(3) reforming Fannie Mae and Freddie Mac 
should be a top priority for Congress; and 
(4) the Inspector General for Treasury should 
investigate the role that the Department of the 
Treasury has in decisions by community banks to in-
vest in GSE stock. 
TITLE III—TAX RELIEF 
SEC. 301. TAX RELIEF. 
(a) EXTENSION OF CERTAIN TAX PROVISIONS.—The 
Secretary of the Treasury or the delegate of the Secretary 
shall treat as extended, with respect to any taxpayer that 
is a small business concern (as such term is defined in 
section 3(a) of the Small Business Act (15 U.S.C. 632(a)), 
until at least December 31, 2011, each of the following 
tax provisions, as identified by the Secretary: 
(1) The 5-year net operating loss carryback. 
(2) The 15-year recovery period for qualified 
leasehold improvement property, qualified restaurant 
property, and qualified retail improvement property. 
(3) Bonus/Accelerated Depreciation. 
(4) Enhanced section 179 expensing limits. 
(5) Current tax law treatment of carried inter-
est. 
(6) Current tax law treatment of financial 
transactions. 
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(b) EXTENSION
OF RESEARCH CREDIT; ALTER-
NATIVE SIMPLIFIED RESEARCH CREDIT INCREASED AND 
MADE PERMANENT.— 
(1) EXTENSION OF CREDIT.— 
(A) IN GENERAL.—Subparagraph (B) of 
section 41(h)(1) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘December 31, 
2009’’ and inserting ‘‘December 31, 2010’’. 
(B) CONFORMING AMENDMENT.—Subpara-
graph (D) of section 45C(b)(1) of such Code is 
amended by striking ‘‘December 31, 2009’’ and 
inserting ‘‘December 31, 2010’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to amounts 
paid or incurred after December 31, 2009. 
(2) 
ALTERNATIVE
SIMPLIFIED
RESEARCH 
CREDIT INCREASED AND MADE PERMANENT.— 
(A) INCREASED
CREDIT.—Subparagraph 
(A) of section 41(c)(5) of such Code (relating 
to election of alternative simplified credit) is 
amended by striking ‘‘14 percent (12 percent in 
the case of taxable years ending before January 
1, 2009)’’ and inserting ‘‘20 percent’’. 
(B) CREDIT MADE PERMANENT.— 
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(i) IN GENERAL.—Subsection (h) of 
section 41 of such Code is amended by re-
designating the paragraph (2) relating to 
computation of taxable year in which credit 
terminates as paragraph (4) and by insert-
ing before such paragraph the following 
new paragraph: 
‘‘(3) TERMINATION NOT TO APPLY TO ALTER-
NATIVE SIMPLIFIED CREDIT.—Paragraph (1) shall 
not apply to the credit determined under subsection 
(c)(5).’’. 
(ii) 
CONFORMING
AMENDMENT.— 
Paragraph (4) of section 41(h) of such 
Code, as redesignated by subparagraph 
(A), is amended to read as follows: 
‘‘(4) COMPUTATION
FOR
TAXABLE
YEAR
IN 
WHICH CREDIT TERMINATES.—In the case of any 
taxable year with respect to which this section ap-
plies to a number of days which is less than the total 
number of days in such taxable year, the amount de-
termined under subsection (c)(1)(B) with respect to 
such taxable year shall be the amount which bears 
the same ratio to such amount (determined without 
regard to this paragraph) as the number of days in 
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such taxable year to which this section applies bears 
to the total number of days in such taxable year.’’. 
(C) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall apply to taxable 
years ending after December 31, 2008. 
(c) INCREASE IN AMOUNT ALLOWED AS DEDUCTION 
FOR START-UP EXPENDITURES.— 
(1) IN
GENERAL.—Subsection (b) of section 
195 of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following: 
‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BE-
GINNING IN 2009, 2010, OR 2011.—In the case of a 
taxable year beginning in 2009, 2010, or 2011, 
paragraph (1)(A)(ii) shall be applied— 
‘‘(A) 
by 
substituting 
‘$20,000’ 
for 
‘$5,000’; and 
‘‘(B) 
by 
substituting 
‘$75,000’ 
for 
‘$50,000’.’’. 
(2) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred in taxable years beginning after the date of 
the enactment of this Act. 
(d) TEMPORARY EXCLUSION OF 100 PERCENT OF 
GAIN ON CERTAIN SMALL BUSINESS STOCK.— 
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(1) IN
GENERAL.—Subsection (a) of section 
1202 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
paragraph: 
‘‘(4) SPECIAL
100
PERCENT
EXCLUSION.—In 
the case of qualified small business stock acquired 
after March 15, 2010, and before January 1, 
2012— 
‘‘(A) paragraph (1) shall be applied by 
substituting ‘100 percent’ for ‘50 percent’, 
‘‘(B) paragraph (2) shall not apply, and 
‘‘(C) paragraph (7) of section 57(a) shall 
not apply.’’. 
(2) CONFORMING
AMENDMENTS.—Paragraph 
(3) of section 1202(a) of such Code is amended— 
(A) by striking ‘‘after the date of the en-
actment of this paragraph and before January 
1, 2011’’ and inserting ‘‘after February 17, 
2009, and before March 16, 2010’’; and 
(B) by striking ‘‘SPECIAL RULES FOR 2009 
AND 2010’’ in the heading and inserting ‘‘SPE-
CIAL 75 PERCENT EXCLUSION’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this section shall apply to stock acquired after 
March 15, 2010. 
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TITLE IV—EASE REGULATORY 
BURDEN 
SEC. 401. EASE REGULATORY BURDEN. 
(a) 
IN
GENERAL.—The 
Administrator, 
acting 
through the Chief Counsel of the Office of Advocacy of 
the Small Business Administration, is authorized to pro-
vide such support as may be necessary with regard to any 
Federal regulation to ensure that a small business concern 
is not required to expend more than a total of 200 man- 
hours annually on applications, filings, petitions, or other 
paperwork submitted to Federal departments or agencies. 
(b) COMMONLY REQUIRED INFORMATION FORM.— 
Support provided under subsection (a) shall include the 
establishment of a form on the public Internet Web site 
of the Administrator, by means of which a small business 
concern may provide to the Administrator information 
that the Administrator determines to be frequently re-
quired as part of any applications, filings, petitions, or 
other paperwork described in subsection (a). The Adminis-
trator shall use information so provided to assist in the 
expedited completion of such applications, filings, peti-
tions, or other paperwork. 
(c) GAO REPORT.—The Comptroller General of the 
United States shall conduct a study of each regulation of 
each Federal agency or department to determine the bur-
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den that such regulation imposes on small business con-
cerns. The Comptroller General shall submit a report con-
taining information on such burden to the Administrator 
not later than the date that is 9 months after the date 
of enactment of this Act. 
(d) SBA RECOMMENDATIONS.—Not later than 6 
months after receiving the report under subsection (c), the 
Administrator shall publish and maintain on the public 
Internet Web site of the Administrator recommendations 
on how to reduce the burden imposed by such regulation 
on small business concerns. 
(e) REDUCTION OF PAPERWORK.—In carrying out 
any program under the Small Business Act or the Small 
Business Investment Act of 1958, the Administrator, act-
ing through the Chief Counsel of the Office of Advocacy 
in the Small Business Administration, shall take any ac-
tions the Administrator determines appropriate to reduce 
the amount of paperwork (including any application, fil-
ing, or petition) that a small business concern may be re-
quired to complete by any Federal department or agency. 
Such steps shall include providing for the replacement of 
such paperwork with electronic or telephone filing or re-
porting. 
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TITLE V—EXPAND ACCESS TO 
CREDIT/LENDING 
SEC. 501. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This title may be cited as the 
‘‘Small Business Financing and Investment Act of 2010’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this title is as follows: 
Sec. 501. Short title; table of contents. 
Subtitle A—Small Business Lending Enhancements 
Sec. 511. Small lender outreach program. 
Sec. 512. Rural lending outreach program. 
Sec. 513. Community Express Program made permanent. 
Sec. 514. Increased veteran participation program made permanent. 
Sec. 515. Leasing policy. 
Sec. 516. National lender training program. 
Sec. 517. Applications for repurchase of loans. 
Sec. 518. Alternative size standard. 
Sec. 519. Pilot program authority. 
Sec. 520. Loans to cooperatives. 
Sec. 521. Capital backstop program. 
Sec. 522. Loans to finance goodwill. 
Sec. 523. Appellate process and ombudsman. 
Sec. 524. Extension of recovery and relief loan benefits. 
Sec. 525. Reduced documentation for business stabilization loans. 
Sec. 526. Expanded eligibility for business stabilization loans. 
Sec. 527. Increased amount of business stabilization loans. 
Sec. 528. Extension of business stabilization loans. 
Sec. 529. Study and report on business stabilization loans. 
Sec. 530. Delayed repayment for small business concerns in areas with high un-
employment. 
Sec. 531. SBA secondary market lending authority made permanent. 
Sec. 532. SBA secondary market lending authority expanded. 
Sec. 533. Increased loan limits. 
Sec. 534. Real estate appraisals. 
Sec. 535. Additional support for Express Loan Program. 
Sec. 536. Loans used to purchase unoccupied manufacturing centers or equip-
ment. 
Sec. 537. 100 percent guarantee for small business concerns owned and con-
trolled by veterans. 
Sec. 538. Deferred repayment for certain small business concerns. 
Sec. 539. Authorization of appropriations. 
Subtitle B—CDC Economic Development Loan Program 
CHAPTER 1—GENERAL PROVISIONS 
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Sec. 541. Program levels. 
Sec. 542. Definitions. 
CHAPTER 2—CERTIFIED DEVELOPMENT COMPANIES 
Sec. 551. Certified development companies. 
Sec. 552. Certified development company; operational requirements. 
Sec. 553. Accredited lenders program. 
Sec. 554. Premier certified lender program. 
Sec. 555. Multi-State operations. 
Sec. 556. Guaranty of debentures. 
Sec. 557. Economic development through debentures. 
Sec. 558. Project funding requirements. 
Sec. 559. Private debenture sales and pooling of debentures. 
Sec. 560. Foreclosure and liquidation of loans. 
Sec. 561. Reports and regulations. 
Sec. 562. Program name. 
CHAPTER 3—MISCELLANEOUS 
Sec. 571. Report on standard operating procedures. 
Sec. 572. Alternative size standard. 
Subtitle C—Microlending Expansion 
Sec. 581. Microloan credit building initiative. 
Sec. 582. Flexible credit terms. 
Sec. 583. Increased program participation. 
Sec. 584. Increased limit on intermediary borrowing. 
Sec. 585. Expanded borrower education assistance. 
Sec. 586. Young Entrepreneurs program. 
Sec. 587. Interest rates and loan size. 
Sec. 588. Reporting requirement. 
Sec. 589. Surplus interest rate subsidy for businesses. 
Sec. 590. Authorization of appropriations. 
Subtitle D—Small Business Investment Company Modernization 
Sec. 591. Increased investment from States. 
Sec. 592. Expedited licensing for experienced applicants. 
Sec. 593. Revised leverage limitations for successful SBICs. 
Sec. 594. Consistency for cost control. 
Sec. 595. Investment in veteran-owned small businesses. 
Sec. 596. Tangible net worth. 
Sec. 597. Development of agency record. 
Sec. 598. Program levels. 
Subtitle E—Investment in Small Manufacturers and Renewable Energy Small 
Businesses 
CHAPTER 1—ENHANCED NEW MARKETS VENTURE CAPITAL PROGRAM 
Sec. 601. Expansion of New Markets Venture Capital Program. 
Sec. 602. Improved nationwide distribution. 
Sec. 603. Increased investment in small business concerns engaged primarily in 
manufacturing. 
Sec. 604. Expanded uses for operational assistance in manufacturing. 
Sec. 605. Updating definition of low-income geographic area. 
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Sec. 606. Expanding operational assistance to conditionally approved compa-
nies. 
Sec. 607. Limitation on time for final approval. 
Sec. 608. Streamlined application for New Markets Venture Capital Program. 
Sec. 609. Elimination of matching requirement. 
Sec. 610. Simplified formula for operational assistance grants. 
Sec. 611. Financing with respect to veterans. 
Sec. 612. Authorization of appropriations and enhanced allocation for small 
manufacturing. 
CHAPTER 2—EXPANDED INVESTMENT IN SMALL BUSINESS RENEWABLE 
ENERGY 
Sec. 621. Expanded investment in renewable energy. 
Sec. 622. Renewable Energy Capital Investment Program made permanent. 
Sec. 623. Expanded eligibility for small businesses. 
Sec. 624. Expanded uses for operational assistance in manufacturing and small 
businesses. 
Sec. 625. Expansion of Renewable Energy Capital Investment Program. 
Sec. 626. Simplified fee structure to expedite implementation. 
Sec. 627. Increased operational assistance grants. 
Sec. 628. Authorizations of appropriations. 
Subtitle F—Small Business Health Information Technology Financing 
Program 
Sec. 631. Small business health information technology financing program. 
Subtitle G—Small Business Early-Stage Investment Program 
Sec. 641. Small business early-stage investment program. 
Sec. 642. Prohibitions on earmarks. 
Subtitle H—SBA Disaster Program Reform 
Sec. 651. Revised collateral requirements. 
Sec. 652. Increased limits. 
Sec. 653. Revised repayment terms. 
Sec. 654. Revised disbursement process. 
Sec. 655. Grant program. 
Sec. 656. Regional disaster working groups. 
Sec. 657. Outreach grants for loan applicant assistance. 
Sec. 658. Homeowners impacted by toxic drywall. 
Sec. 659. Authorization of appropriations. 
Subtitle I—Regulations 
Sec. 661. Regulations. 
Subtitle J—Temporary Employee Services Franchises 
Sec. 671. Temporary employee services franchises. 
Subtitle K—Study on Private Sector Lending 
Sec. 681. Study on private sector lending. 
Subtitle L—Study on Increases in Certain Caps 
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Sec. 691. Study on increases in certain caps. 
Subtitle M—Rural Outreach 
Sec. 701. Rural outreach. 
Subtitle N—Study Relating to Medical Technology 
Sec. 711. Study relating to medical technology. 
Subtitle O—Study on Additional Credit Risk Factors 
Sec. 721. Study on additional credit risk factors. 
Subtitle A—Small Business 
Lending Enhancements 
SEC. 511. SMALL LENDER OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(34) SMALL LENDER OUTREACH PROGRAM.— 
The Administrator shall establish and carry out a 
program to provide support to regional, district, and 
branch offices of the Administration to assist small 
lenders, who do not participate in the Preferred 
Lenders Program, to participate in the programs 
under this subsection.’’. 
SEC. 512. RURAL LENDING OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(35) RURAL LENDING OUTREACH PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish and carry out a rural lending 
outreach program (hereinafter referred to in 
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this paragraph as the ‘program’) to provide 
loans under this subsection in accordance with 
this paragraph. 
‘‘(B) MAXIMUM
PARTICIPATION.—A loan 
under the program shall include the maximum 
participation levels by the Administrator per-
mitted for loans made under this subsection. 
‘‘(C) MAXIMUM LOAN AMOUNT.—The max-
imum amount of a loan under the program 
shall be $250,000. 
‘‘(D) USE OF RURAL LENDERS.—The pro-
gram shall be carried out through lenders lo-
cated in a rural area (as such term is defined 
under subsection (m)(11)(C)) or, if a small 
business concern located in a rural area does 
not have a lender located within 30 miles of the 
principal place of business of such concern, 
through any lender chosen by such concern that 
provides loans under this subsection. 
‘‘(E) TIME FOR APPROVAL.—The Adminis-
trator shall approve or disapprove a loan under 
the program within 36 hours. 
‘‘(F) 
DOCUMENTATION.—The 
program 
shall use abbreviated application and docu-
mentation requirements. 
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‘‘(G) 
CREDIT
STANDARDS.—Minimum 
credit standards, as the Administrator considers 
necessary to limit the rate of default on loans 
made under the program, shall apply.’’. 
SEC. 513. COMMUNITY EXPRESS PROGRAM MADE PERMA-
NENT. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(36) COMMUNITY EXPRESS PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall carry out a Community Express Program 
to provide loans under this subsection in ac-
cordance with this paragraph. 
‘‘(B) REQUIREMENTS.—For a loan made 
under the Community Express Program, the 
following shall apply: 
‘‘(i) The loan shall be in an amount 
not exceeding $250,000. 
‘‘(ii) The loan shall be made to a 
small business concern the majority owner-
ship interest of which is directly held by in-
dividuals the Administrator determines 
are, without regard to the geographic loca-
tion of such individuals, women, members 
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of qualified Indian tribes, socially or eco-
nomically disadvantaged individuals, vet-
erans, or members of the reserve compo-
nents of the Armed Forces. 
‘‘(iii) The loan shall comply with the 
collateral policy of the Administration. 
‘‘(iv) The loan shall include terms re-
quiring the lender to provide, at the ex-
pense of the lender, technical assistance to 
the borrower through the lender or a third- 
party provider. 
‘‘(v) The Administrator shall approve 
or disapprove the loan within 36 hours.’’. 
SEC. 514. INCREASED VETERAN PARTICIPATION PROGRAM 
MADE PERMANENT. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended— 
(1) by redesignating the second paragraph (32), 
as added by section 208 of the Military Reservist 
and Veteran Small Business Reauthorization and 
Opportunity Act of 2008 (Public Law 110–186; 122 
Stat. 631), as paragraph (33); and 
(2) in paragraph (33), as so redesignated by 
paragraph (1) of this section— 
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(A) by striking ‘‘pilot program’’ each place 
it appears and inserting ‘‘program’’; 
(B) by striking subparagraphs (C) and 
(F); and 
(C) by redesignating subparagraphs (D) 
and (E) as subparagraphs (C) and (D), respec-
tively. 
SEC. 515. LEASING POLICY. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
striking paragraph (28) and inserting the following: 
‘‘(28) LEASING.—If a loan under this sub-
section is used to acquire or construct a facility, the 
assisted small business concern— 
‘‘(A) shall permanently occupy and use not 
less than 50 percent of the space in such facil-
ity; and 
‘‘(B) may, on a temporary or permanent 
basis, lease to others not more than 50 percent 
of the space in such facility.’’. 
SEC. 516. NATIONAL LENDER TRAINING PROGRAM. 
(a) IN GENERAL.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)), as amended by this Act, is 
further amended by adding at the end the following: 
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‘‘(37) NATIONAL
LENDER
TRAINING
PRO-
GRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish and carry out, through the re-
gional offices of the Administration, a lender 
training program for new and existing lenders 
under this subsection with respect to the lend-
ing systems, policies, and procedures of the Ad-
ministration. 
‘‘(B) 
FEES.—The 
Administrator 
shall 
charge a fee for the program established under 
subparagraph (A) to reduce the cost of such 
program to zero. 
‘‘(C) LIMITATION.—The program estab-
lished under subparagraph (A) may not be car-
ried out by contract with a nongovernmental 
entity.’’. 
(b) PARTICIPATION.—An entity may not be permitted 
to participate in any program under the Small Business 
Act (15 U.S.C. 631 et seq.) or the Small Business Invest-
ment Act of 1958 (15 U.S.C. 661 et seq.) that is estab-
lished or amended under this Act, as a lending or invest-
ment entity or as an agent of the Small Business Adminis-
tration, unless such entity satisfies at least one of the fol-
lowing: 
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(1) The entity has as the primary mission of 
the entity the financing or development of small 
business concerns. 
(2) The entity is primarily engaged in the busi-
ness of banking, investing, or entrepreneurial devel-
opment and does not engage in activities which are 
not incidental to the business of banking, investing, 
or entrepreneurial development. 
SEC. 517. APPLICATIONS FOR REPURCHASE OF LOANS. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(38) APPLICATIONS
FOR
REPURCHASE
OF 
LOANS.— 
‘‘(A) IN
GENERAL.—Not later than 45 
days after the date of the receipt of a claim 
from a lender for proper payment of the guar-
anteed portion of a loan under this subsection 
due to default, the Administrator shall make a 
final determination with respect to the approval 
or denial of such claim. 
‘‘(B) LATE DETERMINATIONS.—If the Ad-
ministrator does not make a final determination 
under subparagraph (A) in the time period 
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specified in such subparagraph, the claim shall 
be approved and paid promptly. 
‘‘(C) If the lender demonstrates, with re-
spect to a claim for payment described in sub-
paragraph (A), that it followed the applicable 
requirements of the National Lender Training 
Program as established under paragraph (37) 
of this section, the Administrator shall pay the 
claim unless the Administrator has clear and 
convincing evidence demonstrating that the 
lender failed to comply with regulatory require-
ments established by the Administrator.’’. 
SEC. 518. ALTERNATIVE SIZE STANDARD. 
(a) IN GENERAL.—Section 3(a) of the Small Busi-
ness Act (15 U.S.C. 632(a)) is amended by adding at the 
end the following: 
‘‘(5) In addition to any other size standard 
under this subsection, the Administrator shall estab-
lish and permit a lender making a loan under section 
7(a) to use an alternative size standard. The alter-
native size standard shall be based on factors includ-
ing the maximum tangible net worth and average 
net income of a business concern.’’. 
(b) APPLICABILITY.—Until the Administrator estab-
lishes under section 3(a)(5) of the Small Business Act, 
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as added by subsection (a) of this section, an alternative 
size standard for use by a lender making a loan under 
section 7(a) of such Act, the alternative size standard in 
section 121.301(b) of title 13, Code of Federal Regula-
tions, shall apply in such a case. 
SEC. 519. PILOT PROGRAM AUTHORITY. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
striking paragraph (25) and inserting the following: 
‘‘(25) LIMITATION
ON
CONDUCTING
PILOT 
PROJECTS.— 
‘‘(A) LIMITATION ON NUMBER.—Not more 
than 10 percent of the total number of loans 
guaranteed in any fiscal year under this sub-
section may be awarded as part of a pilot pro-
gram. 
‘‘(B) DOLLAR LIMITATIONS.— 
‘‘(i) IN
GENERAL.—With respect to 
any pilot program under this subsection es-
tablished on or after the date of the enact-
ment of the Small Business Financing and 
Investment Act of 2010, no loan shall be 
made under such program if such loan 
would result in the total amount of loans 
made during a fiscal year under all such 
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programs to be in excess of 5 percent of 
the total amount of loans guaranteed in 
such fiscal year under this subsection. 
‘‘(ii) CERTAIN
PRE-EXISTING
PRO-
GRAMS.—With respect to any pilot pro-
gram under this subsection established be-
fore the date of the enactment of the Small 
Business Financing and Investment Act of 
2010, no loan shall be made under such 
program if such loan would result in the 
total amount of loans made during a fiscal 
year under all such programs to be in ex-
cess of 10 percent of the total amount of 
loans guaranteed in such fiscal year under 
this subsection. 
‘‘(C) EXPIRATION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (iii), the duration of any 
pilot program under this subsection may 
not exceed 3 years. 
‘‘(ii) DESIGNATION
AS
NEW
PRO-
GRAM.—For purposes of this subpara-
graph, a pilot program shall not be treated 
as a new pilot program solely on the basis 
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of a modification or change in the pilot 
program, including the change of its name. 
‘‘(iii) EXISTING PROGRAMS.—With re-
spect to any pilot program in existence on 
the date of the enactment of the Small 
Business Financing and Investment Act of 
2010, such program may continue in effect 
for a period not exceeding 3 years after 
such date without regard to the duration 
of such program before such date. 
‘‘(D) REGULATIONS.— 
‘‘(i) IN
GENERAL.—With respect to 
each pilot program under this subsection, 
including each pilot program in existence 
on the date of the enactment of the Small 
Business Financing and Investment Act of 
2010, the Administrator shall— 
‘‘(I) issue regulations for such 
program after providing notice in the 
Federal Register and an opportunity 
for comment; and 
‘‘(II) ensure that such regula-
tions are published in the Code of 
Federal Regulations. 
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‘‘(ii) PILOT PROGRAMS ESTABLISHED 
AFTER
DATE
OF
ENACTMENT.—With re-
spect to any pilot program established 
after the date of the enactment of the 
Small Business Financing and Investment 
Act of 2010, such program shall not take 
effect until the requirements under this 
subparagraph are satisfied. 
‘‘(E) REPEAL
OF
AUTHORITY
TO
WAIVE 
CERTAIN RULES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
section 120.3 of title 13, Code of Federal 
Regulations, the Administrator may not 
from time to time suspend, modify, or 
waive rules for a limited period of time to 
test new programs or ideas with respect to 
this subsection, unless such suspension, 
modification, or waiver is explicitly author-
ized by Act of Congress. 
‘‘(ii) EXISTING
PILOT
PROGRAMS.— 
Nothing under clause (i) may be construed 
to affect a pilot program in existence on 
the date of the enactment of the Small 
Business Financing and Investment Act of 
2010. 
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‘‘(F) PILOT PROGRAM.—For purposes of 
this paragraph, the term ‘pilot program’ means 
any lending program initiative, project, innova-
tion, or other activity not specifically authorized 
by Act of Congress.’’. 
SEC. 520. LOANS TO COOPERATIVES. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(39) 
COOPERATIVES.—The 
Administration 
may provide loans under this subsection to any coop-
erative that— 
‘‘(A) is not organized as a tax-exempt enti-
ty; 
‘‘(B) is engaged in a legal business activ-
ity; 
‘‘(C) obtains financial benefits for the co-
operative and for the members of such coopera-
tive; and 
‘‘(D) is eligible under applicable size stand-
ards of the Administration, including that any 
business entity that is a member of such coop-
erative is eligible under applicable size stand-
ards of the Administration.’’. 
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for within 10 business days of receiving a 
loan application described in clause (i), the 
Administrator shall originate, underwrite, 
close, and service such loan. 
‘‘(C) ASSET
SALES.—The Administrator 
shall offer to sell loans made by the Adminis-
trator under this paragraph. Such sales shall be 
made through the semi-annual public solicita-
tion (in the Federal Register and in other 
media) of offers to purchase. The Administrator 
may contract with vendors for due diligence, 
asset valuation, and other services related to 
such sales. The Administrator may not sell any 
loan under this subparagraph for less than 90 
percent of the net present value of the loan, as 
determined and certified by a qualified third 
party. 
‘‘(D) LOANS
NOT
SOLD.—The Adminis-
trator shall maintain and service loans made by 
the Administrator under this paragraph that 
are not sold through the asset sales under this 
paragraph. 
‘‘(E) EFFECTIVE DATES.—This paragraph 
shall have effect on each date during the period 
beginning on the date of enactment of this 
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paragraph and ending on September 30, 2011, 
and on any other date after such period if— 
‘‘(i) such date occurs during a period 
that— 
‘‘(I) begins on the date the Bu-
reau of Economic Analysis, or any 
successor organization, makes a deter-
mination that the gross domestic 
product of the United States has de-
creased for three consecutive quarters; 
and 
‘‘(II) ends on the date the Bu-
reau of Economic Analysis, or any 
successor organization, makes a deter-
mination that the gross domestic 
product of the United States has in-
creased for two consecutive quarters; 
and 
‘‘(ii) the number of loans provided 
under this subsection prior to such date in 
the fiscal year including such date is at 
least 30 percent less than the number of 
such loans provided prior to the same point 
in the previous fiscal year. 
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‘‘(F) IMPLEMENTATION.—The Adminis-
trator shall establish a group of at least 250 in-
dividuals available to carry out activities under 
this paragraph on any date on which this para-
graph has effect under subparagraph (E). The 
Administrator shall provide to such group the 
training necessary to carry out activities under 
this paragraph. The Administrator shall ensure 
that each individual in such group with loan ap-
plication evaluation and underwriting respon-
sibilities has at least 2 years experience with re-
spect to such responsibilities. 
‘‘(G) APPLICATION
OF
OTHER
LAW.— 
Nothing in this paragraph shall be construed to 
exempt any activity of the Administrator under 
this paragraph from the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.). 
‘‘(H) AUTHORIZATION
OF
APPROPRIA-
TIONS.— 
‘‘(i) PROGRAM LEVELS.—The Admin-
istrator is authorized to make loans under 
this paragraph in an amount that is equal 
to half the amount authorized for loans 
under this subsection other than loans 
under this paragraph. 
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‘‘(ii) AUTHORIZATION OF APPROPRIA-
TIONS.—In addition to amounts made 
available to carry out this subsection, there 
are authorized to be appropriated such 
sums as may be necessary to carry out this 
paragraph.’’. 
SEC. 522. LOANS TO FINANCE GOODWILL. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(41) GOODWILL.—The Administrator may not 
apply an application, processing, or approval stand-
ard to a loan for the purpose of financing goodwill 
under this subsection, unless such standard applies 
to all loans under this subsection.’’. 
SEC. 523. APPELLATE PROCESS AND OMBUDSMAN. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 44 as section 45; 
and 
(2) by inserting after section 43 the following: 
‘‘SEC. 44. APPELLATE PROCESS AND OMBUDSMAN. 
‘‘(a) APPELLATE PROCESS.— 
‘‘(1) IN GENERAL.—Not later than 270 days 
after the date of the enactment of the Small Busi-
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ness Financing and Investment Act of 2010, the Ad-
ministrator shall establish an independent appellate 
process within the Administration. The process shall 
be available to review material determinations made 
by the Administration that affect a lender or invest-
ment company that participates or is applying to 
participate in a program administered by the Ad-
ministration. 
‘‘(2) REVIEW
PROCESS.—In establishing the 
independent appellate process under paragraph (1), 
the Administrator shall ensure that— 
‘‘(A) any appeal of a material determina-
tion by the Administration is heard and result-
ing recommendations are provided expedi-
tiously; and 
‘‘(B) appropriate safeguards exist for pro-
tecting the appellant from retaliation by Admin-
istration employees. 
‘‘(3) COMMENT PERIOD.—Not later than 180 
days after the date of the enactment of the Small 
Business Financing and Investment Act of 2010, the 
Administrator shall provide an opportunity for no-
tice and comment on proposed guidelines for the es-
tablishment of an independent appellate process 
under this section. 
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‘‘(b) AGENCY OMBUDSMAN.— 
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the date of the enactment of the Small 
Business Financing and Investment Act of 2010, the 
Administrator shall appoint an ombudsman. 
‘‘(2) DUTIES.—The ombudsman appointed in 
accordance with paragraph (1) shall— 
‘‘(A) act as a liaison between the Adminis-
tration and any lender or investment company 
that participates or is applying to participate in 
a program administered by the Administration 
with respect to a problem such entity may have 
in dealing with the Administration resulting 
from a material determination made by the Ad-
ministration; and 
‘‘(B) ensure that safeguards exist to en-
courage complainants to come forward and pre-
serve confidentiality. 
‘‘(c) OTHER AUTHORITY.—An individual carrying 
out the independent appellate process established under 
subsection (a) or the position of ombudsman established 
under subsection (b) is authorized to— 
‘‘(1) examine records and documents relating to 
a matter under review pursuant to such subsections; 
and 
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‘‘(iv) FAILURE
TO
OBTAIN
CERTIFI-
CATION.—Any development company that 
fails to obtain certification in accordance 
with the procedures set forth in this para-
graph during the period set forth in clause 
(i) shall be considered to be a new develop-
ment company and the procedures of para-
graph (2) shall apply. The authority to 
issue debentures shall cease for any devel-
opment company covered by this subpara-
graph that has failed to obtain certification 
from the Administrator during the time 
period set forth in clause (i). 
‘‘(F) AUTOMATIC
QUALIFICATION
PROVI-
SION.—If the Administrator fails to implement 
the certification process set forth in this para-
graph, any development company that was 
issuing debentures before September 30, 2009, 
pursuant to this title shall be considered cer-
tified until such time as the Administrator de-
velops the certification procedures set forth in 
this paragraph. 
‘‘(G) SAVINGS CLAUSE.—Any action taken 
by a development company or the Administrator 
pursuant to this paragraph shall have no im-
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