I 

111TH CONGRESS 

1ST SESSION H. R. 4302 

To increase loan limits for small business concerns, to provide for low interest 

refinancing for small business concerns, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 14, 2009 

Mr. ABERCROMBIE (for himself and Mrs. LOWEY) introduced the following 

bill; which was referred to the Committee on Small Business 

A BILL 

To increase loan limits for small business concerns, to provide for low interest refinancing for small business concerns, 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 Job 

5 Creation and Access to Capital Act of 2009’’. 

6 TITLE I—NEXT STEPS FOR MAIN 

7 STREET CREDIT AVAILABILITY 

8 SEC. 101. SECTION 7(a) BUSINESS LOANS. 

9 (a) AMENDMENT.—Section 7(a) of the Small Busi10 ness Act (15 U.S.C. 636(a)) is amended— 


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1 (1) in paragraph (2)(A)— 

2 (A) in clause (i), by striking ‘‘75 percent’’ 

3 and inserting ‘‘90 percent’’; and 

4 (B) in clause (ii), by striking ‘‘85 percent’’ 

5 and inserting ‘‘90 percent’’; and 

6 (2) in paragraph (3)(A), by striking 

7 ‘‘$1,500,000 (or if the gross loan amount would ex8 ceed $2,000,000’’ and inserting ‘‘$4,500,000 (or if 

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

10 (b) PROSPECTIVE REPEAL.—Effective January 1, 

11 2011, section 7(a) of the Small Business Act (15 U.S.C. 

12 636(a)) is amended— 

13 (1) in paragraph (2)(A)— 

14 (A) in clause (i), by striking ‘‘90 percent’’ 

15 and inserting ‘‘75 percent’’; and 

16 (B) in clause (ii), by striking ‘‘90 percent’’ 

17 and inserting ‘‘85 percent’’; and 

18 (2) in paragraph (3)(A), by striking 

19 ‘‘$4,500,000’’ and inserting ‘‘$3,750,000’’. 

20 SEC. 102. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM. 

21 Section 502(2)(A) of the Small Business Investment 

22 Act of 1958 (15 U.S.C. 696(2)(A)) is amended— 

23 (1) in clause (i), by striking ‘‘$1,500,000’’ and 

24 inserting ‘‘$5,000,000’’; 


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1 (2) in clause (ii), by striking ‘‘$2,000,000’’ and 

2 inserting ‘‘$5,000,000’’; 

3 (3) in clause (iii), by striking ‘‘$4,000,000’’ and 

4 inserting ‘‘$5,500,000’’; 

5 (4) in clause (iv), by striking ‘‘$4,000,000’’ and 

6 inserting ‘‘$5,500,000’’; and 

7 (5) in clause (v), by striking ‘‘$4,000,000’’ and 

8 inserting ‘‘$5,500,000’’. 

9 SEC. 103. MAXIMUM LOAN LIMITS UNDER MICROLOAN PRO10 GRAM. 

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

12 636(m)) is amended— 

13 (1) in paragraph (1)(B)(iii), by striking 

14 ‘‘$35,000’’ and inserting ‘‘$50,000’’; 

15 (2) in paragraph (3)— 

16 (A) in subparagraph (C), by striking 

17 ‘‘$3,500,000’’ and inserting ‘‘$5,000,000’’; and 

18 (B) in subparagraph (E), by striking 

19 ‘‘$35,000’’ each place that term appears and 

20 inserting ‘‘$50,000’’; and 

21 (3) in paragraph (11)(B), by striking 

22 ‘‘$35,000’’ and inserting ‘‘$50,000’’. 

23 SEC. 104. TEMPORARY FEE REDUCTIONS. 

24 Section 501 of the American Recovery and Reinvest25 ment Act of 2009 (Public Law 111–5; 123 Stat. 151) is 


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1 amended by striking ‘‘September 30, 2010’’ each place 

2 that term appears and inserting ‘‘December 31, 2010’’. 

3 SEC. 105. NEW MARKETS VENTURE CAPITAL COMPANY IN4 VESTMENT LIMITATIONS. 

5 Section 355 of the Small Business Investment Act 

6 of 1958 (15 U.S.C. 689d) is amended by adding at the 

7 end the following: 

8 ‘‘(e) INVESTMENT LIMITATIONS.— 

9 ‘‘(1) DEFINITION.—In this subsection, the term 

10 ‘covered New Markets Venture Capital company’ 

11 means a New Markets Venture Capital company— 

12 ‘‘(A) granted final approval by the Admin13 istrator under section 354(e) on or after March 

14 1, 2002; and 

15 ‘‘(B) that has obtained a financing from 

16 the Administrator. 

17 ‘‘(2) LIMITATION.—Except to the extent ap18 proved by the Administrator, a covered New Markets 

19 Venture Capital company may not acquire or issue 

20 commitments for securities under this title for any 

21 single enterprise in an aggregate amount equal to 

22 more than 10 percent of the sum of— 

23 ‘‘(A) the regulatory capital of the covered 

24 New Markets Venture Capital company; and 


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1 ‘‘(B) the total amount of leverage pro2 jected in the participation agreement of the cov3 ered New Markets Venture Capital.’’. 

4 SEC. 106. ALTERNATIVE SIZE STANDARDS. 

5 Section 3(a) of the Small Business Act (15 U.S.C. 

6 632(a)) is amended by adding at the end the following: 

7 ‘‘(5) ALTERNATIVE SIZE STANDARD.— 

8 ‘‘(A) IN GENERAL.—The Administrator shall 

9 establish an alternative size standard for applicants 

10 for business loans under section 7(a) and applicants 

11 for development company loans under title V of the 

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

13 695 et seq.), that uses maximum tangible net worth 

14 and average net income as an alternative to the use 

15 of industry standards. 

16 ‘‘(B) INTERIM RULE.—Until the date on which 

17 the alternative size standard established under sub18 paragraph (A) is in effect, an applicant for a busi19 ness loan under section 7(a) or an applicant for a 

20 development company loan under title V of the 

21 Small Business Investment Act of 1958 may be eli22 gible for such a loan if— 

23 ‘‘(i) the maximum tangible net worth of 

24 the applicant is not more than $15,000,000; 

25 and 


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1 ‘‘(ii) the average net income after Federal 

2 income taxes (excluding any carry-over losses) 

3 of the applicant for the 2 full fiscal years before 

4 the date of the application is not more than 

5 $5,000,000.’’. 

6 SEC. 107. SALE OF 7(a) LOANS IN SECONDARY MARKET. 

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

8 634(g)) is amended by adding at the end the following: 

9 ‘‘(6) If the amount of the guaranteed portion of any 

10 loan under section 7(a) is more than $500,000, the Ad11 ministrator shall, upon request of a pool assembler, divide 

12 the loan guarantee into increments of $500,000 and 1 in13 crement of any remaining amount less than $500,000, in 

14 order to permit the maximum amount of any loan in a 

15 pool to be not more than $500,000. Only 1 increment of 

16 any loan guarantee divided under this paragraph may be 

17 included in the same pool. Increments of loan guarantees 

18 to different borrowers that are divided under this para19 graph may be included in the same pool.’’. 

20 SEC. 108. ONLINE LENDING PLATFORM. 

21 It is the sense of the Congress that the Administrator 

22 of the Small Business Administration should establish a 

23 website that— 

24 (1) lists each lender that makes loans guaran25 teed by the Small Business Administration and proVerDate Nov 24 2008 21:11 Dec 15, 2009 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4302.IH H4302

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1 vides information about the loan rates of each such 

2 lender; and 

3 (2) allows prospective borrowers to compare 

4 rates on loans guaranteed by the Small Business 

5 Administration. 

6 TITLE II—SMALL BUSINESS 

7 ACCESS TO CAPITAL 

8 SEC. 201. LOW-INTEREST REFINANCING UNDER THE LOCAL 

9 DEVELOPMENT BUSINESS LOAN PROGRAM. 

10 (a) REFINANCING.—Section 502(7) of the Small 

11 Business Investment Act of 1958 (15 U.S.C. 696(7)) is 

12 amended by adding at the end the following: 

13 ‘‘(C) REFINANCING NOT INVOLVING EX14 PANSIONS.— 

15 ‘‘(i) DEFINITIONS.—In this subpara16 graph— 

17 ‘‘(I) the term ‘borrower’ means a 

18 small business concern that submits 

19 an application to a development com20 pany for financing under this sub21 paragraph; 

22 ‘‘(II) the term ‘eligible fixed 

23 asset’ means tangible property relat24 ing to which the Administrator may 


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1 provide financing under this section; 

2 and 

3 ‘‘(III) the term ‘qualified debt’ 

4 means indebtedness— 

5 ‘‘(aa) that— 

6 ‘‘(AA) was incurred not 

7 less than 2 years before the 

8 date of the application for 

9 assistance under this sub10 paragraph; 

11 ‘‘(BB) is a commercial 

12 loan; 

13 ‘‘(CC) is not subject to 

14 a guarantee by a Federal 

15 agency; 

16 ‘‘(DD) the proceeds of 

17 which were used to acquire 

18 an eligible fixed asset; 

19 ‘‘(EE) was incurred for 

20 the benefit of the small busi21 ness concern; and 

22 ‘‘(FF) is collateralized 

23 by eligible fixed assets; and 

24 ‘‘(bb) for which the borrower 

25 has been current on all payments 


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1 for not less than 1 year before 

2 the date of the application. 

3 ‘‘(ii) AUTHORITY.—A project that 

4 does not involve the expansion of a small 

5 business concern may include the refi6 nancing of qualified debt if— 

7 ‘‘(I) the amount of the financing 

8 is not more than 80 percent of the 

9 value of the collateral for the financ10 ing, except that, if the appraised value 

11 of the eligible fixed assets serving as 

12 collateral for the financing is less than 

13 the amount equal to 125 percent of 

14 the amount of the financing, the bor15 rower may provide additional cash or 

16 other collateral to eliminate any defi17 ciency; 

18 ‘‘(II) the borrower has been in 

19 operation for all of the 2-year period 

20 ending on the date of the loan; and 

21 ‘‘(III) for a financing for which 

22 the Administrator determines there 

23 will be an additional cost attributable 

24 to the refinancing of the qualified 

25 debt, the borrower agrees to pay a fee 


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1 in an amount equal to the anticipated 

2 additional cost. 

3 ‘‘(iii) FINANCING FOR BUSINESS EX4 PENSES.— 

5 ‘‘(I) FINANCING FOR BUSINESS

6 EXPENSES.—The Administrator may 

7 provide financing to a borrower that 

8 receives financing that includes a refi9 nancing of qualified debt under clause 

10 (ii), in addition to the refinancing 

11 under clause (ii), to be used solely for 

12 the payment of business expenses. 

13 ‘‘(II) APPLICATION FOR FINANC14 ING.—An application for financing 

15 under subclause (I) shall include— 

16 ‘‘(aa) a specific description 

17 of the expenses for which the ad18 ditional financing is requested; 

19 and 

20 ‘‘(bb) an itemization of the 

21 amount of each expense. 

22 ‘‘(III) CONDITION ON ADDI23 TIONAL FINANCING.—A borrower may 

24 not use any part of the financing 


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1 under this clause for non-business 

2 purposes. 

3 ‘‘(iv) LOANS BASED ON JOBS.— 

4 ‘‘(I) JOB CREATION AND RETEN5 TION GOALS.— 

6 ‘‘(aa) IN GENERAL.—The 

7 Administrator may provide fi8 nancing under this subparagraph 

9 for a borrower that meets the job 

10 creation goals under subsection 

11 (d) or (e) of section 501. 

12 ‘‘(bb) ALTERNATE JOB RE13 TENTION GOAL.—The Adminis14 trator may provide financing 

15 under this subparagraph to a 

16 borrower that does not meet the 

17 goals described in item (aa) in an 

18 amount that is not more than the 

19 product obtained by multiplying 

20 the number of employees of the 

21 borrower by $65,000. 

22 ‘‘(II) NUMBER OF EMPLOYEES.— 

23 For purposes of subclause (I), the 

24 number of employees of a borrower is 

25 equal to the sum of— 


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1 ‘‘(aa) the number of full2 time employees of the borrower 

3 on the date on which the bor4 rower applies for a loan under 

5 this subparagraph; and 

6 ‘‘(bb) the product obtained 

7 by multiplying— 

8 ‘‘(AA) the number of 

9 part-time employees of the 

10 borrower on the date on 

11 which the borrower applies 

12 for a loan under this sub13 paragraph; by 

14 ‘‘(BB) the quotient ob15 tained by dividing the aver16 age number of hours each 

17 part time employee of the 

18 borrower works each week 

19 by 40. 

20 ‘‘(v) NONDELEGATION.—Notwith21 standing section 508(e), the Administrator 

22 may not permit a premier certified lender 

23 to approve or disapprove an application for 

24 assistance under this subparagraph. 


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1 ‘‘(vi) TOTAL AMOUNT OF LOANS.— 

2 The Administrator may provide not more 

3 than a total of $4,000,000,000 of financ4 ing under this subparagraph for each fiscal 

5 year.’’. 

6 (b) PROSPECTIVE REPEAL.—Effective 2 years after 

7 the date of the enactment of this Act, section 502(7) of 

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

9 696(7)) is amended by striking subparagraph (C). 

10 (c) TECHNICAL CORRECTION.—Section 502(2)(A)(i) 

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

12 696(2)(A)(i)) is amended by striking ‘‘subparagraph (B) 

13 or (C)’’ and inserting ‘‘clause (ii), (iii), (iv), or (v)’’. 

Æ 


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