I 

114TH CONGRESS 

2D SESSION H. R. 5144 

To amend the State Small Business Credit Initiative Act of 2010 to help 

small businesses access capital and create jobs by reauthorizing the 

successful State Small Business Credit Initiative and to allow participating States to provide program funds to small businesses for development of affordable housing. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2016 

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

Committee on Financial Services 

A BILL 

To amend the State Small Business Credit Initiative Act 

of 2010 to help small businesses access capital and create jobs by reauthorizing the successful State Small 

Business Credit Initiative and to allow participating 

States to provide program funds to small businesses for 

development of affordable housing. 

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 ‘‘Jumpstart Housing 

5 Opportunities Utilizing Small Enterprises Act of 2016’’ 

6 or the ‘‘Jumpstart HOUSE Act of 2016’’. 


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1 SEC. 2. NEW TRANCHES OF CAPITAL FOR SUCCESSFUL 

2 STATE PROGRAMS. 

3 Section 3003 of the State Small Business Credit Ini4 tiative Act of 2010 (12 U.S.C. 5702) is amended by add5 ing at the end the following: 

6 ‘‘(d) ADDITIONAL ALLOCATION AND COMPETITIVE

7 AWARDS.— 

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

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

10 means a participating State that has certified 

11 to the Secretary that the State has expended, 

12 transferred, or obligated not less than 80 percent of the second 1 13 ⁄3 of the 2010 allocation 

14 transferred to the State under subsection 

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

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

17 ‘‘(i) amounts made available to the 

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

19 paragraph (2)(E); and 

20 ‘‘(ii) amounts made available to the 

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

22 ‘‘(2) ALLOCATION FOR 2010 PARTICIPATING

23 STATES.— 

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

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

26 shall allocate a total of $500,000,000 among elVerDate Sep 11 2014 05:53 May 05, 2016 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5144.IH H5144

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1 igible participating States in the same ratio as 

2 funds were allocated under the 2010 allocation 

3 under subsection (b)(1) among participating 

4 States. 

5 ‘‘(B) APPLICATION.—An eligible partici6 pating State desiring to receive funds allocated 

7 under this paragraph shall submit an applica8 tion— 

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

10 months after the date of enactment of this 

11 subsection; and 

12 ‘‘(ii) in such manner and containing 

13 such information as the Secretary may re14 quire. 

15 ‘‘(C) AVAILABILITY OF ALLOCATED

16 AMOUNT.— 

17 ‘‘(i) IN GENERAL.—Notwithstanding 

18 subsection (c)(1), after an eligible partici19 pating State approved by the Secretary to 

20 receive an allocation under this paragraph 

21 has certified to the Secretary that the eligi22 ble participating State has expended, 

23 transferred, or obligated not less than 80 

percent of the last 1 24 ⁄3 of the 2010 alloca25 tion to the eligible participating State, the 


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1 Secretary shall transfer to the eligible par2 ticipating State the funds allocated to the 

3 eligible participating State under this para4 graph. 

5 ‘‘(ii) EFFECT ON AGREEMENTS.—The 

6 allocation or transfer of funds under this 

7 paragraph to an eligible participating State 

8 shall not be construed to— 

9 ‘‘(I) amend or modify the terms 

10 of the Allocation Agreement entered 

11 into by the eligible participating State 

12 relating to the 2010 allocation; or 

13 ‘‘(II) modify or extend the Allo14 cation Time Period, as defined under 

15 such Allocation Agreement. 

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

17 eligible participating State may use funds 

18 transferred under this paragraph for any pur19 pose authorized under subparagraph (A), (B), 

20 or (C) of subsection (c)(3). 

21 ‘‘(E) TERMINATION OF AVAILABILITY OF

22 AMOUNTS.— 

23 ‘‘(i) IN GENERAL.—If an eligible par24 ticipating State has not certified to the 

25 Secretary that the State has expended, 


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1 transferred, or obligated not less than 80 

percent of the last 1 2 ⁄3 of the 2010 alloca3 tion as of the date that is 2 years after the 

4 date on which the Secretary approves the 

5 eligible participating State to receive an al6 location under this paragraph, any 

7 amounts allocated to the eligible partici8 pating State under this paragraph— 

9 ‘‘(I) may not be transferred to 

10 the eligible participating State under 

11 this paragraph; and 

12 ‘‘(II) shall be available to the 

13 Secretary to make awards under para14 graph (4). 

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

16 the date that is 2 years after the date of 

17 enactment of this subsection, any amounts 

18 allocated under this paragraph to a partici19 pating State that, as of such date, is not 

20 an eligible participating State or to an eli21 gible participating State that did not sub22 mit an application under subparagraph (B) 

23 or was not approved by the Secretary to 

24 receive an allocation under this para25 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 $1,000,000,000 to participating 

12 States and consortiums of participating States 

13 for use for any purpose authorized under sub14 paragraph (A), (B), or (C) 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 this subsection; 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 

24 this paragraph shall be not less than 10 per25 cent. The Secretary may determine what conVerDate Sep 11 2014 05:53 May 05, 2016 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H5144.IH H5144

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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), (B), or (C) of 

9 subsection (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, 2016. 

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 this subsection, the participating State shall submit 


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1 quarterly and annual reports containing the infor2 mation described in, and in accordance with the 

3 deadlines established under, section 3007. 

4 ‘‘(6) ADMINISTRATION AND IMPLEMENTA5 TION.— 

6 ‘‘(A) ADMINISTRATIVE EXPENSES FOR

7 PARTICIPATING STATES.—A participating State 

8 may use not more than 3 percent of the amount 

9 made available to the participating State under 

10 paragraph (2), (3), or (4) for administrative ex11 penses incurred by the participating State in 

12 implementing an approved State program. 

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

14 period beginning on the date of enactment of 

15 this subsection, and notwithstanding any other 

16 provision of law relating to public contracting, 

17 the Secretary may enter into contracts to carry 

18 out this subsection. 

19 ‘‘(C) AMOUNTS NOT ASSISTANCE.—Any 

20 amounts transferred to a participating State 

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

22 considered assistance for purposes of subtitle V 

23 of title 31, United States Code. 

24 ‘‘(D) APPROPRIATION.—There are appro25 priated to the Secretary, out of any funds in 


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1 the Treasury not otherwise appropriated, 

2 $1,500,000,000 to carry out this subsection, in3 cluding to pay reasonable costs of administering 

4 the programs under this subsection, to remain 

5 available until expended. 

6 ‘‘(E) TERMINATION OF SECRETARY’S PRO7 GRAM ADMINISTRATION FUNCTIONS.—The au8 thorities and duties of the Secretary to imple9 ment and administer the program under this 

10 subsection shall terminate at the end of the 8- 

11 year period beginning on the date of enactment 

12 of this subsection.’’. 

13 SEC. 3. SUPPORT FOR AFFORDABLE HOUSING PROJECTS. 

14 Section 3003(c) of the State Small Business Credit 

15 Initiative Act of 2010 (12 U.S.C. 5702(c)) is amended— 

16 (1) in paragraph (3)— 

17 (A) by redesignating subparagraphs (C) 

18 and (D) as subparagraphs (D) and (E), respec19 tively; and 

20 (B) by inserting after subparagraph (B) 

21 the following: 

22 ‘‘(C) to provide funds to small businesses 

23 to be used— 

24 ‘‘(i) to develop, acquire, construct, re25 habilitate, maintain, operate, or manage 


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1 housing projects that provide housing that 

2 is affordable for low- or moderate-income 

3 households, as determined by the Sec4 retary, in consultation with the Secretary 

5 of Housing and Urban Development; 

6 ‘‘(ii) notwithstanding section 220 of 

7 the Cranston-Gonzalez National Affordable 

8 Housing Act (42 U.S.C. 12750) or any 

9 other provision of law, to cover any con10 tribution required under such section or 

11 any matching amount, contribution 

12 amount, or non-Federal share required in 

13 connection with any other Federal grant or 

14 assistance program to provide housing that 

15 is affordable for low- or moderate-income 

16 households; or 

17 ‘‘(iii) for purchasing foreclosed prop18 erties and property being sold by a State 

19 or local government, but only for the use 

20 of such properties for the purposes speci21 fied in clause (i) of this subparagraph;’’; 

22 (2) in paragraph (6)— 

23 (A) in subparagraph (A), by striking 

24 ‘‘and’’ at the end; 


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1 (B) in subparagraph (B), by striking the 

2 period and inserting ‘‘; and’’; and 

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

4 ‘‘(C) the term ‘small business’ has the 

5 meaning given the term ‘small business con6 cern’ under section 3(a) of the Small Business 

7 Act.’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(7) USE OF FUNDS FOR AFFORDABLE HOUS10 ING PURPOSES.—With respect to a participating 

11 State, of amounts transferred under this section to 

12 the State that have not been obligated as of the date 

13 of the enactment of this paragraph, the State shall 

14 use, at a minimum, the lesser of— 

15 ‘‘(A) $2,500,000, and 

16 ‘‘(B) 10 percent of such unobligated 

17 amount, 

18 for the purposes described under paragraph 

19 (3)(C).’’. 

Æ 


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