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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 681 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 681

 To provide greater accountability in the Small Business Lending Fund.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 30, 2011

   Ms. Snowe introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL

 
 To provide greater accountability in the Small Business Lending Fund.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Greater Accountability in the 
Lending Fund Act of 2011''.

SEC. 2. REPAYMENT DEADLINE UNDER THE SMALL BUSINESS LENDING FUND 
              PROGRAM.

    (a) In General.--Section 4103(d)(5)(H) of the Small Business Jobs 
Act of 2010 (12 U.S.C. 4741 note) is amended--
            (1) in clause (i)--
                    (A) in subclause (I), by striking ``; or'' and 
                inserting a period;
                    (B) by striking subclause (II); and
                    (C) by striking ``will--'' and all that follows 
                through ``be repaid'' and inserting ``will be repaid'';
            (2) by striking clause (ii); and
            (3) by striking ``that--'' and all that follows through 
        ``includes,'' and inserting ``that includes,''.
    (b) Effective Date; Applicability; Savings Clause.--
            (1) Effective date; applicability.--The amendments made by 
        this section shall--
                    (A) take effect on the date of enactment of this 
                Act; and
                    (B) apply to any investment made by the Secretary 
                of the Treasury under the Small Business Lending Fund 
                Program established under section 4103(a)(2) of the 
                Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) 
                (in this subsection referred to as the ``Program'') on 
                or after the date of enactment of this Act.
            (2) Savings clause.--Notwithstanding the amendments made by 
        this section, an investment made by the Secretary of the 
        Treasury under the Program before the date of enactment of this 
        Act shall remain in full force and effect under the terms and 
        conditions under the investment.

SEC. 3. SMALL BUSINESS LENDING FUND SUNSET.

    Section 4109 of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 
note) is amended--
            (1) in subsection (b), by inserting ``and shall be limited 
        by the termination date in subsection (c)'' before the period 
        at the end; and
            (2) by adding at the end the following:
    ``(c) Termination of Program.--
            ``(1) Investments.--On and after the date that is 15 years 
        after the date of enactment of this Act, the Federal Government 
        may not own any preferred stock or other financial instrument 
        purchased under this subtitle or otherwise maintain any capital 
        investment in an eligible institution made under this subtitle.
            ``(2) Authorities.--Except as provided in subsection (a), 
        all the authorities provided under this subtitle shall 
        terminate 15 years after the date of enactment of this Act.''.

SEC. 4. SMALL BUSINESS LENDING FUND TRIGGER.

    Section 4109 of the Small Business Jobs Act of 2010 (12 U.S.C. 4741 
note), as amended by section 3, is amended by adding at the end the 
following:
    ``(d) FDIC Receivership.--The Secretary may not make any purchases, 
including commitments to purchase, under this subtitle if the Federal 
Deposit Insurance Corporation is appointed receiver of 5 percent or 
more of the number of eligible institutions that receive a capital 
investment under the Program.''.

SEC. 5. SMALL BUSINESS LENDING FUND LIMITATION.

    (a) In General.--Section 4103(d) of the Small Business Jobs Act of 
2010 (12 U.S.C. 4741 note) is amended--
            (1) by striking ``, less the amount of any CDCI investment 
        and any CPP investment'' each place it appears;
            (2) by striking paragraph (7);
            (3) by redesignating paragraphs (8), (9), and (10) as 
        paragraphs (7), (8), and (9), respectively; and
            (4) by adding at the end the following:
            ``(10) Prohibition on tarp participants participating in 
        the program.--An institution in which the Secretary made a 
        investment under the CPP, the CDCI, or any other program 
        established by the Secretary under the Troubled Asset Relief 
        Program established under the Emergency Economic Stabilization 
        Act of 2008 (12 U.S.C. 5201 et seq.) shall not be eligible to 
        participate in the Program.''.
    (b) Effective Date; Applicability; Savings Clause.--
            (1) Effective date; applicability.--The amendments made by 
        this section shall--
                    (A) take effect on the date of enactment of this 
                Act; and
                    (B) apply to any investment made by the Secretary 
                of the Treasury under the Small Business Lending Fund 
                Program established under section 4103(a)(2) of the 
                Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) 
                (in this subsection referred to as the ``Program'') on 
                or after the date of enactment of this Act.
            (2) Savings clause.--Notwithstanding the amendments made by 
        this section, an investment made by the Secretary of the 
        Treasury under the Program before the date of enactment of this 
        Act shall remain in full force and effect under the terms and 
        conditions under the investment.

SEC. 6. PRIVATE INVESTMENTS UNDER THE SMALL BUSINESS LENDING FUND 
              PROGRAM.

    Section 4103(d)(3) of the Small Business Jobs Act of 2010 (12 
U.S.C. 4741 note) is amended--
            (1) in the paragraph heading, by striking ``matched''; and
            (2) in subparagraph (B)(i), by striking ``both under the 
        Program and''.

SEC. 7. APPROVAL OF REGULATORS.

    (a) In General.--Section 4103(d)(2) of the Small Business Jobs Act 
of 2010 (12 U.S.C. 4741 note) is amended--
            (1) in the paragraph heading, by striking ``Consultation 
        with'' and inserting ``Approval of'';
            (2) in the matter preceding subparagraph (A), by striking 
        ``the Secretary shall'' and inserting ``the Secretary may not 
        make a purchase under this subtitle unless'';
            (3) in subparagraph (A)--
                    (A) by striking ``consult with''; and
                    (B) by striking ``to determine whether the eligible 
                institution may receive'' and inserting ``determines 
                that, based on the financial condition of the eligible 
                institution, the eligible institution should receive'';
            (4) in subparagraph (B)--
                    (A) by striking ``consider any views received 
                from''; and
                    (B) by striking ``regarding the financial condition 
                of the eligible institution'' and inserting 
                ``determines that, based on the financial condition of 
                the eligible institution, the eligible institution 
                should receive such capital investment''; and
            (5) in subparagraph (C)--
                    (A) by striking ``consult with''; and
                    (B) by inserting ``determines that, based on the 
                financial condition of the eligible institution, the 
                eligible institution should receive such capital 
                investment'' before the period at the end.
    (b) Conforming Amendments.--Section 4103(d)(3)(A) of the Small 
Business Jobs Act of 2010 (12 U.S.C. 4741 note) is amended--
            (1) by striking ``to be consulted under paragraph (2) would 
        not otherwise recommend'' and inserting ``required to make a 
        determination under paragraph (2) does not approve'';
            (2) by striking ``to be so consulted''; and
            (3) by striking ``to be consulted would recommend'' and 
        insert ``would approve''.

SEC. 8. BENCHMARK FOR SMALL BUSINESS LENDING.

    Section 4103(d)(5)(A)(ii) of the Small Business Jobs Act of 2010 
(12 U.S.C. 4741 note) is amended by striking ``for the 4 full quarters 
immediately preceding the date of enactment of this Act'' and inserting 
``during calendar year 2007''.
                                 <all>
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