I 
114TH CONGRESS 
2D SESSION 
H. R. 5672 
To help small businesses access capital and create jobs by reauthorizing 
the successful State Small Business Credit Initiative. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 7, 2016 
Mr. KILDEE (for himself, Ms. MAXINE WATERS of California, Mr. HONDA, 
and Mr. LANGEVIN) introduced the following bill; which was referred to 
the Committee on Financial Services 
A BILL 
To help small businesses access capital and create jobs by 
reauthorizing the successful State Small Business Credit 
Initiative. 
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 Access 
to Capital Act of 2016’’. 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
SEC. 2. NEW TRANCHES OF CAPITAL FOR SUCCESSFUL 
STATE PROGRAMS. 
Section 3003 of the Small Business Jobs Act of 2010 
(12 U.S.C. 5702) is amended by adding at the end the 
following: 
‘‘(d) ADDITIONAL ALLOCATION AND COMPETITIVE 
AWARDS.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘eligible participating State’ 
means a participating State that has certified 
to the Secretary that the State has expended, 
transferred, or obligated not less than 80 per-
cent of the second 1⁄3 of the 2010 allocation 
transferred to the State under subsection 
(c)(1)(A)(iii); and 
‘‘(B) the term ‘unused funds’ means— 
‘‘(i) amounts made available to the 
Secretary under clause (i)(II) or (ii)(II) of 
paragraph (2)(E); and 
‘‘(ii) amounts made available to the 
Secretary under paragraph (4)(B)(ii). 
‘‘(2) ALLOCATION
FOR
2010
PARTICIPATING 
STATES.— 
‘‘(A) ALLOCATION.—Of the amount made 
available under paragraph (6)(D), the Secretary 
shall allocate a total of $500,000,000 among el-
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
igible participating States in the same ratio as 
funds were allocated under the 2010 allocation 
under subsection (b)(1) among participating 
States. 
‘‘(B) APPLICATION.—An eligible partici-
pating State desiring to receive funds allocated 
under this paragraph shall submit an applica-
tion— 
‘‘(i) not later than the date that is 6 
months after the date of enactment of the 
Small Business Access to Capital Act of 
2016; and 
‘‘(ii) in such manner and containing 
such information as the Secretary may re-
quire. 
‘‘(C) 
AVAILABILITY
OF
ALLOCATED 
AMOUNT.—Notwithstanding subsection (c)(1), 
after an eligible participating State approved by 
the Secretary to receive an allocation under this 
paragraph has certified to the Secretary that 
the eligible participating State has expended, 
transferred, or obligated not less than 80 per-
cent of the last 1⁄3 of the 2010 allocation to the 
eligible participating State, the Secretary shall 
transfer to the eligible participating State the 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
funds allocated to the eligible participating 
State under this paragraph. 
‘‘(D) USE OF TRANSFERRED FUNDS.—An 
eligible participating State may use funds 
transferred under this paragraph for any pur-
pose authorized under subparagraph (A) or (B) 
of subsection (c)(3). 
‘‘(E) TERMINATION OF AVAILABILITY OF 
AMOUNTS.— 
‘‘(i) IN GENERAL.—If an eligible par-
ticipating State has not certified to the 
Secretary that the State has expended, 
transferred, or obligated not less than 80 
percent of the last 1⁄3 of the 2010 alloca-
tion as of the date that is 2 years after the 
date on which the Secretary approves the 
eligible participating State to receive an al-
location 
under 
this 
paragraph, 
any 
amounts allocated to the eligible partici-
pating State under this paragraph— 
‘‘(I) may not be transferred to 
the eligible participating State under 
this paragraph; and 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(II) shall be available to the 
Secretary to make awards under para-
graph (4). 
‘‘(ii) OTHER AMOUNTS.—Effective on 
the date that is 2 years after the date of 
enactment of the Small Business Access to 
Capital Act of 2016, any amounts allo-
cated under this paragraph to a partici-
pating State that, as of such date, is not 
an eligible participating State or to an eli-
gible participating State that did not sub-
mit an application under subparagraph (B) 
or was not approved by the Secretary to 
receive an allocation under this para-
graph— 
‘‘(I) may not be transferred to an 
eligible participating State under this 
paragraph; and 
‘‘(II) shall be available to the 
Secretary to make awards under para-
graph (4). 
‘‘(3) COMPETITIVE FUNDING.— 
‘‘(A) IN GENERAL.—Of the amount made 
available under paragraph (6)(D), the Secretary 
may award, on a competitive basis, not more 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
than a total of $1,000,000,000 to participating 
States and consortiums of participating States 
for use for any purpose authorized under sub-
paragraph (A) or (B) of subsection (c)(3). 
‘‘(B) APPLICATION.— 
‘‘(i) IN
GENERAL.—A participating 
State or consortium of participating States 
desiring to receive an award under this 
paragraph shall submit an application— 
‘‘(I) not later than the date es-
tablished by the Secretary, which shall 
be not later than the date that is 1 
year after the date of enactment of 
the Small Business Access to Capital 
Act of 2016; and 
‘‘(II) in such manner and con-
taining such information as the Sec-
retary may require. 
‘‘(ii) NUMBER OF APPLICATIONS.—A 
participating State may submit not more 
than 1 application on behalf of the partici-
pating State and not more than 1 applica-
tion as part of a consortium of partici-
pating States. 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(iii) STATES THAT DID NOT PARTICI-
PATE.—A State that is not a participating 
State may apply to the Secretary for ap-
proval to be a participating State for pur-
poses of this paragraph and paragraph (4), 
in accordance with section 3004. 
‘‘(C) FACTORS.—In determining whether 
to make an award to a participating State or 
consortium of participating States under this 
paragraph, the Secretary shall consider— 
‘‘(i) how the participating State or 
consortium of participating States plan to 
use amounts provided under the award 
under the approved State program to— 
‘‘(I) leverage private sector cap-
ital; 
‘‘(II) create and retain jobs dur-
ing the 2-year period beginning on the 
date of the award; 
‘‘(III) serve small businesses that 
have been incorporated or in operation 
for not more than 5 years; 
‘‘(IV) serve low- or moderate-in-
come communities; and 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(V) serve minority- and women- 
owned small businesses; 
‘‘(ii) the extent to which the partici-
pating State or consortium of participating 
States will establish or continue a robust 
self-evaluation of the activities of the par-
ticipating State or consortium of partici-
pating States using amounts made avail-
able under this title; 
‘‘(iii) the extent to which the partici-
pating State or consortium of participating 
States will provide non-Federal funds in 
excess of the amount required under sub-
paragraph (E); and 
‘‘(iv) the extent to which the partici-
pating State expended, obligated, or trans-
ferred the 2010 allocation to the State. 
‘‘(D) AWARD OF FUNDS.— 
‘‘(i) 
FIRST
TRANCHE.—Notwith-
standing subsection (c)(1), and not later 
than 30 days after making an award under 
this paragraph to a participating State or 
consortium of participating States, the 
Secretary shall transfer 50 percent of the 
amount of the award to the participating 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
thorized under subparagraph (A) or (B) of sub-
section (c)(3). 
‘‘(B) UNUSED 2010 FUNDS.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall determine whether any amounts allo-
cated to a participating State under sub-
section (b) shall be deemed no longer allo-
cated and no longer available if a partici-
pating State has not certified to the Sec-
retary that the State has expended, trans-
ferred, or obligated 80 percent of the sec-
ond 1⁄3 of the 2010 allocation by December 
31, 2016. 
‘‘(ii) AVAILABILITY.—Effective on the 
date of the determination under clause (i), 
any amounts identified in the determina-
tion that were deemed no longer allocated 
and no longer available to the participating 
State shall be available to the Secretary to 
make awards under this paragraph. 
‘‘(C) APPLICATION.—A participating State 
desiring to receive an award under this para-
graph shall submit an application— 
‘‘(i) not later than 3 months after the 
date on which funds are deemed no longer 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
allocated and no longer available to any 
participating State; and 
‘‘(ii) in such manner and containing 
such information as the Secretary may re-
quire. 
‘‘(D) FACTORS.—In determining whether 
to make an award to a participating State 
under this paragraph, the Secretary shall con-
sider the factors described in paragraph (3)(C). 
‘‘(E) MINIMUM
AMOUNT.—The Secretary 
may not make an award of less than 
$5,000,000 under this paragraph. 
‘‘(5) EXTENSION OF COMPLIANCE AND REPORT-
ING.—Notwithstanding section 3007(d), a partici-
pating State that receives funds under paragraph 
(2), (3), or (4) shall submit quarterly and annual re-
ports containing the information described in section 
3007 until the end of the 8-year period beginning on 
the date of enactment of the Small Business Access 
to Capital Act of 2016. 
‘‘(6) 
ADMINISTRATION
AND
IMPLEMENTA-
TION.— 
‘‘(A) ADMINISTRATIVE
EXPENSES
FOR 
PARTICIPATING STATES.—A participating State 
may use not more than 3 percent of the amount 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
made available to the participating State under 
paragraph (2), (3), or (4) for administrative ex-
penses incurred by the participating State in 
implementing an approved State program. 
‘‘(B) CONTRACTING.—During the 1-year 
period beginning on the date of enactment of 
the Small Business Access to Capital Act of 
2016, and notwithstanding any other provision 
of law relating to public contracting, the Sec-
retary may enter into contracts to carry out 
this subsection. 
‘‘(C) AMOUNTS
NOT
ASSISTANCE.—Any 
amounts transferred to a participating State 
under paragraph (2), (3), or (4) shall not be 
considered assistance for purposes of subtitle V 
of title 31, United States Code. 
‘‘(D) APPROPRIATION.—There are appro-
priated to the Secretary, out of any funds in 
the 
Treasury 
not 
otherwise 
appropriated, 
$1,500,000,000 to carry out this subsection, in-
cluding to pay reasonable costs of administering 
the programs under this subsection, to remain 
available until expended. 
‘‘(E) TERMINATION OF SECRETARY’S PRO-
GRAM ADMINISTRATION FUNCTIONS.—The au-
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
thorities and duties of the Secretary to imple-
ment and administer the program under this 
subsection shall terminate at the end of the 8- 
year period beginning on the date of enactment 
of the Small Business Access to Capital Act of 
2016.’’. 
SEC. 3. IMPROVEMENTS TO THE STATE SMALL BUSINESS 
CREDIT INITIATIVE. 
The State Small Business Credit Initiative Act of 
2010 (12 U.S.C. 5701 et seq.) is amended— 
(1) in section 3002, by adding at the end the 
following: 
‘‘(15) DEPOSITORY
INSTITUTION.—The term 
‘depository institution’ means— 
‘‘(A) a depository institution, as defined 
under section 3 of the Federal Deposit Insur-
ance Act; and 
‘‘(B) a State credit union and a Federal 
credit union, as such terms are defined, respec-
tively, under section 101 of the Federal Credit 
Union Act. 
‘‘(16) MINORITY.—The term ‘minority’ has the 
meaning given that term under section 1204(c) of 
the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989. 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(17) MINORITY-OWNED
SMALL
BUSINESS.— 
The term ‘minority-owned small business’ means a 
small business with— 
‘‘(A) more than 50 percent of the owner-
ship or control of which is held by one or more 
minority individuals; and 
‘‘(B) more than 50 percent of the net prof-
it or loss of which accrues to one or more mi-
nority individuals. 
‘‘(18) MINORITY-OWNED DEPOSITORY INSTITU-
TION.—The term ‘minority-owned depository institu-
tion’ means a depository institution, if— 
‘‘(A) in the case of a privately owned insti-
tution, 51 percent or more of such institution is 
owned by one or more socially and economically 
disadvantaged individuals; 
‘‘(B) in the case of a publicly owned insti-
tution, 51 percent or more of the stock of such 
institution is owned by one or more socially and 
economically disadvantaged individuals; and 
‘‘(C) in the case of a mutual institution— 
‘‘(i) the board of directors and ac-
count holders of such institution are pre-
dominantly minority; and 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(ii) the community which the institu-
tion services is predominantly minority. 
‘‘(19) WOMEN-OWNED SMALL BUSINESS.—The 
term ‘women-owned small business’ means a small 
business with— 
‘‘(A) more than 50 percent of the owner-
ship or control of which is held by one or more 
women; and 
‘‘(B) more than 50 percent of the net prof-
it or loss of which accrues to one or more 
women.’’; 
(2) in section 3005(e)(8)— 
(A) by striking ‘‘, including’’ and inserting 
‘‘and’’; and 
(B) by adding at the end the following: 
‘‘The Secretary may not approve any State cap-
ital access program that fails to include a plan 
that promotes a fair share of the Federal con-
tributions to be used to strengthen and increase 
economic opportunities for small businesses in 
low- and moderate-income, minority, and other 
underserved communities and women- and mi-
nority-owned small businesses.’’; 
(3) in section 3006(d) is amended by adding at 
the end the following: 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
‘‘(6) The extent to which the State plans to use 
the Federal contributions to provide access to capital 
for small businesses in low- and moderate-income, 
minority, and other underserved communities and to 
women- and minority-owned small businesses, and 
the extent to which resulting small business lending 
will expand economic opportunities for such commu-
nities and such businesses.’’; 
(4) in section 3007(b)— 
(A) in paragraph (4), by striking ‘‘of each 
borrower that received such a new loan’’ and in-
serting ‘‘in which the borrower is headquartered 
and zip codes in which the borrower maintains 
significant operations’’; and 
(B) by adding at the end the following: 
‘‘(6) The race, ethnicity, and sex of the prin-
cipal owners of the borrowers and applicants, the 
number of applications and the date on which each 
application was received, the loan or type of invest-
ment being applied for, and the number of loans or 
applications that were approved and the date of such 
approval. In compiling and reporting the information 
required under this paragraph, a State may modify 
data which is or will be available to the public, if the 
State determines that the deletion or modification of 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
the data is necessary to protect the privacy interest 
of the borrower or applicant. 
‘‘(7) A summary of the extent to which the ap-
proved State program increased economic opportuni-
ties for small businesses in low- and moderate-in-
come, minority, and other underserved communities 
and women- and minority-owned small businesses, 
consistent with the plan delivered by the State pur-
suant to section 3005(e)(8). 
‘‘(8) The number of loans or investments by 
program type made by minority-owned depository in-
stitutions.’’; 
(5) in section 3009(a)— 
(A) by amending paragraph (1) to read as 
follows: 
‘‘(1) consult with the Director of the Office of 
Minority and Women Inclusion of the Departmental 
Offices of the Department of the Treasury, the Ad-
ministrator of the Small Business Administration, 
and the head of each of the appropriate Federal 
banking agencies (who shall each consult with the 
Director of the Office of Minority and Women Inclu-
sion of their agency), on the administration of the 
Program;’’; and 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS
(B) in paragraph (5), by inserting after 
‘‘performance,’’ the following: ‘‘efforts to ex-
pand economic opportunity for minority- and 
women-owned small businesses,’’; and 
(6) in section 3010— 
(A) by inserting after ‘‘in consultation 
with’’ the following: ‘‘the Director of the Office 
of Minority and Women Inclusion of the De-
partmental Offices of the Department of the 
Treasury and’’; and 
(B) by adding at the end the following: ‘‘In 
issuing such regulations the Secretary shall 
seek public input from community, civil rights, 
consumer advocates, small business advocates, 
and other interested or affected parties.’’. 
Æ 
VerDate Sep 11 2014 
00:40 Jul 12, 2016
Jkt 059200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6301
E:\BILLS\H5672.IH
H5672
rfrederick on DSK6VPTVN1PROD with BILLS