Community Lending and Small Business Jobs Act of 2013

To transfer funds to the Community Development Financial Institutions Fund to increase the availability of credit for small businesses, to improve the microenterprise technical assistance and capacity building grant program, to establish an Office of Youth Entrepreneurship in the Small Business Administration, and for other purposes. 1. Short title This Act may be cited as the Community Lending and Small Business Jobs Act of 2013 I Small Business Leg-Up Act of 2013 101. Short title This title may be cited as the Small Business Lending to Entrepreneurs for Growth in Underserved Populations Act of 2013 Small Business Leg-Up Act of 2013 102. Findings The Congress finds the following: (1) Families and small businesses in under-served areas have for generations been unable to access affordable credit. (2) The financial crisis of 2008 only served to exacerbate efforts by entrepreneurs to access capital for the purpose of creating jobs and improving economic outcomes in the community. (3) Small business investments revitalize communities by creating jobs but also contributing to the local tax base, which helps finance investments in schools, hospitals, infrastructure, and public safety. (4) The Community Development Financial Institutions Fund is well placed to make careful, targeted investments in community development financial institutions for the purposes of improving economic outcomes for underserved families across America. (5) Providing the Community Development Financial Institutions Fund with a robust capital infusion will make efficient use of taxpayer dollars, by leveraging Federal investment for the purpose of small business lending. 103. Transfer of Funds from Small Business Lending Fund to the CDFI Fund (a) Unobligated funds On the date of the expiration of the investment authority described under section 4109(a) of the Small Business Jobs Act of 2010, the Secretary shall transfer all unobligated funds in the Small Business Lending Fund to the Community Development Financial Institutions Fund. (b) Proceeds Section 4103(b)(3) of the Small Business Jobs Act of 2010 is amended to read as follows: (3) Proceeds transferred to CDFI Fund All funds received by the Secretary in connection with purchases made pursuant to paragraph (1), including principal, interest payments, dividend payments, and proceeds from the sale of any financial instrument, shall be transferred to the Community Development Financial Institutions Fund. . 104. Small Business Capital Investment Program (a) In general The Riegle Community Development and Regulatory Improvement Act of 1994 is amended by inserting after section 108 the following: 108A. Small Business Capital Investment Program to increase credit availability for small businesses (a) Small Business Revolving Loan Program (1) In general Using amounts described under subsection (b), the Administrator shall carry out a Small Business Capital Investment Program ( Program (2) Structure of the Program To the extent practicable, the Administrator shall carry out the Program in the same manner as the Small Business Lending Fund Program authorized under section 4103(a)(2) of the Small Business Jobs Act of 2010, except that— (A) all funds received by the Administrator in connection with purchases made under the Program, including principal, interest payments, dividend payments, and proceeds from the sale of any financial instrument, shall be deposited into the Fund; (B) eligible community development financial institutions may apply to receive a capital investment from the Fund in an amount not exceeding 10 percent of total assets, or such other percentage as the Administrator determines to be appropriate; and (C) the authority to make capital investments in eligible community development financial institutions shall continue so long as amounts described under subsection (b) are available to make such investments. (b) Funding (1) In general Notwithstanding any other provision of this Act, amounts deposited into the Fund pursuant to section 4(a) of the Small Business Leg-Up Act of 2013, section 4103(b)(3) of the Small Business Jobs Act of 2010, or subsection (a)(2)(A) shall only be available to carry out the Program established under subsection (a). (2) Administration costs Interest payments received under subsection (a)(2)(A) may be used to pay for the administrative costs of carrying out the Program. (3) Authorization of appropriations There is authorized to be appropriated to the Administrator $4,000,000 to carry out the Program. (c) Rulemaking The Administrator may issue such regulations as the Administrator determines to be appropriate to carry out this section. (d) Eligible community development financial institution defined For purposes of this section, the term eligible community development financial institution . (b) Technical amendment The table of contents for the Riegle Community Development and Regulatory Improvement Act of 1994 is amended by inserting after the item relating to section 108 the following new item: Sec. 108A. Small Business Capital Investment Program to increase credit availability for small businesses. . II Microenterprise and Youth Entrepreneurship Development Act of 2013 201. Short title This title may be cited as the Microenterprise and Youth Entrepreneurship Development Act of 2013 202. Microenterprise Technical Assistance and Capacity Building Program (a) Definitions Section 172(5) of the Riegle Community Development and Regulatory Improvement Act of 1994 ( 15 U.S.C. 6901(5) (1) in subparagraph (B) by striking or (2) in subparagraph (C) by striking the period at the end and inserting ; or (3) by adding at the end the following: (D) an entrepreneur that operates a business or intends to operate a business in an investment area (as such term is defined in section 103(16) of this Act). . (b) Uses of assistance Section 174 of the Riegle Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6903) is amended— (1) in paragraph (3) by striking and (2) by redesignating paragraph (4) as paragraph (5); and (3) by inserting after paragraph (3) the following: (4) to advertise in print, electronic, and other media the training and technical assistance provided under paragraph (1); and . (c) Targeted assistance Section 176(b) of the Riegle Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6905(b)) is amended by striking 50 percent 60 percent (d) Matching requirements Section 177(c) of the Riegle Community Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6906(c)) is amended by adding at the end the following: (3) Consideration In determining whether to reduce or eliminate matching requirements under paragraph (1), the Administrator shall consider the impact of the economic crisis of 2007 through 2009 on the geographic area in which an applicant operates. . (e) Report Not later than 180 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report describing recommendations for improving the application and grant making process of the microenterprise technical assistance and capacity building grant program (carried out under subtitle C of title I of the Riegle Community Development and Regulatory Improvement Act of 1994), including recommendations, developed in consultation with stakeholders, for streamlining the application and grant making process of that program. (f) Microenterprise coordinator (1) Establishment Not later than 1 year after the date of enactment of this Act, the Administrator shall establish in the Small Business Administration the position of Microenterprise Coordinator. (2) Duties The Microenterprise Coordinator shall— (A) work to ensure that the contributions of microenterprises to the economy are maximized; (B) work to enhance, support, and coordinate the programs of the Federal Government providing assistance to microenterprises, including Federal technical assistance programs; (C) work to ensure that underserved entrepreneurs are included in the programs of the Federal Government providing assistance to microenterprises; (D) make available to the public annually a comprehensive list and description of each Federal program that provides assistance to microenterprises; and (E) encourage public-private partnerships that support entrepreneurship. (3) Microenterprise defined In this subsection, the term microenterprise 203. Office of Youth Entrepreneurship (a) Establishment Not later than 1 year after the date of enactment of this Act, the Administrator of the Small Business Administration shall establish an Office of Youth Entrepreneurship (in this section referred to as the Office (b) Director The Administrator shall appoint a Director of Youth Entrepreneurship (in this section referred to as the Director (c) Duties The Director shall— (1) carry out the youth entrepreneurship technical assistance grant program described in subsection (d); (2) carry out the youth entrepreneurship curriculum grant program described in subsection (e); (3) promote the growth of youth entrepreneurship by establishing public-private partnerships and carrying out advertising campaigns; (4) sponsor and support State and national youth entrepreneurship competitions that raise awareness of the importance of small business development; (5) study and promote Federal activities that support entrepreneurship education; and (6) support the establishment of public and private youth entrepreneurship education and mentoring opportunities. (d) Youth entrepreneurship technical assistance grant program The Director shall establish a program under which the Director may make grants to assist entities, including nonprofit microenterprise development organizations, to provide individuals under 25 years of age with technical assistance related to entrepreneurship. (e) Youth entrepreneurship curriculum grant program (1) In general The Director shall establish a program under which the Director may make grants to a covered entity to assist the development, improvement, or implementation of a youth entrepreneurship curriculum that includes information on the topics of— (A) securing capital and borrowing; (B) business plan conception and drafting; (C) accounting; (D) management; and (E) marketing. (2) Application process To be eligible for a grant described in paragraph (1), a covered entity shall submit to the Director an application at such time, in such manner, and containing such information as the Director may require, except that the application shall include at least— (A) a description of the curriculum to be developed, improved, or implemented; (B) a description of how grant funds will be used; (C) a description of goals relating to the use of grant funds and the curriculum to be developed, improved, or implemented; and (D) a description of how progress will be measured with respect to the goals described in subparagraph (C). (3) Covered entity defined In this subsection, the term covered entity (f) Investment areas (1) In general The Director shall ensure that at least 25 percent of the amounts made available to carry out the Office each fiscal year are used to assist youth in investment areas. (2) Investment area defined In this subsection, the term investment area (g) Student loan assistance Not later than 180 days after the date of enactment of this Act, the Director, in consultation with the Secretary of Education, shall submit to Congress a report that includes detailed recommendations for legislation— (1) establishing a program to forgive student loans in a manner that assists youth entrepreneurship by making available capital for business formation; and (2) establishing a program to defer student loan repayments in a manner that assists youth entrepreneurship by making available capital for business formation. 204. GAO study and report (a) Study The Comptroller General of the United States shall conduct a study on— (1) the economic impact of allowing youth entrepreneurs to defer student loan repayments to make available capital for business formation; (2) the economic impact of increasing the participation of individuals under 25 years of age in the microloan program of the Small Business Administration (carried out under section 7(m) of the Small Business Act ( 15 U.S.C. 636(m) (3) alternative methods for measuring creditworthiness that may assist youth entrepreneurship; and (4) actions Congress should consider to promote youth entrepreneurship. (b) Report Not later than 180 days after the date of enactment of this Act, the Comptroller General shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report on the results of the study conducted under subsection (a).

Summary: Community Lending and Small Business Jobs Act of 2013 - Small Business Lending to Entrepreneurs for Growth in Underserved Populations Act of 2013 or the Small Business Leg-Up Act of 2013 - Requires, upon the expiration of investment authority for the Small Business Lending Fund Program provided in the Small Business Jobs Act of 2010, that all unobligated funds in the Small Business Lending Fund be transferred to the Community Development Financial Institutions (CDFI) Fund. Directs that all funds received in connection with certain purchases of preferred stock and other financial instruments pursuant to such authority be transferred to the CDFI Fund. Amends the Riegle Community Development and Regulatory Improvement Act of 1994 to direct the Administrator of the CDFI Fund to carry out a Small Business Capital Investment (SBCI) Program (a small business revolving loan program) to continue making capital investments in eligible community development financial institutions in order to increase the availability of credit for small businesses. Requires that: (1) all funds the CDFI Fund Administrator receives in connection with SBCI Program purchases be deposited in the CDFI Fund, and (2) the authority to make such capital investments continue so long as specified funding amounts are available. Allows eligible community development financial institutions (with maximum assets of $10 billion as reported in audited financial statements) to apply to receive a capital investment of up to 10% of total assets, or another appropriate percentage determined by the CDFI Fund Administrator. Directs the CDFI Fund Administrator, to the extent practicable and except as otherwise provided, to carry out the SBCI Program in the same manner as the Small Business Lending Fund Program. Microenterprise and Youth Entrepreneurship Development Act of 2013 - Expands the definition of &quot;disadvantaged entrepreneur,&quot; for purposes of the microenterprise technical assistance and capacity building grant program, to include a microentrepreneur operating or intending to operate a business in an investment area. Increases to 60% (currently, 50%) the minimum percentage of such grants required to be used to benefit very low-income persons, including those residing on Indian reservations. Requires the Administrator of the Small Business Administration (SBA) to consider the impact of the 2007-2009 economic crisis on an applicant's geographic area when deciding whether to reduce or eliminate matching requirements for applicants with severe constraints on available funding sources. Directs the SBA Administrator to establish an SBA Microenterprise Coordinator position. Requires the SBA Administrator to establish an Office of Youth Entrepreneurship and appoint a Director to carry out: (1) the youth entrepreneur technical assistance grant program to make grants to assist entities, including nonprofit microenterprise development organizations, to provide individuals under 25 years of age with technical assistance related to entrepreneurship; and (2) the youth entrepreneurship curriculum grant program to make grants to applying local educational agencies of states and federally recognized Indian tribes.