I 

111TH CONGRESS 

1ST SESSION H. R. 4340 

To require the Secretary of the Treasury to establish a revolving loan fund 

program for certain businesses to facilitate increased lending in the 

United States. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2009 

Mr. DAVIS of Alabama introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To require the Secretary of the Treasury to establish a 

revolving loan fund program for certain businesses to 

facilitate increased lending in the United States. 

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 ‘‘Main Street Survival 

5 Act’’. 

6 SEC. 2. FINDINGS; SENSE OF CONGRESS. 

7 (a) FINDINGS.—The Congress finds the following: 

8 (1) Despite the infusion of hundreds of billions 

9 of dollars to provide liquidity to capital markets, 


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1 many qualified and creditworthy small and medium2 sized businesses continue to face severely constricted 

3 credit markets. 

4 (2) Banks of all sizes have significantly de5 creased lending in, and in some cases withdrawn 

6 completely from, the small and medium-sized busi7 ness credit market. 

8 (3) Available and affordable credit is critical for 

9 the survival of the small and medium-sized busi10 nesses that form the backbone of the economy of the 

11 United States. 

12 (b) SENSE OF THE CONGRESS ON LENDING TO

13 SMALL AND MEDIUM-SIZED BUSINESSES.—It is the sense 

14 of the Congress that the President, acting through the 

15 Secretary of the Treasury, should encourage financial in16 stitutions that have received Federal financial support to 

17 maintain historic levels of lending to small and medium18 sized businesses. 

19 SEC. 3. DEFINITIONS. 

20 In this Act— 

21 (1) the term ‘‘revolving loan fund’’ means the 

22 revolving loan fund established under section 4(b); 

23 and 

24 (2) the term ‘‘Secretary’’ means the Secretary 

25 of the Treasury. 


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1 SEC. 4. MAIN STREET REVOLVING LOAN FUND PROGRAM. 

2 (a) ESTABLISHMENT.—The Secretary shall establish 

3 the Main Street Revolving Loan Fund Program (herein4 after in this Act referred to as the ‘‘program’’) to provide 

5 temporary loans to businesses that meet the size require6 ment under paragraph (1) of subsection (c). 

7 (b) REVOLVING LOAN FUND.— 

8 (1) IN GENERAL.—There is established in the 

9 Treasury a revolving loan fund for the program. 

10 (2) INITIAL TRANSFER.—From dividends paid 

11 by financial institutions that have received financial 

12 assistance provided under title I of the Emergency 

13 Economic Stabilization Act of 2008 (Public Law 

14 110–343; 12 U.S.C. 5211 et seq.), the Secretary 

15 shall transfer and credit $1,000,000,000 to the re16 volving loan fund. 

17 (3) EXPENDITURES.—The Secretary shall use 

18 the amounts in the revolving loan fund to carry out 

19 the program. 

20 (4) DEPOSITS.—The Secretary shall deposit 

21 amounts received as payment on loans provided 

22 under the program into the revolving loan fund. 

23 (c) ELIGIBILITY.— 

24 (1) SIZE REQUIREMENT.—To qualify for a loan 

25 under the program, a business shall have less than 


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1 1,000 full-time equivalent employees at the time of 

2 submission of an application under subsection (d). 

3 (2) CONSIDERATIONS.—The Secretary, through 

4 regulations, shall develop criteria to evaluate and se5 lect businesses for participation in the program, tak6 ing into consideration— 

7 (A) the likelihood that the business con8 cerned will be forced to lay off employees in the 

9 absence of obtaining a loan under such pro10 gram; and 

11 (B) the ability of such businesses to repay 

12 the loan. 

13 (3) AVAILABILITY.—The criteria developed 

14 under paragraph (2) shall be made available on the 

15 official public Web site of the Department of the 

16 Treasury. 

17 (d) APPLICATION.—A business desiring a loan under 

18 the program shall submit an application to the Secretary 

19 at such time, in such manner, and accompanied by such 

20 information as the Secretary may require. 

21 SEC. 5. TERMS. 

22 (a) USE OF FUNDS.—A business receiving a loan 

23 under the program may use the funds to finance the cost 

24 of operations, including— 

25 (1) purchasing and operating equipment; 


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1 (2) paying salaries, wages, and building ex2 penses; and 

3 (3) purchasing inventory or making improve4 ments to enhance productivity. 

5 (b) PROHIBITED USE.—A loan provided under the 

6 program may not be used to significantly expand oper7 ations. 

8 (c) REPAYMENT PERIOD.—A loan provided under the 

9 program shall be made for a period not to exceed 9 

10 months. 

11 (d) MAXIMUM LOAN AMOUNT.—Under the program, 

12 the Secretary may provide not more than a total of 

13 $1,000,000 in loans to a particular business in any fiscal 

14 year. 

15 SEC. 6. ADMINISTRATIVE COSTS. 

16 Not more than $1,000,000 may be used for adminis17 trative costs in any fiscal year to carry out the program. 

18 SEC. 7. REPORT. 

19 (a) IN GENERAL.—The Secretary shall make avail20 able on the official public Web site of the Department of 

21 the Treasury, and submit to Congress— 

22 (1) within 1 year after the date of enactment 

23 of this Act and each year thereafter in which a loan 

24 has been made under the program, an annual re25 port; and 


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1 (2) within 90 days after the end of the 9-month 

2 period following the issuance of the final loan under 

3 the program, a final report. 

4 (b) DETAILS.—Each report shall provide details on 

5 loans provided under the program and the effectiveness 

6 of such program in providing stability for, and otherwise 

7 supporting, businesses. 

8 SEC. 8. REGULATIONS. 

9 The Secretary may prescribe regulations necessary to 

10 carry out this Act. 

11 SEC. 9. SUNSET. 

12 An application for a loan under the program may not 

13 be accepted after the date which is 3 years after the date 

14 of enactment of this Act. 

Æ 


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