SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Lending Improvements Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—7(A) PROGRAM 
Sec. 101. Authority for fee contributions. 
Sec. 102. Rural Lending Outreach Program. 
Sec. 103. Community Express program made permanent. 
Sec. 104. Medical Professionals in Designated Shortage Areas Program. 
Sec. 105. Increased Veteran Participation Program. 
Sec. 106. Alternative size standard. 
Sec. 107. Support to regional offices. 
TITLE II—CERTIFIED DEVELOPMENT COMPANY ECONOMIC 
DEVELOPMENT LOAN PROGRAM 
Sec. 201. Certified Development Company Economic Development Loan Program. 
Sec. 202. Definitions. 
Sec. 203. Eligibility of development companies to be designated as certified devel-
opment companies. 
Sec. 204. Definition of rural areas. 
Sec. 205. Businesses in low-income areas. 
Sec. 206. Combinations of certain goals. 
Sec. 207. Refinancing. 
Sec. 208. Additional equity injections. 
Sec. 209. Loan liquidations. 
Sec. 210. Closing costs. 
Sec. 211. Maximum Certified Development Company and 7(a) loan eligibility. 
Sec. 212. Eligibility for energy efficiency projects. 
Sec. 213. Loans for plant projects used for energy-efficient purposes. 
Sec. 214. Extension of period during which loss reserves of premier certified lend-
ers determined on the basis of outstanding balance of debentures. 
Sec. 215. Extension of alternative loss reserve pilot program for certain premier 
certified lenders. 
TITLE I—7(A) PROGRAM 
SEC. 101. AUTHORITY FOR FEE CONTRIBUTIONS. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended— 
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(1) in paragraph (18)(A) by striking ‘‘shall col-
lect’’ and inserting ‘‘shall assess and collect’’; 
(2) in paragraph (18) by adding at the end the 
following: 
‘‘(C) OFFSET.—The Administrator may, as 
provided in paragraph (32), offset fees assessed 
and collected under subparagraph (A).’’; 
(3) in paragraph (23) by striking subparagraph 
(C) and adding at the end the following: 
‘‘(C) OFFSET.—The Administrator may, as 
provided in paragraph (32), offset fees assessed 
and collected under subparagraph (A).’’; and 
(4) by adding at the end the following: 
‘‘(32) FEE CONTRIBUTIONS.— 
‘‘(A) IN
GENERAL.—To the extent that 
amounts are made available to the Adminis-
trator for the purpose of fee contributions, the 
Administrator shall— 
‘‘(i) first consider contributing to fees 
paid by small business borrowers under 
clauses (i) through (iii) of paragraph 
(18)(A), to the maximum extent possible; 
and 
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‘‘(ii) then consider contributing to fees 
paid by small business lenders under para-
graph (23)(A). 
‘‘(B) QUARTERLY ADJUSTMENT.—Each fee 
contribution under subparagraph (A) shall be ef-
fective for one fiscal quarter and shall be ad-
justed as necessary for each fiscal quarter there-
after to ensure that the amounts under subpara-
graph (A) are fully used. The fee contribution for 
a fiscal quarter shall be based on the loans that 
the Administrator projects will be made during 
that fiscal quarter, given the program level au-
thorized by law for that fiscal year and any 
other factors that the Administrator considers 
appropriate.’’. 
SEC. 102. RURAL LENDING OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended— 
(1) by striking paragraph (25)(C); and 
(2) by adding at the end the following: 
‘‘(33) RURAL LENDING OUTREACH PROGRAM.— 
The Administrator shall carry out a rural lending 
outreach program to provide up to an 85 percent 
guaranty for loans of $250,000 or less. The program 
shall be carried out only through lenders located in 
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rural areas (as ‘rural’ is defined in section 501(f) of 
the Small Business Investment Act of 1958). For a 
loan made through the program, the following shall 
apply: 
‘‘(A) The Administrator shall approve or 
disapprove the loan within 36 hours. 
‘‘(B) The program shall use abbreviated ap-
plication and documentation requirements. 
‘‘(C) Minimum credit standards, as the Ad-
ministrator considers necessary to limit the rate 
of default on loans made under the program, 
shall apply.’’. 
SEC. 103. COMMUNITY EXPRESS PROGRAM MADE PERMA-
NENT. 
(a) IN GENERAL.—Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended by adding at the end 
the following: 
‘‘(34) COMMUNITY EXPRESS PROGRAM.—The Ad-
ministrator shall carry out a Community Express 
Program for loans of $250,000 or less. For a loan 
made under this paragraph, the following shall apply: 
‘‘(A) The loan shall be made to a business 
concern— 
‘‘(i) the majority ownership interest of 
which is directly held by individuals who 
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are women, socially or economically dis-
advantaged individuals (as defined by the 
Administrator), or veterans of the Armed 
Forces; or 
‘‘(ii) that is located in a low- or mod-
erate-income area, as defined by the Admin-
istrator. 
‘‘(B) The loan shall comply with the collat-
eral policy of the Administration, except that, if 
the amount of the loan is less than or equal to 
$25,000, the Administration shall not require the 
lender to take collateral. 
‘‘(C) The loan shall include terms requiring 
the lender to ensure that technical assistance is 
provided to the borrower, through the lender or 
a third-party provider. 
‘‘(D) The Administration shall approve or 
disapprove the loan within 36 hours.’’. 
(b) NOTICE AND COMMENT.—The program required by 
section 7(a)(34) of the Small Business Act, as added by sub-
section (a), shall be established after the opportunity for no-
tice and comment and not later than 180 days after the 
date of the enactment of this Act. 
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SEC. 
104. 
MEDICAL 
PROFESSIONALS 
IN 
DESIGNATED 
SHORTAGE AREAS PROGRAM. 
(a) IN GENERAL.—Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended by adding at the end 
the following: 
‘‘(35) MEDICAL PROFESSIONALS IN DESIGNATED 
SHORTAGE
AREAS
PROGRAM.—The Administrator 
shall carry out a Medical Professionals in Designated 
Shortage Areas Program. For a loan made under this 
paragraph, the following shall apply: 
‘‘(A) The loan shall be made to a business 
concern that provides properly licensed medical, 
dental, or psychiatric services to the public. 
‘‘(B) The loan shall be for the purpose of 
opening a business concern in a health profes-
sional shortage area (as defined in section 332 of 
the Public Health Service Act (42 U.S.C. 254e)). 
‘‘(C) The loan shall include the participa-
tion by the Administration equal to 90 percent 
of the balance of the financing outstanding at the 
time of disbursement. 
‘‘(D) The fees on the loan under paragraphs 
(18) and (23) shall be reduced by half.’’. 
(b) NOTICE AND COMMENT.—The program required by 
section 7(a)(35) of the Small Business Act, as added by sub-
section (a), shall be established after the opportunity for no-
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tice and comment and not later than 180 days after the 
date of the enactment of this Act. 
SEC. 105. INCREASED VETERAN PARTICIPATION PROGRAM. 
(a) IN GENERAL.—Section 7(a) of the Small Business 
Act (15 U.S.C. 636(a)) is amended by adding at the end 
the following: 
‘‘(36) INCREASED VETERAN PARTICIPATION PRO-
GRAM.—The Administrator shall carry out an In-
creased Veteran Participation Program. For a loan 
made under this paragraph, the following shall apply: 
‘‘(A) The loan shall be made to a business 
concern the majority ownership interest of which 
is directly held by individuals who are veterans 
of the Armed Forces. 
‘‘(B) The loan shall include the participa-
tion by the Administration equal to 90 percent 
of the balance of the financing outstanding at the 
time of disbursement. 
‘‘(C) The fees on the loan under paragraphs 
(18) and (23) shall not apply.’’. 
(b) NOTICE AND COMMENT.—The program required by 
section 7(a)(36) of the Small Business Act, as added by sub-
section (a), shall be established after the opportunity for no-
tice and comment and not later than 180 days after the 
date of the enactment of this Act. 
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SEC. 106. ALTERNATIVE SIZE STANDARD. 
(a) IN GENERAL.—Section 3(a) of the Small Business 
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 sec-
tion 7(a) and a lender making a loan under the de-
velopment company loan program to use, an alter-
native size standard. The alternative size standard 
shall be based on factors including maximum tangible 
net worth and average net income.’’. 
(b) APPLICABILITY.—Until the Administrator estab-
lishes, under section 3(a)(5) of the Small Business Act (as 
added by subsection (a)), an alternative size standard in 
the case of a lender making a loan under section 7(a) of 
that Act, the alternative size standard in section 121.301(b) 
of title 13, Code of Federal Regulations, shall apply to such 
a case. 
SEC. 107. SUPPORT TO REGIONAL OFFICES. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(37) SUPPORT
TO
REGIONAL
OFFICES.—The 
Administrator shall carry out a program, within an 
element of the Administration already in existence as 
of the date of the enactment of the Small Business 
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Lending Improvements Act of 2007, to provide sup-
port to regional offices of the Administration in as-
sisting small lenders who do not participate in the 
preferred lender program to participate in the 7(a) 
program.’’. 
TITLE II—CERTIFIED DEVELOP-
MENT COMPANY ECONOMIC 
DEVELOPMENT 
LOAN 
PRO-
GRAM 
SEC. 201. CERTIFIED DEVELOPMENT COMPANY ECONOMIC 
DEVELOPMENT LOAN PROGRAM. 
Section 504 of the Small Business Investment Act of 
1958 (15 U.S.C. 697a) is amended— 
(1) by redesignating subsections (a) and (b) as 
subsections (b) and (c); and 
(2) by inserting before subsection (b) (as so re-
designated) the following: 
‘‘(a) The program to provide financing to small busi-
nesses by guarantees of loans under this Act which are fund-
ed by debentures guaranteed by the Administration may be 
known as the ‘Certified Development Company Economic 
Development Loan Program’.’’. 
SEC. 202. DEFINITIONS. 
Section 103(6) of the Small Business Investment Act 
of 1958 (15 U.S.C. 662(6)) is amended to read as follows: 
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‘‘(6) the term ‘development company’ means an 
entity incorporated under State law with the author-
ity to promote and assist the growth and development 
of small-business concerns in the areas in which it is 
authorized to operate by the Administration, and the 
term ‘certified development company’ means a devel-
opment company which the Administration has deter-
mined meets the criteria of section 506;’’. 
SEC. 203. ELIGIBILITY OF DEVELOPMENT COMPANIES TO 
BE DESIGNATED AS CERTIFIED DEVELOP-
MENT COMPANIES. 
Section 506 of the Small Business Investment Act of 
1958 (15 U.S.C. 697c) is amended to read as follows: 
‘‘SEC. 506. CERTIFIED DEVELOPMENT COMPANIES. 
‘‘(a) AUTHORITY TO ISSUE DEBENTURES.—A develop-
ment company may issue debentures pursuant to this Act 
if the Administration certifies that the company meets the 
following criteria: 
‘‘(1) SIZE.—The development company is re-
quired to be a small concern with fewer than 500 em-
ployees and not under the control of any entity which 
does not meet the Administration’s size standards as 
a small business, except that any development com-
pany which was certified by the Administration prior 
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to December 31, 2005 may continue to issue deben-
tures. 
‘‘(2) PURPOSE.—The primary purpose of the de-
velopment company is to benefit the community by 
fostering economic development to create and preserve 
jobs and stimulate private investment. 
‘‘(3) PRIMARY
FUNCTION.—The primary func-
tion of the development company is to accomplish its 
purpose by providing long term financing to small 
businesses by the utilization of the Certified Develop-
ment Company Economic Development Loan Pro-
gram. It may also provide or support such other local 
economic development activities to assist the commu-
nity. 
‘‘(4) NON-PROFIT
STATUS.—The development 
company is a non-profit corporation, except that a 
development company certified by the Administration 
prior to January 1, 1987, may retain its status as 
a for-profit corporation. 
‘‘(5) GOOD
STANDING.—The development com-
pany is in good standing in its State of incorporation 
and in any other State in which it conducts business, 
and is in compliance with all laws, including tax-
ation requirements, in its State of incorporation and 
in any other State in which it conducts business. 
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‘‘(6) MEMBERSHIP.—The development company 
has at least 25 members (or stockholders if the cor-
poration is a for-profit entity), none of whom may 
own or control more than 10 percent of the company’s 
voting membership, consisting of representation from 
each of the following groups (none of which are in a 
position to control the development company): 
‘‘(A) Government organizations that are re-
sponsible for economic development. 
‘‘(B) Financial institutions that provide 
commercial long term fixed asset financing. 
‘‘(C) Community organizations that are 
dedicated to economic development. 
‘‘(D) Businesses. 
‘‘(7) BOARD OF DIRECTORS.—The development 
company has a board of directors that— 
‘‘(A) is elected from the membership by the 
members; 
‘‘(B) represents at least three of the four 
groups enumerated in subsection (a)(6) and no 
group is in a position to control the company; 
and 
‘‘(C) meets on a regular basis to make pol-
icy decisions for such company. 
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‘‘(8) PROFESSIONAL MANAGEMENT AND STAFF.— 
The development company has full-time professional 
management, including a chief executive officer to 
manage daily operations, and a full-time professional 
staff qualified to market the Certified Development 
Company Economic Development Loan Program and 
handle all aspects of loan approval and servicing, in-
cluding liquidation, if appropriate. The development 
company is required to be independently managed 
and operated to pursue its economic development mis-
sion and to employ its chief executive officer directly, 
with the following exceptions: 
‘‘(A) A development company may be an af-
filiate of another local non-profit service corpora-
tion (specifically excluding another development 
company) whose mission is to support economic 
development in the area in which the develop-
ment company operates. In such a case: 
‘‘(i) The development company may 
satisfy the requirement for full-time profes-
sional staff by contracting with a local non- 
profit service corporation (or one of its non- 
profit affiliates), or a governmental or 
quasi-governmental agency, to provide the 
required staffing. 
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‘‘(ii) The development company and 
the local non-profit service corporation may 
have partially common boards of directors. 
‘‘(B) A development company in a rural 
area (as defined in section 501(f)) shall be 
deemed to have satisfied the requirements of a 
full-time professional staff and professional man-
agement ability if it contracts with another cer-
tified development company which has such staff 
and management ability and which is located in 
the same general area to provide such services. 
‘‘(C) A development company that has been 
certified by the Administration as of December 
31, 2005, and that has contracted with a for- 
profit company to provide services as of such 
date may continue to do so. 
‘‘(b) AREA
OF OPERATIONS.—The Administration 
shall specify the area in which an applicant is certified to 
provide assistance to small businesses under this title, which 
may not initially exceed its State of incorporation unless 
it proposes to operate in a local economic area which is 
required to include part of its State of incorporation and 
may include adjacent areas within several States. After a 
development company has demonstrated its ability to pro-
vide assistance in its area of operations, it may request the 
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Administration to be allowed to operate in one or more ad-
ditional States as a multi-state certified development com-
pany if it satisfies the following criteria: 
‘‘(1) Each additional State is contiguous to the 
State of incorporation, except the States of Alaska 
and Hawaii shall be deemed to be contiguous to any 
State abutting the Pacific ocean. 
‘‘(2) It demonstrates its proficiency in making 
and servicing loans under the Certified Development 
Company Economic Development Loan Program 
by— 
‘‘(A) requesting and receiving designation 
as an accredited lender under section 507 or a 
premier certified lender under section 508; and 
‘‘(B) meeting or exceeding performance 
standards established by the Administration. 
‘‘(3) The development company adds to the mem-
bership of its State of incorporation additional mem-
bership from each additional State and the added 
membership meets the requirements of subsection 
(a)(6). 
‘‘(4) The development company adds at least one 
member to its board of directors in the State of incor-
poration, providing that added member was selected 
by the membership of the development company. 
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‘‘(5) The company meets such other criteria or 
complies with such conditions as the Administration 
deems appropriate. 
‘‘(c) PROCESSING OF EXPANSION APPLICATIONS.—The 
Administration shall respond to the request of a certified 
development company for certification as a multi-state com-
pany on an expedited basis within 30 days of receipt of 
a completed application if the application demonstrates 
that the development company meets the requirements of 
subsection (b)(1) through (b)(4). 
‘‘(d) USE OF FUNDS LIMITED TO STATE WHERE GEN-
ERATED.—Any funds generated by a development company 
from making loans under the Certified Development Com-
pany Economic Development Loan Program which remain 
after payment of staff, operating and overhead expenses 
shall be retained by the development company as a reserve 
for future operations, for expanding its area of operations 
in a local economic area as authorized by the Administra-
tion, or for investment in other local economic development 
activity in the State from which the funds were generated. 
‘‘(e) ETHICAL REQUIREMENTS.— 
‘‘(1) IN GENERAL.—Certified development com-
panies, their officers, employees and other staff, shall 
at all times act ethically and avoid activities which 
constitute a conflict of interest or appear to constitute 
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a conflict of interest. No one may serve as an officer, 
director or chief executive officer of more than one cer-
tified development company. 
‘‘(2) 
PROHIBITED
CONFLICT
IN
PROJECT 
LOANS.—As part of a project under the Certified De-
velopment Company Economic Development Loan 
Program, no certified development company may rec-
ommend or approve a guarantee of a debenture by the 
Administration that is collateralized by a second lien 
position on the property being constructed or acquired 
and also provide, or be affiliated with a corporation 
or other entity, for-profit or non-profit, which pro-
vides, financing collateralized by a first lien on the 
same property. A business development company that 
was participating as a first mortgage lender, either 
directly or through an affiliate, for the Certified De-
velopment Company Economic Development Loan 
Program in either fiscal years 2004 or 2005 may con-
tinue to do so. 
‘‘(3) OTHER
ECONOMIC
DEVELOPMENT
ACTIVI-
TIES.—Operation of multiple programs to assist 
small business concerns in order for a certified devel-
opment company to carry out its economic develop-
ment mission shall not be deemed a conflict of inter-
est, but notwithstanding any other provision of law, 
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no development company may accept funding from 
any source, including but not limited to any depart-
ment or agency of the United States Government— 
‘‘(A) if such funding includes any condi-
tions, priorities or restrictions upon the types of 
small businesses to which they may provide fi-
nancial assistance under this title; or 
‘‘(B) if it includes any conditions or im-
poses any requirements, directly or indirectly, 
upon any recipient of assistance under this title 
unless the department or agency also provides all 
of the financial assistance to be delivered by the 
development company to the small business and 
such conditions, priorities or restrictions are 
limited solely to the financial assistance so pro-
vided.’’. 
SEC. 204. DEFINITION OF RURAL AREAS. 
Section 501 of the Small Business Investment Act of 
1958 (15 U.S.C. 695) is amended by adding at the end the 
following new subsection: 
‘‘(f) As used in subsection (d)(3)(D), the term ‘rural’ 
shall include any area other than— 
‘‘(1) a city or town that has a population greater 
than 50,000 inhabitants; and 
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‘‘(2) the urbanized area contiguous and adjacent 
to such a city or town.’’. 
SEC. 205. BUSINESSES IN LOW-INCOME AREAS. 
Section 501(d)(3) of the Small Business Investment 
Act of 1958 (15 U.S.C. 695(d)(3)) is amended by inserting 
after ‘‘business district revitalization’’ the following: ‘‘or ex-
pansion of businesses in low-income communities that 
would be eligible for new market tax credit investments 
under section 45D of the Internal Revenue Code of 1986 
(26 U.S.C. 45D)’’. 
SEC. 206. COMBINATIONS OF CERTAIN GOALS. 
Section 501(e) of the Small Business Investment Act 
of 1958 (15 U.S.C. 695(e)) is amended by adding at the 
end the following: 
‘‘(7) A small business concern that is uncondi-
tionally owned by more than one individual, or a cor-
poration whose stock is owned by more than one indi-
vidual, is deemed to achieve a public policy goal 
under subsection (d)(3) if a combined ownership 
share of at least 51 percent is held by individuals who 
are in one of the groups listed as public policy goals 
specified in subsection (d)(3)(C) or (d)(3)(E).’’. 
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SEC. 207. REFINANCING. 
Section 502 of the Small Business Investment Act of 
1958 (15 U.S.C. 696) is amended by adding at the end the 
following: 
‘‘(7) PERMISSIBLE DEBT REFINANCING.—Any fi-
nancing approved under this title may also include a 
limited amount of debt refinancing for debt that was 
not previously guaranteed by the Administration. If 
the project involves expansion of a small business 
which has existing indebtedness collateralized by fixed 
assets, any amount of existing indebtedness that does 
not exceed one-half of the project cost of the expansion 
may be refinanced and added to the expansion cost, 
providing— 
‘‘(A) the proceeds of the indebtedness were 
used to acquire land, including a building situ-
ated thereon, to construct a building thereon or 
to purchase equipment; 
‘‘(B) the borrower has been current on all 
payments due on the existing debt for at least the 
past year; and 
‘‘(C) the financing under the Certified De-
velopment Company Economic Development 
Loan Program will provide better terms or rate 
of interest than now exists on the debt.’’. 
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SEC. 208. ADDITIONAL EQUITY INJECTIONS. 
Clause (ii) of section 502(3)(B) of the Small Business 
Investment Act of 1958 (15 U.S.C. 696(3)(B)) is amended 
to read as follows: 
‘‘(ii) FUNDING FROM INSTITUTIONS.— 
‘‘(I) If a small business concern 
provides the minimum contribution re-
quired under paragraph (C), not less 
than 50 percent of the total cost of any 
project financed pursuant to clauses 
(i), (ii), or (iii) of subparagraph (C) 
shall come from the institutions de-
scribed in subclauses (I), (II), and 
(III) of clause (i). 
‘‘(II) If a small business concern 
provides more than the minimum con-
tribution required under paragraph 
(C), any excess contribution may be 
used to reduce the amount required 
from the institutions described in sub-
clauses (I), (II), and (III) of clause (i) 
except that the amount from such in-
stitutions may not be reduced to an 
amount less than the amount of the 
loan made by the Administration.’’. 
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SEC. 209. LOAN LIQUIDATIONS. 
Section 510 of the Small Business Investment Act of 
1958 (15 U.S.C. 697g) is amended— 
(1) by redesignating subsection (e) as subsection 
(g); and 
(2) by inserting after subsection (d) the fol-
lowing: 
‘‘(e) PARTICIPATION.— 
‘‘(1) MANDATORY.—Any certified development 
company which elects not to apply for authority to 
foreclose and liquidate defaulted loans under this sec-
tion or which the Administration determines to be in-
eligible for such authority shall contract with a quali-
fied third-party to perform foreclosure and liquida-
tion of defaulted loans in its portfolio. The contract 
shall be contingent upon approval by the Administra-
tion with respect to the qualifications of the con-
tractor and the terms and conditions of liquidation 
activities. 
‘‘(2) COMMENCEMENT.—The provisions of this 
subsection shall not require any development com-
pany to liquidate defaulted loans until the Adminis-
tration has adopted and implemented a program to 
compensate and reimburse development companies as 
provided under subsection (f). 
‘‘(f) COMPENSATION AND REIMBURSEMENT.— 
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‘‘(1) REIMBURSEMENT OF EXPENSES.—The Ad-
ministration shall reimburse each certified develop-
ment company for all expenses paid by such company 
as part of the foreclosure and liquidation activities if 
the expenses— 
‘‘(A) were approved in advance by the Ad-
ministration either specifically or generally; or 
‘‘(B) were incurred by the company on an 
emergency basis without Administration prior 
approval but which were reasonable and appro-
priate. 
‘‘(2) COMPENSATION
FOR
RESULTS.—The Ad-
ministration shall develop a schedule to compensate 
and provide an incentive to qualified State or local 
development companies which foreclose and liquidate 
defaulted loans. The schedule shall be based on a per-
centage of the net amount recovered but shall not ex-
ceed a maximum amount. The schedule shall not 
apply to any foreclosure which is conducted pursuant 
to a contract between a development company and a 
qualified third-party to perform the foreclosure and 
liquidation.’’. 
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SEC. 210. CLOSING COSTS. 
Paragraph (4) of section 503(b) of the Small Business 
Investment Act of 1958 (15 U.S.C. 697(b)) is amended to 
read as follows: 
‘‘(4) the aggregate amount of such debenture does 
not exceed the amount of loans to be made from the 
proceeds of such debenture plus, at the election of the 
borrower under the Certified Development Company 
Economic Development Loan Program, other amounts 
attributable to the administrative and closing costs of 
such loans, except for the borrower’s attorney fees;’’. 
SEC. 211. MAXIMUM CERTIFIED DEVELOPMENT COMPANY 
AND 7(A) LOAN ELIGIBILITY. 
Section 502(2) of the Small Business Investment Act 
of 1958 (15 U.S.C. 696(2)) is amended by adding at the 
end the following: 
‘‘(C) COMBINATION FINANCING.—Financing 
under this title may be provided to a borrower 
in the maximum amount provided in this sub-
section, plus a loan guarantee under section 7(a) 
of the Small Business Act may also be provided 
to the same borrower in the maximum provided 
in section 7(a)(3)(A) of such Act.’’. 
SEC. 212. ELIGIBILITY FOR ENERGY EFFICIENCY PROJECTS. 
Section 501(d)(3) of the Small Business Investment 
Act of 1958 (15 U.S.C. 695(d)(3)) is amended— 
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(1) in subparagraph (G) by striking ‘‘or’’ at the 
end; 
(2) in subparagraph (H) by striking the period 
at the end and inserting ‘‘, or’’; and 
(3) by inserting after subparagraph (H) the fol-
lowing: 
‘‘(I) reduction of energy consumption by at 
least 10 percent.’’. 
SEC. 213. LOANS FOR PLANT PROJECTS USED FOR ENERGY- 
EFFICIENT PURPOSES. 
Section 502(2)(A) of the Small Business Investment 
Act of 1958 (15 U.S.C. 696(2)(A)) is amended— 
(1) in clause (ii) by striking ‘‘and’’ at the end; 
(2) in clause (iii) by striking the period at the 
end and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(iv) $4,000,000 for each project that 
reduces the borrower’s energy consumption 
by at least 10 percent.’’. 
SEC. 214. EXTENSION OF PERIOD DURING WHICH LOSS RE-
SERVES OF PREMIER CERTIFIED LENDERS 
DETERMINED 
ON 
THE 
BASIS 
OF 
OUT-
STANDING BALANCE OF DEBENTURES. 
Section 508(c)(6)(B) of the Small Business Investment 
Act of 1958 (15 U.S.C. 697e(c)(6)(B)) is amended by strik-
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ing ‘‘during the 2-year period beginning on the date that 
is 90 days after the date of the enactment of this subpara-
graph,’’ and inserting ‘‘through the end of fiscal year 
2008,’’. 
SEC. 215. EXTENSION OF ALTERNATIVE LOSS RESERVE 
PILOT PROGRAM FOR CERTAIN PREMIER CER-
TIFIED LENDERS. 
Section 508(c)(7)(J) of the Small Business Investment 
Act of 1958 (15 U.S.C. 697e(c)(7)(J)) is amended by strik-
ing ‘‘means’’ and all that follows through the period at the 
end and inserting ‘‘means each calendar quarter through 
the end of fiscal year 2008.’’ 
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Union Calendar No. 64 
110TH CONGRESS 
1ST SESSION 
H. R. 1332 
[Report No. 110–104] 
A BILL 
To improve the access to capital programs of the 
Small Business Administration, and for other 
purposes. 
APRIL 20, 2007 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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