on small business concerns. All proceeds of the fee shall 
be used to offset the cost (as that term is defined in sec-
tion 502 of the Credit Reform Act of 1990) to the Admin-
istrator of making guarantees under this section. 
‘‘(k) EFFECTIVE DATE.—The fees authorized by this 
section shall apply to any financing approved under this 
title on or after October 1, 1996. 
‘‘(l) CALCULATION OF SUBSIDY RATE.—All fees, in-
terest, and profits received and retained by the Adminis-
trator under this section shall be included in the calcula-
tions made by the Director of the Office of Management 
and Budget to offset the cost (as that term is defined in 
section 502 of the Federal Credit Reform Act of 1990) 
to the Administrator of purchasing and guaranteeing de-
bentures under this title. 
‘‘(m) ACTIONS UPON DEFAULT.— 
‘‘(1) INITIAL
ACTIONS.—Not later than the 
45th day after the date on which a payment on a 
loan funded through a debenture guaranteed under 
this section is due and not received, the Adminis-
trator shall— 
‘‘(A) take all necessary steps to bring such 
loan current; or 
‘‘(B) implement a formal written deferral 
agreement. 
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‘‘(2) PURCHASE OR ACCELERATION OF DEBEN-
TURE.—Not later than the 65th day after the date 
on which a payment on a loan described in para-
graph (1) is due and not received, and absent a for-
mal written deferral agreement, the Administrator 
shall take all necessary steps to purchase or accel-
erate the debenture. 
‘‘(3) PREPAYMENT PENALTIES.—With respect 
to the portion of any project derived from funds not 
provided by a debenture issued by a certified devel-
opment company or borrower, the Administrator— 
‘‘(A) shall negotiate the elimination of any 
prepayment penalties or late fees on defaulted 
loans made prior to September 30, 1996; 
‘‘(B) shall not pay any prepayment penalty 
or late fee on the default based purchase of 
loans issued after September 30, 1996; and 
‘‘(C) shall not pay a default interest rate 
higher than the interest rate on the note prior 
to the date of default for any project financed 
after September 30, 1996. 
‘‘(4) COLLECTION AND SERVICING.— 
‘‘(A) IN GENERAL.—In the event of the de-
fault of any loan and the repurchase of a de-
benture guaranteed by the Administrator under 
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this title, the Administrator shall continue to 
delegate to the central servicing agent that was 
contracted for that service as of January 1, 
2009, or successor contractor the authority to 
collect and disburse all funds or payments re-
ceived on such defaulted loans, including pay-
ments from guarantors or on notes in com-
promise of the original note. The central serv-
icing agent shall continue to provide an ac-
counting of income and expenses for any such 
loan on the same basis it does for any other 
loan issued under this title. The central serv-
icing agent shall make the accounting of income 
and expenses and reports thereon available as 
requested by the certified development company 
that issued the debenture or the Administrator. 
‘‘(B) EFFECTIVE
DATE.—The require-
ments of subparagraph (A) shall become effec-
tive 180 days after the date of enactment of the 
Small Business Financing and Investment Act 
of 2009.’’. 
SEC. 217. ECONOMIC DEVELOPMENT THROUGH DEBEN-
TURES. 
Section 507 of the Small Business Investment Act 
of 1958 (15 U.S.C. 697d) is amended to read as follows: 
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‘‘SEC. 507 ECONOMIC DEVELOPMENT AND DEBENTURES. 
‘‘(a) IN GENERAL.—A certified development company 
shall be prohibited from issuing a debenture under this 
title unless the project funded with the debenture meets 
one of the following economic development objectives: 
‘‘(1) The creation of job opportunities within 
two years of the completion of the project or the 
preservation or retention of jobs attributable to the 
project. 
‘‘(2) Improving the economy of the locality, 
such as stimulating other business development in 
the community, bringing new income into the area, 
or assisting the community in diversifying and stabi-
lizing its economy. 
‘‘(3) The achievement of one or more of the fol-
lowing public policy goals: 
‘‘(A) Business district revitalization or ex-
pansion of businesses in low-income commu-
nities which would be eligible for a new markets 
tax credit under section 45D(a) of the Internal 
Revenue Code of 1986, or implementing regula-
tions issued under that section. 
‘‘(B) Expansion of exports. 
‘‘(C) Expansion of minority business devel-
opment or women-owned business development. 
‘‘(D) Rural development. 
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‘‘(E) Expansion of small business concerns 
owned and controlled by veterans, as defined in 
section 3(q) of the Small Business Act (15 
U.S.C. 632(q)), especially service-disabled vet-
erans, as defined in such section. 
‘‘(F) Enhanced economic competition, in-
cluding the advancement of technology, plan re-
tooling, conversion to robotics, or competition 
with imports. 
‘‘(G) Changes necessitated by Federal 
budget cutbacks, including defense related in-
dustries. 
‘‘(H) Business restructuring arising from 
federally mandated standards or policies affect-
ing the environment or the safety and health of 
employees. 
‘‘(I) Reduction of energy consumption by 
at least 10 percent. 
‘‘(J) Increased use of sustainable design, 
including designs that reduce the use of green-
house gas emitting fossil fuels, or low-impact 
design to produce buildings that reduce the use 
of nonrenewable resources and minimize envi-
ronmental impact. 
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