I 
111TH CONGRESS 
2D SESSION 
H. R. 5412 
To amend the Small Business Investment Act of 1958 to increase maximum 
loan amounts under the program in title V of that Act, to provide 
temporary authority for debt refinancing of commercial real estate, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 26, 2010 
Ms. BEAN (for herself, Mrs. DAHLKEMPER, Mr. PETERS, Mr. MURPHY of 
New York, Mr. QUIGLEY, Mr. BRIGHT, Ms. MARKEY of Colorado, Mr. 
MICHAUD, Mr. LIPINSKI, Mr. ELLSWORTH, Mr. POLIS of Colorado, Mr. 
COOPER, Mr. KLEIN of Florida, Mr. MOORE of Kansas, Mr. HILL, Mr. 
WELCH, and Mrs. HALVORSON) introduced the following bill; which was 
referred to the Committee on Small Business 
A BILL 
To amend the Small Business Investment Act of 1958 to 
increase maximum loan amounts under the program in 
title V of that Act, to provide temporary authority for 
debt refinancing of commercial real estate, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Asset 
Investment and Modernization (AIM) Act of 2010’’. 
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SEC. 2. 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 
(5) in clause (v), by striking ‘‘$4,000,000’’ and 
inserting ‘‘$5,500,000’’. 
SEC. 3. LOW-INTEREST REFINANCING UNDER THE LOCAL 
DEVELOPMENT BUSINESS LOAN PROGRAM. 
Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended by adding at the end 
the following: 
‘‘(8) TEMPORARY AUTHORITY FOR DEBT REFI-
NANCING OF COMMERCIAL REAL ESTATE.— 
‘‘(A) IN GENERAL.—During the period be-
ginning on the date of enactment of this para-
graph and ending on September 30, 2012, not-
withstanding paragraph (7), the Administrator 
may approve, for financing under this title, the 
refinancing of indebtedness that is secured by a 
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lien on commercial real estate or equipment of 
a small business concern under such terms and 
conditions as the Administrator determines ap-
propriate, except at a minimum such terms and 
conditions shall include the following: 
‘‘(i) The existing indebtedness is ma-
turing not more than one year after the 
loan approval date. 
‘‘(ii) The proceeds of the existing in-
debtedness were used to acquire land, in-
cluding a building situated thereon, to con-
struct a building thereon, or to purchase 
equipment. 
‘‘(iii) The small business concern has 
been current on all payments due on the 
existing indebtedness for a period begin-
ning on a date that is not less than 1 year 
before the date of refinancing and ending 
on the date of refinancing. 
‘‘(iv) At the time of refinancing, the 
lien shall be assigned or released in a man-
ner that ensures that the financing under 
this title is in the same lien position as the 
existing indebtedness. 
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‘‘(v) The existing indebtedness was in-
curred for the benefit of the small business 
concern. 
‘‘(vi) The financing under this title 
will be used only for refinancing existing 
indebtedness or costs relating to such refi-
nancing. 
‘‘(vii) The amount being refinanced 
may not exceed 90 percent of the ap-
praised value of the commercial real estate 
or equipment on the date of refinancing or 
100 percent of the outstanding principal 
amount of the existing indebtedness, 
whichever is less, plus allowable closing 
costs as determined by the Administrator. 
‘‘(viii) Notwithstanding any other pro-
vision of this title, for a refinancing under 
this paragraph— 
‘‘(I) not less than 50 percent of 
the appraised value of the commercial 
real estate or equipment on the date 
of refinancing shall come from the in-
stitutions described in subclauses (I), 
(II) or (III) of paragraph (3)(B)(i): 
Provided, That if the indebtedness 
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being refinanced pursuant to this 
paragraph is held by such an institu-
tion, or an affiliate thereof, that is 
providing funds for the refinancing, 
the institution shall contribute not 
less than 70 percent of such appraised 
value of the commercial real estate or 
equipment; and 
‘‘(II) the remaining funds needed 
for the refinancing (including closing 
costs) shall come from the develop-
ment company. 
‘‘(ix) In addition to the other fees im-
posed under this title, the Administrator 
shall assess, collect, and retain such annual 
fees in amounts necessary to reduce to 
zero the cost (as that term is defined in 
section 502 of the Federal Credit Reform 
Act of 1990) to the Administrator of mak-
ing guarantees under the authority of sec-
tion 503(a) with respect to refinancings 
under this paragraph. 
‘‘(x) The temporary fee elimination 
authorized under section 501(b) of the 
American Recovery and Reinvestment Act 
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of 2009, Public Law 111–5, shall not 
apply to any refinancing made under this 
paragraph. 
‘‘(xi) No fee reduction or elimination 
applicable to loans under this title shall 
apply to loans under this paragraph. 
‘‘(xii) No portion of the indebtedness 
may be subject to a guarantee by a Fed-
eral agency. 
‘‘(xiii) The development company may 
charge the small business concern a proc-
essing fee of up to 50 basis points more 
than the amount that the Administrator 
authorizes under section 120.971(a)(1) of 
title 13, Code of Federal Regulations, as in 
effect on January 1, 2010. 
‘‘(B) TOTAL AMOUNT OF LOANS.—The Ad-
ministrator may provide not more than a total 
of $7,500,000,000 of financing under this para-
graph for each fiscal year. 
‘‘(C) NONDELEGATION.—Notwithstanding 
section 508(e) of this title, the Administrator 
may not permit a premier certified lender to ap-
prove or disapprove an application for assist-
ance under this paragraph. 
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‘‘(D) TERM APPOINTMENTS.— 
‘‘(i) To carry out the authority under 
this paragraph, the Administrator may au-
thorize term appointments within the Ad-
ministration under subchapter I of chapter 
33 of title 5, United States Code, for a pe-
riod of not less than 1 year and not more 
than 6 years. 
‘‘(ii) Notwithstanding chapter 33 of 
title 5, United States Code, or any other 
provision of law relating to the examina-
tion, certification, and appointment of indi-
viduals in the competitive service, the Ad-
ministrator may convert an employee serv-
ing under a term appointment to a perma-
nent appointment in the competitive serv-
ice within the Administration without fur-
ther competition if— 
‘‘(I) such individual was ap-
pointed under open, competitive exam-
ination under subchapter I of chapter 
33 of title 5, United States Code, to 
the term position; 
‘‘(II) the announcement for the 
term appointment from which the con-
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version is made stated that there was 
potential for subsequent conversion to 
a career-conditional or career appoint-
ment; 
‘‘(III) the employee has com-
pleted at least 2 years of current con-
tinuous service under a term appoint-
ment in the competitive service; 
‘‘(IV) the employee’s performance 
under such term appointment was at 
least fully successful or equivalent; 
and 
‘‘(V) the position to which such 
employee is being converted under this 
section is in the same occupational se-
ries, is in the same geographic loca-
tion, and provides no greater pro-
motion potential than the term posi-
tion for which the competitive exam-
ination was conducted. 
‘‘(iii) Notwithstanding chapter 33 of 
title 5, United States Code, or any other 
provision of law relating to the examina-
tion, certification, and appointment of indi-
viduals in the competitive service, the Ad-
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ministrator may convert an employee serv-
ing under a term appointment to a perma-
nent appointment in the competitive serv-
ice within the Administration through in-
ternal competitive promotion procedures if 
the 
conditions 
under 
subclauses 
(I) 
through (IV) of subparagraph (D)(ii) are 
met. 
‘‘(iv) An employee converted under 
this subparagraph becomes a career-condi-
tional employee, unless the employee has 
otherwise completed the service require-
ments for career tenure. 
‘‘(v) An employee converted to career 
or career-conditional employment under 
this subparagraph acquires competitive 
status upon conversion. 
‘‘(E) ELIMINATION
OF
PENSION
OFFSET 
FOR CERTAIN REHIRED FEDERAL RETIREES.— 
‘‘(i) IN GENERAL.—To carry out the 
authority under this paragraph, the Ad-
ministrator may waive the application of 
section 8344 or 8468 of title 5, United 
States Code, on a case-by-case basis for 
employment of an annuitant. 
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‘‘(ii) PROCEDURES.—The Adminis-
trator shall prescribe procedures for the 
exercise of authority under this subpara-
graph, including— 
‘‘(I) criteria for any exercise of 
authority; and 
‘‘(II) procedures for a delegation 
of authority. 
‘‘(iii) EFFECT OF WAIVER.—An em-
ployee as to whom a waiver under this sub-
paragraph is in effect shall not be consid-
ered an employee for purposes of sub-
chapter III of chapter 83, or chapter 84, 
of title 5, United States Code. 
‘‘(F) EMERGENCY RULEMAKING AUTHOR-
ITY.— 
‘‘(i) The Administrator shall— 
‘‘(I) not later than 90 days after 
the date of enactment of the Small 
Business Asset Investment and Mod-
ernization (AIM) Act of 2010, without 
providing notice or opportunity for 
comment, issue interim regulations 
implementing this paragraph; and 
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