I 
111TH CONGRESS 
1ST SESSION H. R. 4302 
To increase loan limits for small business concerns, to provide for low interest 
refinancing for small business concerns, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 14, 2009 
Mr. ABERCROMBIE (for himself and Mrs. LOWEY) introduced the following 
bill; which was referred to the Committee on Small Business 
A BILL 
To increase loan limits for small business concerns, to pro-
vide for low interest refinancing for small business con-
cerns, 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 Job 
Creation and Access to Capital Act of 2009’’. 
TITLE I—NEXT STEPS FOR MAIN 
STREET CREDIT AVAILABILITY 
SEC. 101. SECTION 7(a) BUSINESS LOANS. 
(a) AMENDMENT.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)) is amended— 
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(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 
(2) 
in 
paragraph 
(3)(A), 
by 
striking 
‘‘$1,500,000 (or if the gross loan amount would ex-
ceed $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. 102. 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’’; 
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(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. 103. MAXIMUM LOAN LIMITS UNDER MICROLOAN PRO-
GRAM. 
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 
inserting ‘‘$50,000’’; and 
(3) 
in 
paragraph 
(11)(B), 
by 
striking 
‘‘$35,000’’ and inserting ‘‘$50,000’’. 
SEC. 104. TEMPORARY FEE REDUCTIONS. 
Section 501 of the American Recovery and Reinvest-
ment Act of 2009 (Public Law 111–5; 123 Stat. 151) is 
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amended by striking ‘‘September 30, 2010’’ each place 
that term appears and inserting ‘‘December 31, 2010’’. 
SEC. 105. 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 ap-
proved by the Administrator, a covered New Markets 
Venture Capital company may not acquire or issue 
commitments for securities under this title for any 
single enterprise 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 
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‘‘(B) the total amount of leverage pro-
jected in the participation agreement of the cov-
ered New Markets Venture Capital.’’. 
SEC. 106. 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 
establish 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 average net income as an alternative to the use 
of industry 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 
development company loan under title V of the 
Small Business Investment Act of 1958 may be eli-
gible for such a loan if— 
‘‘(i) the maximum tangible net worth of 
the applicant is not more than $15,000,000; 
and 
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‘‘(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. 107. 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 Ad-
ministrator shall, upon request of a pool assembler, divide 
the loan guarantee into increments of $500,000 and 1 in-
crement 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 para-
graph may be included in the same pool.’’. 
SEC. 108. ONLINE LENDING PLATFORM. 
It is the sense of the Congress that the Administrator 
of the Small Business Administration should establish a 
website that— 
(1) lists each lender that makes loans guaran-
teed by the Small Business Administration and pro-
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vides information about the loan rates of each such 
lender; and 
(2) allows prospective borrowers to compare 
rates on loans guaranteed by the Small Business 
Administration. 
TITLE II—SMALL BUSINESS 
ACCESS TO CAPITAL 
SEC. 201. LOW-INTEREST REFINANCING UNDER THE LOCAL 
DEVELOPMENT BUSINESS LOAN PROGRAM. 
(a) REFINANCING.—Section 502(7) of the Small 
Business Investment Act of 1958 (15 U.S.C. 696(7)) is 
amended by adding at the end the following: 
‘‘(C) REFINANCING
NOT
INVOLVING
EX-
PANSIONS.— 
‘‘(i) DEFINITIONS.—In this subpara-
graph— 
‘‘(I) the term ‘borrower’ means a 
small business concern that submits 
an application to a development com-
pany for financing under this sub-
paragraph; 
‘‘(II) the term ‘eligible fixed 
asset’ means tangible property relat-
ing to which the Administrator may 
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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 
agency; 
‘‘(DD) the proceeds of 
which were used to acquire 
an eligible fixed asset; 
‘‘(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 
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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 
business concern may include the refi-
nancing of qualified debt if— 
‘‘(I) the amount of the financing 
is not more than 80 percent of the 
value of the collateral for the financ-
ing, except that, if the appraised value 
of the eligible fixed assets serving as 
collateral for the financing is less than 
the amount equal to 125 percent of 
the amount of the financing, the bor-
rower may provide additional cash or 
other collateral to eliminate any defi-
ciency; 
‘‘(II) the borrower has been in 
operation for all of the 2-year period 
ending 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 
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under this clause for non-business 
purposes. 
‘‘(iv) LOANS BASED ON JOBS.— 
‘‘(I) JOB CREATION AND RETEN-
TION GOALS.— 
‘‘(aa) IN
GENERAL.—The 
Administrator may provide fi-
nancing under this subparagraph 
for a borrower that meets the job 
creation 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 
borrower that does not meet the 
goals described in item (aa) in an 
amount that is not more than the 
product obtained by multiplying 
the number of employees of the 
borrower by $65,000. 
‘‘(II) NUMBER OF EMPLOYEES.— 
For purposes of subclause (I), the 
number of employees of a borrower is 
equal to the sum of— 
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‘‘(aa) the number of full- 
time employees of the borrower 
on the date on which the bor-
rower applies for a loan under 
this subparagraph; 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 
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. 
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‘‘(vi) TOTAL
AMOUNT
OF
LOANS.— 
The Administrator may provide not more 
than a total of $4,000,000,000 of financ-
ing under this subparagraph for each fiscal 
year.’’. 
(b) PROSPECTIVE REPEAL.—Effective 2 years after 
the date of the 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)’’. 
Æ 
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