II 

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. 

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 ‘‘Greater Accountability 

5 in the Lending Fund Act of 2011’’. 

6 SEC. 2. REPAYMENT DEADLINE UNDER THE SMALL BUSI7 NESS LENDING FUND PROGRAM. 

8 (a) IN GENERAL.—Section 4103(d)(5)(H) of the 

9 Small Business Jobs Act of 2010 (12 U.S.C. 4741 note) 

10 is amended— 

11 (1) in clause (i)— 


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1 (A) in subclause (I), by striking ‘‘; or’’ and 

2 inserting a period; 

3 (B) by striking subclause (II); and 

4 (C) by striking ‘‘will—’’ and all that fol5 lows through ‘‘be repaid’’ and inserting ‘‘will be 

6 repaid’’; 

7 (2) by striking clause (ii); and 

8 (3) by striking ‘‘that—’’ and all that follows 

9 through ‘‘includes,’’ and inserting ‘‘that includes,’’. 

10 (b) EFFECTIVE DATE; APPLICABILITY; SAVINGS

11 CLAUSE.— 

12 (1) EFFECTIVE DATE; APPLICABILITY.—The 

13 amendments made by this section shall— 

14 (A) take effect on the date of enactment of 

15 this Act; and 

16 (B) apply to any investment made by the 

17 Secretary of the Treasury under the Small 

18 Business Lending Fund Program established 

19 under section 4103(a)(2) of the Small Business 

20 Jobs Act of 2010 (12 U.S.C. 4741 note) (in 

21 this subsection referred to as the ‘‘Program’’) 

22 on or after the date of enactment of this Act. 

23 (2) SAVINGS CLAUSE.—Notwithstanding the 

24 amendments made by this section, an investment 

25 made by the Secretary of the Treasury under the 


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1 Program before the date of enactment of this Act 

2 shall remain in full force and effect under the terms 

3 and conditions under the investment. 

4 SEC. 3. SMALL BUSINESS LENDING FUND SUNSET. 

5 Section 4109 of the Small Business Jobs Act of 2010 

6 (12 U.S.C. 4741 note) is amended— 

7 (1) in subsection (b), by inserting ‘‘and shall be 

8 limited by the termination date in subsection (c)’’ 

9 before the period at the end; and 

10 (2) by adding at the end the following: 

11 ‘‘(c) TERMINATION OF PROGRAM.— 

12 ‘‘(1) INVESTMENTS.—On and after the date 

13 that is 15 years after the date of enactment of this 

14 Act, the Federal Government may not own any pre15 ferred stock or other financial instrument purchased 

16 under this subtitle or otherwise maintain any capital 

17 investment in an eligible institution made under this 

18 subtitle. 

19 ‘‘(2) AUTHORITIES.—Except as provided in 

20 subsection (a), all the authorities provided under 

21 this subtitle shall terminate 15 years after the date 

22 of enactment of this Act.’’. 


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1 SEC. 4. SMALL BUSINESS LENDING FUND TRIGGER. 

2 Section 4109 of the Small Business Jobs Act of 2010 

3 (12 U.S.C. 4741 note), as amended by section 3, is 

4 amended by adding at the end the following: 

5 ‘‘(d) FDIC RECEIVERSHIP.—The Secretary may not 

6 make any purchases, including commitments to purchase, 

7 under this subtitle if the Federal Deposit Insurance Cor8 poration is appointed receiver of 5 percent or more of the 

9 number of eligible institutions that receive a capital invest10 ment under the Program.’’. 

11 SEC. 5. SMALL BUSINESS LENDING FUND LIMITATION. 

12 (a) IN GENERAL.—Section 4103(d) of the Small 

13 Business Jobs Act of 2010 (12 U.S.C. 4741 note) is 

14 amended— 

15 (1) by striking ‘‘, less the amount of any CDCI 

16 investment and any CPP investment’’ each place it 

17 appears; 

18 (2) by striking paragraph (7); 

19 (3) by redesignating paragraphs (8), (9), and 

20 (10) as paragraphs (7), (8), and (9), respectively; 

21 and 

22 (4) by adding at the end the following: 

23 ‘‘(10) PROHIBITION ON TARP PARTICIPANTS

24 PARTICIPATING IN THE PROGRAM.—An institution in 

25 which the Secretary made a investment under the 

26 CPP, the CDCI, or any other program established 


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1 by the Secretary under the Troubled Asset Relief 

2 Program established under the Emergency Economic 

3 Stabilization Act of 2008 (12 U.S.C. 5201 et seq.) 

4 shall not be eligible to participate in the Program.’’. 

5 (b) EFFECTIVE DATE; APPLICABILITY; SAVINGS

6 CLAUSE.— 

7 (1) EFFECTIVE DATE; APPLICABILITY.—The 

8 amendments made by this section shall— 

9 (A) take effect on the date of enactment of 

10 this Act; and 

11 (B) apply to any investment made by the 

12 Secretary of the Treasury under the Small 

13 Business Lending Fund Program established 

14 under section 4103(a)(2) of the Small Business 

15 Jobs Act of 2010 (12 U.S.C. 4741 note) (in 

16 this subsection referred to as the ‘‘Program’’) 

17 on or after the date of enactment of this Act. 

18 (2) SAVINGS CLAUSE.—Notwithstanding the 

19 amendments made by this section, an investment 

20 made by the Secretary of the Treasury under the 

21 Program before the date of enactment of this Act 

22 shall remain in full force and effect under the terms 

23 and conditions under the investment. 


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1 SEC. 6. PRIVATE INVESTMENTS UNDER THE SMALL BUSI2 NESS LENDING FUND PROGRAM. 

3 Section 4103(d)(3) of the Small Business Jobs Act 

4 of 2010 (12 U.S.C. 4741 note) is amended— 

5 (1) in the paragraph heading, by striking 

6 ‘‘MATCHED’’; and 

7 (2) in subparagraph (B)(i), by striking ‘‘both 

8 under the Program and’’. 

9 SEC. 7. APPROVAL OF REGULATORS. 

10 (a) IN GENERAL.—Section 4103(d)(2) of the Small 

11 Business Jobs Act of 2010 (12 U.S.C. 4741 note) is 

12 amended— 

13 (1) in the paragraph heading, by striking 

14 ‘‘CONSULTATION WITH’’ and inserting ‘‘APPROVAL

15 OF’’; 

16 (2) in the matter preceding subparagraph (A), 

17 by striking ‘‘the Secretary shall’’ and inserting ‘‘the 

18 Secretary may not make a purchase under this sub19 title unless’’; 

20 (3) in subparagraph (A)— 

21 (A) by striking ‘‘consult with’’; and 

22 (B) by striking ‘‘to determine whether the 

23 eligible institution may receive’’ and inserting 

24 ‘‘determines that, based on the financial condi25 tion of the eligible institution, the eligible insti26 tution should receive’’; 


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1 (4) in subparagraph (B)— 

2 (A) by striking ‘‘consider any views re3 ceived from’’; and 

4 (B) by striking ‘‘regarding the financial 

5 condition of the eligible institution’’ and insert6 ing ‘‘determines that, based on the financial 

7 condition of the eligible institution, the eligible 

8 institution should receive such capital invest9 ment’’; and 

10 (5) in subparagraph (C)— 

11 (A) by striking ‘‘consult with’’; and 

12 (B) by inserting ‘‘determines that, based 

13 on the financial condition of the eligible institu14 tion, the eligible institution should receive such 

15 capital investment’’ before the period at the 

16 end. 

17 (b) CONFORMING AMENDMENTS.—Section 

18 4103(d)(3)(A) of the Small Business Jobs Act of 2010 

19 (12 U.S.C. 4741 note) is amended— 

20 (1) by striking ‘‘to be consulted under para21 graph (2) would not otherwise recommend’’ and in22 serting ‘‘required to make a determination under 

23 paragraph (2) does not approve’’; 

24 (2) by striking ‘‘to be so consulted’’; and 


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1 (3) by striking ‘‘to be consulted would rec2 ommend’’ and insert ‘‘would approve’’. 

3 SEC. 8. BENCHMARK FOR SMALL BUSINESS LENDING. 

4 Section 4103(d)(5)(A)(ii) of the Small Business Jobs 

5 Act of 2010 (12 U.S.C. 4741 note) is amended by striking 

6 ‘‘for the 4 full quarters immediately preceding the date 

7 of enactment of this Act’’ and inserting ‘‘during calendar 

8 year 2007’’. 

Æ 


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