II 

110TH CONGRESS 

2D SESSION S. 3705 

To amend the Small Business Act and the Small Business Investment Act 

of 1958 to stop the small business credit crunch, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 19, 2008 

Ms. SNOWE introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Small Business Act and the Small Business 

Investment Act of 1958 to stop the small business credit 

crunch, 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; DEFINITIONS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘10 

5 Steps for a Main Street Economic Recovery Act of 2008’’. 

6 (b) DEFINITIONS.—In this Act— 

7 (1) the term ‘‘Administration’’ means the Small 

8 Business Administration; 


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1 (2) the term ‘‘Administrator’’ means the Ad2 ministrator of the Small Business Administration; 

3 and 

4 (3) the term ‘‘small business concern’’ has the 

5 same meaning as in section 3 of the Small Business 

6 Act (15 U.S.C. 632). 

7 SEC. 2. 7(a) LOANS. 

8 (a) MAXIMUM LOAN AMOUNT.—Section 7(a)(3)(A) 

9 of the Small Business Act (15 U.S.C. 636(a)(3)(A)) is 

10 amended by striking ‘‘$1,500,000 (or if the gross loan 

11 amount would exceed $2,000,000’’ and inserting 

12 ‘‘$2,500,000 (or if the gross loan amount would exceed 

13 $3,000,000’’. 

14 (b) REFINANCING EXISTING LOANS.— 

15 (1) IN GENERAL.—Section 7(a) of the Small 

16 Business Act (15 U.S.C. 636) is amended by adding 

17 at the end the following: 

18 ‘‘(34) REFINANCING EXISTING LOANS.—A bor19 rower that has received a loan under this subsection 

20 may refinance the balance of the loan by applying 

21 for a loan from the lender that made the original 

22 loan or with another lender.’’. 

23 (2) TECHNICAL AMENDMENT.—Section 7(a) of 

24 the Small Business Act (15 U.S.C. 636(a)) is 


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1 amended by striking ‘‘(32) INCREASED’’ and insert2 ing ‘‘(33) INCREASED’’. 

3 (c) ALTERNATIVE SIZE STANDARD.—Section 3(a) of 

4 the Small Business Act (15 U.S.C. 632(a)) is amended 

5 by adding at the end the following: 

6 ‘‘(5) OPTIONAL SIZE STANDARD.— 

7 ‘‘(A) IN GENERAL.—The Administrator 

8 shall establish an optional size standard for 

9 business loan applicants under section 7(a) and 

10 development company loan applicants under 

11 title V of the Small Business Investment Act of 

12 1958 (15 U.S.C. 695 et seq.) that uses max13 imum tangible net worth and average net in14 come as an alternative to the industry size 

15 standard. 

16 ‘‘(B) INTERIM RULE.—Until the date on 

17 which the optional size standards established 

18 under subparagraph (A) are in effect, the alter19 native size standard in section 121.301(b) of 

20 title 13, Code of Federal Regulations, or any 

21 successor thereto, may be used by business loan 

22 applicants under section 7(a).’’. 

23 (d) FLEXIBILITY FOR POOLING OF LARGE LOANS.— 

24 Section 5(g)(1) of the Small Business Act (15 U.S.C. 

25 634(g)(1)) is amended by— 


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1 (1) inserting ‘‘(A)’’ after ‘‘(1)’’; 

2 (2) striking the colon and inserting a period; 

3 (3) striking ‘‘Provided’’ and all that follows 

4 through ‘‘certificates’’ and inserting the following: 

5 ‘‘(B) A trust certificate issued under this paragraph’’; 

6 and 

7 (4) adding at the end the following: 

8 ‘‘(C) For a loan of more than $500,000 that has been 

9 guaranteed by the Administrator under this Act, the Ad10 ministrator shall, on the request of a loan pool assembler, 

11 divide the amount of such loan into individual guarantees, 

12 no 1 of which may exceed $500,000. Not more than 1 

13 portion of a loan that has been divided under this subpara14 graph shall be included in the same pool. Portions of more 

15 than 1 loan divided under this subparagraph may be in16 cluded in the same pool. 

17 ‘‘(D) A lender that makes or services a loan guaran18 teed under section 7(a) may purchase or hold all or any 

19 part of a loan pool that includes a loan made or serviced 

20 by the lender. 

21 ‘‘(E) A purchase or holding by a lender described in 

22 subparagraph (D) shall not affect the guarantee under 

23 section 7(a) of a loan in a pool.’’. 


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1 SEC. 3. COMMUNITY EXPRESS AND RURAL LENDING. 

2 (a) COMMUNITY EXPRESS PROGRAM ESTAB3 LISHED.—Section 7(a) of the Small Business Act (15 

4 U.S.C. 636(a)), as amended by this Act, is amended by 

5 adding at the end the following: 

6 ‘‘(35) COMMUNITY EXPRESS PROGRAM.— 

7 ‘‘(A) DEFINITIONS.—In this paragraph— 

8 ‘‘(i) the term ‘community express pro9 gram’ means the loan program under this 

10 paragraph; 

11 ‘‘(ii) the term ‘eligible small business 

12 concern’ means— 

13 ‘‘(I) a small business concern 

14 owned and controlled by women, as 

15 defined in section 29(a)(3); 

16 ‘‘(II) a small business concern 

17 owned by a qualified Indian tribe; 

18 ‘‘(III) a small business concern 

19 owned and controlled by a socially or 

20 economically disadvantaged individual, 

21 as determined by the Administrator; 

22 ‘‘(IV) a small business concern 

23 owned and controlled by veterans; 

24 ‘‘(V) a small business concern 

25 owned and controlled by a member of 

26 a reserve component of the Armed 


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1 Forces, as defined in section 101 of 

2 title 10, United States Code; 

3 ‘‘(VI) a small business concern 

4 located in an area that the Adminis5 trator determines to be a low-income 

6 or moderate-income area; 

7 ‘‘(VII) a HUBZone small busi8 ness concern; and 

9 ‘‘(VIII) a small business concern 

10 located in a special market initiative; 

11 ‘‘(iii) the term ‘qualified private lend12 er’ means a private lender that meets such 

13 requirements as the Administrator shall es14 tablish; and 

15 ‘‘(iv) the term ‘special market initia16 tive’ means a community, market, or in17 dustry designated by the Director of a dis18 trict office of the Administration for eco19 nomic development purposes. 

20 ‘‘(B) LOANS OF $150,000 OR LESS.— 

21 ‘‘(i) AUTHORIZATION.—The Adminis22 trator may guarantee timely payment of 

23 principal and interest, as scheduled, on a 

24 loan of not more than $150,000 issued by 


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1 a qualified private lender to a small busi2 ness concern. 

3 ‘‘(ii) GUARANTEE PERCENTAGE.—The 

4 Administrator may guarantee not more 

5 than 85 percent of the amount of a loan 

6 under this subparagraph. 

7 ‘‘(C) LOANS OF MORE THAN $150,000.— 

8 ‘‘(i) AUTHORIZATION.—The Adminis9 trator may guarantee timely payment of 

10 principal and interest, as scheduled, on a 

11 loan of more than $150,000 and not more 

12 than $300,000 issued by a qualified pri13 vate lender to an eligible small business 

14 concern under this subparagraph. 

15 ‘‘(ii) GUARANTEE PERCENTAGE.—The 

16 Administrator may guarantee not more 

17 than 75 percent of a loan the amount of 

18 a loan under this subparagraph. 

19 ‘‘(D) QUALIFIED PRIVATE LENDER RE20 QUIREMENTS.— 

21 ‘‘(i) TECHNICAL ASSISTANCE.—A 

22 qualified private lender shall— 

23 ‘‘(I) ensure that appropriate 

24 technical assistance is provided to 

25 each borrower that receives a loan 


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1 under the community express program 

2 from the qualified private lender; 

3 ‘‘(II) encourage a borrower that 

4 receives a loan under the community 

5 express program from the qualified 

6 private lender to use the business de7 velopment programs of the Adminis8 tration for technical assistance; and 

9 ‘‘(III) to the extent practicable, 

10 use the loan process to work with a 

11 borrower that receives a loan under 

12 the community express program from 

13 the qualified private lender, in order 

14 to— 

15 ‘‘(aa) develop a business 

16 plan, if appropriate; 

17 ‘‘(bb) assess the strengths 

18 and weaknesses of the borrower 

19 in management and other rel20 evant areas; and 

21 ‘‘(cc) provide technical as22 sistance to address any assessed 

23 weaknesses of the borrower. 

24 ‘‘(ii) COLLATERAL POLICY.— 


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1 ‘‘(I) IN GENERAL.—The Admin2 istrator shall establish a policy relat3 ing to collateral for loans under the 

4 community express program, which 

5 shall permit a qualified private lender 

6 to make a loan of not more than 

7 $15,000 without collateral. 

8 ‘‘(II) LIMITATION.—The policy 

9 established by the Administrator may 

10 not limit the ability of a qualified pri11 vate lender to follow any internal pro12 cedure of the lender related to collat13 eral. 

14 ‘‘(iii) EQUITY OF BORROWERS.—Each 

15 qualified private lender shall verify that a 

16 borrower receiving a loan under the com17 munity express program has an equity 

18 stake of at least 10 percent in the business 

19 concern. 

20 ‘‘(iv) FINANCIAL STATEMENTS.—Each 

21 qualified private lender shall obtain a fi22 nancial statement from a borrower before 

23 making a loan under the community ex24 press program. 


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1 ‘‘(v) SALE OF LOANS.—A qualified 

2 private lender may not sell more than 80 

3 percent of the total dollar value of the 

4 loans made by the qualified private lender 

5 under the community express program to 

6 another person or entity. 

7 ‘‘(E) SIMPLIFICATION OF RULES.—The 

8 Administrator shall review the regulations and 

9 procedures relating to the community express 

10 program to ensure that such regulations and 

11 procedures are simple and clear and do not cre12 ate barriers to participation in the program. 

13 ‘‘(F) NOTICE AND COMMENT.—The Ad14 ministrator shall establish policies relating to 

15 the community express program— 

16 ‘‘(i) after notice and the opportunity 

17 for comment; and 

18 ‘‘(ii) not later than 1 year after the 

19 date of enactment of this paragraph.’’. 

20 (b) RURAL LENDER AND NEW LENDER OUTREACH

21 PROGRAM.—Section 7(a) of the Small Business Act (15 

22 U.S.C. 636(a)), as amended by this Act, is amended by 

23 adding at the end the following: 

24 ‘‘(36) RURAL LENDER AND NEW LENDER OUT25 REACH PROGRAM.— 


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1 ‘‘(A) DEFINITIONS.—In this paragraph— 

2 ‘‘(i) the term ‘new lender’ means a 

3 lender that has not made more than 20 

4 loans guaranteed by the Administrator 

5 during the 3-year period ending on the 

6 date on which the applicable loan is sub7 mitted (including a lender that has not 

8 made a loan guaranteed by the Adminis9 tration); 

10 ‘‘(ii) the term ‘rural area’ has the 

11 meaning given that term in subsection (m); 

12 and 

13 ‘‘(iii) the term ‘rural lender’ means a 

14 lender that— 

15 ‘‘(I) is located in a rural area; 

16 and 

17 ‘‘(II) made not more than 20 

18 loans guaranteed by the Administra19 tion during the 3-year period ending 

20 on the date on which the applicable 

21 loan application is submitted (includ22 ing a lender that has not made a loan 

23 guaranteed by the Administration). 

24 ‘‘(B) PROGRAM.—The Administrator shall 

25 carry out a rural lender and new lender outVerDate Aug 31 2005 00:16 Nov 21, 2008 Jkt 079200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3705.IS S3705

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1 reach program, under which the Administrator 

2 may guarantee timely payment of principal and 

3 interest, as scheduled, on a loan to a small 

4 business concern of not more than $500,000 

5 made by a rural lender or a new lender. 

6 ‘‘(C) LOAN PROCESSING.— 

7 ‘‘(i) IN GENERAL.—The Administrator 

8 shall establish, for loans guaranteed under 

9 this paragraph— 

10 ‘‘(I) streamlined application and 

11 documentation requirements; and 

12 ‘‘(II) minimum credit standards 

13 necessary to provide for a reasonable 

14 assurance of repayment, in accordance 

15 with paragraph (6). 

16 ‘‘(ii) NEW LENDER TRAINING AND

17 CERTIFICATION.—The Administrator may 

18 guarantee a loan made by a new lender 

19 under this paragraph if the Adminis20 trator— 

21 ‘‘(I) provides the new lender with 

22 training described in subparagraph 

23 (D); and 

24 ‘‘(II) determines that the new 

25 lender meets minimum standards for 


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1 program knowledge, borrower eligi2 bility, and underwriting standards. 

3 ‘‘(iii) APPROVAL OR DISAPPROVAL.— 

4 For a loan guaranteed under this para5 graph, the Administrator shall approve or 

6 disapprove the loan in as expedited manner 

7 as practicable. 

8 ‘‘(D) TRAINING.—At regularly scheduled 

9 intervals and upon request by a new lender or 

10 rural lender the Administrator shall provide 

11 training for new lenders and rural lenders on 

12 the loan guarantee program under this sub13 section.’’. 

14 (c) ELECTRONIC ONLINE LOAN UNDERWRITING

15 PROGRAM GUIDE.— 

16 (1) PURPOSE.—The purpose of this subsection 

17 is to assist rural lenders and new lenders in making 

18 more loans of good underwriting quality to small 

19 business concerns. 

20 (2) ONLINE UNDERWRITING GUIDE.—The Ad21 ministrator shall establish an online underwriting 

22 program guide (in this subsection referred to as the 

23 ‘‘guide’’) to develop the lending capacity of rural 

24 lenders and new lenders (as such terms are defined 


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1 in paragraph (36) of section 7(a) of the Small Busi2 ness Act (15 U.S.C. 636(a)), as added by this Act). 

3 (3) REQUIREMENTS.—The guide— 

4 (A) is not intended to replace the internal 

5 credit scoring and loan approval process of a 

6 lender; 

7 (B) shall demonstrate the steps the Ad8 ministrator expects a lender to take in making 

9 a loan under a program of the Administration; 

10 (C) shall assist a lender in using the inter11 nal credit evaluation processes of the lender to 

12 make a loan under a program of the Adminis13 tration and build the capacity and ability of the 

14 lender to make such loans; 

15 (D) shall provide simple steps to assist a 

16 lender that has not made a loan guaranteed by 

17 the Administration through the loan application 

18 process for a loan under section 7(a) of the 

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

20 (E) shall include information, guidance, 

21 sample documentation, questions and answers, 

22 and any other information necessary to guide a 

23 lender through the process of making a loan 

24 guaranteed by the Administration in a system25 atic and simple fashion; and 


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1 (F) shall include information relating to— 

2 (i) loan application and preapproval; 

3 (ii) loan underwriting; 

4 (iii) requirements after loan approval; 

5 (iv) preparation for loan closing; 

6 (v) closing the loan; and 

7 (vi) servicing the loan. 

8 (4) ELECTRONICALLY SUBMITTED LOANS.— 

9 The Administrator shall use the guide as a means 

10 to increase the number of applications for loan guar11 antees submitted electronically for approval from 

12 rural lenders and new lenders. 

13 SEC. 4. 504 LOANS. 

14 (a) MAXIMUM LOAN AMOUNTS UNDER 504 PRO15 GRAM.—Section 502(2)(A) of the Small Business Invest16 ment Act of 1958 (15 U.S.C. 696(2)(A)) is amended— 

17 (1) in clause (i), by striking ‘‘$1,500,000’’ and 

18 inserting ‘‘$2,250,000’’; 

19 (2) in clause (ii), by striking ‘‘$2,000,000’’ and 

20 inserting ‘‘$3,000,000’’; and 

21 (3) in clause (iii), by striking ‘‘$4,000,000’’ and 

22 inserting ‘‘$5,500,000’’. 

23 (b) BUSINESSES IN LOW-INCOME COMMUNITIES.— 

24 (1) GOALS.—Section 501(d)(3)(A) of the Small 

25 Business Investment Act of 1958 (15 U.S.C. 


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1 695(d)(3)(A)) is amended by inserting after ‘‘busi2 ness district revitalization,’’ the following: ‘‘or ex3 pansion of businesses in a low-income community, as 

4 defined in section 45D(e) of the Internal Revenue 

5 Code of 1986 and implementing regulations,’’. 

6 (2) ADDITIONAL INCENTIVES.—Section 502 of 

7 the Small Business Investment Act of 1958 (15 

8 U.S.C. 696) is amended by adding at the end the 

9 following: 

10 ‘‘(7) LOW-INCOME COMMUNITIES.— 

11 ‘‘(A) LOAN AMOUNT.—Notwithstanding 

12 paragraph (2)(A)(ii), a loan under this section 

13 for use in a low-income community described in 

14 section 501(d)(3)(A) may not exceed 

15 $5,500,000. 

16 ‘‘(B) SIZE STANDARDS.—For purposes of 

17 determining eligibility for a loan under this sec18 tion for use in a low-income community de19 scribed in section 501(d)(3)(A), the size stand20 ards established by the Administrator under 

21 section 3 of the Small Business Act (15 U.S.C. 

22 632) shall be increased by 25 percent. 

23 ‘‘(C) PERSONAL LIQUIDITY.— 

24 ‘‘(i) IN GENERAL.—For any loan 

25 under this section for use in a low-income 


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1 community described in section 

2 501(d)(3)(A), the amount of personal re3 sources of an owner that are excluded from 

4 the amount required to be provided to re5 duce the portion of the project funded by 

6 the Administration shall be not less than 

7 25 percent more than that required for 

8 other loans under this section. 

9 ‘‘(ii) DEFINITION.—In this subpara10 graph, the term ‘owner’ means any person 

11 that owns not less than 20 percent of the 

12 equity of the small business concern apply13 ing for the applicable loan.’’. 

14 (c) ADDITIONAL EQUITY INJECTIONS.—Section 

15 502(3)(B)(ii) of the Small Business Investment Act of 

16 1958 (15 U.S.C. 696(3)(B)(ii)) is amended to read as fol17 lows: 

18 ‘‘(ii) FUNDING FROM INSTITU19 TIONS.—If a small business concern— 

20 ‘‘(I) provides the minimum con21 tribution required under subpara22 graph (C), not less than 50 percent of 

23 the total cost of any project financed 

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1 stitutions described in subclauses (I), 

2 (II), and (III) of clause (i) of this 

3 subparagraph; and 

4 ‘‘(II) provides more than the 

5 minimum contribution required under 

6 subparagraph (C), any excess con7 tribution may be used to reduce the 

8 amount required from the institutions 

9 described in subclauses (I), (II), and 

10 (III) of clause (i) of this subpara11 graph, except that the amount from 

12 such institutions may not be reduced 

13 to an amount that is less than the 

14 amount of the loan made by the Ad15 ministrator.’’. 

16 (d) REFINANCING UNDER THE LOCAL DEVELOP17 MENT BUSINESS LOAN PROGRAM.—Section 502 of the 

18 Small Business Investment Act of 1958 (15 U.S.C. 696), 

19 as amended by this Act, is amended by adding at the end 

20 the following: 

21 ‘‘(8) PERMISSIBLE DEBT REFINANCING.— 

22 ‘‘(A) IN GENERAL.—Any financing ap23 proved under this title may include a limited 

24 amount of debt refinancing. 


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1 ‘‘(B) EXPANSIONS.—If the project involves 

2 expansion of a small business concern which 

3 has existing indebtedness collateralized by fixed 

4 assets, any amount of existing indebtedness 

that does not exceed 1 5 ⁄2 of the project cost of 

6 the expansion may be refinanced and added to 

7 the expansion cost, if— 

8 ‘‘(i) the proceeds of the indebtedness 

9 were used to acquire land, including a 

10 building situated thereon, to construct a 

11 building thereon, or to purchase equip12 ment; 

13 ‘‘(ii) the borrower has been current on 

14 all payments due on the existing debt for 

15 not less than 1 year preceding the date of 

16 refinancing; and 

17 ‘‘(iii) the financing under section 504 

18 will provide better terms or rate of interest 

19 than exists on the debt at the time of refi20 nancing.’’. 

21 (e) JOB CREATION REQUIREMENTS.—Section 501(e) 

22 of the Small Business Investment Act of 1958 (15 U.S.C. 

23 695(e)) is amended— 

24 (1) in paragraph (1), by striking ‘‘$50,000’’ 

25 and inserting ‘‘$65,000’’; and 


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1 (2) in paragraph (2), by striking ‘‘$50,000’’ 

2 and inserting ‘‘$65,000’’. 

3 SEC. 5. GUARANTEE AND SALE OF BANK FINANCINGS WITH 

4 504 LOAN PROGRAM. 

5 (a) DEFINITIONS.—In this section— 

6 (1) the term ‘‘pool assembler’’ means a finan7 cial institution that— 

8 (A) organizes and packages a loan pool by 

9 acquiring the guaranteed portion of third party 

10 financings guaranteed by the Administrator 

11 under subsection (b); 

12 (B) resells fractional interests in the loan 

13 pool to registered holders; and 

14 (C) directs that the fiscal and transfer 

15 agent of the Administrator to issue trust certifi16 cates; and 

17 (2) the term ‘‘third party financing’’ means a 

18 financing described in section 502(3)(B)(ii) of the 

19 Small Business Investment Act of 1958 (15 U.S.C. 

20 696(3)(B)(ii))— 

21 (A) made on or before the date of enact22 ment of this Act; 

23 (B) that provides for the payment of inter24 est at a fixed rate or under a variable rate 

25 index (plus a spread) based upon Prime rate, a 


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1 London Interbank Offered Rate (or LIBOR), a 

2 Federal Home Loan Bank rate, a United States 

3 Treasury rate, or a generally accepted market 

4 index rate approved by the Administrator; 

5 (C) that provides amortized payments with 

6 a maturity of not more than 25 years; and 

7 (D) for which the borrower— 

8 (i) is current on all payments due on 

9 the loan on the date on which the loan is 

10 guaranteed under subsection (b); and 

11 (ii) has not been more than 29 days 

12 past due on a payment during the 12- 

13 month period ending on the date on which 

14 the loan is guaranteed under subsection 

15 (b). 

16 (b) LOAN GUARANTEE.— 

17 (1) IN GENERAL.—To the extent amounts are 

18 provided in advance in appropriations Acts, and in 

19 accordance with this subsection, upon application of 

20 a pool assembler who has acquired a third party fi21 nancing, the Administrator shall guarantee the time22 ly repayment of principal and interest on 80 percent 

23 of the balance of the third party financing out24 standing on the date of the guarantee. 


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1 (2) LENDERS.—A lender that made a third 

2 party financing guaranteed under paragraph (1)— 

3 (A) shall— 

4 (i) agree to hold and service the note 

5 issued as part of the third party financing; 

6 (ii) comply with the reporting and 

7 payment remittance requirements of the 

8 Administrator; and 

9 (iii) enter a secondary participation 

10 guaranty agreement with the Adminis11 trator and the fiscal and transfer agent of 

12 the Administrator; and 

13 (B) may collect and retain all of any appli14 cable prepayment penalties otherwise provided 

15 in the event the third party financing is pre16 paid. 

17 (3) GUARANTEE FEE.—To cover the costs of 

18 guarantees under this subsection and the cost of 

19 issuing trust certificates under subsection (c), a 

20 lender that made a third party financing guaranteed 

21 under paragraph (1) shall pay to the Adminis22 trator— 

23 (A) a one-time fee equal to 1 percent of 

24 the net amount of the third party financing 

25 guaranteed by the Administration, payable on 


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1 the date on which the third party financing is 

2 guaranteed; and 

3 (B) a monthly fee on the unpaid balance of 

4 the net amount of the third party financing 

5 guarantee at the rate of 25 basis points per 

6 year. 

7 (4) MAXIMUM AMOUNT.—The Administrator 

8 may guarantee a total amount of not more than 

9 $6,000,000,000 in third party financings under this 

10 subsection. 

11 (5) TERMINATION OF AUTHORITY.—The au12 thority of the Administrator to guarantee a third 

13 party financing under this subsection shall terminate 

14 on September 30, 2010. 

15 (6) APPROPRIATION.—In addition to any other 

16 amounts appropriated, there are appropriated for 

17 the fiscal year ending September 30, 2009, for the 

18 ‘‘Business Loans Program Account’’ of the Adminis19 tration, out of any money in the Treasury not other20 wise appropriated, $1 for loan subsidies and for loan 

21 modifications for guarantees authorized under this 

22 subsection, to remain available until expended. 

23 (c) TRUST CERTIFICATES.— 

24 (1) ISSUANCE.—The Administrator may issue a 

25 trust certificate representing ownership of all or a 


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1 fractional part of the guaranteed portion of 1 or 

2 more third party financings that have been guaran3 teed by the Administrator under subsection (b). A 

4 trust certificate issued under this subsection shall be 

5 based on and backed by a trust or pool approved by 

6 the Administrator and composed solely of the entire 

7 guaranteed portion of third party financings guaran8 teed by the Administrator under subsection (b). 

9 (2) POOLING REQUIREMENTS.— 

10 (A) INTEREST RATE.—The interest rate on 

11 a trust certificate issued under this subsection 

12 shall be the weighted average interest rate of all 

13 third party financings in the pool. There shall 

14 be no limit on the difference between the high15 est and lowest note interest rates on third party 

16 financings forming the pool. 

17 (B) MATURITY.— 

18 (i) IN GENERAL.—Each pool may in19 clude either— 

20 (I) third party financings with 

21 remaining terms to maturity of 15 

22 years or less; or 

23 (II) third party financings with 

24 remaining terms to maturity of more 

25 than 15 years. 


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1 (ii) NO OTHER LIMITATIONS.—Except 

2 as provided in clause (i), the Administrator 

3 may not limit the difference between the 

4 remaining terms to maturity of the third 

5 party financings forming a pool. 

6 (C) SIZE.— 

7 (i) IN GENERAL.—If the amount of 

8 the guaranteed portion of any third party 

9 financing exceeds $500,000, the Adminis10 trator shall, upon request of the pool as11 sembler, divide the amount of the third 

12 party financing into individual guarantees 

13 no 1 of which exceeds $500,000. 

14 (ii) DIVIDED FINANCINGS.—Not more 

15 than 1 portion of a third party financing 

16 that has been divided under this subpara17 graph shall be included in the same pool. 

18 Portions of more than 1 third party fi19 nancing divided under this subparagraph 

20 may be included in the same pool. 

21 (3) TIMELY PAYMENT.— 

22 (A) IN GENERAL.—The Administrator 

23 may, upon such terms and conditions as the 

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1 est on a trust certificate issued by the Adminis2 trator or an agent of the Administrator under 

3 this subsection. A guarantee under this para4 graph shall be limited to the principal and in5 terest on the guaranteed portions of the third 

6 party financings that comprise the trust or 

7 pool. 

8 (B) PREPAYMENT.—If a third party fi9 nancing in a trust or pool guaranteed under 

10 this paragraph is prepaid, either voluntarily or 

11 in the event of default, the guarantee of timely 

12 payment of principal and interest on the trust 

13 certificates shall be reduced in proportion to the 

14 amount of principal and interest the prepaid 

15 third party financing represents in the trust or 

16 pool. Interest on prepaid or defaulted third 

17 party financings shall accrue and be guaranteed 

18 by the Administrator only through the date of 

19 payment on the guarantee. During the term of 

20 a trust certificate issued under this subsection, 

21 the trust certificate may be called for redemp22 tion due to prepayment or default of all third 

23 party financings constituting the pool. 

24 (4) FULL FAITH AND CREDIT.—The full faith 

25 and credit of the United States is pledged to the 


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1 payment of all amounts that may be required to be 

2 paid under any guarantee of a trust certificate 

3 issued by the Administrator or an agent of the Ad4 ministrator under this subsection. 

5 (5) USE OF AGENT.—The Administrator shall 

6 negotiate an amendment to the contract in effect on 

7 the date of enactment of this Act with the agent for 

8 fee collection for trust certificates issued under sec9 tion 5(g) of the Small Business Act (15 U.S.C. 

10 634(g)) to collect the monthly fee under subsection 

11 (b)(3)(B) of this section. The agent may receive, as 

12 compensation for services, any interest earned on a 

13 fee collected under this section while in the control 

14 of the agent before the time at which the agent is 

15 contractually required to remit the fee to the Admin16 istrator. 

17 (6) CLAIMS.—In the event the Administrator 

18 pays a claim under a guarantee issued under this 

19 subsection, it shall be subrogated fully to the rights 

20 satisfied by such payment. 

21 (7) OWNERSHIP RIGHTS.—No State or local 

22 law, and no Federal law, shall preclude or limit the 

23 exercise by the Administrator of the ownership 

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1 stituting the trust or pool against which a trust cer2 tificate is issued under this subsection. 

3 (8) CENTRAL REGISTRATION.—The Adminis4 trator— 

5 (A) shall provide for a central registration 

6 of all trust certificates issued under this sub7 section; 

8 (B) shall negotiate an amendment to the 

9 contract in effect on the date of enactment of 

10 this Act with the agent for central registration 

11 of trust certificates issued pursuant to section 

12 5(h) of the Small Business Act (15 U.S.C. 

13 634(h)) to carry out on behalf of the Adminis14 trator the central registration functions under 

15 this subsection and the issuance of trust certifi16 cates to facilitate pooling, under which— 

17 (i) the agent may be compensated 

18 through any of the fees collected under this 

19 section and any interest earned on any 

20 funds collected by the agent while such 

21 funds are in the control of the agent and 

22 before the time at which the agent is con23 tractually required to transfer such funds 

24 to the Administrator or to the holders of 

25 the trust certificates, as appropriate; and 


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1 (ii) the agent shall provide a fidelity 

2 bond or insurance in such amounts as the 

3 Administrator determines to be necessary 

4 to fully protect the interest of the Govern5 ment; and 

6 (C) may— 

7 (i) use a book-entry or other elec8 tronic form of registration for trust certifi9 cates issued under this subsection; and 

10 (ii) with the consent of the Secretary 

11 of the Treasury, use the book-entry system 

12 of the Federal Reserve System. 

13 (9) SALE.—The Administrator shall, before any 

14 sale of a trust certificate issued under this sub15 section, require the seller to disclose to the pur16 chaser of the trust certificate information on the 

17 terms, conditions, and yield of such instrument. 

18 (10) BROKERS AND DEALERS.—The Adminis19 trator may issue regulations relating to the 

20 brokering of and dealing in trust certificates sold 

21 under this subsection. 

22 (11) TERMINATION OF AUTHORITY.—The au23 thority of the Administrator to issue trust certifi24 cates under this subsection shall terminate on Sep25 tember 30, 2010. 


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1 (d) IMPLEMENTATION.—Not later than 30 days after 

2 the date of enactment of this Act, the Administrator shall 

3 issue interim final regulations to carry out this section. 

4 (e) LENDER PURCHASE ELIGIBILITY.— 

5 (1) IN GENERAL.—A lender that made or serv6 ices a loan guaranteed under section 7(a) of the 

7 Small Business Act (15 U.S.C. 636(a)) or a third 

8 party financing guaranteed under subsection (b) of 

9 this section may purchase and hold all or any part 

10 of a loan pool which includes a loan or third party 

11 financing made or serviced by the lender. 

12 (2) NO EFFECT ON GUARANTEE.—A purchase 

13 described in subparagraph (A) shall not affect the 

14 guarantee of a loan or third party financing in a 

15 pool. 

16 SEC. 6. EMERGENCY SHORT TERM FEE REDUCTIONS. 

17 (a) LENDER OVERSIGHT FEES.— 

18 (1) TEMPORARY REDUCTION IN FEES.— 

19 (A) IN GENERAL.—To the extent amounts 

20 are provided in advance in appropriations Acts, 

21 the Administrator shall, in lieu of the fee other22 wise applicable under section 5(b)(14) of the 

23 Small Business Act (15 U.S.C. 634(b)(14)), 

24 collect no fee. 


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1 (B) AUTHORIZATION OF APPROPRIA2 TIONS.—There are authorized to be appro3 priated for salaries and expenses of the Admin4 istration relating to examinations, reviews, and 

5 other lender oversight activities relating to 

6 loans under section 7 of the Small Business Act 

7 (15 U.S.C. 636)— 

8 (i) $10,000,000 for each of fiscal 

9 years 2009 and 2010; and 

10 (ii) such sums as may be necessary 

11 for each fiscal year thereafter. 

12 (2) REPORT ON MAKING FEES CONTINGENT ON

13 PERFORMANCE.—Not later than 6 months after the 

14 date of enactment of this Act, the Administrator, in 

15 consultation with lenders that have made loans guar16 anteed under section 7 of the Small Business Act 

17 (15 U.S.C. 636), shall submit to the Committee on 

18 Small Business and Entrepreneurship of the Senate 

19 and the Committee on Small Business of the House 

20 of Representatives a report regarding the feasibility 

21 of assessing annual fees under section 7(a)(23)(A) 

22 of the Small Business Act (15 U.S.C. 

23 636(a)(23)(A)) in an amount that is contingent on 

24 the performance of the lender, including consider25 ation of the meeting the requirement under section 


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1 7(a)(1) of that Act (15 U.S.C. 636(a)(1)) of pro2 viding credit to applicants than cannot obtain credit 

3 elsewhere. The report under this paragraph may in4 clude proposed legislation. 

5 (b) FEE REDUCTIONS.— 

6 (1) NEW 7(a) LENDER DEFINED.—In this sub7 section the term ‘‘new 7(a) lender’’ means a lender 

8 that has not made more than 20 loans guaranteed 

9 by the Administrator under section 7(a) of the Small 

10 Business Act (15 U.S.C. 636(a)) during the 3-year 

11 period ending on the date on which the Adminis12 trator determines the fee under section 7(a)(23)(A) 

13 of that Act (15 U.S.C. 636(a)(23)(A)) for the lend14 er. 

15 (2) 7(a) LOAN FEE REDUCTIONS.— 

16 (A) IN GENERAL.—For fiscal years 2009 

17 and 2010, and to the extent the cost of such re18 duction in fees is offset by appropriations, with 

19 respect to each loan guaranteed under section 

20 7(a) of Small Business Act (15 U.S.C. 

21 636(a))— 

22 (i) the Administrator shall, in lieu of 

23 the fee otherwise applicable under section 

24 7(a)(23)(A) of the Small Business Act (15 


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1 U.S.C. 636(a)(23)(A)), collect an annual 

2 fee in an amount equal to— 

3 (I) 0.25 percent of the out4 standing balance of the deferred par5 ticipation share of a loan made under 

6 section 7(a) of the Small Business Act 

7 (15 U.S.C. 636(a)) to a small busi8 ness concern before the date of enact9 ment of this Act; and 

10 (II) .20 percent of the out11 standing balance of the deferred par12 ticipation share of a loan made by a 

13 new 7(a) lender to a small business 

14 concern; and 

15 (ii) with respect to each loan guaran16 teed under section 7(a) of the Small Busi17 ness Act (15 U.S.C. 636(a)), the Adminis18 trator shall, in lieu of the fee otherwise ap19 plicable under section 7(a)(18)(A) of the 

20 Small Business Act (15 U.S.C. 

21 636(a)(18)(A)), (including any additional 

22 fee under clause (iv) of that section 

23 7(a)(18)(A)) collect a guarantee fee in an 

24 amount equal to— 


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1 (I) 0.75 percent of the deferred 

2 participation share of a total loan 

3 amount that is not more than 

4 $150,000; 

5 (II) 2 percent of the deferred 

6 participation share of a total loan 

7 amount that is more than $150,000, 

8 and not more than $700,000; and 

9 (III) 2.5 percent of the deferred 

10 participation share of a total loan 

11 amount that is more than $700,000. 

12 (B) IMPLEMENTATION.—In carrying out 

13 this paragraph, the Administrator shall reduce 

14 the fees for a loan guaranteed under section 

15 7(a) of the Small Business Act (15 U.S.C. 

16 636(a)) to the maximum extent possible, sub17 ject to the availability of appropriations. 

18 (C) APPLICATION OF FEE REDUCTIONS.— 

19 If funds are made available to carry out this 

20 paragraph, the Administrator shall reduce the 

21 fees under subparagraph (A) for any loan guar22 antee or project subject to such subparagraph 

23 for which the application is pending approval on 

24 or after the date of enactment of this Act, until 


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1 the amount provided for such purpose is ex2 pended. 

3 (D) AUTHORIZATION OF APPROPRIA4 TIONS.—There are authorized to be appro5 priated to the Administrator for each of fiscal 

6 years 2009 and 2010— 

7 (i) $175,000,000 to carry out sub8 paragraph (A)(i); 

9 (ii) $75,000,000 to carry out subpara10 graph (A)(ii). 

11 (3) 504 LOAN FEE AND RATE REDUCTIONS.— 

12 (A) FEE REDUCTIONS.— 

13 (i) FEE REDUCTIONS.—To the extent 

14 the cost of such reduction in fees is offset 

15 by appropriations, for any loan guarantee 

16 or project for which an application is 

17 closed on or after the date of enactment of 

18 this Act— 

19 (I) with respect to an institution 

20 described in subclause (I), (II), or 

21 (III) of section 502(3)(B)(i) of the 

22 Small Business Investment Act of 

23 1958 (15 U.S.C. 696(3)(B)(i)), the 

24 Administrator shall, in lieu of the fees 

25 otherwise applicable under section 


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1 503(d)(2) of the Small Business In2 vestment Act of 1958 (15 U.S.C. 

3 697(d)(2)), collect no fee; 

4 (II) a development company 

5 shall, in lieu of the mandatory 0.625 

6 servicing fee under section 

7 120.971(a)(3) of title 13, Code of 

8 Federal Regulations, (relating to fees 

9 paid by borrowers), or any successor 

10 thereto, collect no fee; and 

11 (III) the Administrator shall, in 

12 lieu of the fee otherwise applicable 

13 under section 503(d)(3) of the Small 

14 Business Investment Act (15 U.S.C. 

15 697(d)(3)), collect no fee. 

16 (ii) REIMBURSEMENT FOR WAIVED

17 FEES.— 

18 (I) IN GENERAL.—To the extent 

19 the cost of such payments is offset by 

20 appropriations, the Administrator 

21 shall reimburse each development 

22 company that does not collect a serv23 icing fee pursuant to clause (i)(II). 

24 (II) AMOUNT.—The payment to 

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1 clause (I) shall be in an amount equal 

2 to 0.5 percent of the outstanding 

3 principal balance of any guaranteed 

4 debenture for which the development 

5 company does not collect a servicing 

6 fee pursuant to clause (i)(II). 

7 (iii) AUTHORIZATION OF APPROPRIA8 TIONS.—There are authorized to be appro9 priated to the Administrator for each of 

10 fiscal years 2009 and 2010— 

11 (I) $50,000,000 for the elimi12 nation of fees under clause (i)(I); 

13 (II) $40,000,000 for payments 

14 under clause (ii) to offset the elimi15 nation of fees under clause (i)(II); 

16 and 

17 (III) $10,000,000 for the elimi18 nation of fees under clause (i)(III). 

19 (B) RATE REDUCTION.— 

20 (i) IN GENERAL.—To the extent that 

21 the cost of making an interest rate reduc22 tion is offset by appropriations, the Admin23 istrator shall pay, on behalf of a small 

24 business borrower, an amount equal to 100 

25 basis points of the interest rate required to 


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1 be paid by the borrower on the amount of 

2 the guarantee provided under title V of the 

3 Small Business Investment Act of 1958 

4 (15 U.S.C. 695 et seq.), if the loan is 

5 closed on or after the date of enactment of 

6 this Act. 

7 (ii) FREQUENCY OF PAYMENT.—The 

8 Administrator shall make a payment under 

9 clause (i) on a semiannual basis. 

10 (iii) METHOD OF PAYMENT.—The Ad11 ministrator may use a central servicing 

12 agent to make a payment under clause (i). 

13 (iv) NOTICE TO DEVELOPMENT COM14 PANY.—The Administrator shall notify a 

15 development company that receives a pay16 ment under clause (i) when funds are 

17 made available for the rate reduction under 

18 clause (i). 

19 (v) IMPLEMENTATION.—A develop20 ment company that receives a payment 

21 under clause (i) shall— 

22 (I) use the payments solely for 

23 the purpose provided; and 


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1 (II) adjust the amount of the 

2 monthly payment by the borrower ac3 cordingly. 

4 (vi) AUTHORIZATION OF APPROPRIA5 TIONS.—There is authorized to be appro6 priated to the Administrator for each of 

7 fiscal years 2009 and 2010, $150,000,000 

8 for payments made under clause (i). 

9 SEC. 7. MICROLENDING. 

10 In addition to any amounts otherwise authorized to 

11 be appropriated for such purposes, there are authorized 

12 to be appropriated to the Administrator for each of fiscal 

13 years 2009 and 2010— 

14 (1) $5,000,000 for direct loans under section 

15 7(m) of the Small Business Act (15 U.S.C. 636(m)); 

16 and 

17 (2) $20,000,000 for grants to intermediaries 

18 for marketing, management, and technical assistance 

19 under section 7(m)(4) of the Small Business Act (15 

20 U.S.C. 636(m)(4)). 

21 SEC. 8. SMALL BUSINESS INVESTMENT COMPANIES. 

22 Section 303(b) of the Small Business Investment Act 

23 of 1958 (15 U.S.C. 683(b)) is amended— 

24 (1) by striking paragraph (2) and inserting the 

25 following: 


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1 ‘‘(2) MAXIMUM LEVERAGE.— 

2 ‘‘(A) IN GENERAL.—The maximum 

3 amount of outstanding leverage made available 

4 to any 1 company licensed under section 301(c) 

5 may not exceed the lesser of— 

6 ‘‘(i) 300 percent of the private capital 

7 of the company; or 

8 ‘‘(ii) $150,000,000. 

9 ‘‘(B) MULTIPLE LICENSES UNDER COM10 MON CONTROL.—The maximum amount of out11 standing leverage made available to 2 or more 

12 companies licensed under section 301(c) that 

13 are commonly controlled (as determined by the 

14 Administrator) and the private capital of which 

15 the Administrator determines meets the re16 quirements of subsection (e) may not exceed 

17 $225,000,000.’’; and 

18 (2) by striking paragraph (4). 

19 SEC. 9. EMERGENCY SMALL BUSINESS LENDING ADVER20 TISING STRATEGY. 

21 Section 4 of the Small Business Act (15 U.S.C. 633) 

22 is amended by adding at the end the following: 

23 ‘‘(i) EMERGENCY SMALL BUSINESS LENDING AD24 VERTISING STRATEGY.— 


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1 ‘‘(1) PURPOSE.—The purpose of this subsection 

2 is to ensure that the Administrator provides infor3 mation to the owners of small business concerns re4 garding lenders in their areas that participate in 

5 programs of the Administration and that will allow 

6 small business concerns to access business capital 

7 during a liquidity and capital lending shortage. 

8 ‘‘(2) LENDING ADVERTISING STRATEGY.—The 

9 Administrator shall develop an emergency small 

10 business lending advertising strategy to inform small 

11 business concerns located throughout the United 

12 States that loans under this Act are available 

13 through lenders that participate in programs of the 

14 Administration. 

15 ‘‘(3) MEDIA.—The Administrator shall use 

16 print, radio, television, and Internet advertisement, 

17 where appropriate, to carry out this subsection. 

18 ‘‘(4) EFFECTIVE DATE.—Not later than 30 

19 days after the date of enactment of this Act, the Ad20 ministrator shall implement the emergency small 

21 business lending advertising strategy. 

22 ‘‘(5) AUTHORIZATION OF APPROPRIATIONS.— 

23 There are authorized to be appropriated to carry out 

24 this subsection— 


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1 ‘‘(A) $5,000,000 for each of fiscal years 

2 2009 and 2010; and 

3 ‘‘(B) such sums as may be necessary for 

4 each fiscal year thereafter.’’. 

5 SEC. 10. TAX PROVISIONS. 

6 (a) EXTENSION OF TEMPORARY INCREASE IN LIMI7 TATIONS ON EXPENSING OF CERTAIN DEPRECIABLE

8 BUSINESS ASSETS.— 

9 (1) IN GENERAL.—Paragraph (7) of section 

10 179(b) of the Internal Revenue Code of 1986 is 

11 amended— 

12 (A) by inserting ‘‘AND 2009’’ after ‘‘2008’’ 

13 in the heading, and 

14 (B) by inserting ‘‘or 2009’’ after ‘‘In the 

15 case of any taxable year beginning in 2008’’. 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply to taxable years begin18 ning after December 31, 2008. 

19 (b) CARRYBACK OF CERTAIN NET OPERATING

20 LOSSES ALLOWED FOR 5 YEARS; TEMPORARY SUSPEN21 SION OF 90 PERCENT AMT LIMIT.— 

22 (1) IN GENERAL.—Subparagraph (H) of section 

23 172(b)(1) of the Internal Revenue Code of 1986 is 

24 amended to read as follows: 


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1 ‘‘(H) 5-YEAR CARRYBACK OF CERTAIN

2 LOSSES.— 

3 ‘‘(i) TAXABLE YEARS ENDING DURING

4 2001 AND 2002.—In the case of a net oper5 ating loss for any taxable year ending dur6 ing 2001 or 2002, subparagraph (A)(i) 

7 shall be applied by substituting ‘5’ for ‘2’ 

8 and subparagraph (F) shall not apply. 

9 ‘‘(ii) TAXABLE YEARS ENDING DUR10 ING 2008 AND 2009.—In the case of a net 

11 operating loss with respect to any eligible 

12 taxpayer for any taxable year ending dur13 ing 2008 or 2009— 

14 ‘‘(I) subparagraph (A)(i) shall be 

15 applied by substituting ‘5’ for ‘2’, 

16 ‘‘(II) subparagraph (E)(ii) shall 

17 be applied by substituting ‘4’ for ‘2’, 

18 and 

19 ‘‘(III) subparagraph (F) shall not 

20 apply. 

21 ‘‘(iii) ELIGIBLE TAXPAYER.—For pur22 poses of clause (ii), the term ‘eligible tax23 payer’ means a corporation or partnership 

24 which meets the gross receipts test of sec25 tion 448(c) (determined by substituting 


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1 ‘$10,000,000’ for ‘$5,000,000’ and ‘5-tax2 able-year period’ for ‘3-taxable-year pe3 riod’) for the taxable year in which the loss 

4 arose (or, in the case of a sole proprietor5 ship, which would meet such test if such 

6 proprietorship were a corporation.’’. 

7 (2) TEMPORARY SUSPENSION OF 90 PERCENT

8 LIMIT ON CERTAIN NOL CARRYBACKS AND

9 CARRYOVERS.— 

10 (A) IN GENERAL.—Section 56(d) of the of 

11 the Internal Revenue Code of 1986 is amended 

12 by adding at the end the following new para13 graph: 

14 ‘‘(3) ADDITIONAL ADJUSTMENTS.—For pur15 poses of paragraph (1)(A), in the case of an eligible 

16 taxpayer (as defined in section 172(b)(1)(H)(iii)), 

17 the amount described in clause (I) of paragraph 

18 (1)(A)(ii) shall be increased by the amount of the 

19 net operating loss deduction allowable for the tax20 able year under section 172 attributable to the sum 

21 of— 

22 ‘‘(A) carrybacks of net operating losses 

23 from taxable years ending during 2008 and 

24 2009, and 


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1 ‘‘(B) carryovers of net operating losses to 

2 taxable years ending during 2008 or 2009.’’. 

3 (B) CONFORMING AMENDMENT.—Sub4 clause (I) of section 56(d)(1)(A)(i) of such Code 

5 is amended by inserting ‘‘amount of such’’ be6 fore ‘‘deduction described in clause (ii)(I)’’. 

7 (3) ANTI-ABUSE RULES.—The Secretary of 

8 Treasury or the Secretary’s designee shall prescribe 

9 such rules as are necessary to prevent the abuse of 

10 the purposes of the amendments made by this sub11 section, including anti-stuffing rules, anti-churning 

12 rules (including rules relating to sale-leasebacks), 

13 and rules similar to the rules under section 1091 of 

14 the Internal Revenue Code of 1986 relating to losses 

15 from wash sales. 

16 (4) EFFECTIVE DATES.— 

17 (A) SUBSECTION (a).—The amendments 

18 made by paragraph (1) shall apply to net oper19 ating losses arising in taxable years ending in 

20 2008 or 2009. 

21 (B) SUBSECTION (b).—The amendments 

22 made by paragraph (2) shall apply to taxable 

23 years ending after December 31, 2007. 


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1 SEC. 11. TROUBLED ASSETS. 

2 Section 3(9) of the Emergency Economic Stabiliza3 tion Act of 2008 (division A of Public Law 110–343) is 

4 amended— 

5 (1) in subparagraph (A), by striking ‘‘and’’ at 

6 the end; 

7 (2) by redesignating subparagraph (B) as sub8 paragraph (C); and 

9 (3) by inserting after subparagraph (A) the fol10 lowing: 

11 ‘‘(B) a trust certificate issued by the Ad12 ministrator of the Small Business Administra13 tion under section 5(g) of the Small Business 

14 Act (15 U.S.C. 634(g)), a loan guaranteed by 

15 the Small Business Administration under sec16 tion 7(a) of the Small Business Act (15 U.S.C. 

17 636(a)), and a trust certificate issued under 

18 section 505 of the Small Business Investment 

19 Act of 1958 (15 U.S.C. 697), including an un20 derlying debenture, the purchase of which the 

21 Secretary determines promotes financial market 

22 stability; and’’. 

Æ 


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