I 

112TH CONGRESS 

1ST SESSION H. R. 2807 

To transfer unobligated and repaid funds from the Small Business Lending 

Fund Program to the Community Development Financial Institutions 

Fund to continue the program of making capital investments in eligible 

community development financial institutions in order to increase the 

availability of credit for small businesses, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 5, 2011 

Mr. RICHMOND (for himself and Ms. CLARKE of New York) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To transfer unobligated and repaid funds from the Small 

Business Lending Fund Program to the Community Development Financial Institutions Fund to continue the 

program of making capital investments in eligible community development financial institutions in order to increase the availability of credit for small businesses, 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 ‘‘Small Business Lend5 ing to Entrepreneurs for Growth in Underserved PopuVerDate Mar 15 2010 02:06 Aug 06, 2011 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2807.IH H2807

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1 lations Act of 2011’’ or the ‘‘Small Business Leg-Up Act 

2 of 2011’’. 

3 SEC. 2. FINDINGS. 

4 The Congress finds the following: 

5 (1) Families and small businesses in under6 served areas have for generations been unable to ac7 cess affordable credit. 

8 (2) The financial crisis of 2008 only served to 

9 exacerbate efforts by entrepreneurs to access capital 

10 for the purpose of creating jobs and improving eco11 nomic outcomes in the community. 

12 (3) Small business investments revitalize com13 munities by creating jobs but also contributing to 

14 the local tax base, which helps finance investments 

15 in schools, hospitals, infrastructure, and public safe16 ty. 

17 (4) The Community Development Financial In18 stitutions Fund is well placed to make careful, tar19 geted investments in community development finan20 cial institutions for the purposes of improving eco21 nomic outcomes for underserved families across 

22 America. 

23 (5) Providing the Community Development Fi24 nancial Institutions Fund with a robust capital infu25 sion will make efficient use of taxpayer dollars, by 


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1 leveraging Federal investment for the purpose of 

2 small business lending. 

3 SEC. 3. TRANSFER OF FUNDS FROM SMALL BUSINESS 

4 LENDING FUND TO THE CDFI FUND. 

5 (a) UNOBLIGATED FUNDS.—On the date of the expi6 ration of the investment authority described under section 

7 4109(a) of the Small Business Jobs Act of 2010, the Sec8 retary shall transfer all unobligated funds in the Small 

9 Business Lending Fund to the Community Development 

10 Financial Institutions Fund. 

11 (b) PROCEEDS.—Section 4103(b)(3) of the Small 

12 Business Jobs Act of 2010 is amended to read as follows: 

13 ‘‘(3) PROCEEDS TRANSFERRED TO CDFI

14 FUND.—All funds received by the Secretary in con15 nection with purchases made pursuant to paragraph 

16 (1), including principal, interest payments, dividend 

17 payments, and proceeds from the sale of any finan18 cial instrument, shall be transferred to the Commu19 nity Development Financial Institutions Fund.’’. 

20 SEC. 4. SMALL BUSINESS CAPITAL INVESTMENT PROGRAM. 

21 (a) IN GENERAL.—The Riegle Community Develop22 ment and Regulatory Improvement Act of 1994 is amend23 ed by adding after section 108 the following new section: 


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1 ‘‘SEC. 108A. SMALL BUSINESS CAPITAL INVESTMENT PRO2 GRAM TO INCREASE CREDIT AVAILABILITY 

3 FOR SMALL BUSINESSES. 

4 ‘‘(a) SMALL BUSINESS REVOLVING LOAN PRO5 GRAM.— 

6 ‘‘(1) IN GENERAL.—Using amounts described 

7 under subsection (b), the Administrator shall carry 

8 out a Small Business Capital Investment Program 

9 (‘Program’) to make capital investments in eligible 

10 community development financial institutions in 

11 order to increase the availability of credit for small 

12 businesses. 

13 ‘‘(2) STRUCTURE OF THE PROGRAM.—To the 

14 extent practicable, the Administrator shall carry out 

15 the Program in the same manner as the Small Busi16 ness Lending Fund Program authorized under sec17 tion 4103(a)(2) of the Small Business Jobs Act of 

18 2010, except that— 

19 ‘‘(A) all funds received by the Adminis20 trator in connection with purchases made under 

21 the Program, including principal, interest pay22 ments, dividend payments, and proceeds from 

23 the sale of any financial instrument, shall be 

24 deposited into the Fund; 

25 ‘‘(B) eligible community development fi26 nancial institutions may apply to receive a capVerDate Mar 15 2010 02:06 Aug 06, 2011 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2807.IH H2807

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1 ital investment from the Fund in an amount 

2 not exceeding 10 percent of total assets, or such 

3 other percentage as the Administrator deter4 mines to be appropriate; and 

5 ‘‘(C) the authority to make capital invest6 ments in eligible community development finan7 cial institutions shall continue so long as 

8 amounts described under subsection (b) are 

9 available to make such investments. 

10 ‘‘(b) FUNDING.— 

11 ‘‘(1) IN GENERAL.—Notwithstanding any other 

12 provision of this Act, amounts deposited into the 

13 Fund pursuant to section 4(a) of the Small Business 

14 Leg-Up Act of 2011, section 4103(b)(3) of the 

15 Small Business Jobs Act of 2010, or subsection 

16 (a)(2)(A) shall only be available to carry out the 

17 Program established under subsection (a). 

18 ‘‘(2) ADMINISTRATION COSTS.—Interest pay19 ments received under subsection (a)(2)(A) may be 

20 used to pay for the administrative costs of carrying 

21 out the Program. 

22 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

23 There is authorized to be appropriated to the Ad24 ministrator $4,000,000 to carry out the Program. 


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1 ‘‘(c) RULEMAKING.—The Administrator may issue 

2 such regulations as the Administrator determines to be ap3 propriate to carry out this section. 

4 ‘‘(d) ELIGIBLE COMMUNITY DEVELOPMENT FINAN5 CIAL INSTITUTION DEFINED .—For purposes of this sec6 tion, the term ‘eligible community development financial 

7 institution’ means a community development financial in8 stitution with assets of $10,000,000,000 or less, as re9 ported in audited financial statements.’’. 

10 (b) TECHNICAL AMENDMENT.—The table of contents 

11 for the Riegle Community Development and Regulatory 

12 Improvement Act of 1994 is amended by inserting after 

13 the item relating to section 108 the following new item: 

‘‘108A. Small Business Capital Investment Program to increase credit availability for small businesses.’’. 

Æ 


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