I 
117TH CONGRESS 
2D SESSION 
H. R. 7874 
To amend the State Small Business Credit Initiative Act of 2010 to modify 
allocations under the State Small Business Credit Initiative, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 24, 2022 
Mr. PHILLIPS (for himself and Mr. GREEN of Texas) introduced the following 
bill; which was referred to the Committee on Financial Services 
A BILL 
To amend the State Small Business Credit Initiative Act 
of 2010 to modify allocations under the State Small 
Business Credit Initiative, 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 ‘‘SSBCI Improvement 
Act’’. 
SEC. 2. TECHNICAL AMENDMENTS TO THE STATE SMALL 
BUSINESS CREDIT INITIATIVE ACT OF 2010. 
(a) EXCEPTION
FOR ALLOCATED AMOUNTS LESS 
THAN OR EQUAL TO $1,000,000.— 
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(1) IN
GENERAL.—Section 3003(c)(1) of the 
State Small Business Credit Initiative Act of 2010 
(12 U.S.C. 5702(c)(1)) is amended— 
(A) in subparagraph (A)(i), by inserting ‘‘, 
except as provided in subparagraph (D)’’ before 
the semicolon at the end; and 
(B) by amending subparagraph (D) to 
read as follows: 
‘‘(D) EXCEPTIONS.—The Secretary— 
‘‘(i) may, in the Secretary’s discretion, 
transfer the full amount of the partici-
pating State’s allocated amount to the 
State in a single transfer if the partici-
pating State applies to the Secretary for 
approval to use the full amount of the allo-
cation as collateral for a qualifying loan or 
swap funding facility; and 
‘‘(ii) shall transfer the full amount of 
the participating State’s allocated amount, 
if such amount is less than or equal to 
$1,000,000, to the State in a single trans-
fer upon approval under section 3004 and 
subject to the requirements of paragraph 
(7).’’. 
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(2) USE
OF
TRANSFERRED
FUNDS.—Section 
3003(c)(3) of the State Small Business Credit Ini-
tiative Act of 2010 (12 U.S.C. 5702(c)(3)) is 
amended— 
(A) in subparagraph (C)— 
(i) by inserting ‘‘if the allocated 
amount under subsection (b) is greater 
than $1,000,000,’’ before ‘‘in the case of’’; 
and 
(ii) by striking ‘‘or’’ at the end; 
(B) in subparagraph (D)— 
(i) by inserting ‘‘if the allocated 
amount under subsection (b) is greater 
than $1,000,000,’’ before ‘‘in the case of’’; 
and 
(ii) by striking the period at the end 
and inserting ‘‘; or’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(E) if the allocated amount under sub-
section (b) is less than or equal to $1,000,000, 
for paying administrative costs incurred by the 
State in implementing an approved State pro-
gram in an amount not to exceed 3.6 percent 
of the allocated amount.’’. 
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(3) RECOUPMENT.—Section 3003(c) of the 
State Small Business Credit Initiative Act of 2010 
(12 U.S.C. 5702(c)) is amended by adding at the 
end the following new paragraph: 
‘‘(7) RECOUPMENT
OF
ALLOCATED
AMOUNTS 
FOR CERTAIN PARTICIPATING STATES.— 
‘‘(A) IN GENERAL.—With respect to a par-
ticipating State for which the Secretary allo-
cated an amount less than or equal to 
$1,000,000, the Secretary may recoup an 
amount of such State’s allocated amount as fol-
lows: 
‘‘(i) If, not later than the last day of 
the 3-year period beginning on the date of 
approval under section 3004, an amount 
equal to 80 percent of one-third of such al-
located amount has not been certified by 
the State as expended, obligated, or trans-
ferred, the amount recouped shall be equal 
to two-thirds of the such allocated amount. 
‘‘(ii) If, not later than the last day of 
the 6-year period beginning on the date of 
approval under section 3004, an amount 
equal to 80 percent of two-thirds of such 
allocated amount has not been certified by 
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the State as expended, obligated, or trans-
ferred, such amount shall be equal to one- 
third of the such allocated amount. 
‘‘(B) REALLOCATION.—Any amount re-
couped under this paragraph may be reallocated 
by the Secretary to a Tribal government that 
was not a participating State subject to 
recoupment under this paragraph. In making 
such a reallocation, the Secretary shall not take 
into account the specific allocation for Tribal 
governments 
described 
under 
subsection 
(b)(2)(D).’’. 
(4) APPLICABILITY.—The amendments made 
by this subsection shall apply with respect to an allo-
cation made to a participating State under the State 
Small Business Credit Initiative Act of 2010 (12 
U.S.C. 5701 et seq.) for fiscal year 2022 and each 
fiscal year thereafter. 
(b) EXTENSION OF CERTAIN PERIODS.—The State 
Small Business Credit Initiative Act of 2010 (12 U.S.C. 
5701 et seq.) is amended— 
(1) in section 3004(d)(2), by striking ‘‘12 
months’’ and inserting ‘‘18 months’’; 
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(2) in section 3007(d), by striking ‘‘the first 
March 31’’ and all the follows and inserting ‘‘March 
31, 2031.’’; and 
(3) in section 3009(c), by striking ‘‘7-year’’ and 
inserting ‘‘11-year’’. 
(c) TECHNICAL
AMENDMENT.—The State Small 
Business Credit Initiative Act of 2010 (12 U.S.C. 5701 
et seq.) is amended— 
(1) in section 3003(b)(2)— 
(A) by redesignating subparagraph (D) as 
subparagraph (E); and 
(B) by redesignating subparagraph (C) 
(relating to ‘‘Separate allocation for Tribal gov-
ernments’’) as subparagraph (D); and 
(2) in section 3003(c)(4)(B), by striking ‘‘sub-
section 
(b)(2)(C)’’ 
and 
inserting 
‘‘subsection 
(b)(2)(D)’’. 
Æ 
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