I 

111TH CONGRESS 

1ST SESSION H. R. 4295 

To direct the Administrator of the Small Business Administration to establish 

and carry out a program to provide loans directly to small business 

concerns, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 11, 2009 

Mr. COURTNEY introduced the following bill; which was referred to the 

Committee on Small Business 

A BILL 

To direct the Administrator of the Small Business Administration to establish and carry out a program to provide 

loans directly to 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 Emer5 gency Capital Assistance Act of 2009’’. 

6 SEC. 2. SMALL BUSINESS DIRECT LENDING PROGRAM. 

7 (a) ESTABLISHMENT.—The Administrator of the 

8 Small Business Administration shall establish and carry 


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1 out a program under which the Administrator is author2 ized to make loans directly to eligible small business con3 cerns (in this section referred to as the ‘‘program’’). 

4 (b) ADMINISTRATION.—Except as otherwise provided 

5 under this section and to the extent practicable, the Ad6 ministrator of the Small Business Administration shall 

7 carry out the program— 

8 (1) using the administrative resources of the 

9 Small Business Administration; and 

10 (2) in a manner similar to the loan program 

11 under section 7(a) of the Small Business Act (15 

12 U.S.C. 636(a)). 

13 (c) USE OF LOAN FUNDS.—Amounts from a loan 

14 made under the program may be used by a small business 

15 concern for the operation or expansion of such concern 

16 or for any other purpose allowed under section 7(a) of the 

17 Small Business Act (15 U.S.C. 636(a)). 

18 (d) LOAN AMOUNT.—The maximum amount of a 

19 loan made under the program shall be $1,500,000. 

20 (e) LOAN TERM.—The maximum term for repayment 

21 of a loan made under the program shall be 25 years. 

22 (f) LOAN INTEREST RATE.—The interest rate with 

23 respect to a loan made under the program shall be the 

24 sum of— 

25 (1) 4.75 percent; and 


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1 (2) the prime rate (as determined by the Ad2 ministrator of the Small Business Administration). 

3 (g) ACCOUNTABILITY.— 

4 (1) SBA REPORTS.—Not later than 30 days 

5 after the date of enactment of this Act and every 

6 month thereafter, the Administrator of the Small 

7 Business Administration shall submit to the Com8 mittee on Small Business of the House of Rep9 resentatives and the Committee on Small Business 

10 and Entrepreneurship of the Senate a report de11 scribing— 

12 (A) the number of loans made under the 

13 program; 

14 (B) the amounts of loans made under the 

15 program; 

16 (C) the uses of loans made under the pro17 gram; 

18 (D) repayment progress with respect to 

19 loans made under the program; 

20 (E) the default rate with respect to loans 

21 made under the program; and 

22 (F) other relevant information with respect 

23 to the program. 

24 (2) GAO REPORTS.— 


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1 (A) REVIEW.—The Comptroller General of 

2 the United States shall conduct a review of the 

3 program to evaluate the effectiveness of the 

4 program and identify any waste or abuse relat5 ing to the program. 

6 (B) REPORTS.—Not later than 90 days 

7 after the date of enactment of this Act and 

8 quarterly thereafter, the Comptroller General 

9 shall submit to the Committee on Small Busi10 ness of the House of Representatives and the 

11 Committee on Small Business and Entrepre12 neurship of the Senate a report describing the 

13 results of the review conducted under subpara14 graph (A). 

15 (h) DEFINITIONS.—In this section, the following defi16 nitions apply: 

17 (1) ELIGIBLE SMALL BUSINESS CONCERN.— 

18 The term ‘‘eligible small business concern’’ means a 

19 small business concern that the Administrator of the 

20 Small Business Administration determines— 

21 (A) is economically healthy; 

22 (B) has good credit; and 

23 (C) is unable to obtain a loan on reason24 able terms from a non-Federal source (which 

25 may be demonstrated with respect to a small 


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1 business concern by evidence that a lender dis2 continued a line of credit of such concern not3 withstanding the good credit of such concern). 

4 (2) SMALL BUSINESS CONCERN.—The term 

5 ‘‘small business concern’’ has the meaning given 

6 such term under section 3(a) of the Small Business 

7 Act (15 U.S.C. 632(a)). 

8 (i) AUTHORIZATION OF APPROPRIATIONS.—There is 

9 authorized to be appropriated to the Administrator of the 

10 Small Business Administration $10,000,000,000 to carry 

11 out the program, including the hiring of necessary per12 sonnel. 

13 (j) TERMINATION.—The program shall terminate on 

14 the date that is 2 years after the date of enactment of 

15 this Act. 

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