In the Senate of the United States, 
September 16, 2010. 
Resolved, That the bill from the House of Representa-
tives (H.R. 5297) entitled ‘‘An Act to create the Small Busi-
ness Lending Fund Program to direct the Secretary of the 
Treasury to make capital investments in eligible institutions 
in order to increase the availability of credit for small busi-
nesses, to amend the Internal Revenue Code of 1986 to pro-
vide tax incentives for small business job creation, and for 
other purposes.’’, do pass with the following 
AMENDMENT: 
Strike all after the enacting clause and insert the 
following: 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Jobs 
Act of 2010’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents.
† HR 5297 EAS 
TITLE I—SMALL BUSINESSES 
Sec. 1001. Definitions. 
Subtitle A—Small Business Access to Credit 
Sec. 1101. Short title. 
PART I—NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY 
Sec. 1111. Section 7(a) business loans. 
Sec. 1112. Maximum loan amounts under 504 program. 
Sec. 1113. Maximum loan limits under microloan program. 
Sec. 1114. Loan guarantee enhancement extensions. 
Sec. 1115. New Markets Venture Capital company investment limitations. 
Sec. 1116. Alternative size standards. 
Sec. 1117. Sale of 7(a) loans in secondary market. 
Sec. 1118. Online lending platform. 
Sec. 1119. SBA Secondary Market Guarantee Authority. 
PART II—SMALL BUSINESS ACCESS TO CAPITAL 
Sec. 1122. Low-interest refinancing under the local development business loan 
program. 
PART III—OTHER MATTERS 
Sec. 1131. Small business intermediary lending pilot program. 
Sec. 1132. Public policy goals. 
Sec. 1133. Floor plan pilot program extension. 
Sec. 1134. Guarantees for bonds and notes issued for community or economic de-
velopment purposes. 
Sec. 1135. Temporary express loan enhancement. 
Sec. 1136. Prohibition on using TARP funds or tax increases. 
Subtitle B—Small Business Trade and Exporting 
Sec. 1201. Short title. 
Sec. 1202. Definitions. 
Sec. 1203. Office of International Trade. 
Sec. 1204. Duties of the Office of International Trade. 
Sec. 1205. Export assistance centers. 
Sec. 1206. International trade finance programs. 
Sec. 1207. State Trade and Export Promotion Grant Program. 
Sec. 1208. Rural export promotion. 
Sec. 1209. International trade cooperation by small business development centers. 
Subtitle C—Small Business Contracting 
PART I—CONTRACT BUNDLING 
Sec. 1311. Small Business Act. 
Sec. 1312. Leadership and oversight. 
Sec. 1313. Consolidation of contract requirements. 
Sec. 1314. Small business teams pilot program. 
PART II—SUBCONTRACTING INTEGRITY 
Sec. 1321. Subcontracting misrepresentations.
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Sec. 1322. Small business subcontracting improvements. 
PART III—ACQUISITION PROCESS 
Sec. 1331. Reservation of prime contract awards for small businesses. 
Sec. 1332. Micro-purchase guidelines. 
Sec. 1333. Agency accountability. 
Sec. 1334. Payment of subcontractors. 
Sec. 1335. Repeal of Small Business Competitiveness Demonstration Program. 
PART IV—SMALL BUSINESS SIZE AND STATUS INTEGRITY 
Sec. 1341. Policy and presumptions. 
Sec. 1342. Annual certification. 
Sec. 1343. Training for contracting and enforcement personnel. 
Sec. 1344. Updated size standards. 
Sec. 1345. Study and report on the mentor-protege program. 
Sec. 1346. Contracting goals reports. 
Sec. 1347. Small business contracting parity. 
Subtitle D—Small Business Management and Counseling Assistance 
Sec. 1401. Matching requirements under small business programs. 
Sec. 1402. Grants for SBDCs. 
Subtitle E—Disaster Loan Improvement 
Sec. 1501. Aquaculture business disaster assistance. 
Subtitle F—Small Business Regulatory Relief 
Sec. 1601. Requirements providing for more detailed analyses. 
Sec. 1602. Office of advocacy. 
Subtitle G—Appropriations Provisions 
Sec. 1701. Salaries and expenses. 
Sec. 1702. Business loans program account. 
Sec. 1703. Community Development Financial Institutions Fund program ac-
count. 
Sec. 1704. Small business loan guarantee enhancement extensions. 
TITLE II—TAX PROVISIONS 
Sec. 2001. Short title. 
Subtitle A—Small Business Relief 
PART I—PROVIDING ACCESS TO CAPITAL 
Sec. 2011. Temporary exclusion of 100 percent of gain on certain small business 
stock. 
Sec. 2012. General business credits of eligible small businesses for 2010 carried 
back 5 years. 
Sec. 2013. General business credits of eligible small businesses in 2010 not subject 
to alternative minimum tax. 
Sec. 2014. Temporary reduction in recognition period for built-in gains tax.
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PART II—ENCOURAGING INVESTMENT 
Sec. 2021. Increased expensing limitations for 2010 and 2011; certain real prop-
erty treated as section 179 property. 
Sec. 2022. Additional first-year depreciation for 50 percent of the basis of certain 
qualified property. 
Sec. 2023. Special rule for long-term contract accounting. 
PART III—PROMOTING ENTREPRENEURSHIP 
Sec. 2031. Increase in amount allowed as deduction for start-up expenditures in 
2010. 
Sec. 2032. Authorization of appropriations for the United States Trade Rep-
resentative to develop market access opportunities for United 
States small- and medium-sized businesses and to enforce trade 
agreements. 
PART IV—PROMOTING SMALL BUSINESS FAIRNESS 
Sec. 2041. Limitation on penalty for failure to disclose reportable transactions 
based on resulting tax benefits. 
Sec. 2042. Deduction for health insurance costs in computing self-employment 
taxes in 2010. 
Sec. 2043. Removal of cellular telephones and similar telecommunications equip-
ment from listed property. 
Subtitle B—Revenue Provisions 
PART I—REDUCING THE TAX GAP 
Sec. 2101. Information reporting for rental property expense payments. 
Sec. 2102. Increase in information return penalties. 
Sec. 2103. Report on tax shelter penalties and certain other enforcement actions. 
Sec. 2104. Application of continuous levy to tax liabilities of certain Federal con-
tractors. 
PART II—PROMOTING RETIREMENT PREPARATION 
Sec. 2111. Participants in government section 457 plans allowed to treat elective 
deferrals as Roth contributions. 
Sec. 2112. Rollovers from elective deferral plans to designated Roth accounts. 
Sec. 2113. Special rules for annuities received from only a portion of a contract. 
PART III—CLOSING UNINTENDED LOOPHOLES 
Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer credit. 
Sec. 2122. Source rules for income on guarantees. 
PART IV—TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES 
Sec. 2131. Time for payment of corporate estimated taxes. 
TITLE III—STATE SMALL BUSINESS CREDIT INITIATIVE 
Sec. 3001. Short title. 
Sec. 3002. Definitions. 
Sec. 3003. Federal funds allocated to States. 
Sec. 3004. Approving States for participation. 
Sec. 3005. Approving State capital access programs.
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Sec. 3006. Approving collateral support and other innovative credit access and 
guarantee initiatives for small businesses and manufacturers. 
Sec. 3007. Reports. 
Sec. 3008. Remedies for State program termination or failures. 
Sec. 3009. Implementation and administration. 
Sec. 3010. Regulations. 
Sec. 3011. Oversight and audits. 
TITLE IV—ADDITIONAL SMALL BUSINESS PROVISIONS 
Subtitle A—Small Business Lending Fund 
Sec. 4101. Purpose. 
Sec. 4102. Definitions. 
Sec. 4103. Small business lending fund. 
Sec. 4104. Additional authorities of the Secretary. 
Sec. 4105. Considerations. 
Sec. 4106. Reports. 
Sec. 4107. Oversight and audits. 
Sec. 4108. Credit reform; funding. 
Sec. 4109. Termination and continuation of authorities. 
Sec. 4110. Preservation of authority. 
Sec. 4111. Assurances. 
Sec. 4112. Study and report with respect to women-owned, veteran-owned, and 
minority-owned businesses. 
Sec. 4113. Sense of Congress. 
Subtitle B—Other Provisions 
PART I—SMALL BUSINESS EXPORT PROMOTION INITIATIVES 
Sec. 4221. Short title. 
Sec. 4222. Global business development and promotion activities of the Depart-
ment of Commerce. 
Sec. 4223. Additional funding to improve access to global markets for rural busi-
nesses. 
Sec. 4224. Additional funding for the ExporTech program. 
Sec. 4225. Additional funding for the market development cooperator program of 
the Department of Commerce. 
Sec. 4226. Hollings Manufacturing Partnership Program; Technology Innovation 
Program. 
Sec. 4227. Sense of the Senate concerning Federal collaboration with States on 
export promotion issues. 
Sec. 4228. Report on tariff and nontariff barriers. 
PART II—MEDICARE FRAUD 
Sec. 4241. Use of predictive modeling and other analytics technologies to identify 
and prevent waste, fraud, and abuse in the Medicare fee-for-serv-
ice program. 
TITLE V—BUDGETARY PROVISIONS 
Sec. 5001. Determination of budgetary effects.
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TITLE I—SMALL BUSINESSES 
SEC. 1001. DEFINITIONS. 
In this title— 
(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration and 
the Administrator thereof, respectively; and 
(2) the term ‘‘small business concern’’ has the 
meaning given that term under section 3 of the Small 
Business Act (15 U.S.C. 632). 
Subtitle A—Small Business Access 
to Credit 
SEC. 1101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business Job 
Creation and Access to Capital Act of 2010’’. 
PART I—NEXT STEPS FOR MAIN STREET CREDIT 
AVAILABILITY 
SEC. 1111. SECTION 7(a) BUSINESS LOANS. 
(a) AMENDMENT.—Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (i), by striking ‘‘75 percent’’ 
and inserting ‘‘90 percent’’; and 
(B) in clause (ii), by striking ‘‘85 percent’’ 
and inserting ‘‘90 percent’’; and
† HR 5297 EAS 
(2) in paragraph (3)(A), by striking ‘‘$1,500,000 
(or if the gross loan amount would exceed $2,000,000’’ 
and inserting ‘‘$4,500,000 (or if the gross loan 
amount would exceed $5,000,000’’. 
(b) PROSPECTIVE REPEAL.—Effective January 1, 
2011, section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (i), by striking ‘‘90 percent’’ 
and inserting ‘‘75 percent’’; and 
(B) in clause (ii), by striking ‘‘90 percent’’ 
and inserting ‘‘85 percent’’; and 
(2) 
in 
paragraph 
(3)(A), 
by 
striking 
‘‘$4,500,000’’ and inserting ‘‘$3,750,000’’. 
SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM. 
Section 502(2)(A) of the Small Business Investment 
Act of 1958 (15 U.S.C. 696(2)(A)) is amended— 
(1) in clause (i), by striking ‘‘$1,500,000’’ and 
inserting ‘‘$5,000,000’’; 
(2) in clause (ii), by striking ‘‘$2,000,000’’ and 
inserting ‘‘$5,000,000’’; 
(3) in clause (iii), by striking ‘‘$4,000,000’’ and 
inserting ‘‘$5,500,000’’; 
(4) in clause (iv), by striking ‘‘$4,000,000’’ and 
inserting ‘‘$5,500,000’’; and
† HR 5297 EAS 
(5) in clause (v), by striking ‘‘$4,000,000’’ and 
inserting ‘‘$5,500,000’’. 
SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN 
PROGRAM. 
Section 7(m) of the Small Business Act (15 U.S.C. 
636(m)) is amended— 
(1) in paragraph 
(1)(B)(iii), 
by 
striking 
‘‘$35,000’’ and inserting ‘‘$50,000’’; 
(2) in paragraph (3)— 
(A) in subparagraph (C), by striking 
‘‘$3,500,000’’ and inserting ‘‘$5,000,000’’; and 
(B) in subparagraph (E), by striking 
‘‘$35,000’’ each place that term appears and in-
serting ‘‘$50,000’’; and 
(3) in paragraph (11)(B), by striking ‘‘$35,000’’ 
and inserting ‘‘$50,000’’. 
SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS. 
(a) FEES.—Section 501 of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 
151) is amended by striking ‘‘September 30, 2010’’ each 
place that term appears and inserting ‘‘December 31, 
2010’’. 
(b) LOAN GUARANTEES.—Section 502(f) of division A 
of the American Recovery and Reinvestment Act of 2009
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(Public Law 111–5; 123 Stat. 153) is amended by striking 
‘‘May 31, 2010’’ and inserting ‘‘December 31, 2010’’. 
SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY IN-
VESTMENT LIMITATIONS. 
Section 355 of the Small Business Investment Act of 
1958 (15 U.S.C. 689d) is amended by adding at the end 
the following: 
‘‘(e) INVESTMENT LIMITATIONS.— 
‘‘(1) DEFINITION.—In this subsection, the term 
‘covered New Markets Venture Capital company’ 
means a New Markets Venture Capital company— 
‘‘(A) granted final approval by the Admin-
istrator under section 354(e) on or after March 
1, 2002; and 
‘‘(B) that has obtained a financing from the 
Administrator. 
‘‘(2) LIMITATION.—Except to the extent approved 
by the Administrator, a covered New Markets Venture 
Capital company may not acquire or issue commit-
ments for securities under this title for any single en-
terprise in an aggregate amount equal to more than 
10 percent of the sum of— 
‘‘(A) the regulatory capital of the covered 
New Markets Venture Capital company; and
† HR 5297 EAS 
‘‘(B) the total amount of leverage projected 
in the participation agreement of the covered 
New Markets Venture Capital.’’. 
SEC. 1116. ALTERNATIVE SIZE STANDARDS. 
Section 3(a) of the Small Business Act (15 U.S.C. 
632(a)) is amended by adding at the end the following: 
‘‘(5) ALTERNATIVE SIZE STANDARD.— 
‘‘(A) IN GENERAL.—The Administrator shall es-
tablish an alternative size standard for applicants for 
business loans under section 7(a) and applicants for 
development company loans under title V of the Small 
Business Investment Act of 1958 (15 U.S.C. 695 et 
seq.), that uses maximum tangible net worth and av-
erage net income as an alternative to the use of indus-
try standards. 
‘‘(B) INTERIM RULE.—Until the date on which 
the alternative size standard established under sub-
paragraph (A) is in effect, an applicant for a busi-
ness loan under section 7(a) or an applicant for a de-
velopment company loan under title V of the Small 
Business Investment Act of 1958 may be eligible for 
such a loan if— 
‘‘(i) the maximum tangible net worth of the 
applicant is not more than $15,000,000; and
† HR 5297 EAS 
‘‘(ii) the average net income after Federal 
income taxes (excluding any carry-over losses) of 
the applicant for the 2 full fiscal years before the 
date of the application is not more than 
$5,000,000.’’. 
SEC. 1117. SALE OF 7(a) LOANS IN SECONDARY MARKET. 
Section 5(g) of the Small Business Act (15 U.S.C. 
634(g)) is amended by adding at the end the following: 
‘‘(6) If the amount of the guaranteed portion of any 
loan under section 7(a) is more than $500,000, the Admin-
istrator shall, upon request of a pool assembler, divide the 
loan guarantee into increments of $500,000 and 1 incre-
ment of any remaining amount less than $500,000, in order 
to permit the maximum amount of any loan in a pool to 
be not more than $500,000. Only 1 increment of any loan 
guarantee divided under this paragraph may be included 
in the same pool. Increments of loan guarantees to different 
borrowers that are divided under this paragraph may be 
included in the same pool.’’. 
SEC. 1118. ONLINE LENDING PLATFORM. 
It is the sense of Congress that the Administrator of 
the Small Business Administration should establish a 
website that— 
(1) lists each lender that makes loans guaranteed 
by the Small Business Administration and provides
† HR 5297 EAS 
information about the loan rates of each such lender; 
and 
(2) allows prospective borrowers to compare rates 
on loans guaranteed by the Small Business Adminis-
tration. 
SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHOR-
ITY. 
Section 503(f) of division A of the American Recovery 
and Reinvestment Act of 2009 (Public Law 111–5; 123 
Stat. 155) is amended by striking ‘‘on the date 2 years after 
the date of enactment of this section’’ and inserting ‘‘2 years 
after the date of the first sale of a pool of first lien position 
504 loans guaranteed under this section to a third-party 
investor’’. 
PART II—SMALL BUSINESS ACCESS TO CAPITAL 
SEC. 
1122. 
LOW-INTEREST 
REFINANCING 
UNDER 
THE 
LOCAL DEVELOPMENT BUSINESS LOAN PRO-
GRAM. 
(a) REFINANCING.—Section 502(7) of the Small Busi-
ness Investment Act of 1958 (15 U.S.C. 696(7)) is amended 
by adding at the end the following: 
‘‘(C) REFINANCING NOT INVOLVING EXPAN-
SIONS.— 
‘‘(i) DEFINITIONS.—In this subpara-
graph—
† HR 5297 EAS 
‘‘(I) the term ‘borrower’ means a 
small business concern that submits an 
application to a development company 
for financing under this subparagraph; 
‘‘(II) the term ‘eligible fixed asset’ 
means tangible property relating to 
which the Administrator may provide 
financing under this section; and 
‘‘(III) the term ‘qualified debt’ 
means indebtedness— 
‘‘(aa) that— 
‘‘(AA) was incurred not 
less than 2 years before the 
date of the application for 
assistance under this sub-
paragraph; 
‘‘(BB) is a commercial 
loan; 
‘‘(CC) is not subject to a 
guarantee by a Federal agen-
cy; 
‘‘(DD) the proceeds of 
which were used to acquire 
an eligible fixed asset;
† HR 5297 EAS 
‘‘(EE) was incurred for 
the benefit of the small busi-
ness concern; and 
‘‘(FF) is collateralized 
by eligible fixed assets; and 
‘‘(bb) for which the borrower 
has been current on all payments 
for not less than 1 year before the 
date of the application. 
‘‘(ii) AUTHORITY.—A project that does 
not involve the expansion of a small busi-
ness concern may include the refinancing of 
qualified debt if— 
‘‘(I) the amount of the financing 
is not more than 90 percent of the 
value of the collateral for the financing, 
except that, if the appraised value of 
the eligible fixed assets serving as col-
lateral for the financing is less than 
the amount equal to 125 percent of the 
amount of the financing, the borrower 
may provide additional cash or other 
collateral to eliminate any deficiency;
† HR 5297 EAS 
‘‘(II) the borrower has been in op-
eration for all of the 2-year period end-
ing on the date of the loan; and 
‘‘(III) for a financing for which 
the Administrator determines there 
will be an additional cost attributable 
to the refinancing of the qualified debt, 
the borrower agrees to pay a fee in an 
amount equal to the anticipated addi-
tional cost. 
‘‘(iii) FINANCING
FOR
BUSINESS
EX-
PENSES.— 
‘‘(I) FINANCING
FOR
BUSINESS 
EXPENSES.—The Administrator may 
provide financing to a borrower that 
receives financing that includes a refi-
nancing of qualified debt under clause 
(ii), in addition to the refinancing 
under clause (ii), to be used solely for 
the payment of business expenses. 
‘‘(II) APPLICATION
FOR
FINANC-
ING.—An application for financing 
under subclause (I) shall include—
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‘‘(aa) a specific description 
of the expenses for which the addi-
tional financing is requested; and 
‘‘(bb) an itemization of the 
amount of each expense. 
‘‘(III) CONDITION ON ADDITIONAL 
FINANCING.—A borrower may not use 
any part of the financing under this 
clause for non-business purposes. 
‘‘(iv) LOANS BASED ON JOBS.— 
‘‘(I) JOB CREATION AND RETEN-
TION GOALS.— 
‘‘(aa) IN GENERAL.—The Ad-
ministrator may provide financ-
ing under this subparagraph for a 
borrower that meets the job cre-
ation goals under subsection (d) 
or (e) of section 501. 
‘‘(bb) ALTERNATE
JOB
RE-
TENTION
GOAL.—The Adminis-
trator may provide financing 
under this subparagraph to a bor-
rower that does not meet the goals 
described in item (aa) in an 
amount that is not more than the
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product obtained by multiplying 
the number of employees of the 
borrower by $65,000. 
‘‘(II) NUMBER OF EMPLOYEES.— 
For purposes of subclause (I), the num-
ber of employees of a borrower is equal 
to the sum of— 
‘‘(aa) the number of full-time 
employees of the borrower on the 
date on which the borrower ap-
plies for a loan under this sub-
paragraph; and 
‘‘(bb) the product obtained by 
multiplying— 
‘‘(AA) the number of 
part-time employees of the 
borrower on the date on 
which the borrower applies 
for a loan under this sub-
paragraph; by 
‘‘(BB) the quotient ob-
tained by dividing the aver-
age number of hours each 
part time employee of the
† HR 5297 EAS 
borrower works each week by 
40. 
‘‘(v) 
NONDELEGATION.—Notwith-
standing section 508(e), the Administrator 
may not permit a premier certified lender 
to approve or disapprove an application for 
assistance under this subparagraph. 
‘‘(vi) TOTAL AMOUNT OF LOANS.—The 
Administrator may provide not more than 
a total of $7,500,000,000 of financing under 
this subparagraph for each fiscal year.’’. 
(b) PROSPECTIVE REPEAL.—Effective 2 years after the 
date of enactment of this Act, section 502(7) of the Small 
Business Investment Act of 1958 (15 U.S.C. 696(7)) is 
amended by striking subparagraph (C). 
(c) TECHNICAL CORRECTION.—Section 502(2)(A)(i) of 
the Small Business Investment Act of 1958 (15 U.S.C. 
696(2)(A)(i)) is amended by striking ‘‘subparagraph (B) or 
(C)’’ and inserting ‘‘clause (ii), (iii), (iv), or (v)’’. 
PART III—OTHER MATTERS 
SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING 
PILOT PROGRAM. 
(a) IN GENERAL.—Section 7 of the Small Business Act 
(15 U.S.C. 636) is amended by striking subsection (l) and 
inserting the following:
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‘‘(l) SMALL BUSINESS INTERMEDIARY LENDING PILOT 
PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘eligible intermediary’— 
‘‘(i) means a private, nonprofit entity 
that— 
‘‘(I) seeks or has been awarded a 
loan from the Administrator to make 
loans to small business concerns under 
this subsection; and 
‘‘(II) has not less than 1 year of 
experience making loans to startup, 
newly established, or growing small 
business concerns; and 
‘‘(ii) includes— 
‘‘(I) a private, nonprofit commu-
nity development corporation; 
‘‘(II) a consortium of private, 
nonprofit organizations or nonprofit 
community development corporations; 
and 
‘‘(III) an agency of or nonprofit 
entity established by a Native Amer-
ican Tribal Government; and
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‘‘(B) the term ‘Program’ means the small 
business intermediary lending pilot program es-
tablished under paragraph (2). 
‘‘(2) ESTABLISHMENT.—There is established a 3- 
year small business intermediary lending pilot pro-
gram, under which the Administrator may make di-
rect loans to eligible intermediaries, for the purpose 
of making loans to startup, newly established, and 
growing small business concerns. 
‘‘(3) PURPOSES.—The purposes of the Program 
are— 
‘‘(A) to assist small business concerns in 
areas suffering from a lack of credit due to poor 
economic conditions or changes in the financial 
market; and 
‘‘(B) to establish a loan program under 
which the Administrator may provide loans to 
eligible intermediaries to enable the eligible 
intermediaries to provide loans to startup, newly 
established, and growing small business concerns 
for working capital, real estate, or the acquisi-
tion of materials, supplies, or equipment. 
‘‘(4) LOANS TO ELIGIBLE INTERMEDIARIES.— 
‘‘(A) APPLICATION.—Each eligible inter-
mediary desiring a loan under this subsection
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shall submit an application to the Administrator 
that describes— 
‘‘(i) the type of small business concerns 
to be assisted; 
‘‘(ii) the size and range of loans to be 
made; 
‘‘(iii) the interest rate and terms of 
loans to be made; 
‘‘(iv) the geographic area to be served 
and the economic, poverty, and unemploy-
ment characteristics of the area; 
‘‘(v) the status of small business con-
cerns in the area to be served and an anal-
ysis of the availability of credit; and 
‘‘(vi) the qualifications of the applicant 
to carry out this subsection. 
‘‘(B) LOAN LIMITS.—No loan may be made 
to an eligible intermediary under this subsection 
if the total amount outstanding and committed 
to the eligible intermediary by the Administrator 
would, as a result of such loan, exceed $1,000,000 
during the participation of the eligible inter-
mediary in the Program.
† HR 5297 EAS 
‘‘(C) LOAN DURATION.—Loans made by the 
Administrator under this subsection shall be for 
a term of 20 years. 
‘‘(D) 
APPLICABLE
INTEREST
RATES.— 
Loans made by the Administrator to an eligible 
intermediary under the Program shall bear an 
annual interest rate equal to 1.00 percent. 
‘‘(E) FEES; COLLATERAL.—The Adminis-
trator may not charge any fees or require collat-
eral with respect to any loan made to an eligible 
intermediary under this subsection. 
‘‘(F) DELAYED PAYMENTS.—The Adminis-
trator shall not require the repayment of prin-
cipal or interest on a loan made to an eligible 
intermediary under the Program during the 2- 
year period beginning on the date of the initial 
disbursement of funds under that loan. 
‘‘(G) 
MAXIMUM
PARTICIPANTS
AND 
AMOUNTS.—During each of fiscal years 2011, 
2012, and 2013, the Administrator may make 
loans under the Program— 
‘‘(i) to not more than 20 eligible inter-
mediaries; and 
‘‘(ii) in a total amount of not more 
than $20,000,000.
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‘‘(5) LOANS TO SMALL BUSINESS CONCERNS.— 
‘‘(A) IN
GENERAL.—The Administrator, 
through an eligible intermediary, shall make 
loans to startup, newly established, and growing 
small business concerns for working capital, real 
estate, and the acquisition of materials, supplies, 
furniture, fixtures, and equipment. 
‘‘(B) MAXIMUM
LOAN.—An eligible inter-
mediary may not make a loan under this sub-
section of more than $200,000 to any 1 small 
business concern. 
‘‘(C) APPLICABLE
INTEREST
RATES.—A 
loan made by an eligible intermediary to a small 
business concern under this subsection, may have 
a fixed or a variable interest rate, and shall bear 
an interest rate specified by the eligible inter-
mediary in the application of the eligible inter-
mediary for a loan under this subsection. 
‘‘(D) REVIEW RESTRICTIONS.—The Admin-
istrator may not review individual loans made 
by an eligible intermediary to a small business 
concern before approval of the loan by the eligi-
ble intermediary. 
‘‘(6) TERMINATION.—The authority of the Ad-
ministrator to make loans under the Program shall
† HR 5297 EAS 
terminate 3 years after the date of enactment of the 
Small Business Job Creation and Access to Capital 
Act of 2010.’’. 
(b) RULEMAKING AUTHORITY.—Not later than 180 
days after the date of enactment of this Act, the Adminis-
trator shall issue regulations to carry out section 7(l) of 
the Small Business Act, as amended by subsection (a). 
(c) AVAILABILITY OF FUNDS.—Any amounts provided 
to the Administrator for the purposes of carrying out sec-
tion 7(l) of the Small Business Act, as amended by sub-
section (a), shall remain available until expended. 
SEC. 1132. PUBLIC POLICY GOALS. 
Section 501(d)(3) of the Small Business Investment 
Act of 1958 (15 U.S.C. 695(d)(3)) is amended— 
(1) in subparagraph (J), by striking ‘‘or’’ at the 
end; 
(2) in subparagraph (K), by striking the period 
at the end and inserting ‘‘, or’’; and 
(3) by adding at the end the following: 
‘‘(L) reduction of rates of unemployment in 
labor surplus areas, as such areas are deter-
mined by the Secretary of Labor.’’. 
SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION. 
(a) IN GENERAL.—Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended—
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(1) by redesignating paragraph (32), relating to 
increased veteran participation, 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 para-
graph (33); and 
(2) by adding at the end the following: 
‘‘(34) FLOOR PLAN FINANCING PROGRAM.— 
‘‘(A) DEFINITION.—In this paragraph, the 
term ‘eligible retail good’— 
‘‘(i) means a good for which a title 
may be obtained under State law; and 
‘‘(ii) includes an automobile, rec-
reational vehicle, boat, and manufactured 
home. 
‘‘(B) PROGRAM.—The Administrator may 
guarantee the timely payment of an open-end ex-
tension of credit to a small business concern, the 
proceeds of which may be used for the purchase 
of eligible retail goods for resale. 
‘‘(C) AMOUNT.—An open-end extension of 
credit guaranteed under this paragraph shall be 
in an amount not less than $500,000 and not 
more than $5,000,000.
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‘‘(D) TERM.—An open-end extension of 
credit guaranteed under this paragraph shall 
have a term of not more than 5 years. 
‘‘(E) GUARANTEE PERCENTAGE.—The Ad-
ministrator may guarantee— 
‘‘(i) not less than 60 percent of an 
open-end extension of credit under this 
paragraph; and 
‘‘(ii) not more than 75 percent of an 
open-end extension of credit under this 
paragraph. 
‘‘(F) ADVANCE RATE.—The lender for an 
open-end extension of credit guaranteed under 
this paragraph may allow the borrower to draw 
funds on the line of credit in an amount equal 
to not more than 100 percent of the value of the 
eligible retail goods to be purchased.’’. 
(b) SUNSET.—Effective September 30, 2013, section 
7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended— 
(1) by striking paragraph (34); and 
(2) by redesignating paragraph (35), as added 
by section 1206 of this Act, as paragraph (34).
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SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED 
FOR COMMUNITY OR ECONOMIC DEVELOP-
MENT PURPOSES. 
The Riegle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4701 et seq.) is amend-
ed by inserting after section 114 (12 U.S.C. 4713) the fol-
lowing: 
‘‘SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED 
FOR COMMUNITY OR ECONOMIC DEVELOP-
MENT PURPOSES. 
‘‘(a) DEFINITIONS.—In this section, the following defi-
nitions shall apply: 
‘‘(1) ELIGIBLE
COMMUNITY
DEVELOPMENT
FI-
NANCIAL INSTITUTION.—The term ‘eligible community 
development financial institution’ means a commu-
nity development financial institution (as described 
in section 1805.201 of title 12, Code of Federal Regu-
lations, or any successor thereto) certified by the Sec-
retary that has applied to a qualified issuer for, or 
been granted by a qualified issuer, a loan under the 
Program. 
‘‘(2) ELIGIBLE
COMMUNITY
OR
ECONOMIC
DE-
VELOPMENT PURPOSE.—The term ‘eligible community 
or economic development purpose’— 
‘‘(A) means any purpose described in sec-
tion 108(b); and
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‘‘(B) includes the provision of community 
or economic development in low-income or un-
derserved rural areas. 
‘‘(3) GUARANTEE.—The term ‘guarantee’ means 
a written agreement between the Secretary and a 
qualified issuer (or trustee), pursuant to which the 
Secretary ensures repayment of the verifiable losses of 
principal, interest, and call premium, if any, on 
notes or bonds issued by a qualified issuer to finance 
or refinance loans to eligible community development 
financial institutions. 
‘‘(4) LOAN.—The term ‘loan’ means any credit 
instrument that is extended under the Program for 
any eligible community or economic development pur-
pose. 
‘‘(5) MASTER SERVICER.— 
‘‘(A) IN
GENERAL.—The term ‘master 
servicer’ means any entity approved by the Sec-
retary in accordance with subparagraph (B) to 
oversee the activities of servicers, as provided in 
subsection (f)(4). 
‘‘(B) APPROVAL
CRITERIA
FOR
MASTER 
SERVICERS.—The Secretary shall approve or 
deny any application to become a master 
servicer under the Program not later than 90
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days after the date on which all required infor-
mation is submitted to the Secretary, based on 
the capacity and experience of the applicant 
in— 
‘‘(i) loan administration, servicing, 
and loan monitoring; 
‘‘(ii) managing regional or national 
loan intake, processing, or servicing oper-
ational systems and infrastructure; 
‘‘(iii) managing regional or national 
originator communication systems and in-
frastructure; 
‘‘(iv) developing and implementing 
training and other risk management strate-
gies on a regional or national basis; and 
‘‘(v) compliance monitoring, investor 
relations, and reporting. 
‘‘(6) PROGRAM.—The term ‘Program’ means the 
guarantee Program for bonds and notes issued for eli-
gible community or economic development purposes 
established under this section. 
‘‘(7) PROGRAM ADMINISTRATOR.—The term ‘Pro-
gram administrator’ means an entity designated by 
the issuer to perform administrative duties, as pro-
vided in subsection (f)(2).
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‘‘(8) QUALIFIED ISSUER.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
issuer’ means a community development finan-
cial institution (or any entity designated to issue 
notes or bonds on behalf of such community de-
velopment financial institution) that meets the 
qualification requirements of this paragraph. 
‘‘(B) APPROVAL CRITERIA FOR QUALIFIED 
ISSUERS.— 
‘‘(i) IN GENERAL.—The Secretary shall 
approve a qualified issuer for a guarantee 
under the Program in accordance with the 
requirements of this paragraph, and such 
additional requirements as the Secretary 
may establish, by regulation. 
‘‘(ii) TERMS AND QUALIFICATIONS.—A 
qualified issuer shall— 
‘‘(I) have appropriate expertise, 
capacity, and experience, or otherwise 
be qualified to make loans for eligible 
community or economic development 
purposes; 
‘‘(II) provide to the Secretary—
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‘‘(aa) an acceptable state-
ment of the proposed sources and 
uses of the funds; and 
‘‘(bb) a capital distribution 
plan that meets the requirements 
of subsection (c)(1); and 
‘‘(III) certify to the Secretary that 
the bonds or notes to be guaranteed are 
to be used for eligible community or 
economic development purposes. 
‘‘(C) DEPARTMENT OPINION; TIMING.— 
‘‘(i) DEPARTMENT OPINION.—Not later 
than 30 days after the date of a request by 
a qualified issuer for approval of a guar-
antee under the Program, the Secretary 
shall provide an opinion regarding compli-
ance by the issuer with the requirements of 
the Program under this section. 
‘‘(ii) TIMING.—The Secretary shall ap-
prove or deny a guarantee under this sec-
tion after consideration of the opinion pro-
vided to the Secretary under clause (i), and 
in no case later than 90 days after receipt 
of all required information by the Secretary 
with respect to a request for such guarantee.
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‘‘(9) SECRETARY.—The term ‘Secretary’ means 
the Secretary of the Treasury. 
‘‘(10) SERVICER.—The term ‘servicer’ means an 
entity designated by the issuer to perform various 
servicing duties, as provided in subsection (f)(3). 
‘‘(b) GUARANTEES AUTHORIZED.—The Secretary shall 
guarantee payments on bonds or notes issued by any quali-
fied issuer, if the proceeds of the bonds or notes are used 
in accordance with this section to make loans to eligible 
community development financial institutions— 
‘‘(1) for eligible community or economic develop-
ment purposes; or 
‘‘(2) to refinance loans or notes issued for such 
purposes. 
‘‘(c) GENERAL PROGRAM REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A capital distribution plan 
meets the requirements of this subsection, if not less 
than 90 percent of the principal amount of guaran-
teed bonds or notes (other than costs of issuance fees) 
are used to make loans for any eligible community or 
economic development purpose, measured annually, 
beginning at the end of the 1-year period beginning 
on the issuance date of such guaranteed bonds or 
notes.
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‘‘(2) RELENDING ACCOUNT.—Not more than 10 
percent of the principal amount of guaranteed bonds 
or notes, multiplied by an amount equal to the out-
standing principal balance of issued notes or bonds, 
minus the risk-share pool amount under subsection 
(d), may be held in a relending account and may be 
made available for new eligible community or eco-
nomic development purposes. 
‘‘(3) LIMITATIONS ON UNPAID PRINCIPAL BAL-
ANCES.—The proceeds of guaranteed bonds or notes 
under the Program may not be used to pay fees (other 
than costs of issuance fees), and shall be held in— 
‘‘(A) community or economic development 
loans; 
‘‘(B) a relending account, to the extent au-
thorized under paragraph (2); or 
‘‘(C) a risk-share pool established under 
subsection (d). 
‘‘(4) REPAYMENT.—If a qualified issuer fails to 
meet the requirements of paragraph (1) by the end of 
the 90-day period beginning at the end of the annual 
measurement period, repayment shall be made on that 
portion of bonds or notes necessary to bring the bonds 
or notes that remain outstanding after such repay-
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ment into compliance with the 90 percent require-
ment of paragraph (1). 
‘‘(5) PROHIBITED
USES.—The Secretary shall, 
by regulation— 
‘‘(A) prohibit, as appropriate, certain uses 
of amounts from the guarantee of a bond or note 
under the Program, including the use of such 
funds for political activities, lobbying, outreach, 
counseling services, or travel expenses; and 
‘‘(B) provide that the guarantee of a bond 
or note under the Program may not be used for 
salaries or other administrative costs of— 
‘‘(i) the qualified issuer; or 
‘‘(ii) any recipient of amounts from 
the guarantee of a bond or note. 
‘‘(d) RISK-SHARE POOL.—Each qualified issuer shall, 
during the term of a guarantee provided under the Pro-
gram, establish a risk-share pool, capitalized by contribu-
tions from eligible community development financial insti-
tution participants an amount equal to 3 percent of the 
guaranteed amount outstanding on the subject notes and 
bonds. 
‘‘(e) GUARANTEES.— 
‘‘(1) IN GENERAL.—A guarantee issued under the 
Program shall—
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‘‘(A) be for the full amount of a bond or 
note, including the amount of principal, interest, 
and call premiums; 
‘‘(B) be fully assignable and transferable to 
the capital market, on terms and conditions that 
are consistent with comparable Government- 
guaranteed bonds, and satisfactory to the Sec-
retary; 
‘‘(C) represent the full faith and credit of 
the United States; and 
‘‘(D) not exceed 30 years. 
‘‘(2) LIMITATIONS.— 
‘‘(A) ANNUAL NUMBER OF GUARANTEES.— 
The Secretary shall issue not more than 10 guar-
antees in any calendar year under the Program. 
‘‘(B) GUARANTEE AMOUNT.—The Secretary 
may not guarantee any amount under the Pro-
gram equal to less than $100,000,000, but the 
total of all such guarantees in any fiscal year 
may not exceed $1,000,000,000. 
‘‘(f) SERVICING OF TRANSACTIONS.— 
‘‘(1) IN GENERAL.—To maximize efficiencies and 
minimize cost and interest rates, loans made under 
this section may be serviced by qualified Program ad-
ministrators, bond servicers, and a master servicer.
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‘‘(2) DUTIES
OF
PROGRAM
ADMINISTRATOR.— 
The duties of a Program administrator shall in-
clude— 
‘‘(A) approving and qualifying eligible com-
munity development financial institution appli-
cations for participation in the Program; 
‘‘(B) compliance monitoring; 
‘‘(C) bond packaging in connection with the 
Program; and 
‘‘(D) all other duties and related services 
that are customarily expected of a Program ad-
ministrator. 
‘‘(3) DUTIES
OF
SERVICER.—The duties of a 
servicer shall include— 
‘‘(A) billing and collecting loan payments; 
‘‘(B) initiating collection activities on past- 
due loans; 
‘‘(C) transferring loan payments to the 
master servicing accounts; 
‘‘(D) loan administration and servicing; 
‘‘(E) systematic and timely reporting of 
loan performance through remittance and serv-
icing reports; 
‘‘(F) proper measurement of annual out-
standing loan requirements; and
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‘‘(G) all other duties and related services 
that are customarily expected of servicers. 
‘‘(4) DUTIES OF MASTER SERVICER.—The duties 
of a master servicer shall include— 
‘‘(A) tracking the movement of funds be-
tween the accounts of the master servicer and 
any other servicer; 
‘‘(B) ensuring orderly receipt of the monthly 
remittance and servicing reports of the servicer; 
‘‘(C) monitoring the collection comments 
and foreclosure actions; 
‘‘(D) aggregating the reporting and dis-
tribution of funds to trustees and investors; 
‘‘(E) removing and replacing a servicer, as 
necessary; 
‘‘(F) loan administration and servicing; 
‘‘(G) systematic and timely reporting of 
loan performance compiled from all bond 
servicers’ reports; 
‘‘(H) proper distribution of funds to inves-
tors; and 
‘‘(I) all other duties and related services 
that are customarily expected of a master 
servicer. 
‘‘(g) FEES.—
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‘‘(1) IN GENERAL.—A qualified issuer that re-
ceives a guarantee issued under this section on a bond 
or note shall pay a fee to the Secretary, in an amount 
equal to 10 basis points of the amount of the unpaid 
principal of the bond or note guaranteed. 
‘‘(2) PAYMENT.—A qualified issuer shall pay the 
fee required under this subsection on an annual basis. 
‘‘(3) USE OF FEES.—Fees collected by the Sec-
retary under this subsection shall be used to reim-
burse the Department of the Treasury for any admin-
istrative costs incurred by the Department in imple-
menting the Program established under this section. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be 
appropriated to the Secretary, such sums as are nec-
essary to carry out this section. 
‘‘(2) USE
OF
FEES.—To the extent that the 
amount of funds appropriated for a fiscal year under 
paragraph (1) are not sufficient to carry out this sec-
tion, the Secretary may use the fees collected under 
subsection (g) for the cost of providing guarantees of 
bonds and notes under this section. 
‘‘(i) INVESTMENT IN GUARANTEED BONDS INELIGIBLE 
FOR COMMUNITY REINVESTMENT ACT PURPOSES.—Not-
withstanding any other provision of law, any investment
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by a financial institution in bonds or notes guaranteed 
under the Program shall not be taken into account in assess-
ing the record of such institution for purposes of the Com-
munity Reinvestment Act of 1977 (12 U.S.C. 2901). 
‘‘(j) ADMINISTRATION.— 
‘‘(1) REGULATIONS.—Not later than 1 year after 
the date of enactment of this section, the Secretary 
shall promulgate regulations to carry out this section. 
‘‘(2) IMPLEMENTATION.—Not later than 2 years 
after the date of enactment of this section, the Sec-
retary shall implement this section. 
‘‘(k) TERMINATION.—This section is repealed, and the 
authority provided under this section shall terminate, on 
September 30, 2014.’’. 
SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT. 
(a) IN GENERAL.—Section 7(a)(31)(D) of the Small 
Business Act (15 U.S.C. 636(a)(31)(D)) is amended by 
striking ‘‘$350,000’’ and inserting ‘‘$1,000,000’’. 
(b) PROSPECTIVE REPEAL.—Effective 1 year after the 
date of enactment of this Act, section 7(a)(31)(D) of the 
Small Business Act (15 U.S.C. 636(a)(31)(D)) is amended 
by striking ‘‘$1,000,000’’ and inserting ‘‘$350,000’’.
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SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX IN-
CREASES. 
(a) IN GENERAL.—Except as provided in subsection 
(b), nothing in section 1111, 1112, 1113, 1114, 1115, 1116, 
1117, 1118, 1122, or 1131, or an amendment made by such 
sections, shall be construed to limit the ability of Congress 
to appropriate funds. 
(b) TARP FUNDS AND TAX INCREASES.— 
(1) IN
GENERAL.—Any covered amounts may 
not be used to carry out section 1111, 1112, 1113, 
1114, 1115, 1116, 1117, 1118, 1122, or 1131, or an 
amendment made by such sections. 
(2) DEFINITION.—In this subsection, the term 
‘‘covered amounts’’ means— 
(A) the amounts made available to the Sec-
retary of the Treasury under title I of the Emer-
gency Economic Stabilization Act of 2008 S.C. 
5201 et seq.) to purchase (under section 101) or 
guarantee (under section 102) assets under that 
Act; and 
(B) any revenue increase attributable to 
any amendment to the Internal Revenue Code of 
1986 made during the period beginning on the 
date of enactment of this Act and ending on De-
cember 31, 2010.
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Subtitle B—Small Business Trade 
and Exporting 
SEC. 1201. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business Ex-
port Enhancement and International Trade Act of 2010’’. 
SEC. 1202. DEFINITIONS. 
(a) DEFINITIONS.—In this subtitle— 
(1) the term ‘‘Associate Administrator’’ means 
the Associate Administrator for International Trade 
appointed under section 22(a)(2) of the Small Busi-
ness Act, as amended by this subtitle; 
(2) the term ‘‘Export Assistance Center’’ means 
a one-stop shop referred to in section 2301(b)(8) of the 
Omnibus Trade and Competitiveness Act of 1988 (15 
U.S.C. 4721(b)(8)); and 
(3) the term ‘‘rural small business concern’’ 
means a small business concern located in a rural 
area, as that term is defined in section 1393(a)(2) of 
the Internal Revenue Code of 1986. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) DEFINITIONS.—Section 3 of the Small Busi-
ness Act (15 U.S.C. 632) is amended by adding at the 
end the following:
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‘‘(t) SMALL BUSINESS DEVELOPMENT CENTER.—In 
this Act, the term ‘small business development center’ means 
a small business development center described in section 21. 
‘‘(u) REGION OF THE ADMINISTRATION.—In this Act, 
the term ‘region of the Administration’ means the geo-
graphic area served by a regional office of the Administra-
tion established under section 4(a).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
4(b)(3)(B)(x) of the Small Business Act (15 U.S.C. 
633(b)(3)(B)(x)) is amended by striking ‘‘Administra-
tion district and region’’ and inserting ‘‘district and 
region of the Administration’’. 
SEC. 1203. OFFICE OF INTERNATIONAL TRADE. 
(a) ESTABLISHMENT.—Section 22 of the Small Busi-
ness Act (15 U.S.C. 649) is amended— 
(1) by striking ‘‘SEC. 22. (a) There’’ and insert-
ing the following: 
‘‘SEC. 22. OFFICE OF INTERNATIONAL TRADE. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) OFFICE.—There’’; and 
(2) in subsection (a)— 
(A) in paragraph (1), as so designated, by 
striking the period and inserting ‘‘for the pri-
mary purposes of increasing—
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‘‘(A) the number of small business concerns 
that export; and 
‘‘(B) the volume of exports by small business 
concerns.’’; and 
(B) by adding at the end the following: 
‘‘(2) ASSOCIATE ADMINISTRATOR.—The head of 
the Office shall be the Associate Administrator for 
International Trade, who shall be responsible to the 
Administrator.’’. 
(b) AUTHORITY FOR ADDITIONAL ASSOCIATE ADMINIS-
TRATOR.—Section 4(b)(1) of the Small Business Act (15 
U.S.C. 633(b)(1)) is amended— 
(1) in the fifth sentence, by striking ‘‘five Asso-
ciate Administrators’’ and inserting ‘‘Associate Ad-
ministrators’’; and 
(2) by adding at the end the following: ‘‘One 
such Associate Administrator shall be the Associate 
Administrator for International Trade, who shall be 
the head of the Office of International Trade estab-
lished under section 22.’’. 
(c) DISCHARGE OF INTERNATIONAL TRADE RESPON-
SIBILITIES OF ADMINISTRATION.—Section 22 of the Small 
Business Act (15 U.S.C. 649) is amended by adding at the 
end the following:
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‘‘(h) DISCHARGE OF INTERNATIONAL TRADE RESPON-
SIBILITIES OF ADMINISTRATION.—The Administrator shall 
ensure that— 
‘‘(1) the responsibilities of the Administration re-
garding international trade are carried out by the As-
sociate Administrator; 
‘‘(2) the Associate Administrator has sufficient 
resources to carry out such responsibilities; and 
‘‘(3) the Associate Administrator has direct su-
pervision and control over— 
‘‘(A) the staff of the Office; and 
‘‘(B) any employee of the Administration 
whose principal duty station is an Export As-
sistance Center, or any successor entity.’’. 
(d) ROLE OF ASSOCIATE ADMINISTRATOR IN CAR-
RYING
OUT
INTERNATIONAL
TRADE
POLICY.—Section 
2(b)(1) of the Small Business Act (15 U.S.C. 631(b)(1)) is 
amended in the matter preceding subparagraph (A)— 
(1) by inserting ‘‘the Administrator of’’ before 
‘‘the Small Business Administration’’; and 
(2) by inserting ‘‘through the Associate Adminis-
trator for International Trade, and’’ before ‘‘in co-
operation with’’. 
(e) IMPLEMENTATION DATE.—Not later than 90 days 
after the date of enactment of this Act, the Administrator
† HR 5297 EAS 
of the Small Business Administration shall appoint an As-
sociate Administrator for International Trade under section 
22(a) of the Small Business Act (15 U.S.C. 649(a)), as 
added by this section. 
SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL 
TRADE. 
(a) AMENDMENTS TO SECTION 22.—Section 22 of the 
Small Business Act (15 U.S.C. 649) is amended— 
(1) by striking subsection (b) and inserting the 
following: 
‘‘(b) TRADE DISTRIBUTION NETWORK.—The Associate 
Administrator, working in close cooperation with the Sec-
retary of Commerce, the United States Trade Representa-
tive, the Secretary of Agriculture, the Secretary of State, 
the President of the Export-Import Bank of the United 
States, the President of the Overseas Private Investment 
Corporation, Director of the United States Trade and De-
velopment Agency, and other relevant Federal agencies, 
small business development centers engaged in export pro-
motion efforts, Export Assistance Centers, regional and dis-
trict offices of the Administration, the small business com-
munity, and relevant State and local export promotion pro-
grams, shall— 
‘‘(1) maintain a distribution network, using re-
gional and district offices of the Administration, the
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small business development center network, networks 
of women’s business centers, the Service Corps of Re-
tired Executives authorized by section 8(b)(1), and 
Export Assistance Centers, for programs relating to— 
‘‘(A) trade promotion; 
‘‘(B) trade finance; 
‘‘(C) trade adjustment assistance; 
‘‘(D) trade remedy assistance; and 
‘‘(E) trade data collection; 
‘‘(2) aggressively market the programs described 
in paragraph (1) and disseminate information, in-
cluding computerized marketing data, to small busi-
ness concerns on exporting trends, market-specific 
growth, industry trends, and international prospects 
for exports; 
‘‘(3) promote export assistance programs through 
the district and regional offices of the Administration, 
the small business development center network, Export 
Assistance Centers, the network of women’s business 
centers, chapters of the Service Corps of Retired Ex-
ecutives, State and local export promotion programs, 
and partners in the private sector; and 
‘‘(4) give preference in hiring or approving the 
transfer of any employee into the Office or to a posi-
tion described in subsection (c)(9) to otherwise quali-
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fied applicants who are fluent in a language in addi-
tion to English, to— 
‘‘(A) accompany small business concerns on 
foreign trade missions; and 
‘‘(B) translate documents, interpret con-
versations, and facilitate multilingual trans-
actions, including by providing referral lists for 
translation services, if required.’’; 
(2) in subsection (c)— 
(A) by striking ‘‘(c) The Office’’ and insert-
ing the following: 
‘‘(c) PROMOTION OF SALES OPPORTUNITIES.—The As-
sociate Administrator’’; 
(B) 
by 
redesignating 
paragraphs 
(1) 
through (8) as paragraphs (2) through (9), re-
spectively; 
(C) by inserting before paragraph (2), as so 
redesignated, the following: 
‘‘(1) establish annual goals for the Office relating 
to— 
‘‘(A) enhancing the exporting capability of 
small business concerns and small manufactur-
ers; 
‘‘(B) facilitating technology transfers;
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‘‘(C) enhancing programs and services to 
assist small business concerns and small manu-
facturers to compete effectively and efficiently in 
foreign markets; 
‘‘(D) increasing the ability of small business 
concerns to access capital; and 
‘‘(E) disseminating information concerning 
Federal, State, and private programs and initia-
tives;’’; 
(D) in paragraph (2), as so redesignated, by 
striking ‘‘mechanism for’’ and all that follows 
through ‘‘(D) assisting’’ and inserting the fol-
lowing: ‘‘mechanism for— 
‘‘(A) identifying subsectors of the small 
business community with strong export poten-
tial; 
‘‘(B) identifying areas of demand in foreign 
markets; 
‘‘(C) prescreening foreign buyers for com-
mercial and credit purposes; and 
‘‘(D) assisting’’; 
(E) in paragraph (3), as so redesignated, by 
striking ‘‘assist small businesses in the formation 
and utilization of’’ and inserting ‘‘assist small 
business concerns in forming and using’’;
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(F) in paragraph (4), as so redesignated— 
(i) by striking ‘‘local’’ and inserting 
‘‘district’’; 
(ii) by striking ‘‘existing’’; 
(iii) by striking ‘‘Small Business De-
velopment Center network’’ and inserting 
‘‘small business development center net-
work’’; and 
(iv) by striking ‘‘Small Business De-
velopment Center Program’’ and inserting 
‘‘small business development center pro-
gram’’; 
(G) in paragraph (5), as so redesignated— 
(i) in subparagraph (A), by striking 
‘‘Gross State Produce’’ and inserting ‘‘Gross 
State Product’’; 
(ii) in subparagraph (B), by striking 
‘‘SIC’’ each place it appears and inserting 
‘‘North American Industry Classification 
System’’; and 
(iii) in subparagraph (C), by striking 
‘‘small businesses’’ and inserting ‘‘small 
business concerns’’;
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(H) in paragraph (6), as so redesignated, 
by striking the period at the end and inserting 
a semicolon; 
(I) in paragraph (7), as so redesignated— 
(i) in the matter preceding subpara-
graph (A)— 
(I) by inserting ‘‘concerns’’ after 
‘‘small business’’; and 
(II) by striking ‘‘current’’ and in-
serting ‘‘up to date’’; 
(ii) in subparagraph (A), by striking 
‘‘Administration’s regional offices’’ and in-
serting ‘‘regional and district offices of the 
Administration’’; 
(iii) in subparagraph (B) by striking 
‘‘current’’; 
(iv) in subparagraph (C), by striking 
‘‘current’’; and 
(v) by striking ‘‘small businesses’’ each 
place that term appears and inserting 
‘‘small business concerns’’; 
(J) in paragraph (8), as so redesignated, by 
striking and at the end; 
(K) in paragraph (9), as so redesignated—
† HR 5297 EAS 
(i) in the matter preceding subpara-
graph (A)— 
(I) by striking ‘‘full-time export 
development specialists to each Admin-
istration regional office and assign-
ing’’; and 
(II) by striking ‘‘person in each 
district office. Such specialists’’ and 
inserting ‘‘individual in each district 
office and providing each Administra-
tion regional office with a full-time ex-
port development specialist, who’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘current’’; and 
(II) by striking ‘‘with’’ and in-
serting ‘‘in’’; 
(iii) in subparagraph (D)— 
(I) by striking ‘‘Administration 
personnel involved in granting’’ and 
inserting ‘‘personnel of the Administra-
tion involved in making’’; and 
(II) by striking ‘‘and’’ at the end; 
(iv) in subparagraph (E)—
† HR 5297 EAS 
(I) by striking ‘‘small businesses’ 
needs’’ and inserting ‘‘the needs of 
small business concerns’’; and 
(II) by striking the period at the 
end and inserting a semicolon; 
(v) by adding at the end the following: 
‘‘(F) participate, jointly with employees of 
the Office, in an annual training program that 
focuses on current small business needs for ex-
porting; and 
‘‘(G) develop and conduct training pro-
grams for exporters and lenders, in cooperation 
with the Export Assistance Centers, the Depart-
ment of Commerce, the Department of Agri-
culture, small business development centers, 
women’s business centers, the Export-Import 
Bank of the United States, the Overseas Private 
Investment Corporation, and other relevant Fed-
eral agencies;’’; and 
(vi) by striking ‘‘small businesses’’ each 
place that term appears and inserting 
‘‘small business concerns’’; and 
(L) by adding at the end the following:
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‘‘(10) make available on the website of the Ad-
ministration the name and contact information of 
each individual described in paragraph (9); 
‘‘(11) carry out a nationwide marketing effort 
using technology, online resources, training, and other 
strategies to promote exporting as a business develop-
ment opportunity for small business concerns; 
‘‘(12) disseminate information to the small busi-
ness community through regional and district offices 
of the Administration, the small business development 
center network, Export Assistance Centers, the net-
work of women’s business centers, chapters of the 
Service Corps of Retired Executives authorized by sec-
tion 8(b)(1), State and local export promotion pro-
grams, and partners in the private sector regarding 
exporting trends, market-specific growth, industry 
trends, and prospects for exporting; and 
‘‘(13) establish and carry out training programs 
for the staff of the regional and district offices of the 
Administration and resource partners of the Adminis-
tration on export promotion and providing assistance 
relating to exports.’’; 
(3) in subsection (d)—
† HR 5297 EAS 
(A) 
by 
redesignating 
paragraphs 
(1) 
through (5) as clauses (i) through (v), respec-
tively, and adjusting the margins accordingly; 
(B) by striking ‘‘(d) The Office’’ and insert-
ing the following: 
‘‘(d) EXPORT FINANCING PROGRAMS.— 
‘‘(1) IN
GENERAL.—The Associate Adminis-
trator’’; and 
(C) by striking ‘‘To accomplish this goal, 
the Office shall work’’ and inserting the fol-
lowing: 
‘‘(2) TRADE FINANCE SPECIALIST.—To accom-
plish the goal established under paragraph (1), the 
Associate Administrator shall— 
‘‘(A) designate at least 1 individual within 
the Administration as a trade finance specialist 
to oversee international loan programs and as-
sist Administration employees with trade finance 
issues; and 
‘‘(B) work’’; 
(4) in subsection (e), by striking ‘‘(e) The Office’’ 
and inserting the following: 
‘‘(e) TRADE
REMEDIES.—The Associate Adminis-
trator’’; 
(5) by amending subsection (f) to read as follows:
† HR 5297 EAS 
‘‘(f) REPORTING REQUIREMENT.—The Associate Ad-
ministrator shall submit an annual report to the Committee 
on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Represent-
atives that contains— 
‘‘(1) a description of the progress of the Office in 
implementing the requirements of this section; 
‘‘(2) a detailed account of the results of export 
growth activities of the Administration, including the 
activities of each district and regional office of the 
Administration, based on the performance measures 
described in subsection (i); 
‘‘(3) an estimate of the total number of jobs cre-
ated or retained as a result of export assistance pro-
vided by the Administration and resource partners of 
the Administration; 
‘‘(4) for any travel by the staff of the Office, the 
destination of such travel and the benefits to the Ad-
ministration and to small business concerns resulting 
from such travel; and 
‘‘(5) a description of the participation by the Of-
fice in trade negotiations.’’; 
(6) in subsection (g), by striking ‘‘(g) The Office’’ 
and inserting the following: 
‘‘(g) STUDIES.—The Associate Administrator’’; and
† HR 5297 EAS 
(7) by adding after subsection (h), as added by 
section 1203 of this subtitle, the following: 
‘‘(i) EXPORT AND TRADE COUNSELING.— 
‘‘(1) DEFINITION.—In this subsection— 
‘‘(A) the term ‘lead small business develop-
ment center’ means a small business development 
center that has received a grant from the Admin-
istration; and 
‘‘(B) the term ‘lead women’s business center’ 
means a women’s business center that has re-
ceived a grant from the Administration. 
‘‘(2) CERTIFICATION
PROGRAM.—The Adminis-
trator shall establish an export and trade counseling 
certification program to certify employees of lead 
small business development centers and lead women’s 
business centers in providing export assistance to 
small business concerns. 
‘‘(3) NUMBER OF CERTIFIED EMPLOYEES.—The 
Administrator shall ensure that the number of em-
ployees of each lead small business development center 
who are certified in providing export assistance is not 
less than the lesser of— 
‘‘(A) 5; or
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‘‘(B) 10 percent of the total number of em-
ployees of the lead small business development 
center. 
‘‘(4) REIMBURSEMENT FOR CERTIFICATION.— 
‘‘(A) IN
GENERAL.—Subject to the avail-
ability of appropriations, the Administrator 
shall reimburse a lead small business develop-
ment center or a lead women’s business center 
for costs relating to the certification of an em-
ployee of the lead small business center or lead 
women’s business center in providing export as-
sistance under the program established under 
paragraph (2). 
‘‘(B) LIMITATION.—The total amount reim-
bursed by the Administrator under subparagraph 
(A) may not exceed $350,000 in any fiscal year. 
‘‘(j) PERFORMANCE MEASURES.— 
‘‘(1) IN GENERAL.—The Associate Administrator 
shall develop performance measures for the Adminis-
tration to support export growth goals for the activi-
ties of the Office under this section that include— 
‘‘(A) the number of small business concerns 
that— 
‘‘(i) receive assistance from the Admin-
istration;
† HR 5297 EAS 
‘‘(ii) had not exported goods or services 
before receiving the assistance described in 
clause (i); and 
‘‘(iii) export goods or services; 
‘‘(B) the number of small business concerns 
receiving assistance from the Administration 
that export goods or services to a market outside 
the United States into which the small business 
concern did not export before receiving the assist-
ance; 
‘‘(C) export revenues by small business con-
cerns assisted by programs of the Administra-
tion; 
‘‘(D) the number of small business concerns 
referred to an Export Assistance Center or a 
small business development center by the staff of 
the Office; 
‘‘(E) the number of small business concerns 
referred to the Administration by an Export As-
sistance Center or a small business development 
center; and 
‘‘(F) the number of small business concerns 
referred to the Department of Commerce, the De-
partment of Agriculture, the Department of 
State, the Export-Import Bank of the United
† HR 5297 EAS 
States, the Overseas Private Investment Corpora-
tion, or the United States Trade and Develop-
ment Agency by the staff of the Office, an Export 
Assistance Center, or a small business develop-
ment center. 
‘‘(2) JOINT PERFORMANCE MEASURES.—The As-
sociate Administrator shall develop joint performance 
measures for the district offices of the Administration 
and the Export Assistance Centers that include the 
number of export loans made under— 
‘‘(A) section 7(a)(16); 
‘‘(B) the Export Working Capital Program 
established under section 7(a)(14); 
‘‘(C) the Preferred Lenders Program, as de-
fined in section 7(a)(2)(C)(ii); and 
‘‘(D) the export express program established 
under section 7(a)(34). 
‘‘(3) CONSISTENCY OF TRACKING.—The Associate 
Administrator, in coordination with the departments 
and agencies that are represented on the Trade Pro-
motion Coordinating Committee established under 
section 2312 of the Export Enhancement Act of 1988 
(15 U.S.C. 4727) and the small business development 
center network, shall develop a system to track exports 
by small business concerns, including information re-
† HR 5297 EAS 
lating to the performance measures developed under 
paragraph (1), that is consistent with systems used by 
the departments and agencies and the network.’’. 
(b) REPORT.—Not later than 60 days after the date 
of enactment of this Act, the Administrator shall submit 
a report to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Small Busi-
ness of the House of Representatives on any travel by the 
staff of the Office of International Trade of the Administra-
tion, during the period beginning on October 1, 2004, and 
ending on the date of enactment of the Act, including the 
destination of such travel and the benefits to the Adminis-
tration and to small business concerns resulting from such 
travel. 
SEC. 1205. EXPORT ASSISTANCE CENTERS. 
(a) EXPORT ASSISTANCE CENTERS.—Section 22 of the 
Small Business Act (15 U.S.C. 649), as amended by this 
subtitle, is amended by adding at the end the following: 
‘‘(k) EXPORT ASSISTANCE CENTERS.— 
‘‘(1) EXPORT FINANCE SPECIALISTS.— 
‘‘(A) MINIMUM
NUMBER
OF
EXPORT
FI-
NANCE SPECIALISTS.—On and after the date that 
is 90 days after the date of enactment of this 
subsection, the Administrator, in coordination 
with the Secretary of Commerce, shall ensure
† HR 5297 EAS 
that the number of export finance specialists is 
not less than the number of such employees so as-
signed on January 1, 2003. 
‘‘(B) EXPORT
FINANCE
SPECIALISTS
AS-
SIGNED TO EACH REGION OF THE ADMINISTRA-
TION.—On and after the date that is 2 years 
after the date of enactment of this subsection, the 
Administrator, in coordination with the Sec-
retary of Commerce, shall ensure that there are 
not fewer than 3 export finance specialists in 
each region of the Administration. 
‘‘(2) PLACEMENT OF EXPORT FINANCE SPECIAL-
ISTS.— 
‘‘(A) PRIORITY.—The Administrator shall 
give priority, to the maximum extent prac-
ticable, to placing employees of the Administra-
tion at any Export Assistance Center that— 
‘‘(i) had an Administration employee 
assigned to the Export Assistance Center be-
fore January 2003; and 
‘‘(ii) has not had an Administration 
employee assigned to the Export Assistance 
Center during the period beginning Janu-
ary 2003, and ending on the date of enact-
† HR 5297 EAS 
ment of this subsection, either through re-
tirement or reassignment. 
‘‘(B) NEEDS OF EXPORTERS.—The Admin-
istrator shall, to the maximum extent prac-
ticable, strategically assign Administration em-
ployees to Export Assistance Centers, based on 
the needs of exporters. 
‘‘(C) RULE OF CONSTRUCTION.—Nothing in 
this subsection may be construed to require the 
Administrator to reassign or remove an export 
finance specialist who is assigned to an Export 
Assistance Center on the date of enactment of 
this subsection. 
‘‘(3) GOALS.—The Associate Administrator shall 
work with the Department of Commerce, the Export- 
Import Bank of the United States, and the Overseas 
Private Investment Corporation to establish shared 
annual goals for the Export Assistance Centers. 
‘‘(4) OVERSIGHT.—The Associate Administrator 
shall designate an individual within the Administra-
tion to oversee all activities conducted by Administra-
tion employees assigned to Export Assistance Centers. 
‘‘(l) DEFINITIONS.—In this section—
† HR 5297 EAS 
‘‘(1) the term ‘Associate Administrator’ means 
the Associate Administrator for International Trade 
described in subsection (a)(2); 
‘‘(2) the term ‘Export Assistance Center’ means 
a one-stop shop for United States exporters estab-
lished by the United States and Foreign Commercial 
Service of the Department of Commerce pursuant to 
section 2301(b)(8) of the Omnibus Trade and Com-
petitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); 
‘‘(3) the term ‘export finance specialist’ means a 
full-time equivalent employee of the Office assigned to 
an Export Assistance Center to carry out the duties 
described in subsection (e); and 
‘‘(4) the term ‘Office’ means the Office of Inter-
national Trade established under subsection (a)(1).’’. 
(b) STUDY AND REPORT ON FILLING GAPS IN HIGH- 
AND-LOW-EXPORT VOLUME AREAS.— 
(1) STUDY
AND
REPORT.—Not later than 6 
months after the date of enactment of this Act, and 
every 2 years thereafter, the Administrator shall— 
(A) conduct a study of— 
(i) the volume of exports for each State; 
(ii) the availability of export finance 
specialists in each State;
† HR 5297 EAS 
(iii) the number of exporters in each 
State that are small business concerns; 
(iv) the percentage of exporters in each 
State that are small business concerns; 
(v) the change, if any, in the number 
of exporters that are small business concerns 
in each State— 
(I) for the first study conducted 
under this subparagraph, during the 
10-year period ending on the date of 
enactment of this Act; and 
(II) for each subsequent study, 
during the 10-year period ending on 
the date the study is commenced; 
(vi) the total value of the exports in 
each State by small business concerns; 
(vii) the percentage of the total volume 
of exports in each State that is attributable 
to small business concerns; and 
(viii) the change, if any, in the per-
centage of the total volume of exports in 
each State that is attributable to small busi-
ness concerns— 
(I) for the first study conducted 
under this subparagraph, during the
† HR 5297 EAS 
10-year period ending on the date of 
enactment of this Act; and 
(II) for each subsequent study, 
during the 10-year period ending on 
the date the study is commenced; and 
(B) submit to the Committee on Small 
Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the 
House of Representatives a report containing— 
(i) the results of the study under sub-
paragraph (A); 
(ii) to the extent practicable, a rec-
ommendation regarding how to eliminate 
gaps between the supply of and demand for 
export finance specialists in the 15 States 
that have the greatest volume of exports, 
based upon the most recent data available 
from the Department of Commerce; 
(iii) to the extent practicable, a rec-
ommendation regarding how to eliminate 
gaps between the supply of and demand for 
export finance specialists in the 15 States 
that have the lowest volume of exports, based 
upon the most recent data available from 
the Department of Commerce; and
† HR 5297 EAS 
(iv) such additional information as the 
Administrator determines is appropriate. 
(2) DEFINITION.—In this subsection, the term 
‘‘export finance specialist’’ has the meaning given 
that term in section 22(l) of the Small Business Act, 
as added by this title. 
SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS. 
(a) LOAN LIMITS.— 
(1) 
TOTAL
AMOUNT
OUTSTANDING.—Section 
7(a)(3)(B) of the Small Business Act (15 U.S.C. 
636(a)(3)(B)) is amended by striking ‘‘$1,750,000, of 
which not more than $1,250,000’’ and inserting 
‘‘$4,500,000 (or if the gross loan amount would exceed 
$5,000,000), of which not more than $4,000,000’’. 
(2) PARTICIPATION.—Section 7(a)(2) of the 
Small Business Act (15 U.S.C. 636(a)(2)) is amend-
ed— 
(A) in subparagraph (A), in the matter pre-
ceding clause (i), by striking ‘‘subparagraph 
(B)’’ and inserting ‘‘subparagraphs (B), (D), 
and (E)’’; 
(B) in subparagraph (D), by striking ‘‘Not-
withstanding subparagraph (A), in’’ and insert-
ing ‘‘In’’; and 
(C) by adding at the end the following:
† HR 5297 EAS 
‘‘(E) PARTICIPATION
IN
INTERNATIONAL 
TRADE LOAN.—In an agreement to participate 
in a loan on a deferred basis under paragraph 
(16), the participation by the Administration 
may not exceed 90 percent.’’. 
(b) WORKING CAPITAL.—Section 7(a)(16)(A) of the 
Small Business Act (15 U.S.C. 636(a)(16)(A)) is amend-
ed— 
(1) in the matter preceding clause (i), by strik-
ing ‘‘in—’’ and inserting ‘‘—’’; 
(2) in clause (i)— 
(A) by inserting ‘‘in’’ after ‘‘(i)’’; and 
(B) by striking ‘‘or’’ at the end; 
(3) in clause (ii)— 
(A) by inserting ‘‘in’’ after ‘‘(ii)’’; and 
(B) by striking the period at the end and 
inserting ‘‘, including any debt that qualifies for 
refinancing under any other provision of this 
subsection; or’’; and 
(4) by adding at the end the following: 
‘‘(iii) by providing working capital.’’. 
(c) COLLATERAL.—Section 7(a)(16)(B) of the Small 
Business Act (15 U.S.C. 636(a)(16)(B)) is amended— 
(1) by striking ‘‘Each loan’’ and inserting the 
following:
† HR 5297 EAS 
‘‘(i) IN GENERAL.—Except as provided 
in clause (ii), each loan’’; and 
(2) by adding at the end the following: 
‘‘(ii) EXCEPTION.—A loan under this 
paragraph may be secured by a second lien 
position on the property or equipment fi-
nanced by the loan or on other assets of the 
small business concern, if the Administrator 
determines the lien provides adequate assur-
ance of the payment of the loan.’’. 
(d) EXPORT WORKING CAPITAL PROGRAM.—Section 
7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended— 
(1) in paragraph (2)(D), by striking ‘‘not ex-
ceed’’ and inserting ‘‘be’’; and 
(2) in paragraph (14)— 
(A) by striking ‘‘(A) The Administration’’ 
and inserting the following: ‘‘EXPORT WORKING 
CAPITAL PROGRAM.— 
‘‘(A) IN GENERAL.—The Administrator’’; 
(B) by striking ‘‘(B) When considering’’ 
and inserting the following: 
‘‘(C) 
CONSIDERATIONS.—When 
consid-
ering’’;
† HR 5297 EAS 
(C) by striking ‘‘(C) The Administration’’ 
and inserting the following: 
‘‘(D) MARKETING.—The Administrator’’; 
and 
(D) by inserting after subparagraph (A) the 
following: 
‘‘(B) TERMS.— 
‘‘(i) LOAN
AMOUNT.—The Adminis-
trator may not guarantee a loan under this 
paragraph of more than $5,000,000. 
‘‘(ii) FEES.— 
‘‘(I) IN
GENERAL.—For a loan 
under this paragraph, the Adminis-
trator shall collect the fee assessed 
under paragraph (23) not more fre-
quently than once each year. 
‘‘(II) UNTAPPED
CREDIT.—The 
Administrator may not assess a fee on 
capital that is not accessed by the 
small business concern.’’. 
(e) PARTICIPATION IN PREFERRED LENDERS PRO-
GRAM.—Section 7(a)(2)(C) of the Small Business Act (15 
U.S.C. 636(a)(2)(C)) is amended— 
(1) by redesignating clause (ii) as clause (iii); 
and
† HR 5297 EAS 
(2) by inserting after clause (i) the following: 
‘‘(ii) EXPORT-IMPORT
BANK
LEND-
ERS.—Any lender that is participating in 
the Delegated Authority Lender Program of 
the Export-Import Bank of the United 
States (or any successor to the Program) 
shall be eligible to participate in the Pre-
ferred Lenders Program.’’. 
(f) EXPORT EXPRESS PROGRAM.—Section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)) is amended by add-
ing at the end the following: 
‘‘(35) EXPORT EXPRESS PROGRAM.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
‘‘(i) the term ‘export development ac-
tivity’ includes— 
‘‘(I) obtaining a standby letter of 
credit when required as a bid bond, 
performance bond, or advance payment 
guarantee; 
‘‘(II) participation in a trade 
show that takes place outside the 
United States; 
‘‘(III) translation of product bro-
chures or catalogues for use in markets 
outside the United States;
† HR 5297 EAS 
‘‘(IV) obtaining a general line of 
credit for export purposes; 
‘‘(V) performing a service contract 
from buyers located outside the United 
States; 
‘‘(VI) obtaining transaction-spe-
cific financing associated with com-
pleting export orders; 
‘‘(VII) purchasing real estate or 
equipment to be used in the production 
of goods or services for export; 
‘‘(VIII) providing term loans or 
other financing to enable a small busi-
ness concern, including an export trad-
ing company and an export manage-
ment company, to develop a market 
outside the United States; and 
‘‘(IX) 
acquiring, 
constructing, 
renovating, modernizing, improving, or 
expanding a production facility or 
equipment to be used in the United 
States in the production of goods or 
services for export; and 
‘‘(ii) the term ‘express loan’ means a 
loan in which a lender uses to the max-
† HR 5297 EAS 
imum extent practicable the loan analyses, 
procedures, and documentation of the lender 
to provide expedited processing of the loan 
application. 
‘‘(B) AUTHORITY.—The Administrator may 
guarantee the timely payment of an express loan 
to a small business concern made for an export 
development activity. 
‘‘(C) LEVEL OF PARTICIPATION.— 
‘‘(i) MAXIMUM
AMOUNT.—The max-
imum amount of an express loan guaran-
teed 
under 
this 
paragraph 
shall 
be 
$500,000. 
‘‘(ii) PERCENTAGE.—For an express 
loan guaranteed under this paragraph, the 
Administrator shall guarantee— 
‘‘(I) 90 percent of a loan that is 
not more than $350,000; and 
‘‘(II) 75 percent of a loan that is 
more than $350,000 and not more than 
$500,000.’’. 
(g) ANNUAL LISTING
OF EXPORT FINANCE LEND-
ERS.—Section 7(a)(16) of the Small Business Act (15 
U.S.C. 636(a)(16)) is amended by adding at the end the 
following:
† HR 5297 EAS 
‘‘(F) LIST OF EXPORT FINANCE LENDERS.— 
‘‘(i) 
PUBLICATION
OF
LIST
RE-
QUIRED.—The Administrator shall publish 
an annual list of the banks and partici-
pating lending institutions that, during the 
1-year period ending on the date of publica-
tion of the list, have made loans guaranteed 
by the Administration under— 
‘‘(I) this paragraph; 
‘‘(II) paragraph (14); or 
‘‘(III) paragraph (34). 
‘‘(ii) AVAILABILITY OF LIST.—The Ad-
ministrator shall— 
‘‘(I) post the list published under 
clause (i) on the website of the Admin-
istration; and 
‘‘(II) make the list published 
under clause (i) available, upon re-
quest, at each district office of the Ad-
ministration.’’. 
(h) APPLICABILITY.—The amendments made by sub-
sections (a) through (f) shall apply with respect to any loan 
made after the date of enactment of this Act.
† HR 5297 EAS 
SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT 
PROGRAM. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘eligible small business concern’’ 
means a small business concern that— 
(A) has been in business for not less than 
the 1-year period ending on the date on which 
assistance is provided using a grant under this 
section; 
(B) is operating profitably, based on oper-
ations in the United States; 
(C) has demonstrated understanding of the 
costs associated with exporting and doing busi-
ness with foreign purchasers, including the costs 
of freight forwarding, customs brokers, packing 
and shipping, as determined by the Associate 
Administrator; and 
(D) has in effect a strategic plan for export-
ing; 
(2) the term ‘‘program’’ means the State Trade 
and Export Promotion Grant Program established 
under subsection (b); 
(3) the term ‘‘small business concern owned and 
controlled by women’’ has the meaning given that 
term in section 3 of the Small Business Act (15 
U.S.C. 632);
† HR 5297 EAS 
(4) the term ‘‘socially and economically dis-
advantaged small business concern’’ has the meaning 
given that term in section 8(a)(4)(A) of the Small 
Business Act (15 U.S.C. 6537(a)(4)(A)); and 
(5) the term ‘‘State’’ means each of the several 
States, the District of Columbia, the Commonwealth 
of Puerto Rico, the Virgin Islands, Guam, and Amer-
ican Samoa. 
(b) ESTABLISHMENT
OF PROGRAM.—The Associate 
Administrator shall establish a 3-year trade and export 
promotion pilot program to be known as the State Trade 
and Export Promotion Grant Program, to make grants to 
States to carry out export programs that assist eligible 
small business concerns in— 
(1) participation in a foreign trade mission; 
(2) a foreign market sales trip; 
(3) a subscription to services provided by the De-
partment of Commerce; 
(4) the payment of website translation fees; 
(5) the design of international marketing media; 
(6) a trade show exhibition; 
(7) participation in training workshops; or 
(8) any other export initiative determined ap-
propriate by the Associate Administrator. 
(c) GRANTS.—
† HR 5297 EAS 
(1) JOINT REVIEW.—In carrying out the pro-
gram, the Associate Administrator may make a grant 
to a State to increase the number of eligible small 
business concerns in the State that export or to in-
crease the value of the exports by eligible small busi-
ness concerns in the State. 
(2) CONSIDERATIONS.—In making grants under 
this section, the Associate Administrator may give 
priority to an application by a State that proposes 
a program that— 
(A) focuses on eligible small business con-
cerns as part of an export promotion program; 
(B) demonstrates success in promoting ex-
ports by— 
(i) socially and economically disadvan-
taged small business concerns; 
(ii) small business concerns owned or 
controlled by women; and 
(iii) rural small business concerns; 
(C) promotes exports from a State that is 
not 1 of the 10 States with the highest percentage 
of exporters that are small business concerns, 
based upon the latest data available from the De-
partment of Commerce; and
† HR 5297 EAS 
(D) promotes new-to-market export opportu-
nities to the People’s Republic of China for eligi-
ble small business concerns in the United States. 
(3) LIMITATIONS.— 
(A) SINGLE
APPLICATION.—A State may 
not submit more than 1 application for a grant 
under the program in any 1 fiscal year. 
(B) PROPORTION OF AMOUNTS.—The total 
value of grants under the program made during 
a fiscal year to the 10 States with the highest 
number of exporters that are small business con-
cerns, based upon the latest data available from 
the Department of Commerce, shall be not more 
than 40 percent of the amounts appropriated for 
the program for that fiscal year. 
(4) APPLICATION.—A State desiring a grant 
under the program shall submit an application at 
such time, in such manner, and accompanied by such 
information as the Associate Administrator may es-
tablish. 
(d) COMPETITIVE BASIS.—The Associate Adminis-
trator shall award grants under the program on a competi-
tive basis.
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(e) FEDERAL SHARE.—The Federal share of the cost 
of an export program carried out using a grant under the 
program shall be— 
(1) for a State that has a high export volume, as 
determined by the Associate Administrator, not more 
than 65 percent; and 
(2) for a State that does not have a high export 
volume, as determined by the Associate Adminis-
trator, not more than 75 percent. 
(f) NON-FEDERAL SHARE.—The non-Federal share of 
the cost of an export program carried using a grant under 
the program shall be comprised of not less than 50 percent 
cash and not more than 50 percent of indirect costs and 
in-kind contributions, except that no such costs or contribu-
tions may be derived from funds from any other Federal 
program. 
(g) REPORTS.— 
(1) INITIAL REPORT.—Not later than 120 days 
after the date of enactment of this Act, the Associate 
Administrator shall submit to the Committee on 
Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House 
of Representatives a report, which shall include— 
(A) a description of the structure of and 
procedures for the program;
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(B) a management plan for the program; 
and 
(C) a description of the merit-based review 
process to be used in the program. 
(2) ANNUAL REPORTS.—The Associate Adminis-
trator shall submit an annual report to the Com-
mittee on Small Business and Entrepreneurship of 
the Senate and the Committee on Small Business of 
the House of Representatives regarding the program, 
which shall include— 
(A) the number and amount of grants made 
under the program during the preceding year; 
(B) a list of the States receiving a grant 
under the program during the preceding year, 
including the activities being performed with 
grant; and 
(C) the effect of each grant on exports by el-
igible small business concerns in the State receiv-
ing the grant. 
(h) REVIEWS BY INSPECTOR GENERAL.— 
(1) IN GENERAL.—The Inspector General of the 
Administration shall conduct a review of— 
(A) the extent to which recipients of grants 
under the program are measuring the perform-
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ance of the activities being conducted and the re-
sults of the measurements; and 
(B) the overall management and effective-
ness of the program. 
(2) REPORT.—Not later than September 30, 
2012, the Inspector General of the Administration 
shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a re-
port regarding the review conducted under paragraph 
(1). 
(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out the program 
$30,000,000 for each of fiscal years 2011, 2012, and 2013. 
(j) TERMINATION.—The authority to carry out the pro-
gram shall terminate 3 years after the date on which the 
Associate Administrator establishes the program. 
SEC. 1208. RURAL EXPORT PROMOTION. 
Not later than 6 months after the date of enactment 
of this Act, the Administrator, in consultation with the Sec-
retary of Agriculture and the Secretary of Commerce, shall 
submit to the Committee on Small Business and Entrepre-
neurship of the Senate and the Committee on Small Busi-
ness of the House of Representatives a report that con-
tains—
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(1) a description of each program of the Admin-
istration that promotes exports by rural small busi-
ness concerns, including— 
(A) the number of rural small business con-
cerns served by the program; 
(B) the change, if any, in the number of 
rural small business concerns as a result of par-
ticipation in the program during the 10-year pe-
riod ending on the date of enactment of this Act; 
(C) the volume of exports by rural small 
business concerns that participate in the pro-
gram; and 
(D) the change, if any, in the volume of ex-
ports by rural small businesses that participate 
in the program during the 10-year period ending 
on the date of enactment of this Act; 
(2) a description of the coordination between 
programs of the Administration and other Federal 
programs that promote exports by rural small busi-
ness concerns; 
(3) recommendations, if any, for improving the 
coordination described in paragraph (2); 
(4) a description of any plan by the Administra-
tion to market the international trade financing pro-
grams of the Administration through lenders that—
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(A) serve rural small business concerns; and 
(B) are associated with financing programs 
of the Department of Agriculture; 
(5) recommendations, if any, for improving co-
ordination between the counseling programs and ex-
port financing programs of the Administration, in 
order to increase the volume of exports by rural small 
business concerns; and 
(6) any additional information the Adminis-
trator determines is necessary. 
SEC. 
1209. 
INTERNATIONAL 
TRADE 
COOPERATION 
BY 
SMALL BUSINESS DEVELOPMENT CENTERS. 
Section 21(a) of the Small Business Act (15 U.S.C. 
648(a)) is amended— 
(1) by striking ‘‘(2) The Small Business Develop-
ment Centers’’ and inserting the following: 
‘‘(2) COOPERATION TO PROVIDE INTERNATIONAL 
TRADE SERVICES.— 
‘‘(A) INFORMATION
AND
SERVICES.—The 
small business development centers’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), as so designated, 
by inserting ‘‘(including State trade agencies),’’ 
after ‘‘local agencies’’; and 
(B) by adding at the end the following:
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‘‘(B) COOPERATION
WITH
STATE
TRADE 
AGENCIES AND EXPORT ASSISTANCE CENTERS.— 
A small business development center that coun-
sels a small business concern on issues relating 
to international trade shall— 
‘‘(i) consult with State trade agencies 
and Export Assistance Centers to provide 
appropriate services to the small business 
concern; and 
‘‘(ii) as necessary, refer the small busi-
ness concern to a State trade agency or an 
Export Assistance Center for further coun-
seling or assistance. 
‘‘(C) DEFINITION.—In this paragraph, the 
term ‘Export Assistance Center’ has the same 
meaning as in section 22.’’. 
Subtitle C—Small Business 
Contracting 
PART I—CONTRACT BUNDLING 
SEC. 1311. SMALL BUSINESS ACT. 
Section 3 of the Small Business Act (15 U.S.C. 632), 
as amended by section 1202, is amended by adding at the 
end the following: 
‘‘(v) MULTIPLE AWARD CONTRACT.—In this Act, the 
term ‘multiple award contract’ means—
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‘‘(1) a multiple award task order contract or de-
livery order contract that is entered into under the 
authority of sections 303H through 303K of the Fed-
eral Property and Administrative Services Act of 
1949 (41 U.S.C. 253h through 253k); and 
‘‘(2) any other indefinite delivery, indefinite 
quantity contract that is entered into by the head of 
a Federal agency with 2 or more sources pursuant to 
the same solicitation.’’. 
SEC. 1312. LEADERSHIP AND OVERSIGHT. 
(a) IN GENERAL.—Section 15 of the Small Business 
Act (15 U.S.C. 644) is amended by adding at the end the 
following: 
‘‘(q) BUNDLING ACCOUNTABILITY MEASURES.— 
‘‘(1) TEAMING
REQUIREMENTS.—Each Federal 
agency shall include in each solicitation for any mul-
tiple award contract above the substantial bundling 
threshold of the Federal agency a provision soliciting 
bids from any responsible source, including respon-
sible small business concerns and teams or joint ven-
tures of small business concerns. 
‘‘(2) POLICIES
ON
REDUCTION
OF
CONTRACT 
BUNDLING.— 
‘‘(A) IN GENERAL.—Not later than 1 year 
after the date of enactment of this subsection, the
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Federal Acquisition Regulatory Council estab-
lished under section 25(a) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 4219(a)) 
shall amend the Federal Acquisition Regulation 
issued under section 25 of such Act to— 
‘‘(i) establish a Government-wide pol-
icy regarding contract bundling, including 
regarding the solicitation of teaming and 
joint ventures under paragraph (1); and 
‘‘(ii) require that the policy established 
under clause (i) be published on the website 
of each Federal agency. 
‘‘(B) RATIONALE
FOR
CONTRACT
BUN-
DLING.—Not later than 30 days after the date on 
which the head of a Federal agency submits data 
certifications to the Administrator for Federal 
Procurement Policy, the head of the Federal 
agency shall publish on the website of the Federal 
agency a list and rationale for any bundled con-
tract for which the Federal agency solicited bids 
or that was awarded by the Federal agency. 
‘‘(3) REPORTING.—Not later than 90 days after 
the date of enactment of this subsection, and every 3 
years thereafter, the Administrator shall submit to the 
Committee on Small Business and Entrepreneurship
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of the Senate and the Committee on Small Business 
of the House of Representatives a report regarding 
procurement center representatives and commercial 
market representatives, which shall— 
‘‘(A) identify each area for which the Ad-
ministration has assigned a procurement center 
representative or a commercial market represent-
ative; 
‘‘(B) explain why the Administration se-
lected the areas identified under subparagraph 
(A); and 
‘‘(C) describe the activities performed by 
procurement center representatives and commer-
cial market representatives.’’. 
(b) TECHNICAL CORRECTION.—Section 15(g) of the 
Small Business Act (15 U.S.C. 644(g)) is amended by strik-
ing ‘‘Administrator of the Office of Federal Procurement 
Policy’’ each place it appears and inserting ‘‘Administrator 
for Federal Procurement Policy’’. 
(c) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of enactment of this Act, the Comptroller 
General of the United States shall submit to Congress 
a report regarding the procurement center representa-
tive program of the Administration.
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(2) CONTENTS.—The report submitted under 
paragraph (1) shall— 
(A) address ways to improve the effective-
ness of the procurement center representative 
program in helping small business concerns ob-
tain Federal contracts; 
(B) evaluate the effectiveness of procurement 
center representatives and commercial marketing 
representatives; and 
(C) include recommendations, if any, on 
how to improve the procurement center rep-
resentative program. 
(d) ELECTRONIC PROCUREMENT CENTER REPRESENT-
ATIVE.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of enactment of this Act, the Administrator 
shall implement a 3-year pilot electronic procurement 
center representative program. 
(2) REPORT.—Not later than 30 days after the 
pilot program under paragraph (1) ends, the Comp-
troller General of the United States shall submit to 
the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Busi-
ness of the House of Representatives a report regard-
ing the pilot program.
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SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS. 
(a) IN GENERAL.—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. CONSOLIDATION OF CONTRACT REQUIREMENTS. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘Chief Acquisition Officer’ means 
the employee of a Federal agency designated as the 
Chief Acquisition Officer for the Federal agency under 
section 16(a) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 414(a)); 
‘‘(2) the term ‘consolidation of contract require-
ments’, with respect to contract requirements of a 
Federal agency, means a use of a solicitation to ob-
tain offers for a single contract or a multiple award 
contract to satisfy 2 or more requirements of the Fed-
eral agency for goods or services that have been pro-
vided to or performed for the Federal agency under 2 
or more separate contracts lower in cost than the total 
cost of the contract for which the offers are solicited; 
and 
‘‘(3) the term ‘senior procurement executive’ 
means an official designated under section 16(c) of 
the Office of Federal Procurement Policy Act (41
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U.S.C. 414(c)) as the senior procurement executive for 
a Federal agency. 
‘‘(b) POLICY.—The head of each Federal agency shall 
ensure that the decisions made by the Federal agency re-
garding consolidation of contract requirements of the Fed-
eral agency are made with a view to providing small busi-
ness concerns with appropriate opportunities to participate 
as prime contractors and subcontractors in the procure-
ments of the Federal agency. 
‘‘(c) LIMITATION ON USE OF ACQUISITION STRATE-
GIES INVOLVING CONSOLIDATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (4), the 
head of a Federal agency may not carry out an ac-
quisition strategy that includes a consolidation of 
contract requirements of the Federal agency with a 
total value of more than $2,000,000, unless the senior 
procurement executive or Chief Acquisition Officer for 
the Federal agency, before carrying out the acquisi-
tion strategy— 
‘‘(A) conducts market research; 
‘‘(B) identifies any alternative contracting 
approaches that would involve a lesser degree of 
consolidation of contract requirements;
† HR 5297 EAS 
‘‘(C) makes a written determination that 
the consolidation of contract requirements is nec-
essary and justified; 
‘‘(D) identifies any negative impact by the 
acquisition strategy on contracting with small 
business concerns; and 
‘‘(E) certifies to the head of the Federal 
agency that steps will be taken to include small 
business concerns in the acquisition strategy. 
‘‘(2) DETERMINATION THAT CONSOLIDATION IS 
NECESSARY AND JUSTIFIED.— 
‘‘(A) IN GENERAL.—A senior procurement 
executive or Chief Acquisition Officer may deter-
mine that an acquisition strategy involving a 
consolidation of contract requirements is nec-
essary and justified for the purposes of para-
graph (1)(C) if the benefits of the acquisition 
strategy substantially exceed the benefits of each 
of the possible alternative contracting approaches 
identified under paragraph (1)(B). 
‘‘(B) SAVINGS IN ADMINISTRATIVE OR PER-
SONNEL COSTS.—For purposes of subparagraph 
(A), savings in administrative or personnel costs 
alone do not constitute a sufficient justification 
for a consolidation of contract requirements in a
† HR 5297 EAS 
procurement unless the expected total amount of 
the cost savings, as determined by the senior pro-
curement executive or Chief Acquisition Officer, 
is expected to be substantial in relation to the 
total cost of the procurement. 
‘‘(3) BENEFITS TO BE CONSIDERED.—The bene-
fits considered for the purposes of paragraphs (1) and 
(2) may include cost and, regardless of whether quan-
tifiable in dollar amounts— 
‘‘(A) quality; 
‘‘(B) acquisition cycle; 
‘‘(C) terms and conditions; and 
‘‘(D) any other benefit. 
‘‘(4) DEPARTMENT OF DEFENSE.— 
‘‘(A) IN GENERAL.—The Department of De-
fense and each military department shall comply 
with this section until after the date described in 
subparagraph (C). 
‘‘(B) RULE.—After the date described in 
subparagraph (C), contracting by the Depart-
ment of Defense or a military department shall 
be conducted in accordance with section 2382 of 
title 10, United States Code. 
‘‘(C) DATE.—The date described in this sub-
paragraph is the date on which the Adminis-
† HR 5297 EAS 
trator determines the Department of Defense or 
a military department is in compliance with the 
Government-wide contracting goals under section 
15.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—Sec-
tion 2382(b)(1) of title 10, United States Code, is amended 
by striking ‘‘An official’’ and inserting ‘‘Subject to section 
44(c)(4), an official’’. 
SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘Pilot Program’’ means the Small 
Business Teaming Pilot Program established under 
subsection (b); and 
(2) the term ‘‘eligible organization’’ means a 
well-established national organization for small busi-
ness concerns with the capacity to provide assistance 
to small business concerns (which may be provided 
with the assistance of the Administrator) relating 
to— 
(A) customer relations and outreach; 
(B) team relations and outreach; and 
(C) performance measurement and quality 
assurance.
† HR 5297 EAS 
(b) ESTABLISHMENT.—The Administrator shall estab-
lish a Small Business Teaming Pilot Program for teaming 
and joint ventures involving small business concerns. 
(c) GRANTS.—Under the Pilot Program, the Adminis-
trator may make grants to eligible organizations to provide 
assistance and guidance to teams of small business concerns 
seeking to compete for larger procurement contracts. 
(d) CONTRACTING OPPORTUNITIES.—The Adminis-
trator shall work with eligible organizations receiving a 
grant under the Pilot Program to recommend appropriate 
contracting opportunities for teams or joint ventures of 
small business concerns. 
(e) REPORT.—Not later than 1 year before the date 
on which the authority to carry out the Pilot Program ter-
minates under subsection (f), the Administrator shall sub-
mit to the Committee on Small Business and Entrepreneur-
ship of the Senate and the Committee on Small Business 
of the House of Representatives a report on the effectiveness 
of the Pilot Program. 
(f) TERMINATION.—The authority to carry out the 
Pilot Program shall terminate 5 years after the date of en-
actment of this Act. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated for grants under subsection 
(c) $5,000,000 for each of fiscal years 2010 through 2015.
† HR 5297 EAS 
PART II—SUBCONTRACTING INTEGRITY 
SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS. 
Not later than 1 year after the date of enactment of 
this Act, the Administrator, in consultation with the Ad-
ministrator for Federal Procurement Policy, shall promul-
gate regulations relating to, and the Federal Acquisition 
Regulatory Council established under section 25(a) of the 
Office of Federal Procurement Policy Act (41 U.S.C. 
421(a)) shall amend the Federal Acquisition Regulation 
issued under section 25 of such Act to establish a policy 
on, subcontracting compliance relating to small business 
concerns, including assignment of compliance responsibil-
ities between contracting offices, small business offices, and 
program offices and periodic oversight and review activi-
ties. 
SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVE-
MENTS. 
Section 8(d)(6) of the Small Business Act (15 U.S.C. 
637(d)(6)) is amended— 
(1) in subparagraph (E), by striking ‘‘and’’ at 
the end; 
(2) in subparagraph (F), by striking the period 
at the end and inserting ‘‘; and’’; and 
(3) by adding at the end, the following: 
‘‘(G) a representation that the offeror or 
bidder will—
† HR 5297 EAS 
‘‘(i) make a good faith effort to acquire 
articles, equipment, supplies, services, or 
materials, or obtain the performance of con-
struction work from the small business con-
cerns used in preparing and submitting to 
the contracting agency the bid or proposal, 
in the same amount and quality used in 
preparing and submitting the bid or pro-
posal; and 
‘‘(ii) provide to the contracting officer 
a written explanation if the offeror or bid-
der fails to acquire articles, equipment, sup-
plies, services, or materials or obtain the 
performance of construction work as de-
scribed in clause (i).’’. 
PART III—ACQUISITION PROCESS 
SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS 
FOR SMALL BUSINESSES. 
Section 15 of the Small Business Act (15 U.S.C. 644), 
as amended by this Act, is amended by adding at the end 
the following: 
‘‘(r) MULTIPLE AWARD CONTRACTS.—Not later than 
1 year after the date of enactment of this subsection, the 
Administrator for Federal Procurement Policy and the Ad-
ministrator, in consultation with the Administrator of Gen-
† HR 5297 EAS 
eral Services, shall, by regulation, establish guidance under 
which Federal agencies may, at their discretion— 
‘‘(1) set aside part or parts of a multiple award 
contract for small business concerns, including the 
subcategories of small business concerns identified in 
subsection (g)(2); 
‘‘(2) notwithstanding the fair opportunity re-
quirements under section 2304c(b) of title 10, United 
States Code, and section 303J(b) of the Federal Prop-
erty and Administrative Services Act of 1949 (41 
U.S.C. 253j(b)), set aside orders placed against mul-
tiple award contracts for small business concerns, in-
cluding the subcategories of small business concerns 
identified in subsection (g)(2); and 
‘‘(3) reserve 1 or more contract awards for small 
business concerns under full and open multiple award 
procurements, including the subcategories of small 
business concerns identified in subsection (g)(2).’’. 
SEC. 1332. MICRO-PURCHASE GUIDELINES. 
Not later than 1 year after the date of enactment of 
this Act, the Director of the Office of Management and 
Budget, in coordination with the Administrator of General 
Services, shall issue guidelines regarding the analysis of 
purchase card expenditures to identify opportunities for 
achieving and accurately measuring fair participation of
† HR 5297 EAS 
small business concerns in purchases in an amount not in 
excess of the micro-purchase threshold, as defined in section 
32 of the Office of Federal Procurement Policy Act (41 
U.S.C. 428) (in this section referred to as ‘‘micro-pur-
chases’’), consistent with the national policy on small busi-
ness participation in Federal procurements set forth in sec-
tions 2(a) and 15(g) of the Small Business Act (15 U.S.C. 
631(a) and 644(g)), and dissemination of best practices for 
participation of small business concerns in micro-pur-
chases. 
SEC. 1333. AGENCY ACCOUNTABILITY. 
Section 15(g)(2) of the Small Business Act (15 U.S.C. 
644(g)(2)) is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 
(2) by striking ‘‘Goals established’’ and inserting 
the following: 
‘‘(B) Goals established’’; 
(3) by striking ‘‘Whenever’’ and inserting the fol-
lowing: 
‘‘(C) Whenever’’; 
(4) by striking ‘‘For the purpose of’’ and insert-
ing the following: 
‘‘(D) For the purpose of’’;
† HR 5297 EAS 
(5) by striking ‘‘The head of each Federal agen-
cy, in attempting to attain such participation’’ and 
inserting the following: 
‘‘(E) The head of each Federal agency, in attempting 
to attain the participation described in subparagraph (D)’’. 
(6) in subparagraph (E), as so designated— 
(A) by striking ‘‘(A) contracts’’ and insert-
ing ‘‘(i) contracts’’; and 
(B) by striking ‘‘(B) contracts’’ and insert-
ing ‘‘(ii) contracts’’; and 
(7) by adding at the end the following: 
‘‘(F)(i) Each procurement employee or program man-
ager described in clause (ii) shall communicate to the subor-
dinates of the procurement employee or program manager 
the importance of achieving small business goals. 
‘‘(ii) A procurement employee or program manager de-
scribed in this clause is a senior procurement executive, sen-
ior program manager, or Director of Small and Disadvan-
taged Business Utilization of a Federal agency having con-
tracting authority.’’. 
SEC. 1334. PAYMENT OF SUBCONTRACTORS. 
Section 8(d) of the Small Business Act (15 U.S.C. 
637(d)) is amended by adding at the end the following: 
‘‘(12) PAYMENT OF SUBCONTRACTORS.—
† HR 5297 EAS 
‘‘(A) DEFINITION.—In this paragraph, the term 
‘covered contract’ means a contract relating to which 
a prime contractor is required to develop a subcon-
tracting plan under paragraph (4) or (5). 
‘‘(B) NOTICE.— 
‘‘(i) IN GENERAL.—A prime contractor for 
a covered contract shall notify in writing the 
contracting officer for the covered contract if the 
prime contractor pays a reduced price to a sub-
contractor for goods and services upon comple-
tion of the responsibilities of the subcontractor or 
the payment to a subcontractor is more than 90 
days past due for goods or services provided for 
the covered contract for which the Federal agency 
has paid the prime contractor. 
‘‘(ii) CONTENTS.—A prime contractor shall 
include the reason for the reduction in a pay-
ment to or failure to pay a subcontractor in any 
notice made under clause (i). 
‘‘(C) PERFORMANCE.—A contracting officer for a 
covered contract shall consider the unjustified failure 
by a prime contractor to make a full or timely pay-
ment to a subcontractor in evaluating the perform-
ance of the prime contractor.
100 
† HR 5297 EAS 
‘‘(D) CONTROL OF FUNDS.—If the contracting of-
ficer for a covered contract determines that a prime 
contractor has a history of unjustified, untimely pay-
ments to contractors, the contracting officer shall 
record the identity of the contractor in accordance 
with the regulations promulgated under subparagraph 
(E). 
‘‘(E) REGULATIONS.—Not later than 1 year after 
the date of enactment of this paragraph, the Federal 
Acquisition Regulatory Council established under sec-
tion 25(a) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 421(a)) shall amend the Federal Ac-
quisition Regulation issued under section 25 of such 
Act to— 
‘‘(i) describe the circumstances under which 
a contractor may be determined to have a his-
tory of unjustified, untimely payments to sub-
contractors; 
‘‘(ii) establish a process for contracting offi-
cers to record the identity of a contractor de-
scribed in clause (i); and 
‘‘(iii) require the identity of a contractor 
described in clause (i) to be incorporated in, and 
made publicly available through, the Federal
101 
† HR 5297 EAS 
Awardee Performance and Integrity Information 
System, or any successor thereto.’’. 
SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS 
DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—The Business Opportunity Develop-
ment Reform Act of 1988 (Public Law 100–656) is amended 
by striking title VII (15 U.S.C. 644 note). 
(b) EFFECTIVE
DATE
AND
APPLICABILITY.—The 
amendment made by this section— 
(1) shall take effect on the date of enactment of 
this Act; and 
(2) apply to the first full fiscal year after the 
date of enactment of this Act. 
PART IV—SMALL BUSINESS SIZE AND STATUS 
INTEGRITY 
SEC. 1341. POLICY AND PRESUMPTIONS. 
Section 3 of the Small Business Act (15 U.S.C. 632), 
as amended by section 1311, is amended by adding at the 
end the following: 
‘‘(w) PRESUMPTION.— 
‘‘(1) IN
GENERAL.—In every contract, sub-
contract, cooperative agreement, cooperative research 
and development agreement, or grant which is set 
aside, reserved, or otherwise classified as intended for 
award to small business concerns, there shall be a pre-
102 
† HR 5297 EAS 
sumption of loss to the United States based on the 
total amount expended on the contract, subcontract, 
cooperative agreement, cooperative research and devel-
opment agreement, or grant whenever it is established 
that a business concern other than a small business 
concern willfully sought and received the award by 
misrepresentation. 
‘‘(2) DEEMED
CERTIFICATIONS.—The following 
actions shall be deemed affirmative, willful, and in-
tentional certifications of small business size and sta-
tus: 
‘‘(A) Submission of a bid or proposal for a 
Federal grant, contract, subcontract, cooperative 
agreement, or cooperative research and develop-
ment agreement reserved, set aside, or otherwise 
classified as intended for award to small busi-
ness concerns. 
‘‘(B) Submission of a bid or proposal for a 
Federal grant, contract, subcontract, cooperative 
agreement, or cooperative research and develop-
ment agreement which in any way encourages a 
Federal agency to classify the bid or proposal, if 
awarded, as an award to a small business con-
cern.
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† HR 5297 EAS 
‘‘(C) Registration on any Federal electronic 
database for the purpose of being considered for 
award of a Federal grant, contract, subcontract, 
cooperative agreement, or cooperative research 
agreement, as a small business concern. 
‘‘(3) CERTIFICATION BY SIGNATURE OF RESPON-
SIBLE OFFICIAL.— 
‘‘(A) IN GENERAL.—Each solicitation, bid, 
or application for a Federal contract, sub-
contract, or grant shall contain a certification 
concerning the small business size and status of 
a business concern seeking the Federal contract, 
subcontract, or grant. 
‘‘(B) CONTENT OF CERTIFICATIONS.—A cer-
tification that a business concern qualifies as a 
small business concern of the exact size and sta-
tus claimed by the business concern for purposes 
of bidding on a Federal contract or subcontract, 
or applying for a Federal grant, shall contain 
the signature of an authorized official on the 
same page on which the certification is con-
tained. 
‘‘(4) REGULATIONS.—The Administrator shall 
promulgate regulations to provide adequate protec-
tions to individuals and business concerns from li-
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ability under this subsection in cases of unintentional 
errors, technical malfunctions, and other similar situ-
ations.’’. 
SEC. 1342. ANNUAL CERTIFICATION. 
Section 3 of the Small Business Act (15 U.S.C. 632), 
as amended by section 1341, is amended by adding at the 
end the following: 
‘‘(x) ANNUAL CERTIFICATION.— 
‘‘(1) IN GENERAL.—Each business certified as a 
small business concern under this Act shall annually 
certify its small business size and, if appropriate, its 
small business status, by means of a confirming entry 
on the Online Representations and Certifications Ap-
plication database of the Administration, or any suc-
cessor thereto. 
‘‘(2) REGULATIONS.—Not later than 1 year after 
the date of enactment of this subsection, the Adminis-
trator, in consultation with the Inspector General and 
the Chief Counsel for Advocacy of the Administration, 
shall promulgate regulations to ensure that— 
‘‘(A) no business concern continues to be 
certified as a small business concern on the On-
line Representations and Certifications Applica-
tion database of the Administration, or any suc-
cessor thereto, without fulfilling the requirements
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for annual certification under this subsection; 
and 
‘‘(B) the requirements of this subsection are 
implemented in a manner presenting the least 
possible regulatory burden on small business con-
cerns.’’. 
SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCE-
MENT PERSONNEL. 
(a) IN GENERAL.—Not later than 1 year after the date 
of enactment of this Act, the Federal Acquisition Institute, 
in consultation with the Administrator for Federal Procure-
ment Policy, the Defense Acquisition University, and the 
Administrator, shall develop courses for acquisition per-
sonnel concerning proper classification of business concerns 
and small business size and status for purposes of Federal 
contracts, subcontracts, grants, cooperative agreements, and 
cooperative research and development agreements. 
(b) POLICY ON PROSECUTIONS OF SMALL BUSINESS 
SIZE AND STATUS FRAUD.—Section 3 of the Small Busi-
ness Act (15 U.S.C. 632), as amended by section 1342, is 
amended by adding at the end the following: 
‘‘(y) POLICY ON PROSECUTIONS OF SMALL BUSINESS 
SIZE AND STATUS FRAUD.—Not later than 1 year after the 
date of enactment of this subsection, the Administrator, in 
consultation with the Attorney General, shall issue a Gov-
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ernment-wide policy on prosecution of small business size 
and status fraud, which shall direct Federal agencies to ap-
propriately publicize the policy.’’. 
SEC. 1344. UPDATED SIZE STANDARDS. 
(a) ROLLING REVIEW.— 
(1) IN GENERAL.—The Administrator shall— 
(A) during the 18-month period beginning 
on the date of enactment of this Act, and during 
every 18-month period thereafter, conduct a de-
tailed review of not less than 1⁄3 of the size stand-
ards for small business concerns established 
under section 3(a)(2) of the Small Business Act 
(15 U.S.C. 632(a)(2)), which shall include hold-
ing not less than 2 public forums located in dif-
ferent geographic regions of the United States; 
(B) after completing each review under sub-
paragraph (A) make appropriate adjustments to 
the size standards established under section 
3(a)(2) of the Small Business Act to reflect mar-
ket conditions; 
(C) make publicly available— 
(i) information regarding the factors 
evaluated as part of each review conducted 
under subparagraph (A); and
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(ii) information regarding the criteria 
used for any revised size standards promul-
gated under subparagraph (B); and 
(D) not later than 30 days after the date on 
which the Administrator completes each review 
under subparagraph (A), submit to the Com-
mittee on Small Business and Entrepreneurship 
of the Senate and the Committee on Small Busi-
ness of the House of Representatives and make 
publicly available a report regarding the review, 
including why the Administrator— 
(i) used the factors and criteria de-
scribed in subparagraph (C); and 
(ii) adjusted or did not adjust each size 
standard that was reviewed under the re-
view. 
(2) COMPLETE REVIEW OF SIZE STANDARDS.— 
The Administrator shall ensure that each size stand-
ard for small business concerns established under sec-
tion 3(a)(2) of the Small Business Act (15 U.S.C. 
632(a)(2)) is reviewed under paragraph (1) not less 
frequently than once every 5 years. 
(b) RULES.—Not later than 1 year after the date of 
enactment of this Act, the Administrator shall promulgate
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rules for conducting the reviews required under subsection 
(a). 
SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE 
PROGRAM. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the mentor-protege 
program of the Administration for small business concerns 
participating in programs under section 8(a) of the Small 
Business Act (15 U.S.C. 637(a)), and other relationships 
and strategic alliances pairing a larger business and a 
small business concern partner to gain access to Federal 
Government contracts, to determine whether the programs 
and relationships are effectively supporting the goal of in-
creasing the participation of small business concerns in 
Government contracting. 
(b) MATTERS TO BE STUDIED.—The study conducted 
under this section shall include— 
(1) a review of a broad cross-section of indus-
tries; and 
(2) an evaluation of— 
(A) how each Federal agency carrying out 
a program described in subsection (a) admin-
isters and monitors the program; 
(B) whether there are systems in place to 
ensure that the mentor-protege relationship, or
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similar affiliation, promotes real gain to the 
protege, and is not just a mechanism to enable 
participants that would not otherwise qualify 
under section 8(a) of the Small Business Act (15 
U.S.C. 637(a)) to receive contracts under that 
section; and 
(C) the degree to which protege businesses 
become able to compete for Federal contracts 
without the assistance of a mentor. 
(c) REPORT TO CONGRESS.—Not later than 180 days 
after the date of enactment of this Act, the Comptroller Gen-
eral shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a report on 
the results of the study conducted under this section. 
SEC. 1346. CONTRACTING GOALS REPORTS. 
Section 15(h)(2) of the Small Business Act (15 U.S.C. 
644(h)(2)) is amended by striking ‘‘submit them’’ and all 
that follows through ‘‘the following:’’ and inserting ‘‘submit 
to the President and the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives the compila-
tion and analysis, which shall include the following:’’. 
SEC. 1347. SMALL BUSINESS CONTRACTING PARITY. 
(a) DEFINITIONS.—In this section—
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(1) the terms ‘‘Administration’’ and ‘‘Adminis-
trator’’ mean the Small Business Administration and 
the Administrator thereof, respectively; and 
(2) the terms ‘‘HUBZone small business con-
cern’’, ‘‘small business concern’’, ‘‘small business con-
cern owned and controlled by service-disabled vet-
erans’’, and ‘‘small business concern owned and con-
trolled by women’’ have the same meanings as in sec-
tion 3 of the Small Business Act (15 U.S.C. 632). 
(b) CONTRACTING IMPROVEMENTS.— 
(1) 
CONTRACTING
OPPORTUNITIES.—Section 
31(b)(2)(B) of the Small Business Act (15 U.S.C. 
657a(b)(2)(B)) is amended by striking ‘‘shall’’ and 
inserting ‘‘may’’. 
(2) CONTRACTING
GOALS.—Section 15(g)(1) of 
the Small Business Act (15 U.S.C. 644(g)(1)) is 
amended in the fourth sentence by inserting ‘‘and 
subcontract’’ after ‘‘not less than 3 percent of the total 
value of all prime contract’’. 
(3) MENTOR-PROTEGE PROGRAMS.—The Admin-
istrator may establish mentor-protege programs for 
small business concerns owned and controlled by serv-
ice-disabled veterans, small business concerns owned 
and controlled by women, and HUBZone small busi-
ness concerns modeled on the mentor-protege program
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of the Administration for small business concerns 
participating in programs under section 8(a) of the 
Small Business Act (15 U.S.C. 637(a)). 
(c) SMALL BUSINESS CONTRACTING PROGRAMS PAR-
ITY.—Section 31(b)(2) of the Small Business Act (15 U.S.C. 
657a(b)(2)) is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘Notwithstanding any other provision of 
law—’’; 
(2) in subparagraph (A)— 
(A) in the matter preceding clause (i), by 
striking ‘‘a contracting’’ and inserting ‘‘SOLE 
SOURCE CONTRACTS.—A contracting’’; and 
(B) in clause (iii), by striking the semicolon 
at the end and inserting a period; 
(3) in subparagraph (B)— 
(A) by striking ‘‘a contract opportunity 
shall’’ and inserting ‘‘RESTRICTED
COMPETI-
TION.—A contract opportunity may’’; and 
(B) by striking ‘‘; and’’ and inserting a pe-
riod; and 
(4) in subparagraph (C), by striking ‘‘not later’’ 
and inserting ‘‘APPEALS.—Not later’’.
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Subtitle D—Small Business Man-
agement and Counseling Assist-
ance 
SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSI-
NESS PROGRAMS. 
(a) MICROLOAN PROGRAM.—Section 7(m) of the Small 
Business Act (15 U.S.C. 636(m)) is amended— 
(1) in paragraph (3)(B)— 
(A) by striking ‘‘As a condition’’ and in-
serting the following: 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii), as a condition’’; 
(B) by striking ‘‘the Administration’’ and 
inserting ‘‘the Administrator’’; and 
(C) by adding at the end the following: 
‘‘(ii) 
WAIVER
OF
NON-FEDERAL 
SHARE.— 
‘‘(I) IN GENERAL.—Upon request 
by an intermediary, and in accordance 
with this clause, the Administrator 
may waive, in whole or in part, the re-
quirement to obtain non-Federal funds 
under clause (i) for a fiscal year. The 
Administrator may waive the require-
ment to obtain non-Federal funds
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under this clause for successive fiscal 
years. 
‘‘(II) CONSIDERATIONS.—In de-
termining whether to waive the re-
quirement to obtain non-Federal funds 
under this clause, the Administrator 
shall consider— 
‘‘(aa) the economic condi-
tions affecting the intermediary; 
‘‘(bb) the impact a waiver 
under this clause would have on 
the credibility of the microloan 
program under this subsection; 
‘‘(cc) the demonstrated abil-
ity of the intermediary to raise 
non-Federal funds; and 
‘‘(dd) the performance of the 
intermediary. 
‘‘(III) LIMITATIONS.— 
‘‘(aa) IN GENERAL.—The Ad-
ministrator may not waive the re-
quirement to obtain non-Federal 
funds under this clause if grant-
ing the waiver would undermine
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the credibility of the microloan 
program under this subsection. 
‘‘(bb) SUNSET.—The Admin-
istrator may not waive the re-
quirement to obtain non-Federal 
funds under this clause for fiscal 
year 2013 or any fiscal year 
thereafter.’’; and 
(2) in paragraph (4)(B)— 
(A) by striking ‘‘As a condition’’ and all 
that follows through ‘‘the Administration shall 
require’’ and inserting the following: 
‘‘(i) IN
GENERAL.—Subject to clause 
(ii), as a condition of a grant made under 
subparagraph (A), the Administrator shall 
require’’; and 
(B) by adding at the end the following: 
‘‘(ii) 
WAIVER
OF
NON-FEDERAL 
SHARE.— 
‘‘(I) IN GENERAL.—Upon request 
by an intermediary, and in accordance 
with this clause, the Administrator 
may waive, in whole or in part, the re-
quirement to obtain non-Federal funds 
under clause (i) for a fiscal year. The
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Administrator may waive the require-
ment to obtain non-Federal funds 
under this clause for successive fiscal 
years. 
‘‘(II) CONSIDERATIONS.—In de-
termining whether to waive the re-
quirement to obtain non-Federal funds 
under this clause, the Administrator 
shall consider— 
‘‘(aa) the economic condi-
tions affecting the intermediary; 
‘‘(bb) the impact a waiver 
under this clause would have on 
the credibility of the microloan 
program under this subsection; 
‘‘(cc) the demonstrated abil-
ity of the intermediary to raise 
non-Federal funds; and 
‘‘(dd) the performance of the 
intermediary. 
‘‘(III) LIMITATIONS.— 
‘‘(aa) IN GENERAL.—The Ad-
ministrator may not waive the re-
quirement to obtain non-Federal 
funds under this clause if grant-
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ing the waiver would undermine 
the credibility of the microloan 
program under this subsection. 
‘‘(bb) SUNSET.—The Admin-
istrator may not waive the re-
quirement to obtain non-Federal 
funds under this clause for fiscal 
year 2013 or any fiscal year 
thereafter.’’. 
(b) WOMEN’S BUSINESS CENTER PROGRAM.—Section 
29(c) of the Small Business Act (15 U.S.C. 656(c)) is 
amended— 
(1) in paragraph (1), by striking ‘‘As a condi-
tion’’ and inserting ‘‘Subject to paragraph (5), as a 
condition’’; and 
(2) by adding at the end the following: 
‘‘(5) WAIVER OF NON-FEDERAL SHARE RELATING 
TO TECHNICAL ASSISTANCE AND COUNSELING.— 
‘‘(A) IN GENERAL.—Upon request by a re-
cipient organization, and in accordance with 
this paragraph, the Administrator may waive, 
in whole or in part, the requirement to obtain 
non-Federal funds under this subsection for the 
technical assistance and counseling activities of 
the recipient organization carried out using fi-
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nancial assistance under this section for a fiscal 
year. The Administrator may waive the require-
ment to obtain non-Federal funds under this 
paragraph for successive fiscal years. 
‘‘(B) 
CONSIDERATIONS.—In 
determining 
whether to waive the requirement to obtain non- 
Federal funds under this paragraph, the Admin-
istrator shall consider— 
‘‘(i) the economic conditions affecting 
the recipient organization; 
‘‘(ii) the impact a waiver under this 
clause would have on the credibility of the 
women’s business center program under this 
section; 
‘‘(iii) the demonstrated ability of the 
recipient organization to raise non-Federal 
funds; and 
‘‘(iv) the performance of the recipient 
organization. 
‘‘(C) LIMITATIONS.— 
‘‘(i) IN GENERAL.—The Administrator 
may not waive the requirement to obtain 
non-Federal funds under this paragraph if 
granting the waiver would undermine the
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credibility of the women’s business center 
program under this section. 
‘‘(ii) 
SUNSET.—The 
Administrator 
may not waive the requirement to obtain 
non-Federal funds under this paragraph for 
fiscal year 2013 or any fiscal year there-
after.’’. 
(c) PROSPECTIVE
REPEALS.—Effective October 1, 
2012, the Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) in section 7(m) (15 U.S.C. 636(m))— 
(A) in paragraph (3)(B)— 
(i) by striking ‘‘INTERMEDIARY CON-
TRIBUTION.—’’ and all that follows through 
‘‘Subject to clause (ii), as’’ and inserting 
‘‘INTERMEDIARY CONTRIBUTION.—As’’; and 
(ii) by striking clause (ii); and 
(B) in paragraph (4)(B)— 
(i) by striking ‘‘CONTRIBUTION.—’’ 
and all that follows through ‘‘Subject to 
clause (ii), as’’ and inserting ‘‘CONTRIBU-
TION.—As’’; and 
(ii) by striking clause (ii); and 
(2) in section 29(c) (15 U.S.C. 656(c))—
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(A) in paragraph (1), by striking ‘‘Subject 
to paragraph (5), as’’ and inserting ‘‘As’’; and 
(B) by striking paragraph (5). 
SEC. 1402. GRANTS FOR SBDCS. 
(a) IN GENERAL.—The Administrator may make 
grants to small business development centers under section 
21 of the Small Business Act (15 U.S.C. 648) to provide 
targeted technical assistance to small business concerns 
seeking access to capital or credit, Federal procurement op-
portunities, energy efficiency audits to reduce energy bills, 
opportunities to export products or provide services to for-
eign customers, adopting, making innovations in, and 
using broadband technologies, or other assistance. 
(b) ALLOCATION.— 
(1) IN GENERAL.—Subject to paragraph (2), and 
notwithstanding 
the 
requirements 
of 
section 
21(a)(4)(C)(iii) of the Small Business Act (15 U.S.C. 
648(a)(4)(C)(iii)), the amount appropriated to carry 
out this section shall be allocated under the formula 
under section 21(a)(4)(C)(i) of that Act. 
(2) MINIMUM
FUNDING.—The amount made 
available under this section to each State shall be not 
less than $325,000.
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(3) TYPES OF USES.—Of the total amount of the 
grants awarded by the Administrator under this sec-
tion— 
(A) not less than 80 percent shall be used 
for counseling of small business concerns; and 
(B) not more than 20 percent may be used 
for classes or seminars. 
(c) NO NON-FEDERAL SHARE REQUIRED.—Notwith-
standing section 21(a)(4)(A) of the Small Business Act (15 
U.S.C. 648(a)(4)(A)), the recipient of a grant made under 
this section shall not be required to provide non-Federal 
matching funds. 
(d) DISTRIBUTION.—Not later than 30 days after the 
date on which amounts are appropriated to carry out this 
section, the Administrator shall disburse the total amount 
appropriated. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Administrator 
$50,000,000 to carry out this section.
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Subtitle E—Disaster Loan 
Improvement 
SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSIST-
ANCE. 
Section 3 of the Small Business Act (15 U.S.C. 632), 
as amended by section 1343, is amended by adding at the 
end the following: 
‘‘(z) AQUACULTURE
BUSINESS
DISASTER
ASSIST-
ANCE.—Subject to section 18(a) and notwithstanding sec-
tion 18(b)(1), the Administrator may provide disaster as-
sistance under section 7(b)(2) to aquaculture enterprises 
that are small businesses.’’. 
Subtitle F—Small Business 
Regulatory Relief 
SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DE-
TAILED ANALYSES. 
Section 604(a) of title 5, United States Code, is 
amended— 
(1) in paragraph (1), by striking ‘‘succinct’’; 
(2) in paragraph (2), by striking ‘‘summary’’ 
each place it appears and inserting ‘‘statement’’; 
(3) by redesignating paragraphs (3), (4), and (5) 
as paragraphs (4), (5), and (6), respectively; and 
(4) by inserting after paragraph (2) the fol-
lowing:
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‘‘(3) the response of the agency to any comments 
filed by the Chief Counsel for Advocacy of the Small 
Business Administration in response to the proposed 
rule, and a detailed statement of any change made to 
the proposed rule in the final rule as a result of the 
comments;’’. 
SEC. 1602. OFFICE OF ADVOCACY. 
(a) IN GENERAL.—Section 203 of Public Law 94–305 
(15 U.S.C. 634c) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) carry out the responsibilities of the Office of 
Advocacy under chapter 6 of title 5, United States 
Code.’’. 
(b) BUDGETARY LINE ITEM AND AUTHORIZATION OF 
APPROPRIATIONS.—Title II of Public Law 94–305 (15 
U.S.C. 634a et seq.) is amended by striking section 207 and 
inserting the following: 
‘‘SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF 
APPROPRIATIONS. 
‘‘(a) APPROPRIATION REQUESTS.—Each budget of the 
United States Government submitted by the President
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under section 1105 of title 31, United States Code, shall 
include a separate statement of the amount of appropria-
tions requested for the Office of Advocacy of the Small Busi-
ness Administration, which shall be designated in a sepa-
rate account in the General Fund of the Treasury. 
‘‘(b) ADMINISTRATIVE OPERATIONS.—The Adminis-
trator of the Small Business Administration shall provide 
the Office of Advocacy with appropriate and adequate office 
space at central and field office locations, together with such 
equipment, operating budget, and communications facilities 
and services as may be necessary, and shall provide nec-
essary maintenance services for such offices and the equip-
ment and facilities located in such offices. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated such sums as are necessary 
to carry out this title. Any amount appropriated under this 
subsection shall remain available, without fiscal year limi-
tation, until expended.’’. 
Subtitle G—Appropriations 
Provisions 
SEC. 1701. SALARIES AND EXPENSES. 
(a) APPROPRIATION.—There is appropriated, out of 
any money in the Treasury not otherwise appropriated, for 
the fiscal year ending September 30, 2010, $150,000,000, 
to remain available until September 30, 2012, for an addi-
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† HR 5297 EAS 
tional amount for the appropriations account appropriated 
under the heading ‘‘SALARIES AND EXPENSES’’ under the 
heading ‘‘SMALL BUSINESS ADMINISTRATION’’, of which— 
(1) $50,000,000 is for grants to small business 
development centers authorized under section 1402; 
(2) $1,000,000 is for the costs of administering 
grants authorized under section 1402; 
(3) $30,000,000 is for grants to States for fiscal 
year 2011 to carry out export programs that assist 
small business concerns authorized under section 
1207; 
(4) $30,000,000 is for grants to States for fiscal 
year 2012 to carry out export programs that assist 
small business concerns authorized under section 
1207; 
(5) $2,500,000 is for the costs of administering 
grants authorized under section 1207; 
(6) $5,000,000 is for grants for fiscal year 2011 
under the Small Business Teaming Pilot Program 
under section 1314; and 
(7) $5,000,000 is for grants for fiscal year 2012 
under the Small Business Teaming Pilot Program 
under section 1314. 
(b) REPORT.—Not later than 60 days after the date 
of enactment of this Act, the Administrator shall submit
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to the Committee on Appropriations of the Senate and the 
Committee on Appropriations of the House of Representa-
tives a detailed expenditure plan for using the funds pro-
vided under subsection (a). 
SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT. 
(a) IN GENERAL.—There is appropriated, out of any 
money in the Treasury not otherwise appropriated, for the 
fiscal year ending September 30, 2010, for an additional 
amount for the appropriations account appropriated under 
the heading ‘‘BUSINESS LOANS PROGRAM ACCOUNT’’ under 
the heading ‘‘SMALL BUSINESS ADMINISTRATION’’— 
(1) $8,000,000, to remain available until Sep-
tember 30, 2012, for fiscal year 2011 for the cost of 
direct loans authorized under section 7(l) of the Small 
Business Act, as added by section 1131 of this title, 
including the cost of modifying the loans; 
(2) $8,000,000, to remain available until Sep-
tember 30, 2012, for fiscal year 2012 for the cost of 
direct loans authorized under section 7(l) of the Small 
Business Act, as added by section 1131 of this title, 
including the cost of modifying the loans; 
(3) $6,500,000, to remain available until Sep-
tember 30, 2012, for administrative expenses to carry 
out the direct loan program authorized under section 
7(l) of the Small Business Act, as added by section
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1131 of this title, which may be transferred to and 
merged with the appropriations account appropriated 
under the heading ‘‘SALARIES AND EXPENSES’’ under 
the heading ‘‘SMALL BUSINESS ADMINISTRATION’’; 
and 
(4) $15,000,000, to remain available until Sep-
tember 30, 2011, for the cost of guaranteed loans as 
authorized under section 7(a) of the Small Business 
Act, including the cost of modifying the loans. 
(b) DEFINITION.—In this section, the term ‘‘cost’’ has 
the meaning given that term in section 502 of the Congres-
sional Budget Act of 1974. 
SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTI-
TUTIONS FUND PROGRAM ACCOUNT. 
There is appropriated, out of any money in the Treas-
ury not otherwise appropriated, for the fiscal year ending 
September 30, 2010, for an additional amount for the ap-
propriations account appropriated under the heading 
‘‘COMMUNITY
DEVELOPMENT
FINANCIAL
INSTITUTIONS 
FUND PROGRAM ACCOUNT’’ under the heading ‘‘DEPART-
MENT OF THE TREASURY’’, $13,500,000, to remain 
available until September 30, 2012, for the costs of admin-
istering guarantees for bonds and notes as authorized under 
section 114A of the Riegle Community Development and
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Regulatory Improvement Act of 1994, as added by section 
1134 of this Act. 
SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCE-
MENT EXTENSIONS. 
(a) EXTENSION OF PROGRAMS.— 
(1) IN GENERAL.—There is appropriated, out of 
any funds in the Treasury not otherwise appro-
priated, for an additional amount for ‘‘Small Busi-
ness Administration—Business Loans Program Ac-
count’’, $505,000,000, to remain available through 
December 31, 2010, for the cost of— 
(A) fee reductions and eliminations under 
section 501 of division A of the American Recov-
ery and Reinvestment Act of 2009 (Public Law 
111–5; 123 Stat. 151), as amended by this Act; 
and 
(B) loan guarantees under section 502 of di-
vision A of the American Recovery and Reinvest-
ment Act of 2009 (Public Law 111–5; 123 Stat. 
152), as amended by this Act. 
(2) COST.—For purposes of this subsection, the 
term ‘‘cost’’ has the same meaning as in section 502 
of the Congressional Budget Act of 1974 (2 U.S.C. 
661a).
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(b) ADMINISTRATIVE EXPENSES.—There is appro-
priated for an additional amount, out of any funds in the 
Treasury not otherwise appropriated, for administrative ex-
penses to carry out sections 501 and 502 of division A of 
the American Recovery and Reinvestment Act of 2009 (Pub-
lic Law 111–5), $5,000,000, to remain available until ex-
pended, which may be transferred and merged with the ap-
propriation for ‘‘Small Business Administration—Salaries 
and Expenses’’. 
TITLE II—TAX PROVISIONS 
SEC. 2001. SHORT TITLE. 
This title may be cited as the ‘‘Creating Small Busi-
ness Jobs Act of 2010’’. 
Subtitle A—Small Business Relief 
PART I—PROVIDING ACCESS TO CAPITAL 
SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF 
GAIN ON CERTAIN SMALL BUSINESS STOCK. 
(a) 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) 100 PERCENT EXCLUSION FOR STOCK AC-
QUIRED DURING CERTAIN PERIODS IN 2010.—In the 
case of qualified small business stock acquired after 
the date of the enactment of the Creating Small Busi-
ness Jobs Act of 2010 and before January 1, 2011—
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‘‘(A) paragraph (1) shall be applied by sub-
stituting ‘100 percent’ for ‘50 percent’, 
‘‘(B) paragraph (2) shall not apply, and 
‘‘(C) paragraph (7) of section 57(a) shall 
not apply.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (3) of sec-
tion 1202(a) of the Internal Revenue Code of 1986 is 
amended— 
(1) by inserting ‘‘CERTAIN PERIODS IN’’ before 
‘‘2010’’ in the heading, and 
(2) by striking ‘‘before January 1, 2011’’ and in-
serting ‘‘on or before the date of the enactment of the 
Creating Small Business Jobs Act of 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to stock acquired after the date of the 
enactment of this Act. 
SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE 
SMALL BUSINESSES FOR 2010 CARRIED BACK 
5 YEARS. 
(a) IN GENERAL.—Section 39(a) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(4) 5-YEAR CARRYBACK FOR ELIGIBLE SMALL 
BUSINESS CREDITS.—
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‘‘(A) IN
GENERAL.—Notwithstanding sub-
section (d), in the case of eligible small business 
credits determined in the first taxable year of the 
taxpayer beginning in 2010— 
‘‘(i) paragraph (1) shall be applied by 
substituting ‘each of the 5 taxable years’ for 
‘the taxable year’ in subparagraph (A) 
thereof, and 
‘‘(ii) paragraph (2) shall be applied— 
‘‘(I) by substituting ‘25 taxable 
years’ for ‘21 taxable years’ in sub-
paragraph (A) thereof, and 
‘‘(II) by substituting ‘24 taxable 
years’ for ‘20 taxable years’ in sub-
paragraph (B) thereof. 
‘‘(B) ELIGIBLE
SMALL
BUSINESS
CRED-
ITS.—For purposes of this subsection, the term 
‘eligible small business credits’ has the meaning 
given such term by section 38(c)(5)(B).’’. 
(b) CONFORMING AMENDMENT.—Section 39(a)(3)(A) 
of the Internal Revenue Code of 1986 is amended by insert-
ing ‘‘or the eligible small business credits’’ after ‘‘credit)’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to credits determined in taxable years 
beginning after December 31, 2009.
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SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE 
SMALL BUSINESSES IN 2010 NOT SUBJECT TO 
ALTERNATIVE MINIMUM TAX. 
(a) IN GENERAL.—Section 38(c) of the Internal Rev-
enue Code of 1986 is amended by redesignating paragraph 
(5) as paragraph (6) and by inserting after paragraph (4) 
the following new paragraph: 
‘‘(5) SPECIAL RULES FOR ELIGIBLE SMALL BUSI-
NESS CREDITS IN 2010.— 
‘‘(A) IN GENERAL.—In the case of eligible 
small business credits determined in taxable 
years beginning in 2010— 
‘‘(i) this section and section 39 shall be 
applied separately with respect to such 
credits, and 
‘‘(ii) in applying paragraph (1) to 
such credits— 
‘‘(I) the tentative minimum tax 
shall be treated as being zero, and 
‘‘(II) the limitation under para-
graph (1) (as modified by subclause 
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the tax-
able year (other than the eligible small 
business credits).
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‘‘(B) ELIGIBLE
SMALL
BUSINESS
CRED-
ITS.—For purposes of this subsection, the term 
‘eligible small business credits’ means the sum of 
the credits listed in subsection (b) which are de-
termined for the taxable year with respect to an 
eligible small business. Such credits shall not be 
taken into account under paragraph (2), (3), or 
(4). 
‘‘(C) ELIGIBLE SMALL BUSINESS.—For pur-
poses of this subsection, the term ‘eligible small 
business’ means, with respect to any taxable 
year— 
‘‘(i) a corporation the stock of which is 
not publicly traded, 
‘‘(ii) a partnership, or 
‘‘(iii) a sole proprietorship, 
if the average annual gross receipts of such cor-
poration, partnership, or sole proprietorship for 
the 3-taxable-year period preceding such taxable 
year does not exceed $50,000,000. For purposes 
of applying the test under the preceding sentence, 
rules similar to the rules of paragraphs (2) and 
(3) of section 448(c) shall apply. 
‘‘(D) TREATMENT OF PARTNERS AND S COR-
PORATION SHAREHOLDERS.—Credits determined
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with respect to a partnership or S corporation 
shall not be treated as eligible small business 
credits by any partner or shareholder unless such 
partner or shareholder meets the gross receipts 
test under subparagraph (C) for the taxable year 
in which such credits are treated as current year 
business credits.’’. 
(b) TECHNICAL AMENDMENT.—Section 55(e)(5) of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘38(c)(3)(B)’’ and inserting ‘‘38(c)(6)(B)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Subclause (II) of section 38(c)(2)(A)(ii) of 
the Internal Revenue Code of 1986 is amended by in-
serting ‘‘the eligible small business credits,’’ after ‘‘the 
New York Liberty Zone business employee credit,’’. 
(2) Subclause (II) of section 38(c)(3)(A)(ii) of 
such Code is amended by inserting ‘‘, the eligible 
small business credits,’’ after ‘‘the New York Liberty 
Zone business employee credit’’. 
(3) Subclause (II) of section 38(c)(4)(A)(ii) of 
such Code is amended by inserting ‘‘the eligible small 
business credits and’’ before ‘‘the specified credits’’. 
(d) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to credits determined in taxable
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years beginning after December 31, 2009, and to carrybacks 
of such credits. 
SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PE-
RIOD FOR BUILT-IN GAINS TAX. 
(a) IN
GENERAL.—Subparagraph (B) of section 
1374(d)(7) of the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(B) SPECIAL RULES FOR 2009, 2010, AND 
2011.—No tax shall be imposed on the net recog-
nized built-in gain of an S corporation— 
‘‘(i) in the case of any taxable year be-
ginning in 2009 or 2010, if the 7th taxable 
year in the recognition period preceded such 
taxable year, or 
‘‘(ii) in the case of any taxable year 
beginning in 2011, if the 5th year in the 
recognition period preceded such taxable 
year. 
The preceding sentence shall be applied sepa-
rately with respect to any asset to which para-
graph (8) applies.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2010.
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PART II—ENCOURAGING INVESTMENT 
SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 
AND 2011; CERTAIN REAL PROPERTY TREAT-
ED AS SECTION 179 PROPERTY. 
(a) INCREASED LIMITATIONS.—Subsection (b) of sec-
tion 179 of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘shall not exceed’’ and all that 
follows in paragraph (1) and inserting ‘‘shall not ex-
ceed— 
‘‘(A) $250,000 in the case of taxable years 
beginning after 2007 and before 2010, 
‘‘(B) $500,000 in the case of taxable years 
beginning in 2010 or 2011, and 
‘‘(C) $25,000 in the case of taxable years be-
ginning after 2011.’’, and 
(2) by striking ‘‘exceeds’’ and all that follows in 
paragraph (2) and inserting ‘‘exceeds— 
‘‘(A) $800,000 in the case of taxable years 
beginning after 2007 and before 2010, 
‘‘(B) $2,000,000 in the case of taxable years 
beginning in 2010 or 2011, and 
‘‘(C) $200,000 in the case of taxable years 
beginning after 2011.’’. 
(b) INCLUSION OF CERTAIN REAL PROPERTY.—Sec-
tion 179 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new subsection:
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‘‘(f) SPECIAL RULES FOR QUALIFIED REAL PROP-
ERTY.— 
‘‘(1) IN GENERAL.—If a taxpayer elects the ap-
plication of this subsection for any taxable year be-
ginning in 2010 or 2011, the term ‘section 179 prop-
erty’ shall include any qualified real property which 
is— 
‘‘(A) of a character subject to an allowance 
for depreciation, 
‘‘(B) acquired by purchase for use in the ac-
tive conduct of a trade or business, and 
‘‘(C) not described in the last sentence of 
subsection (d)(1). 
‘‘(2) QUALIFIED REAL PROPERTY.—For purposes 
of this subsection, the term ‘qualified real property’ 
means— 
‘‘(A) qualified leasehold improvement prop-
erty described in section 168(e)(6), 
‘‘(B) qualified restaurant property described 
in section 168(e)(7) (without regard to the dates 
specified in subparagraph (A)(i) thereof), and 
‘‘(C) qualified retail improvement property 
described in section 168(e)(8) (without regard to 
subparagraph (E) thereof).
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‘‘(3) LIMITATION.—For purposes of applying the 
limitation under subsection (b)(1)(B), not more than 
$250,000 of the aggregate cost which is taken into ac-
count under subsection (a) for any taxable year may 
be attributable to qualified real property. 
‘‘(4) CARRYOVER LIMITATION.— 
‘‘(A) IN
GENERAL.—Notwithstanding sub-
section (b)(3)(B), no amount attributable to 
qualified real property may be carried over to a 
taxable year beginning after 2011. 
‘‘(B) 
TREATMENT
OF
DISALLOWED 
AMOUNTS.—Except as provided in subparagraph 
(C), to the extent that any amount is not allowed 
to be carried over to a taxable year beginning 
after 2011 by reason of subparagraph (A), this 
title shall be applied as if no election under this 
section had been made with respect to such 
amount. 
‘‘(C) AMOUNTS CARRIED OVER FROM 2010.— 
If subparagraph (B) applies to any amount (or 
portion of an amount) which is carried over 
from a taxable year other than the taxpayer’s 
last taxable year beginning in 2011, such 
amount (or portion of an amount) shall be treat-
ed for purposes of this title as attributable to
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property placed in service on the first day of the 
taxpayer’s last taxable year beginning in 2011. 
‘‘(D) ALLOCATION OF AMOUNTS.—For pur-
poses of applying this paragraph and subsection 
(b)(3)(B) to any taxable year, the amount which 
is disallowed under subsection (b)(3)(A) for such 
taxable year which is attributed to qualified real 
property shall be the amount which bears the 
same ratio to the total amount so disallowed 
as— 
‘‘(i) the aggregate amount attributable 
to qualified real property placed in service 
during such taxable year, increased by the 
portion of any amount carried over to such 
taxable year from a prior taxable year 
which is attributable to such property, bears 
to 
‘‘(ii) the total amount of section 179 
property placed in service during such tax-
able year, increased by the aggregate 
amount carried over to such taxable year 
from any prior taxable year. 
For purposes of the preceding sentence, only sec-
tion 179 property with respect to which an elec-
tion was made under subsection (c)(1) (deter-
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† HR 5297 EAS 
mined without regard to subparagraph (B) of 
this paragraph) shall be taken into account.’’. 
(c) REVOCABILITY OF ELECTION.—Paragraph (2) of 
section 179(c) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘2011’’ and inserting ‘‘2012’’. 
(d) COMPUTER SOFTWARE TREATED AS 179 PROP-
ERTY.—Clause (ii) of section 179(d)(1)(A) is amended by 
striking ‘‘2011’’ and inserting ‘‘2012’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section shall 
apply to property placed in service after December 
31, 2009, in taxable years beginning after such date. 
(2) EXTENSIONS.—The amendments made by 
subsections (c) and (d) shall apply to taxable years 
beginning after December 31, 2010. 
SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 
PERCENT OF THE BASIS OF CERTAIN QUALI-
FIED PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘January 1, 2011’’ in subpara-
graph (A)(iv) and inserting ‘‘January 1, 2012’’, and 
(2) by striking ‘‘January 1, 2010’’ each place it 
appears and inserting ‘‘January 1, 2011’’.
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(b) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (k) of section 168 
of the Internal Revenue Code of 1986 is amended by 
striking ‘‘JANUARY 1, 2010’’ and inserting ‘‘JANUARY 
1, 2011’’. 
(2) The heading for clause (ii) of section 
168(k)(2)(B) of such Code is amended by striking 
‘‘PRE-JANUARY 1, 2010’’ and inserting ‘‘PRE-JANUARY 
1, 2011’’. 
(3) Subparagraph (D) of section 168(k)(4) of 
such Code is amended by striking ‘‘and’’ at the end 
of clause (ii), by striking the period at the end of 
clause (iii) and inserting a comma, and by adding at 
the end the following new clauses: 
‘‘(iv) ‘January 1, 2011’ shall be sub-
stituted for ‘January 1, 2012’ in subpara-
graph (A)(iv) thereof, and 
‘‘(v) ‘January 1, 2010’ shall be sub-
stituted for ‘January 1, 2011’ each place it 
appears in subparagraph (A) thereof.’’. 
(4) Subparagraph (B) of section 168(l)(5) of 
such Code is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’.
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(5) Subparagraph (C) of section 168(n)(2) of 
such Code is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(6) Subparagraph (D) of section 1400L(b)(2) of 
such Code is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(7) Subparagraph (B) of section 1400N(d)(3) of 
such Code is amended by striking ‘‘January 1, 2010’’ 
and inserting ‘‘January 1, 2011’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to property placed in service after De-
cember 31, 2009, in taxable years ending after such date. 
SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT AC-
COUNTING. 
(a) IN GENERAL.—Section 460(c) of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(6) SPECIAL RULE FOR ALLOCATION OF BONUS 
DEPRECIATION
WITH
RESPECT
TO
CERTAIN
PROP-
ERTY.— 
‘‘(A) IN GENERAL.—Solely for purposes of 
determining the percentage of completion under 
subsection (b)(1)(A), the cost of qualified prop-
erty shall be taken into account as a cost allo-
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† HR 5297 EAS 
cated to the contract as if subsection (k) of sec-
tion 168 had not been enacted. 
‘‘(B) QUALIFIED PROPERTY.—For purposes 
of this paragraph, the term ‘qualified property’ 
means property described in section 168(k)(2) 
which— 
‘‘(i) has a recovery period of 7 years or 
less, and 
‘‘(ii) is placed in service after Decem-
ber 31, 2009, and before January 1, 2011 
(January 1, 2012, in the case of property 
described in section 168(k)(2)(B)).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to property placed in service after De-
cember 31, 2009. 
PART III—PROMOTING ENTREPRENEURSHIP 
SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION 
FOR START-UP EXPENDITURES IN 2010. 
(a) START-UP EXPENDITURES.—Subsection (b) of sec-
tion 195 of the Internal Revenue Code of 1986 is amended 
by adding at the end the following new paragraph: 
‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BEGIN-
NING IN 2010.—In the case of a taxable year beginning 
in 2010, paragraph (1)(A)(ii) shall be applied—
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† HR 5297 EAS 
‘‘(A) by substituting ‘$10,000’ for ‘$5,000’, 
and 
‘‘(B) 
by 
substituting 
‘$60,000’ 
for 
‘$50,000’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to amounts paid or incurred in taxable 
years beginning after December 31, 2009. 
SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE 
UNITED STATES TRADE REPRESENTATIVE TO 
DEVELOP MARKET ACCESS OPPORTUNITIES 
FOR UNITED STATES SMALL- AND MEDIUM- 
SIZED BUSINESSES AND TO ENFORCE TRADE 
AGREEMENTS. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Office of the United States Trade Representa-
tive $5,230,000, to remain available until expended, for— 
(1) analyzing and developing opportunities for 
businesses in the United States to access the markets 
of foreign countries; and 
(2) enforcing trade agreements to which the 
United States is a party. 
(b) REQUIREMENTS.—In obligating and expending the 
funds authorized to be appropriated under subsection (a), 
the United States Trade Representative shall—
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† HR 5297 EAS 
(1) give preference to those initiatives that the 
United States Trade Representative determines will 
create or sustain the greatest number of jobs in the 
United States or result in the greatest benefit to the 
economy of the United States; and 
(2) consider the needs of small- and medium- 
sized businesses in the United States with respect to— 
(A) accessing the markets of foreign coun-
tries; and 
(B) the enforcement of trade agreements to 
which the United States is a party. 
PART IV—PROMOTING SMALL BUSINESS 
FAIRNESS 
SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DIS-
CLOSE REPORTABLE TRANSACTIONS BASED 
ON RESULTING TAX BENEFITS. 
(a) IN GENERAL.—Subsection (b) of section 6707A of 
the Internal Revenue Code of 1986 is amended to read as 
follows: 
‘‘(b) AMOUNT OF PENALTY.— 
‘‘(1) IN GENERAL.—Except as otherwise provided 
in this subsection, the amount of the penalty under 
subsection (a) with respect to any reportable trans-
action shall be 75 percent of the decrease in tax shown 
on the return as a result of such transaction (or
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† HR 5297 EAS 
which would have resulted from such transaction if 
such transaction were respected for Federal tax pur-
poses). 
‘‘(2) MAXIMUM
PENALTY.—The amount of the 
penalty under subsection (a) with respect to any re-
portable transaction shall not exceed— 
‘‘(A) in the case of a listed transaction, 
$200,000 ($100,000 in the case of a natural per-
son), or 
‘‘(B) in the case of any other reportable 
transaction, $50,000 ($10,000 in the case of a 
natural person). 
‘‘(3) MINIMUM
PENALTY.—The amount of the 
penalty under subsection (a) with respect to any 
transaction shall not be less than $10,000 ($5,000 in 
the case of a natural person).’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to penalties assessed after December 31, 
2006. 
SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN 
COMPUTING SELF-EMPLOYMENT TAXES IN 
2010. 
(a) IN GENERAL.—Paragraph (4) of section 162(l) of 
the Internal Revenue Code of 1986 is amended by inserting
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† HR 5297 EAS 
‘‘for taxable years beginning before January 1, 2010, or 
after December 31, 2010’’ before the period. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMI-
LAR 
TELECOMMUNICATIONS 
EQUIPMENT 
FROM LISTED PROPERTY. 
(a) IN
GENERAL.—Subparagraph (A) of section 
280F(d)(4) of the Internal Revenue Code of 1986 (defining 
listed property) is amended by adding ‘‘ ‘and’ ’’ at the end 
of clause (iv), by striking clause (v), and by redesignating 
clause (vi) as clause (v). 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2009. 
Subtitle B—Revenue Provisions 
PART I—REDUCING THE TAX GAP 
SEC. 2101. INFORMATION REPORTING FOR RENTAL PROP-
ERTY EXPENSE PAYMENTS. 
(a) IN GENERAL.—Section 6041 of the Internal Rev-
enue Code of 1986, as amended by section 9006 of the Pa-
tient Protection and Affordable Care Act, is amended by 
redesignating subsections (h) and (i) as subsections (i) and
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† HR 5297 EAS 
(j), respectively, and by inserting after subsection (g) the 
following new subsection: 
‘‘(h) TREATMENT OF RENTAL PROPERTY EXPENSE 
PAYMENTS.— 
‘‘(1) IN GENERAL.—Solely for purposes of sub-
section (a) and except as provided in paragraph (2), 
a person receiving rental income from real estate shall 
be considered to be engaged in a trade or business of 
renting property. 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 
apply to— 
‘‘(A) any individual, including any indi-
vidual who is an active member of the uniformed 
services or an employee of the intelligence com-
munity (as defined in section 121(d)(9)(C)(iv)), 
if substantially all rental income is derived from 
renting the principal residence (within the 
meaning of section 121) of such individual on a 
temporary basis, 
‘‘(B) any individual who receives rental in-
come of not more than the minimal amount, as 
determined under regulations prescribed by the 
Secretary, and 
‘‘(C) any other individual for whom the re-
quirements of this section would cause hardship,
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† HR 5297 EAS 
as determined under regulations prescribed by 
the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall apply to payments made after December 
31, 2010. 
SEC. 2102. INCREASE IN INFORMATION RETURN PEN-
ALTIES. 
(a) FAILURE TO FILE CORRECT INFORMATION RE-
TURNS.— 
(1) IN GENERAL.—Subsections (a)(1), (b)(1)(A), 
and (b)(2)(A) of section 6721 of the Internal Revenue 
Code of 1986 are each amended by striking ‘‘$50’’ 
and inserting ‘‘$100’’. 
(2) AGGREGATE
ANNUAL
LIMITATION.—Sub-
sections (a)(1), (d)(1)(A), and (e)(3)(A) of section 
6721 of such Code are each amended by striking 
‘‘$250,000’’ and inserting ‘‘$1,500,000’’. 
(b) REDUCTION WHERE CORRECTION WITHIN 30 
DAYS.— 
(1) IN GENERAL.—Subparagraph (A) of section 
6721(b)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$15’’ and inserting ‘‘$30’’. 
(2) AGGREGATE
ANNUAL
LIMITATION.—Sub-
sections (b)(1)(B) and (d)(1)(B) of section 6721 of
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† HR 5297 EAS 
such Code are each amended by striking ‘‘$75,000’’ 
and inserting ‘‘$250,000’’. 
(c) REDUCTION WHERE CORRECTION ON OR BEFORE 
AUGUST 1.— 
(1) IN GENERAL.—Subparagraph (A) of section 
6721(b)(2) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$30’’ and inserting ‘‘$60’’. 
(2) AGGREGATE
ANNUAL
LIMITATION.—Sub-
sections (b)(2)(B) and (d)(1)(C) of section 6721 of 
such Code are each amended by striking ‘‘$150,000’’ 
and inserting ‘‘$500,000’’. 
(d) AGGREGATE ANNUAL LIMITATIONS FOR PERSONS 
WITH GROSS RECEIPTS OF NOT MORE THAN $5,000,000.— 
(1) IN
GENERAL.—Paragraph (1) of section 
6721(d) of the Internal Revenue Code of 1986 is 
amended— 
(A) by striking ‘‘$100,000’’ in subpara-
graph (A) and inserting ‘‘$500,000’’, 
(B) by striking ‘‘$25,000’’ in subparagraph 
(B) and inserting ‘‘$75,000’’, and 
(C) by striking ‘‘$50,000’’ in subparagraph 
(C) and inserting ‘‘$200,000’’. 
(2) TECHNICAL AMENDMENT.—Paragraph (1) of 
section 6721(d) of such Code is amended by striking
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† HR 5297 EAS 
‘‘such taxable year’’ and inserting ‘‘such calendar 
year’’. 
(e) PENALTY IN CASE OF INTENTIONAL DISREGARD.— 
Paragraph (2) of section 6721(e) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘$100’’ and inserting 
‘‘$250’’. 
(f) ADJUSTMENT FOR INFLATION.—Section 6721 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new subsection: 
‘‘(f) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—For each fifth calendar year 
beginning after 2012, each of the dollar amounts 
under subsections (a), (b), (d) (other than paragraph 
(2)(A) thereof), and (e) shall be increased by such dol-
lar amount multiplied by the cost-of-living adjust-
ment determined under section 1(f)(3) determined by 
substituting ‘calendar year 2011’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted under 
paragraph (1)— 
‘‘(A) is not less than $75,000 and is not a 
multiple of $500, such amount shall be rounded 
to the next lowest multiple of $500, and
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‘‘(B) is not described in subparagraph (A) 
and is not a multiple of $10, such amount shall 
be rounded to the next lowest multiple of $10.’’. 
(g) FAILURE TO FURNISH CORRECT PAYEE STATE-
MENTS.—Section 6722 of the Internal Revenue Code of 1986 
is amended to read as follows: 
‘‘SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATE-
MENTS. 
‘‘(a) IMPOSITION OF PENALTY.— 
‘‘(1) GENERAL RULE.—In the case of each failure 
described in paragraph (2) by any person with re-
spect to a payee statement, such person shall pay a 
penalty of $100 for each statement with respect to 
which such a failure occurs, but the total amount im-
posed on such person for all such failures during any 
calendar year shall not exceed $1,500,000. 
‘‘(2) FAILURES SUBJECT TO PENALTY.—For pur-
poses of paragraph (1), the failures described in this 
paragraph are— 
‘‘(A) any failure to furnish a payee state-
ment on or before the date prescribed therefor to 
the person to whom such statement is required to 
be furnished, and
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‘‘(B) any failure to include all of the infor-
mation required to be shown on a payee state-
ment or the inclusion of incorrect information. 
‘‘(b) REDUCTION WHERE CORRECTION IN SPECIFIED 
PERIOD.— 
‘‘(1) CORRECTION WITHIN 30 DAYS.—If any fail-
ure described in subsection (a)(2) is corrected on or 
before the day 30 days after the required filing date— 
‘‘(A) the penalty imposed by subsection (a) 
shall be $30 in lieu of $100, and 
‘‘(B) the total amount imposed on the per-
son for all such failures during any calendar 
year which are so corrected shall not exceed 
$250,000. 
‘‘(2) FAILURES CORRECTED ON OR BEFORE AU-
GUST 1.—If any failure described in subsection (a)(2) 
is corrected after the 30th day referred to in para-
graph (1) but on or before August 1 of the calendar 
year in which the required filing date occurs— 
‘‘(A) the penalty imposed by subsection (a) 
shall be $60 in lieu of $100, and 
‘‘(B) the total amount imposed on the per-
son for all such failures during the calendar year 
which are so corrected shall not exceed $500,000. 
‘‘(c) EXCEPTION FOR DE MINIMIS FAILURES.—
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‘‘(1) IN GENERAL.—If— 
‘‘(A) a payee statement is furnished to the 
person to whom such statement is required to be 
furnished, 
‘‘(B) there is a failure described in sub-
section (a)(2)(B) (determined after the applica-
tion of section 6724(a)) with respect to such 
statement, and 
‘‘(C) such failure is corrected on or before 
August 1 of the calendar year in which the re-
quired filing date occurs, 
for purposes of this section, such statement shall be 
treated as having been furnished with all of the cor-
rect required information. 
‘‘(2) LIMITATION.—The number of payee state-
ments to which paragraph (1) applies for any cal-
endar year shall not exceed the greater of— 
‘‘(A) 10, or 
‘‘(B) one-half of 1 percent of the total num-
ber of payee statements required to be filed by 
the person during the calendar year. 
‘‘(d) LOWER LIMITATIONS FOR PERSONS WITH GROSS 
RECEIPTS OF NOT MORE THAN $5,000,000.— 
‘‘(1) IN GENERAL.—If any person meets the gross 
receipts test of paragraph (2) with respect to any cal-
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endar year, with respect to failures during such cal-
endar year— 
‘‘(A) subsection (a)(1) shall be applied by 
substituting ‘$500,000’ for ‘$1,500,000’, 
‘‘(B) subsection (b)(1)(B) shall be applied 
by substituting ‘$75,000’ for ‘$250,000’, and 
‘‘(C) subsection (b)(2)(B) shall be applied 
by substituting ‘$200,000’ for ‘$500,000’. 
‘‘(2) GROSS RECEIPTS TEST.—A person meets 
the gross receipts test of this paragraph if such person 
meets the gross receipts test of section 6721(d)(2). 
‘‘(e) PENALTY
IN
CASE
OF
INTENTIONAL
DIS-
REGARD.—If 1 or more failures to which subsection (a) ap-
plies are due to intentional disregard of the requirement 
to furnish a payee statement (or the correct information 
reporting requirement), then, with respect to each such fail-
ure— 
‘‘(1) subsections (b), (c), and (d) shall not apply, 
‘‘(2) the penalty imposed under subsection (a)(1) 
shall be $250, or, if greater— 
‘‘(A) in the case of a payee statement other 
than a statement required under section 6045(b), 
6041A(e) (in respect of a return required under 
section 
6041A(b)), 
6050H(d), 
6050J(e), 
6050K(b), or 6050L(c), 10 percent of the aggre-
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† HR 5297 EAS 
gate amount of the items required to be reported 
correctly, or 
‘‘(B) in the case of a payee statement re-
quired under section 6045(b), 6050K(b), or 
6050L(c), 5 percent of the aggregate amount of 
the items required to be reported correctly, and 
‘‘(3) in the case of any penalty determined under 
paragraph (2)— 
‘‘(A) the $1,500,000 limitation under sub-
section (a) shall not apply, and 
‘‘(B) such penalty shall not be taken into 
account in applying such limitation to penalties 
not determined under paragraph (2). 
‘‘(f) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—For each fifth calendar year 
beginning after 2012, each of the dollar amounts 
under subsections (a), (b), (d)(1), and (e) shall be in-
creased by such dollar amount multiplied by the cost- 
of-living adjustment determined under section 1(f)(3) 
determined by substituting ‘calendar year 2011’ for 
‘calendar year 1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted under 
paragraph (1)—
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‘‘(A) is not less than $75,000 and is not a 
multiple of $500, such amount shall be rounded 
to the next lowest multiple of $500, and 
‘‘(B) is not described in subparagraph (A) 
and is not a multiple of $10, such amount shall 
be rounded to the next lowest multiple of $10.’’. 
(h) EFFECTIVE DATE.—The amendments made by this 
section shall apply with respect to information returns re-
quired to be filed on or after January 1, 2011. 
SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CER-
TAIN OTHER ENFORCEMENT ACTIONS. 
(a) IN GENERAL.—The Commissioner of Internal Rev-
enue, in consultation with the Secretary of the Treasury, 
shall submit to the Committee on Ways and Means of the 
House of Representatives and the Committee on Finance 
of the Senate an annual report on the penalties assessed 
by the Internal Revenue Service during the preceding year 
under each of the following provisions of the Internal Rev-
enue Code of 1986: 
(1) Section 6662A (relating to accuracy-related 
penalty on understatements with respect to reportable 
transactions). 
(2) Section 6700(a) (relating to promoting abu-
sive tax shelters).
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(3) Section 6707 (relating to failure to furnish 
information regarding reportable transactions). 
(4) Section 6707A (relating to failure to include 
reportable transaction information with return). 
(5) Section 6708 (relating to failure to maintain 
lists of advisees with respect to reportable trans-
actions). 
(b) ADDITIONAL INFORMATION.—The report required 
under subsection (a) shall also include information on the 
following with respect to each year: 
(1) Any action taken under section 330(b) of 
title 31, United States Code, with respect to any re-
portable transaction (as defined in section 6707A(c) 
of the Internal Revenue Code of 1986). 
(2) Any extension of the time for assessment of 
tax enforced, or assessment of any amount under such 
an extension, under paragraph (10) of section 6501(c) 
of the Internal Revenue Code of 1986. 
(c) DATE
OF REPORT.—The first report required 
under subsection (a) shall be submitted not later than De-
cember 31, 2010.
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SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LI-
ABILITIES OF CERTAIN FEDERAL CONTRAC-
TORS. 
(a) IN GENERAL.—Subsection (f) of section 6330 of the 
Internal Revenue Code of 1986 is amended by striking ‘‘or’’ 
at the end of paragraph (2), by inserting ‘‘or’’ at the end 
of paragraph (3), and by inserting after paragraph (3) the 
following new paragraph: 
‘‘(4) the Secretary has served a Federal con-
tractor levy,’’. 
(b) FEDERAL CONTRACTOR LEVY.—Subsection (h) of 
section 6330 of the Internal Revenue Code of 1986 is 
amended— 
(1) by striking all that precedes ‘‘any levy in 
connection with the collection’’ and inserting the fol-
lowing: 
‘‘(h) DEFINITIONS RELATED TO EXCEPTIONS.—For 
purposes of subsection (f)— 
‘‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY.—A 
disqualified employment tax levy is’’; and 
(2) by adding at the end the following new para-
graph: 
‘‘(2) FEDERAL CONTRACTOR LEVY.—A Federal 
contractor levy is any levy if the person whose prop-
erty is subject to the levy (or any predecessor thereof) 
is a Federal contractor.’’.
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(c) CONFORMING AMENDMENT.—The heading of sub-
section (f) of section 6330 of the Internal Revenue Code of 
1986 is amended by striking ‘‘JEOPARDY AND STATE RE-
FUND COLLECTION’’ and inserting ‘‘EXCEPTIONS’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to levies issued after the date of the en-
actment of this Act. 
PART II—PROMOTING RETIREMENT 
PREPARATION 
SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 
PLANS ALLOWED TO TREAT ELECTIVE DEFER-
RALS AS ROTH CONTRIBUTIONS. 
(a) IN GENERAL.—Section 402A(e)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘and’’ at the 
end of subparagraph (A), by striking the period at the end 
of subparagraph (B) and inserting ‘‘, and’’, and by adding 
at the end the following: 
‘‘(C) an eligible deferred compensation plan 
(as defined in section 457(b)) of an eligible em-
ployer described in section 457(e)(1)(A).’’. 
(b) ELECTIVE DEFERRALS.—Section 402A(e)(2) of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective 
deferral’ means—
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‘‘(A) any elective deferral described in sub-
paragraph (A) or (C) of section 402(g)(3), and 
‘‘(B) any elective deferral of compensation 
by an individual under an eligible deferred com-
pensation plan (as defined in section 457(b)) of 
an 
eligible 
employer 
described 
in 
section 
457(e)(1)(A).’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to taxable years beginning after Decem-
ber 31, 2010. 
SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS 
TO DESIGNATED ROTH ACCOUNTS. 
(a) IN GENERAL.—Section 402A(c) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new paragraph: 
‘‘(4) TAXABLE ROLLOVERS TO DESIGNATED ROTH 
ACCOUNTS.— 
‘‘(A) IN
GENERAL.—Notwithstanding sec-
tions 402(c), 403(b)(8), and 457(e)(16), in the 
case of any distribution to which this paragraph 
applies— 
‘‘(i) there shall be included in gross in-
come any amount which would be includible 
were it not part of a qualified rollover con-
tribution,
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† HR 5297 EAS 
‘‘(ii) section 72(t) shall not apply, and 
‘‘(iii) unless the taxpayer elects not to 
have this clause apply, any amount re-
quired to be included in gross income for 
any taxable year beginning in 2010 by rea-
son of this paragraph shall be so included 
ratably over the 2-taxable-year period be-
ginning with the first taxable year begin-
ning in 2011. 
Any election under clause (iii) for any distribu-
tions during a taxable year may not be changed 
after the due date for such taxable year. 
‘‘(B) DISTRIBUTIONS
TO
WHICH
PARA-
GRAPH APPLIES.—In the case of an applicable 
retirement plan which includes a qualified Roth 
contribution program, this paragraph shall 
apply to a distribution from such plan other 
than from a designated Roth account which is 
contributed in a qualified rollover contribution 
(within the meaning of section 408A(e)) to the 
designated Roth account maintained under such 
plan for the benefit of the individual to whom 
the distribution is made. 
‘‘(C) COORDINATION WITH LIMIT.—Any dis-
tribution to which this paragraph applies shall
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not be taken into account for purposes of para-
graph (1). 
‘‘(D) OTHER RULES.—The rules of subpara-
graphs (D), (E), and (F) of section 408A(d)(3) 
(as in effect for taxable years beginning after 
2009) shall apply for purposes of this para-
graph.’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to distributions after the date of the en-
actment of this Act. 
SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED 
FROM ONLY A PORTION OF A CONTRACT. 
(a) IN GENERAL.—Subsection (a) of section 72 of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(a) GENERAL RULES FOR ANNUITIES.— 
‘‘(1) INCOME INCLUSION.—Except as otherwise 
provided in this chapter, gross income includes any 
amount received as an annuity (whether for a period 
certain or during one or more lives) under an annu-
ity, endowment, or life insurance contract. 
‘‘(2) PARTIAL ANNUITIZATION.—If any amount 
is received as an annuity for a period of 10 years or 
more or during one or more lives under any portion
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of an annuity, endowment, or life insurance con-
tract— 
‘‘(A) such portion shall be treated as a sepa-
rate contract for purposes of this section, 
‘‘(B) for purposes of applying subsections 
(b), (c), and (e), the investment in the contract 
shall be allocated pro rata between each portion 
of the contract from which amounts are received 
as an annuity and the portion of the contract 
from which amounts are not received as an an-
nuity, and 
‘‘(C) a separate annuity starting date under 
subsection (c)(4) shall be determined with respect 
to each portion of the contract from which 
amounts are received as an annuity.’’. 
(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to amounts received in taxable years be-
ginning after December 31, 2010. 
PART III—CLOSING UNINTENDED LOOPHOLES 
SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC 
BIOFUEL PRODUCER CREDIT. 
(a) IN GENERAL.—Clause (iii) of section 40(b)(6)(E) 
of the Internal Revenue Code of 1986, as added by the 
Health Care and Education Reconciliation Act of 2010, is 
amended—
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† HR 5297 EAS 
(1) by striking ‘‘or’’ at the end of subclause (I), 
(2) by striking the period at the end of subclause 
(II) and inserting ‘‘, or’’, 
(3) by adding at the end the following new sub-
clause: 
‘‘(III) such fuel has an acid num-
ber greater than 25.’’, and 
(4) by striking ‘‘UNPROCESSED’’ in the heading 
and inserting ‘‘CERTAIN’’. 
(b) EFFECTIVE DATE.—The amendments made by this 
section shall apply to fuels sold or used on or after January 
1, 2010. 
SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES. 
(a) AMOUNTS
SOURCED
WITHIN
THE
UNITED 
STATES.—Subsection (a) of section 861 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new paragraph: 
‘‘(9) GUARANTEES.—Amounts received, directly 
or indirectly, from— 
‘‘(A) a noncorporate resident or domestic 
corporation for the provision of a guarantee of 
any indebtedness of such resident or corporation, 
or 
‘‘(B) any foreign person for the provision of 
a guarantee of any indebtedness of such person,
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† HR 5297 EAS 
if such amount is connected with income which 
is effectively connected (or treated as effectively 
connected) with the conduct of a trade or busi-
ness in the United States.’’. 
(b) AMOUNTS
SOURCED
WITHOUT
THE
UNITED 
STATES.—Subsection (a) of section 862 of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘and’’ at the 
end of paragraph (7), by striking the period at the end of 
paragraph (8) and inserting ‘‘; and’’, and by adding at 
the end the following new paragraph: 
‘‘(9) amounts received, directly or indirectly, 
from a foreign person for the provision of a guarantee 
of indebtedness of such person other than amounts 
which are derived from sources within the United 
States as provided in section 861(a)(9).’’. 
(c) CONFORMING AMENDMENT.—Clause (ii) of section 
864(c)(4)(B) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘dividends or interest’’ and inserting 
‘‘dividends, interest, or amounts received for the provision 
of guarantees of indebtedness’’. 
(d) EFFECTIVE DATE.—The amendments made by this 
section shall apply to guarantees issued after the date of 
the enactment of this Act.
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ence and financial and managerial capacity to par-
ticipate in the approved State capital access program. 
The determination by the State shall not be review-
able by the Secretary. 
(2) INVESTMENT AUTHORITY.—Subject to appli-
cable State law, the participating State may invest, 
or cause to be invested, funds held in a reserve fund 
by establishing a deposit account at the financial in-
stitution lender in the name of the participating 
State. In the event that funds in the reserve fund are 
not deposited in such an account, such funds shall be 
invested in a form that the participating State deter-
mines is safe and liquid. 
(3) LOAN TERMS AND CONDITIONS TO BE DETER-
MINED BY AGREEMENT.—A loan to be filed for enroll-
ment in an approved State capital access program 
may be made with such interest rate, fees, and other 
terms and conditions, and the loan may be enrolled 
in the approved State capital access program and 
claims may be filed and paid, as agreed upon by the 
financial institution lender and the borrower, con-
sistent with applicable law. 
(4) LENDER
CAPITAL
AT-RISK.—A loan to be 
filed for enrollment in the State capital access pro-
gram shall require the financial institution lender to
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† HR 5297 EAS 
the State program, the Secretary shall take into account 
the following additional considerations: 
(1) The anticipated benefits to the State, its 
businesses, and its residents to be derived from the 
Federal contributions to, or for the account of, the ap-
proved State other credit support program, including 
the extent to which resulting small business lending 
will expand economic opportunities. 
(2) The operational capacity, skills, and experi-
ence of the management team of the State other credit 
support program. 
(3) The capacity of the State other credit support 
program to manage increases in the volume of its 
small business lending. 
(4) The internal accounting and administrative 
controls systems of the State other credit support pro-
gram, and the extent to which they can provide rea-
sonable assurance that funds of the State program are 
safeguarded against waste, loss, unauthorized use, or 
misappropriation. 
(5) The soundness of the program design and im-
plementation plan of the State other credit support 
program. 
(e) FEDERAL CONTRIBUTIONS TO APPROVED STATE 
OTHER CREDIT SUPPORT PROGRAMS.—A State other credit