II 

111TH CONGRESS 

2D SESSION S. 2967 

To amend the Internal Revenue Code of 1986 to provide a refundable credit 

for small business job growth, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 28, 2010 

Mr. CARDIN introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a refundable credit for small business job growth, and 

for other purposes. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Boosting Entrepreneurship and New Jobs Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Refundable tax credit for new hires by small businesses. 

Sec. 3. Credit for employee health insurance expenses of small businesses. 

Sec. 4. Surcharge on high income individuals. 

Sec. 5. Direct loans to small business concerns. 


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Sec. 6. Extramural research and development budget of the National Institutes 

of Health. 

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

Sec. 8. Microloan program. 

Sec. 9. Maximum loan amounts under 504 program. 

Sec. 10. Sense of Congress regarding cabinet level status for the Administrator 

of the Small Business Administration. 

Sec. 11. Sense of Congress regarding financial support for small businesses by 

certain financial institutions. 

1 SEC. 2. REFUNDABLE TAX CREDIT FOR NEW HIRES BY 

2 SMALL BUSINESSES. 

3 (a) IN GENERAL.—Subpart C of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to refundable credits) is amended by insert6 ing after section 36A the following new section: 

7 ‘‘SEC. 36B. NEW HIRES BY SMALL BUSINESSES. 

8 ‘‘(a) DETERMINATION OF AMOUNT.—There shall be 

9 allowed as a credit against the tax imposed by this subtitle 

10 for the taxable year an amount equal to 15 percent of the 

11 qualified first-year wages for such year. 

12 ‘‘(b) QUALIFIED WAGES DEFINED.—For purposes of 

13 this section— 

14 ‘‘(1) IN GENERAL.—The term ‘qualified wages’ 

15 means the wages paid or incurred by a qualified 

16 small business during the taxable year to an indi17 vidual who is a qualified small business employee. 

18 ‘‘(2) QUALIFIED FIRST-YEAR WAGES.—The 

19 term ‘qualified first-year wages’ means, with respect 

20 to a qualified small business employee, qualified 

21 wages attributable to service rendered during the 1- 


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1 year period beginning with the day the individual be2 gins work for the employer. 

3 ‘‘(3) ONLY FIRST $20,000 OF WAGES TAKEN

4 INTO ACCOUNT.—The amount of the qualified first5 year wages which may be taken into account with re6 spect to any individual shall not exceed $20,000. 

7 ‘‘(4) WAGES.— 

8 ‘‘(A) IN GENERAL.—The term ‘wages’ has 

9 the meaning given such term by section 51(c). 

10 ‘‘(B) SPECIAL RULES FOR AGRICULTURAL

11 AND RAILWAY LABOR.—If such individual is an 

12 employee to whom subparagraph (A) or (B) of 

13 section 51(h)(1) applies, rules similar to the 

14 rules of such subparagraphs shall apply except 

15 that— 

16 ‘‘(i) such subparagraph (A) shall be 

17 applied by substituting ‘$20,000’ for 

18 ‘$6,000’, and 

19 ‘‘(ii) such subparagraph (B) shall be 

20 applied by substituting ‘$1,666.66’ for 

21 ‘$500’. 

22 ‘‘(c) QUALIFIED SMALL BUSINESS EMPLOYEE.—For 

23 purposes of this section— 

24 ‘‘(1) IN GENERAL.—The term ‘qualified small 

25 business employee’ means— 


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1 ‘‘(A) an individual hired by a qualified 

2 small business who is not an employee within 

3 the meaning of section 401(c)(1), or 

4 ‘‘(B) a part-time employee promoted to 

5 full-time employee status (within the meaning 

6 of section 44(b)) by such business. 

7 ‘‘(2) QUALIFIED SMALL BUSINESS.—The term 

8 ‘qualified small business’ has the meaning given the 

9 term ‘small employer’ by section 4980D(d)(2), deter10 mined by substituting ‘25 employees’ for ‘50 employ11 ees’. 

12 ‘‘(d) MAINTENANCE OF WORKFORCE.—No credit 

13 under this section shall be allowed to any employer for 

14 any taxable year if the total number of employees of such 

15 employer during any quarter of such taxable year is less 

16 than the total number of such employees during the cor17 responding quarter in the preceding taxable year. 

18 ‘‘(e) CERTAIN RULES TO APPLY.—Rules similar to 

19 the rules of section 52, and subsections (d)(11), (f), (g), 

20 (i)(1), (i)(2) (except in the case of an employee described 

21 in subsection (c)(1)(B)), (j), and (k) of section 51, shall 

22 apply for purposes of this section. 

23 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

24 such regulations and guidance as are necessary to carry 

25 out the purposes of this section, including procedures for 


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1 the quarterly payment of the credit allowed under this sec2 tion. 

3 ‘‘(g) TERMINATION.—This section shall not apply to 

4 individuals who begin work for the employer after the date 

5 which is 3 years after the date of the enactment of this 

6 section.’’. 

7 (b) CONFORMING AMENDMENTS.— 

8 (1) Paragraph (2) of section 1324(b) of title 

9 31, United States Code, is amended by inserting 

10 ‘‘36B,’’ after ‘‘36A,’’. 

11 (2) The table of sections for subpart C of part 

12 IV of subchapter A of chapter 1 of the Internal Rev13 enue Code of 1986 is amended by inserting before 

14 the item relating to section 37 the following new 

15 item: 

‘‘Sec. 36B. Initial hires by small businesses.’’. 

16 (c) EFFECTIVE DATE.—The amendments made by 

17 this section shall apply to individuals who begin work for 

18 the employer after the date of the enactment of this Act. 

19 SEC. 3. CREDIT FOR EMPLOYEE HEALTH INSURANCE EX20 PENSES OF SMALL BUSINESSES. 

21 (a) IN GENERAL.—Subpart D of part IV of sub22 chapter A of chapter 1 of the Internal Revenue Code of 

23 1986 (relating to business-related credits) is amended by 

24 inserting after section 45Q the following: 


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1 ‘‘SEC. 45R. EMPLOYEE HEALTH INSURANCE EXPENSES OF 

2 SMALL EMPLOYERS. 

3 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

4 in the case of an eligible small employer, the small em5 ployer health insurance credit determined under this sec6 tion for any taxable year is the amount determined under 

7 subsection (b). 

8 ‘‘(b) HEALTH INSURANCE CREDIT AMOUNT.—Sub9 ject to subsection (c), the amount determined under this 

10 subsection with respect to any eligible small employer is 

11 equal to 35 percent (25 percent in the case of a tax-exempt 

12 eligible small employer) of the aggregate amount of non13 elective contributions the employer made on behalf of its 

14 employees during the taxable year under the arrangement 

15 described in subsection (d)(4) for premiums paid for 

16 health insurance coverage (within the meaning of section 

17 9832(b)(1)) of such employees if each employee taken into 

18 account under paragraph (1) had enrolled in such cov19 erage which had a premium equal to the average premium 

20 (as determined by the Secretary of Health and Human 

21 Services) for the small group market in the State in which 

22 the employer is offering health insurance coverage (or for 

23 such area within the State as is specified by the Sec24 retary). 

25 ‘‘(c) PHASEOUT OF CREDIT AMOUNT BASED ON

26 NUMBER OF EMPLOYEES AND AVERAGE WAGES.—The 


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1 amount of the credit determined under subsection (b) 

2 without regard to this subsection shall be reduced (but not 

3 below zero) by the sum of the following amounts: 

4 ‘‘(1) Such amount multiplied by a fraction the 

5 numerator of which is the total number of full-time 

6 equivalent employees of the employer in excess of 10 

7 and the denominator of which is 15. 

8 ‘‘(2) Such amount multiplied by a fraction the 

9 numerator of which is the average annual wages of 

10 the employer in excess of the dollar amount in effect 

11 under subsection (d)(3)(B) and the denominator of 

12 which is such dollar amount. 

13 ‘‘(d) ELIGIBLE SMALL EMPLOYER.—For purposes of 

14 this section— 

15 ‘‘(1) IN GENERAL.—The term ‘eligible small 

16 employer’ means, with respect to any taxable year, 

17 an employer— 

18 ‘‘(A) which has no more than 25 full-time 

19 equivalent employees for the taxable year, 

20 ‘‘(B) the average annual wages of which do 

21 not exceed an amount equal to twice the dollar 

22 amount in effect under paragraph (3)(B) for 

23 the taxable year, and 

24 ‘‘(C) which has in effect an arrangement 

25 described in paragraph (4). 


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1 ‘‘(2) FULL-TIME EQUIVALENT EMPLOYEES.— 

2 ‘‘(A) IN GENERAL.—The term ‘full-time 

3 equivalent employees’ means a number of em4 ployees equal to the number determined by di5 viding— 

6 ‘‘(i) the total number of hours of serv7 ice for which wages were paid by the em8 ployer to employees during the taxable 

9 year, by 

10 ‘‘(ii) 2,080. 

11 Such number shall be rounded to the next low12 est whole number if not otherwise a whole num13 ber. 

14 ‘‘(B) EXCESS HOURS NOT COUNTED.—If 

15 an employee works in excess of 2,080 hours of 

16 service during any taxable year, such excess 

17 shall not be taken into account under subpara18 graph (A). 

19 ‘‘(C) HOURS OF SERVICE.—The Secretary, 

20 in consultation with the Secretary of Labor, 

21 shall prescribe such regulations, rules, and 

22 guidance as may be necessary to determine the 

23 hours of service of an employee, including rules 

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1 ees who are not compensated on an hourly 

2 basis. 

3 ‘‘(3) AVERAGE ANNUAL WAGES.— 

4 ‘‘(A) IN GENERAL.—The average annual 

5 wages of an eligible small employer for any tax6 able year is the amount determined by divid7 ing— 

8 ‘‘(i) the aggregate amount of wages 

9 which were paid by the employer to em10 ployees during the taxable year, by 

11 ‘‘(ii) the number of full-time equiva12 lent employees of the employee determined 

13 under paragraph (2) for the taxable year. 

14 Such amount shall be rounded to the next low15 est multiple of $1,000 if not otherwise such a 

16 multiple. 

17 ‘‘(B) DOLLAR AMOUNT.—For purposes of 

18 paragraph (1)(B) and subsection (c)(2), the 

19 dollar amount in effect under this paragraph is 

20 $25,000. 

21 ‘‘(4) CONTRIBUTION ARRANGEMENT.—An ar22 rangement is described in this paragraph if it re23 quires an eligible small employer to make a nonelec24 tive contribution on behalf of each employee who en25 rolls in a health plan offered to employees by the 


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1 employer in an amount equal to a uniform percent2 age (not less than 50 percent) of the premium cost 

3 of such plan. 

4 ‘‘(5) SEASONAL WORKER HOURS AND WAGES

5 NOT COUNTED.—For purposes of this subsection— 

6 ‘‘(A) IN GENERAL.—The number of hours 

7 of service worked by, and wages paid to, a sea8 sonal worker of an employer shall not be taken 

9 into account in determining the full-time equiv10 alent employees and average annual wages of 

11 the employer unless the worker works for the 

12 employer on more than 120 days during the 

13 taxable year. 

14 ‘‘(B) DEFINITION OF SEASONAL WORK15 ER.—The term ‘seasonal worker’ means a work16 er who performs labor or services on a seasonal 

17 basis as defined by the Secretary of Labor, in18 cluding workers covered by section 500.20(s)(1) 

19 of title 29, Code of Federal Regulations and re20 tail workers employed exclusively during holiday 

21 seasons. 

22 ‘‘(e) OTHER RULES AND DEFINITIONS.—For pur23 poses of this section— 

24 ‘‘(1) EMPLOYEE.— 


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1 ‘‘(A) CERTAIN EMPLOYEES EXCLUDED.— 

2 The term ‘employee’ shall not include— 

3 ‘‘(i) an employee within the meaning 

4 of section 401(c)(1), 

5 ‘‘(ii) any 2-percent shareholder (as de6 fined in section 1372(b)) of an eligible 

7 small business which is an S corporation, 

8 ‘‘(iii) any 5-percent owner (as defined 

9 in section 416(i)(1)(B)(i)) of an eligible 

10 small business, or 

11 ‘‘(iv) any individual who bears any of 

12 the relationships described in subpara13 graphs (A) through (G) of section 

14 152(d)(2) to, or is a dependent described 

15 in section 152(d)(2)(H) of, an individual 

16 described in clause (i), (ii), or (iii). 

17 ‘‘(B) LEASED EMPLOYEES.—The term 

18 ‘employee’ shall include a leased employee with19 in the meaning of section 414(n). 

20 ‘‘(2) NONELECTIVE CONTRIBUTION.—The term 

21 ‘nonelective contribution’ means an employer con22 tribution other than an employer contribution pursu23 ant to a salary reduction arrangement. 

24 ‘‘(3) WAGES.—The term ‘wages’ has the mean25 ing given such term by section 3121(a) (determined 


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1 without regard to any dollar limitation contained in 

2 such section). 

3 ‘‘(4) AGGREGATION AND OTHER RULES MADE

4 APPLICABLE.— 

5 ‘‘(A) AGGREGATION RULES.—All employ6 ers treated as a single employer under sub7 section (b), (c), (m), or (o) of section 414 shall 

8 be treated as a single employer for purposes of 

9 this section. 

10 ‘‘(B) OTHER RULES.—Rules similar to the 

11 rules of subsections (c), (d), and (e) of section 

12 52 shall apply. 

13 ‘‘(f) CREDIT MADE AVAILABLE TO TAX-EXEMPT EL14 IGIBLE SMALL EMPLOYERS.— 

15 ‘‘(1) IN GENERAL.—In the case of a tax-exempt 

16 eligible small employer, there shall be treated as a 

17 credit allowable under subpart C (and not allowable 

18 under this subpart) the lesser of— 

19 ‘‘(A) the amount of the credit determined 

20 under this section with respect to such em21 ployer, or 

22 ‘‘(B) the amount of the payroll taxes of the 

23 employer during the calendar year in which the 

24 taxable year begins. 


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1 ‘‘(2) TAX-EXEMPT ELIGIBLE SMALL EM2 PLOYER.—For purposes of this section, the term 

3 ‘tax-exempt eligible small employer’ means an eligi4 ble small employer which is any organization de5 scribed in section 501(c) which is exempt from tax6 ation under section 501(a). 

7 ‘‘(3) PAYROLL TAXES.—For purposes of this 

8 subsection— 

9 ‘‘(A) IN GENERAL.—The term ‘payroll 

10 taxes’ means— 

11 ‘‘(i) amounts required to be withheld 

12 from the employees of the tax-exempt eligi13 ble small employer under section 3401(a), 

14 ‘‘(ii) amounts required to be withheld 

15 from such employees under section 

16 3101(b), and 

17 ‘‘(iii) amounts of the taxes imposed on 

18 the tax-exempt eligible small employer 

19 under section 3111(b). 

20 ‘‘(B) SPECIAL RULE.—A rule similar to 

21 the rule of section 24(d)(2)(C) shall apply for 

22 purposes of subparagraph (A). 

23 ‘‘(g) APPLICATION OF SECTION FOR CALENDAR

24 YEARS 2010, 2011, AND 2012.—This section shall apply 

25 for any taxable year beginning in 2010, 2011, or 2012. 


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1 ‘‘(h) INSURANCE DEFINITIONS.—Any term used in 

2 this section which is also used in the Public Health Service 

3 Act shall have the meaning given such term by such Act. 

4 ‘‘(i) REGULATIONS.—The Secretary shall prescribe 

5 such regulations as may be necessary to carry out the pro6 visions of this section, including regulations to prevent the 

7 avoidance of the limitations under subsection (c) through 

8 the use of multiple entities.’’. 

9 (b) CREDIT TO BE PART OF GENERAL BUSINESS

10 CREDIT.—Section 38(b) of the Internal Revenue Code of 

11 1986 (relating to current year business credit) is amended 

12 by striking ‘‘plus’’ at the end of paragraph (34), by strik13 ing the period at the end of paragraph (35) and inserting 

14 ‘‘, plus’’, and by inserting after paragraph (35) the fol15 lowing: 

16 ‘‘(36) the small employer health insurance cred17 it determined under section 45R.’’. 

18 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN19 IMUM TAX.—Section 38(c)(4)(B) of the Internal Revenue 

20 Code of 1986 (defining specified credits) is amended by 

21 redesignating clauses (vi), (vii), and (viii) as clauses (vii), 

22 (viii), and (ix), respectively, and by inserting after clause 

23 (v) the following new clause: 

24 ‘‘(vi) the credit determined under sec25 tion 45R,’’. 


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1 (d) DISALLOWANCE OF DEDUCTION FOR CERTAIN

2 EXPENSES FOR WHICH CREDIT ALLOWED.— 

3 (1) IN GENERAL.—Section 280C of the Internal 

4 Revenue Code of 1986 (relating to disallowance of 

5 deduction for certain expenses for which credit al6 lowed) is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(g) CREDIT FOR EMPLOYEE HEALTH INSURANCE

9 EXPENSES OF SMALL EMPLOYERS.—No deduction shall 

10 be allowed for that portion of the premiums for health in11 surance coverage paid by an employer which is equal to 

12 the amount of the credit determined under section 45R(a) 

13 with respect to the premiums.’’. 

14 (2) DEDUCTION FOR EXPIRING CREDITS.—Sec15 tion 196(c) of such Code is amended by striking 

16 ‘‘and’’ at the end of paragraph (12), by striking the 

17 period at the end of paragraph (13) and inserting ‘‘, 

18 and’’, and by adding at the end the following new 

19 paragraph: 

20 ‘‘(14) the small employer health insurance cred21 it determined under section 45R(a).’’. 

22 (e) CLERICAL AMENDMENT.—The table of sections 

23 for subpart D of part IV of subchapter A of chapter 1 

24 of the Internal Revenue Code of 1986 is amended by add25 ing at the end the following: 

‘‘Sec. 45R. Employee health insurance expenses of small employers.’’. 


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1 (f) EFFECTIVE DATES.— 

2 (1) IN GENERAL.—The amendments made by 

3 this section shall apply to amounts paid or incurred 

4 in taxable years beginning after December 31, 2009. 

5 (2) MINIMUM TAX.—The amendments made by 

6 subsection (c) shall apply to credits determined 

7 under section 45R of the Internal Revenue Code of 

8 1986 in taxable years beginning after December 31, 

9 2009, and to carrybacks of such credits. 

10 SEC. 4. SURCHARGE ON HIGH INCOME INDIVIDUALS. 

11 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

12 Internal Revenue Code of 1986 is amended by adding at 

13 the end the following new part: 

14 ‘‘PART VIII—SURCHARGE ON HIGH INCOME 

15 INDIVIDUALS 

‘‘Sec. 59B. Surcharge on high income individuals. 

16 ‘‘SEC. 59B. SURCHARGE ON HIGH INCOME INDIVIDUALS. 

17 ‘‘(a) GENERAL RULE.—In the case of a taxpayer 

18 other than a corporation, there is hereby imposed (in addi19 tion to any other tax imposed by this subtitle) a tax equal 

20 to the applicable percentage of so much of the modified 

21 adjusted gross income of the taxpayer as exceeds 

22 $1,000,000. 

23 ‘‘(b) TAXPAYERS NOT MAKING A JOINT RETURN.— 

24 In the case of any taxpayer other than a taxpayer making 


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1 a joint return under section 6013 or a surviving spouse 

2 (as defined in section 2(a)), subsection (a) shall be applied 

3 by substituting ‘$500,000’ for ‘$1,000,000’. 

4 ‘‘(c) APPLICABLE PERCENTAGE.—For purposes of 

5 subsection (a), the applicable percentage for any taxable 

6 year shall be the percentage necessary to ensure that the 

7 effect of the provisions of, and amendments made by, the 

8 Boosting Entrepreneurship and New Jobs Act are and re9 main budget neutral. 

10 ‘‘(d) MODIFIED ADJUSTED GROSS INCOME.—For 

11 purposes of this section, the term ‘modified adjusted gross 

12 income’ means adjusted gross income reduced by any de13 duction (not taken into account in determining adjusted 

14 gross income) allowed for investment interest (as defined 

15 in section 163(d)). In the case of an estate or trust, ad16 justed gross income shall be determined as provided in sec17 tion 67(e). 

18 ‘‘(e) SPECIAL RULES.— 

19 ‘‘(1) NONRESIDENT ALIEN.—In the case of a 

20 nonresident alien individual, only amounts taken 

21 into account in connection with the tax imposed 

22 under section 871(b) shall be taken into account 

23 under this section. 

24 ‘‘(2) CITIZENS AND RESIDENTS LIVING

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1 section (a) (after the application of subsection (b)) 

2 shall be decreased by the excess of— 

3 ‘‘(A) the amounts excluded from the tax4 payer’s gross income under section 911, over 

5 ‘‘(B) the amounts of any deductions or ex6 clusions disallowed under section 911(d)(6) 

7 with respect to the amounts described in sub8 paragraph (A). 

9 ‘‘(3) CHARITABLE TRUSTS.—Subsection (a) 

10 shall not apply to a trust all the unexpired interests 

11 in which are devoted to one or more of the purposes 

12 described in section 170(c)(2)(B). 

13 ‘‘(4) NOT TREATED AS TAX IMPOSED BY THIS

14 CHAPTER FOR CERTAIN PURPOSES.—The tax im15 posed under this section shall not be treated as tax 

16 imposed by this chapter for purposes of determining 

17 the amount of any credit under this chapter or for 

18 purposes of section 55.’’. 

19 (b) CLERICAL AMENDMENT.—The table of parts for 

20 subchapter A of chapter 1 of the Internal Revenue Code 

21 of 1986 is amended by adding at the end the following 

22 new item: 

‘‘PART VIII. SURCHARGE ON HIGH INCOME INDIVIDUALS.’’. 

23 (c) SECTION 15 NOT TO APPLY.—The amendment 

24 made by subsection (a) shall not be treated as a change 


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1 in a rate of tax for purposes of section 15 of the Internal 

2 Revenue Code of 1986. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 December 31, 2009. 

6 SEC. 5. DIRECT LOANS TO SMALL BUSINESS CONCERNS. 

7 (a) DEFINITIONS.—In this section— 

8 (1) the term ‘‘Administrator’’ means the Ad9 ministrator of the Small Business Administration; 

10 (2) the term ‘‘eligible small business concern’’ 

11 means a small business concern with fewer than 25 

12 employees; 

13 (3) the term ‘‘Secretary’’ means the Secretary 

14 of the Treasury; and 

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

16 meaning given that term under section 3 of the 

17 Small Business Act (15 U.S.C. 632). 

18 (b) LOAN PROGRAM ESTABLISHED.—The Adminis19 trator and the Secretary shall jointly establish a program 

20 to make loans to eligible small business concerns. 

21 (c) TERMS AND CONDITIONS.—A loan under this sec22 tion shall have the same terms and conditions as, and may 

23 be used for any purpose authorized for, a direct loan under 

24 section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 

25 as amended by this Act. 


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1 (d) FUNDING.—Of amounts made available under 

2 section 115 of the Emergency Economic Stabilization Act 

3 of 2008 (12 U.S.C. 5225) and not otherwise obligated, 

4 $30,000,000,000, shall be available to the Administrator 

5 and the Secretary to carry out this section. 

6 SEC. 6. EXTRAMURAL RESEARCH AND DEVELOPMENT 

7 BUDGET OF THE NATIONAL INSTITUTES OF 

8 HEALTH. 

9 Title VIII of division A of the American Recovery and 

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

11 176) is amended in the matter under the heading ‘‘OFFICE

12 OF THE DIRECTOR’’ under the heading ‘‘NATIONAL INSTI13 TUTES OF HEALTH’’ under the heading ‘‘DEPARTMENT 

14 OF HEALTH AND HUMAN SERVICES’’, by inserting 

15 after ‘‘638(n)(1):’’ the following: ‘‘Provided further, That 

16 not later than September 30, 2010, of the amount appro17 priated under this heading, $150,000,000 shall be obli18 gated to be expended with the programs of the National 

19 Institutes of Health described in the previous proviso:’’. 

20 SEC. 7. SECTION 7(a) BUSINESS LOANS. 

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

22 636(a)) is amended— 

23 (1) in paragraph (2)(A), by striking ‘‘equal 

24 to—’’ and all that follows and inserting equal to ‘‘90 


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1 percent of the balance of the financing outstanding 

2 at the time of the disbursement of the loan.’’; and 

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

4 ‘‘$1,500,000 (or if the gross loan amount would ex5 ceed $2,000,000’’ and inserting ‘‘$4,500,000 (or if 

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

7 SEC. 8. MICROLOAN PROGRAM. 

8 (a) MARKETING, MANAGEMENT, AND TECHNICAL

9 ASSISTANCE GRANTS.—Section 7(m)(4) of the Small 

10 Business Act (15 U.S.C. 636(m)(4)) is amended— 

11 (1) in subparagraph (A)— 

12 (A) in the first sentence, by striking ‘‘and 

13 subject to subparagraph (B)’’; and 

14 (B) in the second sentence— 

15 (i) by striking ‘‘each intermediary 

16 meeting the requirements of subparagraph 

17 (B)’’ and inserting ‘‘an intermediary’’; and 

18 (ii) by striking ‘‘25 percent’’ and in19 serting ‘‘50 percent’’; 

20 (2) by striking subparagraph (B); and 

21 (3) by striking subparagraph (C)(iii). 

22 (b) MICROLOAN AMOUNTS.—Section 7(m) of the 

23 Small Business Act (15 U.S.C. 636(m)) is amended— 

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

25 ‘‘$35,000’’ and inserting ‘‘$50,000’’; 


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1 (2) in paragraph (3)(E), by striking ‘‘$35,000’’ 

2 each place it appears and inserting ‘‘$50,000’’; and 

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

4 ‘‘$35,000’’ and inserting ‘‘$50,000’’. 

5 SEC. 9. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM. 

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

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

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

9 inserting ‘‘$5,000,000’’; 

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

11 inserting ‘‘$5,000,000’’; and 

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

13 inserting ‘‘$5,500,000’’. 

14 SEC. 10. SENSE OF CONGRESS REGARDING CABINET LEVEL 

15 STATUS FOR THE ADMINISTRATOR OF THE 

16 SMALL BUSINESS ADMINISTRATION. 

17 It is the sense of Congress that the President should 

18 designate the Administrator of the Small Business Admin19 istration to serve as a member of the Cabinet. 

20 SEC. 11. SENSE OF CONGRESS REGARDING FINANCIAL SUP21 PORT FOR SMALL BUSINESSES BY CERTAIN 

22 FINANCIAL INSTITUTIONS. 

23 It is the sense of Congress that— 

24 (1) financial institutions that have benefitted 

25 from the support of the Federal Government have a 


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1 responsibility to bolster the economy of the United 

2 States by providing needed capital to small business 

3 concerns; and 

4 (2) well-capitalized banks, which have returned 

5 to profitability and have the resources to increase 

6 access to capital, should adapt their lending prac7 tices to ensure that qualified small business concerns 

8 can grow and the economy of the United States can 

9 continue to recover. 

Æ 


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