II 

113TH CONGRESS 

2D SESSION S. 2285 

To help small businesses access capital and create jobs by reauthorizing 

the successful State Small Business Credit Initiative. 

IN THE SENATE OF THE UNITED STATES 

MAY 1, 2014 

Mrs. SHAHEEN (for herself, Ms. STABENOW, Mr. LEVIN, Mr. BEGICH, and 

Ms. LANDRIEU) introduced the following bill; which was read twice and 

referred to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To help small businesses access capital and create jobs by 

reauthorizing the successful State Small Business Credit 

Initiative. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

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

5 to Capital Act of 2014’’. 


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1 SEC. 2. NEW TRANCHES OF CAPITAL FOR SUCCESSFUL 

2 STATE PROGRAMS. 

3 Section 3003 of the Small Business Jobs Act of 2010 

4 (12 U.S.C. 5702) is amended by adding at the end the 

5 following: 

6 ‘‘(d) ADDITIONAL ALLOCATION AND COMPETITIVE

7 AWARDS.— 

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

9 ‘‘(A) the term ‘eligible participating State’ 

10 means a participating State that has certified 

11 to the Secretary that the State has expended, 

12 transferred, or obligated not less than 80 percent of the second 1 13 ⁄3 of the 2010 allocation 

14 transferred to the State under subsection 

15 (c)(1)(A)(iii); and 

16 ‘‘(B) the term ‘unused funds’ means— 

17 ‘‘(i) amounts made available to the 

18 Secretary under clause (i)(II) or (ii)(II) of 

19 paragraph (2)(E); and 

20 ‘‘(ii) amounts made available to the 

21 Secretary under paragraph (4)(B)(ii). 

22 ‘‘(2) ALLOCATION FOR 2010 PARTICIPATING

23 STATES.— 

24 ‘‘(A) ALLOCATION.—Of the amount made 

25 available under paragraph (6)(D), the Secretary 

26 shall allocate a total of $500,000,000 among elVerDate Mar 15 2010 03:10 May 03, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2285.IS S2285

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1 igible participating States in the same ratio as 

2 funds were allocated under the 2010 allocation 

3 under subsection (b)(1) among participating 

4 States. 

5 ‘‘(B) APPLICATION.—An eligible partici6 pating State desiring to receive funds allocated 

7 under this paragraph shall submit an applica8 tion— 

9 ‘‘(i) not later than the later of— 

10 ‘‘(I) June 30, 2015; or 

11 ‘‘(II) the date that is 6 months 

12 after the date of enactment of the 

13 Small Business Access to Capital Act 

14 of 2014; and 

15 ‘‘(ii) in such manner and containing 

16 such information as the Secretary may re17 quire. 

18 ‘‘(C) AVAILABILITY OF ALLOCATED

19 AMOUNT.—Notwithstanding subsection (c)(1), 

20 after an eligible participating State approved by 

21 the Secretary to receive an allocation under this 

22 paragraph has certified to the Secretary that 

23 the eligible participating State has expended, 

24 transferred, or obligated not less than 80 percent of the last 1 25 ⁄3 of the 2010 allocation to the 


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1 eligible participating State, the Secretary shall 

2 transfer to the eligible participating State the 

3 funds allocated to the eligible participating 

4 State under this paragraph. 

5 ‘‘(D) USE OF TRANSFERRED FUNDS.—An 

6 eligible participating State may use funds 

7 transferred under this paragraph for any pur8 pose authorized under subparagraph (A) or (B) 

9 of subsection (c)(3). 

10 ‘‘(E) TERMINATION OF AVAILABILITY OF

11 AMOUNTS.— 

12 ‘‘(i) IN GENERAL.—If an eligible par13 ticipating State has not certified to the 

14 Secretary that the State has expended, 

15 transferred, or obligated not less than 80 

percent of the last 1 16 ⁄3 of the 2010 alloca17 tion as of the date that is 2 years after the 

18 date on which the Secretary approves the 

19 eligible participating State to receive an al20 location under this paragraph, any 

21 amounts allocated to the eligible partici22 pating State under this paragraph— 

23 ‘‘(I) may not be transferred to 

24 the eligible participating State under 

25 this paragraph; and 


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1 ‘‘(II) shall be available to the 

2 Secretary to make awards under para3 graph (4). 

4 ‘‘(ii) OTHER AMOUNTS.—Effective on 

5 the date that is 2 years after the date of 

6 enactment of the Small Business Access to 

7 Capital Act of 2014, any amounts allo8 cated under this paragraph to a partici9 pating State that, as of such date, is not 

10 an eligible participating State or to an eli11 gible participating State that did not sub12 mit an application under subparagraph (B) 

13 or was not approved by the Secretary to 

14 receive an allocation under this para15 graph— 

16 ‘‘(I) may not be transferred to an 

17 eligible participating State under this 

18 paragraph; and 

19 ‘‘(II) shall be available to the 

20 Secretary to make awards under para21 graph (4). 

22 ‘‘(3) COMPETITIVE FUNDING.— 

23 ‘‘(A) IN GENERAL.—Of the amount made 

24 available under paragraph (6)(D), the Secretary 

25 may award, on a competitive basis, not more 


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1 than a total of $1,000,000,000 to participating 

2 States and consortiums of participating States 

3 for use for any purpose authorized under sub4 paragraph (A) or (B) of subsection (c)(3). 

5 ‘‘(B) APPLICATION.— 

6 ‘‘(i) IN GENERAL.—A participating 

7 State or consortium of participating States 

8 desiring to receive an award under this 

9 paragraph shall submit an application— 

10 ‘‘(I) not later than the date es11 tablished by the Secretary, which shall 

12 be not later than the date that is 1 

13 year after the date of enactment of 

14 the Small Business Access to Capital 

15 Act of 2014; and 

16 ‘‘(II) in such manner and con17 taining such information as the Sec18 retary may require. 

19 ‘‘(ii) NUMBER OF APPLICATIONS.—A 

20 participating State may submit not more 

21 than 1 application on behalf of the partici22 pating State and not more than 1 applica23 tion as part of a consortium of partici24 pating States. 


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1 ‘‘(iii) STATES THAT DID NOT PARTICI2 PATE.—A State that is not a participating 

3 State may apply to the Secretary for ap4 proval to be a participating State for pur5 poses of this paragraph and paragraph (4), 

6 in accordance with section 3004. 

7 ‘‘(C) FACTORS.—In determining whether 

8 to make an award to a participating State or 

9 consortium of participating States under this 

10 paragraph, the Secretary shall consider— 

11 ‘‘(i) how the participating State or 

12 consortium of participating States plan to 

13 use amounts provided under the award 

14 under the approved State program to— 

15 ‘‘(I) leverage private sector cap16 ital; 

17 ‘‘(II) create and retain jobs dur18 ing the 2-year period beginning on the 

19 date of the award; 

20 ‘‘(III) serve businesses that have 

21 been incorporated or in operation for 

22 not more than 5 years; and 

23 ‘‘(IV) serve low-or-moderate-in24 come communities; 


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1 ‘‘(ii) the extent to which the partici2 pating State or consortium of participating 

3 States will establish or continue a robust 

4 self-evaluation of the activities of the par5 ticipating State or consortium of partici6 pating States using amounts made avail7 able under this title; 

8 ‘‘(iii) the extent to which the partici9 pating State or consortium of participating 

10 States will provide non-Federal funds in 

11 excess of the amount required under sub12 paragraph (E); and 

13 ‘‘(iv) the extent to which the partici14 pating State expended, obligated, or trans15 ferred the 2010 allocation to the State. 

16 ‘‘(D) AWARD OF FUNDS.— 

17 ‘‘(i) FIRST TRANCHE.—Notwith18 standing subsection (c)(1), and not later 

19 than 30 days after making an award under 

20 this paragraph to a participating State or 

21 consortium of participating States, the 

22 Secretary shall transfer 50 percent of the 

23 amount of the award to the participating 

24 State or consortium of participating 

25 States. 


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1 ‘‘(ii) SECOND TRANCHE.—After a par2 ticipating State or consortium of partici3 pating States has certified to the Secretary 

4 that the participating State or consortium 

5 of participating States has expended, 

6 transferred, or obligated not less than 80 

7 percent of the amount transferred under 

8 clause (i), the Secretary shall transfer to 

9 the participating State or consortium of 

10 participating States the remaining amount 

11 of the award. 

12 ‘‘(E) STATE SHARE.—The State share of 

13 the cost of the activities, excluding administra14 tive expenses, carried out using an award under 

15 this paragraph shall be not less than 10 per16 cent. The Secretary may determine what con17 tributions by a State qualify as part of the 

18 State share of the cost for purposes of this sub19 paragraph. 

20 ‘‘(4) AWARD OF UNUSED FUNDS.— 

21 ‘‘(A) IN GENERAL.—The Secretary may 

22 award, on a competitive basis, unused funds to 

23 participating States for use for any purpose au24 thorized under subparagraph (A) or (B) of sub25 section (c)(3). 


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1 ‘‘(B) UNUSED 2010 FUNDS.— 

2 ‘‘(i) IN GENERAL.—The Secretary 

3 shall determine whether any amounts allo4 cated to a participating State under sub5 section (b) shall be deemed no longer allo6 cated and no longer available if a partici7 pating State has not certified to the Sec8 retary that the State has expended, trans9 ferred, or obligated 80 percent of the second 1 10 ⁄3 of the 2010 allocation by December 

11 31, 2016. 

12 ‘‘(ii) AVAILABILITY.—Effective on the 

13 date of the determination under clause (i), 

14 any amounts identified in the determina15 tion that were deemed no longer allocated 

16 and no longer available to the participating 

17 State shall be available to the Secretary to 

18 make awards under this paragraph. 

19 ‘‘(C) APPLICATION.—A participating State 

20 desiring to receive an award under this para21 graph shall submit an application— 

22 ‘‘(i) not later than 3 months after the 

23 date on which funds are deemed no longer 

24 allocated and no longer available to any 

25 participating State; and 


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1 ‘‘(ii) in such manner and containing 

2 such information as the Secretary may re3 quire. 

4 ‘‘(D) FACTORS.—In determining whether 

5 to make an award to a participating State 

6 under this paragraph, the Secretary shall con7 sider the factors described in paragraph (3)(C). 

8 ‘‘(E) MINIMUM AMOUNT.—The Secretary 

9 may not make an award of less than 

10 $5,000,000 under this paragraph. 

11 ‘‘(5) EXTENSION OF COMPLIANCE AND REPORT12 ING.—Notwithstanding section 3007(d), a partici13 pating State that receives funds under paragraph 

14 (2), (3), or (4) shall submit quarterly and annual re15 ports containing the information described in section 

16 3007 until the end of the 8-year period beginning on 

17 the date of enactment of the Small Business Access 

18 to Capital Act of 2014. 

19 ‘‘(6) ADMINISTRATION AND IMPLEMENTA20 TION.— 

21 ‘‘(A) ADMINISTRATIVE EXPENSES FOR

22 PARTICIPATING STATES.—A participating State 

23 may use not more than 3 percent of the amount 

24 made available to the participating State under 

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1 penses incurred by the participating State in 

2 implementing an approved State program. 

3 ‘‘(B) CONTRACTING.—During the 1-year 

4 period beginning on the date of enactment of 

5 the Small Business Access to Capital Act of 

6 2014, and notwithstanding any other provision 

7 of law relating to public contracting, the Sec8 retary may enter into contracts to carry out 

9 this subsection. 

10 ‘‘(C) AMOUNTS NOT ASSISTANCE.—Any 

11 amounts transferred to a participating State 

12 under paragraph (2), (3), or (4) shall not be 

13 considered assistance for purposes of subtitle V 

14 of title 31, United States Code. 

15 ‘‘(D) APPROPRIATION.—There are appro16 priated to the Secretary, out of any funds in 

17 the Treasury not otherwise appropriated, 

18 $1,500,000,000 to carry out this subsection, in19 cluding to pay reasonable costs of administering 

20 the programs under this subsection, to remain 

21 available until expended. 

22 ‘‘(E) TERMINATION OF SECRETARY’S PRO23 GRAM ADMINISTRATION FUNCTIONS.—The au24 thorities and duties of the Secretary to imple25 ment and administer the program under this 


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1 subsection shall terminate at the end of the 8- 

2 year period beginning on the date of enactment 

3 of the Small Business Access to Capital Act of 

4 2014.’’. 

Æ 


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