IIB 
111TH CONGRESS 
1ST SESSION H. R. 3854 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 2, 2009 
Received; read twice and referred to the Committee on Small Business and 
Entrepreneurship 
AN ACT 
To amend the Small Business Act and the Small Business 
Investment Act of 1958 to improve programs providing 
access to capital under such Acts, and for other pur-
poses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Financing and Investment Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SMALL BUSINESS LENDING ENHANCEMENTS 
Sec. 101. Small lender outreach program. 
Sec. 102. Rural lending outreach program. 
Sec. 103. Community Express Program made permanent. 
Sec. 104. Increased veteran participation program made permanent. 
Sec. 105. Leasing policy. 
Sec. 106. National lender training program. 
Sec. 107. Applications for repurchase of loans. 
Sec. 108. Alternative size standard. 
Sec. 109. Pilot program authority. 
Sec. 110. Loans to cooperatives. 
Sec. 111. Capital backstop program. 
Sec. 112. Loans to finance goodwill. 
Sec. 113. Appellate process and ombudsman. 
Sec. 114. Extension of recovery and relief loan benefits. 
Sec. 115. Reduced documentation for business stabilization loans. 
Sec. 116. Expanded eligibility for business stabilization loans. 
Sec. 117. Increased amount of business stabilization loans. 
Sec. 118. Extension of business stabilization loans. 
Sec. 119. Study and report on business stabilization loans. 
Sec. 120. Delayed repayment for small business concerns in areas with high un-
employment. 
Sec. 121. SBA secondary market lending authority made permanent. 
Sec. 122. SBA secondary market lending authority expanded. 
Sec. 123. Increased loan limits. 
Sec. 124. Real estate appraisals. 
Sec. 125. Additional support for Express Loan Program. 
Sec. 126. Loans used to purchase unoccupied manufacturing centers or equip-
ment. 
Sec. 127. 100 percent guarantee for small business concerns owned and con-
trolled by veterans. 
Sec. 128. Deferred repayment for certain small business concerns. 
Sec. 129. Authorization of appropriations. 
TITLE II—CDC ECONOMIC DEVELOPMENT LOAN PROGRAM 
Subtitle A—General Provisions 
Sec. 201. Program levels. 
Sec. 202. Definitions. 
Subtitle B—Certified Development Companies 
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Sec. 211. Certified development companies. 
Sec. 212. Certified development company; operational requirements. 
Sec. 213. Accredited lenders program. 
Sec. 214. Premier certified lender program. 
Sec. 215. Multi-State operations. 
Sec. 216. Guaranty of debentures. 
Sec. 217. Economic development through debentures. 
Sec. 218. Project funding requirements. 
Sec. 219. Private debenture sales and pooling of debentures. 
Sec. 220. Foreclosure and liquidation of loans. 
Sec. 221. Reports and regulations. 
Sec. 222. Program name. 
Subtitle C—Miscellaneous 
Sec. 231. Report on standard operating procedures. 
Sec. 232. Alternative size standard. 
TITLE III—MICROLENDING EXPANSION 
Sec. 301. Microloan credit building initiative. 
Sec. 302. Flexible credit terms. 
Sec. 303. Increased program participation. 
Sec. 304. Increased limit on intermediary borrowing. 
Sec. 305. Expanded borrower education assistance. 
Sec. 306. Young Entrepreneurs program. 
Sec. 307. Interest rates and loan size. 
Sec. 308. Reporting requirement. 
Sec. 309. Surplus interest rate subsidy for businesses. 
Sec. 310. Authorization of appropriations. 
TITLE IV—SMALL BUSINESS INVESTMENT COMPANY 
MODERNIZATION 
Sec. 401. Increased investment from States. 
Sec. 402. Expedited licensing for experienced applicants. 
Sec. 403. Revised leverage limitations for successful SBICs. 
Sec. 404. Consistency for cost control. 
Sec. 405. Investment in veteran-owned small businesses. 
Sec. 406. Tangible net worth. 
Sec. 407. Development of agency record. 
Sec. 408. Program levels. 
TITLE V—INVESTMENT IN SMALL MANUFACTURERS AND 
RENEWABLE ENERGY SMALL BUSINESSES 
Subtitle A—Enhanced New Markets Venture Capital Program 
Sec. 501. Expansion of New Markets Venture Capital Program. 
Sec. 502. Improved nationwide distribution. 
Sec. 503. Increased investment in small business concerns engaged primarily in 
manufacturing. 
Sec. 504. Expanded uses for operational assistance in manufacturing. 
Sec. 505. Updating definition of low-income geographic area. 
Sec. 506. Expanding operational assistance to conditionally approved compa-
nies. 
Sec. 507. Limitation on time for final approval. 
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Sec. 508. Streamlined application for New Markets Venture Capital Program. 
Sec. 509. Elimination of matching requirement. 
Sec. 510. Simplified formula for operational assistance grants. 
Sec. 511. Financing with respect to veterans. 
Sec. 512. Authorization of appropriations and enhanced allocation for small 
manufacturing. 
Subtitle B—Expanded Investment in Small Business Renewable Energy 
Sec. 521. Expanded investment in renewable energy. 
Sec. 522. Renewable Energy Capital Investment Program made permanent. 
Sec. 523. Expanded eligibility for small businesses. 
Sec. 524. Expanded uses for operational assistance in manufacturing and small 
businesses. 
Sec. 525. Expansion of Renewable Energy Capital Investment Program. 
Sec. 526. Simplified fee structure to expedite implementation. 
Sec. 527. Increased operational assistance grants. 
Sec. 528. Authorizations of appropriations. 
TITLE VI—SMALL BUSINESS HEALTH INFORMATION 
TECHNOLOGY FINANCING PROGRAM 
Sec. 601. Small business health information technology financing program. 
TITLE VII—SMALL BUSINESS EARLY-STAGE INVESTMENT 
PROGRAM 
Sec. 701. Small business early-stage investment program. 
Sec. 702. Prohibitions on earmarks. 
TITLE VIII—SBA DISASTER PROGRAM REFORM 
Sec. 801. Revised collateral requirements. 
Sec. 802. Increased limits. 
Sec. 803. Revised repayment terms. 
Sec. 804. Revised disbursement process. 
Sec. 805. Grant program. 
Sec. 806. Regional disaster working groups. 
Sec. 807. Outreach grants for loan applicant assistance. 
Sec. 808. Homeowners impacted by toxic drywall. 
Sec. 809. Authorization of appropriations. 
TITLE IX—REGULATIONS 
Sec. 901. Regulations. 
TITLE X—TEMPORARY EMPLOYEE SERVICES FRANCHISES 
Sec. 1001. Temporary employee services franchises. 
TITLE XI—STUDY ON PRIVATE SECTOR LENDING 
Sec. 1101. Study on private sector lending. 
TITLE XII—STUDY ON INCREASES IN CERTAIN CAPS 
Sec. 1201. Study on increases in certain caps. 
TITLE XIII—RURAL OUTREACH 
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Sec. 1301. Rural outreach. 
TITLE XIV—STUDY RELATING TO MEDICAL TECHNOLOGY 
Sec. 1401. Study relating to medical technology. 
TITLE XV—STUDY ON ADDITIONAL CREDIT RISK FACTORS 
Sec. 1501. Study on additional credit risk factors. 
TITLE I—SMALL BUSINESS 
LENDING ENHANCEMENTS 
SEC. 101. SMALL LENDER OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(34) SMALL LENDER OUTREACH PROGRAM.— 
The Administrator shall establish and carry out a 
program to provide support to regional, district, and 
branch offices of the Administration to assist small 
lenders, who do not participate in the Preferred 
Lenders Program, to participate in the programs 
under this subsection.’’. 
SEC. 102. RURAL LENDING OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(35) RURAL LENDING OUTREACH PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish and carry out a rural lending 
outreach program (hereinafter referred to in 
this paragraph as the ‘program’) to provide 
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loans under this subsection in accordance with 
this paragraph. 
‘‘(B) MAXIMUM
PARTICIPATION.—A loan 
under the program shall include the maximum 
participation levels by the Administrator per-
mitted for loans made under this subsection. 
‘‘(C) MAXIMUM LOAN AMOUNT.—The max-
imum amount of a loan under the program 
shall be $250,000. 
‘‘(D) USE OF RURAL LENDERS.—The pro-
gram shall be carried out through lenders lo-
cated in a rural area (as such term is defined 
under subsection (m)(11)(C)) or, if a small 
business concern located in a rural area does 
not have a lender located within 30 miles of the 
principal place of business of such concern, 
through any lender chosen by such concern that 
provides loans under this subsection. 
‘‘(E) TIME FOR APPROVAL.—The Adminis-
trator shall approve or disapprove a loan under 
the program within 36 hours. 
‘‘(F) 
DOCUMENTATION.—The 
program 
shall use abbreviated application and docu-
mentation requirements. 
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‘‘(G) 
CREDIT
STANDARDS.—Minimum 
credit standards, as the Administrator considers 
necessary to limit the rate of default on loans 
made under the program, shall apply.’’. 
SEC. 103. COMMUNITY EXPRESS PROGRAM MADE PERMA-
NENT. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(36) COMMUNITY EXPRESS PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall carry out a Community Express Program 
to provide loans under this subsection in ac-
cordance with this paragraph. 
‘‘(B) REQUIREMENTS.—For a loan made 
under the Community Express Program, the 
following shall apply: 
‘‘(i) The loan shall be in an amount 
not exceeding $250,000. 
‘‘(ii) The loan shall be made to a 
small business concern the majority owner-
ship interest of which is directly held by in-
dividuals the Administrator determines 
are, without regard to the geographic loca-
tion of such individuals, women, members 
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of qualified Indian tribes, socially or eco-
nomically disadvantaged individuals, vet-
erans, or members of the reserve compo-
nents of the Armed Forces. 
‘‘(iii) The loan shall comply with the 
collateral policy of the Administration. 
‘‘(iv) The loan shall include terms re-
quiring the lender to provide, at the ex-
pense of the lender, technical assistance to 
the borrower through the lender or a third- 
party provider. 
‘‘(v) The Administrator shall approve 
or disapprove the loan within 36 hours.’’. 
SEC. 104. INCREASED VETERAN PARTICIPATION PROGRAM 
MADE PERMANENT. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended— 
(1) by redesignating the second paragraph (32), 
as added by section 208 of the Military Reservist 
and Veteran Small Business Reauthorization and 
Opportunity Act of 2008 (Public Law 110–186; 122 
Stat. 631), as paragraph (33); and 
(2) in paragraph (33), as so redesignated by 
paragraph (1) of this section— 
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(A) by striking ‘‘pilot program’’ each place 
it appears and inserting ‘‘program’’; 
(B) by striking subparagraphs (C) and 
(F); and 
(C) by redesignating subparagraphs (D) 
and (E) as subparagraphs (C) and (D), respec-
tively. 
SEC. 105. LEASING POLICY. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
striking paragraph (28) and inserting the following: 
‘‘(28) LEASING.—If a loan under this sub-
section is used to acquire or construct a facility, the 
assisted small business concern— 
‘‘(A) shall permanently occupy and use not 
less than 50 percent of the space in such facil-
ity; and 
‘‘(B) may, on a temporary or permanent 
basis, lease to others not more than 50 percent 
of the space in such facility.’’. 
SEC. 106. NATIONAL LENDER TRAINING PROGRAM. 
(a) IN GENERAL.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)), as amended by this Act, is 
further amended by adding at the end the following: 
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‘‘(37) NATIONAL
LENDER
TRAINING
PRO-
GRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish and carry out, through the re-
gional offices of the Administration, a lender 
training program for new and existing lenders 
under this subsection with respect to the lend-
ing systems, policies, and procedures of the Ad-
ministration. 
‘‘(B) 
FEES.—The 
Administrator 
shall 
charge a fee for the program established under 
subparagraph (A) to reduce the cost of such 
program to zero. 
‘‘(C) LIMITATION.—The program estab-
lished under subparagraph (A) may not be car-
ried out by contract with a nongovernmental 
entity.’’. 
(b) PARTICIPATION.—An entity may not be permitted 
to participate in any program under the Small Business 
Act (15 U.S.C. 631 et seq.) or the Small Business Invest-
ment Act of 1958 (15 U.S.C. 661 et seq.) that is estab-
lished or amended under this Act, as a lending or invest-
ment entity or as an agent of the Small Business Adminis-
tration, unless such entity satisfies at least one of the fol-
lowing: 
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(1) The entity has as the primary mission of 
the entity the financing or development of small 
business concerns. 
(2) The entity is primarily engaged in the busi-
ness of banking, investing, or entrepreneurial devel-
opment and does not engage in activities which are 
not incidental to the business of banking, investing, 
or entrepreneurial development. 
SEC. 107. APPLICATIONS FOR REPURCHASE OF LOANS. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(38) APPLICATIONS
FOR
REPURCHASE
OF 
LOANS.— 
‘‘(A) IN
GENERAL.—Not later than 45 
days after the date of the receipt of a claim 
from a lender for proper payment of the guar-
anteed portion of a loan under this subsection 
due to default, the Administrator shall make a 
final determination with respect to the approval 
or denial of such claim. 
‘‘(B) LATE DETERMINATIONS.—If the Ad-
ministrator does not make a final determination 
under subparagraph (A) in the time period 
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specified in such subparagraph, the claim shall 
be approved and paid promptly. 
‘‘(C) If the lender demonstrates, with re-
spect to a claim for payment described in sub-
paragraph (A), that it followed the applicable 
requirements of the National Lender Training 
Program as established under paragraph (37) 
of this section, the Administrator shall pay the 
claim unless the Administrator has clear and 
convincing evidence demonstrating that the 
lender failed to comply with regulatory require-
ments established by the Administrator.’’. 
SEC. 108. ALTERNATIVE SIZE STANDARD. 
(a) IN GENERAL.—Section 3(a) of the Small Busi-
ness Act (15 U.S.C. 632(a)) is amended by adding at the 
end the following: 
‘‘(5) In addition to any other size standard 
under this subsection, the Administrator shall estab-
lish and permit a lender making a loan under section 
7(a) to use an alternative size standard. The alter-
native size standard shall be based on factors includ-
ing the maximum tangible net worth and average 
net income of a business concern.’’. 
(b) APPLICABILITY.—Until the Administrator estab-
lishes under section 3(a)(5) of the Small Business Act, 
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as added by subsection (a) of this section, an alternative 
size standard for use by a lender making a loan under 
section 7(a) of such Act, the alternative size standard in 
section 121.301(b) of title 13, Code of Federal Regula-
tions, shall apply in such a case. 
SEC. 109. PILOT PROGRAM AUTHORITY. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
striking paragraph (25) and inserting the following: 
‘‘(25) LIMITATION
ON
CONDUCTING
PILOT 
PROJECTS.— 
‘‘(A) LIMITATION ON NUMBER.—Not more 
than 10 percent of the total number of loans 
guaranteed in any fiscal year under this sub-
section may be awarded as part of a pilot pro-
gram. 
‘‘(B) DOLLAR LIMITATIONS.— 
‘‘(i) IN
GENERAL.—With respect to 
any pilot program under this subsection es-
tablished on or after the date of the enact-
ment of the Small Business Financing and 
Investment Act of 2009, no loan shall be 
made under such program if such loan 
would result in the total amount of loans 
made during a fiscal year under all such 
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programs to be in excess of 5 percent of 
the total amount of loans guaranteed in 
such fiscal year under this subsection. 
‘‘(ii) CERTAIN
PRE-EXISTING
PRO-
GRAMS.—With respect to any pilot pro-
gram under this subsection established be-
fore the date of the enactment of the Small 
Business Financing and Investment Act of 
2009, no loan shall be made under such 
program if such loan would result in the 
total amount of loans made during a fiscal 
year under all such programs to be in ex-
cess of 10 percent of the total amount of 
loans guaranteed in such fiscal year under 
this subsection. 
‘‘(C) EXPIRATION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (iii), the duration of any 
pilot program under this subsection may 
not exceed 3 years. 
‘‘(ii) DESIGNATION
AS
NEW
PRO-
GRAM.—For purposes of this subpara-
graph, a pilot program shall not be treated 
as a new pilot program solely on the basis 
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of a modification or change in the pilot 
program, including the change of its name. 
‘‘(iii) EXISTING PROGRAMS.—With re-
spect to any pilot program in existence on 
the date of the enactment of the Small 
Business Financing and Investment Act of 
2009, such program may continue in effect 
for a period not exceeding 3 years after 
such date without regard to the duration 
of such program before such date. 
‘‘(D) REGULATIONS.— 
‘‘(i) IN
GENERAL.—With respect to 
each pilot program under this subsection, 
including each pilot program in existence 
on the date of the enactment of the Small 
Business Financing and Investment Act of 
2009, the Administrator shall— 
‘‘(I) issue regulations for such 
program after providing notice in the 
Federal Register and an opportunity 
for comment; and 
‘‘(II) ensure that such regula-
tions are published in the Code of 
Federal Regulations. 
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‘‘(ii) PILOT PROGRAMS ESTABLISHED 
AFTER
DATE
OF
ENACTMENT.—With re-
spect to any pilot program established 
after the date of the enactment of the 
Small Business Financing and Investment 
Act of 2009, such program shall not take 
effect until the requirements under this 
subparagraph are satisfied. 
‘‘(E) REPEAL
OF
AUTHORITY
TO
WAIVE 
CERTAIN RULES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
section 120.3 of title 13, Code of Federal 
Regulations, the Administrator may not 
from time to time suspend, modify, or 
waive rules for a limited period of time to 
test new programs or ideas with respect to 
this subsection, unless such suspension, 
modification, or waiver is explicitly author-
ized by Act of Congress. 
‘‘(ii) EXISTING
PILOT
PROGRAMS.— 
Nothing under clause (i) may be construed 
to affect a pilot program in existence on 
the date of the enactment of the Small 
Business Financing and Investment Act of 
2009. 
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‘‘(F) PILOT PROGRAM.—For purposes of 
this paragraph, the term ‘pilot program’ means 
any lending program initiative, project, innova-
tion, or other activity not specifically authorized 
by Act of Congress.’’. 
SEC. 110. LOANS TO COOPERATIVES. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(39) 
COOPERATIVES.—The 
Administration 
may provide loans under this subsection to any coop-
erative that— 
‘‘(A) is not organized as a tax-exempt enti-
ty; 
‘‘(B) is engaged in a legal business activ-
ity; 
‘‘(C) obtains financial benefits for the co-
operative and for the members of such coopera-
tive; and 
‘‘(D) is eligible under applicable size stand-
ards of the Administration, including that any 
business entity that is a member of such coop-
erative is eligible under applicable size stand-
ards of the Administration.’’. 
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SEC. 111. CAPITAL BACKSTOP PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(40) CAPITAL BACKSTOP PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish a process under which a small 
business concern may submit an application to 
the Administrator for the purpose of securing a 
loan under this subsection. With respect to such 
application, the Administrator shall collect all 
information necessary to determine the credit-
worthiness and repayment ability of an appli-
cant and shall determine if such application 
meets the eligibility and credit standards that a 
lender would be required to apply to approve a 
loan under this subsection. 
‘‘(B) PARTICIPATION OF LENDERS.— 
‘‘(i) IN GENERAL.—The Administrator 
shall establish a process under which the 
Administrator makes available to lenders 
each loan application submitted and deter-
mined to meet basic eligibility and credit 
standards under subparagraph (A) for the 
purpose of such lenders originating, under-
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writing, closing, and servicing the loan for 
which the applicant applied. 
‘‘(ii) ELIGIBILITY.—Lenders are eligi-
ble to receive a loan application described 
in clause (i) if they participate in the pro-
grams established under this subsection. 
‘‘(iii) LOCAL LENDERS.—The Admin-
istrator shall first make available a loan 
application described in clause (i) to lend-
ers within 100 miles of the principal office 
of the loan applicant. 
‘‘(iv) PREFERRED
LENDERS.—If a 
lender described in clause (iii) does not 
agree to originate, underwrite, close, and 
service the loan applied for within 5 busi-
ness days of receiving a loan application 
described in clause (i), the Administrator 
shall subsequently make available such 
loan application to lenders in the Preferred 
Lenders 
Program 
under 
paragraph 
(2)(C)(ii) of this subsection. 
‘‘(v) AUTHORITY OF ADMINISTRATION 
TO LEND.—If a lender described in clauses 
(iii) or (iv) does not agree to originate, un-
derwrite, close, and service the loan applied 
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for within 10 business days of receiving a 
loan application described in clause (i), the 
Administrator shall originate, underwrite, 
close, and service such loan. 
‘‘(C) ASSET
SALES.—The Administrator 
shall offer to sell loans made by the Adminis-
trator under this paragraph. Such sales shall be 
made through the semi-annual public solicita-
tion (in the Federal Register and in other 
media) of offers to purchase. The Administrator 
may contract with vendors for due diligence, 
asset valuation, and other services related to 
such sales. The Administrator may not sell any 
loan under this subparagraph for less than 90 
percent of the net present value of the loan, as 
determined and certified by a qualified third 
party. 
‘‘(D) LOANS
NOT
SOLD.—The Adminis-
trator shall maintain and service loans made by 
the Administrator under this paragraph that 
are not sold through the asset sales under this 
paragraph. 
‘‘(E) EFFECTIVE DATES.—This paragraph 
shall have effect on each date during the period 
beginning on the date of enactment of this 
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paragraph and ending on September 30, 2011, 
and on any other date after such period if— 
‘‘(i) such date occurs during a period 
that— 
‘‘(I) begins on the date the Bu-
reau of Economic Analysis, or any 
successor organization, makes a deter-
mination that the gross domestic 
product of the United States has de-
creased for three consecutive quarters; 
and 
‘‘(II) ends on the date the Bu-
reau of Economic Analysis, or any 
successor organization, makes a deter-
mination that the gross domestic 
product of the United States has in-
creased for two consecutive quarters; 
and 
‘‘(ii) the number of loans provided 
under this subsection prior to such date in 
the fiscal year including such date is at 
least 30 percent less than the number of 
such loans provided prior to the same point 
in the previous fiscal year. 
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‘‘(F) IMPLEMENTATION.—The Adminis-
trator shall establish a group of at least 250 in-
dividuals available to carry out activities under 
this paragraph on any date on which this para-
graph has effect under subparagraph (E). The 
Administrator shall provide to such group the 
training necessary to carry out activities under 
this paragraph. The Administrator shall ensure 
that each individual in such group with loan ap-
plication evaluation and underwriting respon-
sibilities has at least 2 years experience with re-
spect to such responsibilities. 
‘‘(G) APPLICATION
OF
OTHER
LAW.— 
Nothing in this paragraph shall be construed to 
exempt any activity of the Administrator under 
this paragraph from the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.). 
‘‘(H) AUTHORIZATION
OF
APPROPRIA-
TIONS.— 
‘‘(i) PROGRAM LEVELS.—The Admin-
istrator is authorized to make loans under 
this paragraph in an amount that is equal 
to half the amount authorized for loans 
under this subsection other than loans 
under this paragraph. 
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‘‘(ii) AUTHORIZATION OF APPROPRIA-
TIONS.—In addition to amounts made 
available to carry out this subsection, there 
are authorized to be appropriated such 
sums as may be necessary to carry out this 
paragraph.’’. 
SEC. 112. LOANS TO FINANCE GOODWILL. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(41) GOODWILL.—The Administrator may not 
apply an application, processing, or approval stand-
ard to a loan for the purpose of financing goodwill 
under this subsection, unless such standard applies 
to all loans under this subsection.’’. 
SEC. 113. APPELLATE PROCESS AND OMBUDSMAN. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 44 as section 45; 
and 
(2) by inserting after section 43 the following: 
‘‘SEC. 44. APPELLATE PROCESS AND OMBUDSMAN. 
‘‘(a) APPELLATE PROCESS.— 
‘‘(1) IN GENERAL.—Not later than 270 days 
after the date of the enactment of the Small Busi-
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ness Financing and Investment Act of 2009, the Ad-
ministrator shall establish an independent appellate 
process within the Administration. The process shall 
be available to review material determinations made 
by the Administration that affect a lender or invest-
ment company that participates or is applying to 
participate in a program administered by the Ad-
ministration. 
‘‘(2) REVIEW
PROCESS.—In establishing the 
independent appellate process under paragraph (1), 
the Administrator shall ensure that— 
‘‘(A) any appeal of a material determina-
tion by the Administration is heard and result-
ing recommendations are provided expedi-
tiously; and 
‘‘(B) appropriate safeguards exist for pro-
tecting the appellant from retaliation by Admin-
istration employees. 
‘‘(3) COMMENT PERIOD.—Not later than 180 
days after the date of the enactment of the Small 
Business Financing and Investment Act of 2009, the 
Administrator shall provide an opportunity for no-
tice and comment on proposed guidelines for the es-
tablishment of an independent appellate process 
under this section. 
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‘‘(b) AGENCY OMBUDSMAN.— 
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the date of the enactment of the Small 
Business Financing and Investment Act of 2009, the 
Administrator shall appoint an ombudsman. 
‘‘(2) DUTIES.—The ombudsman appointed in 
accordance with paragraph (1) shall— 
‘‘(A) act as a liaison between the Adminis-
tration and any lender or investment company 
that participates or is applying to participate in 
a program administered by the Administration 
with respect to a problem such entity may have 
in dealing with the Administration resulting 
from a material determination made by the Ad-
ministration; and 
‘‘(B) ensure that safeguards exist to en-
courage complainants to come forward and pre-
serve confidentiality. 
‘‘(c) OTHER AUTHORITY.—An individual carrying 
out the independent appellate process established under 
subsection (a) or the position of ombudsman established 
under subsection (b) is authorized to— 
‘‘(1) examine records and documents relating to 
a matter under review pursuant to such subsections; 
and 
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SEC. 120. DELAYED REPAYMENT FOR SMALL BUSINESS 
CONCERNS IN AREAS WITH HIGH UNEMPLOY-
MENT. 
Section 506 of title V of division A of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111– 
5) is amended by adding at the end the following: 
‘‘(l) SMALL BUSINESS CONCERNS IN AREAS WITH 
HIGH UNEMPLOYMENT.— 
‘‘(1) INCREASE LOAN LIMITS.—Notwithstanding 
subsection (d), a loan made under this section to a 
small business concern in what the Administrator 
determines to be an area with high unemployment 
may not exceed $75,000. 
‘‘(2) DELAYED REPAYMENT.—Notwithstanding 
subsection (g), repayment for a loan made under 
this section after the date of the enactment of the 
Small Business Financing and Investment Act of 
2009 to a small business concern described in para-
graph (1) shall not begin until 18 months after the 
final disbursement of funds is made.’’. 
SEC. 121. SBA SECONDARY MARKET LENDING AUTHORITY 
MADE PERMANENT. 
Section 509 of title V of division A of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111– 
5) is amended— 
(1) by striking subsection (e); and 
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‘‘(iv) FAILURE
TO
OBTAIN
CERTIFI-
CATION.—Any development company that 
fails to obtain certification in accordance 
with the procedures set forth in this para-
graph during the period set forth in clause 
(i) shall be considered to be a new develop-
ment company and the procedures of para-
graph (2) shall apply. The authority to 
issue debentures shall cease for any devel-
opment company covered by this subpara-
graph that has failed to obtain certification 
from the Administrator during the time 
period set forth in clause (i). 
‘‘(F) AUTOMATIC
QUALIFICATION
PROVI-
SION.—If the Administrator fails to implement 
the certification process set forth in this para-
graph, any development company that was 
issuing debentures before September 30, 2009, 
pursuant to this title shall be considered cer-
tified until such time as the Administrator de-
velops the certification procedures set forth in 
this paragraph. 
‘‘(G) SAVINGS CLAUSE.—Any action taken 
by a development company or the Administrator 
pursuant to this paragraph shall have no im-
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