I 

111TH CONGRESS 

2D SESSION H. R. 5412 

To amend the Small Business Investment Act of 1958 to increase maximum 

loan amounts under the program in title V of that Act, to provide 

temporary authority for debt refinancing of commercial real estate, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2010 

Ms. BEAN (for herself, Mrs. DAHLKEMPER, Mr. PETERS, Mr. MURPHY of 

New York, Mr. QUIGLEY, Mr. BRIGHT, Ms. MARKEY of Colorado, Mr. 

MICHAUD, Mr. LIPINSKI, Mr. ELLSWORTH, Mr. POLIS of Colorado, Mr. 

COOPER, Mr. KLEIN of Florida, Mr. MOORE of Kansas, Mr. HILL, Mr. 

WELCH, and Mrs. HALVORSON) introduced the following bill; which was 

referred to the Committee on Small Business 

A BILL 

To amend the Small Business Investment Act of 1958 to 

increase maximum loan amounts under the program in 

title V of that Act, to provide temporary authority for 

debt refinancing of commercial real estate, 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. 

4 This Act may be cited as the ‘‘Small Business Asset 

5 Investment and Modernization (AIM) Act of 2010’’. 


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1 SEC. 2. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM. 

2 Section 502(2)(A) of the Small Business Investment 

3 Act of 1958 (15 U.S.C. 696(2)(A)) is amended— 

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

5 inserting ‘‘$5,000,000’’; 

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

7 inserting ‘‘$5,000,000’’; 

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

9 inserting ‘‘$5,500,000’’; 

10 (4) in clause (iv), by striking ‘‘$4,000,000’’ and 

11 inserting ‘‘$5,500,000’’; and 

12 (5) in clause (v), by striking ‘‘$4,000,000’’ and 

13 inserting ‘‘$5,500,000’’. 

14 SEC. 3. LOW-INTEREST REFINANCING UNDER THE LOCAL 

15 DEVELOPMENT BUSINESS LOAN PROGRAM. 

16 Section 502 of the Small Business Investment Act 

17 of 1958 (15 U.S.C. 696) is amended by adding at the end 

18 the following: 

19 ‘‘(8) TEMPORARY AUTHORITY FOR DEBT REFI20 NANCING OF COMMERCIAL REAL ESTATE.— 

21 ‘‘(A) IN GENERAL.—During the period be22 ginning on the date of enactment of this para23 graph and ending on September 30, 2012, not24 withstanding paragraph (7), the Administrator 

25 may approve, for financing under this title, the 

26 refinancing of indebtedness that is secured by a 


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1 lien on commercial real estate or equipment of 

2 a small business concern under such terms and 

3 conditions as the Administrator determines ap4 propriate, except at a minimum such terms and 

5 conditions shall include the following: 

6 ‘‘(i) The existing indebtedness is ma7 turing not more than one year after the 

8 loan approval date. 

9 ‘‘(ii) The proceeds of the existing in10 debtedness were used to acquire land, in11 cluding a building situated thereon, to con12 struct a building thereon, or to purchase 

13 equipment. 

14 ‘‘(iii) The small business concern has 

15 been current on all payments due on the 

16 existing indebtedness for a period begin17 ning on a date that is not less than 1 year 

18 before the date of refinancing and ending 

19 on the date of refinancing. 

20 ‘‘(iv) At the time of refinancing, the 

21 lien shall be assigned or released in a man22 ner that ensures that the financing under 

23 this title is in the same lien position as the 

24 existing indebtedness. 


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1 ‘‘(v) The existing indebtedness was in2 curred for the benefit of the small business 

3 concern. 

4 ‘‘(vi) The financing under this title 

5 will be used only for refinancing existing 

6 indebtedness or costs relating to such refi7 nancing. 

8 ‘‘(vii) The amount being refinanced 

9 may not exceed 90 percent of the ap10 praised value of the commercial real estate 

11 or equipment on the date of refinancing or 

12 100 percent of the outstanding principal 

13 amount of the existing indebtedness, 

14 whichever is less, plus allowable closing 

15 costs as determined by the Administrator. 

16 ‘‘(viii) Notwithstanding any other pro17 vision of this title, for a refinancing under 

18 this paragraph— 

19 ‘‘(I) not less than 50 percent of 

20 the appraised value of the commercial 

21 real estate or equipment on the date 

22 of refinancing shall come from the in23 stitutions described in subclauses (I), 

24 (II) or (III) of paragraph (3)(B)(i): 

25 Provided, That if the indebtedness 


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1 being refinanced pursuant to this 

2 paragraph is held by such an institu3 tion, or an affiliate thereof, that is 

4 providing funds for the refinancing, 

5 the institution shall contribute not 

6 less than 70 percent of such appraised 

7 value of the commercial real estate or 

8 equipment; and 

9 ‘‘(II) the remaining funds needed 

10 for the refinancing (including closing 

11 costs) shall come from the develop12 ment company. 

13 ‘‘(ix) In addition to the other fees im14 posed under this title, the Administrator 

15 shall assess, collect, and retain such annual 

16 fees in amounts necessary to reduce to 

17 zero the cost (as that term is defined in 

18 section 502 of the Federal Credit Reform 

19 Act of 1990) to the Administrator of mak20 ing guarantees under the authority of sec21 tion 503(a) with respect to refinancings 

22 under this paragraph. 

23 ‘‘(x) The temporary fee elimination 

24 authorized under section 501(b) of the 

25 American Recovery and Reinvestment Act 


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1 of 2009, Public Law 111–5, shall not 

2 apply to any refinancing made under this 

3 paragraph. 

4 ‘‘(xi) No fee reduction or elimination 

5 applicable to loans under this title shall 

6 apply to loans under this paragraph. 

7 ‘‘(xii) No portion of the indebtedness 

8 may be subject to a guarantee by a Fed9 eral agency. 

10 ‘‘(xiii) The development company may 

11 charge the small business concern a proc12 essing fee of up to 50 basis points more 

13 than the amount that the Administrator 

14 authorizes under section 120.971(a)(1) of 

15 title 13, Code of Federal Regulations, as in 

16 effect on January 1, 2010. 

17 ‘‘(B) TOTAL AMOUNT OF LOANS.—The Ad18 ministrator may provide not more than a total 

19 of $7,500,000,000 of financing under this para20 graph for each fiscal year. 

21 ‘‘(C) NONDELEGATION.—Notwithstanding 

22 section 508(e) of this title, the Administrator 

23 may not permit a premier certified lender to ap24 prove or disapprove an application for assist25 ance under this paragraph. 


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1 ‘‘(D) TERM APPOINTMENTS.— 

2 ‘‘(i) To carry out the authority under 

3 this paragraph, the Administrator may au4 thorize term appointments within the Ad5 ministration under subchapter I of chapter 

6 33 of title 5, United States Code, for a pe7 riod of not less than 1 year and not more 

8 than 6 years. 

9 ‘‘(ii) Notwithstanding chapter 33 of 

10 title 5, United States Code, or any other 

11 provision of law relating to the examina12 tion, certification, and appointment of indi13 viduals in the competitive service, the Ad14 ministrator may convert an employee serv15 ing under a term appointment to a perma16 nent appointment in the competitive serv17 ice within the Administration without fur18 ther competition if— 

19 ‘‘(I) such individual was ap20 pointed under open, competitive exam21 ination under subchapter I of chapter 

22 33 of title 5, United States Code, to 

23 the term position; 

24 ‘‘(II) the announcement for the 

25 term appointment from which the conVerDate Mar 15 2010 20:29 May 27, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5412.IH H5412

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1 version is made stated that there was 

2 potential for subsequent conversion to 

3 a career-conditional or career appoint4 ment; 

5 ‘‘(III) the employee has com6 pleted at least 2 years of current con7 tinuous service under a term appoint8 ment in the competitive service; 

9 ‘‘(IV) the employee’s performance 

10 under such term appointment was at 

11 least fully successful or equivalent; 

12 and 

13 ‘‘(V) the position to which such 

14 employee is being converted under this 

15 section is in the same occupational se16 ries, is in the same geographic loca17 tion, and provides no greater pro18 motion potential than the term posi19 tion for which the competitive exam20 ination was conducted. 

21 ‘‘(iii) Notwithstanding chapter 33 of 

22 title 5, United States Code, or any other 

23 provision of law relating to the examina24 tion, certification, and appointment of indi25 viduals in the competitive service, the AdVerDate Mar 15 2010 20:29 May 27, 2010 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H5412.IH H5412

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1 ministrator may convert an employee serv2 ing under a term appointment to a perma3 nent appointment in the competitive serv4 ice within the Administration through in5 ternal competitive promotion procedures if 

6 the conditions under subclauses (I) 

7 through (IV) of subparagraph (D)(ii) are 

8 met. 

9 ‘‘(iv) An employee converted under 

10 this subparagraph becomes a career-condi11 tional employee, unless the employee has 

12 otherwise completed the service require13 ments for career tenure. 

14 ‘‘(v) An employee converted to career 

15 or career-conditional employment under 

16 this subparagraph acquires competitive 

17 status upon conversion. 

18 ‘‘(E) ELIMINATION OF PENSION OFFSET

19 FOR CERTAIN REHIRED FEDERAL RETIREES.— 

20 ‘‘(i) IN GENERAL.—To carry out the 

21 authority under this paragraph, the Ad22 ministrator may waive the application of 

23 section 8344 or 8468 of title 5, United 

24 States Code, on a case-by-case basis for 

25 employment of an annuitant. 


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1 ‘‘(ii) PROCEDURES.—The Adminis2 trator shall prescribe procedures for the 

3 exercise of authority under this subpara4 graph, including— 

5 ‘‘(I) criteria for any exercise of 

6 authority; and 

7 ‘‘(II) procedures for a delegation 

8 of authority. 

9 ‘‘(iii) EFFECT OF WAIVER.—An em10 ployee as to whom a waiver under this sub11 paragraph is in effect shall not be consid12 ered an employee for purposes of sub13 chapter III of chapter 83, or chapter 84, 

14 of title 5, United States Code. 

15 ‘‘(F) EMERGENCY RULEMAKING AUTHOR16 ITY.— 

17 ‘‘(i) The Administrator shall— 

18 ‘‘(I) not later than 90 days after 

19 the date of enactment of the Small 

20 Business Asset Investment and Mod21 ernization (AIM) Act of 2010, without 

22 providing notice or opportunity for 

23 comment, issue interim regulations 

24 implementing this paragraph; and 


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1 ‘‘(II) not later than 180 days 

2 after the date of enactment of the 

3 Small Business Asset Investment and 

4 Modernization (AIM) Act of 2010, 

5 after providing notice and opportunity 

6 for comment, issue final regulations 

7 implementing this paragraph. 

8 ‘‘(ii) The interim regulations issued 

9 under clause (i)(I) shall cease to be effec10 tive on the date that the Administrator 

11 issues final regulations under clause 

12 (i)(II).’’. 

Æ 


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