I 

111TH CONGRESS 

2D SESSION H. R. 6219 

To amend the Small Business Jobs Act of 2010 to enhance the provisions 

of the Small Business Lending Fund Program, to amend the Small 

Business Investment Act of 1958 to create a Small Business EarlyStage Investment Program, and to create the Small Business Borrower 

Assistance Program. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 28, 2010 

Mr. FRANK of Massachusetts introduced the following bill; which was referred 

to the Committee on Financial Services 

A BILL 

To amend the Small Business Jobs Act of 2010 to enhance 

the provisions of the Small Business Lending Fund Program, to amend the Small Business Investment Act of 

1958 to create a Small Business Early-Stage Investment 

Program, and to create the Small Business Borrower 

Assistance Program. 

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 Jobs 

5 Amendments Act of 2010’’. 


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1 SEC. 2. SMALL BUSINESS LENDING FUND AMENDMENTS. 

2 (a) IN GENERAL.—Subtitle A of title IV of the Small 

3 Business Jobs Act of 2010 is amended— 

4 (1) in section 4102— 

5 (A) in paragraph (8)— 

6 (i) in subparagraph (A), by adding 

7 ‘‘and’’ at the end; 

8 (ii) by striking subparagraph (B); and 

9 (iii) by redesignating subparagraph 

10 (C) as subparagraph (B). 

11 (B) in paragraph (11)— 

12 (i) in subparagraph (C), by striking 

13 ‘‘and’’ at the end; 

14 (ii) in subparagraph (D), by striking 

15 the period at the end and inserting ‘‘; 

16 and’’; and 

17 (iii) by adding at the end the fol18 lowing new subparagraph: 

19 ‘‘(D) any small business lending company 

20 that has total assets of equal to or less than 

21 $10,000,000,000.’’; 

22 (C) in paragraph (18)(A)— 

23 (i) by inserting after ‘‘such lending’’ 

24 the following: ‘‘is made to a small business 

25 and’’; and 


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1 (ii) by adding at the end the following 

2 new clause: 

3 ‘‘(v) Nonowner-occupied commercial 

4 real estate loans.’’; and 

5 (D) by adding at the end the following new 

6 paragraphs: 

7 ‘‘(20) SMALL BUSINESS.—The term ‘small busi8 ness’ has the meaning given the term ‘small business 

9 concern’ under section 3 of the Small Business Act 

10 (15 U.S.C. 632). 

11 ‘‘(21) SMALL BUSINESS LENDING COMPANY.— 

12 The term ‘small business lending company’ has the 

13 meaning given such term under section 3(r)(1) of 

14 the Small Business Act (15 U.S.C. 632(r)(1)).’’; 

15 (2) in section 4103— 

16 (A) in subsection (b)— 

17 (i) in paragraph (1), by striking the 

18 period at the end and inserting the fol19 lowing: ‘‘, and, notwithstanding other pro20 visions of Federal law, such debt instru21 ments issued by an eligible institution or22 ganized in mutual form or that has made 

23 a valid election to be taxed under sub24 chapter S of chapter 1 of the Internal RevVerDate Mar 15 2010 21:57 Oct 07, 2010 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6219.IH H6219

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1 enue Code of 1986 shall be included as a 

2 component of tier 1 capital.’’; and 

3 (ii) in paragraph (4), by amending 

4 subparagraph (B) to read as follows: 

5 ‘‘(B) ELIGIBLE STANDARDS.—The Sec6 retary, in consultation with the Community De7 velopment Financial Institutions Fund, shall 

8 develop eligibility criteria to determine the fi9 nancial ability of a CDLF to participate in the 

10 Program and repay the investment. Such cri11 teria may include net asset ratio to total assets, 

12 ratio of loan loss reserves to loans and leases 90 

13 days or more delinquent (including loans sold 

14 with full recourse), positive net income meas15 ured on a 3-year rolling average, operating li16 quidity ratio, ratio of loans and leases 90 days 

17 or more delinquent (including loans sold with 

18 full recourse) to total equity plus loan loss re19 serves, or any other measures deemed appro20 priate. In addition, CDLFs participating in the 

21 Program shall submit audited financial state22 ments to the Secretary, have a clean audit opin23 ion, and have at least three years of operating 

24 experience.’’; 

25 (B) in subsection (d)— 


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1 (i) in paragraph (1)(F), by striking 

2 ‘‘5 percent’’ and inserting ‘‘10 percent’’; 

3 (ii) in paragraph (5), by adding at the 

4 end the following new subparagraphs: 

5 ‘‘(J) INCENTIVES CONTINGENT ON AN IN6 CREASE IN THE NUMBER OF LOANS MADE.— 

For any quarter during the first 41 7 ⁄2-year pe8 riod following the date on which an eligible in9 stitution receives a capital investment under the 

10 Program, other than the first such quarter, in 

11 which the institution’s change in the amount of 

12 small business lending relative to the baseline is 

13 positive, if the number of loans made by the in14 stitution does not increase by 2.5 percent for 

15 each 2.5 percent increase of small business 

16 lending, then the rate at which dividends and 

17 interest shall be payable during the following 

18 quarter on preferred stock or other financial in19 struments issued to the Treasury by the eligible 

20 institution shall be— 

21 ‘‘(i) 5 percent, if such quarter is with22 in the 2-year period following the date on 

23 which the eligible institution receives the 

24 capital investment under the Program; or 


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1 ‘‘(ii) 7 percent, if such quarter is after 

2 such 2-year period. 

3 ‘‘(K) ALTERNATIVE COMPUTATION.—An 

4 eligible institution may choose to compute their 

5 small business lending amount by computing 

6 the amount of small business lending, as if the 

7 definition of such term did not require that the 

8 loans comprising such lending be made to small 

9 business. Any eligible institution choosing to 

10 compute their small business lending in this 

11 manner shall certify that all lending included by 

12 the institution for purposes of computing the 

13 increase in lending under this paragraph was 

14 made to small businesses.’’; and 

15 (iii) in paragraph (8)— 

16 (I) by amending the heading to 

17 read as follows: ‘‘OUTREACH TO MI18 NORITIES, WOMEN, VETERANS, AND

19 INDIAN TRIBES’’; 

20 (II) in subparagraph (B), by 

21 striking ‘‘and’’ at the end; 

22 (III) in subparagraph (C), by 

23 striking the period at the end and in24 serting ‘‘; and’’; and 


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1 (IV) by adding at the end the fol2 lowing new subparagraph: 

3 ‘‘(D) represent or work with or are mem4 bers of Indian Tribes.’’; and 

5 (C) by adding at the end the following new 

6 subsection: 

7 ‘‘(e) NOTIFICATION TO CUSTOMERS.—Any eligible in8 stitution receiving funds under the Program shall— 

9 ‘‘(1) disclose on every applicable loan trans10 action that the loan is being made possible by the 

11 Program; and 

12 ‘‘(2) if such institution has an established inter13 net website, such institution shall make available on 

14 its internet website— 

15 ‘‘(A) the written reports made by the Sec16 retary pursuant to paragraphs (1) and (2) of 

17 section 4107(b)(3); and 

18 ‘‘(B) a statement that the institution, as a 

19 participant in the Program, is seeking to make 

20 small business loans to qualified borrowers and 

21 may not discriminate on the basis of any factor 

22 prohibited under the Equal Credit Opportunity 

23 Act, including the race, color, religion, national 

24 origin, sex, marital status, or age.’’; 

25 (3) in section 4105— 


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1 (A) in paragraph (8), by striking ‘‘and’’ at 

2 the end; 

3 (B) in paragraph (9), by striking the pe4 riod at the end and inserting ‘‘; and’’; and 

5 (C) by adding at the end the following new 

6 paragraph: 

7 ‘‘(10) increasing the availability of credit for 

8 small businesses operating on Tribal trust lands or 

9 other Indian areas.’’; 

10 (4) by redesignating section 4113 as section 

11 4114; and 

12 (5) by inserting after section 4112 the following 

13 new section: 

14 ‘‘SEC. 4113. TEMPORARY AMORTIZATION AUTHORITY. 

15 ‘‘(a) PURPOSE.—The purpose of this section is to ad16 dress the ongoing effects of the financial crisis on small 

17 businesses by providing temporary authority to amortize 

18 losses or write-downs in order to increase the availability 

19 of credit for small businesses. 

20 ‘‘(b) IN GENERAL.—For purposes of capital calcula21 tion under the Financial Institutions Examination Coun22 cil’s Consolidated Reports of Condition, an eligible institu23 tion may choose to amortize any loss or write-down, on 

24 a quarterly straight line basis over a period determined 

25 under subsection (c), beginning with the month in which 


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1 such loss or write-down occurs, resulting from the applica2 tion of FASB Statement 114 or 144 to— 

3 ‘‘(1) other real estate owned (as defined under 

4 section 34.81 of title 12, Code of Federal Regula5 tion), or 

6 ‘‘(2) an impaired loan secured by real estate, 

7 provided that the institution discloses the difference in the 

8 amount of the institution’s capital, when calculated taking 

9 into account the temporary amortization, from the amount 

10 of the institution’s capital when calculated without taking 

11 into account the temporary amortization on the Financial 

12 Institutions Examination Council’s Consolidated Reports 

13 of Condition. 

14 ‘‘(c) AMORTIZATION REQUIREMENTS.—During the 

15 initial 2-year period referred to in section 4103(d)(5), an 

16 eligible institution’s amortization period shall be adjusted 

17 to reflect the following schedule based on the institution’s 

18 change in the amount of small business lending relative 

19 to the baseline: 

20 ‘‘(1) If the amount of small business lending 

21 has increased by less than 2.5 percent, the amortiza22 tion period shall be 6 years. 

23 ‘‘(2) If the amount of small business lending 

24 has increased by 2.5 percent or greater, but by less 


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1 than 5.0 percent, the amortization period shall be 7 

2 years. 

3 ‘‘(3) If the amount of small business lending 

4 has increased by 5.0 percent or greater, but by less 

5 than 7.5 percent, the amortization period shall be 8 

6 years. 

7 ‘‘(4) If the amount of small business lending 

8 has increased by 7.5 percent or greater, but by less 

9 than 10.0 percent, the amortization period shall be 

10 9 years. 

11 ‘‘(5) If the amount of small business lending 

12 has increased by 10 percent or greater, the amorti13 zation period shall be 10 years. 

14 ‘‘(d) MINIMUM UNDERWRITING STANDARDS.—The 

15 appropriate Federal banking agency for an eligible institu16 tion that chooses to amortize any loss or write-down as 

17 permitted under subsection (b) shall, within 60 days of 

18 the date of the enactment of this title, issue regulations 

19 defining minimum underwriting standards that must be 

20 used for loans made by the eligible institution. 

21 ‘‘(e) EFFECTIVE DATE.—The provisions of this sec22 tion shall apply to loan origination that occurred on or 

23 after January 1, 2003, and before January 1, 2008.’’. 

24 (b) TECHNICAL AMENDMENT.—The table of contents 

25 for the Small Business Jobs Act of 2010 is amended by 


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1 striking the item related to section 4113 and inserting the 

2 following new items: 

‘‘4113. Temporary amortization authority. 

‘‘4114. Sense of Congress.’’. 

3 SEC. 3. EFFECTIVE DATE. 

4 This Act, and the amendments made by this Act, 

5 shall take effect on the later of the following: 

6 (1) The date of the enactment of this Act. 

7 (2) The date of the enactment of the Small 

8 Business Jobs Act of 2010. 

Æ 


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