SEC. 2. SMALL BUSINESS LENDING FUND AMENDMENTS. 
(a) IN GENERAL.—Subtitle A of title IV of the Small 
Business Jobs Act of 2010 is amended— 
(1) in section 4102— 
(A) in paragraph (8)— 
(i) in subparagraph (A), by adding 
‘‘and’’ at the end; 
(ii) by striking subparagraph (B); and 
(iii) by redesignating subparagraph 
(C) as subparagraph (B). 
(B) in paragraph (11)— 
(i) in subparagraph (C), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (D), by striking 
the period at the end and inserting ‘‘; 
and’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(D) any small business lending company 
that has total assets of equal to or less than 
$10,000,000,000.’’; 
(C) in paragraph (18)(A)— 
(i) by inserting after ‘‘such lending’’ 
the following: ‘‘is made to a small business 
and’’; and 
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(ii) by adding at the end the following 
new clause: 
‘‘(v) Nonowner-occupied commercial 
real estate loans.’’; and 
(D) by adding at the end the following new 
paragraphs: 
‘‘(20) SMALL BUSINESS.—The term ‘small busi-
ness’ has the meaning given the term ‘small business 
concern’ under section 3 of the Small Business Act 
(15 U.S.C. 632). 
‘‘(21) SMALL BUSINESS LENDING COMPANY.— 
The term ‘small business lending company’ has the 
meaning given such term under section 3(r)(1) of 
the Small Business Act (15 U.S.C. 632(r)(1)).’’; 
(2) in section 4103— 
(A) in subsection (b)— 
(i) in paragraph (1), by striking the 
period at the end and inserting the fol-
lowing: ‘‘, and, notwithstanding other pro-
visions of Federal law, such debt instru-
ments issued by an eligible institution or-
ganized in mutual form or that has made 
a valid election to be taxed under sub-
chapter S of chapter 1 of the Internal Rev-
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enue Code of 1986 shall be included as a 
component of tier 1 capital.’’; and 
(ii) in paragraph (4), by amending 
subparagraph (B) to read as follows: 
‘‘(B) ELIGIBLE
STANDARDS.—The Sec-
retary, in consultation with the Community De-
velopment Financial Institutions Fund, shall 
develop eligibility criteria to determine the fi-
nancial ability of a CDLF to participate in the 
Program and repay the investment. Such cri-
teria may include net asset ratio to total assets, 
ratio of loan loss reserves to loans and leases 90 
days or more delinquent (including loans sold 
with full recourse), positive net income meas-
ured on a 3-year rolling average, operating li-
quidity ratio, ratio of loans and leases 90 days 
or more delinquent (including loans sold with 
full recourse) to total equity plus loan loss re-
serves, or any other measures deemed appro-
priate. In addition, CDLFs participating in the 
Program shall submit audited financial state-
ments to the Secretary, have a clean audit opin-
ion, and have at least three years of operating 
experience.’’; 
(B) in subsection (d)— 
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(i) in paragraph (1)(F), by striking 
‘‘5 percent’’ and inserting ‘‘10 percent’’; 
(ii) in paragraph (5), by adding at the 
end the following new subparagraphs: 
‘‘(J) INCENTIVES CONTINGENT ON AN IN-
CREASE IN THE NUMBER OF LOANS MADE.— 
For any quarter during the first 41⁄2-year pe-
riod following the date on which an eligible in-
stitution receives a capital investment under the 
Program, other than the first such quarter, in 
which the institution’s change in the amount of 
small business lending relative to the baseline is 
positive, if the number of loans made by the in-
stitution does not increase by 2.5 percent for 
each 2.5 percent increase of small business 
lending, then the rate at which dividends and 
interest shall be payable during the following 
quarter on preferred stock or other financial in-
struments issued to the Treasury by the eligible 
institution shall be— 
‘‘(i) 5 percent, if such quarter is with-
in the 2-year period following the date on 
which the eligible institution receives the 
capital investment under the Program; or 
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‘‘(ii) 7 percent, if such quarter is after 
such 2-year period. 
‘‘(K) ALTERNATIVE
COMPUTATION.—An 
eligible institution may choose to compute their 
small business lending amount by computing 
the amount of small business lending, as if the 
definition of such term did not require that the 
loans comprising such lending be made to small 
business. Any eligible institution choosing to 
compute their small business lending in this 
manner shall certify that all lending included by 
the institution for purposes of computing the 
increase in lending under this paragraph was 
made to small businesses.’’; and 
(iii) in paragraph (8)— 
(I) by amending the heading to 
read as follows: ‘‘OUTREACH TO MI-
NORITIES, WOMEN, VETERANS, AND 
INDIAN TRIBES’’; 
(II) in subparagraph (B), by 
striking ‘‘and’’ at the end; 
(III) in subparagraph (C), by 
striking the period at the end and in-
serting ‘‘; and’’; and 
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