In the Senate of the United States, 

September 16, 2010. 

Resolved, That the bill from the House of Representatives (H.R. 5297) entitled ‘‘An Act to create the Small Business Lending Fund Program to direct the Secretary of the 

Treasury to make capital investments in eligible institutions 

in order to increase the availability of credit for small businesses, to amend the Internal Revenue Code of 1986 to provide tax incentives for small business job creation, and for 

other purposes.’’, do pass with the following 

AMENDMENT: 

Strike all after the enacting clause and insert the 

following: 

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Small Business Jobs 

3 Act of 2010’’. 

4 SEC. 2. TABLE OF CONTENTS. 

5 The table of contents for this Act is as follows: 

Sec. 1. Short title. 

Sec. 2. Table of contents. 
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† HR 5297 EAS 

TITLE I—SMALL BUSINESSES 

Sec. 1001. Definitions. 

Subtitle A—Small Business Access to Credit 

Sec. 1101. Short title. 

PART I—NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

Sec. 1111. Section 7(a) business loans. 

Sec. 1112. Maximum loan amounts under 504 program. 

Sec. 1113. Maximum loan limits under microloan program. 

Sec. 1114. Loan guarantee enhancement extensions. 

Sec. 1115. New Markets Venture Capital company investment limitations. 

Sec. 1116. Alternative size standards. 

Sec. 1117. Sale of 7(a) loans in secondary market. 

Sec. 1118. Online lending platform. 

Sec. 1119. SBA Secondary Market Guarantee Authority. 

PART II—SMALL BUSINESS ACCESS TO CAPITAL

Sec. 1122. Low-interest refinancing under the local development business loan 

program. 

PART III—OTHER MATTERS

Sec. 1131. Small business intermediary lending pilot program. 

Sec. 1132. Public policy goals. 

Sec. 1133. Floor plan pilot program extension. 

Sec. 1134. Guarantees for bonds and notes issued for community or economic development purposes. 

Sec. 1135. Temporary express loan enhancement. 

Sec. 1136. Prohibition on using TARP funds or tax increases. 

Subtitle B—Small Business Trade and Exporting 

Sec. 1201. Short title. 

Sec. 1202. Definitions. 

Sec. 1203. Office of International Trade. 

Sec. 1204. Duties of the Office of International Trade. 

Sec. 1205. Export assistance centers. 

Sec. 1206. International trade finance programs. 

Sec. 1207. State Trade and Export Promotion Grant Program. 

Sec. 1208. Rural export promotion. 

Sec. 1209. International trade cooperation by small business development centers. 

Subtitle C—Small Business Contracting 

PART I—CONTRACT BUNDLING

Sec. 1311. Small Business Act. 

Sec. 1312. Leadership and oversight. 

Sec. 1313. Consolidation of contract requirements. 

Sec. 1314. Small business teams pilot program. 

PART II—SUBCONTRACTING INTEGRITY

Sec. 1321. Subcontracting misrepresentations. 
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Sec. 1322. Small business subcontracting improvements. 

PART III—ACQUISITION PROCESS

Sec. 1331. Reservation of prime contract awards for small businesses. 

Sec. 1332. Micro-purchase guidelines. 

Sec. 1333. Agency accountability. 

Sec. 1334. Payment of subcontractors. 

Sec. 1335. Repeal of Small Business Competitiveness Demonstration Program. 

PART IV—SMALL BUSINESS SIZE AND STATUS INTEGRITY

Sec. 1341. Policy and presumptions. 

Sec. 1342. Annual certification. 

Sec. 1343. Training for contracting and enforcement personnel. 

Sec. 1344. Updated size standards. 

Sec. 1345. Study and report on the mentor-protege program. 

Sec. 1346. Contracting goals reports. 

Sec. 1347. Small business contracting parity. 

Subtitle D—Small Business Management and Counseling Assistance 

Sec. 1401. Matching requirements under small business programs. 

Sec. 1402. Grants for SBDCs. 

Subtitle E—Disaster Loan Improvement 

Sec. 1501. Aquaculture business disaster assistance. 

Subtitle F—Small Business Regulatory Relief 

Sec. 1601. Requirements providing for more detailed analyses. 

Sec. 1602. Office of advocacy. 

Subtitle G—Appropriations Provisions 

Sec. 1701. Salaries and expenses. 

Sec. 1702. Business loans program account. 

Sec. 1703. Community Development Financial Institutions Fund program account. 

Sec. 1704. Small business loan guarantee enhancement extensions. 

TITLE II—TAX PROVISIONS 

Sec. 2001. Short title. 

Subtitle A—Small Business Relief 

PART I—PROVIDING ACCESS TO CAPITAL

Sec. 2011. Temporary exclusion of 100 percent of gain on certain small business 

stock. 

Sec. 2012. General business credits of eligible small businesses for 2010 carried 

back 5 years. 

Sec. 2013. General business credits of eligible small businesses in 2010 not subject 

to alternative minimum tax. 

Sec. 2014. Temporary reduction in recognition period for built-in gains tax. 
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PART II—ENCOURAGING INVESTMENT

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain real property treated as section 179 property. 

Sec. 2022. Additional first-year depreciation for 50 percent of the basis of certain 

qualified property. 

Sec. 2023. Special rule for long-term contract accounting. 

PART III—PROMOTING ENTREPRENEURSHIP

Sec. 2031. Increase in amount allowed as deduction for start-up expenditures in 

2010. 

Sec. 2032. Authorization of appropriations for the United States Trade Representative to develop market access opportunities for United 

States small- and medium-sized businesses and to enforce trade 

agreements. 

PART IV—PROMOTING SMALL BUSINESS FAIRNESS

Sec. 2041. Limitation on penalty for failure to disclose reportable transactions 

based on resulting tax benefits. 

Sec. 2042. Deduction for health insurance costs in computing self-employment 

taxes in 2010. 

Sec. 2043. Removal of cellular telephones and similar telecommunications equipment from listed property. 

Subtitle B—Revenue Provisions 

PART I—REDUCING THE TAX GAP

Sec. 2101. Information reporting for rental property expense payments. 

Sec. 2102. Increase in information return penalties. 

Sec. 2103. Report on tax shelter penalties and certain other enforcement actions. 

Sec. 2104. Application of continuous levy to tax liabilities of certain Federal contractors. 

PART II—PROMOTING RETIREMENT PREPARATION

Sec. 2111. Participants in government section 457 plans allowed to treat elective 

deferrals as Roth contributions. 

Sec. 2112. Rollovers from elective deferral plans to designated Roth accounts. 

Sec. 2113. Special rules for annuities received from only a portion of a contract. 

PART III—CLOSING UNINTENDED LOOPHOLES

Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer credit. 

Sec. 2122. Source rules for income on guarantees. 

PART IV—TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

Sec. 2131. Time for payment of corporate estimated taxes. 

TITLE III—STATE SMALL BUSINESS CREDIT INITIATIVE 

Sec. 3001. Short title. 

Sec. 3002. Definitions. 

Sec. 3003. Federal funds allocated to States. 

Sec. 3004. Approving States for participation. 

Sec. 3005. Approving State capital access programs. 
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Sec. 3006. Approving collateral support and other innovative credit access and 

guarantee initiatives for small businesses and manufacturers. 

Sec. 3007. Reports. 

Sec. 3008. Remedies for State program termination or failures. 

Sec. 3009. Implementation and administration. 

Sec. 3010. Regulations. 

Sec. 3011. Oversight and audits. 

TITLE IV—ADDITIONAL SMALL BUSINESS PROVISIONS 

Subtitle A—Small Business Lending Fund 

Sec. 4101. Purpose. 

Sec. 4102. Definitions. 

Sec. 4103. Small business lending fund. 

Sec. 4104. Additional authorities of the Secretary. 

Sec. 4105. Considerations. 

Sec. 4106. Reports. 

Sec. 4107. Oversight and audits. 

Sec. 4108. Credit reform; funding. 

Sec. 4109. Termination and continuation of authorities. 

Sec. 4110. Preservation of authority. 

Sec. 4111. Assurances. 

Sec. 4112. Study and report with respect to women-owned, veteran-owned, and 

minority-owned businesses. 

Sec. 4113. Sense of Congress. 

Subtitle B—Other Provisions 

PART I—SMALL BUSINESS EXPORT PROMOTION INITIATIVES

Sec. 4221. Short title. 

Sec. 4222. Global business development and promotion activities of the Department of Commerce. 

Sec. 4223. Additional funding to improve access to global markets for rural businesses. 

Sec. 4224. Additional funding for the ExporTech program. 

Sec. 4225. Additional funding for the market development cooperator program of 

the Department of Commerce. 

Sec. 4226. Hollings Manufacturing Partnership Program; Technology Innovation 

Program. 

Sec. 4227. Sense of the Senate concerning Federal collaboration with States on 

export promotion issues. 

Sec. 4228. Report on tariff and nontariff barriers. 

PART II—MEDICARE FRAUD

Sec. 4241. Use of predictive modeling and other analytics technologies to identify 

and prevent waste, fraud, and abuse in the Medicare fee-for-service program. 

TITLE V—BUDGETARY PROVISIONS 

Sec. 5001. Determination of budgetary effects. 
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1 TITLE I—SMALL BUSINESSES 

2 SEC. 1001. DEFINITIONS. 

3 In this title— 

4 (1) the terms ‘‘Administration’’ and ‘‘Adminis5 trator’’ mean the Small Business Administration and 

6 the Administrator thereof, respectively; and 

7 (2) the term ‘‘small business concern’’ has the 

8 meaning given that term under section 3 of the Small 

9 Business Act (15 U.S.C. 632). 

10 Subtitle A—Small Business Access 

11 to Credit 

12 SEC. 1101. SHORT TITLE. 

13 This subtitle may be cited as the ‘‘Small Business Job 

14 Creation and Access to Capital Act of 2010’’. 

15 PART I—NEXT STEPS FOR MAIN STREET CREDIT 

16 AVAILABILITY 

17 SEC. 1111. SECTION 7(a) BUSINESS LOANS. 

18 (a) AMENDMENT.—Section 7(a) of the Small Business 

19 Act (15 U.S.C. 636(a)) is amended— 

20 (1) in paragraph (2)(A)— 

21 (A) in clause (i), by striking ‘‘75 percent’’ 

22 and inserting ‘‘90 percent’’; and 

23 (B) in clause (ii), by striking ‘‘85 percent’’ 

24 and inserting ‘‘90 percent’’; and 
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1 (2) in paragraph (3)(A), by striking ‘‘$1,500,000 

2 (or if the gross loan amount would exceed $2,000,000’’ 

3 and inserting ‘‘$4,500,000 (or if the gross loan 

4 amount would exceed $5,000,000’’. 

5 (b) PROSPECTIVE REPEAL.—Effective January 1, 

6 2011, section 7(a) of the Small Business Act (15 U.S.C. 

7 636(a)) is amended— 

8 (1) in paragraph (2)(A)— 

9 (A) in clause (i), by striking ‘‘90 percent’’ 

10 and inserting ‘‘75 percent’’; and 

11 (B) in clause (ii), by striking ‘‘90 percent’’ 

12 and inserting ‘‘85 percent’’; and 

13 (2) in paragraph (3)(A), by striking 

14 ‘‘$4,500,000’’ and inserting ‘‘$3,750,000’’. 

15 SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM. 

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

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

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

19 inserting ‘‘$5,000,000’’; 

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

21 inserting ‘‘$5,000,000’’; 

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

23 inserting ‘‘$5,500,000’’; 

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

25 inserting ‘‘$5,500,000’’; and 
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1 (5) in clause (v), by striking ‘‘$4,000,000’’ and 

2 inserting ‘‘$5,500,000’’. 

3 SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN 

4 PROGRAM. 

5 Section 7(m) of the Small Business Act (15 U.S.C. 

6 636(m)) is amended— 

7 (1) in paragraph (1)(B)(iii), by striking 

8 ‘‘$35,000’’ and inserting ‘‘$50,000’’; 

9 (2) in paragraph (3)— 

10 (A) in subparagraph (C), by striking 

11 ‘‘$3,500,000’’ and inserting ‘‘$5,000,000’’; and 

12 (B) in subparagraph (E), by striking 

13 ‘‘$35,000’’ each place that term appears and in14 serting ‘‘$50,000’’; and 

15 (3) in paragraph (11)(B), by striking ‘‘$35,000’’ 

16 and inserting ‘‘$50,000’’. 

17 SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS. 

18 (a) FEES.—Section 501 of the American Recovery and 

19 Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 

20 151) is amended by striking ‘‘September 30, 2010’’ each 

21 place that term appears and inserting ‘‘December 31, 

22 2010’’. 

23 (b) LOAN GUARANTEES.—Section 502(f) of division A 

24 of the American Recovery and Reinvestment Act of 2009 
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1 (Public Law 111–5; 123 Stat. 153) is amended by striking 

2 ‘‘May 31, 2010’’ and inserting ‘‘December 31, 2010’’. 

3 SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY IN4 VESTMENT LIMITATIONS. 

5 Section 355 of the Small Business Investment Act of 

6 1958 (15 U.S.C. 689d) is amended by adding at the end 

7 the following: 

8 ‘‘(e) INVESTMENT LIMITATIONS.— 

9 ‘‘(1) DEFINITION.—In this subsection, the term 

10 ‘covered New Markets Venture Capital company’ 

11 means a New Markets Venture Capital company— 

12 ‘‘(A) granted final approval by the Admin13 istrator under section 354(e) on or after March 

14 1, 2002; and 

15 ‘‘(B) that has obtained a financing from the 

16 Administrator. 

17 ‘‘(2) LIMITATION.—Except to the extent approved 

18 by the Administrator, a covered New Markets Venture 

19 Capital company may not acquire or issue commit20 ments for securities under this title for any single en21 terprise in an aggregate amount equal to more than 

22 10 percent of the sum of— 

23 ‘‘(A) the regulatory capital of the covered 

24 New Markets Venture Capital company; and 
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1 ‘‘(B) the total amount of leverage projected 

2 in the participation agreement of the covered 

3 New Markets Venture Capital.’’. 

4 SEC. 1116. ALTERNATIVE SIZE STANDARDS. 

5 Section 3(a) of the Small Business Act (15 U.S.C. 

6 632(a)) is amended by adding at the end the following: 

7 ‘‘(5) ALTERNATIVE SIZE STANDARD.— 

8 ‘‘(A) IN GENERAL.—The Administrator shall es9 tablish an alternative size standard for applicants for 

10 business loans under section 7(a) and applicants for 

11 development company loans under title V of the Small 

12 Business Investment Act of 1958 (15 U.S.C. 695 et 

13 seq.), that uses maximum tangible net worth and av14 erage net income as an alternative to the use of indus15 try standards. 

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

17 the alternative size standard established under sub18 paragraph (A) is in effect, an applicant for a busi19 ness loan under section 7(a) or an applicant for a de20 velopment company loan under title V of the Small 

21 Business Investment Act of 1958 may be eligible for 

22 such a loan if— 

23 ‘‘(i) the maximum tangible net worth of the 

24 applicant is not more than $15,000,000; and 
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1 ‘‘(ii) the average net income after Federal 

2 income taxes (excluding any carry-over losses) of 

3 the applicant for the 2 full fiscal years before the 

4 date of the application is not more than 

5 $5,000,000.’’. 

6 SEC. 1117. SALE OF 7(a) LOANS IN SECONDARY MARKET. 

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

8 634(g)) is amended by adding at the end the following: 

9 ‘‘(6) If the amount of the guaranteed portion of any 

10 loan under section 7(a) is more than $500,000, the Admin11 istrator shall, upon request of a pool assembler, divide the 

12 loan guarantee into increments of $500,000 and 1 incre13 ment of any remaining amount less than $500,000, in order 

14 to permit the maximum amount of any loan in a pool to 

15 be not more than $500,000. Only 1 increment of any loan 

16 guarantee divided under this paragraph may be included 

17 in the same pool. Increments of loan guarantees to different 

18 borrowers that are divided under this paragraph may be 

19 included in the same pool.’’. 

20 SEC. 1118. ONLINE LENDING PLATFORM. 

21 It is the sense of Congress that the Administrator of 

22 the Small Business Administration should establish a 

23 website that— 

24 (1) lists each lender that makes loans guaranteed 

25 by the Small Business Administration and provides 
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1 information about the loan rates of each such lender; 

2 and 

3 (2) allows prospective borrowers to compare rates 

4 on loans guaranteed by the Small Business Adminis5 tration. 

6 SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHOR7 ITY. 

8 Section 503(f) of division A of the American Recovery 

9 and Reinvestment Act of 2009 (Public Law 111–5; 123 

10 Stat. 155) is amended by striking ‘‘on the date 2 years after 

11 the date of enactment of this section’’ and inserting ‘‘2 years 

12 after the date of the first sale of a pool of first lien position 

13 504 loans guaranteed under this section to a third-party 

14 investor’’. 

15 PART II—SMALL BUSINESS ACCESS TO CAPITAL 

16 SEC. 1122. LOW-INTEREST REFINANCING UNDER THE 

17 LOCAL DEVELOPMENT BUSINESS LOAN PRO18 GRAM. 

19 (a) REFINANCING.—Section 502(7) of the Small Busi20 ness Investment Act of 1958 (15 U.S.C. 696(7)) is amended 

21 by adding at the end the following: 

22 ‘‘(C) REFINANCING NOT INVOLVING EXPAN23 SIONS.— 

24 ‘‘(i) DEFINITIONS.—In this subpara25 graph— 
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1 ‘‘(I) the term ‘borrower’ means a 

2 small business concern that submits an 

3 application to a development company 

4 for financing under this subparagraph; 

5 ‘‘(II) the term ‘eligible fixed asset’ 

6 means tangible property relating to 

7 which the Administrator may provide 

8 financing under this section; and 

9 ‘‘(III) the term ‘qualified debt’ 

10 means indebtedness— 

11 ‘‘(aa) that— 

12 ‘‘(AA) was incurred not 

13 less than 2 years before the 

14 date of the application for 

15 assistance under this sub16 paragraph; 

17 ‘‘(BB) is a commercial 

18 loan; 

19 ‘‘(CC) is not subject to a 

20 guarantee by a Federal agen21 cy; 

22 ‘‘(DD) the proceeds of 

23 which were used to acquire 

24 an eligible fixed asset; 
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† HR 5297 EAS 

1 ‘‘(EE) was incurred for 

2 the benefit of the small busi3 ness concern; and 

4 ‘‘(FF) is collateralized 

5 by eligible fixed assets; and 

6 ‘‘(bb) for which the borrower 

7 has been current on all payments 

8 for not less than 1 year before the 

9 date of the application. 

10 ‘‘(ii) AUTHORITY.—A project that does 

11 not involve the expansion of a small busi12 ness concern may include the refinancing of 

13 qualified debt if— 

14 ‘‘(I) the amount of the financing 

15 is not more than 90 percent of the 

16 value of the collateral for the financing, 

17 except that, if the appraised value of 

18 the eligible fixed assets serving as col19 lateral for the financing is less than 

20 the amount equal to 125 percent of the 

21 amount of the financing, the borrower 

22 may provide additional cash or other 

23 collateral to eliminate any deficiency; 
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† HR 5297 EAS 

1 ‘‘(II) the borrower has been in op2 eration for all of the 2-year period end3 ing on the date of the loan; and 

4 ‘‘(III) for a financing for which 

5 the Administrator determines there 

6 will be an additional cost attributable 

7 to the refinancing of the qualified debt, 

8 the borrower agrees to pay a fee in an 

9 amount equal to the anticipated addi10 tional cost. 

11 ‘‘(iii) FINANCING FOR BUSINESS EX12 PENSES.— 

13 ‘‘(I) FINANCING FOR BUSINESS

14 EXPENSES.—The Administrator may 

15 provide financing to a borrower that 

16 receives financing that includes a refi17 nancing of qualified debt under clause 

18 (ii), in addition to the refinancing 

19 under clause (ii), to be used solely for 

20 the payment of business expenses. 

21 ‘‘(II) APPLICATION FOR FINANC22 ING.—An application for financing 

23 under subclause (I) shall include— 
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1 ‘‘(aa) a specific description 

2 of the expenses for which the addi3 tional financing is requested; and 

4 ‘‘(bb) an itemization of the 

5 amount of each expense. 

6 ‘‘(III) CONDITION ON ADDITIONAL

7 FINANCING.—A borrower may not use 

8 any part of the financing under this 

9 clause for non-business purposes. 

10 ‘‘(iv) LOANS BASED ON JOBS.— 

11 ‘‘(I) JOB CREATION AND RETEN12 TION GOALS.— 

13 ‘‘(aa) IN GENERAL.—The Ad14 ministrator may provide financ15 ing under this subparagraph for a 

16 borrower that meets the job cre17 ation goals under subsection (d) 

18 or (e) of section 501. 

19 ‘‘(bb) ALTERNATE JOB RE20 TENTION GOAL.—The Adminis21 trator may provide financing 

22 under this subparagraph to a bor23 rower that does not meet the goals 

24 described in item (aa) in an 

25 amount that is not more than the 
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† HR 5297 EAS 

1 product obtained by multiplying 

2 the number of employees of the 

3 borrower by $65,000. 

4 ‘‘(II) NUMBER OF EMPLOYEES.— 

5 For purposes of subclause (I), the num6 ber of employees of a borrower is equal 

7 to the sum of— 

8 ‘‘(aa) the number of full-time 

9 employees of the borrower on the 

10 date on which the borrower ap11 plies for a loan under this sub12 paragraph; and 

13 ‘‘(bb) the product obtained by 

14 multiplying— 

15 ‘‘(AA) the number of 

16 part-time employees of the 

17 borrower on the date on 

18 which the borrower applies 

19 for a loan under this sub20 paragraph; by 

21 ‘‘(BB) the quotient ob22 tained by dividing the aver23 age number of hours each 

24 part time employee of the 
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† HR 5297 EAS 

1 borrower works each week by 

2 40. 

3 ‘‘(v) NONDELEGATION.—Notwith4 standing section 508(e), the Administrator 

5 may not permit a premier certified lender 

6 to approve or disapprove an application for 

7 assistance under this subparagraph. 

8 ‘‘(vi) TOTAL AMOUNT OF LOANS.—The 

9 Administrator may provide not more than 

10 a total of $7,500,000,000 of financing under 

11 this subparagraph for each fiscal year.’’. 

12 (b) PROSPECTIVE REPEAL.—Effective 2 years after the 

13 date of enactment of this Act, section 502(7) of the Small 

14 Business Investment Act of 1958 (15 U.S.C. 696(7)) is 

15 amended by striking subparagraph (C). 

16 (c) TECHNICAL CORRECTION.—Section 502(2)(A)(i) of 

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

18 696(2)(A)(i)) is amended by striking ‘‘subparagraph (B) or 

19 (C)’’ and inserting ‘‘clause (ii), (iii), (iv), or (v)’’. 

20 PART III—OTHER MATTERS 

21 SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING 

22 PILOT PROGRAM. 

23 (a) IN GENERAL.—Section 7 of the Small Business Act 

24 (15 U.S.C. 636) is amended by striking subsection (l) and 

25 inserting the following: 
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† HR 5297 EAS 

1 ‘‘(l) SMALL BUSINESS INTERMEDIARY LENDING PILOT

2 PROGRAM.— 

3 ‘‘(1) DEFINITIONS.—In this subsection— 

4 ‘‘(A) the term ‘eligible intermediary’— 

5 ‘‘(i) means a private, nonprofit entity 

6 that— 

7 ‘‘(I) seeks or has been awarded a 

8 loan from the Administrator to make 

9 loans to small business concerns under 

10 this subsection; and 

11 ‘‘(II) has not less than 1 year of 

12 experience making loans to startup, 

13 newly established, or growing small 

14 business concerns; and 

15 ‘‘(ii) includes— 

16 ‘‘(I) a private, nonprofit commu17 nity development corporation; 

18 ‘‘(II) a consortium of private, 

19 nonprofit organizations or nonprofit 

20 community development corporations; 

21 and 

22 ‘‘(III) an agency of or nonprofit 

23 entity established by a Native Amer24 ican Tribal Government; and 
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† HR 5297 EAS 

1 ‘‘(B) the term ‘Program’ means the small 

2 business intermediary lending pilot program es3 tablished under paragraph (2). 

4 ‘‘(2) ESTABLISHMENT.—There is established a 3- 

5 year small business intermediary lending pilot pro6 gram, under which the Administrator may make di7 rect loans to eligible intermediaries, for the purpose 

8 of making loans to startup, newly established, and 

9 growing small business concerns. 

10 ‘‘(3) PURPOSES.—The purposes of the Program 

11 are— 

12 ‘‘(A) to assist small business concerns in 

13 areas suffering from a lack of credit due to poor 

14 economic conditions or changes in the financial 

15 market; and 

16 ‘‘(B) to establish a loan program under 

17 which the Administrator may provide loans to 

18 eligible intermediaries to enable the eligible 

19 intermediaries to provide loans to startup, newly 

20 established, and growing small business concerns 

21 for working capital, real estate, or the acquisi22 tion of materials, supplies, or equipment. 

23 ‘‘(4) LOANS TO ELIGIBLE INTERMEDIARIES.— 

24 ‘‘(A) APPLICATION.—Each eligible inter25 mediary desiring a loan under this subsection 
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† HR 5297 EAS 

1 shall submit an application to the Administrator 

2 that describes— 

3 ‘‘(i) the type of small business concerns 

4 to be assisted; 

5 ‘‘(ii) the size and range of loans to be 

6 made; 

7 ‘‘(iii) the interest rate and terms of 

8 loans to be made; 

9 ‘‘(iv) the geographic area to be served 

10 and the economic, poverty, and unemploy11 ment characteristics of the area; 

12 ‘‘(v) the status of small business con13 cerns in the area to be served and an anal14 ysis of the availability of credit; and 

15 ‘‘(vi) the qualifications of the applicant 

16 to carry out this subsection. 

17 ‘‘(B) LOAN LIMITS.—No loan may be made 

18 to an eligible intermediary under this subsection 

19 if the total amount outstanding and committed 

20 to the eligible intermediary by the Administrator 

21 would, as a result of such loan, exceed $1,000,000 

22 during the participation of the eligible inter23 mediary in the Program. 
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† HR 5297 EAS 

1 ‘‘(C) LOAN DURATION.—Loans made by the 

2 Administrator under this subsection shall be for 

3 a term of 20 years. 

4 ‘‘(D) APPLICABLE INTEREST RATES.— 

5 Loans made by the Administrator to an eligible 

6 intermediary under the Program shall bear an 

7 annual interest rate equal to 1.00 percent. 

8 ‘‘(E) FEES; COLLATERAL.—The Adminis9 trator may not charge any fees or require collat10 eral with respect to any loan made to an eligible 

11 intermediary under this subsection. 

12 ‘‘(F) DELAYED PAYMENTS.—The Adminis13 trator shall not require the repayment of prin14 cipal or interest on a loan made to an eligible 

15 intermediary under the Program during the 2- 

16 year period beginning on the date of the initial 

17 disbursement of funds under that loan. 

18 ‘‘(G) MAXIMUM PARTICIPANTS AND

19 AMOUNTS.—During each of fiscal years 2011, 

20 2012, and 2013, the Administrator may make 

21 loans under the Program— 

22 ‘‘(i) to not more than 20 eligible inter23 mediaries; and 

24 ‘‘(ii) in a total amount of not more 

25 than $20,000,000. 
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1 ‘‘(5) LOANS TO SMALL BUSINESS CONCERNS.— 

2 ‘‘(A) IN GENERAL.—The Administrator, 

3 through an eligible intermediary, shall make 

4 loans to startup, newly established, and growing 

5 small business concerns for working capital, real 

6 estate, and the acquisition of materials, supplies, 

7 furniture, fixtures, and equipment. 

8 ‘‘(B) MAXIMUM LOAN.—An eligible inter9 mediary may not make a loan under this sub10 section of more than $200,000 to any 1 small 

11 business concern. 

12 ‘‘(C) APPLICABLE INTEREST RATES.—A 

13 loan made by an eligible intermediary to a small 

14 business concern under this subsection, may have 

15 a fixed or a variable interest rate, and shall bear 

16 an interest rate specified by the eligible inter17 mediary in the application of the eligible inter18 mediary for a loan under this subsection. 

19 ‘‘(D) REVIEW RESTRICTIONS.—The Admin20 istrator may not review individual loans made 

21 by an eligible intermediary to a small business 

22 concern before approval of the loan by the eligi23 ble intermediary. 

24 ‘‘(6) TERMINATION.—The authority of the Ad25 ministrator to make loans under the Program shall 
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1 terminate 3 years after the date of enactment of the 

2 Small Business Job Creation and Access to Capital 

3 Act of 2010.’’. 

4 (b) RULEMAKING AUTHORITY.—Not later than 180 

5 days after the date of enactment of this Act, the Adminis6 trator shall issue regulations to carry out section 7(l) of 

7 the Small Business Act, as amended by subsection (a). 

8 (c) AVAILABILITY OF FUNDS.—Any amounts provided 

9 to the Administrator for the purposes of carrying out sec10 tion 7(l) of the Small Business Act, as amended by sub11 section (a), shall remain available until expended. 

12 SEC. 1132. PUBLIC POLICY GOALS. 

13 Section 501(d)(3) of the Small Business Investment 

14 Act of 1958 (15 U.S.C. 695(d)(3)) is amended— 

15 (1) in subparagraph (J), by striking ‘‘or’’ at the 

16 end; 

17 (2) in subparagraph (K), by striking the period 

18 at the end and inserting ‘‘, or’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(L) reduction of rates of unemployment in 

21 labor surplus areas, as such areas are deter22 mined by the Secretary of Labor.’’. 

23 SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION. 

24 (a) IN GENERAL.—Section 7(a) of the Small Business 

25 Act (15 U.S.C. 636(a)) is amended— 
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1 (1) by redesignating paragraph (32), relating to 

2 increased veteran participation, as added by section 

3 208 of the Military Reservist and Veteran Small 

4 Business Reauthorization and Opportunity Act of 

5 2008 (Public Law 110–186; 122 Stat. 631), as para6 graph (33); and 

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

8 ‘‘(34) FLOOR PLAN FINANCING PROGRAM.— 

9 ‘‘(A) DEFINITION.—In this paragraph, the 

10 term ‘eligible retail good’— 

11 ‘‘(i) means a good for which a title 

12 may be obtained under State law; and 

13 ‘‘(ii) includes an automobile, rec14 reational vehicle, boat, and manufactured 

15 home. 

16 ‘‘(B) PROGRAM.—The Administrator may 

17 guarantee the timely payment of an open-end ex18 tension of credit to a small business concern, the 

19 proceeds of which may be used for the purchase 

20 of eligible retail goods for resale. 

21 ‘‘(C) AMOUNT.—An open-end extension of 

22 credit guaranteed under this paragraph shall be 

23 in an amount not less than $500,000 and not 

24 more than $5,000,000. 
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1 ‘‘(D) TERM.—An open-end extension of 

2 credit guaranteed under this paragraph shall 

3 have a term of not more than 5 years. 

4 ‘‘(E) GUARANTEE PERCENTAGE.—The Ad5 ministrator may guarantee— 

6 ‘‘(i) not less than 60 percent of an 

7 open-end extension of credit under this 

8 paragraph; and 

9 ‘‘(ii) not more than 75 percent of an 

10 open-end extension of credit under this 

11 paragraph. 

12 ‘‘(F) ADVANCE RATE.—The lender for an 

13 open-end extension of credit guaranteed under 

14 this paragraph may allow the borrower to draw 

15 funds on the line of credit in an amount equal 

16 to not more than 100 percent of the value of the 

17 eligible retail goods to be purchased.’’. 

18 (b) SUNSET.—Effective September 30, 2013, section 

19 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 

20 amended— 

21 (1) by striking paragraph (34); and 

22 (2) by redesignating paragraph (35), as added 

23 by section 1206 of this Act, as paragraph (34). 
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1 SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED 

2 FOR COMMUNITY OR ECONOMIC DEVELOP3 MENT PURPOSES. 

4 The Riegle Community Development and Regulatory 

5 Improvement Act of 1994 (12 U.S.C. 4701 et seq.) is amend6 ed by inserting after section 114 (12 U.S.C. 4713) the fol7 lowing: 

8 ‘‘SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED 

9 FOR COMMUNITY OR ECONOMIC DEVELOP10 MENT PURPOSES. 

11 ‘‘(a) DEFINITIONS.—In this section, the following defi12 nitions shall apply: 

13 ‘‘(1) ELIGIBLE COMMUNITY DEVELOPMENT FI14 NANCIAL INSTITUTION.—The term ‘eligible community 

15 development financial institution’ means a commu16 nity development financial institution (as described 

17 in section 1805.201 of title 12, Code of Federal Regu18 lations, or any successor thereto) certified by the Sec19 retary that has applied to a qualified issuer for, or 

20 been granted by a qualified issuer, a loan under the 

21 Program. 

22 ‘‘(2) ELIGIBLE COMMUNITY OR ECONOMIC DE23 VELOPMENT PURPOSE.—The term ‘eligible community 

24 or economic development purpose’— 

25 ‘‘(A) means any purpose described in sec26 tion 108(b); and 
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1 ‘‘(B) includes the provision of community 

2 or economic development in low-income or un3 derserved rural areas. 

4 ‘‘(3) GUARANTEE.—The term ‘guarantee’ means 

5 a written agreement between the Secretary and a 

6 qualified issuer (or trustee), pursuant to which the 

7 Secretary ensures repayment of the verifiable losses of 

8 principal, interest, and call premium, if any, on 

9 notes or bonds issued by a qualified issuer to finance 

10 or refinance loans to eligible community development 

11 financial institutions. 

12 ‘‘(4) LOAN.—The term ‘loan’ means any credit 

13 instrument that is extended under the Program for 

14 any eligible community or economic development pur15 pose. 

16 ‘‘(5) MASTER SERVICER.— 

17 ‘‘(A) IN GENERAL.—The term ‘master 

18 servicer’ means any entity approved by the Sec19 retary in accordance with subparagraph (B) to 

20 oversee the activities of servicers, as provided in 

21 subsection (f)(4). 

22 ‘‘(B) APPROVAL CRITERIA FOR MASTER

23 SERVICERS.—The Secretary shall approve or 

24 deny any application to become a master 

25 servicer under the Program not later than 90 
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1 days after the date on which all required infor2 mation is submitted to the Secretary, based on 

3 the capacity and experience of the applicant 

4 in— 

5 ‘‘(i) loan administration, servicing, 

6 and loan monitoring; 

7 ‘‘(ii) managing regional or national 

8 loan intake, processing, or servicing oper9 ational systems and infrastructure; 

10 ‘‘(iii) managing regional or national 

11 originator communication systems and in12 frastructure; 

13 ‘‘(iv) developing and implementing 

14 training and other risk management strate15 gies on a regional or national basis; and 

16 ‘‘(v) compliance monitoring, investor 

17 relations, and reporting. 

18 ‘‘(6) PROGRAM.—The term ‘Program’ means the 

19 guarantee Program for bonds and notes issued for eli20 gible community or economic development purposes 

21 established under this section. 

22 ‘‘(7) PROGRAM ADMINISTRATOR.—The term ‘Pro23 gram administrator’ means an entity designated by 

24 the issuer to perform administrative duties, as pro25 vided in subsection (f)(2). 
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1 ‘‘(8) QUALIFIED ISSUER.— 

2 ‘‘(A) IN GENERAL.—The term ‘qualified 

3 issuer’ means a community development finan4 cial institution (or any entity designated to issue 

5 notes or bonds on behalf of such community de6 velopment financial institution) that meets the 

7 qualification requirements of this paragraph. 

8 ‘‘(B) APPROVAL CRITERIA FOR QUALIFIED

9 ISSUERS.— 

10 ‘‘(i) IN GENERAL.—The Secretary shall 

11 approve a qualified issuer for a guarantee 

12 under the Program in accordance with the 

13 requirements of this paragraph, and such 

14 additional requirements as the Secretary 

15 may establish, by regulation. 

16 ‘‘(ii) TERMS AND QUALIFICATIONS.—A 

17 qualified issuer shall— 

18 ‘‘(I) have appropriate expertise, 

19 capacity, and experience, or otherwise 

20 be qualified to make loans for eligible 

21 community or economic development 

22 purposes; 

23 ‘‘(II) provide to the Secretary— 
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1 ‘‘(aa) an acceptable state2 ment of the proposed sources and 

3 uses of the funds; and 

4 ‘‘(bb) a capital distribution 

5 plan that meets the requirements 

6 of subsection (c)(1); and 

7 ‘‘(III) certify to the Secretary that 

8 the bonds or notes to be guaranteed are 

9 to be used for eligible community or 

10 economic development purposes. 

11 ‘‘(C) DEPARTMENT OPINION; TIMING.— 

12 ‘‘(i) DEPARTMENT OPINION.—Not later 

13 than 30 days after the date of a request by 

14 a qualified issuer for approval of a guar15 antee under the Program, the Secretary 

16 shall provide an opinion regarding compli17 ance by the issuer with the requirements of 

18 the Program under this section. 

19 ‘‘(ii) TIMING.—The Secretary shall ap20 prove or deny a guarantee under this sec21 tion after consideration of the opinion pro22 vided to the Secretary under clause (i), and 

23 in no case later than 90 days after receipt 

24 of all required information by the Secretary 

25 with respect to a request for such guarantee. 
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1 ‘‘(9) SECRETARY.—The term ‘Secretary’ means 

2 the Secretary of the Treasury. 

3 ‘‘(10) SERVICER.—The term ‘servicer’ means an 

4 entity designated by the issuer to perform various 

5 servicing duties, as provided in subsection (f)(3). 

6 ‘‘(b) GUARANTEES AUTHORIZED.—The Secretary shall 

7 guarantee payments on bonds or notes issued by any quali8 fied issuer, if the proceeds of the bonds or notes are used 

9 in accordance with this section to make loans to eligible 

10 community development financial institutions— 

11 ‘‘(1) for eligible community or economic develop12 ment purposes; or 

13 ‘‘(2) to refinance loans or notes issued for such 

14 purposes. 

15 ‘‘(c) GENERAL PROGRAM REQUIREMENTS.— 

16 ‘‘(1) IN GENERAL.—A capital distribution plan 

17 meets the requirements of this subsection, if not less 

18 than 90 percent of the principal amount of guaran19 teed bonds or notes (other than costs of issuance fees) 

20 are used to make loans for any eligible community or 

21 economic development purpose, measured annually, 

22 beginning at the end of the 1-year period beginning 

23 on the issuance date of such guaranteed bonds or 

24 notes. 
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1 ‘‘(2) RELENDING ACCOUNT.—Not more than 10 

2 percent of the principal amount of guaranteed bonds 

3 or notes, multiplied by an amount equal to the out4 standing principal balance of issued notes or bonds, 

5 minus the risk-share pool amount under subsection 

6 (d), may be held in a relending account and may be 

7 made available for new eligible community or eco8 nomic development purposes. 

9 ‘‘(3) LIMITATIONS ON UNPAID PRINCIPAL BAL10 ANCES.—The proceeds of guaranteed bonds or notes 

11 under the Program may not be used to pay fees (other 

12 than costs of issuance fees), and shall be held in— 

13 ‘‘(A) community or economic development 

14 loans; 

15 ‘‘(B) a relending account, to the extent au16 thorized under paragraph (2); or 

17 ‘‘(C) a risk-share pool established under 

18 subsection (d). 

19 ‘‘(4) REPAYMENT.—If a qualified issuer fails to 

20 meet the requirements of paragraph (1) by the end of 

21 the 90-day period beginning at the end of the annual 

22 measurement period, repayment shall be made on that 

23 portion of bonds or notes necessary to bring the bonds 

24 or notes that remain outstanding after such repay-
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1 ment into compliance with the 90 percent require2 ment of paragraph (1). 

3 ‘‘(5) PROHIBITED USES.—The Secretary shall, 

4 by regulation— 

5 ‘‘(A) prohibit, as appropriate, certain uses 

6 of amounts from the guarantee of a bond or note 

7 under the Program, including the use of such 

8 funds for political activities, lobbying, outreach, 

9 counseling services, or travel expenses; and 

10 ‘‘(B) provide that the guarantee of a bond 

11 or note under the Program may not be used for 

12 salaries or other administrative costs of— 

13 ‘‘(i) the qualified issuer; or 

14 ‘‘(ii) any recipient of amounts from 

15 the guarantee of a bond or note. 

16 ‘‘(d) RISK-SHARE POOL.—Each qualified issuer shall, 

17 during the term of a guarantee provided under the Pro18 gram, establish a risk-share pool, capitalized by contribu19 tions from eligible community development financial insti20 tution participants an amount equal to 3 percent of the 

21 guaranteed amount outstanding on the subject notes and 

22 bonds. 

23 ‘‘(e) GUARANTEES.— 

24 ‘‘(1) IN GENERAL.—A guarantee issued under the 

25 Program shall— 
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1 ‘‘(A) be for the full amount of a bond or 

2 note, including the amount of principal, interest, 

3 and call premiums; 

4 ‘‘(B) be fully assignable and transferable to 

5 the capital market, on terms and conditions that 

6 are consistent with comparable Government7 guaranteed bonds, and satisfactory to the Sec8 retary; 

9 ‘‘(C) represent the full faith and credit of 

10 the United States; and 

11 ‘‘(D) not exceed 30 years. 

12 ‘‘(2) LIMITATIONS.— 

13 ‘‘(A) ANNUAL NUMBER OF GUARANTEES.— 

14 The Secretary shall issue not more than 10 guar15 antees in any calendar year under the Program. 

16 ‘‘(B) GUARANTEE AMOUNT.—The Secretary 

17 may not guarantee any amount under the Pro18 gram equal to less than $100,000,000, but the 

19 total of all such guarantees in any fiscal year 

20 may not exceed $1,000,000,000. 

21 ‘‘(f) SERVICING OF TRANSACTIONS.— 

22 ‘‘(1) IN GENERAL.—To maximize efficiencies and 

23 minimize cost and interest rates, loans made under 

24 this section may be serviced by qualified Program ad25 ministrators, bond servicers, and a master servicer. 
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1 ‘‘(2) DUTIES OF PROGRAM ADMINISTRATOR.— 

2 The duties of a Program administrator shall in3 clude— 

4 ‘‘(A) approving and qualifying eligible com5 munity development financial institution appli6 cations for participation in the Program; 

7 ‘‘(B) compliance monitoring; 

8 ‘‘(C) bond packaging in connection with the 

9 Program; and 

10 ‘‘(D) all other duties and related services 

11 that are customarily expected of a Program ad12 ministrator. 

13 ‘‘(3) DUTIES OF SERVICER.—The duties of a 

14 servicer shall include— 

15 ‘‘(A) billing and collecting loan payments; 

16 ‘‘(B) initiating collection activities on past17 due loans; 

18 ‘‘(C) transferring loan payments to the 

19 master servicing accounts; 

20 ‘‘(D) loan administration and servicing; 

21 ‘‘(E) systematic and timely reporting of 

22 loan performance through remittance and serv23 icing reports; 

24 ‘‘(F) proper measurement of annual out25 standing loan requirements; and 
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1 ‘‘(G) all other duties and related services 

2 that are customarily expected of servicers. 

3 ‘‘(4) DUTIES OF MASTER SERVICER.—The duties 

4 of a master servicer shall include— 

5 ‘‘(A) tracking the movement of funds be6 tween the accounts of the master servicer and 

7 any other servicer; 

8 ‘‘(B) ensuring orderly receipt of the monthly 

9 remittance and servicing reports of the servicer; 

10 ‘‘(C) monitoring the collection comments 

11 and foreclosure actions; 

12 ‘‘(D) aggregating the reporting and dis13 tribution of funds to trustees and investors; 

14 ‘‘(E) removing and replacing a servicer, as 

15 necessary; 

16 ‘‘(F) loan administration and servicing; 

17 ‘‘(G) systematic and timely reporting of 

18 loan performance compiled from all bond 

19 servicers’ reports; 

20 ‘‘(H) proper distribution of funds to inves21 tors; and 

22 ‘‘(I) all other duties and related services 

23 that are customarily expected of a master 

24 servicer. 

25 ‘‘(g) FEES.— 
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1 ‘‘(1) IN GENERAL.—A qualified issuer that re2 ceives a guarantee issued under this section on a bond 

3 or note shall pay a fee to the Secretary, in an amount 

4 equal to 10 basis points of the amount of the unpaid 

5 principal of the bond or note guaranteed. 

6 ‘‘(2) PAYMENT.—A qualified issuer shall pay the 

7 fee required under this subsection on an annual basis. 

8 ‘‘(3) USE OF FEES.—Fees collected by the Sec9 retary under this subsection shall be used to reim10 burse the Department of the Treasury for any admin11 istrative costs incurred by the Department in imple12 menting the Program established under this section. 

13 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— 

14 ‘‘(1) IN GENERAL.—There are authorized to be 

15 appropriated to the Secretary, such sums as are nec16 essary to carry out this section. 

17 ‘‘(2) USE OF FEES.—To the extent that the 

18 amount of funds appropriated for a fiscal year under 

19 paragraph (1) are not sufficient to carry out this sec20 tion, the Secretary may use the fees collected under 

21 subsection (g) for the cost of providing guarantees of 

22 bonds and notes under this section. 

23 ‘‘(i) INVESTMENT IN GUARANTEED BONDS INELIGIBLE

24 FOR COMMUNITY REINVESTMENT ACT PURPOSES.—Not25 withstanding any other provision of law, any investment 
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1 by a financial institution in bonds or notes guaranteed 

2 under the Program shall not be taken into account in assess3 ing the record of such institution for purposes of the Com4 munity Reinvestment Act of 1977 (12 U.S.C. 2901). 

5 ‘‘(j) ADMINISTRATION.— 

6 ‘‘(1) REGULATIONS.—Not later than 1 year after 

7 the date of enactment of this section, the Secretary 

8 shall promulgate regulations to carry out this section. 

9 ‘‘(2) IMPLEMENTATION.—Not later than 2 years 

10 after the date of enactment of this section, the Sec11 retary shall implement this section. 

12 ‘‘(k) TERMINATION.—This section is repealed, and the 

13 authority provided under this section shall terminate, on 

14 September 30, 2014.’’. 

15 SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT. 

16 (a) IN GENERAL.—Section 7(a)(31)(D) of the Small 

17 Business Act (15 U.S.C. 636(a)(31)(D)) is amended by 

18 striking ‘‘$350,000’’ and inserting ‘‘$1,000,000’’. 

19 (b) PROSPECTIVE REPEAL.—Effective 1 year after the 

20 date of enactment of this Act, section 7(a)(31)(D) of the 

21 Small Business Act (15 U.S.C. 636(a)(31)(D)) is amended 

22 by striking ‘‘$1,000,000’’ and inserting ‘‘$350,000’’. 
40 

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1 SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX IN2 CREASES. 

3 (a) IN GENERAL.—Except as provided in subsection 

4 (b), nothing in section 1111, 1112, 1113, 1114, 1115, 1116, 

5 1117, 1118, 1122, or 1131, or an amendment made by such 

6 sections, shall be construed to limit the ability of Congress 

7 to appropriate funds. 

8 (b) TARP FUNDS AND TAX INCREASES.— 

9 (1) IN GENERAL.—Any covered amounts may 

10 not be used to carry out section 1111, 1112, 1113, 

11 1114, 1115, 1116, 1117, 1118, 1122, or 1131, or an 

12 amendment made by such sections. 

13 (2) DEFINITION.—In this subsection, the term 

14 ‘‘covered amounts’’ means— 

15 (A) the amounts made available to the Sec16 retary of the Treasury under title I of the Emer17 gency Economic Stabilization Act of 2008 S.C. 

18 5201 et seq.) to purchase (under section 101) or 

19 guarantee (under section 102) assets under that 

20 Act; and 

21 (B) any revenue increase attributable to 

22 any amendment to the Internal Revenue Code of 

23 1986 made during the period beginning on the 

24 date of enactment of this Act and ending on De25 cember 31, 2010. 
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1 Subtitle B—Small Business Trade 

2 and Exporting 

3 SEC. 1201. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘Small Business Ex5 port Enhancement and International Trade Act of 2010’’. 

6 SEC. 1202. DEFINITIONS. 

7 (a) DEFINITIONS.—In this subtitle— 

8 (1) the term ‘‘Associate Administrator’’ means 

9 the Associate Administrator for International Trade 

10 appointed under section 22(a)(2) of the Small Busi11 ness Act, as amended by this subtitle; 

12 (2) the term ‘‘Export Assistance Center’’ means 

13 a one-stop shop referred to in section 2301(b)(8) of the 

14 Omnibus Trade and Competitiveness Act of 1988 (15 

15 U.S.C. 4721(b)(8)); and 

16 (3) the term ‘‘rural small business concern’’ 

17 means a small business concern located in a rural 

18 area, as that term is defined in section 1393(a)(2) of 

19 the Internal Revenue Code of 1986. 

20 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

21 (1) DEFINITIONS.—Section 3 of the Small Busi22 ness Act (15 U.S.C. 632) is amended by adding at the 

23 end the following: 
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† HR 5297 EAS 

1 ‘‘(t) SMALL BUSINESS DEVELOPMENT CENTER.—In 

2 this Act, the term ‘small business development center’ means 

3 a small business development center described in section 21. 

4 ‘‘(u) REGION OF THE ADMINISTRATION.—In this Act, 

5 the term ‘region of the Administration’ means the geo6 graphic area served by a regional office of the Administra7 tion established under section 4(a).’’. 

8 (2) CONFORMING AMENDMENT.—Section 

9 4(b)(3)(B)(x) of the Small Business Act (15 U.S.C. 

10 633(b)(3)(B)(x)) is amended by striking ‘‘Administra11 tion district and region’’ and inserting ‘‘district and 

12 region of the Administration’’. 

13 SEC. 1203. OFFICE OF INTERNATIONAL TRADE. 

14 (a) ESTABLISHMENT.—Section 22 of the Small Busi15 ness Act (15 U.S.C. 649) is amended— 

16 (1) by striking ‘‘SEC. 22. (a) There’’ and insert17 ing the following: 

18 ‘‘SEC. 22. OFFICE OF INTERNATIONAL TRADE. 

19 ‘‘(a) ESTABLISHMENT.— 

20 ‘‘(1) OFFICE.—There’’; and 

21 (2) in subsection (a)— 

22 (A) in paragraph (1), as so designated, by 

23 striking the period and inserting ‘‘for the pri24 mary purposes of increasing— 
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1 ‘‘(A) the number of small business concerns 

2 that export; and 

3 ‘‘(B) the volume of exports by small business 

4 concerns.’’; and 

5 (B) by adding at the end the following: 

6 ‘‘(2) ASSOCIATE ADMINISTRATOR.—The head of 

7 the Office shall be the Associate Administrator for 

8 International Trade, who shall be responsible to the 

9 Administrator.’’. 

10 (b) AUTHORITY FOR ADDITIONAL ASSOCIATE ADMINIS11 TRATOR.—Section 4(b)(1) of the Small Business Act (15 

12 U.S.C. 633(b)(1)) is amended— 

13 (1) in the fifth sentence, by striking ‘‘five Asso14 ciate Administrators’’ and inserting ‘‘Associate Ad15 ministrators’’; and 

16 (2) by adding at the end the following: ‘‘One 

17 such Associate Administrator shall be the Associate 

18 Administrator for International Trade, who shall be 

19 the head of the Office of International Trade estab20 lished under section 22.’’. 

21 (c) DISCHARGE OF INTERNATIONAL TRADE RESPON22 SIBILITIES OF ADMINISTRATION.—Section 22 of the Small 

23 Business Act (15 U.S.C. 649) is amended by adding at the 

24 end the following: 
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1 ‘‘(h) DISCHARGE OF INTERNATIONAL TRADE RESPON2 SIBILITIES OF ADMINISTRATION.—The Administrator shall 

3 ensure that— 

4 ‘‘(1) the responsibilities of the Administration re5 garding international trade are carried out by the As6 sociate Administrator; 

7 ‘‘(2) the Associate Administrator has sufficient 

8 resources to carry out such responsibilities; and 

9 ‘‘(3) the Associate Administrator has direct su10 pervision and control over— 

11 ‘‘(A) the staff of the Office; and 

12 ‘‘(B) any employee of the Administration 

13 whose principal duty station is an Export As14 sistance Center, or any successor entity.’’. 

15 (d) ROLE OF ASSOCIATE ADMINISTRATOR IN CAR16 RYING OUT INTERNATIONAL TRADE POLICY.—Section 

17 2(b)(1) of the Small Business Act (15 U.S.C. 631(b)(1)) is 

18 amended in the matter preceding subparagraph (A)— 

19 (1) by inserting ‘‘the Administrator of’’ before 

20 ‘‘the Small Business Administration’’; and 

21 (2) by inserting ‘‘through the Associate Adminis22 trator for International Trade, and’’ before ‘‘in co23 operation with’’. 

24 (e) IMPLEMENTATION DATE.—Not later than 90 days 

25 after the date of enactment of this Act, the Administrator 
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1 of the Small Business Administration shall appoint an As2 sociate Administrator for International Trade under section 

3 22(a) of the Small Business Act (15 U.S.C. 649(a)), as 

4 added by this section. 

5 SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL 

6 TRADE. 

7 (a) AMENDMENTS TO SECTION 22.—Section 22 of the 

8 Small Business Act (15 U.S.C. 649) is amended— 

9 (1) by striking subsection (b) and inserting the 

10 following: 

11 ‘‘(b) TRADE DISTRIBUTION NETWORK.—The Associate 

12 Administrator, working in close cooperation with the Sec13 retary of Commerce, the United States Trade Representa14 tive, the Secretary of Agriculture, the Secretary of State, 

15 the President of the Export-Import Bank of the United 

16 States, the President of the Overseas Private Investment 

17 Corporation, Director of the United States Trade and De18 velopment Agency, and other relevant Federal agencies, 

19 small business development centers engaged in export pro20 motion efforts, Export Assistance Centers, regional and dis21 trict offices of the Administration, the small business com22 munity, and relevant State and local export promotion pro23 grams, shall— 

24 ‘‘(1) maintain a distribution network, using re25 gional and district offices of the Administration, the 
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1 small business development center network, networks 

2 of women’s business centers, the Service Corps of Re3 tired Executives authorized by section 8(b)(1), and 

4 Export Assistance Centers, for programs relating to— 

5 ‘‘(A) trade promotion; 

6 ‘‘(B) trade finance; 

7 ‘‘(C) trade adjustment assistance; 

8 ‘‘(D) trade remedy assistance; and 

9 ‘‘(E) trade data collection; 

10 ‘‘(2) aggressively market the programs described 

11 in paragraph (1) and disseminate information, in12 cluding computerized marketing data, to small busi13 ness concerns on exporting trends, market-specific 

14 growth, industry trends, and international prospects 

15 for exports; 

16 ‘‘(3) promote export assistance programs through 

17 the district and regional offices of the Administration, 

18 the small business development center network, Export 

19 Assistance Centers, the network of women’s business 

20 centers, chapters of the Service Corps of Retired Ex21 ecutives, State and local export promotion programs, 

22 and partners in the private sector; and 

23 ‘‘(4) give preference in hiring or approving the 

24 transfer of any employee into the Office or to a posi25 tion described in subsection (c)(9) to otherwise quali-
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1 fied applicants who are fluent in a language in addi2 tion to English, to— 

3 ‘‘(A) accompany small business concerns on 

4 foreign trade missions; and 

5 ‘‘(B) translate documents, interpret con6 versations, and facilitate multilingual trans7 actions, including by providing referral lists for 

8 translation services, if required.’’; 

9 (2) in subsection (c)— 

10 (A) by striking ‘‘(c) The Office’’ and insert11 ing the following: 

12 ‘‘(c) PROMOTION OF SALES OPPORTUNITIES.—The As13 sociate Administrator’’; 

14 (B) by redesignating paragraphs (1) 

15 through (8) as paragraphs (2) through (9), re16 spectively; 

17 (C) by inserting before paragraph (2), as so 

18 redesignated, the following: 

19 ‘‘(1) establish annual goals for the Office relating 

20 to— 

21 ‘‘(A) enhancing the exporting capability of 

22 small business concerns and small manufactur23 ers; 

24 ‘‘(B) facilitating technology transfers; 
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1 ‘‘(C) enhancing programs and services to 

2 assist small business concerns and small manu3 facturers to compete effectively and efficiently in 

4 foreign markets; 

5 ‘‘(D) increasing the ability of small business 

6 concerns to access capital; and 

7 ‘‘(E) disseminating information concerning 

8 Federal, State, and private programs and initia9 tives;’’; 

10 (D) in paragraph (2), as so redesignated, by 

11 striking ‘‘mechanism for’’ and all that follows 

12 through ‘‘(D) assisting’’ and inserting the fol13 lowing: ‘‘mechanism for— 

14 ‘‘(A) identifying subsectors of the small 

15 business community with strong export poten16 tial; 

17 ‘‘(B) identifying areas of demand in foreign 

18 markets; 

19 ‘‘(C) prescreening foreign buyers for com20 mercial and credit purposes; and 

21 ‘‘(D) assisting’’; 

22 (E) in paragraph (3), as so redesignated, by 

23 striking ‘‘assist small businesses in the formation 

24 and utilization of’’ and inserting ‘‘assist small 

25 business concerns in forming and using’’; 
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1 (F) in paragraph (4), as so redesignated— 

2 (i) by striking ‘‘local’’ and inserting 

3 ‘‘district’’; 

4 (ii) by striking ‘‘existing’’; 

5 (iii) by striking ‘‘Small Business De6 velopment Center network’’ and inserting 

7 ‘‘small business development center net8 work’’; and 

9 (iv) by striking ‘‘Small Business De10 velopment Center Program’’ and inserting 

11 ‘‘small business development center pro12 gram’’; 

13 (G) in paragraph (5), as so redesignated— 

14 (i) in subparagraph (A), by striking 

15 ‘‘Gross State Produce’’ and inserting ‘‘Gross 

16 State Product’’; 

17 (ii) in subparagraph (B), by striking 

18 ‘‘SIC’’ each place it appears and inserting 

19 ‘‘North American Industry Classification 

20 System’’; and 

21 (iii) in subparagraph (C), by striking 

22 ‘‘small businesses’’ and inserting ‘‘small 

23 business concerns’’; 
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† HR 5297 EAS 

1 (H) in paragraph (6), as so redesignated, 

2 by striking the period at the end and inserting 

3 a semicolon; 

4 (I) in paragraph (7), as so redesignated— 

5 (i) in the matter preceding subpara6 graph (A)— 

7 (I) by inserting ‘‘concerns’’ after 

8 ‘‘small business’’; and 

9 (II) by striking ‘‘current’’ and in10 serting ‘‘up to date’’; 

11 (ii) in subparagraph (A), by striking 

12 ‘‘Administration’s regional offices’’ and in13 serting ‘‘regional and district offices of the 

14 Administration’’; 

15 (iii) in subparagraph (B) by striking 

16 ‘‘current’’; 

17 (iv) in subparagraph (C), by striking 

18 ‘‘current’’; and 

19 (v) by striking ‘‘small businesses’’ each 

20 place that term appears and inserting 

21 ‘‘small business concerns’’; 

22 (J) in paragraph (8), as so redesignated, by 

23 striking and at the end; 

24 (K) in paragraph (9), as so redesignated— 
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1 (i) in the matter preceding subpara2 graph (A)— 

3 (I) by striking ‘‘full-time export 

4 development specialists to each Admin5 istration regional office and assign6 ing’’; and 

7 (II) by striking ‘‘person in each 

8 district office. Such specialists’’ and 

9 inserting ‘‘individual in each district 

10 office and providing each Administra11 tion regional office with a full-time ex12 port development specialist, who’’; 

13 (ii) in subparagraph (B)— 

14 (I) by striking ‘‘current’’; and 

15 (II) by striking ‘‘with’’ and in16 serting ‘‘in’’; 

17 (iii) in subparagraph (D)— 

18 (I) by striking ‘‘Administration 

19 personnel involved in granting’’ and 

20 inserting ‘‘personnel of the Administra21 tion involved in making’’; and 

22 (II) by striking ‘‘and’’ at the end; 

23 (iv) in subparagraph (E)— 
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† HR 5297 EAS 

1 (I) by striking ‘‘small businesses’ 

2 needs’’ and inserting ‘‘the needs of 

3 small business concerns’’; and 

4 (II) by striking the period at the 

5 end and inserting a semicolon; 

6 (v) by adding at the end the following: 

7 ‘‘(F) participate, jointly with employees of 

8 the Office, in an annual training program that 

9 focuses on current small business needs for ex10 porting; and 

11 ‘‘(G) develop and conduct training pro12 grams for exporters and lenders, in cooperation 

13 with the Export Assistance Centers, the Depart14 ment of Commerce, the Department of Agri15 culture, small business development centers, 

16 women’s business centers, the Export-Import 

17 Bank of the United States, the Overseas Private 

18 Investment Corporation, and other relevant Fed19 eral agencies;’’; and 

20 (vi) by striking ‘‘small businesses’’ each 

21 place that term appears and inserting 

22 ‘‘small business concerns’’; and 

23 (L) by adding at the end the following: 
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1 ‘‘(10) make available on the website of the Ad2 ministration the name and contact information of 

3 each individual described in paragraph (9); 

4 ‘‘(11) carry out a nationwide marketing effort 

5 using technology, online resources, training, and other 

6 strategies to promote exporting as a business develop7 ment opportunity for small business concerns; 

8 ‘‘(12) disseminate information to the small busi9 ness community through regional and district offices 

10 of the Administration, the small business development 

11 center network, Export Assistance Centers, the net12 work of women’s business centers, chapters of the 

13 Service Corps of Retired Executives authorized by sec14 tion 8(b)(1), State and local export promotion pro15 grams, and partners in the private sector regarding 

16 exporting trends, market-specific growth, industry 

17 trends, and prospects for exporting; and 

18 ‘‘(13) establish and carry out training programs 

19 for the staff of the regional and district offices of the 

20 Administration and resource partners of the Adminis21 tration on export promotion and providing assistance 

22 relating to exports.’’; 

23 (3) in subsection (d)— 
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† HR 5297 EAS 

1 (A) by redesignating paragraphs (1) 

2 through (5) as clauses (i) through (v), respec3 tively, and adjusting the margins accordingly; 

4 (B) by striking ‘‘(d) The Office’’ and insert5 ing the following: 

6 ‘‘(d) EXPORT FINANCING PROGRAMS.— 

7 ‘‘(1) IN GENERAL.—The Associate Adminis8 trator’’; and 

9 (C) by striking ‘‘To accomplish this goal, 

10 the Office shall work’’ and inserting the fol11 lowing: 

12 ‘‘(2) TRADE FINANCE SPECIALIST.—To accom13 plish the goal established under paragraph (1), the 

14 Associate Administrator shall— 

15 ‘‘(A) designate at least 1 individual within 

16 the Administration as a trade finance specialist 

17 to oversee international loan programs and as18 sist Administration employees with trade finance 

19 issues; and 

20 ‘‘(B) work’’; 

21 (4) in subsection (e), by striking ‘‘(e) The Office’’ 

22 and inserting the following: 

23 ‘‘(e) TRADE REMEDIES.—The Associate Adminis24 trator’’; 

25 (5) by amending subsection (f) to read as follows: 
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† HR 5297 EAS 

1 ‘‘(f) REPORTING REQUIREMENT.—The Associate Ad2 ministrator shall submit an annual report to the Committee 

3 on Small Business and Entrepreneurship of the Senate and 

4 the Committee on Small Business of the House of Represent5 atives that contains— 

6 ‘‘(1) a description of the progress of the Office in 

7 implementing the requirements of this section; 

8 ‘‘(2) a detailed account of the results of export 

9 growth activities of the Administration, including the 

10 activities of each district and regional office of the 

11 Administration, based on the performance measures 

12 described in subsection (i); 

13 ‘‘(3) an estimate of the total number of jobs cre14 ated or retained as a result of export assistance pro15 vided by the Administration and resource partners of 

16 the Administration; 

17 ‘‘(4) for any travel by the staff of the Office, the 

18 destination of such travel and the benefits to the Ad19 ministration and to small business concerns resulting 

20 from such travel; and 

21 ‘‘(5) a description of the participation by the Of22 fice in trade negotiations.’’; 

23 (6) in subsection (g), by striking ‘‘(g) The Office’’ 

24 and inserting the following: 

25 ‘‘(g) STUDIES.—The Associate Administrator’’; and 
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† HR 5297 EAS 

1 (7) by adding after subsection (h), as added by 

2 section 1203 of this subtitle, the following: 

3 ‘‘(i) EXPORT AND TRADE COUNSELING.— 

4 ‘‘(1) DEFINITION.—In this subsection— 

5 ‘‘(A) the term ‘lead small business develop6 ment center’ means a small business development 

7 center that has received a grant from the Admin8 istration; and 

9 ‘‘(B) the term ‘lead women’s business center’ 

10 means a women’s business center that has re11 ceived a grant from the Administration. 

12 ‘‘(2) CERTIFICATION PROGRAM.—The Adminis13 trator shall establish an export and trade counseling 

14 certification program to certify employees of lead 

15 small business development centers and lead women’s 

16 business centers in providing export assistance to 

17 small business concerns. 

18 ‘‘(3) NUMBER OF CERTIFIED EMPLOYEES.—The 

19 Administrator shall ensure that the number of em20 ployees of each lead small business development center 

21 who are certified in providing export assistance is not 

22 less than the lesser of— 

23 ‘‘(A) 5; or 
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1 ‘‘(B) 10 percent of the total number of em2 ployees of the lead small business development 

3 center. 

4 ‘‘(4) REIMBURSEMENT FOR CERTIFICATION.— 

5 ‘‘(A) IN GENERAL.—Subject to the avail6 ability of appropriations, the Administrator 

7 shall reimburse a lead small business develop8 ment center or a lead women’s business center 

9 for costs relating to the certification of an em10 ployee of the lead small business center or lead 

11 women’s business center in providing export as12 sistance under the program established under 

13 paragraph (2). 

14 ‘‘(B) LIMITATION.—The total amount reim15 bursed by the Administrator under subparagraph 

16 (A) may not exceed $350,000 in any fiscal year. 

17 ‘‘(j) PERFORMANCE MEASURES.— 

18 ‘‘(1) IN GENERAL.—The Associate Administrator 

19 shall develop performance measures for the Adminis20 tration to support export growth goals for the activi21 ties of the Office under this section that include— 

22 ‘‘(A) the number of small business concerns 

23 that— 

24 ‘‘(i) receive assistance from the Admin25 istration; 
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1 ‘‘(ii) had not exported goods or services 

2 before receiving the assistance described in 

3 clause (i); and 

4 ‘‘(iii) export goods or services; 

5 ‘‘(B) the number of small business concerns 

6 receiving assistance from the Administration 

7 that export goods or services to a market outside 

8 the United States into which the small business 

9 concern did not export before receiving the assist10 ance; 

11 ‘‘(C) export revenues by small business con12 cerns assisted by programs of the Administra13 tion; 

14 ‘‘(D) the number of small business concerns 

15 referred to an Export Assistance Center or a 

16 small business development center by the staff of 

17 the Office; 

18 ‘‘(E) the number of small business concerns 

19 referred to the Administration by an Export As20 sistance Center or a small business development 

21 center; and 

22 ‘‘(F) the number of small business concerns 

23 referred to the Department of Commerce, the De24 partment of Agriculture, the Department of 

25 State, the Export-Import Bank of the United 
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1 States, the Overseas Private Investment Corpora2 tion, or the United States Trade and Develop3 ment Agency by the staff of the Office, an Export 

4 Assistance Center, or a small business develop5 ment center. 

6 ‘‘(2) JOINT PERFORMANCE MEASURES.—The As7 sociate Administrator shall develop joint performance 

8 measures for the district offices of the Administration 

9 and the Export Assistance Centers that include the 

10 number of export loans made under— 

11 ‘‘(A) section 7(a)(16); 

12 ‘‘(B) the Export Working Capital Program 

13 established under section 7(a)(14); 

14 ‘‘(C) the Preferred Lenders Program, as de15 fined in section 7(a)(2)(C)(ii); and 

16 ‘‘(D) the export express program established 

17 under section 7(a)(34). 

18 ‘‘(3) CONSISTENCY OF TRACKING.—The Associate 

19 Administrator, in coordination with the departments 

20 and agencies that are represented on the Trade Pro21 motion Coordinating Committee established under 

22 section 2312 of the Export Enhancement Act of 1988 

23 (15 U.S.C. 4727) and the small business development 

24 center network, shall develop a system to track exports 

25 by small business concerns, including information re-
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1 lating to the performance measures developed under 

2 paragraph (1), that is consistent with systems used by 

3 the departments and agencies and the network.’’. 

4 (b) REPORT.—Not later than 60 days after the date 

5 of enactment of this Act, the Administrator shall submit 

6 a report to the Committee on Small Business and Entrepre7 neurship of the Senate and the Committee on Small Busi8 ness of the House of Representatives on any travel by the 

9 staff of the Office of International Trade of the Administra10 tion, during the period beginning on October 1, 2004, and 

11 ending on the date of enactment of the Act, including the 

12 destination of such travel and the benefits to the Adminis13 tration and to small business concerns resulting from such 

14 travel. 

15 SEC. 1205. EXPORT ASSISTANCE CENTERS. 

16 (a) EXPORT ASSISTANCE CENTERS.—Section 22 of the 

17 Small Business Act (15 U.S.C. 649), as amended by this 

18 subtitle, is amended by adding at the end the following: 

19 ‘‘(k) EXPORT ASSISTANCE CENTERS.— 

20 ‘‘(1) EXPORT FINANCE SPECIALISTS.— 

21 ‘‘(A) MINIMUM NUMBER OF EXPORT FI22 NANCE SPECIALISTS.—On and after the date that 

23 is 90 days after the date of enactment of this 

24 subsection, the Administrator, in coordination 

25 with the Secretary of Commerce, shall ensure 
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1 that the number of export finance specialists is 

2 not less than the number of such employees so as3 signed on January 1, 2003. 

4 ‘‘(B) EXPORT FINANCE SPECIALISTS AS5 SIGNED TO EACH REGION OF THE ADMINISTRA6 TION.—On and after the date that is 2 years 

7 after the date of enactment of this subsection, the 

8 Administrator, in coordination with the Sec9 retary of Commerce, shall ensure that there are 

10 not fewer than 3 export finance specialists in 

11 each region of the Administration. 

12 ‘‘(2) PLACEMENT OF EXPORT FINANCE SPECIAL13 ISTS.— 

14 ‘‘(A) PRIORITY.—The Administrator shall 

15 give priority, to the maximum extent prac16 ticable, to placing employees of the Administra17 tion at any Export Assistance Center that— 

18 ‘‘(i) had an Administration employee 

19 assigned to the Export Assistance Center be20 fore January 2003; and 

21 ‘‘(ii) has not had an Administration 

22 employee assigned to the Export Assistance 

23 Center during the period beginning Janu24 ary 2003, and ending on the date of enact-
62 

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1 ment of this subsection, either through re2 tirement or reassignment. 

3 ‘‘(B) NEEDS OF EXPORTERS.—The Admin4 istrator shall, to the maximum extent prac5 ticable, strategically assign Administration em6 ployees to Export Assistance Centers, based on 

7 the needs of exporters. 

8 ‘‘(C) RULE OF CONSTRUCTION.—Nothing in 

9 this subsection may be construed to require the 

10 Administrator to reassign or remove an export 

11 finance specialist who is assigned to an Export 

12 Assistance Center on the date of enactment of 

13 this subsection. 

14 ‘‘(3) GOALS.—The Associate Administrator shall 

15 work with the Department of Commerce, the Export16 Import Bank of the United States, and the Overseas 

17 Private Investment Corporation to establish shared 

18 annual goals for the Export Assistance Centers. 

19 ‘‘(4) OVERSIGHT.—The Associate Administrator 

20 shall designate an individual within the Administra21 tion to oversee all activities conducted by Administra22 tion employees assigned to Export Assistance Centers. 

23 ‘‘(l) DEFINITIONS.—In this section— 
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1 ‘‘(1) the term ‘Associate Administrator’ means 

2 the Associate Administrator for International Trade 

3 described in subsection (a)(2); 

4 ‘‘(2) the term ‘Export Assistance Center’ means 

5 a one-stop shop for United States exporters estab6 lished by the United States and Foreign Commercial 

7 Service of the Department of Commerce pursuant to 

8 section 2301(b)(8) of the Omnibus Trade and Com9 petitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); 

10 ‘‘(3) the term ‘export finance specialist’ means a 

11 full-time equivalent employee of the Office assigned to 

12 an Export Assistance Center to carry out the duties 

13 described in subsection (e); and 

14 ‘‘(4) the term ‘Office’ means the Office of Inter15 national Trade established under subsection (a)(1).’’. 

16 (b) STUDY AND REPORT ON FILLING GAPS IN HIGH17 AND-LOW-EXPORT VOLUME AREAS.— 

18 (1) STUDY AND REPORT.—Not later than 6 

19 months after the date of enactment of this Act, and 

20 every 2 years thereafter, the Administrator shall— 

21 (A) conduct a study of— 

22 (i) the volume of exports for each State; 

23 (ii) the availability of export finance 

24 specialists in each State; 
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1 (iii) the number of exporters in each 

2 State that are small business concerns; 

3 (iv) the percentage of exporters in each 

4 State that are small business concerns; 

5 (v) the change, if any, in the number 

6 of exporters that are small business concerns 

7 in each State— 

8 (I) for the first study conducted 

9 under this subparagraph, during the 

10 10-year period ending on the date of 

11 enactment of this Act; and 

12 (II) for each subsequent study, 

13 during the 10-year period ending on 

14 the date the study is commenced; 

15 (vi) the total value of the exports in 

16 each State by small business concerns; 

17 (vii) the percentage of the total volume 

18 of exports in each State that is attributable 

19 to small business concerns; and 

20 (viii) the change, if any, in the per21 centage of the total volume of exports in 

22 each State that is attributable to small busi23 ness concerns— 

24 (I) for the first study conducted 

25 under this subparagraph, during the 
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1 10-year period ending on the date of 

2 enactment of this Act; and 

3 (II) for each subsequent study, 

4 during the 10-year period ending on 

5 the date the study is commenced; and 

6 (B) submit to the Committee on Small 

7 Business and Entrepreneurship of the Senate 

8 and the Committee on Small Business of the 

9 House of Representatives a report containing— 

10 (i) the results of the study under sub11 paragraph (A); 

12 (ii) to the extent practicable, a rec13 ommendation regarding how to eliminate 

14 gaps between the supply of and demand for 

15 export finance specialists in the 15 States 

16 that have the greatest volume of exports, 

17 based upon the most recent data available 

18 from the Department of Commerce; 

19 (iii) to the extent practicable, a rec20 ommendation regarding how to eliminate 

21 gaps between the supply of and demand for 

22 export finance specialists in the 15 States 

23 that have the lowest volume of exports, based 

24 upon the most recent data available from 

25 the Department of Commerce; and 
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1 (iv) such additional information as the 

2 Administrator determines is appropriate. 

3 (2) DEFINITION.—In this subsection, the term 

4 ‘‘export finance specialist’’ has the meaning given 

5 that term in section 22(l) of the Small Business Act, 

6 as added by this title. 

7 SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS. 

8 (a) LOAN LIMITS.— 

9 (1) TOTAL AMOUNT OUTSTANDING.—Section 

10 7(a)(3)(B) of the Small Business Act (15 U.S.C. 

11 636(a)(3)(B)) is amended by striking ‘‘$1,750,000, of 

12 which not more than $1,250,000’’ and inserting 

13 ‘‘$4,500,000 (or if the gross loan amount would exceed 

14 $5,000,000), of which not more than $4,000,000’’. 

15 (2) PARTICIPATION.—Section 7(a)(2) of the 

16 Small Business Act (15 U.S.C. 636(a)(2)) is amend17 ed— 

18 (A) in subparagraph (A), in the matter pre19 ceding clause (i), by striking ‘‘subparagraph 

20 (B)’’ and inserting ‘‘subparagraphs (B), (D), 

21 and (E)’’; 

22 (B) in subparagraph (D), by striking ‘‘Not23 withstanding subparagraph (A), in’’ and insert24 ing ‘‘In’’; and 

25 (C) by adding at the end the following: 
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1 ‘‘(E) PARTICIPATION IN INTERNATIONAL

2 TRADE LOAN.—In an agreement to participate 

3 in a loan on a deferred basis under paragraph 

4 (16), the participation by the Administration 

5 may not exceed 90 percent.’’. 

6 (b) WORKING CAPITAL.—Section 7(a)(16)(A) of the 

7 Small Business Act (15 U.S.C. 636(a)(16)(A)) is amend8 ed— 

9 (1) in the matter preceding clause (i), by strik10 ing ‘‘in—’’ and inserting ‘‘—’’; 

11 (2) in clause (i)— 

12 (A) by inserting ‘‘in’’ after ‘‘(i)’’; and 

13 (B) by striking ‘‘or’’ at the end; 

14 (3) in clause (ii)— 

15 (A) by inserting ‘‘in’’ after ‘‘(ii)’’; and 

16 (B) by striking the period at the end and 

17 inserting ‘‘, including any debt that qualifies for 

18 refinancing under any other provision of this 

19 subsection; or’’; and 

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

21 ‘‘(iii) by providing working capital.’’. 

22 (c) COLLATERAL.—Section 7(a)(16)(B) of the Small 

23 Business Act (15 U.S.C. 636(a)(16)(B)) is amended— 

24 (1) by striking ‘‘Each loan’’ and inserting the 

25 following: 
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1 ‘‘(i) IN GENERAL.—Except as provided 

2 in clause (ii), each loan’’; and 

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

4 ‘‘(ii) EXCEPTION.—A loan under this 

5 paragraph may be secured by a second lien 

6 position on the property or equipment fi7 nanced by the loan or on other assets of the 

8 small business concern, if the Administrator 

9 determines the lien provides adequate assur10 ance of the payment of the loan.’’. 

11 (d) EXPORT WORKING CAPITAL PROGRAM.—Section 

12 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 

13 amended— 

14 (1) in paragraph (2)(D), by striking ‘‘not ex15 ceed’’ and inserting ‘‘be’’; and 

16 (2) in paragraph (14)— 

17 (A) by striking ‘‘(A) The Administration’’ 

18 and inserting the following: ‘‘EXPORT WORKING

19 CAPITAL PROGRAM.— 

20 ‘‘(A) IN GENERAL.—The Administrator’’; 

21 (B) by striking ‘‘(B) When considering’’ 

22 and inserting the following: 

23 ‘‘(C) CONSIDERATIONS.—When consid24 ering’’; 
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† HR 5297 EAS 

1 (C) by striking ‘‘(C) The Administration’’ 

2 and inserting the following: 

3 ‘‘(D) MARKETING.—The Administrator’’; 

4 and 

5 (D) by inserting after subparagraph (A) the 

6 following: 

7 ‘‘(B) TERMS.— 

8 ‘‘(i) LOAN AMOUNT.—The Adminis9 trator may not guarantee a loan under this 

10 paragraph of more than $5,000,000. 

11 ‘‘(ii) FEES.— 

12 ‘‘(I) IN GENERAL.—For a loan 

13 under this paragraph, the Adminis14 trator shall collect the fee assessed 

15 under paragraph (23) not more fre16 quently than once each year. 

17 ‘‘(II) UNTAPPED CREDIT.—The 

18 Administrator may not assess a fee on 

19 capital that is not accessed by the 

20 small business concern.’’. 

21 (e) PARTICIPATION IN PREFERRED LENDERS PRO22 GRAM.—Section 7(a)(2)(C) of the Small Business Act (15 

23 U.S.C. 636(a)(2)(C)) is amended— 

24 (1) by redesignating clause (ii) as clause (iii); 

25 and 
70 

† HR 5297 EAS 

1 (2) by inserting after clause (i) the following: 

2 ‘‘(ii) EXPORT-IMPORT BANK LEND3 ERS.—Any lender that is participating in 

4 the Delegated Authority Lender Program of 

5 the Export-Import Bank of the United 

6 States (or any successor to the Program) 

7 shall be eligible to participate in the Pre8 ferred Lenders Program.’’. 

9 (f) EXPORT EXPRESS PROGRAM.—Section 7(a) of the 

10 Small Business Act (15 U.S.C. 636(a)) is amended by add11 ing at the end the following: 

12 ‘‘(35) EXPORT EXPRESS PROGRAM.— 

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

14 ‘‘(i) the term ‘export development ac15 tivity’ includes— 

16 ‘‘(I) obtaining a standby letter of 

17 credit when required as a bid bond, 

18 performance bond, or advance payment 

19 guarantee; 

20 ‘‘(II) participation in a trade 

21 show that takes place outside the 

22 United States; 

23 ‘‘(III) translation of product bro24 chures or catalogues for use in markets 

25 outside the United States; 
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1 ‘‘(IV) obtaining a general line of 

2 credit for export purposes; 

3 ‘‘(V) performing a service contract 

4 from buyers located outside the United 

5 States; 

6 ‘‘(VI) obtaining transaction-spe7 cific financing associated with com8 pleting export orders; 

9 ‘‘(VII) purchasing real estate or 

10 equipment to be used in the production 

11 of goods or services for export; 

12 ‘‘(VIII) providing term loans or 

13 other financing to enable a small busi14 ness concern, including an export trad15 ing company and an export manage16 ment company, to develop a market 

17 outside the United States; and 

18 ‘‘(IX) acquiring, constructing, 

19 renovating, modernizing, improving, or 

20 expanding a production facility or 

21 equipment to be used in the United 

22 States in the production of goods or 

23 services for export; and 

24 ‘‘(ii) the term ‘express loan’ means a 

25 loan in which a lender uses to the max-
72 

† HR 5297 EAS 

1 imum extent practicable the loan analyses, 

2 procedures, and documentation of the lender 

3 to provide expedited processing of the loan 

4 application. 

5 ‘‘(B) AUTHORITY.—The Administrator may 

6 guarantee the timely payment of an express loan 

7 to a small business concern made for an export 

8 development activity. 

9 ‘‘(C) LEVEL OF PARTICIPATION.— 

10 ‘‘(i) MAXIMUM AMOUNT.—The max11 imum amount of an express loan guaran12 teed under this paragraph shall be 

13 $500,000. 

14 ‘‘(ii) PERCENTAGE.—For an express 

15 loan guaranteed under this paragraph, the 

16 Administrator shall guarantee— 

17 ‘‘(I) 90 percent of a loan that is 

18 not more than $350,000; and 

19 ‘‘(II) 75 percent of a loan that is 

20 more than $350,000 and not more than 

21 $500,000.’’. 

22 (g) ANNUAL LISTING OF EXPORT FINANCE LEND23 ERS.—Section 7(a)(16) of the Small Business Act (15 

24 U.S.C. 636(a)(16)) is amended by adding at the end the 

25 following: 
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† HR 5297 EAS 

1 ‘‘(F) LIST OF EXPORT FINANCE LENDERS.— 

2 ‘‘(i) PUBLICATION OF LIST RE3 QUIRED.—The Administrator shall publish 

4 an annual list of the banks and partici5 pating lending institutions that, during the 

6 1-year period ending on the date of publica7 tion of the list, have made loans guaranteed 

8 by the Administration under— 

9 ‘‘(I) this paragraph; 

10 ‘‘(II) paragraph (14); or 

11 ‘‘(III) paragraph (34). 

12 ‘‘(ii) AVAILABILITY OF LIST.—The Ad13 ministrator shall— 

14 ‘‘(I) post the list published under 

15 clause (i) on the website of the Admin16 istration; and 

17 ‘‘(II) make the list published 

18 under clause (i) available, upon re19 quest, at each district office of the Ad20 ministration.’’. 

21 (h) APPLICABILITY.—The amendments made by sub22 sections (a) through (f) shall apply with respect to any loan 

23 made after the date of enactment of this Act. 
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1 SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT 

2 PROGRAM. 

3 (a) DEFINITIONS.—In this section— 

4 (1) the term ‘‘eligible small business concern’’ 

5 means a small business concern that— 

6 (A) has been in business for not less than 

7 the 1-year period ending on the date on which 

8 assistance is provided using a grant under this 

9 section; 

10 (B) is operating profitably, based on oper11 ations in the United States; 

12 (C) has demonstrated understanding of the 

13 costs associated with exporting and doing busi14 ness with foreign purchasers, including the costs 

15 of freight forwarding, customs brokers, packing 

16 and shipping, as determined by the Associate 

17 Administrator; and 

18 (D) has in effect a strategic plan for export19 ing; 

20 (2) the term ‘‘program’’ means the State Trade 

21 and Export Promotion Grant Program established 

22 under subsection (b); 

23 (3) the term ‘‘small business concern owned and 

24 controlled by women’’ has the meaning given that 

25 term in section 3 of the Small Business Act (15 

26 U.S.C. 632); 
75 

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1 (4) the term ‘‘socially and economically dis2 advantaged small business concern’’ has the meaning 

3 given that term in section 8(a)(4)(A) of the Small 

4 Business Act (15 U.S.C. 6537(a)(4)(A)); and 

5 (5) the term ‘‘State’’ means each of the several 

6 States, the District of Columbia, the Commonwealth 

7 of Puerto Rico, the Virgin Islands, Guam, and Amer8 ican Samoa. 

9 (b) ESTABLISHMENT OF PROGRAM.—The Associate 

10 Administrator shall establish a 3-year trade and export 

11 promotion pilot program to be known as the State Trade 

12 and Export Promotion Grant Program, to make grants to 

13 States to carry out export programs that assist eligible 

14 small business concerns in— 

15 (1) participation in a foreign trade mission; 

16 (2) a foreign market sales trip; 

17 (3) a subscription to services provided by the De18 partment of Commerce; 

19 (4) the payment of website translation fees; 

20 (5) the design of international marketing media; 

21 (6) a trade show exhibition; 

22 (7) participation in training workshops; or 

23 (8) any other export initiative determined ap24 propriate by the Associate Administrator. 

25 (c) GRANTS.— 
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1 (1) JOINT REVIEW.—In carrying out the pro2 gram, the Associate Administrator may make a grant 

3 to a State to increase the number of eligible small 

4 business concerns in the State that export or to in5 crease the value of the exports by eligible small busi6 ness concerns in the State. 

7 (2) CONSIDERATIONS.—In making grants under 

8 this section, the Associate Administrator may give 

9 priority to an application by a State that proposes 

10 a program that— 

11 (A) focuses on eligible small business con12 cerns as part of an export promotion program; 

13 (B) demonstrates success in promoting ex14 ports by— 

15 (i) socially and economically disadvan16 taged small business concerns; 

17 (ii) small business concerns owned or 

18 controlled by women; and 

19 (iii) rural small business concerns; 

20 (C) promotes exports from a State that is 

21 not 1 of the 10 States with the highest percentage 

22 of exporters that are small business concerns, 

23 based upon the latest data available from the De24 partment of Commerce; and 
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1 (D) promotes new-to-market export opportu2 nities to the People’s Republic of China for eligi3 ble small business concerns in the United States. 

4 (3) LIMITATIONS.— 

5 (A) SINGLE APPLICATION.—A State may 

6 not submit more than 1 application for a grant 

7 under the program in any 1 fiscal year. 

8 (B) PROPORTION OF AMOUNTS.—The total 

9 value of grants under the program made during 

10 a fiscal year to the 10 States with the highest 

11 number of exporters that are small business con12 cerns, based upon the latest data available from 

13 the Department of Commerce, shall be not more 

14 than 40 percent of the amounts appropriated for 

15 the program for that fiscal year. 

16 (4) APPLICATION.—A State desiring a grant 

17 under the program shall submit an application at 

18 such time, in such manner, and accompanied by such 

19 information as the Associate Administrator may es20 tablish. 

21 (d) COMPETITIVE BASIS.—The Associate Adminis22 trator shall award grants under the program on a competi23 tive basis. 
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1 (e) FEDERAL SHARE.—The Federal share of the cost 

2 of an export program carried out using a grant under the 

3 program shall be— 

4 (1) for a State that has a high export volume, as 

5 determined by the Associate Administrator, not more 

6 than 65 percent; and 

7 (2) for a State that does not have a high export 

8 volume, as determined by the Associate Adminis9 trator, not more than 75 percent. 

10 (f) NON-FEDERAL SHARE.—The non-Federal share of 

11 the cost of an export program carried using a grant under 

12 the program shall be comprised of not less than 50 percent 

13 cash and not more than 50 percent of indirect costs and 

14 in-kind contributions, except that no such costs or contribu15 tions may be derived from funds from any other Federal 

16 program. 

17 (g) REPORTS.— 

18 (1) INITIAL REPORT.—Not later than 120 days 

19 after the date of enactment of this Act, the Associate 

20 Administrator shall submit to the Committee on 

21 Small Business and Entrepreneurship of the Senate 

22 and the Committee on Small Business of the House 

23 of Representatives a report, which shall include— 

24 (A) a description of the structure of and 

25 procedures for the program; 
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1 (B) a management plan for the program; 

2 and 

3 (C) a description of the merit-based review 

4 process to be used in the program. 

5 (2) ANNUAL REPORTS.—The Associate Adminis6 trator shall submit an annual report to the Com7 mittee on Small Business and Entrepreneurship of 

8 the Senate and the Committee on Small Business of 

9 the House of Representatives regarding the program, 

10 which shall include— 

11 (A) the number and amount of grants made 

12 under the program during the preceding year; 

13 (B) a list of the States receiving a grant 

14 under the program during the preceding year, 

15 including the activities being performed with 

16 grant; and 

17 (C) the effect of each grant on exports by el18 igible small business concerns in the State receiv19 ing the grant. 

20 (h) REVIEWS BY INSPECTOR GENERAL.— 

21 (1) IN GENERAL.—The Inspector General of the 

22 Administration shall conduct a review of— 

23 (A) the extent to which recipients of grants 

24 under the program are measuring the perform-
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1 ance of the activities being conducted and the re2 sults of the measurements; and 

3 (B) the overall management and effective4 ness of the program. 

5 (2) REPORT.—Not later than September 30, 

6 2012, the Inspector General of the Administration 

7 shall submit to the Committee on Small Business and 

8 Entrepreneurship of the Senate and the Committee on 

9 Small Business of the House of Representatives a re10 port regarding the review conducted under paragraph 

11 (1). 

12 (i) AUTHORIZATION OF APPROPRIATIONS.—There is 

13 authorized to be appropriated to carry out the program 

14 $30,000,000 for each of fiscal years 2011, 2012, and 2013. 

15 (j) TERMINATION.—The authority to carry out the pro16 gram shall terminate 3 years after the date on which the 

17 Associate Administrator establishes the program. 

18 SEC. 1208. RURAL EXPORT PROMOTION. 

19 Not later than 6 months after the date of enactment 

20 of this Act, the Administrator, in consultation with the Sec21 retary of Agriculture and the Secretary of Commerce, shall 

22 submit to the Committee on Small Business and Entrepre23 neurship of the Senate and the Committee on Small Busi24 ness of the House of Representatives a report that con25 tains— 
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1 (1) a description of each program of the Admin2 istration that promotes exports by rural small busi3 ness concerns, including— 

4 (A) the number of rural small business con5 cerns served by the program; 

6 (B) the change, if any, in the number of 

7 rural small business concerns as a result of par8 ticipation in the program during the 10-year pe9 riod ending on the date of enactment of this Act; 

10 (C) the volume of exports by rural small 

11 business concerns that participate in the pro12 gram; and 

13 (D) the change, if any, in the volume of ex14 ports by rural small businesses that participate 

15 in the program during the 10-year period ending 

16 on the date of enactment of this Act; 

17 (2) a description of the coordination between 

18 programs of the Administration and other Federal 

19 programs that promote exports by rural small busi20 ness concerns; 

21 (3) recommendations, if any, for improving the 

22 coordination described in paragraph (2); 

23 (4) a description of any plan by the Administra24 tion to market the international trade financing pro25 grams of the Administration through lenders that— 
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1 (A) serve rural small business concerns; and 

2 (B) are associated with financing programs 

3 of the Department of Agriculture; 

4 (5) recommendations, if any, for improving co5 ordination between the counseling programs and ex6 port financing programs of the Administration, in 

7 order to increase the volume of exports by rural small 

8 business concerns; and 

9 (6) any additional information the Adminis10 trator determines is necessary. 

11 SEC. 1209. INTERNATIONAL TRADE COOPERATION BY 

12 SMALL BUSINESS DEVELOPMENT CENTERS. 

13 Section 21(a) of the Small Business Act (15 U.S.C. 

14 648(a)) is amended— 

15 (1) by striking ‘‘(2) The Small Business Develop16 ment Centers’’ and inserting the following: 

17 ‘‘(2) COOPERATION TO PROVIDE INTERNATIONAL

18 TRADE SERVICES.— 

19 ‘‘(A) INFORMATION AND SERVICES.—The 

20 small business development centers’’; and 

21 (2) in paragraph (2)— 

22 (A) in subparagraph (A), as so designated, 

23 by inserting ‘‘(including State trade agencies),’’ 

24 after ‘‘local agencies’’; and 

25 (B) by adding at the end the following: 
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1 ‘‘(B) COOPERATION WITH STATE TRADE

2 AGENCIES AND EXPORT ASSISTANCE CENTERS.— 

3 A small business development center that coun4 sels a small business concern on issues relating 

5 to international trade shall— 

6 ‘‘(i) consult with State trade agencies 

7 and Export Assistance Centers to provide 

8 appropriate services to the small business 

9 concern; and 

10 ‘‘(ii) as necessary, refer the small busi11 ness concern to a State trade agency or an 

12 Export Assistance Center for further coun13 seling or assistance. 

14 ‘‘(C) DEFINITION.—In this paragraph, the 

15 term ‘Export Assistance Center’ has the same 

16 meaning as in section 22.’’. 

17 Subtitle C—Small Business 

18 Contracting 

19 PART I—CONTRACT BUNDLING 

20 SEC. 1311. SMALL BUSINESS ACT. 

21 Section 3 of the Small Business Act (15 U.S.C. 632), 

22 as amended by section 1202, is amended by adding at the 

23 end the following: 

24 ‘‘(v) MULTIPLE AWARD CONTRACT.—In this Act, the 

25 term ‘multiple award contract’ means— 
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1 ‘‘(1) a multiple award task order contract or de2 livery order contract that is entered into under the 

3 authority of sections 303H through 303K of the Fed4 eral Property and Administrative Services Act of 

5 1949 (41 U.S.C. 253h through 253k); and 

6 ‘‘(2) any other indefinite delivery, indefinite 

7 quantity contract that is entered into by the head of 

8 a Federal agency with 2 or more sources pursuant to 

9 the same solicitation.’’. 

10 SEC. 1312. LEADERSHIP AND OVERSIGHT. 

11 (a) IN GENERAL.—Section 15 of the Small Business 

12 Act (15 U.S.C. 644) is amended by adding at the end the 

13 following: 

14 ‘‘(q) BUNDLING ACCOUNTABILITY MEASURES.— 

15 ‘‘(1) TEAMING REQUIREMENTS.—Each Federal 

16 agency shall include in each solicitation for any mul17 tiple award contract above the substantial bundling 

18 threshold of the Federal agency a provision soliciting 

19 bids from any responsible source, including respon20 sible small business concerns and teams or joint ven21 tures of small business concerns. 

22 ‘‘(2) POLICIES ON REDUCTION OF CONTRACT

23 BUNDLING.— 

24 ‘‘(A) IN GENERAL.—Not later than 1 year 

25 after the date of enactment of this subsection, the 
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1 Federal Acquisition Regulatory Council estab2 lished under section 25(a) of the Office of Federal 

3 Procurement Policy Act (41 U.S.C. 4219(a)) 

4 shall amend the Federal Acquisition Regulation 

5 issued under section 25 of such Act to— 

6 ‘‘(i) establish a Government-wide pol7 icy regarding contract bundling, including 

8 regarding the solicitation of teaming and 

9 joint ventures under paragraph (1); and 

10 ‘‘(ii) require that the policy established 

11 under clause (i) be published on the website 

12 of each Federal agency. 

13 ‘‘(B) RATIONALE FOR CONTRACT BUN14 DLING.—Not later than 30 days after the date on 

15 which the head of a Federal agency submits data 

16 certifications to the Administrator for Federal 

17 Procurement Policy, the head of the Federal 

18 agency shall publish on the website of the Federal 

19 agency a list and rationale for any bundled con20 tract for which the Federal agency solicited bids 

21 or that was awarded by the Federal agency. 

22 ‘‘(3) REPORTING.—Not later than 90 days after 

23 the date of enactment of this subsection, and every 3 

24 years thereafter, the Administrator shall submit to the 

25 Committee on Small Business and Entrepreneurship 
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1 of the Senate and the Committee on Small Business 

2 of the House of Representatives a report regarding 

3 procurement center representatives and commercial 

4 market representatives, which shall— 

5 ‘‘(A) identify each area for which the Ad6 ministration has assigned a procurement center 

7 representative or a commercial market represent8 ative; 

9 ‘‘(B) explain why the Administration se10 lected the areas identified under subparagraph 

11 (A); and 

12 ‘‘(C) describe the activities performed by 

13 procurement center representatives and commer14 cial market representatives.’’. 

15 (b) TECHNICAL CORRECTION.—Section 15(g) of the 

16 Small Business Act (15 U.S.C. 644(g)) is amended by strik17 ing ‘‘Administrator of the Office of Federal Procurement 

18 Policy’’ each place it appears and inserting ‘‘Administrator 

19 for Federal Procurement Policy’’. 

20 (c) REPORT.— 

21 (1) IN GENERAL.—Not later than 180 days after 

22 the date of enactment of this Act, the Comptroller 

23 General of the United States shall submit to Congress 

24 a report regarding the procurement center representa25 tive program of the Administration. 
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1 (2) CONTENTS.—The report submitted under 

2 paragraph (1) shall— 

3 (A) address ways to improve the effective4 ness of the procurement center representative 

5 program in helping small business concerns ob6 tain Federal contracts; 

7 (B) evaluate the effectiveness of procurement 

8 center representatives and commercial marketing 

9 representatives; and 

10 (C) include recommendations, if any, on 

11 how to improve the procurement center rep12 resentative program. 

13 (d) ELECTRONIC PROCUREMENT CENTER REPRESENT14 ATIVE.— 

15 (1) IN GENERAL.—Not later than 1 year after 

16 the date of enactment of this Act, the Administrator 

17 shall implement a 3-year pilot electronic procurement 

18 center representative program. 

19 (2) REPORT.—Not later than 30 days after the 

20 pilot program under paragraph (1) ends, the Comp21 troller General of the United States shall submit to 

22 the Committee on Small Business and Entrepreneur23 ship of the Senate and the Committee on Small Busi24 ness of the House of Representatives a report regard25 ing the pilot program. 
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1 SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS. 

2 (a) IN GENERAL.—The Small Business Act (15 U.S.C. 

3 631 et seq.) is amended— 

4 (1) by redesignating section 44 as section 45; 

5 and 

6 (2) by inserting after section 43 the following: 

7 ‘‘SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS. 

8 ‘‘(a) DEFINITIONS.—In this section— 

9 ‘‘(1) the term ‘Chief Acquisition Officer’ means 

10 the employee of a Federal agency designated as the 

11 Chief Acquisition Officer for the Federal agency under 

12 section 16(a) of the Office of Federal Procurement 

13 Policy Act (41 U.S.C. 414(a)); 

14 ‘‘(2) the term ‘consolidation of contract require15 ments’, with respect to contract requirements of a 

16 Federal agency, means a use of a solicitation to ob17 tain offers for a single contract or a multiple award 

18 contract to satisfy 2 or more requirements of the Fed19 eral agency for goods or services that have been pro20 vided to or performed for the Federal agency under 2 

21 or more separate contracts lower in cost than the total 

22 cost of the contract for which the offers are solicited; 

23 and 

24 ‘‘(3) the term ‘senior procurement executive’ 

25 means an official designated under section 16(c) of 

26 the Office of Federal Procurement Policy Act (41 
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1 U.S.C. 414(c)) as the senior procurement executive for 

2 a Federal agency. 

3 ‘‘(b) POLICY.—The head of each Federal agency shall 

4 ensure that the decisions made by the Federal agency re5 garding consolidation of contract requirements of the Fed6 eral agency are made with a view to providing small busi7 ness concerns with appropriate opportunities to participate 

8 as prime contractors and subcontractors in the procure9 ments of the Federal agency. 

10 ‘‘(c) LIMITATION ON USE OF ACQUISITION STRATE11 GIES INVOLVING CONSOLIDATION.— 

12 ‘‘(1) IN GENERAL.—Subject to paragraph (4), the 

13 head of a Federal agency may not carry out an ac14 quisition strategy that includes a consolidation of 

15 contract requirements of the Federal agency with a 

16 total value of more than $2,000,000, unless the senior 

17 procurement executive or Chief Acquisition Officer for 

18 the Federal agency, before carrying out the acquisi19 tion strategy— 

20 ‘‘(A) conducts market research; 

21 ‘‘(B) identifies any alternative contracting 

22 approaches that would involve a lesser degree of 

23 consolidation of contract requirements; 
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1 ‘‘(C) makes a written determination that 

2 the consolidation of contract requirements is nec3 essary and justified; 

4 ‘‘(D) identifies any negative impact by the 

5 acquisition strategy on contracting with small 

6 business concerns; and 

7 ‘‘(E) certifies to the head of the Federal 

8 agency that steps will be taken to include small 

9 business concerns in the acquisition strategy. 

10 ‘‘(2) DETERMINATION THAT CONSOLIDATION IS

11 NECESSARY AND JUSTIFIED.— 

12 ‘‘(A) IN GENERAL.—A senior procurement 

13 executive or Chief Acquisition Officer may deter14 mine that an acquisition strategy involving a 

15 consolidation of contract requirements is nec16 essary and justified for the purposes of para17 graph (1)(C) if the benefits of the acquisition 

18 strategy substantially exceed the benefits of each 

19 of the possible alternative contracting approaches 

20 identified under paragraph (1)(B). 

21 ‘‘(B) SAVINGS IN ADMINISTRATIVE OR PER22 SONNEL COSTS.—For purposes of subparagraph 

23 (A), savings in administrative or personnel costs 

24 alone do not constitute a sufficient justification 

25 for a consolidation of contract requirements in a 
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1 procurement unless the expected total amount of 

2 the cost savings, as determined by the senior pro3 curement executive or Chief Acquisition Officer, 

4 is expected to be substantial in relation to the 

5 total cost of the procurement. 

6 ‘‘(3) BENEFITS TO BE CONSIDERED.—The bene7 fits considered for the purposes of paragraphs (1) and 

8 (2) may include cost and, regardless of whether quan9 tifiable in dollar amounts— 

10 ‘‘(A) quality; 

11 ‘‘(B) acquisition cycle; 

12 ‘‘(C) terms and conditions; and 

13 ‘‘(D) any other benefit. 

14 ‘‘(4) DEPARTMENT OF DEFENSE.— 

15 ‘‘(A) IN GENERAL.—The Department of De16 fense and each military department shall comply 

17 with this section until after the date described in 

18 subparagraph (C). 

19 ‘‘(B) RULE.—After the date described in 

20 subparagraph (C), contracting by the Depart21 ment of Defense or a military department shall 

22 be conducted in accordance with section 2382 of 

23 title 10, United States Code. 

24 ‘‘(C) DATE.—The date described in this sub25 paragraph is the date on which the Adminis-
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1 trator determines the Department of Defense or 

2 a military department is in compliance with the 

3 Government-wide contracting goals under section 

4 15.’’. 

5 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec6 tion 2382(b)(1) of title 10, United States Code, is amended 

7 by striking ‘‘An official’’ and inserting ‘‘Subject to section 

8 44(c)(4), an official’’. 

9 SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM. 

10 (a) DEFINITIONS.—In this section— 

11 (1) the term ‘‘Pilot Program’’ means the Small 

12 Business Teaming Pilot Program established under 

13 subsection (b); and 

14 (2) the term ‘‘eligible organization’’ means a 

15 well-established national organization for small busi16 ness concerns with the capacity to provide assistance 

17 to small business concerns (which may be provided 

18 with the assistance of the Administrator) relating 

19 to— 

20 (A) customer relations and outreach; 

21 (B) team relations and outreach; and 

22 (C) performance measurement and quality 

23 assurance. 
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1 (b) ESTABLISHMENT.—The Administrator shall estab2 lish a Small Business Teaming Pilot Program for teaming 

3 and joint ventures involving small business concerns. 

4 (c) GRANTS.—Under the Pilot Program, the Adminis5 trator may make grants to eligible organizations to provide 

6 assistance and guidance to teams of small business concerns 

7 seeking to compete for larger procurement contracts. 

8 (d) CONTRACTING OPPORTUNITIES.—The Adminis9 trator shall work with eligible organizations receiving a 

10 grant under the Pilot Program to recommend appropriate 

11 contracting opportunities for teams or joint ventures of 

12 small business concerns. 

13 (e) REPORT.—Not later than 1 year before the date 

14 on which the authority to carry out the Pilot Program ter15 minates under subsection (f), the Administrator shall sub16 mit to the Committee on Small Business and Entrepreneur17 ship of the Senate and the Committee on Small Business 

18 of the House of Representatives a report on the effectiveness 

19 of the Pilot Program. 

20 (f) TERMINATION.—The authority to carry out the 

21 Pilot Program shall terminate 5 years after the date of en22 actment of this Act. 

23 (g) AUTHORIZATION OF APPROPRIATIONS.—There are 

24 authorized to be appropriated for grants under subsection 

25 (c) $5,000,000 for each of fiscal years 2010 through 2015. 
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1 PART II—SUBCONTRACTING INTEGRITY 

2 SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS. 

3 Not later than 1 year after the date of enactment of 

4 this Act, the Administrator, in consultation with the Ad5 ministrator for Federal Procurement Policy, shall promul6 gate regulations relating to, and the Federal Acquisition 

7 Regulatory Council established under section 25(a) of the 

8 Office of Federal Procurement Policy Act (41 U.S.C. 

9 421(a)) shall amend the Federal Acquisition Regulation 

10 issued under section 25 of such Act to establish a policy 

11 on, subcontracting compliance relating to small business 

12 concerns, including assignment of compliance responsibil13 ities between contracting offices, small business offices, and 

14 program offices and periodic oversight and review activi15 ties. 

16 SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVE17 MENTS. 

18 Section 8(d)(6) of the Small Business Act (15 U.S.C. 

19 637(d)(6)) is amended— 

20 (1) in subparagraph (E), by striking ‘‘and’’ at 

21 the end; 

22 (2) in subparagraph (F), by striking the period 

23 at the end and inserting ‘‘; and’’; and 

24 (3) by adding at the end, the following: 

25 ‘‘(G) a representation that the offeror or 

26 bidder will— 
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1 ‘‘(i) make a good faith effort to acquire 

2 articles, equipment, supplies, services, or 

3 materials, or obtain the performance of con4 struction work from the small business con5 cerns used in preparing and submitting to 

6 the contracting agency the bid or proposal, 

7 in the same amount and quality used in 

8 preparing and submitting the bid or pro9 posal; and 

10 ‘‘(ii) provide to the contracting officer 

11 a written explanation if the offeror or bid12 der fails to acquire articles, equipment, sup13 plies, services, or materials or obtain the 

14 performance of construction work as de15 scribed in clause (i).’’. 

16 PART III—ACQUISITION PROCESS 

17 SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS 

18 FOR SMALL BUSINESSES. 

19 Section 15 of the Small Business Act (15 U.S.C. 644), 

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

21 the following: 

22 ‘‘(r) MULTIPLE AWARD CONTRACTS.—Not later than 

23 1 year after the date of enactment of this subsection, the 

24 Administrator for Federal Procurement Policy and the Ad25 ministrator, in consultation with the Administrator of Gen-
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1 eral Services, shall, by regulation, establish guidance under 

2 which Federal agencies may, at their discretion— 

3 ‘‘(1) set aside part or parts of a multiple award 

4 contract for small business concerns, including the 

5 subcategories of small business concerns identified in 

6 subsection (g)(2); 

7 ‘‘(2) notwithstanding the fair opportunity re8 quirements under section 2304c(b) of title 10, United 

9 States Code, and section 303J(b) of the Federal Prop10 erty and Administrative Services Act of 1949 (41 

11 U.S.C. 253j(b)), set aside orders placed against mul12 tiple award contracts for small business concerns, in13 cluding the subcategories of small business concerns 

14 identified in subsection (g)(2); and 

15 ‘‘(3) reserve 1 or more contract awards for small 

16 business concerns under full and open multiple award 

17 procurements, including the subcategories of small 

18 business concerns identified in subsection (g)(2).’’. 

19 SEC. 1332. MICRO-PURCHASE GUIDELINES. 

20 Not later than 1 year after the date of enactment of 

21 this Act, the Director of the Office of Management and 

22 Budget, in coordination with the Administrator of General 

23 Services, shall issue guidelines regarding the analysis of 

24 purchase card expenditures to identify opportunities for 

25 achieving and accurately measuring fair participation of 
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1 small business concerns in purchases in an amount not in 

2 excess of the micro-purchase threshold, as defined in section 

3 32 of the Office of Federal Procurement Policy Act (41 

4 U.S.C. 428) (in this section referred to as ‘‘micro-pur5 chases’’), consistent with the national policy on small busi6 ness participation in Federal procurements set forth in sec7 tions 2(a) and 15(g) of the Small Business Act (15 U.S.C. 

8 631(a) and 644(g)), and dissemination of best practices for 

9 participation of small business concerns in micro-pur10 chases. 

11 SEC. 1333. AGENCY ACCOUNTABILITY. 

12 Section 15(g)(2) of the Small Business Act (15 U.S.C. 

13 644(g)(2)) is amended— 

14 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

15 (2) by striking ‘‘Goals established’’ and inserting 

16 the following: 

17 ‘‘(B) Goals established’’; 

18 (3) by striking ‘‘Whenever’’ and inserting the fol19 lowing: 

20 ‘‘(C) Whenever’’; 

21 (4) by striking ‘‘For the purpose of’’ and insert22 ing the following: 

23 ‘‘(D) For the purpose of’’; 
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1 (5) by striking ‘‘The head of each Federal agen2 cy, in attempting to attain such participation’’ and 

3 inserting the following: 

4 ‘‘(E) The head of each Federal agency, in attempting 

5 to attain the participation described in subparagraph (D)’’. 

6 (6) in subparagraph (E), as so designated— 

7 (A) by striking ‘‘(A) contracts’’ and insert8 ing ‘‘(i) contracts’’; and 

9 (B) by striking ‘‘(B) contracts’’ and insert10 ing ‘‘(ii) contracts’’; and 

11 (7) by adding at the end the following: 

12 ‘‘(F)(i) Each procurement employee or program man13 ager described in clause (ii) shall communicate to the subor14 dinates of the procurement employee or program manager 

15 the importance of achieving small business goals. 

16 ‘‘(ii) A procurement employee or program manager de17 scribed in this clause is a senior procurement executive, sen18 ior program manager, or Director of Small and Disadvan19 taged Business Utilization of a Federal agency having con20 tracting authority.’’. 

21 SEC. 1334. PAYMENT OF SUBCONTRACTORS. 

22 Section 8(d) of the Small Business Act (15 U.S.C. 

23 637(d)) is amended by adding at the end the following: 

24 ‘‘(12) PAYMENT OF SUBCONTRACTORS.— 
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1 ‘‘(A) DEFINITION.—In this paragraph, the term 

2 ‘covered contract’ means a contract relating to which 

3 a prime contractor is required to develop a subcon4 tracting plan under paragraph (4) or (5). 

5 ‘‘(B) NOTICE.— 

6 ‘‘(i) IN GENERAL.—A prime contractor for 

7 a covered contract shall notify in writing the 

8 contracting officer for the covered contract if the 

9 prime contractor pays a reduced price to a sub10 contractor for goods and services upon comple11 tion of the responsibilities of the subcontractor or 

12 the payment to a subcontractor is more than 90 

13 days past due for goods or services provided for 

14 the covered contract for which the Federal agency 

15 has paid the prime contractor. 

16 ‘‘(ii) CONTENTS.—A prime contractor shall 

17 include the reason for the reduction in a pay18 ment to or failure to pay a subcontractor in any 

19 notice made under clause (i). 

20 ‘‘(C) PERFORMANCE.—A contracting officer for a 

21 covered contract shall consider the unjustified failure 

22 by a prime contractor to make a full or timely pay23 ment to a subcontractor in evaluating the perform24 ance of the prime contractor. 
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1 ‘‘(D) CONTROL OF FUNDS.—If the contracting of2 ficer for a covered contract determines that a prime 

3 contractor has a history of unjustified, untimely pay4 ments to contractors, the contracting officer shall 

5 record the identity of the contractor in accordance 

6 with the regulations promulgated under subparagraph 

7 (E). 

8 ‘‘(E) REGULATIONS.—Not later than 1 year after 

9 the date of enactment of this paragraph, the Federal 

10 Acquisition Regulatory Council established under sec11 tion 25(a) of the Office of Federal Procurement Policy 

12 Act (41 U.S.C. 421(a)) shall amend the Federal Ac13 quisition Regulation issued under section 25 of such 

14 Act to— 

15 ‘‘(i) describe the circumstances under which 

16 a contractor may be determined to have a his17 tory of unjustified, untimely payments to sub18 contractors; 

19 ‘‘(ii) establish a process for contracting offi20 cers to record the identity of a contractor de21 scribed in clause (i); and 

22 ‘‘(iii) require the identity of a contractor 

23 described in clause (i) to be incorporated in, and 

24 made publicly available through, the Federal 
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1 Awardee Performance and Integrity Information 

2 System, or any successor thereto.’’. 

3 SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS 

4 DEMONSTRATION PROGRAM. 

5 (a) IN GENERAL.—The Business Opportunity Develop6 ment Reform Act of 1988 (Public Law 100–656) is amended 

7 by striking title VII (15 U.S.C. 644 note). 

8 (b) EFFECTIVE DATE AND APPLICABILITY.—The 

9 amendment made by this section— 

10 (1) shall take effect on the date of enactment of 

11 this Act; and 

12 (2) apply to the first full fiscal year after the 

13 date of enactment of this Act. 

14 PART IV—SMALL BUSINESS SIZE AND STATUS 

15 INTEGRITY 

16 SEC. 1341. POLICY AND PRESUMPTIONS. 

17 Section 3 of the Small Business Act (15 U.S.C. 632), 

18 as amended by section 1311, is amended by adding at the 

19 end the following: 

20 ‘‘(w) PRESUMPTION.— 

21 ‘‘(1) IN GENERAL.—In every contract, sub22 contract, cooperative agreement, cooperative research 

23 and development agreement, or grant which is set 

24 aside, reserved, or otherwise classified as intended for 

25 award to small business concerns, there shall be a pre-
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1 sumption of loss to the United States based on the 

2 total amount expended on the contract, subcontract, 

3 cooperative agreement, cooperative research and devel4 opment agreement, or grant whenever it is established 

5 that a business concern other than a small business 

6 concern willfully sought and received the award by 

7 misrepresentation. 

8 ‘‘(2) DEEMED CERTIFICATIONS.—The following 

9 actions shall be deemed affirmative, willful, and in10 tentional certifications of small business size and sta11 tus: 

12 ‘‘(A) Submission of a bid or proposal for a 

13 Federal grant, contract, subcontract, cooperative 

14 agreement, or cooperative research and develop15 ment agreement reserved, set aside, or otherwise 

16 classified as intended for award to small busi17 ness concerns. 

18 ‘‘(B) Submission of a bid or proposal for a 

19 Federal grant, contract, subcontract, cooperative 

20 agreement, or cooperative research and develop21 ment agreement which in any way encourages a 

22 Federal agency to classify the bid or proposal, if 

23 awarded, as an award to a small business con24 cern. 
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1 ‘‘(C) Registration on any Federal electronic 

2 database for the purpose of being considered for 

3 award of a Federal grant, contract, subcontract, 

4 cooperative agreement, or cooperative research 

5 agreement, as a small business concern. 

6 ‘‘(3) CERTIFICATION BY SIGNATURE OF RESPON7 SIBLE OFFICIAL.— 

8 ‘‘(A) IN GENERAL.—Each solicitation, bid, 

9 or application for a Federal contract, sub10 contract, or grant shall contain a certification 

11 concerning the small business size and status of 

12 a business concern seeking the Federal contract, 

13 subcontract, or grant. 

14 ‘‘(B) CONTENT OF CERTIFICATIONS.—A cer15 tification that a business concern qualifies as a 

16 small business concern of the exact size and sta17 tus claimed by the business concern for purposes 

18 of bidding on a Federal contract or subcontract, 

19 or applying for a Federal grant, shall contain 

20 the signature of an authorized official on the 

21 same page on which the certification is con22 tained. 

23 ‘‘(4) REGULATIONS.—The Administrator shall 

24 promulgate regulations to provide adequate protec25 tions to individuals and business concerns from li-
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1 ability under this subsection in cases of unintentional 

2 errors, technical malfunctions, and other similar situ3 ations.’’. 

4 SEC. 1342. ANNUAL CERTIFICATION. 

5 Section 3 of the Small Business Act (15 U.S.C. 632), 

6 as amended by section 1341, is amended by adding at the 

7 end the following: 

8 ‘‘(x) ANNUAL CERTIFICATION.— 

9 ‘‘(1) IN GENERAL.—Each business certified as a 

10 small business concern under this Act shall annually 

11 certify its small business size and, if appropriate, its 

12 small business status, by means of a confirming entry 

13 on the Online Representations and Certifications Ap14 plication database of the Administration, or any suc15 cessor thereto. 

16 ‘‘(2) REGULATIONS.—Not later than 1 year after 

17 the date of enactment of this subsection, the Adminis18 trator, in consultation with the Inspector General and 

19 the Chief Counsel for Advocacy of the Administration, 

20 shall promulgate regulations to ensure that— 

21 ‘‘(A) no business concern continues to be 

22 certified as a small business concern on the On23 line Representations and Certifications Applica24 tion database of the Administration, or any suc25 cessor thereto, without fulfilling the requirements 
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1 for annual certification under this subsection; 

2 and 

3 ‘‘(B) the requirements of this subsection are 

4 implemented in a manner presenting the least 

5 possible regulatory burden on small business con6 cerns.’’. 

7 SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCE8 MENT PERSONNEL. 

9 (a) IN GENERAL.—Not later than 1 year after the date 

10 of enactment of this Act, the Federal Acquisition Institute, 

11 in consultation with the Administrator for Federal Procure12 ment Policy, the Defense Acquisition University, and the 

13 Administrator, shall develop courses for acquisition per14 sonnel concerning proper classification of business concerns 

15 and small business size and status for purposes of Federal 

16 contracts, subcontracts, grants, cooperative agreements, and 

17 cooperative research and development agreements. 

18 (b) POLICY ON PROSECUTIONS OF SMALL BUSINESS

19 SIZE AND STATUS FRAUD.—Section 3 of the Small Busi20 ness Act (15 U.S.C. 632), as amended by section 1342, is 

21 amended by adding at the end the following: 

22 ‘‘(y) POLICY ON PROSECUTIONS OF SMALL BUSINESS

23 SIZE AND STATUS FRAUD.—Not later than 1 year after the 

24 date of enactment of this subsection, the Administrator, in 

25 consultation with the Attorney General, shall issue a Gov-
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1 ernment-wide policy on prosecution of small business size 

2 and status fraud, which shall direct Federal agencies to ap3 propriately publicize the policy.’’. 

4 SEC. 1344. UPDATED SIZE STANDARDS. 

5 (a) ROLLING REVIEW.— 

6 (1) IN GENERAL.—The Administrator shall— 

7 (A) during the 18-month period beginning 

8 on the date of enactment of this Act, and during 

9 every 18-month period thereafter, conduct a detailed review of not less than 1 10 ⁄3 of the size stand11 ards for small business concerns established 

12 under section 3(a)(2) of the Small Business Act 

13 (15 U.S.C. 632(a)(2)), which shall include hold14 ing not less than 2 public forums located in dif15 ferent geographic regions of the United States; 

16 (B) after completing each review under sub17 paragraph (A) make appropriate adjustments to 

18 the size standards established under section 

19 3(a)(2) of the Small Business Act to reflect mar20 ket conditions; 

21 (C) make publicly available— 

22 (i) information regarding the factors 

23 evaluated as part of each review conducted 

24 under subparagraph (A); and 
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1 (ii) information regarding the criteria 

2 used for any revised size standards promul3 gated under subparagraph (B); and 

4 (D) not later than 30 days after the date on 

5 which the Administrator completes each review 

6 under subparagraph (A), submit to the Com7 mittee on Small Business and Entrepreneurship 

8 of the Senate and the Committee on Small Busi9 ness of the House of Representatives and make 

10 publicly available a report regarding the review, 

11 including why the Administrator— 

12 (i) used the factors and criteria de13 scribed in subparagraph (C); and 

14 (ii) adjusted or did not adjust each size 

15 standard that was reviewed under the re16 view. 

17 (2) COMPLETE REVIEW OF SIZE STANDARDS.— 

18 The Administrator shall ensure that each size stand19 ard for small business concerns established under sec20 tion 3(a)(2) of the Small Business Act (15 U.S.C. 

21 632(a)(2)) is reviewed under paragraph (1) not less 

22 frequently than once every 5 years. 

23 (b) RULES.—Not later than 1 year after the date of 

24 enactment of this Act, the Administrator shall promulgate 
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1 rules for conducting the reviews required under subsection 

2 (a). 

3 SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE 

4 PROGRAM. 

5 (a) IN GENERAL.—The Comptroller General of the 

6 United States shall conduct a study of the mentor-protege 

7 program of the Administration for small business concerns 

8 participating in programs under section 8(a) of the Small 

9 Business Act (15 U.S.C. 637(a)), and other relationships 

10 and strategic alliances pairing a larger business and a 

11 small business concern partner to gain access to Federal 

12 Government contracts, to determine whether the programs 

13 and relationships are effectively supporting the goal of in14 creasing the participation of small business concerns in 

15 Government contracting. 

16 (b) MATTERS TO BE STUDIED.—The study conducted 

17 under this section shall include— 

18 (1) a review of a broad cross-section of indus19 tries; and 

20 (2) an evaluation of— 

21 (A) how each Federal agency carrying out 

22 a program described in subsection (a) admin23 isters and monitors the program; 

24 (B) whether there are systems in place to 

25 ensure that the mentor-protege relationship, or 
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1 similar affiliation, promotes real gain to the 

2 protege, and is not just a mechanism to enable 

3 participants that would not otherwise qualify 

4 under section 8(a) of the Small Business Act (15 

5 U.S.C. 637(a)) to receive contracts under that 

6 section; and 

7 (C) the degree to which protege businesses 

8 become able to compete for Federal contracts 

9 without the assistance of a mentor. 

10 (c) REPORT TO CONGRESS.—Not later than 180 days 

11 after the date of enactment of this Act, the Comptroller Gen12 eral shall submit to the Committee on Small Business and 

13 Entrepreneurship of the Senate and the Committee on 

14 Small Business of the House of Representatives a report on 

15 the results of the study conducted under this section. 

16 SEC. 1346. CONTRACTING GOALS REPORTS. 

17 Section 15(h)(2) of the Small Business Act (15 U.S.C. 

18 644(h)(2)) is amended by striking ‘‘submit them’’ and all 

19 that follows through ‘‘the following:’’ and inserting ‘‘submit 

20 to the President and the Committee on Small Business and 

21 Entrepreneurship of the Senate and the Committee on 

22 Small Business of the House of Representatives the compila23 tion and analysis, which shall include the following:’’. 

24 SEC. 1347. SMALL BUSINESS CONTRACTING PARITY. 

25 (a) DEFINITIONS.—In this section— 
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1 (1) the terms ‘‘Administration’’ and ‘‘Adminis2 trator’’ mean the Small Business Administration and 

3 the Administrator thereof, respectively; and 

4 (2) the terms ‘‘HUBZone small business con5 cern’’, ‘‘small business concern’’, ‘‘small business con6 cern owned and controlled by service-disabled vet7 erans’’, and ‘‘small business concern owned and con8 trolled by women’’ have the same meanings as in sec9 tion 3 of the Small Business Act (15 U.S.C. 632). 

10 (b) CONTRACTING IMPROVEMENTS.— 

11 (1) CONTRACTING OPPORTUNITIES.—Section 

12 31(b)(2)(B) of the Small Business Act (15 U.S.C. 

13 657a(b)(2)(B)) is amended by striking ‘‘shall’’ and 

14 inserting ‘‘may’’. 

15 (2) CONTRACTING GOALS.—Section 15(g)(1) of 

16 the Small Business Act (15 U.S.C. 644(g)(1)) is 

17 amended in the fourth sentence by inserting ‘‘and 

18 subcontract’’ after ‘‘not less than 3 percent of the total 

19 value of all prime contract’’. 

20 (3) MENTOR-PROTEGE PROGRAMS.—The Admin21 istrator may establish mentor-protege programs for 

22 small business concerns owned and controlled by serv23 ice-disabled veterans, small business concerns owned 

24 and controlled by women, and HUBZone small busi25 ness concerns modeled on the mentor-protege program 
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1 of the Administration for small business concerns 

2 participating in programs under section 8(a) of the 

3 Small Business Act (15 U.S.C. 637(a)). 

4 (c) SMALL BUSINESS CONTRACTING PROGRAMS PAR5 ITY.—Section 31(b)(2) of the Small Business Act (15 U.S.C. 

6 657a(b)(2)) is amended— 

7 (1) in the matter preceding subparagraph (A), 

8 by striking ‘‘Notwithstanding any other provision of 

9 law—’’; 

10 (2) in subparagraph (A)— 

11 (A) in the matter preceding clause (i), by 

12 striking ‘‘a contracting’’ and inserting ‘‘SOLE

13 SOURCE CONTRACTS.—A contracting’’; and 

14 (B) in clause (iii), by striking the semicolon 

15 at the end and inserting a period; 

16 (3) in subparagraph (B)— 

17 (A) by striking ‘‘a contract opportunity 

18 shall’’ and inserting ‘‘RESTRICTED COMPETI19 TION.—A contract opportunity may’’; and 

20 (B) by striking ‘‘; and’’ and inserting a pe21 riod; and 

22 (4) in subparagraph (C), by striking ‘‘not later’’ 

23 and inserting ‘‘APPEALS.—Not later’’. 
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1 Subtitle D—Small Business Man2 agement and Counseling Assist3 ance 

4 SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSI5 NESS PROGRAMS. 

6 (a) MICROLOAN PROGRAM.—Section 7(m) of the Small 

7 Business Act (15 U.S.C. 636(m)) is amended— 

8 (1) in paragraph (3)(B)— 

9 (A) by striking ‘‘As a condition’’ and in10 serting the following: 

11 ‘‘(i) IN GENERAL.—Subject to clause 

12 (ii), as a condition’’; 

13 (B) by striking ‘‘the Administration’’ and 

14 inserting ‘‘the Administrator’’; and 

15 (C) by adding at the end the following: 

16 ‘‘(ii) WAIVER OF NON-FEDERAL

17 SHARE.— 

18 ‘‘(I) IN GENERAL.—Upon request 

19 by an intermediary, and in accordance 

20 with this clause, the Administrator 

21 may waive, in whole or in part, the re22 quirement to obtain non-Federal funds 

23 under clause (i) for a fiscal year. The 

24 Administrator may waive the require25 ment to obtain non-Federal funds 
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1 under this clause for successive fiscal 

2 years. 

3 ‘‘(II) CONSIDERATIONS.—In de4 termining whether to waive the re5 quirement to obtain non-Federal funds 

6 under this clause, the Administrator 

7 shall consider— 

8 ‘‘(aa) the economic condi9 tions affecting the intermediary; 

10 ‘‘(bb) the impact a waiver 

11 under this clause would have on 

12 the credibility of the microloan 

13 program under this subsection; 

14 ‘‘(cc) the demonstrated abil15 ity of the intermediary to raise 

16 non-Federal funds; and 

17 ‘‘(dd) the performance of the 

18 intermediary. 

19 ‘‘(III) LIMITATIONS.— 

20 ‘‘(aa) IN GENERAL.—The Ad21 ministrator may not waive the re22 quirement to obtain non-Federal 

23 funds under this clause if grant24 ing the waiver would undermine 
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1 the credibility of the microloan 

2 program under this subsection. 

3 ‘‘(bb) SUNSET.—The Admin4 istrator may not waive the re5 quirement to obtain non-Federal 

6 funds under this clause for fiscal 

7 year 2013 or any fiscal year 

8 thereafter.’’; and 

9 (2) in paragraph (4)(B)— 

10 (A) by striking ‘‘As a condition’’ and all 

11 that follows through ‘‘the Administration shall 

12 require’’ and inserting the following: 

13 ‘‘(i) IN GENERAL.—Subject to clause 

14 (ii), as a condition of a grant made under 

15 subparagraph (A), the Administrator shall 

16 require’’; and 

17 (B) by adding at the end the following: 

18 ‘‘(ii) WAIVER OF NON-FEDERAL

19 SHARE.— 

20 ‘‘(I) IN GENERAL.—Upon request 

21 by an intermediary, and in accordance 

22 with this clause, the Administrator 

23 may waive, in whole or in part, the re24 quirement to obtain non-Federal funds 

25 under clause (i) for a fiscal year. The 
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1 Administrator may waive the require2 ment to obtain non-Federal funds 

3 under this clause for successive fiscal 

4 years. 

5 ‘‘(II) CONSIDERATIONS.—In de6 termining whether to waive the re7 quirement to obtain non-Federal funds 

8 under this clause, the Administrator 

9 shall consider— 

10 ‘‘(aa) the economic condi11 tions affecting the intermediary; 

12 ‘‘(bb) the impact a waiver 

13 under this clause would have on 

14 the credibility of the microloan 

15 program under this subsection; 

16 ‘‘(cc) the demonstrated abil17 ity of the intermediary to raise 

18 non-Federal funds; and 

19 ‘‘(dd) the performance of the 

20 intermediary. 

21 ‘‘(III) LIMITATIONS.— 

22 ‘‘(aa) IN GENERAL.—The Ad23 ministrator may not waive the re24 quirement to obtain non-Federal 

25 funds under this clause if grant-
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1 ing the waiver would undermine 

2 the credibility of the microloan 

3 program under this subsection. 

4 ‘‘(bb) SUNSET.—The Admin5 istrator may not waive the re6 quirement to obtain non-Federal 

7 funds under this clause for fiscal 

8 year 2013 or any fiscal year 

9 thereafter.’’. 

10 (b) WOMEN’S BUSINESS CENTER PROGRAM.—Section 

11 29(c) of the Small Business Act (15 U.S.C. 656(c)) is 

12 amended— 

13 (1) in paragraph (1), by striking ‘‘As a condi14 tion’’ and inserting ‘‘Subject to paragraph (5), as a 

15 condition’’; and 

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

17 ‘‘(5) WAIVER OF NON-FEDERAL SHARE RELATING

18 TO TECHNICAL ASSISTANCE AND COUNSELING.— 

19 ‘‘(A) IN GENERAL.—Upon request by a re20 cipient organization, and in accordance with 

21 this paragraph, the Administrator may waive, 

22 in whole or in part, the requirement to obtain 

23 non-Federal funds under this subsection for the 

24 technical assistance and counseling activities of 

25 the recipient organization carried out using fi-
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1 nancial assistance under this section for a fiscal 

2 year. The Administrator may waive the require3 ment to obtain non-Federal funds under this 

4 paragraph for successive fiscal years. 

5 ‘‘(B) CONSIDERATIONS.—In determining 

6 whether to waive the requirement to obtain non7 Federal funds under this paragraph, the Admin8 istrator shall consider— 

9 ‘‘(i) the economic conditions affecting 

10 the recipient organization; 

11 ‘‘(ii) the impact a waiver under this 

12 clause would have on the credibility of the 

13 women’s business center program under this 

14 section; 

15 ‘‘(iii) the demonstrated ability of the 

16 recipient organization to raise non-Federal 

17 funds; and 

18 ‘‘(iv) the performance of the recipient 

19 organization. 

20 ‘‘(C) LIMITATIONS.— 

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

22 may not waive the requirement to obtain 

23 non-Federal funds under this paragraph if 

24 granting the waiver would undermine the 
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1 credibility of the women’s business center 

2 program under this section. 

3 ‘‘(ii) SUNSET.—The Administrator 

4 may not waive the requirement to obtain 

5 non-Federal funds under this paragraph for 

6 fiscal year 2013 or any fiscal year there7 after.’’. 

8 (c) PROSPECTIVE REPEALS.—Effective October 1, 

9 2012, the Small Business Act (15 U.S.C. 631 et seq.) is 

10 amended— 

11 (1) in section 7(m) (15 U.S.C. 636(m))— 

12 (A) in paragraph (3)(B)— 

13 (i) by striking ‘‘INTERMEDIARY CON14 TRIBUTION.—’’ and all that follows through 

15 ‘‘Subject to clause (ii), as’’ and inserting 

16 ‘‘INTERMEDIARY CONTRIBUTION.—As’’; and 

17 (ii) by striking clause (ii); and 

18 (B) in paragraph (4)(B)— 

19 (i) by striking ‘‘CONTRIBUTION.—’’ 

20 and all that follows through ‘‘Subject to 

21 clause (ii), as’’ and inserting ‘‘CONTRIBU22 TION.—As’’; and 

23 (ii) by striking clause (ii); and 

24 (2) in section 29(c) (15 U.S.C. 656(c))— 
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1 (A) in paragraph (1), by striking ‘‘Subject 

2 to paragraph (5), as’’ and inserting ‘‘As’’; and 

3 (B) by striking paragraph (5). 

4 SEC. 1402. GRANTS FOR SBDCS. 

5 (a) IN GENERAL.—The Administrator may make 

6 grants to small business development centers under section 

7 21 of the Small Business Act (15 U.S.C. 648) to provide 

8 targeted technical assistance to small business concerns 

9 seeking access to capital or credit, Federal procurement op10 portunities, energy efficiency audits to reduce energy bills, 

11 opportunities to export products or provide services to for12 eign customers, adopting, making innovations in, and 

13 using broadband technologies, or other assistance. 

14 (b) ALLOCATION.— 

15 (1) IN GENERAL.—Subject to paragraph (2), and 

16 notwithstanding the requirements of section 

17 21(a)(4)(C)(iii) of the Small Business Act (15 U.S.C. 

18 648(a)(4)(C)(iii)), the amount appropriated to carry 

19 out this section shall be allocated under the formula 

20 under section 21(a)(4)(C)(i) of that Act. 

21 (2) MINIMUM FUNDING.—The amount made 

22 available under this section to each State shall be not 

23 less than $325,000. 
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1 (3) TYPES OF USES.—Of the total amount of the 

2 grants awarded by the Administrator under this sec3 tion— 

4 (A) not less than 80 percent shall be used 

5 for counseling of small business concerns; and 

6 (B) not more than 20 percent may be used 

7 for classes or seminars. 

8 (c) NO NON-FEDERAL SHARE REQUIRED.—Notwith9 standing section 21(a)(4)(A) of the Small Business Act (15 

10 U.S.C. 648(a)(4)(A)), the recipient of a grant made under 

11 this section shall not be required to provide non-Federal 

12 matching funds. 

13 (d) DISTRIBUTION.—Not later than 30 days after the 

14 date on which amounts are appropriated to carry out this 

15 section, the Administrator shall disburse the total amount 

16 appropriated. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated to the Administrator 

19 $50,000,000 to carry out this section. 
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1 Subtitle E—Disaster Loan 

2 Improvement 

3 SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSIST4 ANCE. 

5 Section 3 of the Small Business Act (15 U.S.C. 632), 

6 as amended by section 1343, is amended by adding at the 

7 end the following: 

8 ‘‘(z) AQUACULTURE BUSINESS DISASTER ASSIST9 ANCE.—Subject to section 18(a) and notwithstanding sec10 tion 18(b)(1), the Administrator may provide disaster as11 sistance under section 7(b)(2) to aquaculture enterprises 

12 that are small businesses.’’. 

13 Subtitle F—Small Business 

14 Regulatory Relief 

15 SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DE16 TAILED ANALYSES. 

17 Section 604(a) of title 5, United States Code, is 

18 amended— 

19 (1) in paragraph (1), by striking ‘‘succinct’’; 

20 (2) in paragraph (2), by striking ‘‘summary’’ 

21 each place it appears and inserting ‘‘statement’’; 

22 (3) by redesignating paragraphs (3), (4), and (5) 

23 as paragraphs (4), (5), and (6), respectively; and 

24 (4) by inserting after paragraph (2) the fol25 lowing: 
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1 ‘‘(3) the response of the agency to any comments 

2 filed by the Chief Counsel for Advocacy of the Small 

3 Business Administration in response to the proposed 

4 rule, and a detailed statement of any change made to 

5 the proposed rule in the final rule as a result of the 

6 comments;’’. 

7 SEC. 1602. OFFICE OF ADVOCACY. 

8 (a) IN GENERAL.—Section 203 of Public Law 94–305 

9 (15 U.S.C. 634c) is amended— 

10 (1) in paragraph (4), by striking ‘‘and’’ at the 

11 end; 

12 (2) in paragraph (5), by striking the period and 

13 inserting ‘‘; and’’; and 

14 (3) by adding at the end the following: 

15 ‘‘(6) carry out the responsibilities of the Office of 

16 Advocacy under chapter 6 of title 5, United States 

17 Code.’’. 

18 (b) BUDGETARY LINE ITEM AND AUTHORIZATION OF

19 APPROPRIATIONS.—Title II of Public Law 94–305 (15 

20 U.S.C. 634a et seq.) is amended by striking section 207 and 

21 inserting the following: 

22 ‘‘SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF 

23 APPROPRIATIONS. 

24 ‘‘(a) APPROPRIATION REQUESTS.—Each budget of the 

25 United States Government submitted by the President 
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1 under section 1105 of title 31, United States Code, shall 

2 include a separate statement of the amount of appropria3 tions requested for the Office of Advocacy of the Small Busi4 ness Administration, which shall be designated in a sepa5 rate account in the General Fund of the Treasury. 

6 ‘‘(b) ADMINISTRATIVE OPERATIONS.—The Adminis7 trator of the Small Business Administration shall provide 

8 the Office of Advocacy with appropriate and adequate office 

9 space at central and field office locations, together with such 

10 equipment, operating budget, and communications facilities 

11 and services as may be necessary, and shall provide nec12 essary maintenance services for such offices and the equip13 ment and facilities located in such offices. 

14 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are 

15 authorized to be appropriated such sums as are necessary 

16 to carry out this title. Any amount appropriated under this 

17 subsection shall remain available, without fiscal year limi18 tation, until expended.’’. 

19 Subtitle G—Appropriations 

20 Provisions 

21 SEC. 1701. SALARIES AND EXPENSES. 

22 (a) APPROPRIATION.—There is appropriated, out of 

23 any money in the Treasury not otherwise appropriated, for 

24 the fiscal year ending September 30, 2010, $150,000,000, 

25 to remain available until September 30, 2012, for an addi-
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1 tional amount for the appropriations account appropriated 

2 under the heading ‘‘SALARIES AND EXPENSES’’ under the 

3 heading ‘‘SMALL BUSINESS ADMINISTRATION’’, of which— 

4 (1) $50,000,000 is for grants to small business 

5 development centers authorized under section 1402; 

6 (2) $1,000,000 is for the costs of administering 

7 grants authorized under section 1402; 

8 (3) $30,000,000 is for grants to States for fiscal 

9 year 2011 to carry out export programs that assist 

10 small business concerns authorized under section 

11 1207; 

12 (4) $30,000,000 is for grants to States for fiscal 

13 year 2012 to carry out export programs that assist 

14 small business concerns authorized under section 

15 1207; 

16 (5) $2,500,000 is for the costs of administering 

17 grants authorized under section 1207; 

18 (6) $5,000,000 is for grants for fiscal year 2011 

19 under the Small Business Teaming Pilot Program 

20 under section 1314; and 

21 (7) $5,000,000 is for grants for fiscal year 2012 

22 under the Small Business Teaming Pilot Program 

23 under section 1314. 

24 (b) REPORT.—Not later than 60 days after the date 

25 of enactment of this Act, the Administrator shall submit 
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1 to the Committee on Appropriations of the Senate and the 

2 Committee on Appropriations of the House of Representa3 tives a detailed expenditure plan for using the funds pro4 vided under subsection (a). 

5 SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT. 

6 (a) IN GENERAL.—There is appropriated, out of any 

7 money in the Treasury not otherwise appropriated, for the 

8 fiscal year ending September 30, 2010, for an additional 

9 amount for the appropriations account appropriated under 

10 the heading ‘‘BUSINESS LOANS PROGRAM ACCOUNT’’ under 

11 the heading ‘‘SMALL BUSINESS ADMINISTRATION’’— 

12 (1) $8,000,000, to remain available until Sep13 tember 30, 2012, for fiscal year 2011 for the cost of 

14 direct loans authorized under section 7(l) of the Small 

15 Business Act, as added by section 1131 of this title, 

16 including the cost of modifying the loans; 

17 (2) $8,000,000, to remain available until Sep18 tember 30, 2012, for fiscal year 2012 for the cost of 

19 direct loans authorized under section 7(l) of the Small 

20 Business Act, as added by section 1131 of this title, 

21 including the cost of modifying the loans; 

22 (3) $6,500,000, to remain available until Sep23 tember 30, 2012, for administrative expenses to carry 

24 out the direct loan program authorized under section 

25 7(l) of the Small Business Act, as added by section 
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1 1131 of this title, which may be transferred to and 

2 merged with the appropriations account appropriated 

3 under the heading ‘‘SALARIES AND EXPENSES’’ under 

4 the heading ‘‘SMALL BUSINESS ADMINISTRATION’’; 

5 and 

6 (4) $15,000,000, to remain available until Sep7 tember 30, 2011, for the cost of guaranteed loans as 

8 authorized under section 7(a) of the Small Business 

9 Act, including the cost of modifying the loans. 

10 (b) DEFINITION.—In this section, the term ‘‘cost’’ has 

11 the meaning given that term in section 502 of the Congres12 sional Budget Act of 1974. 

13 SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTI14 TUTIONS FUND PROGRAM ACCOUNT. 

15 There is appropriated, out of any money in the Treas16 ury not otherwise appropriated, for the fiscal year ending 

17 September 30, 2010, for an additional amount for the ap18 propriations account appropriated under the heading 

19 ‘‘COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

20 FUND PROGRAM ACCOUNT’’ under the heading ‘‘DEPART21 MENT OF THE TREASURY’’, $13,500,000, to remain 

22 available until September 30, 2012, for the costs of admin23 istering guarantees for bonds and notes as authorized under 

24 section 114A of the Riegle Community Development and 
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1 Regulatory Improvement Act of 1994, as added by section 

2 1134 of this Act. 

3 SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCE4 MENT EXTENSIONS. 

5 (a) EXTENSION OF PROGRAMS.— 

6 (1) IN GENERAL.—There is appropriated, out of 

7 any funds in the Treasury not otherwise appro8 priated, for an additional amount for ‘‘Small Busi9 ness Administration—Business Loans Program Ac10 count’’, $505,000,000, to remain available through 

11 December 31, 2010, for the cost of— 

12 (A) fee reductions and eliminations under 

13 section 501 of division A of the American Recov14 ery and Reinvestment Act of 2009 (Public Law 

15 111–5; 123 Stat. 151), as amended by this Act; 

16 and 

17 (B) loan guarantees under section 502 of di18 vision A of the American Recovery and Reinvest19 ment Act of 2009 (Public Law 111–5; 123 Stat. 

20 152), as amended by this Act. 

21 (2) COST.—For purposes of this subsection, the 

22 term ‘‘cost’’ has the same meaning as in section 502 

23 of the Congressional Budget Act of 1974 (2 U.S.C. 

24 661a). 
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1 (b) ADMINISTRATIVE EXPENSES.—There is appro2 priated for an additional amount, out of any funds in the 

3 Treasury not otherwise appropriated, for administrative ex4 penses to carry out sections 501 and 502 of division A of 

5 the American Recovery and Reinvestment Act of 2009 (Pub6 lic Law 111–5), $5,000,000, to remain available until ex7 pended, which may be transferred and merged with the ap8 propriation for ‘‘Small Business Administration—Salaries 

9 and Expenses’’. 

10 TITLE II—TAX PROVISIONS 

11 SEC. 2001. SHORT TITLE. 

12 This title may be cited as the ‘‘Creating Small Busi13 ness Jobs Act of 2010’’. 

14 Subtitle A—Small Business Relief 

15 PART I—PROVIDING ACCESS TO CAPITAL 

16 SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF 

17 GAIN ON CERTAIN SMALL BUSINESS STOCK. 

18 (a) IN GENERAL.—Subsection (a) of section 1202 of 

19 the Internal Revenue Code of 1986 is amended by adding 

20 at the end the following new paragraph: 

21 ‘‘(4) 100 PERCENT EXCLUSION FOR STOCK AC22 QUIRED DURING CERTAIN PERIODS IN 2010.—In the 

23 case of qualified small business stock acquired after 

24 the date of the enactment of the Creating Small Busi25 ness Jobs Act of 2010 and before January 1, 2011— 
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1 ‘‘(A) paragraph (1) shall be applied by sub2 stituting ‘100 percent’ for ‘50 percent’, 

3 ‘‘(B) paragraph (2) shall not apply, and 

4 ‘‘(C) paragraph (7) of section 57(a) shall 

5 not apply.’’. 

6 (b) CONFORMING AMENDMENT.—Paragraph (3) of sec7 tion 1202(a) of the Internal Revenue Code of 1986 is 

8 amended— 

9 (1) by inserting ‘‘CERTAIN PERIODS IN’’ before 

10 ‘‘2010’’ in the heading, and 

11 (2) by striking ‘‘before January 1, 2011’’ and in12 serting ‘‘on or before the date of the enactment of the 

13 Creating Small Business Jobs Act of 2010’’. 

14 (c) EFFECTIVE DATE.—The amendments made by this 

15 section shall apply to stock acquired after the date of the 

16 enactment of this Act. 

17 SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE 

18 SMALL BUSINESSES FOR 2010 CARRIED BACK 

19 5 YEARS. 

20 (a) IN GENERAL.—Section 39(a) of the Internal Rev21 enue Code of 1986 is amended by adding at the end the 

22 following new paragraph: 

23 ‘‘(4) 5-YEAR CARRYBACK FOR ELIGIBLE SMALL

24 BUSINESS CREDITS.— 
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1 ‘‘(A) IN GENERAL.—Notwithstanding sub2 section (d), in the case of eligible small business 

3 credits determined in the first taxable year of the 

4 taxpayer beginning in 2010— 

5 ‘‘(i) paragraph (1) shall be applied by 

6 substituting ‘each of the 5 taxable years’ for 

7 ‘the taxable year’ in subparagraph (A) 

8 thereof, and 

9 ‘‘(ii) paragraph (2) shall be applied— 

10 ‘‘(I) by substituting ‘25 taxable 

11 years’ for ‘21 taxable years’ in sub12 paragraph (A) thereof, and 

13 ‘‘(II) by substituting ‘24 taxable 

14 years’ for ‘20 taxable years’ in sub15 paragraph (B) thereof. 

16 ‘‘(B) ELIGIBLE SMALL BUSINESS CRED17 ITS.—For purposes of this subsection, the term 

18 ‘eligible small business credits’ has the meaning 

19 given such term by section 38(c)(5)(B).’’. 

20 (b) CONFORMING AMENDMENT.—Section 39(a)(3)(A) 

21 of the Internal Revenue Code of 1986 is amended by insert22 ing ‘‘or the eligible small business credits’’ after ‘‘credit)’’. 

23 (c) EFFECTIVE DATE.—The amendments made by this 

24 section shall apply to credits determined in taxable years 

25 beginning after December 31, 2009. 
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1 SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE 

2 SMALL BUSINESSES IN 2010 NOT SUBJECT TO 

3 ALTERNATIVE MINIMUM TAX. 

4 (a) IN GENERAL.—Section 38(c) of the Internal Rev5 enue Code of 1986 is amended by redesignating paragraph 

6 (5) as paragraph (6) and by inserting after paragraph (4) 

7 the following new paragraph: 

8 ‘‘(5) SPECIAL RULES FOR ELIGIBLE SMALL BUSI9 NESS CREDITS IN 2010.— 

10 ‘‘(A) IN GENERAL.—In the case of eligible 

11 small business credits determined in taxable 

12 years beginning in 2010— 

13 ‘‘(i) this section and section 39 shall be 

14 applied separately with respect to such 

15 credits, and 

16 ‘‘(ii) in applying paragraph (1) to 

17 such credits— 

18 ‘‘(I) the tentative minimum tax 

19 shall be treated as being zero, and 

20 ‘‘(II) the limitation under para21 graph (1) (as modified by subclause 

22 (I)) shall be reduced by the credit al23 lowed under subsection (a) for the tax24 able year (other than the eligible small 

25 business credits). 
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1 ‘‘(B) ELIGIBLE SMALL BUSINESS CRED2 ITS.—For purposes of this subsection, the term 

3 ‘eligible small business credits’ means the sum of 

4 the credits listed in subsection (b) which are de5 termined for the taxable year with respect to an 

6 eligible small business. Such credits shall not be 

7 taken into account under paragraph (2), (3), or 

8 (4). 

9 ‘‘(C) ELIGIBLE SMALL BUSINESS.—For pur10 poses of this subsection, the term ‘eligible small 

11 business’ means, with respect to any taxable 

12 year— 

13 ‘‘(i) a corporation the stock of which is 

14 not publicly traded, 

15 ‘‘(ii) a partnership, or 

16 ‘‘(iii) a sole proprietorship, 

17 if the average annual gross receipts of such cor18 poration, partnership, or sole proprietorship for 

19 the 3-taxable-year period preceding such taxable 

20 year does not exceed $50,000,000. For purposes 

21 of applying the test under the preceding sentence, 

22 rules similar to the rules of paragraphs (2) and 

23 (3) of section 448(c) shall apply. 

24 ‘‘(D) TREATMENT OF PARTNERS AND S COR25 PORATION SHAREHOLDERS.—Credits determined 
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1 with respect to a partnership or S corporation 

2 shall not be treated as eligible small business 

3 credits by any partner or shareholder unless such 

4 partner or shareholder meets the gross receipts 

5 test under subparagraph (C) for the taxable year 

6 in which such credits are treated as current year 

7 business credits.’’. 

8 (b) TECHNICAL AMENDMENT.—Section 55(e)(5) of the 

9 Internal Revenue Code of 1986 is amended by striking 

10 ‘‘38(c)(3)(B)’’ and inserting ‘‘38(c)(6)(B)’’. 

11 (c) CONFORMING AMENDMENTS.— 

12 (1) Subclause (II) of section 38(c)(2)(A)(ii) of 

13 the Internal Revenue Code of 1986 is amended by in14 serting ‘‘the eligible small business credits,’’ after ‘‘the 

15 New York Liberty Zone business employee credit,’’. 

16 (2) Subclause (II) of section 38(c)(3)(A)(ii) of 

17 such Code is amended by inserting ‘‘, the eligible 

18 small business credits,’’ after ‘‘the New York Liberty 

19 Zone business employee credit’’. 

20 (3) Subclause (II) of section 38(c)(4)(A)(ii) of 

21 such Code is amended by inserting ‘‘the eligible small 

22 business credits and’’ before ‘‘the specified credits’’. 

23 (d) EFFECTIVE DATE.—The amendments made by 

24 subsection (a) shall apply to credits determined in taxable 
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1 years beginning after December 31, 2009, and to carrybacks 

2 of such credits. 

3 SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PE4 RIOD FOR BUILT-IN GAINS TAX. 

5 (a) IN GENERAL.—Subparagraph (B) of section 

6 1374(d)(7) of the Internal Revenue Code of 1986 is amended 

7 to read as follows: 

8 ‘‘(B) SPECIAL RULES FOR 2009, 2010, AND

9 2011.—No tax shall be imposed on the net recog10 nized built-in gain of an S corporation— 

11 ‘‘(i) in the case of any taxable year be12 ginning in 2009 or 2010, if the 7th taxable 

13 year in the recognition period preceded such 

14 taxable year, or 

15 ‘‘(ii) in the case of any taxable year 

16 beginning in 2011, if the 5th year in the 

17 recognition period preceded such taxable 

18 year. 

19 The preceding sentence shall be applied sepa20 rately with respect to any asset to which para21 graph (8) applies.’’. 

22 (b) EFFECTIVE DATE.—The amendment made by this 

23 section shall apply to taxable years beginning after Decem24 ber 31, 2010. 
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1 PART II—ENCOURAGING INVESTMENT 

2 SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 

3 AND 2011; CERTAIN REAL PROPERTY TREAT4 ED AS SECTION 179 PROPERTY. 

5 (a) INCREASED LIMITATIONS.—Subsection (b) of sec6 tion 179 of the Internal Revenue Code of 1986 is amended— 

7 (1) by striking ‘‘shall not exceed’’ and all that 

8 follows in paragraph (1) and inserting ‘‘shall not ex9 ceed— 

10 ‘‘(A) $250,000 in the case of taxable years 

11 beginning after 2007 and before 2010, 

12 ‘‘(B) $500,000 in the case of taxable years 

13 beginning in 2010 or 2011, and 

14 ‘‘(C) $25,000 in the case of taxable years be15 ginning after 2011.’’, and 

16 (2) by striking ‘‘exceeds’’ and all that follows in 

17 paragraph (2) and inserting ‘‘exceeds— 

18 ‘‘(A) $800,000 in the case of taxable years 

19 beginning after 2007 and before 2010, 

20 ‘‘(B) $2,000,000 in the case of taxable years 

21 beginning in 2010 or 2011, and 

22 ‘‘(C) $200,000 in the case of taxable years 

23 beginning after 2011.’’. 

24 (b) INCLUSION OF CERTAIN REAL PROPERTY.—Sec25 tion 179 of the Internal Revenue Code of 1986 is amended 

26 by adding at the end the following new subsection: 
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1 ‘‘(f) SPECIAL RULES FOR QUALIFIED REAL PROP2 ERTY.— 

3 ‘‘(1) IN GENERAL.—If a taxpayer elects the ap4 plication of this subsection for any taxable year be5 ginning in 2010 or 2011, the term ‘section 179 prop6 erty’ shall include any qualified real property which 

7 is— 

8 ‘‘(A) of a character subject to an allowance 

9 for depreciation, 

10 ‘‘(B) acquired by purchase for use in the ac11 tive conduct of a trade or business, and 

12 ‘‘(C) not described in the last sentence of 

13 subsection (d)(1). 

14 ‘‘(2) QUALIFIED REAL PROPERTY.—For purposes 

15 of this subsection, the term ‘qualified real property’ 

16 means— 

17 ‘‘(A) qualified leasehold improvement prop18 erty described in section 168(e)(6), 

19 ‘‘(B) qualified restaurant property described 

20 in section 168(e)(7) (without regard to the dates 

21 specified in subparagraph (A)(i) thereof), and 

22 ‘‘(C) qualified retail improvement property 

23 described in section 168(e)(8) (without regard to 

24 subparagraph (E) thereof). 
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1 ‘‘(3) LIMITATION.—For purposes of applying the 

2 limitation under subsection (b)(1)(B), not more than 

3 $250,000 of the aggregate cost which is taken into ac4 count under subsection (a) for any taxable year may 

5 be attributable to qualified real property. 

6 ‘‘(4) CARRYOVER LIMITATION.— 

7 ‘‘(A) IN GENERAL.—Notwithstanding sub8 section (b)(3)(B), no amount attributable to 

9 qualified real property may be carried over to a 

10 taxable year beginning after 2011. 

11 ‘‘(B) TREATMENT OF DISALLOWED

12 AMOUNTS.—Except as provided in subparagraph 

13 (C), to the extent that any amount is not allowed 

14 to be carried over to a taxable year beginning 

15 after 2011 by reason of subparagraph (A), this 

16 title shall be applied as if no election under this 

17 section had been made with respect to such 

18 amount. 

19 ‘‘(C) AMOUNTS CARRIED OVER FROM 2010.— 

20 If subparagraph (B) applies to any amount (or 

21 portion of an amount) which is carried over 

22 from a taxable year other than the taxpayer’s 

23 last taxable year beginning in 2011, such 

24 amount (or portion of an amount) shall be treat25 ed for purposes of this title as attributable to 
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1 property placed in service on the first day of the 

2 taxpayer’s last taxable year beginning in 2011. 

3 ‘‘(D) ALLOCATION OF AMOUNTS.—For pur4 poses of applying this paragraph and subsection 

5 (b)(3)(B) to any taxable year, the amount which 

6 is disallowed under subsection (b)(3)(A) for such 

7 taxable year which is attributed to qualified real 

8 property shall be the amount which bears the 

9 same ratio to the total amount so disallowed 

10 as— 

11 ‘‘(i) the aggregate amount attributable 

12 to qualified real property placed in service 

13 during such taxable year, increased by the 

14 portion of any amount carried over to such 

15 taxable year from a prior taxable year 

16 which is attributable to such property, bears 

17 to 

18 ‘‘(ii) the total amount of section 179 

19 property placed in service during such tax20 able year, increased by the aggregate 

21 amount carried over to such taxable year 

22 from any prior taxable year. 

23 For purposes of the preceding sentence, only sec24 tion 179 property with respect to which an elec25 tion was made under subsection (c)(1) (deter-
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1 mined without regard to subparagraph (B) of 

2 this paragraph) shall be taken into account.’’. 

3 (c) REVOCABILITY OF ELECTION.—Paragraph (2) of 

4 section 179(c) of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘2011’’ and inserting ‘‘2012’’. 

6 (d) COMPUTER SOFTWARE TREATED AS 179 PROP7 ERTY.—Clause (ii) of section 179(d)(1)(A) is amended by 

8 striking ‘‘2011’’ and inserting ‘‘2012’’. 

9 (e) EFFECTIVE DATES.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), the amendments made by this section shall 

12 apply to property placed in service after December 

13 31, 2009, in taxable years beginning after such date. 

14 (2) EXTENSIONS.—The amendments made by 

15 subsections (c) and (d) shall apply to taxable years 

16 beginning after December 31, 2010. 

17 SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 

18 PERCENT OF THE BASIS OF CERTAIN QUALI19 FIED PROPERTY. 

20 (a) IN GENERAL.—Paragraph (2) of section 168(k) of 

21 the Internal Revenue Code of 1986 is amended— 

22 (1) by striking ‘‘January 1, 2011’’ in subpara23 graph (A)(iv) and inserting ‘‘January 1, 2012’’, and 

24 (2) by striking ‘‘January 1, 2010’’ each place it 

25 appears and inserting ‘‘January 1, 2011’’. 
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1 (b) CONFORMING AMENDMENTS.— 

2 (1) The heading for subsection (k) of section 168 

3 of the Internal Revenue Code of 1986 is amended by 

4 striking ‘‘JANUARY 1, 2010’’ and inserting ‘‘JANUARY

5 1, 2011’’. 

6 (2) The heading for clause (ii) of section 

7 168(k)(2)(B) of such Code is amended by striking 

8 ‘‘PRE-JANUARY 1, 2010’’ and inserting ‘‘PRE-JANUARY

9 1, 2011’’. 

10 (3) Subparagraph (D) of section 168(k)(4) of 

11 such Code is amended by striking ‘‘and’’ at the end 

12 of clause (ii), by striking the period at the end of 

13 clause (iii) and inserting a comma, and by adding at 

14 the end the following new clauses: 

15 ‘‘(iv) ‘January 1, 2011’ shall be sub16 stituted for ‘January 1, 2012’ in subpara17 graph (A)(iv) thereof, and 

18 ‘‘(v) ‘January 1, 2010’ shall be sub19 stituted for ‘January 1, 2011’ each place it 

20 appears in subparagraph (A) thereof.’’. 

21 (4) Subparagraph (B) of section 168(l)(5) of 

22 such Code is amended by striking ‘‘January 1, 2010’’ 

23 and inserting ‘‘January 1, 2011’’. 
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1 (5) Subparagraph (C) of section 168(n)(2) of 

2 such Code is amended by striking ‘‘January 1, 2010’’ 

3 and inserting ‘‘January 1, 2011’’. 

4 (6) Subparagraph (D) of section 1400L(b)(2) of 

5 such Code is amended by striking ‘‘January 1, 2010’’ 

6 and inserting ‘‘January 1, 2011’’. 

7 (7) Subparagraph (B) of section 1400N(d)(3) of 

8 such Code is amended by striking ‘‘January 1, 2010’’ 

9 and inserting ‘‘January 1, 2011’’. 

10 (c) EFFECTIVE DATE.—The amendments made by this 

11 section shall apply to property placed in service after De12 cember 31, 2009, in taxable years ending after such date. 

13 SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT AC14 COUNTING. 

15 (a) IN GENERAL.—Section 460(c) of the Internal Rev16 enue Code of 1986 is amended by adding at the end the 

17 following new paragraph: 

18 ‘‘(6) SPECIAL RULE FOR ALLOCATION OF BONUS

19 DEPRECIATION WITH RESPECT TO CERTAIN PROP20 ERTY.— 

21 ‘‘(A) IN GENERAL.—Solely for purposes of 

22 determining the percentage of completion under 

23 subsection (b)(1)(A), the cost of qualified prop24 erty shall be taken into account as a cost allo-
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1 cated to the contract as if subsection (k) of sec2 tion 168 had not been enacted. 

3 ‘‘(B) QUALIFIED PROPERTY.—For purposes 

4 of this paragraph, the term ‘qualified property’ 

5 means property described in section 168(k)(2) 

6 which— 

7 ‘‘(i) has a recovery period of 7 years or 

8 less, and 

9 ‘‘(ii) is placed in service after Decem10 ber 31, 2009, and before January 1, 2011 

11 (January 1, 2012, in the case of property 

12 described in section 168(k)(2)(B)).’’. 

13 (b) EFFECTIVE DATE.—The amendment made by this 

14 section shall apply to property placed in service after De15 cember 31, 2009. 

16 PART III—PROMOTING ENTREPRENEURSHIP 

17 SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 

18 FOR START-UP EXPENDITURES IN 2010. 

19 (a) START-UP EXPENDITURES.—Subsection (b) of sec20 tion 195 of the Internal Revenue Code of 1986 is amended 

21 by adding at the end the following new paragraph: 

22 ‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BEGIN23 NING IN 2010.—In the case of a taxable year beginning 

24 in 2010, paragraph (1)(A)(ii) shall be applied— 
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1 ‘‘(A) by substituting ‘$10,000’ for ‘$5,000’, 

2 and 

3 ‘‘(B) by substituting ‘$60,000’ for 

4 ‘$50,000’.’’. 

5 (b) EFFECTIVE DATE.—The amendment made by this 

6 section shall apply to amounts paid or incurred in taxable 

7 years beginning after December 31, 2009. 

8 SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE 

9 UNITED STATES TRADE REPRESENTATIVE TO 

10 DEVELOP MARKET ACCESS OPPORTUNITIES 

11 FOR UNITED STATES SMALL- AND MEDIUM12 SIZED BUSINESSES AND TO ENFORCE TRADE 

13 AGREEMENTS. 

14 (a) IN GENERAL.—There are authorized to be appro15 priated to the Office of the United States Trade Representa16 tive $5,230,000, to remain available until expended, for— 

17 (1) analyzing and developing opportunities for 

18 businesses in the United States to access the markets 

19 of foreign countries; and 

20 (2) enforcing trade agreements to which the 

21 United States is a party. 

22 (b) REQUIREMENTS.—In obligating and expending the 

23 funds authorized to be appropriated under subsection (a), 

24 the United States Trade Representative shall— 
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1 (1) give preference to those initiatives that the 

2 United States Trade Representative determines will 

3 create or sustain the greatest number of jobs in the 

4 United States or result in the greatest benefit to the 

5 economy of the United States; and 

6 (2) consider the needs of small- and medium7 sized businesses in the United States with respect to— 

8 (A) accessing the markets of foreign coun9 tries; and 

10 (B) the enforcement of trade agreements to 

11 which the United States is a party. 

12 PART IV—PROMOTING SMALL BUSINESS 

13 FAIRNESS 

14 SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DIS15 CLOSE REPORTABLE TRANSACTIONS BASED 

16 ON RESULTING TAX BENEFITS. 

17 (a) IN GENERAL.—Subsection (b) of section 6707A of 

18 the Internal Revenue Code of 1986 is amended to read as 

19 follows: 

20 ‘‘(b) AMOUNT OF PENALTY.— 

21 ‘‘(1) IN GENERAL.—Except as otherwise provided 

22 in this subsection, the amount of the penalty under 

23 subsection (a) with respect to any reportable trans24 action shall be 75 percent of the decrease in tax shown 

25 on the return as a result of such transaction (or 
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1 which would have resulted from such transaction if 

2 such transaction were respected for Federal tax pur3 poses). 

4 ‘‘(2) MAXIMUM PENALTY.—The amount of the 

5 penalty under subsection (a) with respect to any re6 portable transaction shall not exceed— 

7 ‘‘(A) in the case of a listed transaction, 

8 $200,000 ($100,000 in the case of a natural per9 son), or 

10 ‘‘(B) in the case of any other reportable 

11 transaction, $50,000 ($10,000 in the case of a 

12 natural person). 

13 ‘‘(3) MINIMUM PENALTY.—The amount of the 

14 penalty under subsection (a) with respect to any 

15 transaction shall not be less than $10,000 ($5,000 in 

16 the case of a natural person).’’. 

17 (b) EFFECTIVE DATE.—The amendment made by this 

18 section shall apply to penalties assessed after December 31, 

19 2006. 

20 SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN 

21 COMPUTING SELF-EMPLOYMENT TAXES IN 

22 2010. 

23 (a) IN GENERAL.—Paragraph (4) of section 162(l) of 

24 the Internal Revenue Code of 1986 is amended by inserting 
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1 ‘‘for taxable years beginning before January 1, 2010, or 

2 after December 31, 2010’’ before the period. 

3 (b) EFFECTIVE DATE.—The amendments made by this 

4 section shall apply to taxable years beginning after Decem5 ber 31, 2009. 

6 SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMI7 LAR TELECOMMUNICATIONS EQUIPMENT 

8 FROM LISTED PROPERTY. 

9 (a) IN GENERAL.—Subparagraph (A) of section 

10 280F(d)(4) of the Internal Revenue Code of 1986 (defining 

11 listed property) is amended by adding ‘‘ ‘and’ ’’ at the end 

12 of clause (iv), by striking clause (v), and by redesignating 

13 clause (vi) as clause (v). 

14 (b) EFFECTIVE DATE.—The amendment made by this 

15 section shall apply to taxable years beginning after Decem16 ber 31, 2009. 

17 Subtitle B—Revenue Provisions 

18 PART I—REDUCING THE TAX GAP 

19 SEC. 2101. INFORMATION REPORTING FOR RENTAL PROP20 ERTY EXPENSE PAYMENTS. 

21 (a) IN GENERAL.—Section 6041 of the Internal Rev22 enue Code of 1986, as amended by section 9006 of the Pa23 tient Protection and Affordable Care Act, is amended by 

24 redesignating subsections (h) and (i) as subsections (i) and 
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1 (j), respectively, and by inserting after subsection (g) the 

2 following new subsection: 

3 ‘‘(h) TREATMENT OF RENTAL PROPERTY EXPENSE

4 PAYMENTS.— 

5 ‘‘(1) IN GENERAL.—Solely for purposes of sub6 section (a) and except as provided in paragraph (2), 

7 a person receiving rental income from real estate shall 

8 be considered to be engaged in a trade or business of 

9 renting property. 

10 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 

11 apply to— 

12 ‘‘(A) any individual, including any indi13 vidual who is an active member of the uniformed 

14 services or an employee of the intelligence com15 munity (as defined in section 121(d)(9)(C)(iv)), 

16 if substantially all rental income is derived from 

17 renting the principal residence (within the 

18 meaning of section 121) of such individual on a 

19 temporary basis, 

20 ‘‘(B) any individual who receives rental in21 come of not more than the minimal amount, as 

22 determined under regulations prescribed by the 

23 Secretary, and 

24 ‘‘(C) any other individual for whom the re25 quirements of this section would cause hardship, 
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1 as determined under regulations prescribed by 

2 the Secretary.’’. 

3 (b) EFFECTIVE DATE.—The amendments made by sub4 section (a) shall apply to payments made after December 

5 31, 2010. 

6 SEC. 2102. INCREASE IN INFORMATION RETURN PEN7 ALTIES. 

8 (a) FAILURE TO FILE CORRECT INFORMATION RE9 TURNS.— 

10 (1) IN GENERAL.—Subsections (a)(1), (b)(1)(A), 

11 and (b)(2)(A) of section 6721 of the Internal Revenue 

12 Code of 1986 are each amended by striking ‘‘$50’’ 

13 and inserting ‘‘$100’’. 

14 (2) AGGREGATE ANNUAL LIMITATION.—Sub15 sections (a)(1), (d)(1)(A), and (e)(3)(A) of section 

16 6721 of such Code are each amended by striking 

17 ‘‘$250,000’’ and inserting ‘‘$1,500,000’’. 

18 (b) REDUCTION WHERE CORRECTION WITHIN 30 

19 DAYS.— 

20 (1) IN GENERAL.—Subparagraph (A) of section 

21 6721(b)(1) of the Internal Revenue Code of 1986 is 

22 amended by striking ‘‘$15’’ and inserting ‘‘$30’’. 

23 (2) AGGREGATE ANNUAL LIMITATION.—Sub24 sections (b)(1)(B) and (d)(1)(B) of section 6721 of 
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1 such Code are each amended by striking ‘‘$75,000’’ 

2 and inserting ‘‘$250,000’’. 

3 (c) REDUCTION WHERE CORRECTION ON OR BEFORE

4 AUGUST 1.— 

5 (1) IN GENERAL.—Subparagraph (A) of section 

6 6721(b)(2) of the Internal Revenue Code of 1986 is 

7 amended by striking ‘‘$30’’ and inserting ‘‘$60’’. 

8 (2) AGGREGATE ANNUAL LIMITATION.—Sub9 sections (b)(2)(B) and (d)(1)(C) of section 6721 of 

10 such Code are each amended by striking ‘‘$150,000’’ 

11 and inserting ‘‘$500,000’’. 

12 (d) AGGREGATE ANNUAL LIMITATIONS FOR PERSONS

13 WITH GROSS RECEIPTS OF NOT MORE THAN $5,000,000.— 

14 (1) IN GENERAL.—Paragraph (1) of section 

15 6721(d) of the Internal Revenue Code of 1986 is 

16 amended— 

17 (A) by striking ‘‘$100,000’’ in subpara18 graph (A) and inserting ‘‘$500,000’’, 

19 (B) by striking ‘‘$25,000’’ in subparagraph 

20 (B) and inserting ‘‘$75,000’’, and 

21 (C) by striking ‘‘$50,000’’ in subparagraph 

22 (C) and inserting ‘‘$200,000’’. 

23 (2) TECHNICAL AMENDMENT.—Paragraph (1) of 

24 section 6721(d) of such Code is amended by striking 
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1 ‘‘such taxable year’’ and inserting ‘‘such calendar 

2 year’’. 

3 (e) PENALTY IN CASE OF INTENTIONAL DISREGARD.— 

4 Paragraph (2) of section 6721(e) of the Internal Revenue 

5 Code of 1986 is amended by striking ‘‘$100’’ and inserting 

6 ‘‘$250’’. 

7 (f) ADJUSTMENT FOR INFLATION.—Section 6721 of the 

8 Internal Revenue Code of 1986 is amended by adding at 

9 the end the following new subsection: 

10 ‘‘(f) ADJUSTMENT FOR INFLATION.— 

11 ‘‘(1) IN GENERAL.—For each fifth calendar year 

12 beginning after 2012, each of the dollar amounts 

13 under subsections (a), (b), (d) (other than paragraph 

14 (2)(A) thereof), and (e) shall be increased by such dol15 lar amount multiplied by the cost-of-living adjust16 ment determined under section 1(f)(3) determined by 

17 substituting ‘calendar year 2011’ for ‘calendar year 

18 1992’ in subparagraph (B) thereof. 

19 ‘‘(2) ROUNDING.—If any amount adjusted under 

20 paragraph (1)— 

21 ‘‘(A) is not less than $75,000 and is not a 

22 multiple of $500, such amount shall be rounded 

23 to the next lowest multiple of $500, and 
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1 ‘‘(B) is not described in subparagraph (A) 

2 and is not a multiple of $10, such amount shall 

3 be rounded to the next lowest multiple of $10.’’. 

4 (g) FAILURE TO FURNISH CORRECT PAYEE STATE5 MENTS.—Section 6722 of the Internal Revenue Code of 1986 

6 is amended to read as follows: 

7 ‘‘SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATE8 MENTS. 

9 ‘‘(a) IMPOSITION OF PENALTY.— 

10 ‘‘(1) GENERAL RULE.—In the case of each failure 

11 described in paragraph (2) by any person with re12 spect to a payee statement, such person shall pay a 

13 penalty of $100 for each statement with respect to 

14 which such a failure occurs, but the total amount im15 posed on such person for all such failures during any 

16 calendar year shall not exceed $1,500,000. 

17 ‘‘(2) FAILURES SUBJECT TO PENALTY.—For pur18 poses of paragraph (1), the failures described in this 

19 paragraph are— 

20 ‘‘(A) any failure to furnish a payee state21 ment on or before the date prescribed therefor to 

22 the person to whom such statement is required to 

23 be furnished, and 
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1 ‘‘(B) any failure to include all of the infor2 mation required to be shown on a payee state3 ment or the inclusion of incorrect information. 

4 ‘‘(b) REDUCTION WHERE CORRECTION IN SPECIFIED

5 PERIOD.— 

6 ‘‘(1) CORRECTION WITHIN 30 DAYS.—If any fail7 ure described in subsection (a)(2) is corrected on or 

8 before the day 30 days after the required filing date— 

9 ‘‘(A) the penalty imposed by subsection (a) 

10 shall be $30 in lieu of $100, and 

11 ‘‘(B) the total amount imposed on the per12 son for all such failures during any calendar 

13 year which are so corrected shall not exceed 

14 $250,000. 

15 ‘‘(2) FAILURES CORRECTED ON OR BEFORE AU16 GUST 1.—If any failure described in subsection (a)(2) 

17 is corrected after the 30th day referred to in para18 graph (1) but on or before August 1 of the calendar 

19 year in which the required filing date occurs— 

20 ‘‘(A) the penalty imposed by subsection (a) 

21 shall be $60 in lieu of $100, and 

22 ‘‘(B) the total amount imposed on the per23 son for all such failures during the calendar year 

24 which are so corrected shall not exceed $500,000. 

25 ‘‘(c) EXCEPTION FOR DE MINIMIS FAILURES.— 
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1 ‘‘(1) IN GENERAL.—If— 

2 ‘‘(A) a payee statement is furnished to the 

3 person to whom such statement is required to be 

4 furnished, 

5 ‘‘(B) there is a failure described in sub6 section (a)(2)(B) (determined after the applica7 tion of section 6724(a)) with respect to such 

8 statement, and 

9 ‘‘(C) such failure is corrected on or before 

10 August 1 of the calendar year in which the re11 quired filing date occurs, 

12 for purposes of this section, such statement shall be 

13 treated as having been furnished with all of the cor14 rect required information. 

15 ‘‘(2) LIMITATION.—The number of payee state16 ments to which paragraph (1) applies for any cal17 endar year shall not exceed the greater of— 

18 ‘‘(A) 10, or 

19 ‘‘(B) one-half of 1 percent of the total num20 ber of payee statements required to be filed by 

21 the person during the calendar year. 

22 ‘‘(d) LOWER LIMITATIONS FOR PERSONS WITH GROSS

23 RECEIPTS OF NOT MORE THAN $5,000,000.— 

24 ‘‘(1) IN GENERAL.—If any person meets the gross 

25 receipts test of paragraph (2) with respect to any cal-
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1 endar year, with respect to failures during such cal2 endar year— 

3 ‘‘(A) subsection (a)(1) shall be applied by 

4 substituting ‘$500,000’ for ‘$1,500,000’, 

5 ‘‘(B) subsection (b)(1)(B) shall be applied 

6 by substituting ‘$75,000’ for ‘$250,000’, and 

7 ‘‘(C) subsection (b)(2)(B) shall be applied 

8 by substituting ‘$200,000’ for ‘$500,000’. 

9 ‘‘(2) GROSS RECEIPTS TEST.—A person meets 

10 the gross receipts test of this paragraph if such person 

11 meets the gross receipts test of section 6721(d)(2). 

12 ‘‘(e) PENALTY IN CASE OF INTENTIONAL DIS13 REGARD.—If 1 or more failures to which subsection (a) ap14 plies are due to intentional disregard of the requirement 

15 to furnish a payee statement (or the correct information 

16 reporting requirement), then, with respect to each such fail17 ure— 

18 ‘‘(1) subsections (b), (c), and (d) shall not apply, 

19 ‘‘(2) the penalty imposed under subsection (a)(1) 

20 shall be $250, or, if greater— 

21 ‘‘(A) in the case of a payee statement other 

22 than a statement required under section 6045(b), 

23 6041A(e) (in respect of a return required under 

24 section 6041A(b)), 6050H(d), 6050J(e), 

25 6050K(b), or 6050L(c), 10 percent of the aggre-
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1 gate amount of the items required to be reported 

2 correctly, or 

3 ‘‘(B) in the case of a payee statement re4 quired under section 6045(b), 6050K(b), or 

5 6050L(c), 5 percent of the aggregate amount of 

6 the items required to be reported correctly, and 

7 ‘‘(3) in the case of any penalty determined under 

8 paragraph (2)— 

9 ‘‘(A) the $1,500,000 limitation under sub10 section (a) shall not apply, and 

11 ‘‘(B) such penalty shall not be taken into 

12 account in applying such limitation to penalties 

13 not determined under paragraph (2). 

14 ‘‘(f) ADJUSTMENT FOR INFLATION.— 

15 ‘‘(1) IN GENERAL.—For each fifth calendar year 

16 beginning after 2012, each of the dollar amounts 

17 under subsections (a), (b), (d)(1), and (e) shall be in18 creased by such dollar amount multiplied by the cost19 of-living adjustment determined under section 1(f)(3) 

20 determined by substituting ‘calendar year 2011’ for 

21 ‘calendar year 1992’ in subparagraph (B) thereof. 

22 ‘‘(2) ROUNDING.—If any amount adjusted under 

23 paragraph (1)— 
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1 ‘‘(A) is not less than $75,000 and is not a 

2 multiple of $500, such amount shall be rounded 

3 to the next lowest multiple of $500, and 

4 ‘‘(B) is not described in subparagraph (A) 

5 and is not a multiple of $10, such amount shall 

6 be rounded to the next lowest multiple of $10.’’. 

7 (h) EFFECTIVE DATE.—The amendments made by this 

8 section shall apply with respect to information returns re9 quired to be filed on or after January 1, 2011. 

10 SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CER11 TAIN OTHER ENFORCEMENT ACTIONS. 

12 (a) IN GENERAL.—The Commissioner of Internal Rev13 enue, in consultation with the Secretary of the Treasury, 

14 shall submit to the Committee on Ways and Means of the 

15 House of Representatives and the Committee on Finance 

16 of the Senate an annual report on the penalties assessed 

17 by the Internal Revenue Service during the preceding year 

18 under each of the following provisions of the Internal Rev19 enue Code of 1986: 

20 (1) Section 6662A (relating to accuracy-related 

21 penalty on understatements with respect to reportable 

22 transactions). 

23 (2) Section 6700(a) (relating to promoting abu24 sive tax shelters). 
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1 (3) Section 6707 (relating to failure to furnish 

2 information regarding reportable transactions). 

3 (4) Section 6707A (relating to failure to include 

4 reportable transaction information with return). 

5 (5) Section 6708 (relating to failure to maintain 

6 lists of advisees with respect to reportable trans7 actions). 

8 (b) ADDITIONAL INFORMATION.—The report required 

9 under subsection (a) shall also include information on the 

10 following with respect to each year: 

11 (1) Any action taken under section 330(b) of 

12 title 31, United States Code, with respect to any re13 portable transaction (as defined in section 6707A(c) 

14 of the Internal Revenue Code of 1986). 

15 (2) Any extension of the time for assessment of 

16 tax enforced, or assessment of any amount under such 

17 an extension, under paragraph (10) of section 6501(c) 

18 of the Internal Revenue Code of 1986. 

19 (c) DATE OF REPORT.—The first report required 

20 under subsection (a) shall be submitted not later than De21 cember 31, 2010. 
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1 SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LI2 ABILITIES OF CERTAIN FEDERAL CONTRAC3 TORS. 

4 (a) IN GENERAL.—Subsection (f) of section 6330 of the 

5 Internal Revenue Code of 1986 is amended by striking ‘‘or’’ 

6 at the end of paragraph (2), by inserting ‘‘or’’ at the end 

7 of paragraph (3), and by inserting after paragraph (3) the 

8 following new paragraph: 

9 ‘‘(4) the Secretary has served a Federal con10 tractor levy,’’. 

11 (b) FEDERAL CONTRACTOR LEVY.—Subsection (h) of 

12 section 6330 of the Internal Revenue Code of 1986 is 

13 amended— 

14 (1) by striking all that precedes ‘‘any levy in 

15 connection with the collection’’ and inserting the fol16 lowing: 

17 ‘‘(h) DEFINITIONS RELATED TO EXCEPTIONS.—For 

18 purposes of subsection (f)— 

19 ‘‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY.—A 

20 disqualified employment tax levy is’’; and 

21 (2) by adding at the end the following new para22 graph: 

23 ‘‘(2) FEDERAL CONTRACTOR LEVY.—A Federal 

24 contractor levy is any levy if the person whose prop25 erty is subject to the levy (or any predecessor thereof) 

26 is a Federal contractor.’’. 
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1 (c) CONFORMING AMENDMENT.—The heading of sub2 section (f) of section 6330 of the Internal Revenue Code of 

3 1986 is amended by striking ‘‘JEOPARDY AND STATE RE4 FUND COLLECTION’’ and inserting ‘‘EXCEPTIONS’’. 

5 (d) EFFECTIVE DATE.—The amendments made by this 

6 section shall apply to levies issued after the date of the en7 actment of this Act. 

8 PART II—PROMOTING RETIREMENT 

9 PREPARATION 

10 SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 

11 PLANS ALLOWED TO TREAT ELECTIVE DEFER12 RALS AS ROTH CONTRIBUTIONS. 

13 (a) IN GENERAL.—Section 402A(e)(1) of the Internal 

14 Revenue Code of 1986 is amended by striking ‘‘and’’ at the 

15 end of subparagraph (A), by striking the period at the end 

16 of subparagraph (B) and inserting ‘‘, and’’, and by adding 

17 at the end the following: 

18 ‘‘(C) an eligible deferred compensation plan 

19 (as defined in section 457(b)) of an eligible em20 ployer described in section 457(e)(1)(A).’’. 

21 (b) ELECTIVE DEFERRALS.—Section 402A(e)(2) of the 

22 Internal Revenue Code of 1986 is amended to read as fol23 lows: 

24 ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective 

25 deferral’ means— 
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1 ‘‘(A) any elective deferral described in sub2 paragraph (A) or (C) of section 402(g)(3), and 

3 ‘‘(B) any elective deferral of compensation 

4 by an individual under an eligible deferred com5 pensation plan (as defined in section 457(b)) of 

6 an eligible employer described in section 

7 457(e)(1)(A).’’. 

8 (c) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to taxable years beginning after Decem10 ber 31, 2010. 

11 SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS 

12 TO DESIGNATED ROTH ACCOUNTS. 

13 (a) IN GENERAL.—Section 402A(c) of the Internal 

14 Revenue Code of 1986 is amended by adding at the end 

15 the following new paragraph: 

16 ‘‘(4) TAXABLE ROLLOVERS TO DESIGNATED ROTH

17 ACCOUNTS.— 

18 ‘‘(A) IN GENERAL.—Notwithstanding sec19 tions 402(c), 403(b)(8), and 457(e)(16), in the 

20 case of any distribution to which this paragraph 

21 applies— 

22 ‘‘(i) there shall be included in gross in23 come any amount which would be includible 

24 were it not part of a qualified rollover con25 tribution, 
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1 ‘‘(ii) section 72(t) shall not apply, and 

2 ‘‘(iii) unless the taxpayer elects not to 

3 have this clause apply, any amount re4 quired to be included in gross income for 

5 any taxable year beginning in 2010 by rea6 son of this paragraph shall be so included 

7 ratably over the 2-taxable-year period be8 ginning with the first taxable year begin9 ning in 2011. 

10 Any election under clause (iii) for any distribu11 tions during a taxable year may not be changed 

12 after the due date for such taxable year. 

13 ‘‘(B) DISTRIBUTIONS TO WHICH PARA14 GRAPH APPLIES.—In the case of an applicable 

15 retirement plan which includes a qualified Roth 

16 contribution program, this paragraph shall 

17 apply to a distribution from such plan other 

18 than from a designated Roth account which is 

19 contributed in a qualified rollover contribution 

20 (within the meaning of section 408A(e)) to the 

21 designated Roth account maintained under such 

22 plan for the benefit of the individual to whom 

23 the distribution is made. 

24 ‘‘(C) COORDINATION WITH LIMIT.—Any dis25 tribution to which this paragraph applies shall 
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1 not be taken into account for purposes of para2 graph (1). 

3 ‘‘(D) OTHER RULES.—The rules of subpara4 graphs (D), (E), and (F) of section 408A(d)(3) 

5 (as in effect for taxable years beginning after 

6 2009) shall apply for purposes of this para7 graph.’’. 

8 (b) EFFECTIVE DATE.—The amendments made by this 

9 section shall apply to distributions after the date of the en10 actment of this Act. 

11 SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED 

12 FROM ONLY A PORTION OF A CONTRACT. 

13 (a) IN GENERAL.—Subsection (a) of section 72 of the 

14 Internal Revenue Code of 1986 is amended to read as fol15 lows: 

16 ‘‘(a) GENERAL RULES FOR ANNUITIES.— 

17 ‘‘(1) INCOME INCLUSION.—Except as otherwise 

18 provided in this chapter, gross income includes any 

19 amount received as an annuity (whether for a period 

20 certain or during one or more lives) under an annu21 ity, endowment, or life insurance contract. 

22 ‘‘(2) PARTIAL ANNUITIZATION.—If any amount 

23 is received as an annuity for a period of 10 years or 

24 more or during one or more lives under any portion 
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1 of an annuity, endowment, or life insurance con2 tract— 

3 ‘‘(A) such portion shall be treated as a sepa4 rate contract for purposes of this section, 

5 ‘‘(B) for purposes of applying subsections 

6 (b), (c), and (e), the investment in the contract 

7 shall be allocated pro rata between each portion 

8 of the contract from which amounts are received 

9 as an annuity and the portion of the contract 

10 from which amounts are not received as an an11 nuity, and 

12 ‘‘(C) a separate annuity starting date under 

13 subsection (c)(4) shall be determined with respect 

14 to each portion of the contract from which 

15 amounts are received as an annuity.’’. 

16 (b) EFFECTIVE DATE.—The amendment made by this 

17 section shall apply to amounts received in taxable years be18 ginning after December 31, 2010. 

19 PART III—CLOSING UNINTENDED LOOPHOLES 

20 SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC 

21 BIOFUEL PRODUCER CREDIT. 

22 (a) IN GENERAL.—Clause (iii) of section 40(b)(6)(E) 

23 of the Internal Revenue Code of 1986, as added by the 

24 Health Care and Education Reconciliation Act of 2010, is 

25 amended— 
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1 (1) by striking ‘‘or’’ at the end of subclause (I), 

2 (2) by striking the period at the end of subclause 

3 (II) and inserting ‘‘, or’’, 

4 (3) by adding at the end the following new sub5 clause: 

6 ‘‘(III) such fuel has an acid num7 ber greater than 25.’’, and 

8 (4) by striking ‘‘UNPROCESSED’’ in the heading 

9 and inserting ‘‘CERTAIN’’. 

10 (b) EFFECTIVE DATE.—The amendments made by this 

11 section shall apply to fuels sold or used on or after January 

12 1, 2010. 

13 SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES. 

14 (a) AMOUNTS SOURCED WITHIN THE UNITED

15 STATES.—Subsection (a) of section 861 of the Internal Rev16 enue Code of 1986 is amended by adding at the end the 

17 following new paragraph: 

18 ‘‘(9) GUARANTEES.—Amounts received, directly 

19 or indirectly, from— 

20 ‘‘(A) a noncorporate resident or domestic 

21 corporation for the provision of a guarantee of 

22 any indebtedness of such resident or corporation, 

23 or 

24 ‘‘(B) any foreign person for the provision of 

25 a guarantee of any indebtedness of such person, 
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1 if such amount is connected with income which 

2 is effectively connected (or treated as effectively 

3 connected) with the conduct of a trade or busi4 ness in the United States.’’. 

5 (b) AMOUNTS SOURCED WITHOUT THE UNITED

6 STATES.—Subsection (a) of section 862 of the Internal Rev7 enue Code of 1986 is amended by striking ‘‘and’’ at the 

8 end of paragraph (7), by striking the period at the end of 

9 paragraph (8) and inserting ‘‘; and’’, and by adding at 

10 the end the following new paragraph: 

11 ‘‘(9) amounts received, directly or indirectly, 

12 from a foreign person for the provision of a guarantee 

13 of indebtedness of such person other than amounts 

14 which are derived from sources within the United 

15 States as provided in section 861(a)(9).’’. 

16 (c) CONFORMING AMENDMENT.—Clause (ii) of section 

17 864(c)(4)(B) of the Internal Revenue Code of 1986 is 

18 amended by striking ‘‘dividends or interest’’ and inserting 

19 ‘‘dividends, interest, or amounts received for the provision 

20 of guarantees of indebtedness’’. 

21 (d) EFFECTIVE DATE.—The amendments made by this 

22 section shall apply to guarantees issued after the date of 

23 the enactment of this Act. 
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1 PART IV—TIME FOR PAYMENT OF CORPORATE 

2 ESTIMATED TAXES 

3 SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED 

4 TAXES. 

5 The percentage under paragraph (2) of section 561 of 

6 the Hiring Incentives to Restore Employment Act in effect 

7 on the date of the enactment of this Act is increased by 

8 36 percentage points. 

9 TITLE III—STATE SMALL 

10 BUSINESS CREDIT INITIATIVE 

11 SEC. 3001. SHORT TITLE. 

12 This title may be cited as the ‘‘State Small Business 

13 Credit Initiative Act of 2010’’. 

14 SEC. 3002. DEFINITIONS. 

15 In this title, the following definitions shall apply: 

16 (1) APPROPRIATE COMMITTEES OF CONGRESS.— 

17 The term ‘‘appropriate committees of Congress’’ 

18 means— 

19 (A) the Committee on Small Business and 

20 Entrepreneurship, the Committee on Agriculture, 

21 Nutrition, and Forestry, the Committee on 

22 Banking, Housing, and Urban Affairs, the Com23 mittee on Finance, the Committee on the Budget, 

24 and the Committee on Appropriations of the 

25 Senate; and 
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1 (B) the Committee on Small Business, the 

2 Committee on Agriculture, the Committee on Fi3 nancial Services, the Committee on Ways and 

4 Means, the Committee on the Budget, and the 

5 Committee on Appropriations of the House of 

6 Representatives. 

7 (2) APPROPRIATE FEDERAL BANKING AGENCY.— 

8 The term ‘‘appropriate Federal banking agency’’— 

9 (A) has the same meaning as in section 3(q) 

10 of the Federal Deposit Insurance Act (12 U.S.C. 

11 1813(q)); and 

12 (B) includes the National Credit Union Ad13 ministration Board in the case of any credit 

14 union the deposits of which are insured in ac15 cordance with the Federal Credit Union Act. 

16 (3) ENROLLED LOAN.—The term ‘‘enrolled loan’’ 

17 means a loan made by a financial institution lender 

18 that is enrolled by a participating State in an ap19 proved State capital access program in accordance 

20 with this title. 

21 (4) FEDERAL CONTRIBUTION.—The term ‘‘Fed22 eral contribution’’ means the portion of the contribu23 tion made by a participating State to, or for the ac24 count of, an approved State program that is made 
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1 with Federal funds allocated to the State by the Sec2 retary under section 3003. 

3 (5) FINANCIAL INSTITUTION.—The term ‘‘finan4 cial institution’’ means any insured depository insti5 tution, insured credit union, or community develop6 ment financial institution, as those terms are each de7 fined in section 103 of the Riegle Community Devel8 opment and Regulatory Improvement Act of 1994 (12 

9 U.S.C. 4702). 

10 (6) PARTICIPATING STATE.—The term ‘‘partici11 pating State’’ means any State that has been ap12 proved for participation in the Program under sec13 tion 3004. 

14 (7) PROGRAM.—The term ‘‘Program’’ means the 

15 State Small Business Credit Initiative established 

16 under this title. 

17 (8) QUALIFYING LOAN OR SWAP FUNDING FACIL18 ITY.—The term ‘‘qualifying loan or swap funding fa19 cility’’ means a contractual arrangement between a 

20 participating State and a private financial entity 

21 under which— 

22 (A) the participating State delivers funds to 

23 the entity as collateral; 

24 (B) the entity provides funding from the ar25 rangement back to the participating State; and 
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1 (C) the full amount of resulting funding 

2 from the arrangement, less any fees and other 

3 costs of the arrangement, is contributed to, or for 

4 the account of, an approved State program. 

5 (9) RESERVE FUND.—The term ‘‘reserve fund’’ 

6 means a fund, established by a participating State, 

7 dedicated to a particular financial institution lender, 

8 for the purposes of— 

9 (A) depositing all required premium 

10 charges paid by the financial institution lender 

11 and by each borrower receiving a loan under an 

12 approved State program from that financial in13 stitution lender; 

14 (B) depositing contributions made by the 

15 participating State, including State contribu16 tions made with Federal contributions; and 

17 (C) covering losses on enrolled loans by dis18 bursing accumulated funds. 

19 (10) STATE.—The term ‘‘State’’ means— 

20 (A) a State of the United States; 

21 (B) the District of Columbia, the Common22 wealth of Puerto Rico, the Commonwealth of 

23 Northern Mariana Islands, Guam, American 

24 Samoa, and the United States Virgin Islands; 
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1 (C) when designated by a State of the 

2 United States, a political subdivision of that 

3 State that the Secretary determines has the ca4 pacity to participate in the Program; and 

5 (D) under the circumstances described in 

6 section 3004(d), a municipality of a State of the 

7 United States to which the Secretary has given 

8 a special permission under section 3004(d). 

9 (11) STATE CAPITAL ACCESS PROGRAM.—The 

10 term ‘‘State capital access program’’ means a pro11 gram of a State that— 

12 (A) uses public resources to promote private 

13 access to credit; and 

14 (B) meets the eligibility criteria in section 

15 3005(c). 

16 (12) STATE OTHER CREDIT SUPPORT PRO17 GRAM.—The term ‘‘State other credit support pro18 gram’’— 

19 (A) means a program of a State that— 

20 (i) uses public resources to promote 

21 private access to credit; 

22 (ii) is not a State capital access pro23 gram; and 

24 (iii) meets the eligibility criteria in 

25 section 3006(c); and 
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1 (B) includes, collateral support programs, 

2 loan participation programs, State-run venture 

3 capital fund programs, and credit guarantee 

4 programs. 

5 (13) STATE PROGRAM.—The term ‘‘State pro6 gram’’ means a State capital access program or a 

7 State other credit support program. 

8 (14) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of the Treasury. 

10 SEC. 3003. FEDERAL FUNDS ALLOCATED TO STATES. 

11 (a) PROGRAM ESTABLISHED; PURPOSE.—There is es12 tablished the State Small Business Credit Initiative, to be 

13 administered by the Secretary. Under the Program, the Sec14 retary shall allocate Federal funds to participating States 

15 and make the allocated funds available to the participating 

16 States as provided in this section for the uses described in 

17 this section. 

18 (b) ALLOCATION FORMULA.— 

19 (1) IN GENERAL.—Not later than 30 days after 

20 the date of enactment of this Act, the Secretary shall 

21 allocate Federal funds to participating States so that 

22 each State is eligible to receive an amount equal to 

23 the average of the respective amounts that the State— 

24 (A) would receive under the 2009 allocation, 

25 as determined under paragraph (2); and 
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1 (B) would receive under the 2010 allocation, 

2 as determined under paragraph (3). 

3 (2) 2009 ALLOCATION FORMULA.— 

4 (A) IN GENERAL.—The Secretary shall de5 termine the 2009 allocation by allocating Fed6 eral funds among the States in the proportion 

7 that each such State’s 2008 State employment 

8 decline bears to the aggregate of the 2008 State 

9 employment declines for all States. 

10 (B) MINIMUM ALLOCATION.—The Secretary 

11 shall adjust the allocations under subparagraph 

12 (A) for each State to the extent necessary to en13 sure that no State receives less than 0.9 percent 

14 of the Federal funds. 

15 (C) 2008 STATE EMPLOYMENT DECLINE DE16 FINED.—In this paragraph and with respect to 

17 a State, the term ‘‘2008 State employment de18 cline’’ means the excess (if any) of— 

19 (i) the number of individuals employed 

20 in such State determined for December 

21 2007; over 

22 (ii) the number of individuals em23 ployed in such State determined for Decem24 ber 2008. 

25 (3) 2010 ALLOCATION FORMULA.— 
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1 (A) IN GENERAL.—The Secretary shall de2 termine the 2010 allocation by allocating Fed3 eral funds among the States in the proportion 

4 that each such State’s 2009 unemployment num5 ber bears to the aggregate of the 2009 unemploy6 ment numbers for all of the States. 

7 (B) MINIMUM ALLOCATION.—The Secretary 

8 shall adjust the allocations under subparagraph 

9 (A) for each State to the extent necessary to en10 sure that no State receives less than 0.9 percent 

11 of the Federal funds. 

12 (C) 2009 UNEMPLOYMENT NUMBER DE13 FINED.—In this paragraph and with respect to 

14 a State, the term ‘‘2009 unemployment number’’ 

15 means the number of individuals within such 

16 State who were determined to be unemployed by 

17 the Bureau of Labor Statistics for December 

18 2009. 

19 (c) AVAILABILITY OF ALLOCATED AMOUNT.—The 

20 amount allocated by the Secretary to each participating 

21 State under subsection (b) shall be made available to the 

22 State as follows: 

23 (1) ALLOCATED AMOUNT GENERALLY TO BE

24 AVAILABLE TO STATE IN ONE-THIRDS.— 

25 (A) IN GENERAL.—The Secretary shall— 
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1 (i) apportion the participating State’s 

2 allocated amount into thirds; 

3 (ii) transfer to the participating State 

the first 1 4 ⁄3 when the Secretary approves the 

5 State for participation under section 3004; 

6 and 

7 (iii) transfer to the participating State 

each successive 1 8 ⁄3 when the State has cer9 tified to the Secretary that it has expended, 

10 transferred, or obligated 80 percent of the 

last transferred 1 11 ⁄3 for Federal contributions 

12 to, or for the account of, State programs. 

13 (B) AUTHORITY TO WITHHOLD PENDING

14 AUDIT.—The Secretary may withhold the transfer of any successive 1 15 ⁄3 pending results of a fi16 nancial audit. 

17 (C) INSPECTOR GENERAL AUDITS.— 

18 (i) IN GENERAL.—The Inspector Gen19 eral of the Department of the Treasury shall 

20 carry out an audit of the participating 

21 State’s use of allocated Federal funds trans22 ferred to the State. 

23 (ii) RECOUPMENT OF MISUSED TRANS24 FERRED FUNDS REQUIRED.—The allocation 

25 agreement between the Secretary and the 
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1 participating State shall provide that the 

2 Secretary shall recoup any allocated Fed3 eral funds transferred to the participating 

4 State if the results of the an audit include 

5 a finding that there was an intentional or 

6 reckless misuse of transferred funds by the 

7 State. 

8 (iii) PENALTY FOR MISSTATEMENT.— 

9 Any participating State that is found to 

10 have intentionally misstated any report 

11 issued to the Secretary under the Program 

12 shall be ineligible to receive any additional 

13 funds under the Program. Funds that had 

14 been allocated or that would otherwise have 

15 been allocated to such participating State 

16 shall be paid into the general fund of the 

17 Treasury for reduction of the public debt. 

18 (iv) MUNICIPALITIES.—In this sub19 paragraph, the term ‘‘participating State’’ 

20 shall include a municipality given special 

21 permission to participate in the Program, 

22 under section 3004(d). 

23 (D) EXCEPTION.—The Secretary may, in 

24 the Secretary’s discretion, transfer the full 

25 amount of the participating State’s allocated 
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1 amount to the State in a single transfer if the 

2 participating State applies to the Secretary for 

3 approval to use the full amount of the allocation 

4 as collateral for a qualifying loan or swap fund5 ing facility. 

6 (2) TRANSFERRED AMOUNTS.—Each amount 

7 transferred to a participating State under this section 

8 shall remain available to the State until used by the 

9 State as permitted under paragraph (3). 

10 (3) USE OF TRANSFERRED FUNDS.—Each par11 ticipating State may use funds transferred to it 

12 under this section only— 

13 (A) for making Federal contributions to, or 

14 for the account of, an approved State program; 

15 (B) as collateral for a qualifying loan or 

16 swap funding facility; 

(C) in the case of the first 1 17 ⁄3 transferred, 

18 for paying administrative costs incurred by the 

19 State in implementing an approved State pro20 gram in an amount not to exceed 5 percent of 

that first 1 21 ⁄3; or 

(D) in the case of each successive 1 22 ⁄3 trans23 ferred, for paying administrative costs incurred 

24 by the State in implementing an approved State 
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1 program in an amount not to exceed 3 percent 

of that successive 1 2 ⁄3. 

3 (4) TERMINATION OF AVAILABILITY OF AMOUNTS

4 NOT TRANSFERRED WITHIN 2 YEARS OF PARTICIPA5 TION.—Any portion of a participating State’s allo6 cated amount that has not been transferred to the 

7 State under this section by the end of the 2-year pe8 riod beginning on the date that the Secretary ap9 proves the State for participation may be deemed by 

10 the Secretary to be no longer allocated to the State 

11 and no longer available to the State and shall be re12 turned to the General Fund of the Treasury. 

13 (5) TRANSFERRED AMOUNTS NOT ASSISTANCE.— 

14 The amounts transferred to a participating State 

15 under this section shall not be considered assistance 

16 for purposes of subtitle V of title 31, United States 

17 Code. 

18 (6) DEFINITIONS.—In this section— 

19 (A) the term ‘‘allocated amount’’ means the 

20 total amount of Federal funds allocated by the 

21 Secretary under subsection (b) to the partici22 pating State; and 

(B) the term ‘‘1 23 ⁄3’’ means— 

(i) in the case of the first 1 24 ⁄3 and second 1 25 ⁄3, an amount equal to 33 percent of 
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1 a participating State’s allocated amount; 

2 and 

(ii) in the case of the last 1 3 ⁄3, an 

4 amount equal to 34 percent of a partici5 pating State’s allocated amount. 

6 SEC. 3004. APPROVING STATES FOR PARTICIPATION. 

7 (a) APPLICATION.—Any State may apply to the Sec8 retary for approval to be a participating State under the 

9 Program and to be eligible for an allocation of Federal 

10 funds under the Program. 

11 (b) GENERAL APPROVAL CRITERIA.—The Secretary 

12 shall approve a State to be a participating State, if— 

13 (1) a specific department, agency, or political 

14 subdivision of the State has been designated to imple15 ment a State program and participate in the Pro16 gram; 

17 (2) all legal actions necessary to enable such des18 ignated department, agency, or political subdivision 

19 to implement a State program and participate in the 

20 Program have been accomplished; 

21 (3) the State has filed an application with the 

22 Secretary for approval of a State capital access pro23 gram under section 3005 or approval as a State other 

24 credit support program under section 3006, in each 
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1 case within the time period provided in the respective 

2 section; and 

3 (4) the State and the Secretary have executed an 

4 allocation agreement that— 

5 (A) conforms to the requirements of this 

6 title; 

7 (B) ensures that the State program complies 

8 with such national standards as are established 

9 by the Secretary under section 3009(a)(2); 

10 (C) sets forth internal control, compliance, 

11 and reporting requirements as established by the 

12 Secretary, and such other terms and conditions 

13 necessary to carry out the purposes of this title, 

14 including an agreement by the State to allow the 

15 Secretary to audit State programs; 

16 (D) requires that the State program be fully 

17 positioned, within 90 days of the State’s execu18 tion of the allocation agreement with the Sec19 retary, to act on providing the kind of credit 

20 support that the State program was established 

21 to provide; and 

22 (E) includes an agreement by the State to 

23 deliver to the Secretary, and update annually, a 

24 schedule describing how the State intends to ap-
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1 portion among its State programs the Federal 

2 funds allocated to the State. 

3 (c) CONTRACTUAL ARRANGEMENTS FOR IMPLEMENTA4 TION OF STATE PROGRAMS.—A State may be approved to 

5 be a participating State, and be eligible for an allocation 

6 of Federal funds under the Program, if the State has con7 tractual arrangements for the implementation and admin8 istration of its State program with— 

9 (1) an existing, approved State program admin10 istered by another State; or 

11 (2) an authorized agent of, or entity supervised 

12 by, the State, including for-profit and not-for-profit 

13 entities. 

14 (d) SPECIAL PERMISSION.— 

15 (1) CIRCUMSTANCES WHEN A MUNICIPALITY MAY

16 APPLY DIRECTLY.—If a State does not, within 60 

17 days after the date of enactment of this Act, file with 

18 the Secretary a notice of its intent to apply for ap19 proval by the Secretary of a State program or within 

20 9 months after the date of enactment of this Act, file 

21 with the Secretary a complete application for ap22 proval of a State program, the Secretary may grant 

23 to municipalities of that State a special permission 

24 that will allow them to apply directly to the Sec-
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1 retary without the State for approval to be partici2 pating municipalities. 

3 (2) TIMING REQUIREMENTS APPLICABLE TO MU4 NICIPALITIES APPLYING DIRECTLY.—To qualify for 

5 the special permission, a municipality of a State 

6 shall be required, within 12 months after the date of 

7 enactment of this Act, to file with the Secretary a 

8 complete application for approval by the Secretary of 

9 a State program. 

10 (3) NOTICES OF INTENT AND APPLICATIONS

11 FROM MORE THAN 1 MUNICIPALITY.—A municipality 

12 of a State may combine with 1 or more other munici13 palities of that State to file a joint notice of intent 

14 to file and a joint application. 

15 (4) APPROVAL CRITERIA.—The general approval 

16 criteria in paragraphs (2) and (4) shall apply. 

17 (5) ALLOCATION TO MUNICIPALITIES.— 

18 (A) IF MORE THAN 3.—If more than 3 mu19 nicipalities, or combination of municipalities as 

20 provided in paragraph (3), of a State apply for 

21 approval by the Secretary to be participating 

22 municipalities under this subsection, and the ap23 plications meet the approval criteria in para24 graph (4), the Secretary shall allocate Federal 
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1 funds to the 3 municipalities with the largest 

2 populations. 

3 (B) IF 3 OR FEWER.—If 3 or fewer munici4 palities, or combination of municipalities as 

5 provided in paragraph (3), of a State apply for 

6 approval by the Secretary to be participating 

7 municipalities under this subsection, and the ap8 plications meet the approval criteria in para9 graph (4), the Secretary shall allocate Federal 

10 funds to each applicant municipality or com11 bination of municipalities. 

12 (6) APPORTIONMENT OF ALLOCATED AMOUNT

13 AMONG PARTICIPATING MUNICIPALITIES.—If the Sec14 retary approves municipalities to be participating 

15 municipalities under this subsection, the Secretary 

16 shall apportion the full amount of the Federal funds 

17 that are allocated to that State to municipalities that 

18 are approved under this subsection in amounts pro19 portionate to the population of those municipalities, 

20 based on the most recent available decennial census. 

21 (7) APPROVING STATE PROGRAMS FOR MUNICI22 PALITIES.—If the Secretary approves municipalities 

23 to be participating municipalities under this sub24 section, the Secretary shall take into account the ad25 ditional considerations in section 3006(d) in making 
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1 the determination under section 3005 or 3006 that the 

2 State program or programs to be implemented by the 

3 participating municipalities, including a State cap4 ital access program, is eligible for Federal contribu5 tions to, or for the account of, the State program. 

6 SEC. 3005. APPROVING STATE CAPITAL ACCESS PROGRAMS. 

7 (a) APPLICATION.—A participating State that estab8 lishes a new, or has an existing, State capital access pro9 gram that meets the eligibility criteria in subsection (c) 

10 may apply to Secretary to have the State capital access 

11 program approved as eligible for Federal contributions to 

12 the reserve fund. 

13 (b) APPROVAL.—The Secretary shall approve such 

14 State capital access program as eligible for Federal con15 tributions to the reserve fund if— 

16 (1) within 60 days after the date of enactment 

17 of this Act, the State has filed with the Secretary a 

18 notice of intent to apply for approval by the Sec19 retary of a State capital access program; 

20 (2) within 9 months after the date of enactment 

21 of this Act, the State has filed with the Secretary a 

22 complete application for approval by the Secretary of 

23 a capital access program; 

24 (3) the State satisfies the requirements of sub25 sections (a) and (b) of section 3004; and 
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1 (4) the State capital access program meets the 

2 eligibility criteria in subsection (c). 

3 (c) ELIGIBILITY CRITERIA FOR STATE CAPITAL AC4 CESS PROGRAMS.—For a State capital access program to 

5 be approved under this section, that program shall be re6 quired to be a program of the State that— 

7 (1) provides portfolio insurance for business 

8 loans based on a separate loan-loss reserve fund for 

9 each financial institution; 

10 (2) requires insurance premiums to be paid by 

11 the financial institution lenders and by the business 

12 borrowers to the reserve fund to have their loans en13 rolled in the reserve fund; 

14 (3) provides for contributions to be made by the 

15 State to the reserve fund in amounts at least equal to 

16 the sum of the amount of the insurance premium 

17 charges paid by the borrower and the financial insti18 tution to the reserve fund for any newly enrolled loan; 

19 and 

20 (4) provides its portfolio insurance solely for 

21 loans that meet both the following requirements: 

22 (A) The borrower has 500 employees or less 

23 at the time that the loan is enrolled in the Pro24 gram. 
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1 (B) The loan amount does not exceed 

2 $5,000,000. 

3 (d) FEDERAL CONTRIBUTIONS TO APPROVED STATE

4 CAPITAL ACCESS PROGRAMS.—A State capital access pro5 gram approved under this section will be eligible for receiv6 ing Federal contributions to the reserve fund in an amount 

7 equal to the sum of the amount of the insurance premium 

8 charges paid by the borrowers and by the financial institu9 tion to the reserve fund for loans that meet the requirements 

10 in subsection (c)(4). A participating State may use the Fed11 eral contribution to make its contribution to the reserve 

12 fund of an approved State capital access program. 

13 (e) MINIMUM PROGRAM REQUIREMENTS FOR STATE

14 CAPITAL ACCESS PROGRAMS.—The Secretary shall, by reg15 ulation or other guidance, prescribe Program requirements 

16 that meet the following minimum requirements: 

17 (1) EXPERIENCE AND CAPACITY.—The partici18 pating State shall determine for each financial insti19 tution that participates in the State capital access 

20 program, after consultation with the appropriate Fed21 eral banking agency or, in the case of a financial in22 stitution that is a nondepository community develop23 ment financial institution, the Community Develop24 ment Financial Institution Fund, that the financial 

25 institution has sufficient commercial lending experi-
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1 ence and financial and managerial capacity to par2 ticipate in the approved State capital access program. 

3 The determination by the State shall not be review4 able by the Secretary. 

5 (2) INVESTMENT AUTHORITY.—Subject to appli6 cable State law, the participating State may invest, 

7 or cause to be invested, funds held in a reserve fund 

8 by establishing a deposit account at the financial in9 stitution lender in the name of the participating 

10 State. In the event that funds in the reserve fund are 

11 not deposited in such an account, such funds shall be 

12 invested in a form that the participating State deter13 mines is safe and liquid. 

14 (3) LOAN TERMS AND CONDITIONS TO BE DETER15 MINED BY AGREEMENT.—A loan to be filed for enroll16 ment in an approved State capital access program 

17 may be made with such interest rate, fees, and other 

18 terms and conditions, and the loan may be enrolled 

19 in the approved State capital access program and 

20 claims may be filed and paid, as agreed upon by the 

21 financial institution lender and the borrower, con22 sistent with applicable law. 

23 (4) LENDER CAPITAL AT-RISK.—A loan to be 

24 filed for enrollment in the State capital access pro25 gram shall require the financial institution lender to 
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1 have a meaningful amount of its own capital re2 sources at risk in the loan. 

3 (5) PREMIUM CHARGES MINIMUM AND MAXIMUM

4 AMOUNTS.—The insurance premium charges payable 

5 to the reserve fund by the borrower and the financial 

6 institution lender shall be prescribed by the financial 

7 institution lender, within minimum and maximum 

8 limits that require that the sum of the insurance pre9 mium charges paid in connection with a loan by the 

10 borrower and the financial institution lender may not 

11 be less than 2 percent nor more than 7 percent of the 

12 amount of the loan enrolled in the approved State 

13 capital access program. 

14 (6) STATE CONTRIBUTIONS.—In enrolling a loan 

15 in an approved State capital access program, the 

16 participating State may make a contribution to the 

17 reserve fund to supplement Federal contributions 

18 made under this Program. 

19 (7) LOAN PURPOSE.— 

20 (A) PARTICULAR LOAN PURPOSE REQUIRE21 MENTS AND PROHIBITIONS.—In connection with 

22 the filing of a loan for enrollment in an ap23 proved State capital access program, the finan24 cial institution lender— 
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1 (i) shall obtain an assurance from each 

2 borrower that— 

3 (I) the proceeds of the loan will be 

4 used for a business purpose; 

5 (II) the loan will not be used to 

6 finance such business activities as the 

7 Secretary, by regulation, may pro8 scribe as prohibited loan purposes for 

9 enrollment in an approved State cap10 ital access program; and 

11 (III) the borrower is not— 

12 (aa) an executive officer, di13 rector, or principal shareholder of 

14 the financial institution lender; 

15 (bb) a member of the imme16 diate family of an executive offi17 cer, director, or principal share18 holder of the financial institution 

19 lender; or 

20 (cc) a related interest of any 

21 such executive officer, director, 

22 principal shareholder, or member 

23 of the immediate family; 

24 (ii) shall provide assurances to the 

25 participating State that the loan has not 
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1 been made in order to place under the pro2 tection of the approved State capital access 

3 program prior debt that is not covered 

4 under the approved State capital access 

5 program and that is or was owed by the 

6 borrower to the financial institution lender 

7 or to an affiliate of the financial institution 

8 lender; 

9 (iii) shall not allow the enrollment of 

10 a loan to a borrower that is a refinancing 

11 of a loan previously made to that borrower 

12 by the financial institution lender or an af13 filiate of the financial institution lender; 

14 and 

15 (iv) may include additional restric16 tions on the eligibility of loans or borrowers 

17 that are not inconsistent with the provisions 

18 and purposes of this title, including compli19 ance with all applicable Federal and State 

20 laws, regulations, ordinances, and Executive 

21 orders. 

22 (B) DEFINITIONS.—In this paragraph, the 

23 terms ‘‘executive officer’’, ‘‘director’’, ‘‘principal 

24 shareholder’’, ‘‘immediate family’’, and ‘‘related 

25 interest’’ refer to the same relationship to a fi-
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1 nancial institution lender as the relationship de2 scribed in part 215 of title 12 of the Code of Fed3 eral Regulations, or any successor to such part. 

4 (8) CAPITAL ACCESS FOR SMALL BUSINESSES IN

5 UNDERSERVED COMMUNITIES.—At the time that a 

6 State applies to the Secretary to have the State cap7 ital access program approved as eligible for Federal 

8 contributions, the State shall deliver to the Secretary 

9 a report stating how the State plans to use the Fed10 eral contributions to the reserve fund to provide access 

11 to capital for small businesses in low- and moderate12 income, minority, and other underserved commu13 nities, including women- and minority-owned small 

14 businesses. 

15 SEC. 3006. APPROVING COLLATERAL SUPPORT AND OTHER 

16 INNOVATIVE CREDIT ACCESS AND GUAR17 ANTEE INITIATIVES FOR SMALL BUSINESSES 

18 AND MANUFACTURERS. 

19 (a) APPLICATION.—A participating State that estab20 lishes a new, or has an existing, credit support program 

21 that meets the eligibility criteria in subsection (c) may 

22 apply to the Secretary to have the State other credit support 

23 program approved as eligible for Federal contributions to, 

24 or for the account of, the State program. 
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1 (b) APPROVAL.—The Secretary shall approve such 

2 State other credit support program as eligible for Federal 

3 contributions to, or for the account of, the program if— 

4 (1) the Secretary determines that the State satis5 fies the requirements of paragraphs (1) through (3) of 

6 section 3005(b); 

7 (2) the Secretary determines that the State other 

8 credit support program meets the eligibility criteria 

9 in subsection (c); 

10 (3) the Secretary determines the State other cred11 it support program to be eligible based on the addi12 tional considerations in subsection (d); and 

13 (4) within 9 months after the date of enactment 

14 of this Act, the State has filed with Treasury a com15 plete application for Treasury approval. 

16 (c) ELIGIBILITY CRITERIA FOR STATE OTHER CREDIT

17 SUPPORT PROGRAMS.—For a State other credit support 

18 program to be approved under this section, that program 

19 shall be required to be a program of the State that— 

20 (1) can demonstrate that, at a minimum, $1 of 

21 public investment by the State program will cause 

22 and result in $1 of new private credit; 

23 (2) can demonstrate a reasonable expectation 

24 that, when considered with all other State programs 

25 of the State, such State programs together have the 
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1 ability to use amounts of new Federal contributions 

2 to, or for the account of, all such programs in the 

3 State to cause and result in amounts of new small 

4 business lending at least 10 times the new Federal 

5 contribution amount; 

6 (3) for those State other credit support programs 

7 that provide their credit support through 1 or more 

8 financial institution lenders, requires the financial 

9 institution lenders to have a meaningful amount of 

10 their own capital resources at risk in their small 

11 business lending; and 

12 (4) uses Federal funds allocated under this title 

13 to extend credit support that— 

14 (A) targets an average borrower size of 500 

15 employees or less; 

16 (B) does not extend credit support to bor17 rowers that have more than 750 employees; 

18 (C) targets support towards loans with an 

19 average principal amount of $5,000,000 or less; 

20 and 

21 (D) does not extend credit support to loans 

22 that exceed a principal amount of $20,000,000. 

23 (d) ADDITIONAL CONSIDERATIONS.—In making a de24 termination that a State other credit support program is 

25 eligible for Federal contributions to, or for the account of, 
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1 the State program, the Secretary shall take into account 

2 the following additional considerations: 

3 (1) The anticipated benefits to the State, its 

4 businesses, and its residents to be derived from the 

5 Federal contributions to, or for the account of, the ap6 proved State other credit support program, including 

7 the extent to which resulting small business lending 

8 will expand economic opportunities. 

9 (2) The operational capacity, skills, and experi10 ence of the management team of the State other credit 

11 support program. 

12 (3) The capacity of the State other credit support 

13 program to manage increases in the volume of its 

14 small business lending. 

15 (4) The internal accounting and administrative 

16 controls systems of the State other credit support pro17 gram, and the extent to which they can provide rea18 sonable assurance that funds of the State program are 

19 safeguarded against waste, loss, unauthorized use, or 

20 misappropriation. 

21 (5) The soundness of the program design and im22 plementation plan of the State other credit support 

23 program. 

24 (e) FEDERAL CONTRIBUTIONS TO APPROVED STATE

25 OTHER CREDIT SUPPORT PROGRAMS.—A State other credit 
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1 support program approved under this section will be eligi2 ble for receiving Federal contributions to, or for the account 

3 of, the State program in an amount consistent with the 

4 schedule describing the apportionment of allocated Federal 

5 funds among State programs delivered by the State to the 

6 Secretary under the allocation agreement. 

7 (f) MINIMUM PROGRAM REQUIREMENTS FOR STATE

8 OTHER CREDIT SUPPORT PROGRAMS.— 

9 (1) FUND TO PRESCRIBE.—The Secretary shall, 

10 by regulation or other guidance, prescribe Program 

11 requirements for approved State other credit support 

12 programs. 

13 (2) CONSIDERATIONS FOR FUND.—In prescribing 

14 minimum Program requirements for approved State 

15 other credit support programs, the Secretary shall 

16 take into consideration, to the extent the Secretary de17 termines applicable and appropriate, the minimum 

18 Program requirements for approved State capital ac19 cess programs in section 3005(e). 

20 SEC. 3007. REPORTS. 

21 (a) QUARTERLY USE-OF-FUNDS REPORT.— 

22 (1) IN GENERAL.—Not later than 30 days after 

23 the beginning of each calendar quarter, beginning 

24 after the first full calendar quarter to occur after the 

25 date the Secretary approves a State for participation, 
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1 the participating State shall submit to the Secretary 

2 a report on the use of Federal funding by the partici3 pating State during the previous calendar quarter. 

4 (2) REPORT CONTENTS.—Each report under this 

5 subsection shall— 

6 (A) indicate the total amount of Federal 

7 funding used by the participating State; and 

8 (B) include a certification by the partici9 pating State that— 

10 (i) the information provided in accord11 ance with subparagraph (A) is accurate; 

12 (ii) funds continue to be available and 

13 legally committed to contributions by the 

14 State to, or for the account of, approved 

15 State programs, less any amount that has 

16 been contributed by the State to, or for the 

17 account of, approved State programs subse18 quent to the State being approved for par19 ticipation in the Program; and 

20 (iii) the participating State is imple21 menting its approved State program or pro22 grams in accordance with this title and reg23 ulations issued under section 3010. 

24 (b) ANNUAL REPORT.—Not later than March 31 of 

25 each year, beginning March 31, 2011, each participating 
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1 State shall submit to the Secretary an annual report that 

2 shall include the following information: 

3 (1) The number of borrowers that received new 

4 loans originated under the approved State program 

5 or programs after the State program was approved as 

6 eligible for Federal contributions. 

7 (2) The total amount of such new loans. 

8 (3) Breakdowns by industry type, loan size, an9 nual sales, and number of employees of the borrowers 

10 that received such new loans. 

11 (4) The zip code of each borrower that received 

12 such a new loan. 

13 (5) Such other data as the Secretary, in the Sec14 retary’s sole discretion, may require to carry out the 

15 purposes of the Program. 

16 (c) FORM.—The reports and data filed under sub17 sections (a) and (b) shall be in such form as the Secretary, 

18 in the Secretary’s sole discretion, may require. 

19 (d) TERMINATION OF REPORTING REQUIREMENTS.— 

20 The requirement to submit reports under subsections (a) 

21 and (b) shall terminate for a participating State with the 

22 submission of the completed reports due on the first March 

23 31 to occur after 5 complete 12-month periods after the 

24 State is approved by the Secretary to be a participating 

25 State. 
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1 SEC. 3008. REMEDIES FOR STATE PROGRAM TERMINATION 

2 OR FAILURES. 

3 (a) REMEDIES.— 

4 (1) IN GENERAL.—If any of the events listed in 

5 paragraph (2) occur, the Secretary, in the Secretary’s 

6 discretion, may— 

7 (A) reduce the amount of Federal funds al8 located to the State under the Program; or 

9 (B) terminate any further transfers of allo10 cated amounts that have not yet been transferred 

11 to the State. 

12 (2) CAUSAL EVENTS.—The events referred to in 

13 paragraph (1) are— 

14 (A) termination by a participating State of 

15 its participation in the Program; 

16 (B) failure on the part of a participating 

17 State to submit complete reports under section 

18 3007 on a timely basis; or 

19 (C) noncompliance by the State with the 

20 terms of the allocation agreement between the 

21 Secretary and the State. 

22 (b) DEALLOCATED AMOUNTS TO BE REALLOCATED.— 

23 If, after 13 months, any portion of the amount of Federal 

24 funds allocated to a participating State is deemed by the 

25 Secretary to be no longer allocated to the State after actions 

26 taken by the Secretary under subsection (a)(1), the Sec-
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1 retary shall reallocate that portion among the participating 

2 States, excluding the State whose allocated funds were 

3 deemed to be no longer allocated, as provided in section 

4 3003(b). 

5 SEC. 3009. IMPLEMENTATION AND ADMINISTRATION. 

6 (a) GENERAL AUTHORITIES AND DUTIES.—The Sec7 retary shall— 

8 (1) consult with the Administrator of the Small 

9 Business Administration and the appropriate Federal 

10 banking agencies on the administration of the Pro11 gram; 

12 (2) establish minimum national standards for 

13 approved State programs; 

14 (3) provide technical assistance to States for 

15 starting State programs and generally disseminate 

16 best practices; 

17 (4) manage, administer, and perform necessary 

18 program integrity functions for the Program; and 

19 (5) ensure adequate oversight of the approved 

20 State programs, including oversight of the cash flows, 

21 performance, and compliance of each approved State 

22 program. 

23 (b) APPROPRIATIONS.—There is hereby appropriated 

24 to the Secretary, out of funds in the Treasury not otherwise 

25 appropriated, $1,500,000,000 to carry out the Program, in-
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1 cluding to pay reasonable costs of administering the Pro2 gram. 

3 (c) TERMINATION OF SECRETARY’S PROGRAM ADMIN4 ISTRATION FUNCTIONS.—The authorities and duties of the 

5 Secretary to implement and administer the Program shall 

6 terminate at the end of the 7-year period beginning on the 

7 date of enactment of this Act. 

8 (d) EXPEDITED CONTRACTING.—During the 1-year pe9 riod beginning on the date of enactment of this Act, the 

10 Secretary may enter into contracts without regard to any 

11 other provision of law regarding public contracts, for pur12 poses of carrying out this title. 

13 SEC. 3010. REGULATIONS. 

14 The Secretary, in consultation with the Administrator 

15 of the Small Business Administration, shall issue such regu16 lations and other guidance as the Secretary determines nec17 essary or appropriate to implement this title including to 

18 define terms, to establish compliance and reporting require19 ments, and such other terms and conditions necessary to 

20 carry out the purposes of this title. 

21 SEC. 3011. OVERSIGHT AND AUDITS. 

22 (a) INSPECTOR GENERAL OVERSIGHT.—The Inspector 

23 General of the Department of the Treasury shall conduct, 

24 supervise, and coordinate audits and investigations of the 

25 use of funds made available under the Program. 
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1 (b) GAO AUDIT.—The Comptroller General of the 

2 United States shall perform an annual audit of the Pro3 gram and issue a report to the appropriate committees of 

4 Congress containing the results of such audit. 

5 (c) REQUIRED CERTIFICATION.— 

6 (1) FINANCIAL INSTITUTIONS CERTIFICATION.— 

7 With respect to funds received by a participating 

8 State under the Program, any financial institution 

9 that receives a loan, a loan guarantee, or other finan10 cial assistance using such funds after the date of the 

11 enactment of this Act shall certify that such institu12 tion is in compliance with the requirements of section 

13 103.121 of title 31, Code of Federal Regulations, a 

14 regulation that, at a minimum, requires financial in15 stitutions, as that term is defined in section 5312 

16 (a)(2) and (c)(1)(A) of title 31, United States Code, 

17 to implement reasonable procedures to verify the iden18 tity of any person seeking to open an account, to the 

19 extent reasonable and practicable, maintain records of 

20 the information used to verify the person’s identity, 

21 and determine whether the person appears on any 

22 lists of known or suspected terrorists or terrorist orga23 nizations provided to the financial institution by any 

24 government agency. 
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1 (2) SEX OFFENSE CERTIFICATION.—With respect 

2 to funds received by a participating State under the 

3 Program, any private entity that receives a loan, a 

4 loan guarantee, or other financial assistance using 

5 such funds after the date of the enactment of this Act 

6 shall certify to the participating State that the prin7 cipals of such entity have not been convicted of a sex 

8 offense against a minor (as such terms are defined in 

9 section 111 of the Sex Offender Registration and Noti10 fication Act (42 U.S.C. 16911)). 

11 (d) PROHIBITION ON PORNOGRAPHY.—None of the 

12 funds made available under this title may be used to pay 

13 the salary of any individual engaged in activities related 

14 to the Program who has been officially disciplined for viola15 tions of subpart G of the Standards of Ethical Conduct for 

16 Employees of the Executive Branch for viewing, 

17 downloading, or exchanging pornography, including child 

18 pornography, on a Federal Government computer or while 

19 performing official Federal Government duties. 
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1 TITLE IV—ADDITIONAL SMALL 

2 BUSINESS PROVISIONS 

3 Subtitle A—Small Business Lending 

4 Fund 

5 SEC. 4101. PURPOSE. 

6 The purpose of this subtitle is to address the ongoing 

7 effects of the financial crisis on small businesses by pro8 viding temporary authority to the Secretary of the Treasury 

9 to make capital investments in eligible institutions in order 

10 to increase the availability of credit for small businesses. 

11 SEC. 4102. DEFINITIONS. 

12 For purposes of this subtitle: 

13 (1) APPROPRIATE COMMITTEES OF CONGRESS.— 

14 The term ‘‘appropriate committees of Congress’’ 

15 means— 

16 (A) the Committee on Small Business and 

17 Entrepreneurship, the Committee on Agriculture, 

18 Nutrition, and Forestry, the Committee on 

19 Banking, Housing, and Urban Affairs, the Com20 mittee on Finance, the Committee on the Budget, 

21 and the Committee on Appropriations of the 

22 Senate; and 

23 (B) the Committee on Small Business, the 

24 Committee on Agriculture, the Committee on Fi25 nancial Services, the Committee on Ways and 
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1 Means, the Committee on the Budget, and the 

2 Committee on Appropriations of the House of 

3 Representatives. 

4 (2) APPROPRIATE FEDERAL BANKING AGENCY.— 

5 The term ‘‘appropriate Federal banking agency’’ has 

6 the meaning given such term under section 3(q) of the 

7 Federal Deposit Insurance Act (12 U.S.C. 1813(q)). 

8 (3) BANK HOLDING COMPANY.—The term ‘‘bank 

9 holding company’’ has the meaning given such term 

10 under section 2(a)(1) of the Bank Holding Company 

11 Act of 1956 (12 U.S.C. 1841(2)(a)(1)). 

12 (4) CALL REPORT.—The term ‘‘call report’’ 

13 means— 

14 (A) reports of Condition and Income sub15 mitted to the Office of the Comptroller of the 

16 Currency, the Board of Governors of the Federal 

17 Reserve System, and the Federal Deposit Insur18 ance Corporation; 

19 (B) the Office of Thrift Supervision Thrift 

20 Financial Report; 

21 (C) any report that is designated by the Of22 fice of the Comptroller of the Currency, the 

23 Board of Governors of the Federal Reserve Sys24 tem, the Federal Deposit Insurance Corporation, 

25 or the Office of Thrift Supervision, as applicable, 
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1 as a successor to any report referred to in sub2 paragraph (A) or (B); 

3 (D) reports of Condition and Income as des4 ignated through guidance developed by the Sec5 retary, in consultation with the Director of the 

6 Community Development Financial Institutions 

7 Fund; and 

8 (E) with respect to an eligible institution 

9 for which no report exists that is described under 

10 subparagraph (A), (B), (C), or (D), such other 

11 report or set of information as the Secretary, in 

12 consultation with the Administrator of the Small 

13 Business Administration, may prescribe. 

14 (5) CDCI.—The term ‘‘CDCI’’ means the Com15 munity Development Capital Initiative created by the 

16 Secretary under the Troubled Asset Relief Program 

17 established by the Emergency Economic Stabilization 

18 Act of 2008. 

19 (6) CDCI INVESTMENT.—The term ‘‘CDCI in20 vestment’’ means, with respect to any eligible institu21 tion, the principal amount of any investment made 

22 by the Secretary in such eligible institution under the 

23 CDCI that has not been repaid. 

24 (7) CDFI; COMMUNITY DEVELOPMENT FINANCIAL

25 INSTITUTION.—The terms ‘‘CDFI’’ and ‘‘community 
205 

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1 development financial institution’’ have the meaning 

2 given the term ‘‘community development financial in3 stitution’’ under the Riegle Community Development 

4 and Regulatory Improvement Act of 1994. 

5 (8) CDLF; COMMUNITY DEVELOPMENT LOAN

6 FUND.—The terms ‘‘CDLF’’ and ‘‘community devel7 opment loan fund’’ mean any entity that— 

8 (A) is certified by the Department of the 

9 Treasury as a community development financial 

10 institution loan fund; 

11 (B) is exempt from taxation under the In12 ternal Revenue Code of 1986; and 

13 (C) had assets less than or equal to 

14 $10,000,000,000 as of the end of the fourth quar15 ter of calendar year 2009. 

16 (9) CPP.—The term ‘‘CPP’’ means the Capital 

17 Purchase Program created by the Secretary under the 

18 Troubled Asset Relief Program established by the 

19 Emergency Economic Stabilization Act of 2008. 

20 (10) CPP INVESTMENT.—The term ‘‘CPP invest21 ment’’ means, with respect to any eligible institution, 

22 the principal amount of any investment made by the 

23 Secretary in such eligible institution under the CPP 

24 that has not been repaid. 
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1 (11) ELIGIBLE INSTITUTION.—The term ‘‘eligible 

2 institution’’ means— 

3 (A) any insured depository institution, 

4 which— 

5 (i) is not controlled by a bank holding 

6 company or savings and loan holding com7 pany that is also an eligible institution; 

8 (ii) has total assets of equal to or less 

9 than $10,000,000,000, as reported in the 

10 call report of the insured depository institu11 tion as of the end of the fourth quarter of 

12 calendar year 2009; and 

13 (iii) is not directly or indirectly con14 trolled by any company or other entity that 

15 has total consolidated assets of more than 

16 $10,000,000,000, as so reported; 

17 (B) any bank holding company which has 

18 total consolidated assets of equal to or less than 

19 $10,000,000,000, as reported in the call report of 

20 the bank holding company as of the end of the 

21 fourth quarter of calendar year 2009; 

22 (C) any savings and loan holding company 

23 which has total consolidated assets of equal to or 

24 less than $10,000,000,000, as reported in the call 

25 report of the savings and loan holding company 
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1 as of the end of the fourth quarter of calendar 

2 year 2009; and 

3 (D) any community development financial 

4 institution loan fund which has total assets of 

5 equal to or less than $10,000,000,000, as re6 ported in audited financial statements for the 

7 fiscal year of the community development finan8 cial institution loan fund that ends in calendar 

9 year 2009. 

10 (12) FUND.—The term ‘‘Fund’’ means the Small 

11 Business Lending Fund established under section 

12 4103(a)(1). 

13 (13) INSURED DEPOSITORY INSTITUTION.—The 

14 term ‘‘insured depository institution’’ has the mean15 ing given such term under section 3(c)(2) of the Fed16 eral Deposit Insurance Act (12 U.S.C. 1813(c)(2)). 

17 (14) MINORITY-OWNED AND WOMEN-OWNED

18 BUSINESS.—The terms ‘‘minority-owned business’’ 

19 and ‘‘women-owned business’’ shall have the meaning 

20 given the terms ‘‘minority-owned business’’ and 

21 ‘‘women’s business’’, respectively, under section 

22 21A(r)(4) of the Federal Home Loan Bank Act (12 

23 U.S.C. 1441A(r)(4)). 
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1 (15) PROGRAM.—The term ‘‘Program’’ means the 

2 Small Business Lending Fund Program authorized 

3 under section 4103(a)(2). 

4 (16) SAVINGS AND LOAN HOLDING COMPANY.— 

5 The term ‘‘savings and loan holding company’’ has 

6 the meaning given such term under section 

7 10(a)(1)(D) of the Home Owners’ Loan Act (12 

8 U.S.C. 1467a(a)(1)(D)). 

9 (17) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of the Treasury. 

11 (18) SMALL BUSINESS LENDING.— 

12 (A) IN GENERAL.—The term ‘‘small busi13 ness lending’’ means lending, as defined by and 

14 reported in an eligible institutions’ quarterly call 

15 report, where each loan comprising such lending 

16 is one of the following types: 

17 (i) Commercial and industrial loans. 

18 (ii) Owner-occupied nonfarm, nonresi19 dential real estate loans. 

20 (iii) Loans to finance agricultural pro21 duction and other loans to farmers. 

22 (iv) Loans secured by farmland. 

23 (B) EXCLUSION.—No loan that has an 

24 original amount greater than $10,000,000 or 

25 that goes to a business with more than 
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† HR 5297 EAS 

1 $50,000,000 in revenues shall be included in the 

2 measure. 

3 (C) TREATMENT OF HOLDING COMPANIES.— 

4 In the case of eligible institutions that are bank 

5 holding companies or savings and loan holding 

6 companies having one or more insured deposi7 tory institution subsidiaries, small business lend8 ing shall be measured based on the combined 

9 small business lending reported in the call report 

10 of the insured depository institution subsidiaries. 

11 (19) VETERAN-OWNED BUSINESS.— 

12 (A) The term ‘‘veteran-owned business’’ 

13 means a business— 

14 (i) more than 50 percent of the owner15 ship or control of which is held by 1 or 

16 more veterans; 

17 (ii) more than 50 percent of the net 

18 profit or loss of which accrues to 1 or more 

19 veterans; and 

20 (iii) a significant percentage of senior 

21 management positions of which are held by 

22 veterans. 

23 (B) For purposes of this paragraph, the 

24 term ‘‘veteran’’ has the meaning given such term 

25 in section 101(2) of title 38, United States Code. 
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1 SEC. 4103. SMALL BUSINESS LENDING FUND. 

2 (a) FUND AND PROGRAM.— 

3 (1) FUND ESTABLISHED.—There is established in 

4 the Treasury of the United States a fund to be known 

5 as the ‘‘Small Business Lending Fund’’, which shall 

6 be administered by the Secretary. 

7 (2) PROGRAMS AUTHORIZED.—The Secretary is 

8 authorized to establish the Small Business Lending 

9 Fund Program for using the Fund consistent with 

10 this subtitle. 

11 (b) USE OF FUND.— 

12 (1) IN GENERAL.—Subject to paragraph (2), the 

13 Fund shall be available to the Secretary, without fur14 ther appropriation or fiscal year limitation, for the 

15 costs of purchases (including commitments to pur16 chase), and modifications of such purchases, of pre17 ferred stock and other financial instruments from eli18 gible institutions on such terms and conditions as are 

19 determined by the Secretary in accordance with this 

20 subtitle. For purposes of this paragraph and with re21 spect to an eligible institution, the term ‘‘other finan22 cial instruments’’ shall include only debt instruments 

23 for which such eligible institution is fully liable or eq24 uity equivalent capital of the eligible institution. 

25 Such debt instruments may be subordinated to the 

26 claims of other creditors of the eligible institution. 
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1 (2) MAXIMUM PURCHASE LIMIT.—The aggregate 

2 amount of purchases (and commitments to purchase) 

3 made pursuant to paragraph (1) may not exceed 

4 $30,000,000,000. 

5 (3) PROCEEDS USED TO PAY DOWN PUBLIC

6 DEBT.—All funds received by the Secretary in connec7 tion with purchases made pursuant to paragraph (1), 

8 including interest payments, dividend payments, and 

9 proceeds from the sale of any financial instrument, 

10 shall be paid into the general fund of the Treasury for 

11 reduction of the public debt. 

12 (4) LIMITATION ON PURCHASES FROM CDLFS.— 

13 (A) IN GENERAL.—Not more than 1 percent 

14 of the maximum purchase limit of the Program, 

15 pursuant to paragraph (2), may be used to make 

16 purchases from community development loan 

17 funds. 

18 (B) ELIGIBILITY STANDARDS.—The Sec19 retary, in consultation with the Community De20 velopment Financial Institutions Fund, shall de21 velop eligibility criteria to determine the finan22 cial ability of a CDLF to participate in the Pro23 gram and repay the investment. Such criteria 

24 shall include the following: 
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1 (i) Ratio of net assets to total assets is 

2 at least 20 percent. 

3 (ii) Ratio of loan loss reserves to loans 

4 and leases 90 days or more delinquent (in5 cluding loans sold with full recourse) is at 

6 least 30 percent. 

7 (iii) Positive net income measured on 

8 a 3-year rolling average. 

9 (iv) Operating liquidity ratio of at 

10 least 1.0 for the 4 most recent quarters and 

11 for one or both of the two preceding years. 

12 (v) Ratio of loans and leases 90 days 

13 or more delinquent (including loans sold 

14 with full recourse) to total equity plus loan 

15 loss reserves is less than 40 percent. 

16 (C) REQUIREMENT TO SUBMIT AUDITED FI17 NANCIAL STATEMENTS.—CDLFs participating in 

18 the Program shall submit audited financial 

19 statements to the Secretary, have a clean audit 

20 opinion, and have at least 3 years of operating 

21 experience. 

22 (c) CREDITS TO THE FUND.—There shall be credited 

23 to the Fund amounts made available pursuant to section 

24 4108, to the extent provided by appropriations Acts. 

25 (d) TERMS.— 
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1 (1) APPLICATION.— 

2 (A) INSTITUTIONS WITH ASSETS OF

3 $1,000,000,000 OR LESS.—Eligible institutions 

4 having total assets equal to or less than 

5 $1,000,000,000, as reported in a call report as of 

6 the end of the fourth quarter of calendar year 

7 2009, may apply to receive a capital investment 

8 from the Fund in an amount not exceeding 5 

9 percent of risk-weighted assets, as reported in the 

10 call report immediately preceding the date of ap11 plication, less the amount of any CDCI invest12 ment and any CPP investment. 

13 (B) INSTITUTIONS WITH ASSETS OF MORE

14 THAN $1,000,000,000 AND LESS THAN OR EQUAL TO

15 $10,000,000,000.—Eligible institutions having total 

16 assets of more than $1,000,000,000 but less than 

17 $10,000,000,000, as of the end of the fourth quar18 ter of calendar year 2009, may apply to receive 

19 a capital investment from the Fund in an 

20 amount not exceeding 3 percent of risk-weighted 

21 assets, as reported in the call report immediately 

22 preceding the date of application, less the 

23 amount of any CDCI investment and any CPP 

24 investment. 
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1 (C) TREATMENT OF HOLDING COMPANIES.— 

2 In the case of an eligible institution that is a 

3 bank holding company or a savings and loan 

4 holding company having one or more insured de5 pository institution subsidiaries, total assets 

6 shall be measured based on the combined total 

7 assets reported in the call report of the insured 

8 depository institution subsidiaries as of the end 

9 of the fourth quarter of calendar year 2009 and 

10 risk-weighted assets shall be measured based on 

11 the combined risk-weighted assets of the insured 

12 depository institution subsidiaries as reported in 

13 the call report immediately preceding the date of 

14 application. 

15 (D) TREATMENT OF APPLICANTS THAT ARE

16 INSTITUTIONS CONTROLLED BY HOLDING COMPA17 NIES.—If an eligible institution that applies to 

18 receive a capital investment under the Program 

19 is under the control of a bank holding company 

20 or a savings and loan holding company, then the 

21 Secretary may use the Fund to purchase pre22 ferred stock or other financial instruments from 

23 the top-tier bank holding company or savings 

24 and loan holding company of such eligible insti25 tution, as applicable. For purposes of this sub-
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1 paragraph, the term ‘‘control’’ with respect to a 

2 bank holding company shall have the same 

3 meaning as in section 2(a)(2) of the Bank Hold4 ing Company Act of 1956 (12 U.S.C. 

5 1841(2)(a)(2)). For purposes of this subpara6 graph, the term ‘‘control’’ with respect to a sav7 ings and loan holding company shall have the 

8 same meaning as in 10(a)(2) of the Home Own9 ers’ Loan Act (12 U.S.C. 1467a(a)(2)). 

10 (E) REQUIREMENT TO PROVIDE A SMALL

11 BUSINESS LENDING PLAN.—At the time that an 

12 applicant submits an application to the Sec13 retary for a capital investment under the Pro14 gram, the applicant shall deliver to the appro15 priate Federal banking agency, and, for appli16 cants that are State-chartered banks, to the ap17 propriate State banking regulator, a small busi18 ness lending plan describing how the applicant’s 

19 business strategy and operating goals will allow 

20 it to address the needs of small businesses in the 

21 areas it serves, as well as a plan to provide lin22 guistically and culturally appropriate outreach, 

23 where appropriate. In the case of eligible institu24 tions that are community development loan 

25 funds, this plan shall be submitted to the Sec-
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† HR 5297 EAS 

1 retary. This plan shall be confidential super2 visory information. 

3 (F) TREATMENT OF APPLICANTS THAT ARE

4 COMMUNITY DEVELOPMENT LOAN FUNDS.—Eligi5 ble institutions that are community development 

6 loan funds may apply to receive a capital invest7 ment from the Fund in an amount not exceeding 

8 5 percent of total assets, as reported in the au9 dited financial statements for the fiscal year of 

10 the eligible institution that ends in calendar 

11 year 2009. 

12 (2) CONSULTATION WITH REGULATORS.—For 

13 each eligible institution that applies to receive a cap14 ital investment under the Program, the Secretary 

15 shall— 

16 (A) consult with the appropriate Federal 

17 banking agency or, in the case of an eligible in18 stitution that is a nondepository community de19 velopment financial institution, the Community 

20 Development Financial Institution Fund, for the 

21 eligible institution, to determine whether the eli22 gible institution may receive such capital invest23 ment; 

24 (B) in the case of an eligible institution 

25 that is a State-chartered bank, consider any 
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† HR 5297 EAS 

1 views received from the State banking regulator 

2 of the State of the eligible institution regarding 

3 the financial condition of the eligible institution; 

4 and 

5 (C) in the case of a community development 

6 financial institution loan fund, consult with the 

7 Community Development Financial Institution 

8 Fund. 

9 (3) CONSIDERATION OF MATCHED PRIVATE IN10 VESTMENTS.— 

11 (A) IN GENERAL.—For an eligible institu12 tion that applies to receive a capital investment 

13 under the Program, if the entity to be consulted 

14 under paragraph (2) would not otherwise rec15 ommend the eligible institution to receive the 

16 capital investment, the Secretary, in consulta17 tion with the entity to be so consulted, may con18 sider whether the entity to be consulted would 

19 recommend the eligible institution to receive a 

20 capital investment based on the financial condi21 tion of the institution if the conditions in sub22 paragraph (B) are satisfied. 

23 (B) CONDITIONS.—The conditions referred 

24 to in subparagraph (A) are as follows: 
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† HR 5297 EAS 

1 (i) CAPITAL SOURCES.—The eligible 

2 institution shall receive capital both under 

3 the Program and from private, nongovern4 ment investors. 

5 (ii) AMOUNT OF CAPITAL.—The 

6 amount of capital to be received under the 

7 Program shall not exceed 3 percent of risk8 weighted assets, as reported in the call re9 port immediately preceding the date of ap10 plication, less the amount of any CDCI in11 vestment and any CPP investment. 

12 (iii) TERMS.—The amount of capital 

13 to be received from private, nongovernment 

14 investors shall be— 

15 (I) equal to or greater than 100 

16 percent of the capital to be received 

17 under the Program; and 

18 (II) subordinate to the capital in19 vestment made by the Secretary under 

20 the Program. 

21 (4) INELIGIBILITY OF INSTITUTIONS ON FDIC

22 PROBLEM BANK LIST.— 

23 (A) IN GENERAL.—An eligible institution 

24 may not receive any capital investment under 

25 the Program, if— 
219 

† HR 5297 EAS 

1 (i) such institution is on the FDIC 

2 problem bank list; or 

3 (ii) such institution has been removed 

4 from the FDIC problem bank list for less 

5 than 90 days. 

6 (B) CONSTRUCTION.—Nothing in subpara7 graph (A) shall be construed as limiting the dis8 cretion of the Secretary to deny the application 

9 of an eligible institution that is not on the FDIC 

10 problem bank list. 

11 (C) FDIC PROBLEM BANK LIST DEFINED.— 

12 For purposes of this paragraph, the term ‘‘FDIC 

13 problem bank list’’ means the list of depository 

14 institutions having a current rating of 4 or 5 

15 under the Uniform Financial Institutions Rat16 ing System, or such other list designated by the 

17 Federal Deposit Insurance Corporation. 

18 (5) INCENTIVES TO LEND.— 

19 (A) REQUIREMENTS ON PREFERRED STOCK

20 AND OTHER FINANCIAL INSTRUMENTS.—Any pre21 ferred stock or other financial instrument issued 

22 to Treasury by an eligible institution receiving 

23 a capital investment under the Program shall 

24 provide that— 
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† HR 5297 EAS 

1 (i) the rate at which dividends or in2 terest are payable shall be 5 percent per 

3 annum initially; 

4 (ii) within the first 2 years after the 

5 date of the capital investment under the 

6 Program, the rate may be adjusted based on 

7 the amount of an eligible institution’s small 

8 business lending. Changes in the amount of 

9 small business lending shall be measured 

10 against the average amount of small busi11 ness lending reported by the eligible institu12 tion in its call reports for the 4 full quar13 ters immediately preceding the date of en14 actment of this Act, minus adjustments 

15 from each quarterly balance in respect of— 

16 (I) net loan charge offs with re17 spect to small business lending; and 

18 (II) gains realized by the eligible 

19 institution resulting from mergers, ac20 quisitions or purchases of loans after 

21 origination and syndication; which ad22 justments shall be determined in ac23 cordance with guidance promulgated 

24 by the Secretary; and 
221 

† HR 5297 EAS 

1 (iii) during any calendar quarter dur2 ing the initial 2-year period referred to in 

3 clause (ii), an institution’s rate shall be ad4 justed to reflect the following schedule, based 

5 on that institution’s change in the amount 

6 of small business lending relative to the 

7 baseline— 

8 (I) if the amount of small business 

9 lending has increased by less than 2.5 

10 percent, the dividend or interest rate 

11 shall be 5 percent; 

12 (II) if the amount of small busi13 ness lending has increased by 2.5 per14 cent or greater, but by less than 5.0 

15 percent, the dividend or interest rate 

16 shall be 4 percent; 

17 (III) if the amount of small busi18 ness lending has increased by 5.0 per19 cent or greater, but by less than 7.5 

20 percent, the dividend or interest rate 

21 shall be 3 percent; 

22 (IV) if the amount of small busi23 ness lending has increased by 7.5 per24 cent or greater, and but by less than 
222 

† HR 5297 EAS 

1 10.0 percent, the dividend or interest 

2 rate shall be 2 percent; or 

3 (V) if the amount of small busi4 ness lending has increased by 10 per5 cent or greater, the dividend or interest 

6 rate shall be 1 percent. 

7 (B) BASIS OF INITIAL RATE.—The initial 

8 dividend or interest rate shall be based on call 

9 report data published in the quarter immediately 

10 preceding the date of the capital investment 

11 under the Program. 

12 (C) TIMING OF RATE ADJUSTMENTS.—Any 

13 rate adjustment shall occur in the calendar quar14 ter following the publication of call report data, 

15 such that the rate based on call report data from 

16 any one calendar quarter, which is published in 

17 the first following calendar quarter, shall be ad18 justed in that first following calendar quarter 

19 and payable in the second following quarter. 

20 (D) RATE FOLLOWING INITIAL 2-YEAR PE21 RIOD.—Generally, the rate based on call report 

22 data from the eighth calendar quarter after the 

23 date of the capital investment under the Pro24 gram shall be payable until the expiration of the 

41 25 ⁄2-year period that begins on the date of the in-
223 

† HR 5297 EAS 

1 vestment. In the case where the amount of small 

2 business lending has remained the same or de3 creased relative to the institution’s baseline in 

4 the eighth quarter after the date of the capital 

5 investment under the Program, the rate shall be 

7 percent until the expiration of the 41 6 ⁄2-year pe7 riod that begins on the date of the investment. 

(E) RATE FOLLOWING INITIAL 41 8 ⁄2 -YEAR

9 PERIOD.—The dividend or interest rate paid on 

10 any preferred stock or other financial instrument 

11 issued by an eligible institution that receives a 

12 capital investment under the Program shall increase to 9 percent at the end of the 41 13 ⁄2-year pe14 riod that begins on the date of the capital invest15 ment under the Program. 

16 (F) LIMITATION ON RATE REDUCTIONS

17 WITH RESPECT TO CERTAIN AMOUNT.—The re18 duction in the dividend or interest rate payable 

19 to Treasury by any eligible institution shall be 

20 limited such that the rate reduction shall not 

21 apply to a dollar amount of the investment made 

22 by Treasury that is greater than the dollar 

23 amount increase in the amount of small business 

24 lending realized under this program. The Sec25 retary may issue guidelines that will apply to 
224 

† HR 5297 EAS 

1 new capital investments limiting the amount of 

2 capital available to eligible institutions con3 sistent with this limitation. 

4 (G) RATE ADJUSTMENTS FOR S CORPORA5 TION.—Before making a capital investment in 

6 an eligible institution that is an S corporation 

7 or a corporation organized on a mutual basis, 

8 the Secretary may adjust the dividend or interest 

9 rate on the financial instrument to be issued to 

10 the Secretary, from the dividend or interest rate 

11 that would apply under subparagraphs (A) 

12 through (F), to take into account any differential 

13 tax treatment of securities issued by such eligible 

14 institution. For purpose of this subparagraph, 

15 the term ‘‘S corporation’’ has the same meaning 

16 as in section 1361(a) of the Internal Revenue 

17 Code of 1986. 

18 (H) REPAYMENT DEADLINE.—The capital 

19 investment received by an eligible institution 

20 under the Program shall be evidenced by pre21 ferred stock or other financial instrument that— 

22 (i) includes, as a term and condition, 

23 that the capital investment will— 

24 (I) be repaid not later than the 

25 end of the 10-year period beginning on 
225 

† HR 5297 EAS 

1 the date of the capital investment 

2 under the Program; or 

3 (II) at the end of such 10-year pe4 riod, be subject to such additional 

5 terms as the Secretary shall prescribe, 

6 which shall include a requirement that 

7 the stock or instrument shall carry the 

8 highest dividend or interest rate pay9 able; and 

10 (ii) provides that the term and condi11 tion described under clause (i) shall not 

12 apply if the application of that term and 

13 condition would adversely affect the capital 

14 treatment of the stock or financial instru15 ment under current or successor applicable 

16 capital provisions compared to a capital in17 strument with identical terms other than 

18 the term and condition described under 

19 clause (i). 

20 (I) REQUIREMENTS ON FINANCIAL INSTRU21 MENTS ISSUED BY A COMMUNITY DEVELOPMENT

22 FINANCIAL INSTITUTION LOAN FUND.—Any eq23 uity equivalent capital issued to the Treasury by 

24 a community development loan fund receiving a 

25 capital investment under the Program shall pro-
226 

† HR 5297 EAS 

1 vide that the rate at which interest is payable 

2 shall be 2 percent per annum for 8 years. After 

3 8 years, the rate at which interest is payable 

4 shall be 9 percent. 

5 (6) ADDITIONAL INCENTIVES TO REPAY.—The 

6 Secretary may, by regulation or guidance issued 

7 under section 4104(9), establish repayment incentives 

8 in addition to the incentive in paragraph (5)(E) that 

9 will apply to new capital investments in a manner 

10 that the Secretary determines to be consistent with the 

11 purposes of this subtitle. 

12 (7) CAPITAL PURCHASE PROGRAM REFINANCE.— 

13 (A) IN GENERAL.—The Secretary shall, in a 

14 manner that the Secretary determines to be con15 sistent with the purposes of this subtitle, issue 

16 regulations and other guidance to permit eligible 

17 institutions to refinance securities issued to 

18 Treasury under the CDCI and the CPP for secu19 rities to be issued under the Program. 

20 (B) PROHIBITION ON PARTICIPATION BY

21 NON-PAYING CPP PARTICIPANTS.—Subparagraph 

22 (A) shall not apply to any eligible institution 

23 that has missed more than one dividend pay24 ment due under the CPP. For purposes of this 

25 subparagraph, a CPP dividend payment that is 
227 

† HR 5297 EAS 

1 submitted within 60 days of the due date of such 

2 payment shall not be considered a missed divi3 dend payment. 

4 (8) OUTREACH TO MINORITIES, WOMEN, AND

5 VETERANS.—The Secretary shall require eligible insti6 tutions receiving capital investments under the Pro7 gram to provide linguistically and culturally appro8 priate outreach and advertising in the applicant pool 

9 describing the availability and application process of 

10 receiving loans from the eligible institution that are 

11 made possible by the Program through the use of 

12 print, radio, television or electronic media outlets 

13 which target organizations, trade associations, and 

14 individuals that— 

15 (A) represent or work within or are mem16 bers of minority communities; 

17 (B) represent or work with or are women; 

18 and 

19 (C) represent or work with or are veterans. 

20 (9) ADDITIONAL TERMS.—The Secretary may, by 

21 regulation or guidance issued under section 4104(9), 

22 make modifications that will apply to new capital in23 vestments in order to manage risks associated with 

24 the administration of the Fund in a manner con25 sistent with the purposes of this subtitle. 
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1 (10) MINIMUM UNDERWRITING STANDARDS.—The 

2 appropriate Federal banking agency for an eligible 

3 institution that receives funds under the Program 

4 shall within 60 days issue guidance regarding pru5 dent underwriting standards that must be used for 

6 loans made by the eligible institution using such 

7 funds. 

8 SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY. 

9 The Secretary may take such actions as the Secretary 

10 deems necessary to carry out the authorities in this subtitle, 

11 including, without limitation, the following: 

12 (1) The Secretary may use the services of any 

13 agency or instrumentality of the United States or 

14 component thereof on a reimbursable basis, and any 

15 such agency or instrumentality or component thereof 

16 is authorized to provide services as requested by the 

17 Secretary using all authorities vested in or delegated 

18 to that agency, instrumentality, or component. 

19 (2) The Secretary may enter into contracts, in20 cluding contracts for services authorized by section 

21 3109 of title 5, United States Code. 

22 (3) The Secretary may designate any bank, sav23 ings association, trust company, security broker or 

24 dealer, asset manager, or investment adviser as a fi25 nancial agent of the Federal Government and such in-
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1 stitution shall perform all such reasonable duties re2 lated to this subtitle as financial agent of the Federal 

3 Government as may be required. The Secretary shall 

4 have authority to amend existing agreements with fi5 nancial agents, entered into during the 2-year period 

6 before the date of enactment of this Act, to perform 

7 reasonable duties related to this subtitle. 

8 (4) The Secretary may exercise any rights re9 ceived in connection with any preferred stock or other 

10 financial instruments or assets purchased or acquired 

11 pursuant to the authorities granted under this sub12 title. 

13 (5) Subject to section 4103(b)(3), the Secretary 

14 may manage any assets purchased under this subtitle, 

15 including revenues and portfolio risks therefrom. 

16 (6) The Secretary may sell, dispose of, transfer, 

17 exchange or enter into securities loans, repurchase 

18 transactions, or other financial transactions in regard 

19 to, any preferred stock or other financial instrument 

20 or asset purchased or acquired under this subtitle, 

21 upon terms and conditions and at a price determined 

22 by the Secretary. 

23 (7) The Secretary may manage or prohibit con24 flicts of interest that may arise in connection with the 
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1 administration and execution of the authorities pro2 vided under this subtitle. 

3 (8) The Secretary may establish and use vehicles, 

4 subject to supervision by the Secretary, to purchase, 

5 hold, and sell preferred stock or other financial in6 struments and issue obligations. 

7 (9) The Secretary may, in consultation with the 

8 Administrator of the Small Business Administration, 

9 issue such regulations and other guidance as may be 

10 necessary or appropriate to define terms or carry out 

11 the authorities or purposes of this subtitle. 

12 SEC. 4105. CONSIDERATIONS. 

13 In exercising the authorities granted in this subtitle, 

14 the Secretary shall take into consideration— 

15 (1) increasing the availability of credit for small 

16 businesses; 

17 (2) providing funding to minority-owned eligible 

18 institutions and other eligible institutions that serve 

19 small businesses that are minority-, veteran-, and 

20 women-owned and that also serve low- and moderate21 income, minority, and other underserved or rural 

22 communities; 

23 (3) protecting and increasing American jobs; 
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1 (4) increasing the opportunity for small business 

2 development in areas with high unemployment rates 

3 that exceed the national average; 

4 (5) ensuring that all eligible institutions may 

5 apply to participate in the program established under 

6 this subtitle, without discrimination based on geog7 raphy; 

8 (6) providing transparency with respect to use of 

9 funds provided under this subtitle; 

10 (7) minimizing the cost to taxpayers of exer11 cising the authorities; 

12 (8) promoting and engaging in financial edu13 cation to would-be borrowers; and 

14 (9) providing funding to eligible institutions 

15 that serve small businesses directly affected by the dis16 charge of oil arising from the explosion on and sink17 ing of the mobile offshore drilling unit Deepwater Ho18 rizon and small businesses in communities that have 

19 suffered negative economic effects as a result of that 

20 discharge with particular consideration to States 

21 along the coast of the Gulf of Mexico. 

22 SEC. 4106. REPORTS. 

23 The Secretary shall provide to the appropriate com24 mittees of Congress— 
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1 (1) within 7 days of the end of each month com2 mencing with the first month in which transactions 

3 are made under the Program, a written report de4 scribing all of the transactions made during the re5 porting period pursuant to the authorities granted 

6 under this subtitle; 

7 (2) after the end of March and the end of Sep8 tember, commencing September 30, 2010, a written 

9 report on all projected costs and liabilities, all oper10 ating expenses, including compensation for financial 

11 agents, and all transactions made by the Fund, which 

12 shall include participating institutions and amounts 

13 each institution has received under the Program; and 

14 (3) within 7 days of the end of each calendar 

15 quarter commencing with the first calendar quarter 

16 in which transactions are made under the Program, 

17 a written report detailing how eligible institutions 

18 participating in the Program have used the funds 

19 such institutions received under the Program. 

20 SEC. 4107. OVERSIGHT AND AUDITS. 

21 (a) INSPECTOR GENERAL OVERSIGHT.—The Inspector 

22 General of the Department of the Treasury shall conduct, 

23 supervise, and coordinate audits and investigations of the 

24 Program through the Office of Small Business Lending 

25 Fund Program Oversight established under subsection (b). 
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1 (b) OFFICE OF SMALL BUSINESS LENDING FUND PRO2 GRAM OVERSIGHT.— 

3 (1) ESTABLISHMENT.—There is hereby estab4 lished within the Office of the Inspector General of the 

5 Department of the Treasury a new office to be named 

6 the ‘‘Office of Small Business Lending Fund Program 

7 Oversight’’ to provide oversight of the Program. 

8 (2) LEADERSHIP.—The Inspector General shall 

9 appoint a Special Deputy Inspector General for 

10 SBLF Program Oversight to lead the Office, with 

11 commensurate staff, who shall report directly to the 

12 Inspector General and who shall be responsible for the 

13 performance of all auditing and investigative activi14 ties relating to the Program. 

15 (3) REPORTING.— 

16 (A) IN GENERAL.—The Inspector General 

17 shall issue a report no less than two times a year 

18 to the Congress and the Secretary devoted to the 

19 oversight provided by the Office, including any 

20 recommendations for improvements to the Pro21 gram. 

22 (B) RECOMMENDATIONS.—With respect to 

23 any deficiencies identified in a report under sub24 paragraph (A), the Secretary shall either— 
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1 (i) take actions to address such defi2 ciencies; or 

3 (ii) certify to the appropriate commit4 tees of Congress that no action is necessary 

5 or appropriate. 

6 (4) COORDINATION.—The Inspector General, in 

7 maximizing the effectiveness of the Office, shall work 

8 with other Offices of Inspector General, as appro9 priate, to minimize duplication of effort and ensure 

10 comprehensive oversight of the Program. 

11 (5) TERMINATION.—The Office shall terminate at 

12 the end of the 6-month period beginning on the date 

13 on which all capital investments are repaid under the 

14 Program or the date on which the Secretary deter15 mines that any remaining capital investments will 

16 not be repaid. 

17 (6) DEFINITIONS.—For purposes of this sub18 section: 

19 (A) OFFICE.—The term ‘‘Office’’ means the 

20 Office of Small Business Lending Fund Program 

21 Oversight established under paragraph (1). 

22 (B) INSPECTOR GENERAL.—The term ‘‘In23 spector General’’ means the Inspector General of 

24 the Department of the Treasury. 
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1 (c) GAO AUDIT.—The Comptroller General of the 

2 United States shall perform an annual audit of the Pro3 gram and issue a report to the appropriate committees of 

4 Congress containing the results of such audit. 

5 (d) REQUIRED CERTIFICATIONS.— 

6 (1) ELIGIBLE INSTITUTION CERTIFICATION.— 

7 Each eligible institution that participates in the Pro8 gram must certify that such institution is in compli9 ance with the requirements of section 103.121 of title 

10 31, Code of Federal Regulations, a regulation that, at 

11 a minimum, requires financial institutions, as that 

12 term is defined in 31 U.S.C. 5312(a)(2) and 

13 (c)(1)(A), to implement reasonable procedures to 

14 verify the identity of any person seeking to open an 

15 account, to the extent reasonable and practicable, 

16 maintain records of the information used to verify the 

17 person’s identity, and determine whether the person 

18 appears on any lists of known or suspected terrorists 

19 or terrorist organizations provided to the financial 

20 institution by any government agency. 

21 (2) LOAN RECIPIENTS.—With respect to funds 

22 received by an eligible institution under the Program, 

23 any business receiving a loan from the eligible insti24 tution using such funds after the date of the enact25 ment of this Act shall certify to such eligible institu-
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1 tion that the principals of such business have not been 

2 convicted of a sex offense against a minor (as such 

3 terms are defined in section 111 of the Sex Offender 

4 Registration and Notification Act (42 U.S.C. 16911)). 

5 (e) PROHIBITION ON PORNOGRAPHY.—None of the 

6 funds made available under this subtitle may be used to 

7 pay the salary of any individual engaged in activities re8 lated to the Program who has been officially disciplined for 

9 violations of subpart G of the Standards of Ethical Conduct 

10 for Employees of the Executive Branch for viewing, 

11 downloading, or exchanging pornography, including child 

12 pornography, on a Federal Government computer or while 

13 performing official Federal Government duties. 

14 SEC. 4108. CREDIT REFORM; FUNDING. 

15 (a) CREDIT REFORM.—The cost of purchases of pre16 ferred stock and other financial instruments made as cap17 ital investments under this subtitle shall be determined as 

18 provided under the Federal Credit Reform Act of 1990 (2 

19 U.S.C. 661 et seq.). 

20 (b) FUNDS MADE AVAILABLE.—There are hereby ap21 propriated, out of funds in the Treasury not otherwise ap22 propriated, such sums as may be necessary to pay the costs 

23 of $30,000,000,000 of capital investments in eligible institu24 tions, including the costs of modifying such investments, 
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1 and reasonable costs of administering the program of mak2 ing, holding, managing, and selling the capital investments. 

3 SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORI4 TIES. 

5 (a) TERMINATION OF INVESTMENT AUTHORITY.—The 

6 authority to make capital investments in eligible institu7 tions, including commitments to purchase preferred stock 

8 or other instruments, provided under this subtitle shall ter9 minate 1 year after the date of enactment of this Act. 

10 (b) CONTINUATION OF OTHER AUTHORITIES.—The 

11 authorities of the Secretary under section 4104 shall not 

12 be limited by the termination date in subsection (a). 

13 SEC. 4110. PRESERVATION OF AUTHORITY. 

14 Nothing in this subtitle may be construed to limit the 

15 authority of the Secretary under any other provision of law. 

16 SEC. 4111. ASSURANCES. 

17 (a) SMALL BUSINESS LENDING FUND SEPARATE

18 FROM TARP.—The Small Business Lending Fund Pro19 gram is established as separate and distinct from the Trou20 bled Asset Relief Program established by the Emergency 

21 Economic Stabilization Act of 2008. An institution shall 

22 not, by virtue of a capital investment under the Small Busi23 ness Lending Fund Program, be considered a recipient of 

24 the Troubled Asset Relief Program. 
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1 (b) CHANGE IN LAW.—If, after a capital investment 

2 has been made in an eligible institution under the Program, 

3 there is a change in law that modifies the terms of the in4 vestment or program in a materially adverse respect for the 

5 eligible institution, the eligible institution may, after con6 sultation with the appropriate Federal banking agency for 

7 the eligible institution, repay the investment without im8 pediment. 

9 SEC. 4112. STUDY AND REPORT WITH RESPECT TO WOMEN10 OWNED, VETERAN-OWNED, AND MINORITY11 OWNED BUSINESSES. 

12 (a) STUDY.—The Secretary shall conduct a study of 

13 the impact of the Program on women-owned businesses, vet14 eran-owned businesses, and minority-owned businesses. 

15 (b) REPORT.—Not later than one year after the date 

16 of enactment of this Act, the Secretary shall submit to Con17 gress a report on the results of the study conducted pursuant 

18 to subsection (a). To the extent possible, the Secretary shall 

19 disaggregate the results of such study by ethnic group and 

20 gender. 

21 (c) INFORMATION PROVIDED TO THE SECRETARY.— 

22 Eligible institutions that participate in the Program shall 

23 provide the Secretary with such information as the Sec24 retary may require to carry out the study required by this 

25 section. 
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1 SEC. 4113. SENSE OF CONGRESS. 

2 It is the sense of Congress that the Federal Deposit In3 surance Corporation and other bank regulators are sending 

4 mixed messages to banks regarding regulatory capital re5 quirements and lending standards, which is a contributing 

6 cause of decreased small business lending and increased reg7 ulatory uncertainty at community banks. 

8 Subtitle B—Other Provisions 

9 PART I—SMALL BUSINESS EXPORT PROMOTION 

10 INITIATIVES 

11 SEC. 4221. SHORT TITLE. 

12 This part may be cited as the ‘‘Export Promotion Act 

13 of 2010’’. 

14 SEC. 4222. GLOBAL BUSINESS DEVELOPMENT AND PRO15 MOTION ACTIVITIES OF THE DEPARTMENT OF 

16 COMMERCE. 

17 (a) INCREASE IN EMPLOYEES WITH RESPONSIBILITY

18 FOR GLOBAL BUSINESS DEVELOPMENT AND PROMOTION

19 ACTIVITIES.— 

20 (1) IN GENERAL.—During the 24-month period 

21 beginning on the date of the enactment of this Act, the 

22 Secretary of Commerce shall increase the number of 

23 full-time departmental employees whose primary re24 sponsibilities involve promoting or facilitating par25 ticipation by United States businesses in the global 

26 marketplace and facilitating the entry into, or expan-
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1 sion of, such participation by United States busi2 nesses. In carrying out this subsection, the Secretary 

3 shall ensure that— 

4 (A) the cohort of such employees is increased 

5 by not less than 80 persons; and 

6 (B) a substantial portion of the increased 

7 cohort is stationed outside the United States. 

8 (2) ENHANCED FOCUS ON UNITED STATES

9 SMALL- AND MEDIUM-SIZED BUSINESSES.—In car10 rying out this subsection, the Secretary shall take 

11 such action as may be necessary to ensure that the ac12 tivities of the Department of Commerce relating to 

13 promoting and facilitating participation by United 

14 States businesses in the global marketplace include 

15 promoting and facilitating such participation by 

16 small and medium-sized businesses in the United 

17 States. 

18 (3) AUTHORIZATION OF APPROPRIATIONS.— 

19 There are authorized to be appropriated to the Sec20 retary for each of the fiscal years 2011 and 2012 such 

21 sums as may be necessary to carry out this section. 

22 (b) ADDITIONAL FUNDING FOR GLOBAL BUSINESS DE23 VELOPMENT AND PROMOTION ACTIVITIES OF THE DEPART24 MENT OF COMMERCE.— 
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1 (1) IN GENERAL.—There are authorized to be ap2 propriated to the Secretary of Commerce for the pe3 riod beginning on the date of the enactment of this 

4 Act and ending 18 months thereafter, $30,000,000 to 

5 promote or facilitate participation by United States 

6 businesses in the global marketplace and facilitating 

7 the entry into, or expansion of, such participation by 

8 United States businesses. 

9 (2) REQUIREMENTS.—In obligating and expend10 ing the funds authorized to be appropriated by para11 graph (1), the Secretary of Commerce shall give pref12 erence to activities that— 

13 (A) assist small- and medium-sized busi14 nesses in the United States; and 

15 (B) the Secretary determines will create or 

16 sustain the greatest number of jobs in the United 

17 States and obtain the maximum return on in18 vestment. 

19 SEC. 4223. ADDITIONAL FUNDING TO IMPROVE ACCESS TO 

20 GLOBAL MARKETS FOR RURAL BUSINESSES. 

21 (a) IN GENERAL.—There are authorized to be appro22 priated to the Secretary of Commerce $5,000,000 for each 

23 of the fiscal years 2011 and 2012 for improving access to 

24 the global marketplace for goods and services provided by 

25 rural businesses in the United States. 
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1 (b) REQUIREMENTS.—In obligating and expending the 

2 funds authorized to be appropriated by subsection (a), the 

3 Secretary of Commerce shall give preference to activities 

4 that— 

5 (1) assist small- and medium-sized businesses in 

6 the United States; and 

7 (2) the Secretary determines will create or sus8 tain the greatest number of jobs in the United States 

9 and obtain the maximum return on investment. 

10 SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH 

11 PROGRAM. 

12 (a) IN GENERAL.—There are authorized to be appro13 priated to the Secretary of Commerce $11,000,000 for the 

14 period beginning on the date of the enactment of this Act 

15 and ending 18 months thereafter, to expand ExporTech, a 

16 joint program of the Hollings Manufacturing Partnership 

17 Program and the Export Assistance Centers of the Depart18 ment of Commerce. 

19 (b) REQUIREMENTS.—In obligating and expending the 

20 funds authorized to be appropriated by subsection (a), the 

21 Secretary of Commerce shall give preference to activities 

22 that— 

23 (1) assist small- and medium-sized businesses in 

24 the United States; and 
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1 (2) the Secretary determines will create or sus2 tain the greatest number of jobs in the United States 

3 and obtain the maximum return on investment. 

4 SEC. 4225. ADDITIONAL FUNDING FOR THE MARKET DEVEL5 OPMENT COOPERATOR PROGRAM OF THE DE6 PARTMENT OF COMMERCE. 

7 (a) IN GENERAL.—There are authorized to be appro8 priated to the Secretary of Commerce for the period begin9 ning on the date of the enactment of this Act and ending 

10 18 months thereafter, $15,000,000 for the Manufacturing 

11 and Services unit of the International Trade Administra12 tion— 

13 (1) to establish public-private partnerships under 

14 the Market Development Cooperator Program of the 

15 International Trade Administration; and 

16 (2) to underwrite a portion of the start-up costs 

17 for new projects carried out under that Program to 

18 strengthen the competitiveness and market share of 

19 United States industry, not to exceed, for each such 

20 project, the lesser of— 

(A) 1 21 ⁄3 of the total start-up costs for the 

22 project; or 

23 (B) $500,000. 

24 (b) REQUIREMENTS.—In obligating and expending the 

25 funds authorized to be appropriated by subsection (a), the 
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1 Secretary of Commerce shall give preference to activities 

2 that— 

3 (1) assist small- and medium-sized businesses in 

4 the United States; and 

5 (2) the Secretary determines will create or sus6 tain the greatest number of jobs in the United States 

7 and obtain the maximum return on investment. 

8 SEC. 4226. HOLLINGS MANUFACTURING PARTNERSHIP PRO9 GRAM; TECHNOLOGY INNOVATION PROGRAM. 

10 (a) HOLLINGS MANUFACTURING PARTNERSHIP PRO11 GRAM.—Section 25(f) of the National Institute of Standards 

12 and Technology Act (15 U.S.C. 278k(f)) is amended by add13 ing at the end the following: 

14 ‘‘(7) GLOBAL MARKETPLACE PROJECTS.—In 

15 making awards under this subsection, the Director, in 

16 consultation with the Manufacturing Extension Part17 nership Advisory Board and the Secretary of Com18 merce, may— 

19 ‘‘(A) take into consideration whether an ap20 plication has significant potential for enhancing 

21 the competitiveness of small and medium-sized 

22 United States manufacturers in the global mar23 ketplace; and 

24 ‘‘(B) give a preference to applications for 

25 such projects to the extent the Director deems ap-
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1 propriate, taking into account the broader pur2 poses of this subsection.’’. 

3 (b) TECHNOLOGY INNOVATION PROGRAM.—In award4 ing grants, cooperative agreements, or contracts under sec5 tion 28 of the National Institute of Standards and Tech6 nology Act (15 U.S.C. 278n), in addition to the award cri7 teria set forth in subsection (c) of that section, the Director 

8 of the National Institute of Standards and Technology may 

9 take into consideration whether an application has signifi10 cant potential for enhancing the competitiveness of small11 and medium-sized businesses in the United States in the 

12 global marketplace. The Director shall consult with the 

13 Technology Innovation Program Advisory Board and the 

14 Secretary of Commerce in implementing this subsection. 

15 SEC. 4227. SENSE OF THE SENATE CONCERNING FEDERAL 

16 COLLABORATION WITH STATES ON EXPORT 

17 PROMOTION ISSUES. 

18 It is the sense of the Senate that the Secretary of Com19 merce should enhance Federal collaboration with the States 

20 on export promotion issues by— 

21 (1) providing the necessary training to the staff 

22 at State international trade agencies to enable them 

23 to assist the United States and Foreign Commercial 

24 Service (established by section 2301 of the Export En25 hancement Act of 1988 (15 U.S.C. 4721)) in pro-
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1 viding counseling and other export services to busi2 nesses in their communities; and 

3 (2) entering into agreements with State inter4 national trade agencies for those agencies to deliver 

5 export promotion services in their local communities 

6 in order to extend the outreach of United States and 

7 Foreign Commercial Service programs. 

8 SEC. 4228. REPORT ON TARIFF AND NONTARIFF BARRIERS. 

9 Not later than 90 days after the date of the enactment 

10 of this Act, the Secretary of Commerce, in consultation with 

11 the United States Trade Representative and other appro12 priate entities, shall report to Congress on the tariff and 

13 nontariff barriers imposed by Colombia, the Republic of 

14 Korea, and Panama with respect to exports of articles from 

15 the United States, including articles exported or produced 

16 by small- and medium-sized businesses in the United 

17 States. 

18 PART II—MEDICARE FRAUD 

19 SEC. 4241. USE OF PREDICTIVE MODELING AND OTHER 

20 ANALYTICS TECHNOLOGIES TO IDENTIFY 

21 AND PREVENT WASTE, FRAUD, AND ABUSE IN 

22 THE MEDICARE FEE-FOR-SERVICE PROGRAM. 

23 (a) USE IN THE MEDICARE FEE-FOR-SERVICE PRO24 GRAM.—The Secretary shall use predictive modeling and 

25 other analytics technologies (in this section referred to as 
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1 ‘‘predictive analytics technologies’’) to identify improper 

2 claims for reimbursement and to prevent the payment of 

3 such claims under the Medicare fee-for-service program. 

4 (b) PREDICTIVE ANALYTICS TECHNOLOGIES REQUIRE5 MENTS.—The predictive analytics technologies used by the 

6 Secretary shall— 

7 (1) capture Medicare provider and Medicare ben8 eficiary activities across the Medicare fee-for-service 

9 program to provide a comprehensive view across all 

10 providers, beneficiaries, and geographies within such 

11 program in order to— 

12 (A) identify and analyze Medicare provider 

13 networks, provider billing patterns, and bene14 ficiary utilization patterns; and 

15 (B) identify and detect any such patterns 

16 and networks that represent a high risk of fraud17 ulent activity; 

18 (2) be integrated into the existing Medicare fee19 for-service program claims flow with minimal effort 

20 and maximum efficiency; 

21 (3) be able to— 

22 (A) analyze large data sets for unusual or 

23 suspicious patterns or anomalies or contain 

24 other factors that are linked to the occurrence of 

25 waste, fraud, or abuse; 
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1 (B) undertake such analysis before payment 

2 is made; and 

3 (C) prioritize such identified transactions 

4 for additional review before payment is made in 

5 terms of the likelihood of potential waste, fraud, 

6 and abuse to more efficiently utilize investigative 

7 resources; 

8 (4) capture outcome information on adjudicated 

9 claims for reimbursement to allow for refinement and 

10 enhancement of the predictive analytics technologies 

11 on the basis of such outcome information, including 

12 post-payment information about the eventual status of 

13 a claim; and 

14 (5) prevent the payment of claims for reimburse15 ment that have been identified as potentially wasteful, 

16 fraudulent, or abusive until such time as the claims 

17 have been verified as valid. 

18 (c) IMPLEMENTATION REQUIREMENTS.— 

19 (1) REQUEST FOR PROPOSALS.—Not later than 

20 January 1, 2011, the Secretary shall issue a request 

21 for proposals to carry out this section during the first 

22 year of implementation. To the extent the Secretary 

23 determines appropriate— 

24 (A) the initial request for proposals may in25 clude subsequent implementation years; and 
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1 (B) the Secretary may issue additional re2 quests for proposals with respect to subsequent 

3 implementation years. 

4 (2) FIRST IMPLEMENTATION YEAR.—The initial 

5 request for proposals issued under paragraph (1) shall 

6 require the contractors selected to commence using 

7 predictive analytics technologies on July 1, 2011, in 

8 the 10 States identified by the Secretary as having 

9 the highest risk of waste, fraud, or abuse in the Medi10 care fee-for-service program. 

11 (3) SECOND IMPLEMENTATION YEAR.—Based on 

12 the results of the report and recommendation required 

13 under subsection (e)(1)(B), the Secretary shall expand 

14 the use of predictive analytics technologies on October 

15 1, 2012, to apply to an additional 10 States identi16 fied by the Secretary as having the highest risk of 

17 waste, fraud, or abuse in the Medicare fee-for-service 

18 program, after the States identified under paragraph 

19 (2). 

20 (4) THIRD IMPLEMENTATION YEAR.—Based on 

21 the results of the report and recommendation required 

22 under subsection (e)(2), the Secretary shall expand 

23 the use of predictive analytics technologies on Janu24 ary 1, 2014, to apply to the Medicare fee-for-service 
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1 program in any State not identified under paragraph 

2 (2) or (3) and the commonwealths and territories. 

3 (5) FOURTH IMPLEMENTATION YEAR.—Based on 

4 the results of the report and recommendation required 

5 under subsection (e)(3), the Secretary shall expand 

6 the use of predictive analytics technologies, beginning 

7 April 1, 2015, to apply to Medicaid and CHIP. To 

8 the extent the Secretary determines appropriate, such 

9 expansion may be made on a phased-in basis. 

10 (6) OPTION FOR REFINEMENT AND EVALUA11 TION.—If, with respect to the first, second, or third 

12 implementation year, the Inspector General of the De13 partment of Health and Human Services certifies as 

14 part of the report required under subsection (e) for 

15 that year no or only nominal actual savings to the 

16 Medicare fee-for-service program, the Secretary may 

17 impose a moratorium, not to exceed 12 months, on the 

18 expansion of the use of predictive analytics tech19 nologies under this section for the succeeding year in 

20 order to refine the use of predictive analytics tech21 nologies to achieve more than nominal savings before 

22 further expansion. If a moratorium is imposed in ac23 cordance with this paragraph, the implementation 

24 dates applicable for the succeeding year or years shall 
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1 be adjusted to reflect the length of the moratorium pe2 riod. 

3 (d) CONTRACTOR SELECTION, QUALIFICATIONS, AND

4 DATA ACCESS REQUIREMENTS.— 

5 (1) SELECTION.— 

6 (A) IN GENERAL.—The Secretary shall se7 lect contractors to carry out this section using 

8 competitive procedures as provided for in the 

9 Federal Acquisition Regulation. 

10 (B) NUMBER OF CONTRACTORS.—The Sec11 retary shall select at least 2 contractors to carry 

12 out this section with respect to any year. 

13 (2) QUALIFICATIONS.— 

14 (A) IN GENERAL.—The Secretary shall enter 

15 into a contract under this section with an entity 

16 only if the entity— 

17 (i) has leadership and staff who— 

18 (I) have the appropriate clinical 

19 knowledge of, and experience with, the 

20 payment rules and regulations under 

21 the Medicare fee-for-service program; 

22 and 

23 (II) have direct management expe24 rience and proficiency utilizing pre25 dictive analytics technologies necessary 
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1 to carry out the requirements under 

2 subsection (b); or 

3 (ii) has a contract, or will enter into 

4 a contract, with another entity that has 

5 leadership and staff meeting the criteria de6 scribed in clause (i). 

7 (B) CONFLICT OF INTEREST.—The Sec8 retary may only enter into a contract under this 

9 section with an entity to the extent that the enti10 ty complies with such conflict of interest stand11 ards as are generally applicable to Federal ac12 quisition and procurement. 

13 (3) DATA ACCESS.—The Secretary shall provide 

14 entities with a contract under this section with ap15 propriate access to data necessary for the entity to use 

16 predictive analytics technologies in accordance with 

17 the contract. 

18 (e) REPORTING REQUIREMENTS.— 

19 (1) FIRST IMPLEMENTATION YEAR REPORT.—Not 

20 later than 3 months after the completion of the first 

21 implementation year under this section, the Secretary 

22 shall submit to the appropriate committees of Con23 gress and make available to the public a report that 

24 includes the following: 
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1 (A) A description of the implementation of 

2 the use of predictive analytics technologies dur3 ing the year. 

4 (B) A certification of the Inspector General 

5 of the Department of Health and Human Serv6 ices that— 

7 (i) specifies the actual and projected 

8 savings to the Medicare fee-for-service pro9 gram as a result of the use of predictive 

10 analytics technologies, including estimates 

11 of the amounts of such savings with respect 

12 to both improper payments recovered and 

13 improper payments avoided; 

14 (ii) the actual and projected savings to 

15 the Medicare fee-for-service program as a re16 sult of such use of predictive analytics tech17 nologies relative to the return on investment 

18 for the use of such technologies and in com19 parison to other strategies or technologies 

20 used to prevent and detect fraud, waste, and 

21 abuse in the Medicare fee-for-service pro22 gram; and 

23 (iii) includes recommendations regard24 ing— 
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1 (I) whether the Secretary should 

2 continue to use predictive analytics 

3 technologies; 

4 (II) whether the use of such tech5 nologies should be expanded in accord6 ance with the requirements of sub7 section (c); and 

8 (III) any modifications or refine9 ments that should be made to increase 

10 the amount of actual or projected sav11 ings or mitigate any adverse impact 

12 on Medicare beneficiaries or providers. 

13 (C) An analysis of the extent to which the 

14 use of predictive analytics technologies success15 fully prevented and detected waste, fraud, or 

16 abuse in the Medicare fee-for-service program. 

17 (D) A review of whether the predictive ana18 lytics technologies affected access to, or the qual19 ity of, items and services furnished to Medicare 

20 beneficiaries. 

21 (E) A review of what effect, if any, the use 

22 of predictive analytics technologies had on Medi23 care providers. 

24 (F) Any other items determined appropriate 

25 by the Secretary. 
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1 (2) SECOND YEAR IMPLEMENTATION REPORT.— 

2 Not later than 3 months after the completion of the 

3 second implementation year under this section, the 

4 Secretary shall submit to the appropriate committees 

5 of Congress and make available to the public a report 

6 that includes, with respect to such year, the items re7 quired under paragraph (1) as well as any other ad8 ditional items determined appropriate by the Sec9 retary with respect to the report for such year. 

10 (3) THIRD YEAR IMPLEMENTATION REPORT.— 

11 Not later than 3 months after the completion of the 

12 third implementation year under this section, the Sec13 retary shall submit to the appropriate committees of 

14 Congress, and make available to the public, a report 

15 that includes with respect to such year, the items re16 quired under paragraph (1), as well as any other ad17 ditional items determined appropriate by the Sec18 retary with respect to the report for such year, and 

19 the following: 

20 (A) An analysis of the cost-effectiveness and 

21 feasibility of expanding the use of predictive 

22 analytics technologies to Medicaid and CHIP. 

23 (B) An analysis of the effect, if any, the ap24 plication of predictive analytics technologies to 
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1 claims under Medicaid and CHIP would have on 

2 States and the commonwealths and territories. 

3 (C) Recommendations regarding the extent 

4 to which technical assistance may be necessary to 

5 expand the application of predictive analytics 

6 technologies to claims under Medicaid and 

7 CHIP, and the type of any such assistance. 

8 (f) INDEPENDENT EVALUATION AND REPORT.— 

9 (1) EVALUATION.—Upon completion of the first 

10 year in which predictive analytics technologies are 

11 used with respect to claims under Medicaid and 

12 CHIP, the Secretary shall, by grant, contract, or 

13 interagency agreement, conduct an independent eval14 uation of the use of predictive analytics technologies 

15 under the Medicare fee-for-service program and Med16 icaid and CHIP. The evaluation shall include an 

17 analysis with respect to each such program of the 

18 items required for the third year implementation re19 port under subsection (e)(3). 

20 (2) REPORT.—Not later than 18 months after the 

21 evaluation required under paragraph (1) is initiated, 

22 the Secretary shall submit a report to Congress on the 

23 evaluation that shall include the results of the evalua24 tion, the Secretary’s response to such results and, to 

25 the extent the Secretary determines appropriate, rec-
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1 ommendations for legislation or administrative ac2 tions. 

3 (g) WAIVER AUTHORITY.—The Secretary may waive 

4 such provisions of titles XI, XVIII, XIX, and XXI of the 

5 Social Security Act, including applicable prompt payment 

6 requirements under titles XVIII and XIX of such Act, as 

7 the Secretary determines to be appropriate to carry out this 

8 section. 

9 (h) FUNDING.— 

10 (1) APPROPRIATION.—Out of any funds in the 

11 Treasury not otherwise appropriated, there is appro12 priated to the Secretary to carry out this section, 

13 $100,000,000 for the period beginning January 1, 

14 2011, to remain available until expended. 

15 (2) RESERVATIONS.— 

16 (A) INDEPENDENT EVALUATION.—The Sec17 retary shall reserve not more than 5 percent of 

18 the funds appropriated under paragraph (1) for 

19 purposes of conducting the independent evalua20 tion required under subsection (f). 

21 (B) APPLICATION TO MEDICAID AND

22 CHIP.—The Secretary shall reserve such portion 

23 of the funds appropriated under paragraph (1) 

24 as the Secretary determines appropriate for pur25 poses of providing assistance to States for ad-
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1 ministrative expenses in the event of the expan2 sion of predictive analytics technologies to claims 

3 under Medicaid and CHIP. 

4 (i) DEFINITIONS.—In this section: 

5 (1) COMMONWEALTHS AND TERRITORIES.—The 

6 term ‘‘commonwealth and territories’’ includes the 

7 Commonwealth of Puerto Rico, the Virgin Islands, 

8 Guam, American Samoa, the Commonwealth of the 

9 Northern Mariana Islands, and any other territory or 

10 possession of the United States in which the Medicare 

11 fee-for-service program, Medicaid, or CHIP operates. 

12 (2) CHIP.—The term ‘‘CHIP’’ means the Chil13 dren’s Health Insurance Program established under 

14 title XXI of the Social Security Act (42 U.S.C. 

15 1397aa et seq.). 

16 (3) MEDICAID.—The term ‘‘Medicaid’’ means the 

17 program to provide grants to States for medical as18 sistance programs established under title XIX of the 

19 Social Security Act (42 U.S.C. 1396 et seq.). 

20 (4) MEDICARE BENEFICIARY.—The term ‘‘Medi21 care beneficiary’’ means an individual enrolled in the 

22 Medicare fee-for-service program. 

23 (5) MEDICARE FEE-FOR-SERVICE PROGRAM.— 

24 The term ‘‘Medicare fee-for-service program’’ means 

25 the original medicare fee-for-service program under 
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1 parts A and B of title XVIII of the Social Security 

2 Act (42 U.S.C. 1395 et seq.). 

3 (6) MEDICARE PROVIDER.—The term ‘‘Medicare 

4 provider’’ means a provider of services (as defined in 

5 subsection (u) of section 1861 of the Social Security 

6 Act (42 U.S.C. 1395x)) and a supplier (as defined in 

7 subsection (d) of such section). 

8 (7) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Health and Human Services, acting 

10 through the Administrator of the Centers for Medicare 

11 & Medicaid Services. 

12 (8) STATE.—The term ‘‘State’’ means each of the 

13 50 States and the District of Columbia. 

14 TITLE V—BUDGETARY 

15 PROVISIONS 

16 SEC. 5001. DETERMINATION OF BUDGETARY EFFECTS. 

17 The budgetary effects of this Act, for the purpose of 

18 complying with the Statutory Pay-As-You-Go-Act of 2010, 

19 shall be determined by reference to the latest statement titled 

20 ‘‘Budgetary Effects of PAYGO Legislation’’ for this Act, 

21 submitted for printing in the Congressional Record by the 

22 Chairman of the Senate Budget Committee, provided that 
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1 such statement has been submitted prior to the vote on pas2 sage. 

Attest: 

Secretary. 

111TH CONGRESS 

2D SESSION H.R. 5297 

AMENDMENT