I 
112TH CONGRESS 
2D SESSION 
H. R. 6037 
To include focusing on credit availability in the mission of each Federal 
banking regulator, to provide insured depository institutions with certain 
amortization authority and authority to include allowances for loan and 
lease losses when calculating the institution’s capital, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 27, 2012 
Mr. COFFMAN of Colorado (for himself and Mr. PERLMUTTER) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To include focusing on credit availability in the mission of 
each Federal banking regulator, to provide insured de-
pository institutions with certain amortization authority 
and authority to include allowances for loan and lease 
losses when calculating the institution’s capital, 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 Lend-
ing for Jobs Act of 2012’’. 
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SEC. 2. FOCUS ON CREDIT AVAILABILITY. 
(a) MISSION MODIFICATION.— 
(1) IN GENERAL.—In addition to the missions 
of the Federal banking agencies included in other 
law, the Federal banking agencies shall include fo-
cusing on— 
(A) generally fostering and facilitating 
credit availability to customers of insured de-
pository institutions, so long as that credit is 
provided in a safe and sound manner; and 
(B) generally assisting insured depository 
institutions to provide such credit responsibly, 
so as to encourage business development and 
employment, by utilizing regulatory policies and 
procedures that promote credit availability in a 
safe and sound manner. 
(2) PROHIBITION.—In carrying out the ele-
ments of their missions added by paragraph (1), the 
Federal banking agencies may not require or pres-
sure insured depository institutions, directly or indi-
rectly, to provide particular kinds of credit or on 
particular terms. 
(3) IMPLEMENTATION
PLAN.—Not later than 
the end of the 120-day period beginning on the date 
of the enactment of this Act, each Federal banking 
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agency shall issue a report to the Congress con-
taining an implementation plan that addresses— 
(A) how the agency will modify specific 
rules, regulations, interpretative opinions, and 
other policies of the agency to address the 
modification of the agency’s mission under 
paragraph (1); 
(B) how and when those modifications will 
be put into effect, but in no case later than the 
end of the 180-day period beginning on the 
date of the enactment of this Act; and 
(C) how examiners, other agency personnel 
who have direct contact with insured depository 
institutions, and the supervisors of those agency 
personnel are to be trained and evaluated on 
their individual performance on implementation 
of the modified mission. 
(4) REPORTS.—Not later than the end of the 
360-day period beginning on the date of the enact-
ment of this Act, and annually thereafter, each Fed-
eral banking agency shall issue a report to the Con-
gress on— 
(A) a current assessment of the degree to 
which the agency’s policies foster and facilitate 
the availability of credit to customers of insured 
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depository institutions in a safe and sound 
manner; 
(B) the agency’s progress on implementing 
the modified mission; 
(C) results of ongoing evaluation methods 
to assess how the agency and its individual ex-
aminers, other employees who have direct con-
tact with insured depository institutions, and 
supervisors of those personnel have performed 
in implementing the modified mission; and 
(D) corrective measures the agency will 
take to address deficiencies in accomplishing 
the requirements described under subpara-
graphs (A) through (C). 
(b) CREDIT AVAILABILITY COUNCIL.—There is here-
by established the Credit Availability Council, which 
shall— 
(1) consist of the head of each Federal banking 
agency, or a designee; and 
(2) coordinate the efforts of the Federal bank-
ing agencies in— 
(A) fostering and facilitating credit avail-
ability to customers of insured depository insti-
tutions, so long as that credit is provided in a 
safe and sound manner; and 
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(B) assisting insured depository institu-
tions to provide such credit responsibly, so as to 
encourage business development and employ-
ment. 
(c) DEFINITIONS.—For purposes of this section: 
(1) FEDERAL
BANKING
AGENCY.—The term 
‘‘Federal banking agency’’ means— 
(A) the Board of Governors of the Federal 
Reserve System; 
(B) the Bureau of Consumer Financial 
Protection; 
(C) the Federal Deposit Insurance Cor-
poration; 
(D) the Office of the Comptroller of the 
Currency; and 
(E) the National Credit Union Administra-
tion. 
(2) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ means— 
(A) an insured depository institution, as 
such term is defined under section 3(c)(2) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1813(c)(2)); and 
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(B) an insured credit union, as such term 
is defined under section 101 of the Federal 
Credit Union Act (12 U.S.C. 1752). 
SEC. 3. COMMERCIAL REAL ESTATE LOAN LOSS AMORTIZA-
TION. 
(a) IN GENERAL.—For purposes of capital calcula-
tion under the Financial Institutions Examination Coun-
cil’s Consolidated Reports of Condition and Income, an in-
sured depository institution with assets of less than 
$10,000,000,000 may choose to amortize any loss or 
write-down, on a quarterly straight-line basis over the 7- 
year period beginning with the month in which such loss 
or write-down occurs, incurred with respect to— 
(1) a loan secured by commercial real estate; or 
(2) other real estate owned. 
(b) EFFECTIVE DATE.—The provisions of this sec-
tion shall apply to capital calculations described under 
subsection (a) occurring after the date of the enactment 
of this Act for losses and write-downs that occurred— 
(1) on or after January 1, 2007; and 
(2) before the end of the 2-year period begin-
ning on the date of the enactment of this Act. 
(c) DISCLOSURE ON CONSOLIDATED REPORTS OF 
CONDITION AND INCOME.—With respect to an insured de-
pository institution choosing to make use of the amortiza-
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tion provided for under subsection (a), such institution 
shall, on the Financial Institutions Examination Council’s 
Consolidated Reports of Condition and Income, disclose 
the difference between the amount of the institution’s cap-
ital when calculated using such amortization and when 
calculated without using such amortization. 
(d) REPORTING
ON PRIOR LOSSES
AND WRITE- 
DOWNS.—An insured depository institution that chooses 
to make use of the amortization provided for under sub-
section (a) with respect to losses and write-downs occur-
ring prior to the date of the enactment of this Act shall 
do so by making a one-time adjustment to the institution’s 
Consolidated Reports of Condition and Income. 
(e) DEFINITIONS.—For purposes of this section: 
(1) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ shall have the 
meaning given such term under section 3(c)(2) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1813(c)(2)). 
(2) OTHER REAL ESTATE OWNED.—The term 
‘‘other real estate owned’’ shall have the meaning 
given such term under section 34.81 of title 12, 
Code of Federal Regulations. 
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SEC. 4. INCLUSION OF LOAN LOSS RESERVES IN COMPUTA-
TION OF CAPITAL RESERVES. 
(a) IN GENERAL.—The appropriate Federal banking 
agencies shall issue regulations to permit an insured de-
pository institution to include all of such institution’s al-
lowance for loan and lease losses when computing such 
institution’s capital for purposes of satisfying risk-based 
capital requirements. 
(b) EXCEPTION FOR LOSS CLASSIFICATION.—Not-
withstanding subsection (a), this section shall not apply 
to allowances for loans or lease losses where such loan or 
lease is classified as a ‘‘loss’’. 
(c) RULEMAKING.—The appropriate Federal banking 
agencies shall issue regulations required under this section 
no later than the end of the 120-day period beginning on 
the date of the enactment of this Act. 
(d) REPORT TO THE CONGRESS.—Not later than 1 
year after the date of the enactment of this Act, and annu-
ally thereafter, each appropriate Federal banking agency 
shall issue a report to the Congress on— 
(1) the implementation of the provisions of this 
section; 
(2) the impact of the provisions of this section 
on the availability of lending; and 
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(3) the impact of the provisions of this section 
on the safety and soundness of insured depository 
institutions. 
(e) DEFINITIONS.—For purposes of this section: 
(1) 
ALLOWANCE
FOR
LOAN
AND
LEASE 
LOSSES.— 
(A) IN
GENERAL.—The term ‘‘allowance 
for loan and lease losses’’ means those general 
valuation allowances that have been established 
through charges against earnings to absorb 
losses on loans and lease financing receivables. 
(B) EXCLUSION.—The term ‘‘allowance for 
loan and lease losses’’ does not include allocated 
transfer risk reserves established pursuant to 
section 905 of the International Lending Super-
vision Act of 1983 (12 U.S.C. 3904) and spe-
cific reserves created against identified losses. 
(2) APPROPRIATE
FEDERAL
BANKING
AGEN-
CIES.—The term ‘‘appropriate Federal banking 
agencies’’ shall have the meaning given such term 
under section 3(q) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(q)). 
(3) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ shall have the 
meaning given such term under section 3(c)(2) of 
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the Federal Deposit Insurance Act (12 U.S.C. 
1813(c)(2)). 
Æ 
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