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PART IV—TIME FOR PAYMENT OF CORPORATE 
ESTIMATED TAXES 
SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED 
TAXES. 
The percentage under paragraph (2) of section 561 of 
the Hiring Incentives to Restore Employment Act in effect 
on the date of the enactment of this Act is increased by 
36 percentage points. 
TITLE III—STATE SMALL 
BUSINESS CREDIT INITIATIVE 
SEC. 3001. SHORT TITLE. 
This title may be cited as the ‘‘State Small Business 
Credit Initiative Act of 2010’’. 
SEC. 3002. DEFINITIONS. 
In this title, the following definitions shall apply: 
(1) APPROPRIATE COMMITTEES OF CONGRESS.— 
The term ‘‘appropriate committees of Congress’’ 
means— 
(A) the Committee on Small Business and 
Entrepreneurship, the Committee on Agriculture, 
Nutrition, and Forestry, the Committee on 
Banking, Housing, and Urban Affairs, the Com-
mittee on Finance, the Committee on the Budget, 
and the Committee on Appropriations of the 
Senate; and
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(B) the Committee on Small Business, the 
Committee on Agriculture, the Committee on Fi-
nancial Services, the Committee on Ways and 
Means, the Committee on the Budget, and the 
Committee on Appropriations of the House of 
Representatives. 
(2) APPROPRIATE FEDERAL BANKING AGENCY.— 
The term ‘‘appropriate Federal banking agency’’— 
(A) has the same meaning as in section 3(q) 
of the Federal Deposit Insurance Act (12 U.S.C. 
1813(q)); and 
(B) includes the National Credit Union Ad-
ministration Board in the case of any credit 
union the deposits of which are insured in ac-
cordance with the Federal Credit Union Act. 
(3) ENROLLED LOAN.—The term ‘‘enrolled loan’’ 
means a loan made by a financial institution lender 
that is enrolled by a participating State in an ap-
proved State capital access program in accordance 
with this title. 
(4) FEDERAL CONTRIBUTION.—The term ‘‘Fed-
eral contribution’’ means the portion of the contribu-
tion made by a participating State to, or for the ac-
count of, an approved State program that is made
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with Federal funds allocated to the State by the Sec-
retary under section 3003. 
(5) FINANCIAL INSTITUTION.—The term ‘‘finan-
cial institution’’ means any insured depository insti-
tution, insured credit union, or community develop-
ment financial institution, as those terms are each de-
fined in section 103 of the Riegle Community Devel-
opment and Regulatory Improvement Act of 1994 (12 
U.S.C. 4702). 
(6) PARTICIPATING STATE.—The term ‘‘partici-
pating State’’ means any State that has been ap-
proved for participation in the Program under sec-
tion 3004. 
(7) PROGRAM.—The term ‘‘Program’’ means the 
State Small Business Credit Initiative established 
under this title. 
(8) QUALIFYING LOAN OR SWAP FUNDING FACIL-
ITY.—The term ‘‘qualifying loan or swap funding fa-
cility’’ means a contractual arrangement between a 
participating State and a private financial entity 
under which— 
(A) the participating State delivers funds to 
the entity as collateral; 
(B) the entity provides funding from the ar-
rangement back to the participating State; and
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(C) the full amount of resulting funding 
from the arrangement, less any fees and other 
costs of the arrangement, is contributed to, or for 
the account of, an approved State program. 
(9) RESERVE FUND.—The term ‘‘reserve fund’’ 
means a fund, established by a participating State, 
dedicated to a particular financial institution lender, 
for the purposes of— 
(A) 
depositing 
all 
required 
premium 
charges paid by the financial institution lender 
and by each borrower receiving a loan under an 
approved State program from that financial in-
stitution lender; 
(B) depositing contributions made by the 
participating State, including State contribu-
tions made with Federal contributions; and 
(C) covering losses on enrolled loans by dis-
bursing accumulated funds. 
(10) STATE.—The term ‘‘State’’ means— 
(A) a State of the United States; 
(B) the District of Columbia, the Common-
wealth of Puerto Rico, the Commonwealth of 
Northern Mariana Islands, Guam, American 
Samoa, and the United States Virgin Islands;
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(C) when designated by a State of the 
United States, a political subdivision of that 
State that the Secretary determines has the ca-
pacity to participate in the Program; and 
(D) under the circumstances described in 
section 3004(d), a municipality of a State of the 
United States to which the Secretary has given 
a special permission under section 3004(d). 
(11) STATE
CAPITAL
ACCESS
PROGRAM.—The 
term ‘‘State capital access program’’ means a pro-
gram of a State that— 
(A) uses public resources to promote private 
access to credit; and 
(B) meets the eligibility criteria in section 
3005(c). 
(12) STATE
OTHER
CREDIT
SUPPORT
PRO-
GRAM.—The term ‘‘State other credit support pro-
gram’’— 
(A) means a program of a State that— 
(i) uses public resources to promote 
private access to credit; 
(ii) is not a State capital access pro-
gram; and 
(iii) meets the eligibility criteria in 
section 3006(c); and
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(B) includes, collateral support programs, 
loan participation programs, State-run venture 
capital fund programs, and credit guarantee 
programs. 
(13) STATE PROGRAM.—The term ‘‘State pro-
gram’’ means a State capital access program or a 
State other credit support program. 
(14) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
SEC. 3003. FEDERAL FUNDS ALLOCATED TO STATES. 
(a) PROGRAM ESTABLISHED; PURPOSE.—There is es-
tablished the State Small Business Credit Initiative, to be 
administered by the Secretary. Under the Program, the Sec-
retary shall allocate Federal funds to participating States 
and make the allocated funds available to the participating 
States as provided in this section for the uses described in 
this section. 
(b) ALLOCATION FORMULA.— 
(1) IN GENERAL.—Not later than 30 days after 
the date of enactment of this Act, the Secretary shall 
allocate Federal funds to participating States so that 
each State is eligible to receive an amount equal to 
the average of the respective amounts that the State— 
(A) would receive under the 2009 allocation, 
as determined under paragraph (2); and
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(B) would receive under the 2010 allocation, 
as determined under paragraph (3). 
(2) 2009 ALLOCATION FORMULA.— 
(A) IN GENERAL.—The Secretary shall de-
termine the 2009 allocation by allocating Fed-
eral funds among the States in the proportion 
that each such State’s 2008 State employment 
decline bears to the aggregate of the 2008 State 
employment declines for all States. 
(B) MINIMUM ALLOCATION.—The Secretary 
shall adjust the allocations under subparagraph 
(A) for each State to the extent necessary to en-
sure that no State receives less than 0.9 percent 
of the Federal funds. 
(C) 2008 STATE EMPLOYMENT DECLINE DE-
FINED.—In this paragraph and with respect to 
a State, the term ‘‘2008 State employment de-
cline’’ means the excess (if any) of— 
(i) the number of individuals employed 
in such State determined for December 
2007; over 
(ii) the number of individuals em-
ployed in such State determined for Decem-
ber 2008. 
(3) 2010 ALLOCATION FORMULA.—
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(A) IN GENERAL.—The Secretary shall de-
termine the 2010 allocation by allocating Fed-
eral funds among the States in the proportion 
that each such State’s 2009 unemployment num-
ber bears to the aggregate of the 2009 unemploy-
ment numbers for all of the States. 
(B) MINIMUM ALLOCATION.—The Secretary 
shall adjust the allocations under subparagraph 
(A) for each State to the extent necessary to en-
sure that no State receives less than 0.9 percent 
of the Federal funds. 
(C) 2009 
UNEMPLOYMENT
NUMBER
DE-
FINED.—In this paragraph and with respect to 
a State, the term ‘‘2009 unemployment number’’ 
means the number of individuals within such 
State who were determined to be unemployed by 
the Bureau of Labor Statistics for December 
2009. 
(c) AVAILABILITY
OF
ALLOCATED
AMOUNT.—The 
amount allocated by the Secretary to each participating 
State under subsection (b) shall be made available to the 
State as follows: 
(1) ALLOCATED
AMOUNT
GENERALLY
TO
BE 
AVAILABLE TO STATE IN ONE-THIRDS.— 
(A) IN GENERAL.—The Secretary shall—
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(i) apportion the participating State’s 
allocated amount into thirds; 
(ii) transfer to the participating State 
the first 1⁄3 when the Secretary approves the 
State for participation under section 3004; 
and 
(iii) transfer to the participating State 
each successive 1⁄3 when the State has cer-
tified to the Secretary that it has expended, 
transferred, or obligated 80 percent of the 
last transferred 1⁄3 for Federal contributions 
to, or for the account of, State programs. 
(B) AUTHORITY
TO
WITHHOLD
PENDING 
AUDIT.—The Secretary may withhold the trans-
fer of any successive 1⁄3 pending results of a fi-
nancial audit. 
(C) INSPECTOR GENERAL AUDITS.— 
(i) IN GENERAL.—The Inspector Gen-
eral of the Department of the Treasury shall 
carry out an audit of the participating 
State’s use of allocated Federal funds trans-
ferred to the State. 
(ii) RECOUPMENT OF MISUSED TRANS-
FERRED FUNDS REQUIRED.—The allocation 
agreement between the Secretary and the
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participating State shall provide that the 
Secretary shall recoup any allocated Fed-
eral funds transferred to the participating 
State if the results of the an audit include 
a finding that there was an intentional or 
reckless misuse of transferred funds by the 
State. 
(iii) PENALTY FOR MISSTATEMENT.— 
Any participating State that is found to 
have intentionally misstated any report 
issued to the Secretary under the Program 
shall be ineligible to receive any additional 
funds under the Program. Funds that had 
been allocated or that would otherwise have 
been allocated to such participating State 
shall be paid into the general fund of the 
Treasury for reduction of the public debt. 
(iv) MUNICIPALITIES.—In this sub-
paragraph, the term ‘‘participating State’’ 
shall include a municipality given special 
permission to participate in the Program, 
under section 3004(d). 
(D) EXCEPTION.—The Secretary may, in 
the Secretary’s discretion, transfer the full 
amount of the participating State’s allocated