This paragraph 

13 shall have effect on a date if— 

14 ‘‘(i) such date occurs during a period 

15 that— 

16 ‘‘(I) begins on the date the Bu17 reau of Economic Analysis, or any 

18 successor organization, makes a deter19 mination that the gross domestic 

20 product of the United States has de21 creased for three consecutive quarters; 

22 and 

23 ‘‘(II) ends on the date the Bu24 reau of Economic Analysis, or any 

25 successor organization, makes a deterVerDate Nov 24 2008 05:02 Oct 07, 2009 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H3723.IH H3723

jbell on DSKDVH8Z91PROD with BILLS
17 

•HR 3723 IH

1 mination that the gross domestic 

2 product of the United States has in3 creased for two consecutive quarters; 

4 and 

5 ‘‘(ii) the number of loans provided 

6 under this subsection prior to such date in 

7 the fiscal year including such date is at 

8 least 30 percent less than the number of 

9 such loans provided prior to the same point 

10 in the previous fiscal year. 

11 ‘‘(F) IMPLEMENTATION.—The Adminis12 trator shall establish a group of at least 250 in13 dividuals available to carry out activities under 

14 this paragraph on any date on which this para15 graph has effect under subparagraph (E). The 

16 Administrator shall provide to such group the 

17 training necessary to carry out activities under 

18 this paragraph. 

19 ‘‘(G) APPLICATION OF OTHER LAW.— 

20 Nothing in this paragraph shall be construed to 

21 exempt any activity of the Administrator under 

22 this paragraph from the Federal Credit Reform 

23 Act of 1990 (2 U.S.C. 661 et seq.). 

24 ‘‘(H) AUTHORIZATION OF APPROPRIA25 TIONS.—In addition to amounts made available 


jbell on DSKDVH8Z91PROD with BILLS
18 

•HR 3723 IH

1 to carry out this subsection, there are author2 ized to be appropriated such sums as may be 

3 necessary to carry out this paragraph.’’. 

4 SEC. 13. LOANS TO FINANCE GOODWILL. 

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

6 636(a)), as amended by this Act, is further amended by 

7 adding at the end the following: 

8 ‘‘(41) GOODWILL.—The Administrator may not 

9 apply an application, processing, or approval stand10 ard to a loan for the purpose of financing goodwill 

11 under this subsection, unless such standard applies 

12 to all loans under this subsection.’’. 

13 SEC. 14. APPELLATE PROCESS AND OMBUDSMAN. 

14 The Small Business Act (15 U.S.C. 631 et seq.) is 

15 amended— 

16 (1) by redesignating section 44 as section 45; 

17 and 

18 (2) by inserting after section 43 the following: 

19 ‘‘SEC. 44. APPELLATE PROCESS AND OMBUDSMAN. 

20 ‘‘(a) APPELLATE PROCESS.— 

21 ‘‘(1) IN GENERAL.—Not later than 270 days 

22 after the date of the enactment of the Small Busi23 ness Credit Expansion and Loan Markets Stabiliza24 tion Act of 2009, the Administrator shall establish 

25 an independent appellate process within the AdminVerDate Nov 24 2008 05:02 Oct 07, 2009 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H3723.IH H3723

jbell on DSKDVH8Z91PROD with BILLS
19 

•HR 3723 IH

1 istration. The process shall be available to review 

2 material determinations made by the Administration 

3 that affect a lender or investment company that par4 ticipates or is applying to participate in a program 

5 administered by the Administration. 

6 ‘‘(2) REVIEW PROCESS.—In establishing the 

7 independent appellate process under paragraph (1), 

8 The Administrator shall ensure that— 

9 ‘‘(A) any appeal of a material determina10 tion by the Administration is heard and result11 ing recommendations are provided expedi12 tiously; and 

13 ‘‘(B) appropriate safeguards exist for pro14 tecting the appellant from retaliation by Admin15 istration employees. 

16 ‘‘(3) COMMENT PERIOD.—Not later than 180 

17 days after the date of the enactment of the Small 

18 Business Credit Expansion and Loan Markets Sta19 bilization Act of 2009, the Administrator shall pro20 vide an opportunity for notice and comment on pro21 posed guidelines for the establishment of an inde22 pendent appellate process under this section. 

23 ‘‘(b) AGENCY OMBUDSMAN.— 

24 ‘‘(1) ESTABLISHMENT.—Not later than 180 

25 days after the date of the enactment of the Small 


jbell on DSKDVH8Z91PROD with BILLS
20 

•HR 3723 IH

1 Business Credit Expansion and Loan Markets Sta2 bilization Act of 2009, the Administrator shall ap3 point an ombudsman. 

4 ‘‘(2) DUTIES.—The ombudsman appointed in 

5 accordance with paragraph (1) shall— 

6 ‘‘(A) act as a liaison between the Adminis7 tration and any lender or investment company 

8 that participates or is applying to participate in 

9 a program administered by the Administration 

10 with respect to a problem such entity may have 

11 in dealing with the Administration resulting 

12 from a material determination made by the Ad13 ministration; and 

14 ‘‘(B) ensure that safeguards exist to en15 courage complainants to come forward and pre16 serve confidentiality. 

17 ‘‘(c) OTHER AUTHORITY.—An individual carrying 

18 out the independent appellate process established under 

19 subsection (a) or the position of ombudsman established 

20 under subsection (b) is authorized to— 

21 ‘‘(1) examine records and documents relating to 

22 a matter under review pursuant to such subsections; 

23 and 

24 ‘‘(2) initiate the review of a matter under such 

25 subsections if such individual believes that AdminisVerDate Nov 24 2008 05:02 Oct 07, 2009 Jkt 089200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H3723.IH H3723

jbell on DSKDVH8Z91PROD with BILLS
21 

•HR 3723 IH

1 tration procedures have not been followed as in2 tended with respect to such matter, without regard 

3 to whether an appeal or complaint has been made. 

4 ‘‘(d) LIMITATIONS.— 

5 ‘‘(1) IN GENERAL.—An individual carrying out 

6 the independent appellate process established under 

7 subsection (a) or the position of ombudsman estab8 lished under subsection (b) may not, as a result of 

9 the authority provided under this section— 

10 ‘‘(A) make, change, or set aside a law, pol11 icy, or administrative decision; 

12 ‘‘(B) make binding decisions or determine 

13 rights; 

14 ‘‘(C) directly compel an entity to imple15 ment the recommendations of such individual; 

16 or 

17 ‘‘(D) accept jurisdiction over an issue that 

18 is pending in a legal forum. 

19 ‘‘(2) RULE OF CONSTRUCTION.—Activities car20 ried out under this section may not be construed— 

21 ‘‘(A) as a formal investigation, formal 

22 hearing, or binding decision; 

23 ‘‘(B) as limiting any remedy or right of ap24 peal; 


jbell on DSKDVH8Z91PROD with BILLS
22 

•HR 3723 IH

1 ‘‘(C) as affecting any procedure concerning 

2 grievances, appeals, or administrative matters 

3 under law; or 

4 ‘‘(D) as a substitute for an administrative 

5 or judicial proceeding. 

6 ‘‘(e) REPORT.—Not later than one year after the date 

7 of the enactment of the Small Business Credit Expansion 

8 and Loan Markets Stabilization Act of 2009 and annually 

9 thereafter, the Administrator shall submit to the Com10 mittee on Small Business of the House of Representatives 

11 and the Committee on Small Business and Entrepreneur12 ship of the Senate a report describing and providing the 

13 status of appeals made under subsection (a) and com14 plaints made under subsection (b). 

15 ‘‘(f) DEFINITIONS.—In this section, the following 

16 apply: 

17 ‘‘(1) MATERIAL DETERMINATION.—The term 

18 ‘material determination’ includes determinations re19 lating to— 

20 ‘‘(A) applications for payment relating to a 

21 loan guarantee; and 

22 ‘‘(B) the ability of an entity to participate 

23 in an Administration loan or investing program. 

24 ‘‘(2) INDEPENDENT APPELLATE PROCESS.— 

25 The term ‘independent appellate process’ means a 


jbell on DSKDVH8Z91PROD with BILLS
23 

•HR 3723 IH

1 review by an Administration official who does not di2 rectly or indirectly report to the Administration offi3 cial who made the material determination under re4 view.’’. 

5 SEC. 15. EXTENSION OF RECOVERY AND RELIEF LOAN BEN6 EFITS. 

7 (a) FEE REDUCTIONS.—Section 501 of title V of di8 vision A of the American Recovery and Reinvestment Act 

9 of 2009 (Public Law 111–5) is amended— 

10 (1) in subsection (a) by striking ‘‘September 

11 30, 2010’’ and inserting ‘‘September 30, 2011’’; and 

12 (2) in subsection (c) by striking paragraph (2). 

13 (b) ECONOMIC STIMULUS LENDING PROGRAM FOR

14 SMALL BUSINESSES.—Section 502(f) of title V of division 

15 A of the American Recovery and Reinvestment Act of 

16 2009 (Public Law 111–5) is amended by striking ‘‘the 

17 date 12 months after the date of enactment of this Act’’ 

18 and inserting ‘‘September 30, 2011’’. 

19 SEC. 16. REDUCED DOCUMENTATION FOR BUSINESS STA20 BILIZATION LOANS. 

21 Section 506(a) of title V of division A of the Amer22 ican Recovery and Reinvestment Act of 2009 (Public Law 

23 111–5) is amended by adding at the end the following: 

24 ‘‘In carrying out such program, the Administrator shall 

25 establish and utilize a one-page application for loans under 


jbell on DSKDVH8Z91PROD with BILLS
24 

•HR 3723 IH

1 this section and shall authorize lenders to utilize the same 

2 documentation and procedural requirements for loans 

3 under this section as such lenders utilize for other loans 

4 of a similar size and type.’’. 

5 SEC. 17. EXPANDED ELIGIBILITY FOR BUSINESS STABILIZA6 TION LOANS. 

7 Section 506(c) of title V of division A of the American 

8 Recovery and Reinvestment Act of 2009 (Public Law 111– 

9 5) is amended by striking ‘‘but shall not include’’ and all 

10 that follows through ‘‘enactment of this Act’’. 

11 SEC. 18. INCREASED AMOUNT OF BUSINESS STABILIZATION 

12 LOANS. 

13 Section 506(d) of title V of division A of the Amer14 ican Recovery and Reinvestment Act of 2009 (Public Law 

15 111–5) is amended by striking ‘‘$35,000’’ and inserting 

16 ‘‘$50,000’’. 

17 SEC. 19. EXTENSION OF BUSINESS STABILIZATION LOANS. 

18 Section 506(j) of title V of division A of the American 

19 Recovery and Reinvestment Act of 2009 (Public Law 111– 

20 5) is amended by striking ‘‘September 30, 2010’’ and in21 serting ‘‘September 30, 2011’’. 


jbell on DSKDVH8Z91PROD with BILLS
25 

•HR 3723 IH

1 SEC. 20. SBA SECONDARY MARKET LENDING AUTHORITY 

2 MADE PERMANENT. 

3 Section 509 of title V of division A of the American 

4 Recovery and Reinvestment Act of 2009 (Public Law 111– 

5 5) is amended— 

6 (1) by striking subsection (e); and 

7 (2) by redesignating subsections (f), (h), and (i) 

8 as subsections (e), (f), and (g), respectively. 

9 SEC. 21. SBA SECONDARY MARKET LENDING AUTHORITY 

10 EXPANDED. 

11 Section 509 of title V of division A of the American 

12 Recovery and Reinvestment Act of 2009 (Public Law 111– 

13 5), as amended by this Act, is further amended— 

14 (1) in subsection (c)(1) by adding at the end 

15 the following: ‘‘Such process shall include the des16 ignation of each lender participating in a program 

17 under section 7(a) of the Small Business Act as a 

18 Systematically Important Secondary Market Broker19 Dealer for purposes of this section.’’; and 

20 (2) in subsection (e), as so redesignated by sec21 tion 20 of this Act, by adding at the end the fol22 lowing: ‘‘To the extent that the cost of an elimi23 nation or reduction of fees is offset by appropria24 tions, the Administrator shall in lieu of the fee oth25 erwise applicable under this subsection collect no fee 

26 or reduce fees to the maximum extent possible.’’. 


jbell on DSKDVH8Z91PROD with BILLS
26 

•HR 3723 IH

1 SEC. 22. INCREASED LOAN LIMITS. 

2 Section 7(a) of the Small Business Act (15 U.S.C. 

3 636(a)), as amended by this Act, is further amended— 

4 (1) in paragraph (2)(A)— 

5 (A) in clause (i)— 

6 (i) by inserting after ‘‘$150,000’’ the 

7 following: ‘‘and is less than or equal to 

8 $2,000,000’’; and 

9 (ii) by striking ‘‘or’’ at the end; 

10 (B) in clause (ii) by striking the period at 

11 the end and inserting ‘‘; or’’; and 

12 (C) by adding at the end the following: 

13 ‘‘(iii) 50 percent of the balance of the 

14 financing outstanding at the time of dis15 bursement of the loan, if such balance ex16 ceeds $2,000,000.’’; and 

17 (2) in paragraph (3)(A) by striking 

18 ‘‘$2,000,000’’ and inserting ‘‘$3,000,000’’. 

19 SEC. 23. REAL ESTATE APPRAISALS. 

20 Section 7(a)(29) of the Small Business Act (15 

21 U.S.C. 636(a)(29)) is amended— 

22 (1) in the matter preceding subparagraph (A) 

23 by striking ‘‘a State licensed or certified appraiser’’ 

24 and inserting ‘‘an appraiser licensed or certified by 

25 the State in which such property is located’’; 


jbell on DSKDVH8Z91PROD with BILLS
27 

•HR 3723 IH

1 (2) in subparagraph (A) by striking 

2 ‘‘$250,000’’ and inserting ‘‘$400,000’’; and 

3 (3) in subparagraph (B) by striking 

4 ‘‘$250,000’’ and inserting ‘‘$400,000’’. 

5 SEC. 24. ADDITIONAL SUPPORT FOR EXPRESS LOAN PRO6 GRAM. 

7 Section 7(a)(18)(B) of the Small Business Act (15 

8 U.S.C. 636(a)(18)(B)) is amended by adding after ‘‘under 

9 subparagraph (A)(i)’’ the following: ‘‘, except that a lender 

10 making a loan under paragraph (31) may not retain any 

11 percentage of a fee collected under such subparagraph’’. 

12 SEC. 25. AUTHORIZATION OF APPROPRIATIONS. 

13 Section 20 of the Small Business Act (15 U.S.C. 631 

14 note) is amended by inserting after subsection (e) the fol15 lowing: 

16 ‘‘(f) FISCAL YEARS 2010 AND 2011.— 

17 ‘‘(1) PROGRAM LEVELS.—For the programs au18 thorized by this Act, in each of fiscal years 2010 and 

19 2011 commitments for general business loans au20 thorized under section 7(a) may not exceed 

21 $20,000,000,000. 

22 ‘‘(2) AUTHORIZATION OF APPROPRIATIONS.— 

23 There are authorized to be appropriated such sums 

24 as may be necessary to carry out paragraph (1).’’. 


jbell on DSKDVH8Z91PROD with BILLS
28 

•HR 3723 IH

1 SEC. 26. REGULATIONS. 

2 After an opportunity for notice and comment, but not 

3 later than 180 days after the date of the enactment of 

4 this Act, the Administrator shall issue regulations to carry 

5 out this Act and the amendments made by this Act. 

Æ 


jbell on DSKDVH8Z91PROD with BILLS