II 

111TH CONGRESS 

2D SESSION S. 3432 

To establish a temporary Working Capital Express loan guarantee program 

for small business concerns, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 27 (legislative day, MAY 26), 2010 

Mrs. BOXER introduced the following bill; which was read twice and referred 

to the Committee on Small Business and Entrepreneurship 

A BILL 

To establish a temporary Working Capital Express loan 

guarantee program 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Working Capital Ex5 press Act of 2010’’. 

6 SEC. 2. WORKING CAPITAL EXPRESS PROGRAM. 

7 (a) PROGRAM ESTABLISHED.— 

8 (1) WORKING CAPITAL EXPRESS PROGRAM.— 

9 Section 7(a)(31) of the Small Business Act (15 


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1 U.S.C. 636(a)(31)) is amended by adding at the end 

2 the following: 

3 ‘‘(G) WORKING CAPITAL EXPRESS PRO4 GRAM IN RESPONSE TO ECONOMIC CRISIS.— 

5 ‘‘(i) LOAN GUARANTEES.—The Ad6 ministrator may guarantee loans for work7 ing capital under the Express Loan Pro8 gram made by lenders designated in ac9 cordance with clause (iii)(I) to small busi10 ness concerns that have been in business 

11 for not less than 2 years before the date on 

12 which the small business concern submits 

13 an application for a loan under this sub14 paragraph. 

15 ‘‘(ii) LOAN TERMS.— 

16 ‘‘(I) AMOUNT.—Notwithstanding 

17 subparagraph (D), the Administrator 

18 may guarantee a loan of not more 

19 than $750,000 under this subpara20 graph. 

21 ‘‘(II) GUARANTEE RATE.—Not22 withstanding subparagraph (A)(iii), 

23 the guarantee rate for a loan under 

24 this subparagraph shall be 80 percent. 

25 ‘‘(iii) PROGRAM SAFEGUARDS.— 


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1 ‘‘(I) ELIGIBILITY.—The Adminis2 trator shall, by rule, establish criteria 

3 for the designation of lenders that are 

4 eligible to make a loan guaranteed 

5 under this subparagraph. 

6 ‘‘(II) UNDERWRITING STAND7 ARDS.—The Administrator shall, by 

8 rule, establish underwriting standards 

9 for loans guaranteed under this sub10 paragraph, to ensure that the Admin11 istrator may guarantee new loans 

12 under this subparagraph until Decem13 ber 1, 2011. The standards estab14 lished under this subclause shall re15 quire the borrower to submit income 

16 tax returns to provide verification of 

17 business income. 

18 ‘‘(III) DEFAULT AND DELIN19 QUENCY RATES.—The Administrator 

20 shall— 

21 ‘‘(aa) by rule establish max22 imum default and delinquency 

23 rates permissible for loans made 

24 under this subparagraph; and 


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1 ‘‘(bb) suspend the eligibility 

2 to make a loan guaranteed under 

3 this subparagraph of any lender 

4 that has a default or delinquency 

5 rate grater than the rate estab6 lished under item (aa). 

7 ‘‘(IV) PENALTIES FOR FRAUD.— 

8 Notwithstanding section 16, a lender 

9 that knowingly makes a false state10 ment with respect to the income, as11 sets, or other qualifications of a small 

12 business concern in connection with a 

13 loan or application for a loan guaran14 teed under this subparagraph shall be 

15 fined not more than $500,000, impris16 oned for not more than 5 years, or 

17 both. 

18 ‘‘(iv) AUTHORITY OF PARTICIPATING

19 LENDERS.—A lender designated in accord20 ance with clause (iii) shall have the same 

21 authority with respect to the underwriting 

22 and liquidation of a loan guaranteed under 

23 this subparagraph as a lender participating 

24 in the Certified Lenders Program under 

25 paragraph (19). 


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1 ‘‘(v) PAYMENT OF CLAIMS BY THE

2 ADMINISTRATOR.—The Administrator shall 

3 pay a claim by a lender on a guarantee of 

4 a loan by the Administrator under this 

5 subparagraph, unless the Administrator 

6 determines that— 

7 ‘‘(I) the lender has committed 

8 fraud with respect to the loan; or 

9 ‘‘(II) there is a material error in 

10 the loan origination, servicing, or liq11 uidation process. 

12 ‘‘(vi) TOTAL AMOUNT OF LOANS.— 

13 Not more than 20 percent of the total dol14 lar amount of all loans guaranteed under 

15 this subsection in any fiscal year may be 

16 loan guarantees under this subparagraph. 

17 ‘‘(vii) DEFAULT RATE.—The Adminis18 trator shall calculate the default rate for 

19 loans guaranteed under this subparagraph 

20 separately from the default rate for any 

21 other loans made or guaranteed by the Ad22 ministration. 

23 ‘‘(viii) SELF-SCREENING WEBSITE.— 

24 The Administrator shall establish a website 

25 to allow the owners and operators of small 


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1 business concerns to assess their eligibility 

2 to obtain loans guaranteed under this sub3 paragraph.’’. 

4 (2) CONFORMING AMENDMENT.—Section 

5 7(a)(25)(B) of the Small Business Act (15 U.S.C. 

6 636(a)(25)(B)) is amended by inserting ‘‘, and does 

7 not include loans under paragraph (31)(G)’’ after 

8 ‘‘by law’’. 

9 (b) PROSPECTIVE REPEAL.— 

10 (1) IN GENERAL.—Effective December 1, 2011, 

11 section 7(a) of the Small Business Act (15 U.S.C. 

12 636(a)) is amended— 

13 (A) in paragraph (25)(B), by striking ‘‘, 

14 and does not include loans under paragraph 

15 (31)(G)’’; and 

16 (B) in paragraph (31), by striking sub17 paragraph (G). 

18 (2) PENALTIES.—Notwithstanding paragraph 

19 (1), subclause (IV) of section 7(a)(31)(G)(iii) of the 

20 Small Business Act, as added by this Act, shall con21 tinue to apply on and after December 1, 2011, to 

22 loans guaranteed under section 7(a)(31)(G) of the 

23 Small Business Act. 

Æ 


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