II 

Calendar No. 634 

111TH CONGRESS 

2D SESSION S. 2869 

[Report No. 111–342] 

To increase loan limits for small business concerns, to provide for low interest 

refinancing for small business concerns, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

DECEMBER 10, 2009 

Ms. LANDRIEU (for herself, Ms. SNOWE, Mr. KERRY, Mr. LIEBERMAN, Mrs. 

SHAHEEN, Mr. DORGAN, Mr. CASEY, Mr. PRYOR, Mr. BINGAMAN, Mr. 

BURRIS, Ms. KLOBUCHAR, Mr. LEVIN, Mrs. BOXER, Ms. STABENOW, Mr. 

BAYH, Mr. ISAKSON, Mrs. FEINSTEIN, Mr. CARDIN, Mr. JOHNSON, Mrs. 

LINCOLN, Mrs. MURRAY, Mr. JOHANNS, Mr. BENNET, Mrs. MCCASKILL, 

Mr. MERKLEY, Mr. SPECTER, Mr. UDALL of New Mexico, and Ms. CANTWELL) introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

SEPTEMBER 29, 2010 

Reported by Ms. LANDRIEU, with an amendment 

[Insert the part printed in italic] 

A BILL 

To increase loan limits for small business concerns, to provide for low interest refinancing for small business concerns, and for other purposes. 

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

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1 SECTION 1. SHORT TITLE. 

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

3 Creation and Access to Capital Act of 2009’’. 

4 TITLE I—NEXT STEPS FOR MAIN 

5 STREET CREDIT AVAILABILITY 

6 SEC. 101. SECTION 7(a) BUSINESS LOANS. 

7 (a) AMENDMENT.—Section 7(a) of the Small Busi8 ness Act (15 U.S.C. 636(a)) is amended— 

9 (1) in paragraph (2)(A)— 

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

11 and inserting ‘‘90 percent’’; and 

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

13 and inserting ‘‘90 percent’’; and 

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

15 ‘‘$1,500,000 (or if the gross loan amount would ex16 ceed $2,000,000’’ and inserting ‘‘$4,500,000 (or if 

17 the gross loan amount would exceed $5,000,000’’. 

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

19 2011, section 7(a) of the Small Business Act (15 U.S.C. 

20 636(a)) is amended— 

21 (1) in paragraph (2)(A)— 

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

23 and inserting ‘‘75 percent’’; and 

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

25 and inserting ‘‘85 percent’’; and 

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

2 ‘‘$4,500,000’’ and inserting ‘‘$3,750,000’’. 

3 SEC. 102. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM. 

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

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

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

7 inserting ‘‘$5,000,000’’; 

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

9 inserting ‘‘$5,000,000’’; 

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

11 inserting ‘‘$5,500,000’’; 

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

13 inserting ‘‘$5,500,000’’; and 

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

15 inserting ‘‘$5,500,000’’. 

16 SEC. 103. MAXIMUM LOAN LIMITS UNDER MICROLOAN PRO17 GRAM. 

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

19 636(m)) is amended— 

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

21 ‘‘$35,000’’ and inserting ‘‘$50,000’’; 

22 (2) in paragraph (3)— 

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

24 ‘‘$3,500,000’’ and inserting ‘‘$5,000,000’’; and 

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

2 ‘‘$35,000’’ each place that term appears and 

3 inserting ‘‘$50,000’’; and 

4 (3) in paragraph (11)(B), by striking 

5 ‘‘$35,000’’ and inserting ‘‘$50,000’’. 

6 SEC. 104. TEMPORARY FEE REDUCTIONS. 

7 Section 501 of the American Recovery and Reinvest8 ment Act of 2009 (Public Law 111–5; 123 Stat. 151) is 

9 amended by striking ‘‘September 30, 2010’’ each place 

10 that term appears and inserting ‘‘December 31, 2010’’. 

11 SEC. 105. NEW MARKETS VENTURE CAPITAL COMPANY IN12 VESTMENT LIMITATIONS. 

13 Section 355 of the Small Business Investment Act 

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

15 end the following: 

16 ‘‘(e) INVESTMENT LIMITATIONS.— 

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

18 ‘covered New Markets Venture Capital company’ 

19 means a New Markets Venture Capital company— 

20 ‘‘(A) granted final approval by the Admin21 istrator under section 354(e) on or after March 

22 1, 2002; and 

23 ‘‘(B) that has obtained a financing from 

24 the Administrator. 

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1 ‘‘(2) LIMITATION.—Except to the extent ap2 proved by the Administrator, a covered New Markets 

3 Venture Capital company may not acquire or issue 

4 commitments for securities under this title for any 

5 single enterprise in an aggregate amount equal to 

6 more than 10 percent of the sum of— 

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

8 New Markets Venture Capital company; and 

9 ‘‘(B) the total amount of leverage pro10 jected in the participation agreement of the cov11 ered New Markets Venture Capital.’’. 

12 SEC. 106. ALTERNATIVE SIZE STANDARDS. 

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

14 632(a)) is amended by adding at the end the following: 

15 ‘‘(5) ALTERNATIVE SIZE STANDARD.— 

16 ‘‘(A) IN GENERAL.—The Administrator shall 

17 establish an alternative size standard for applicants 

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

19 for development company loans under title V of the 

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

21 695 et seq.), that uses maximum tangible net worth 

22 and average net income as an alternative to the use 

23 of industry standards. 

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

25 the alternative size standard established under submstockstill on DSKH9S0YB1PROD with BILLS

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1 paragraph (A) is in effect, an applicant for a busi2 ness loan under section 7(a) or an applicant for a 

3 development company loan under title V of the 

4 Small Business Investment Act of 1958 may be eli5 gible for such a loan if— 

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

7 the applicant is not more than $15,000,000; 

8 and 

9 ‘‘(ii) the average net income after Federal 

10 income taxes (excluding any carry-over losses) 

11 of the applicant for the 2 full fiscal years before 

12 the date of the application is not more than 

13 $5,000,000.’’. 

14 SEC. 107. SALE OF 7(a) LOANS IN SECONDARY MARKET. 

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

16 634(g)) is amended by adding at the end the following: 

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

18 loan under section 7(a) is more than $500,000, the Ad19 ministrator shall, upon request of a pool assembler, divide 

20 the loan guarantee into increments of $500,000 and 1 in21 crement of any remaining amount less than $500,000, in 

22 order to permit the maximum amount of any loan in a 

23 pool to be not more than $500,000. Only 1 increment of 

24 any loan guarantee divided under this paragraph may be 

25 included in the same pool. Increments of loan guarantees 

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1 to different borrowers that are divided under this para2 graph may be included in the same pool.’’. 

3 SEC. 108. ONLINE LENDING PLATFORM. 

4 It is the sense of Congress that the Administrator 

5 of the Small Business Administration should establish a 

6 website that— 

7 (1) lists each lender that makes loans guaran8 teed by the Small Business Administration and pro9 vides information about the loan rates of each such 

10 lender; and 

11 (2) allows prospective borrowers to compare 

12 rates on loans guaranteed by the Small Business 

13 Administration. 

14 TITLE II—SMALL BUSINESS 

15 ACCESS TO CAPITAL 

16 SEC. 202. LOW-INTEREST REFINANCING UNDER THE LOCAL 

17 DEVELOPMENT BUSINESS LOAN PROGRAM. 

18 (a) REFINANCING.—Section 502(7) of the Small 

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

20 amended by adding at the end the following: 

21 ‘‘(C) REFINANCING NOT INVOLVING EX22 PANSIONS.— 

23 ‘‘(i) DEFINITIONS.—In this subpara24 graph— 

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1 ‘‘(I) the term ‘borrower’ means a 

2 small business concern that submits 

3 an application to a development com4 pany for financing under this sub5 paragraph; 

6 ‘‘(II) the term ‘eligible fixed 

7 asset’ means tangible property relat8 ing to which the Administrator may 

9 provide financing under this section; 

10 and 

11 ‘‘(III) the term ‘qualified debt’ 

12 means indebtedness— 

13 ‘‘(aa) that— 

14 ‘‘(AA) was incurred not 

15 less than 2 years before the 

16 date of the application for 

17 assistance under this sub18 paragraph; 

19 ‘‘(BB) is a commercial 

20 loan; 

21 ‘‘(CC) is not subject to 

22 a guarantee by a Federal 

23 agency; 

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1 ‘‘(DD) the proceeds of 

2 which were used to acquire 

3 an eligible fixed asset; 

4 ‘‘(EE) was incurred for 

5 the benefit of the small busi6 ness concern; and 

7 ‘‘(FF) is collateralized 

8 by eligible fixed assets; and 

9 ‘‘(bb) for which the borrower 

10 has been current on all payments 

11 for not less than 1 year before 

12 the date of the application. 

13 ‘‘(ii) AUTHORITY.—A project that 

14 does not involve the expansion of a small 

15 business concern may include the refi16 nancing of qualified debt if— 

17 ‘‘(I) the amount of the financing 

18 is not more than 80 percent of the 

19 value of the collateral for the financ20 ing, except that, if the appraised value 

21 of the eligible fixed assets serving as 

22 collateral for the financing is less than 

23 the amount equal to 125 percent of 

24 the amount of the financing, the bor25 rower may provide additional cash or 

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1 other collateral to eliminate any defi2 ciency; 

3 ‘‘(II) the borrower has been in 

4 operation for all of the 2-year period 

5 ending on the date of the loan; and 

6 ‘‘(III) for a financing for which 

7 the Administrator determines there 

8 will be an additional cost attributable 

9 to the refinancing of the qualified 

10 debt, the borrower agrees to pay a fee 

11 in an amount equal to the anticipated 

12 additional cost. 

13 ‘‘(iii) FINANCING FOR BUSINESS EX14 PENSES.— 

15 ‘‘(I) FINANCING FOR BUSINESS

16 EXPENSES.—The Administrator may 

17 provide financing to a borrower that 

18 receives financing that includes a refi19 nancing of qualified debt under clause 

20 (ii), in addition to the refinancing 

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

22 the payment of business expenses. 

23 ‘‘(II) APPLICATION FOR FINANC24 ING.—An application for financing 

25 under subclause (I) shall include— 

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1 ‘‘(aa) a specific description 

2 of the expenses for which the ad3 ditional financing is requested; 

4 and 

5 ‘‘(bb) an itemization of the 

6 amount of each expense. 

7 ‘‘(III) CONDITION ON ADDI8 TIONAL FINANCING.—A borrower may 

9 not use any part of the financing 

10 under this clause for non-business 

11 purposes. 

12 ‘‘(iv) LOANS BASED ON JOBS.— 

13 ‘‘(I) JOB CREATION AND RETEN14 TION GOALS.— 

15 ‘‘(aa) IN GENERAL.—The 

16 Administrator may provide fi17 nancing under this subparagraph 

18 for a borrower that meets the job 

19 creation goals under subsection 

20 (d) or (e) of section 501. 

21 ‘‘(bb) ALTERNATE JOB RE22 TENTION GOAL.—The Adminis23 trator may provide financing 

24 under this subparagraph to a 

25 borrower that does not meet the 

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1 goals described in item (aa) in an 

2 amount that is not more than the 

3 product obtained by multiplying 

4 the number of employees of the 

5 borrower by $65,000. 

6 ‘‘(II) NUMBER OF EMPLOYEES.— 

7 For purposes of subclause (I), the 

8 number of employees of a borrower is 

9 equal to the sum of— 

10 ‘‘(aa) the number of full11 time employees of the borrower 

12 on the date on which the bor13 rower applies for a loan under 

14 this subparagraph; and 

15 ‘‘(bb) the product obtained 

16 by multiplying— 

17 ‘‘(AA) the number of 

18 part-time employees of the 

19 borrower on the date on 

20 which the borrower applies 

21 for a loan under this sub22 paragraph; by 

23 ‘‘(BB) the quotient ob24 tained by dividing the aver25 age number of hours each 

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1 part time employee of the 

2 borrower works each week 

3 by 40. 

4 ‘‘(v) NONDELEGATION.—Notwith5 standing section 508(e), the Administrator 

6 may not permit a premier certified lender 

7 to approve or disapprove an application for 

8 assistance under this subparagraph. 

9 ‘‘(vi) TOTAL AMOUNT OF LOANS.— 

10 The Administrator may provide not more 

11 than a total of $4,000,000,000 of financ12 ing under this subparagraph for each fiscal 

13 year.’’. 

14 (b) PROSPECTIVE REPEAL.—Effective 2 years after 

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

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

17 696(7)) is amended by striking subparagraph (C). 

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

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

20 696(2)(A)(i)) is amended by striking ‘‘subparagraph (B) 

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

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1 TITLE III—OTHER MATTERS 

2 SEC. 301. SMALL BUSINESS INTERMEDIARY LENDING PILOT 

3 PROGRAM. 

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

5 (15 U.S.C. 636) is amended by striking subsection (l) and 

6 inserting the following: 

7 ‘‘(l) SMALL BUSINESS INTERMEDIARY LENDING PILOT

8 PROGRAM.— 

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

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

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

12 that— 

13 ‘‘(I) seeks or has been awarded a 

14 loan from the Administrator to make 

15 loans to small business concerns under 

16 this subsection; and 

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

18 experience making loans to startup, 

19 newly established, or growing small 

20 business concerns; and 

21 ‘‘(ii) includes— 

22 ‘‘(I) a private, nonprofit commu23 nity development corporation; 

24 ‘‘(II) a consortium of private, 

25 nonprofit organizations or nonprofit 

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1 community development corporations; 

2 and 

3 ‘‘(III) an agency of or nonprofit 

4 entity established by a Native Amer5 ican Tribal Government; and 

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

7 business intermediary lending pilot program es8 tablished under paragraph (2). 

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

10 year small business intermediary lending pilot pro11 gram, under which the Administrator may make di12 rect loans to eligible intermediaries, for the purpose 

13 of making loans to startup, newly established, and 

14 growing small business concerns. 

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

16 are— 

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

18 areas suffering from a lack of credit due to poor 

19 economic conditions or changes in the financial 

20 market; and 

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

22 which the Administrator may provide loans to 

23 eligible intermediaries to enable the eligible 

24 intermediaries to provide loans to startup, newly 

25 established, and growing small business concerns 

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1 for working capital, real estate, or the acquisi2 tion of materials, supplies, or equipment. 

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

4 ‘‘(A) APPLICATION.—Each eligible inter5 mediary desiring a loan under this subsection 

6 shall submit an application to the Administrator 

7 that describes— 

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

9 to be assisted; 

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

11 made; 

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

13 loans to be made; 

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

15 and the economic, poverty, and unemploy16 ment characteristics of the area; 

17 ‘‘(v) the status of small business con18 cerns in the area to be served and an anal19 ysis of the availability of credit; and 

20 ‘‘(vi) the qualifications of the applicant 

21 to carry out this subsection. 

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

23 to an eligible intermediary under this subsection 

24 if the total amount outstanding and committed 

25 to the eligible intermediary by the Administrator 

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

2 during the participation of the eligible inter3 mediary in the Program. 

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

5 Administrator under this subsection shall be for 

6 a term of 20 years. 

7 ‘‘(D) APPLICABLE INTEREST RATES.— 

8 Loans made by the Administrator to an eligible 

9 intermediary under the Program shall bear an 

10 annual interest rate equal to 1.00 percent. 

11 ‘‘(E) FEES; COLLATERAL.—The Adminis12 trator may not charge any fees or require collat13 eral with respect to any loan made to an eligible 

14 intermediary under this subsection. 

15 ‘‘(F) DELAYED PAYMENTS.—The Adminis16 trator shall not require the repayment of prin17 cipal or interest on a loan made to an eligible 

18 intermediary under the Program during the 2- 

19 year period beginning on the date of the initial 

20 disbursement of funds under that loan. 

21 ‘‘(G) MAXIMUM PARTICIPANTS AND

22 AMOUNTS.—During each of fiscal years 2010, 

23 2011, and 2012, the Administrator may make 

24 loans under the Program— 

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1 ‘‘(i) to not more than 20 eligible inter2 mediaries; and 

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

4 than $20,000,000. 

5 ‘‘(5) LOANS TO SMALL BUSINESS CONCERNS.— 

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

7 through an eligible intermediary, shall make 

8 loans to startup, newly established, and growing 

9 small business concerns for working capital, real 

10 estate, and the acquisition of materials, supplies, 

11 furniture, fixtures, and equipment. 

12 ‘‘(B) MAXIMUM LOAN.—An eligible inter13 mediary may not make a loan under this sub14 section of more than $200,000 to any 1 small 

15 business concern. 

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

17 loan made by an eligible intermediary to a small 

18 business concern under this subsection, may have 

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

20 an interest rate specified by the eligible inter21 mediary in the application of the eligible inter22 mediary for a loan under this subsection. 

23 ‘‘(D) REVIEW RESTRICTIONS.—The Admin24 istrator may not review individual loans made 

25 by an eligible intermediary to a small business 

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1 concern before approval of the loan by the eligi2 ble intermediary. 

3 ‘‘(6) TERMINATION.—The authority of the Ad4 ministrator to make loans under the Program shall 

5 terminate 3 years after the date of enactment of the 

6 Small Business Job Creation and Access to Capital 

7 Act of 2009.’’. 

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

9 days after the date of enactment of this Act, the Adminis10 trator shall issue regulations to carry out section 7(l) of 

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

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

13 to the Administrator for the purposes of carrying out sec14 tion 7(l) of the Small Business Act, as amended by sub15 section (a), shall remain available until expended. 

16 SEC. 302. PROHIBITION ON USING TARP FUNDS OR TAX IN17 CREASES. 

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

19 (b), nothing in this Act or the amendments made by this 

20 Act shall be construed to limit the ability of Congress to 

21 appropriate funds. 

22 (b) TARP FUNDS AND TAX INCREASES.— 

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

24 not be used to carry out this Act or an amendment 

25 made by this Act. 

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

2 ‘‘covered amounts’’ means— 

3 (A) the amounts made available to the Sec4 retary of the Treasury under title I of the Emer5 gency Economic Stabilization Act of 2008 (12 

6 U.S.C. 5201 et seq.) to purchase (under section 

7 101) or guarantee (under section 102) assets 

8 under that Act; and 

9 (B) any revenue increase attributable to 

10 any amendment to the Internal Revenue Code of 

11 1986 made during the period beginning on the 

12 date of enactment of this Act and ending on De13 cember 31, 2010. 

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Calendar No. 634 

111TH CONGRESS 

2D SESSION S. 2869 

[Report No. 111–342] 

A BILL 

To increase loan limits for small business concerns, 

business concerns, and for other purposes. to provide for low interest refinancing for small 

SEPTEMBER 29, 2010 

Reported with an amendment 

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