SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Small Business Financing and Investment Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—SMALL BUSINESS LENDING ENHANCEMENTS 
Sec. 101. Small lender outreach program. 
Sec. 102. Rural lending outreach program. 
Sec. 103. Community Express Program made permanent. 
Sec. 104. Increased veteran participation program made permanent. 
Sec. 105. Leasing policy. 
Sec. 106. National lender training program. 
Sec. 107. Applications for repurchase of loans. 
Sec. 108. Alternative size standard. 
Sec. 109. Pilot program authority. 
Sec. 110. Loans to cooperatives. 
Sec. 111. Capital backstop program. 
Sec. 112. Loans to finance goodwill. 
Sec. 113. Appellate process and ombudsman. 
Sec. 114. Extension of recovery and relief loan benefits. 
Sec. 115. Reduced documentation for business stabilization loans. 
Sec. 116. Expanded eligibility for business stabilization loans. 
Sec. 117. Increased amount of business stabilization loans. 
Sec. 118. Extension of business stabilization loans. 
Sec. 119. Study and report on business stabilization loans. 
Sec. 120. Delayed repayment for small business concerns in areas with high un-
employment. 
Sec. 121. SBA secondary market lending authority made permanent. 
Sec. 122. SBA secondary market lending authority expanded. 
Sec. 123. Increased loan limits. 
Sec. 124. Real estate appraisals. 
Sec. 125. Additional support for Express Loan Program. 
Sec. 126. Loans used to purchase unoccupied manufacturing centers or equip-
ment. 
Sec. 127. 100 percent guarantee for small business concerns owned and con-
trolled by veterans. 
Sec. 128. Deferred repayment for certain small business concerns. 
Sec. 129. Authorization of appropriations. 
TITLE II—CDC ECONOMIC DEVELOPMENT LOAN PROGRAM 
Subtitle A—General Provisions 
Sec. 201. Program levels. 
Sec. 202. Definitions. 
Subtitle B—Certified Development Companies
Sec. 211. Certified development companies. 
Sec. 212. Certified development company; operational requirements. 
Sec. 213. Accredited lenders program. 
Sec. 214. Premier certified lender program. 
Sec. 215. Multi-State operations. 
Sec. 216. Guaranty of debentures. 
Sec. 217. Economic development through debentures. 
Sec. 218. Project funding requirements. 
Sec. 219. Private debenture sales and pooling of debentures. 
Sec. 220. Foreclosure and liquidation of loans. 
Sec. 221. Reports and regulations. 
Sec. 222. Program name. 
Subtitle C—Miscellaneous 
Sec. 231. Report on standard operating procedures. 
Sec. 232. Alternative size standard. 
TITLE III—MICROLENDING EXPANSION 
Sec. 301. Microloan credit building initiative. 
Sec. 302. Flexible credit terms. 
Sec. 303. Increased program participation. 
Sec. 304. Increased limit on intermediary borrowing. 
Sec. 305. Expanded borrower education assistance. 
Sec. 306. Young Entrepreneurs program. 
Sec. 307. Interest rates and loan size. 
Sec. 308. Reporting requirement. 
Sec. 309. Surplus interest rate subsidy for businesses. 
Sec. 310. Authorization of appropriations. 
TITLE IV—SMALL BUSINESS INVESTMENT COMPANY 
MODERNIZATION 
Sec. 401. Increased investment from States. 
Sec. 402. Expedited licensing for experienced applicants. 
Sec. 403. Revised leverage limitations for successful SBICs. 
Sec. 404. Consistency for cost control. 
Sec. 405. Investment in veteran-owned small businesses. 
Sec. 406. Tangible net worth. 
Sec. 407. Development of agency record. 
Sec. 408. Program levels. 
TITLE V—INVESTMENT IN SMALL MANUFACTURERS AND 
RENEWABLE ENERGY SMALL BUSINESSES 
Subtitle A—Enhanced New Markets Venture Capital Program 
Sec. 501. Expansion of New Markets Venture Capital Program. 
Sec. 502. Improved nationwide distribution. 
Sec. 503. Increased investment in small business concerns engaged primarily in 
manufacturing. 
Sec. 504. Expanded uses for operational assistance in manufacturing. 
Sec. 505. Updating definition of low-income geographic area. 
Sec. 506. Expanding operational assistance to conditionally approved compa-
nies. 
Sec. 507. Limitation on time for final approval.
Sec. 508. Streamlined application for New Markets Venture Capital Program. 
Sec. 509. Elimination of matching requirement. 
Sec. 510. Simplified formula for operational assistance grants. 
Sec. 511. Financing with respect to veterans. 
Sec. 512. Authorization of appropriations and enhanced allocation for small 
manufacturing. 
Subtitle B—Expanded Investment in Small Business Renewable Energy 
Sec. 521. Expanded investment in renewable energy. 
Sec. 522. Renewable Energy Capital Investment Program made permanent. 
Sec. 523. Expanded eligibility for small businesses. 
Sec. 524. Expanded uses for operational assistance in manufacturing and small 
businesses. 
Sec. 525. Expansion of Renewable Energy Capital Investment Program. 
Sec. 526. Simplified fee structure to expedite implementation. 
Sec. 527. Increased operational assistance grants. 
Sec. 528. Authorizations of appropriations. 
TITLE VI—SMALL BUSINESS HEALTH INFORMATION 
TECHNOLOGY FINANCING PROGRAM 
Sec. 601. Small business health information technology financing program. 
TITLE VII—SMALL BUSINESS EARLY-STAGE INVESTMENT 
PROGRAM 
Sec. 701. Small business early-stage investment program. 
Sec. 702. Prohibitions on earmarks. 
TITLE VIII—SBA DISASTER PROGRAM REFORM 
Sec. 801. Revised collateral requirements. 
Sec. 802. Increased limits. 
Sec. 803. Revised repayment terms. 
Sec. 804. Revised disbursement process. 
Sec. 805. Grant program. 
Sec. 806. Regional disaster working groups. 
Sec. 807. Outreach grants for loan applicant assistance. 
Sec. 808. Homeowners impacted by toxic drywall. 
Sec. 809. Authorization of appropriations. 
TITLE IX—REGULATIONS 
Sec. 901. Regulations. 
TITLE X—TEMPORARY EMPLOYEE SERVICES FRANCHISES 
Sec. 1001. Temporary employee services franchises. 
TITLE XI—STUDY ON PRIVATE SECTOR LENDING 
Sec. 1101. Study on private sector lending. 
TITLE XII—STUDY ON INCREASES IN CERTAIN CAPS 
Sec. 1201. Study on increases in certain caps. 
TITLE XIII—RURAL OUTREACH
Sec. 1301. Rural outreach. 
TITLE XIV—STUDY RELATING TO MEDICAL TECHNOLOGY 
Sec. 1401. Study relating to medical technology. 
TITLE XV—STUDY ON ADDITIONAL CREDIT RISK FACTORS 
Sec. 1501. Study on additional credit risk factors. 
TITLE I—SMALL BUSINESS 
LENDING ENHANCEMENTS 
SEC. 101. SMALL LENDER OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following: 
‘‘(34) SMALL LENDER OUTREACH PROGRAM.— 
The Administrator shall establish and carry out a 
program to provide support to regional, district, and 
branch offices of the Administration to assist small 
lenders, who do not participate in the Preferred 
Lenders Program, to participate in the programs 
under this subsection.’’. 
SEC. 102. RURAL LENDING OUTREACH PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(35) RURAL LENDING OUTREACH PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish and carry out a rural lending 
outreach program (hereinafter referred to in 
this paragraph as the ‘program’) to provide
loans under this subsection in accordance with 
this paragraph. 
‘‘(B) MAXIMUM
PARTICIPATION.—A loan 
under the program shall include the maximum 
participation levels by the Administrator per-
mitted for loans made under this subsection. 
‘‘(C) MAXIMUM LOAN AMOUNT.—The max-
imum amount of a loan under the program 
shall be $250,000. 
‘‘(D) USE OF RURAL LENDERS.—The pro-
gram shall be carried out through lenders lo-
cated in a rural area (as such term is defined 
under subsection (m)(11)(C)) or, if a small 
business concern located in a rural area does 
not have a lender located within 30 miles of the 
principal place of business of such concern, 
through any lender chosen by such concern that 
provides loans under this subsection. 
‘‘(E) TIME FOR APPROVAL.—The Adminis-
trator shall approve or disapprove a loan under 
the program within 36 hours. 
‘‘(F) 
DOCUMENTATION.—The 
program 
shall use abbreviated application and docu-
mentation requirements.
‘‘(G) 
CREDIT
STANDARDS.—Minimum 
credit standards, as the Administrator considers 
necessary to limit the rate of default on loans 
made under the program, shall apply.’’. 
SEC. 103. COMMUNITY EXPRESS PROGRAM MADE PERMA-
NENT. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(36) COMMUNITY EXPRESS PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall carry out a Community Express Program 
to provide loans under this subsection in ac-
cordance with this paragraph. 
‘‘(B) REQUIREMENTS.—For a loan made 
under the Community Express Program, the 
following shall apply: 
‘‘(i) The loan shall be in an amount 
not exceeding $250,000. 
‘‘(ii) The loan shall be made to a 
small business concern the majority owner-
ship interest of which is directly held by in-
dividuals the Administrator determines 
are, without regard to the geographic loca-
tion of such individuals, women, members
of qualified Indian tribes, socially or eco-
nomically disadvantaged individuals, vet-
erans, or members of the reserve compo-
nents of the Armed Forces. 
‘‘(iii) The loan shall comply with the 
collateral policy of the Administration. 
‘‘(iv) The loan shall include terms re-
quiring the lender to provide, at the ex-
pense of the lender, technical assistance to 
the borrower through the lender or a third- 
party provider. 
‘‘(v) The Administrator shall approve 
or disapprove the loan within 36 hours.’’. 
SEC. 104. INCREASED VETERAN PARTICIPATION PROGRAM 
MADE PERMANENT. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended— 
(1) by redesignating the second paragraph (32), 
as added by section 208 of the Military Reservist 
and Veteran Small Business Reauthorization and 
Opportunity Act of 2008 (Public Law 110–186; 122 
Stat. 631), as paragraph (33); and 
(2) in paragraph (33), as so redesignated by 
paragraph (1) of this section—
(A) by striking ‘‘pilot program’’ each place 
it appears and inserting ‘‘program’’; 
(B) by striking subparagraphs (C) and 
(F); and 
(C) by redesignating subparagraphs (D) 
and (E) as subparagraphs (C) and (D), respec-
tively. 
SEC. 105. LEASING POLICY. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
striking paragraph (28) and inserting the following: 
‘‘(28) LEASING.—If a loan under this sub-
section is used to acquire or construct a facility, the 
assisted small business concern— 
‘‘(A) shall permanently occupy and use not 
less than 50 percent of the space in such facil-
ity; and 
‘‘(B) may, on a temporary or permanent 
basis, lease to others not more than 50 percent 
of the space in such facility.’’. 
SEC. 106. NATIONAL LENDER TRAINING PROGRAM. 
(a) IN GENERAL.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)), as amended by this Act, is 
further amended by adding at the end the following:
‘‘(37) NATIONAL
LENDER
TRAINING
PRO-
GRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish and carry out, through the re-
gional offices of the Administration, a lender 
training program for new and existing lenders 
under this subsection with respect to the lend-
ing systems, policies, and procedures of the Ad-
ministration. 
‘‘(B) 
FEES.—The 
Administrator 
shall 
charge a fee for the program established under 
subparagraph (A) to reduce the cost of such 
program to zero. 
‘‘(C) LIMITATION.—The program estab-
lished under subparagraph (A) may not be car-
ried out by contract with a nongovernmental 
entity.’’. 
(b) PARTICIPATION.—An entity may not be permitted 
to participate in any program under the Small Business 
Act (15 U.S.C. 631 et seq.) or the Small Business Invest-
ment Act of 1958 (15 U.S.C. 661 et seq.) that is estab-
lished or amended under this Act, as a lending or invest-
ment entity or as an agent of the Small Business Adminis-
tration, unless such entity satisfies at least one of the fol-
lowing:
(1) The entity has as the primary mission of 
the entity the financing or development of small 
business concerns. 
(2) The entity is primarily engaged in the busi-
ness of banking, investing, or entrepreneurial devel-
opment and does not engage in activities which are 
not incidental to the business of banking, investing, 
or entrepreneurial development. 
SEC. 107. APPLICATIONS FOR REPURCHASE OF LOANS. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(38) APPLICATIONS
FOR
REPURCHASE
OF 
LOANS.— 
‘‘(A) IN
GENERAL.—Not later than 45 
days after the date of the receipt of a claim 
from a lender for proper payment of the guar-
anteed portion of a loan under this subsection 
due to default, the Administrator shall make a 
final determination with respect to the approval 
or denial of such claim. 
‘‘(B) LATE DETERMINATIONS.—If the Ad-
ministrator does not make a final determination 
under subparagraph (A) in the time period
specified in such subparagraph, the claim shall 
be approved and paid promptly. 
‘‘(C) If the lender demonstrates, with re-
spect to a claim for payment described in sub-
paragraph (A), that it followed the applicable 
requirements of the National Lender Training 
Program as established under paragraph (37) 
of this section, the Administrator shall pay the 
claim unless the Administrator has clear and 
convincing evidence demonstrating that the 
lender failed to comply with regulatory require-
ments established by the Administrator.’’. 
SEC. 108. ALTERNATIVE SIZE STANDARD. 
(a) IN GENERAL.—Section 3(a) of the Small Busi-
ness Act (15 U.S.C. 632(a)) is amended by adding at the 
end the following: 
‘‘(5) In addition to any other size standard 
under this subsection, the Administrator shall estab-
lish and permit a lender making a loan under section 
7(a) to use an alternative size standard. The alter-
native size standard shall be based on factors includ-
ing the maximum tangible net worth and average 
net income of a business concern.’’. 
(b) APPLICABILITY.—Until the Administrator estab-
lishes under section 3(a)(5) of the Small Business Act,
as added by subsection (a) of this section, an alternative 
size standard for use by a lender making a loan under 
section 7(a) of such Act, the alternative size standard in 
section 121.301(b) of title 13, Code of Federal Regula-
tions, shall apply in such a case. 
SEC. 109. PILOT PROGRAM AUTHORITY. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
striking paragraph (25) and inserting the following: 
‘‘(25) LIMITATION
ON
CONDUCTING
PILOT 
PROJECTS.— 
‘‘(A) LIMITATION ON NUMBER.—Not more 
than 10 percent of the total number of loans 
guaranteed in any fiscal year under this sub-
section may be awarded as part of a pilot pro-
gram. 
‘‘(B) DOLLAR LIMITATIONS.— 
‘‘(i) IN
GENERAL.—With respect to 
any pilot program under this subsection es-
tablished on or after the date of the enact-
ment of the Small Business Financing and 
Investment Act of 2009, no loan shall be 
made under such program if such loan 
would result in the total amount of loans 
made during a fiscal year under all such
programs to be in excess of 5 percent of 
the total amount of loans guaranteed in 
such fiscal year under this subsection. 
‘‘(ii) CERTAIN
PRE-EXISTING
PRO-
GRAMS.—With respect to any pilot pro-
gram under this subsection established be-
fore the date of the enactment of the Small 
Business Financing and Investment Act of 
2009, no loan shall be made under such 
program if such loan would result in the 
total amount of loans made during a fiscal 
year under all such programs to be in ex-
cess of 10 percent of the total amount of 
loans guaranteed in such fiscal year under 
this subsection. 
‘‘(C) EXPIRATION.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (iii), the duration of any 
pilot program under this subsection may 
not exceed 3 years. 
‘‘(ii) DESIGNATION
AS
NEW
PRO-
GRAM.—For purposes of this subpara-
graph, a pilot program shall not be treated 
as a new pilot program solely on the basis
of a modification or change in the pilot 
program, including the change of its name. 
‘‘(iii) EXISTING PROGRAMS.—With re-
spect to any pilot program in existence on 
the date of the enactment of the Small 
Business Financing and Investment Act of 
2009, such program may continue in effect 
for a period not exceeding 3 years after 
such date without regard to the duration 
of such program before such date. 
‘‘(D) REGULATIONS.— 
‘‘(i) IN
GENERAL.—With respect to 
each pilot program under this subsection, 
including each pilot program in existence 
on the date of the enactment of the Small 
Business Financing and Investment Act of 
2009, the Administrator shall— 
‘‘(I) issue regulations for such 
program after providing notice in the 
Federal Register and an opportunity 
for comment; and 
‘‘(II) ensure that such regula-
tions are published in the Code of 
Federal Regulations.
‘‘(ii) PILOT PROGRAMS ESTABLISHED 
AFTER
DATE
OF
ENACTMENT.—With re-
spect to any pilot program established 
after the date of the enactment of the 
Small Business Financing and Investment 
Act of 2009, such program shall not take 
effect until the requirements under this 
subparagraph are satisfied. 
‘‘(E) REPEAL
OF
AUTHORITY
TO
WAIVE 
CERTAIN RULES.— 
‘‘(i) IN
GENERAL.—Notwithstanding 
section 120.3 of title 13, Code of Federal 
Regulations, the Administrator may not 
from time to time suspend, modify, or 
waive rules for a limited period of time to 
test new programs or ideas with respect to 
this subsection, unless such suspension, 
modification, or waiver is explicitly author-
ized by Act of Congress. 
‘‘(ii) EXISTING
PILOT
PROGRAMS.— 
Nothing under clause (i) may be construed 
to affect a pilot program in existence on 
the date of the enactment of the Small 
Business Financing and Investment Act of 
2009.
‘‘(F) PILOT PROGRAM.—For purposes of 
this paragraph, the term ‘pilot program’ means 
any lending program initiative, project, innova-
tion, or other activity not specifically authorized 
by Act of Congress.’’. 
SEC. 110. LOANS TO COOPERATIVES. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(39) 
COOPERATIVES.—The 
Administration 
may provide loans under this subsection to any coop-
erative that— 
‘‘(A) is not organized as a tax-exempt enti-
ty; 
‘‘(B) is engaged in a legal business activ-
ity; 
‘‘(C) obtains financial benefits for the co-
operative and for the members of such coopera-
tive; and 
‘‘(D) is eligible under applicable size stand-
ards of the Administration, including that any 
business entity that is a member of such coop-
erative is eligible under applicable size stand-
ards of the Administration.’’.
SEC. 111. CAPITAL BACKSTOP PROGRAM. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(40) CAPITAL BACKSTOP PROGRAM.— 
‘‘(A) IN
GENERAL.—The Administrator 
shall establish a process under which a small 
business concern may submit an application to 
the Administrator for the purpose of securing a 
loan under this subsection. With respect to such 
application, the Administrator shall collect all 
information necessary to determine the credit-
worthiness and repayment ability of an appli-
cant and shall determine if such application 
meets the eligibility and credit standards that a 
lender would be required to apply to approve a 
loan under this subsection. 
‘‘(B) PARTICIPATION OF LENDERS.— 
‘‘(i) IN GENERAL.—The Administrator 
shall establish a process under which the 
Administrator makes available to lenders 
each loan application submitted and deter-
mined to meet basic eligibility and credit 
standards under subparagraph (A) for the 
purpose of such lenders originating, under-
writing, closing, and servicing the loan for 
which the applicant applied. 
‘‘(ii) ELIGIBILITY.—Lenders are eligi-
ble to receive a loan application described 
in clause (i) if they participate in the pro-
grams established under this subsection. 
‘‘(iii) LOCAL LENDERS.—The Admin-
istrator shall first make available a loan 
application described in clause (i) to lend-
ers within 100 miles of the principal office 
of the loan applicant. 
‘‘(iv) PREFERRED
LENDERS.—If a 
lender described in clause (iii) does not 
agree to originate, underwrite, close, and 
service the loan applied for within 5 busi-
ness days of receiving a loan application 
described in clause (i), the Administrator 
shall subsequently make available such 
loan application to lenders in the Preferred 
Lenders 
Program 
under 
paragraph 
(2)(C)(ii) of this subsection. 
‘‘(v) AUTHORITY OF ADMINISTRATION 
TO LEND.—If a lender described in clauses 
(iii) or (iv) does not agree to originate, un-
derwrite, close, and service the loan applied
for within 10 business days of receiving a 
loan application described in clause (i), the 
Administrator shall originate, underwrite, 
close, and service such loan. 
‘‘(C) ASSET
SALES.—The Administrator 
shall offer to sell loans made by the Adminis-
trator under this paragraph. Such sales shall be 
made through the semi-annual public solicita-
tion (in the Federal Register and in other 
media) of offers to purchase. The Administrator 
may contract with vendors for due diligence, 
asset valuation, and other services related to 
such sales. The Administrator may not sell any 
loan under this subparagraph for less than 90 
percent of the net present value of the loan, as 
determined and certified by a qualified third 
party. 
‘‘(D) LOANS
NOT
SOLD.—The Adminis-
trator shall maintain and service loans made by 
the Administrator under this paragraph that 
are not sold through the asset sales under this 
paragraph. 
‘‘(E) EFFECTIVE DATES.—This paragraph 
shall have effect on each date during the period 
beginning on the date of enactment of this
paragraph and ending on September 30, 2011, 
and on any other date after such period if— 
‘‘(i) such date occurs during a period 
that— 
‘‘(I) begins on the date the Bu-
reau of Economic Analysis, or any 
successor organization, makes a deter-
mination that the gross domestic 
product of the United States has de-
creased for three consecutive quarters; 
and 
‘‘(II) ends on the date the Bu-
reau of Economic Analysis, or any 
successor organization, makes a deter-
mination that the gross domestic 
product of the United States has in-
creased for two consecutive quarters; 
and 
‘‘(ii) the number of loans provided 
under this subsection prior to such date in 
the fiscal year including such date is at 
least 30 percent less than the number of 
such loans provided prior to the same point 
in the previous fiscal year.
‘‘(F) IMPLEMENTATION.—The Adminis-
trator shall establish a group of at least 250 in-
dividuals available to carry out activities under 
this paragraph on any date on which this para-
graph has effect under subparagraph (E). The 
Administrator shall provide to such group the 
training necessary to carry out activities under 
this paragraph. The Administrator shall ensure 
that each individual in such group with loan ap-
plication evaluation and underwriting respon-
sibilities has at least 2 years experience with re-
spect to such responsibilities. 
‘‘(G) APPLICATION
OF
OTHER
LAW.— 
Nothing in this paragraph shall be construed to 
exempt any activity of the Administrator under 
this paragraph from the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661 et seq.). 
‘‘(H) AUTHORIZATION
OF
APPROPRIA-
TIONS.— 
‘‘(i) PROGRAM LEVELS.—The Admin-
istrator is authorized to make loans under 
this paragraph in an amount that is equal 
to half the amount authorized for loans 
under this subsection other than loans 
under this paragraph.
‘‘(ii) AUTHORIZATION OF APPROPRIA-
TIONS.—In addition to amounts made 
available to carry out this subsection, there 
are authorized to be appropriated such 
sums as may be necessary to carry out this 
paragraph.’’. 
SEC. 112. LOANS TO FINANCE GOODWILL. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(41) GOODWILL.—The Administrator may not 
apply an application, processing, or approval stand-
ard to a loan for the purpose of financing goodwill 
under this subsection, unless such standard applies 
to all loans under this subsection.’’. 
SEC. 113. APPELLATE PROCESS AND OMBUDSMAN. 
The Small Business Act (15 U.S.C. 631 et seq.) is 
amended— 
(1) by redesignating section 44 as section 45; 
and 
(2) by inserting after section 43 the following: 
‘‘SEC. 44. APPELLATE PROCESS AND OMBUDSMAN. 
‘‘(a) APPELLATE PROCESS.— 
‘‘(1) IN GENERAL.—Not later than 270 days 
after the date of the enactment of the Small Busi-
ness Financing and Investment Act of 2009, the Ad-
ministrator shall establish an independent appellate 
process within the Administration. The process shall 
be available to review material determinations made 
by the Administration that affect a lender or invest-
ment company that participates or is applying to 
participate in a program administered by the Ad-
ministration. 
‘‘(2) REVIEW
PROCESS.—In establishing the 
independent appellate process under paragraph (1), 
the Administrator shall ensure that— 
‘‘(A) any appeal of a material determina-
tion by the Administration is heard and result-
ing recommendations are provided expedi-
tiously; and 
‘‘(B) appropriate safeguards exist for pro-
tecting the appellant from retaliation by Admin-
istration employees. 
‘‘(3) COMMENT PERIOD.—Not later than 180 
days after the date of the enactment of the Small 
Business Financing and Investment Act of 2009, the 
Administrator shall provide an opportunity for no-
tice and comment on proposed guidelines for the es-
tablishment of an independent appellate process 
under this section.
‘‘(b) AGENCY OMBUDSMAN.— 
‘‘(1) ESTABLISHMENT.—Not later than 180 
days after the date of the enactment of the Small 
Business Financing and Investment Act of 2009, the 
Administrator shall appoint an ombudsman. 
‘‘(2) DUTIES.—The ombudsman appointed in 
accordance with paragraph (1) shall— 
‘‘(A) act as a liaison between the Adminis-
tration and any lender or investment company 
that participates or is applying to participate in 
a program administered by the Administration 
with respect to a problem such entity may have 
in dealing with the Administration resulting 
from a material determination made by the Ad-
ministration; and 
‘‘(B) ensure that safeguards exist to en-
courage complainants to come forward and pre-
serve confidentiality. 
‘‘(c) OTHER AUTHORITY.—An individual carrying 
out the independent appellate process established under 
subsection (a) or the position of ombudsman established 
under subsection (b) is authorized to— 
‘‘(1) examine records and documents relating to 
a matter under review pursuant to such subsections; 
and
‘‘(2) initiate the review of a matter under such 
subsections if such individual believes that Adminis-
tration procedures have not been followed as in-
tended with respect to such matter, without regard 
to whether an appeal or complaint has been made. 
‘‘(d) LIMITATIONS.— 
‘‘(1) IN GENERAL.—An individual carrying out 
the independent appellate process established under 
subsection (a) or the position of ombudsman estab-
lished under subsection (b) may not, as a result of 
the authority provided under this section— 
‘‘(A) make, change, or set aside a law, pol-
icy, or administrative decision; 
‘‘(B) make binding decisions or determine 
rights; 
‘‘(C) directly compel an entity to imple-
ment the recommendations of such individual; 
or 
‘‘(D) accept jurisdiction over an issue that 
is pending in a legal forum. 
‘‘(2) RULE OF CONSTRUCTION.—Activities car-
ried out under this section may not be construed— 
‘‘(A) as a formal investigation, formal 
hearing, or binding decision;
‘‘(B) as limiting any remedy or right of ap-
peal; 
‘‘(C) as affecting any procedure concerning 
grievances, appeals, or administrative matters 
under law; or 
‘‘(D) as a substitute for an administrative 
or judicial proceeding. 
‘‘(e) REPORT.—Not later than one year after the date 
of the enactment of the Small Business Financing and In-
vestment Act of 2009 and annually thereafter, the Admin-
istrator shall submit to the Committee on Small Business 
of the House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate a re-
port describing and providing the status of appeals made 
under subsection (a) and complaints made under sub-
section (b). 
‘‘(f) DEFINITIONS.—In this section, the following 
apply: 
‘‘(1) MATERIAL
DETERMINATION.—The term 
‘material determination’ includes determinations re-
lating to— 
‘‘(A) applications for payment relating to a 
loan guarantee; and 
‘‘(B) the ability of an entity to participate 
in an Administration loan or investing program.
‘‘(2) INDEPENDENT
APPELLATE
PROCESS.— 
The term ‘independent appellate process’ means a 
review by an Administration official who does not di-
rectly or indirectly report to the Administration offi-
cial who made the material determination under re-
view.’’. 
SEC. 114. EXTENSION OF RECOVERY AND RELIEF LOAN 
BENEFITS. 
(a) FEE REDUCTIONS.—Section 501 of title V of di-
vision A of the American Recovery and Reinvestment Act 
of 2009 (Public Law 111–5) is amended— 
(1) in subsection (a) by striking ‘‘September 
30, 2010’’ and inserting ‘‘September 30, 2011’’; and 
(2) in subsection (c) by repealing paragraph 
(2). 
(b) ECONOMIC STIMULUS LENDING PROGRAM FOR 
SMALL BUSINESSES.—Section 502(f) of title V of division 
A of the American Recovery and Reinvestment Act of 
2009 (Public Law 111–5) is amended by striking ‘‘the 
date 12 months after the date of enactment of this Act’’ 
and inserting ‘‘September 30, 2011’’. 
SEC. 115. REDUCED DOCUMENTATION FOR BUSINESS STA-
BILIZATION LOANS. 
Section 506(a) of title V of division A of the Amer-
ican Recovery and Reinvestment Act of 2009 (Public Law
111–5) is amended by adding at the end the following: 
‘‘The Administrator shall give priority under such pro-
gram to small business concerns in a city with an unem-
ployment rate that is at least 125 percent of the unem-
ployment rate of the State that includes such city. In car-
rying out such program, the Administrator shall establish 
and utilize a one-page application for loans under this sec-
tion and shall authorize lenders to utilize the same docu-
mentation and procedural requirements for loans under 
this section as such lenders utilize for other loans of a 
similar size and type.’’. 
SEC. 116. EXPANDED ELIGIBILITY FOR BUSINESS STA-
BILIZATION LOANS. 
Section 506(c) of title V of division A of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111– 
5) is amended by striking ‘‘but shall not include’’ and all 
that follows through ‘‘enactment of this Act’’. 
SEC. 117. INCREASED AMOUNT OF BUSINESS STABILIZA-
TION LOANS. 
Section 506(d) of title V of division A of the Amer-
ican Recovery and Reinvestment Act of 2009 (Public Law 
111–5) is amended by striking ‘‘$35,000’’ and inserting 
‘‘$50,000 (except as provided under subsection (l))’’.
SEC. 118. EXTENSION OF BUSINESS STABILIZATION LOANS. 
Section 506(j) of title V of division A of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111– 
5) is amended by striking ‘‘September 30, 2010’’ and in-
serting ‘‘September 30, 2011’’. 
SEC. 119. STUDY AND REPORT ON BUSINESS STABILIZA-
TION LOANS. 
(a) STUDY.—The Administrator of the Small Busi-
ness Administration shall conduct a study on the business 
stabilization program established under section 506 of 
title V of division A of the American Recovery and Rein-
vestment Act of 2009 (Public Law 111–5), including— 
(1) how the program has been implemented; 
(2) the amount of time involved in processing 
applications; 
(3) the volume of applications received and the 
effect on application processing; 
(4) impediments to participation in the program 
by small business concerns and lenders; 
(5) courses of action that might expedite action 
by the Administrator on applications; 
(6) courses of action that might expand partici-
pation by such concerns and lenders; and 
(7) a cost benefit analysis with regard to 
changes to the program, including— 
(A) increases in loan limits;
(B) expanding eligibility requirements; 
(C) changes to interest rates to lenders; 
and 
(D) any other change the Administrator 
determines appropriate. 
(b) REPORT.—Not later than 90 days after the date 
of enactment of this Act, the Administrator of the Small 
Business Administration shall submit to Congress a report 
that includes— 
(1) the results of the study under subsection 
(a); and 
(2) recommendations on how to change the pro-
gram— 
(A) to expand participation by small busi-
ness concerns and lenders; and 
(B) to decrease the amount of time in-
volved in processing applications. 
(c) OUTREACH.—In conducting the study under sub-
section (a) and preparing the report under subsection (b), 
the Administrator of the Small Business Administration 
shall meet with and solicit the views of relevant stake-
holders, including lenders.
(2) by redesignating subsections (f), (h), and (i) 
as subsections (e), (f), and (g), respectively. 
SEC. 122. SBA SECONDARY MARKET LENDING AUTHORITY 
EXPANDED. 
Section 509 of title V of division A of the American 
Recovery and Reinvestment Act of 2009 (Public Law 111– 
5), as amended by this Act, is further amended— 
(1) in subsection (c)(1) by adding at the end 
the following: ‘‘Such process shall include the des-
ignation of each lender participating in a program 
under section 7(a) of the Small Business Act as a 
Systematically Important Secondary Market Broker- 
Dealer for purposes of this section.’’; and 
(2) in subsection (e), as so redesignated by sec-
tion 120 of this Act, by adding at the end the fol-
lowing: ‘‘To the extent that the cost of an elimi-
nation or reduction of fees is offset by appropria-
tions, the Administrator shall in lieu of the fee oth-
erwise applicable under this subsection collect no fee 
or reduce fees to the maximum extent possible.’’. 
SEC. 123. INCREASED LOAN LIMITS. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended— 
(1) in paragraph (2)(A)— 
(A) in clause (i)—
(i) by inserting after ‘‘$150,000’’ the 
following: ‘‘and is less than or equal to 
$2,000,000’’; and 
(ii) by striking ‘‘or’’ at the end; 
(B) in clause (ii) by striking the period at 
the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(iii) 50 percent of the balance of the 
financing outstanding at the time of dis-
bursement of the loan, if such balance ex-
ceeds $2,000,000.’’; and 
(2) 
in 
paragraph 
(3)(A) 
by 
striking 
‘‘$2,000,000’’ and inserting ‘‘$3,000,000’’. 
SEC. 124. REAL ESTATE APPRAISALS. 
Section 7(a)(29) of the Small Business Act (15 
U.S.C. 636(a)(29)) is amended— 
(1) in the matter preceding subparagraph (A) 
by striking ‘‘a State licensed or certified appraiser’’ 
and inserting ‘‘an appraiser licensed or certified by 
the State in which such property is located’’; 
(2) 
in 
subparagraph 
(A) 
by 
striking 
‘‘$250,000’’ and inserting ‘‘$400,000’’; and 
(3) 
in 
subparagraph 
(B) 
by 
striking 
‘‘$250,000’’ and inserting ‘‘$400,000’’.
SEC. 125. ADDITIONAL SUPPORT FOR EXPRESS LOAN PRO-
GRAM. 
Section 7(a)(18)(B) of the Small Business Act (15 
U.S.C. 636(a)(18)(B)) is amended by adding after ‘‘under 
subparagraph (A)(i)’’ the following: ‘‘, except that a lender 
making a loan under paragraph (31) may not retain any 
percentage of a fee collected under such subparagraph’’. 
SEC. 126. LOANS USED TO PURCHASE UNOCCUPIED MANU-
FACTURING CENTERS OR EQUIPMENT. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended by 
adding at the end the following: 
‘‘(42) LOANS USED TO PURCHASE UNOCCUPIED 
MANUFACTURING
CENTERS
OR
EQUIPMENT.—The 
Administration may provide loans under this sub-
section for the purchase of what the Administrator 
determines to be unoccupied manufacturing centers 
or equipment.’’. 
SEC. 127. 100 PERCENT GUARANTEE FOR SMALL BUSINESS 
CONCERNS OWNED AND CONTROLLED BY 
VETERANS. 
Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)), as amended by this Act, is further amended— 
(1) in paragraph (3)(A) by striking the semi-
colon at the end and inserting the following: ‘‘or in 
paragraph (42);’’; and
(2) by adding at the end the following: 
‘‘(42) 100 PERCENT GUARANTEE FOR SMALL 
BUSINESS CONCERNS OWNED AND CONTROLLED BY 
VETERANS.—Notwithstanding paragraph (2), in an 
agreement to participate in a loan on a deferred 
basis under this subsection with respect to a small 
business concern owned and controlled by veterans, 
participation by the Administrator may be equal to 
100 percent. The total amount outstanding and 
committed (by participation or otherwise) with re-
spect to a loan to such a small business concern 
from the business loan and investment fund estab-
lished by this Act may not exceed $3,000,000.’’. 
SEC. 128. DEFERRED REPAYMENT FOR CERTAIN SMALL 
BUSINESS CONCERNS. 
Section 7(a)(7) of the Small Business Act (15 U.S.C. 
636(a)(7)) is amended by adding at the end the following: 
‘‘If a small business concern classified in sector 23 of the 
North American Industry Classification System receives a 
loan under this subsection after the date of the enactment 
of the Small Business Financing and Investment Act of 
2009, such concern may defer repayment on such loan for 
a period of not more than 12 months beginning on the 
date that such concern receives the final disbursement of 
such loan.’’.
SEC. 129. AUTHORIZATION OF APPROPRIATIONS. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note) is amended by inserting after subsection (e) the fol-
lowing: 
‘‘(f) FISCAL YEARS 2010 AND 2011 WITH RESPECT 
TO SECTION 7(a).— 
‘‘(1) PROGRAM LEVELS.—For the programs au-
thorized by this Act, in each of fiscal years 2010 and 
2011 commitments for general business loans au-
thorized under section 7(a) may not exceed 
$20,000,000,000. 
‘‘(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as may be necessary to carry out paragraph (1).’’. 
TITLE II—CDC ECONOMIC 
DEVELOPMENT LOAN PROGRAM 
Subtitle A—General Provisions 
SEC. 201. PROGRAM LEVELS. 
Section 20 of the Small Business Act (15 U.S.C. 631 
note), as amended by this Act, is further amended by in-
serting after subsection (f) the following: 
‘‘(g) PROGRAM LEVELS WITH RESPECT TO CDC 
ECONOMIC DEVELOPMENT LOAN PROGRAM.— 
‘‘(1) FISCAL
YEAR
2010.—For financings au-
thorized by section 7(a)(13) of this Act and title V 
of the Small Business Investment Act of 1958, the
Administrator is authorized to make $9,000,000,000 
in guarantees of debentures for fiscal year 2010. 
‘‘(2) FISCAL
YEAR
2011.—For financings au-
thorized by section 7(a)(13) of this Act and title V 
of the Small Business Investment Act of 1958, the 
Administrator 
is 
authorized 
to 
make 
$10,000,000,000 in guarantees of debentures for fis-
cal year 2011.’’. 
SEC. 202. DEFINITIONS. 
Section 103 of the Small Business Investment Act 
of 1958 (5 U.S.C. 662) is amended as follows: 
(1) By amending paragraph (6) to read as fol-
lows: 
‘‘(6) the term ‘development company’ means 
any corporation organized in order to promote eco-
nomic development and the growth of small business 
concerns and includes companies chartered under a 
special State law authorizing them to operate on a 
statewide basis;’’. 
(2) By striking ‘‘and’’ at the end of paragraph 
(18), by striking the period at the end of paragraph 
(19) and inserting a semicolon, and by adding at the 
end the following new paragraphs: 
‘‘(20) the term ‘certified development company’ 
means a development company that the Adminis-
trator has determined meets the criteria set forth in 
section 501; 
‘‘(21) the term ‘local governmental entity’ 
means— 
‘‘(A) a State or a political subdivision of a 
State; or 
‘‘(B) a combination of political subdivisions 
which— 
‘‘(i) has been formed to promote eco-
nomic or community development; 
‘‘(ii) is composed of representatives of 
the State or a political subdivision acting 
in their official capacity; and 
‘‘(iii) includes an area in an adjacent 
State if it is part of a local economic area, 
a rural area, or has a population deter-
mined by the Administrator to be insuffi-
cient to support the formation of a sepa-
rate development company; 
such term includes entities meeting the require-
ments of clauses (i) through (iii), such as, but 
not limited to, a council of governments, re-
gional development corporation, regional plan-
ning commission, or economic development dis-
trict;
‘‘(22) the term ‘member’ means any person au-
thorized to vote for a director of a corporation or the 
dissolution or merger of a company (for purposes of 
this definition, a shareholder of a for-profit corpora-
tion shall be considered a member); 
‘‘(23) the terms ‘rural’ and ‘rural area’ shall 
have the same meaning as those terms are given in 
section 1991(a)(13)(A) of title 7, United States 
Code; and 
‘‘(24) the term ‘small manufacturer’ means a 
small business concern— 
‘‘(A) the primary business of which is clas-
sified in sector 31, 32, or 33 of the North 
American Industrial Classification System; and 
‘‘(B) all of the production facilities of 
which are located in the United States.’’. 
Subtitle B—Certified Development 
Companies 
SEC. 211. CERTIFIED DEVELOPMENT COMPANIES. 
Section 501 of the Small Business Investment Act 
of 1958 (15 U.S.C. 695) is amended to read as follows: 
‘‘SEC. 501. CERTIFIED DEVELOPMENT COMPANIES. 
‘‘(a) CERTIFIED DEVELOPMENT COMPANY DEBEN-
TURE AUTHORITY.—Only development companies cer-
tified by the Administrator shall have the authority to 
issue debentures under this Act. 
‘‘(b) CERTIFICATION STANDARDS.—A development 
company shall be certified for the purposes of issuing de-
bentures if the Administrator determines that it meets 
each of the following criteria: 
‘‘(1) SMALL CONCERN.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (C) of paragraph (2), the com-
pany, including its affiliates, shall have no more 
than 200 employees. 
‘‘(B) CONTROL.—Except as provided in 
paragraph (2) (B) or (C) the company shall not 
be under the control of any other concern. 
‘‘(C) NOT FOR PROFIT.—The development 
company is organized as a not-for-profit cor-
poration. 
‘‘(2) EXCEPTIONS.— 
‘‘(A) FOR PROFIT STATUS.—If a develop-
ment company was chartered as a for-profit 
corporation and issued debentures prior to Jan-
uary 1, 1987, the company shall not be re-
quired to change its status to not-for-profit in 
order to be certified.
‘‘(B) AFFILIATION
GRANDFATHER.—Any 
company that was authorized by the Adminis-
trator to issue debentures before December 31, 
2005, shall be eligible for certification without 
regard to its status as part of, or its affiliation 
with, any other not-for-profit corporation or 
local governmental entity unless that not-for- 
profit corporation or local governmental entity 
is another entity that issues debentures under 
this title. 
‘‘(C) AFFILIATION WITH LOCAL GOVERN-
MENTAL ENTITIES.—Any company that was or-
ganized after the date of enactment of the 
Small Business Financing and Investment Act 
of 2009 shall be eligible for certification without 
regard to its status as part of or affiliation with 
any local governmental entity. 
‘‘(3) GOOD
STANDING.—A development com-
pany shall be in good standing and comply with all 
laws, in every State in which it is incorporated or 
authorized to conduct business. 
‘‘(4) MEMBERSHIP.— 
‘‘(A) IN GENERAL.—The development com-
pany shall have at least 25 members.
‘‘(B) VOTING RIGHTS.—No member shall 
control more than 10 percent of the total voting 
power in the development company. 
‘‘(C) RESIDENCE.—Members must be resi-
dents of the State in which the development 
company is chartered or authorized to do busi-
ness. 
‘‘(D) DIVERSITY.—The development com-
pany must have at least one member from each 
of the following: 
‘‘(i) A local governmental entity. 
‘‘(ii) A financial institution subject to 
regulation by a Federal organization be-
longing to the Federal Financial Institu-
tions Examination Council and that pro-
vides long-term fixed asset financing in the 
commercial market. 
‘‘(iii) A not-for-profit organization, 
other than a development company, that is 
dedicated to promoting economic growth. 
‘‘(iv) A for-profit business, other than 
a financial institution described in clause 
(ii). 
‘‘(E) EMPLOYMENT STATUS.—Membership 
in a development company shall not be predi-
cated on employment status and an individual 
who retired from or was terminated (for rea-
sons other than fraud or the commission of a 
crime) from an entity described in subpara-
graph (D) shall be deemed to be from the orga-
nization described in that subparagraph. 
‘‘(5) BOARD OF DIRECTORS.— 
‘‘(A) IN GENERAL.—The development com-
pany’s board consists of members and each di-
rector receives a majority vote of the members 
unless the development company is a for-profit 
corporation in which case the board need not 
consist entirely of members. 
‘‘(B) BOARD
REPRESENTATION.—There 
shall be at least one director from not fewer 
than 3 of the 4 types of organizations specified 
in paragraph (4)(D) but no single type of orga-
nization shall have more than 50 percent rep-
resentation on the board of the development 
company. If the development company is a for- 
profit corporation, financial institution rep-
resentatives may make up more than 50 per-
cent of the board. 
‘‘(C) AFFILIATED
ENTITY
REPRESENTA-
TION RESTRICTIONS.—A development company
that is described in paragraph (1)(C) may have 
any or all of its board members appointed by 
entities affiliated with the company and may in-
clude common members who also serve on the 
affiliate’s board of directors if the appointment 
of board members was exercised by an affiliate 
prior to December 31, 2005. 
‘‘(D) SPECIAL RULE FOR CERTAIN DEVEL-
OPMENT COMPANIES.—The board of directors 
for any development company issuing deben-
tures before December 31, 2005, and incor-
porated under a State law requiring, or which 
is interpreted by the State’s legal department 
as imposing specific requirements on, the num-
ber and selection of members, board members, 
or both, and the rights and privileges conferred 
by such State law, may adhere to such provi-
sions. 
‘‘(6) 
PROFESSIONAL
MANAGEMENT
AND 
STAFF.— 
‘‘(A) IN GENERAL.—The development com-
pany shall have full-time independent profes-
sional management, including a chief executive 
officer to manage the daily operations and a
full-time professional staff qualified to carry out 
the functions authorized under this title. 
‘‘(B) UTILIZATION
OF
STAFF
FROM
AF-
FILIATED ENTITIES.—A development company 
shall not be denied certification under this sec-
tion if its chief executive or full-time profes-
sional staff is from an affiliated entity as de-
scribed in paragraph (1)(C). 
‘‘(C) STAFF UNDER CONTRACT.—The Ad-
ministrator shall not deny certification to a de-
velopment company that contracts for its full 
time staff if one of the following conditions is 
met: 
‘‘(i) The development company is lo-
cated in a rural area, obtains its staff 
through contract from another develop-
ment company that is certified by the Ad-
ministrator and that development company 
operates in the same or a contiguous 
State. 
‘‘(ii) The development company had 
issued debentures under this title prior to 
December 31, 2005, and had contracted 
with a for-profit business concern to pro-
vide staffing and management services.
‘‘(c) APPLICATIONS.— 
‘‘(1) DEVELOPMENT COMPANIES ISSUING DE-
BENTURES BEFORE SEPTEMBER 30, 2009.— 
‘‘(A) SHORT FORM APPLICATION.—(i) For 
any development company that issued deben-
tures pursuant to this title before September 
30, 2009, the Administrator shall develop, after 
an opportunity for notice and comment, no 
later than 90 days after the date of enactment 
of the Small Business Financing and Invest-
ment Act of 2009, a short-form application that 
contains sufficient information for the Adminis-
trator to determine that the development com-
pany currently meets the standards set forth in 
subsection (b). In developing such application, 
the Administrator shall be required to limit the 
amount of paperwork necessary to determine 
whether the development company meets the 
standards for certification and may limit the 
application to the filing of reports previously 
submitted to the Administrator. 
‘‘(ii) For those companies that obtain staff 
through contracts, the application shall include 
a copy of the contract.
‘‘(B) CERTIFICATION DECISION.—(i) The 
Administrator shall certify the development 
company if the application demonstrates that 
the applicant meets the standards in subsection 
(b). The decision to certify or not approve the 
request for certification shall be made within 7 
business days from the date the initial submis-
sion of the application is received by the Ad-
ministrator. If the Administrator takes no ac-
tion to approve or disapprove within 7 business 
days, the application for certification is deemed 
approved and no further action is required by 
the Administrator or the development company 
to obtain certification. If the Administrator dis-
approves the application, the Administrator 
shall provide in writing within 3 business days 
the reasons for the disapproval. If such docu-
ment is not provided within the time specified, 
the application is deemed approved and no fur-
ther action is required by the Administrator or 
the development company to obtain certifi-
cation. 
‘‘(ii) For those development companies 
that submit contracts under subparagraph 
(A)(ii), the Administrator is limited in rejecting
the application only if the Administrator finds 
that the entity servicing the applicant is no 
longer able to provide the employees or services 
needed by the applicant to perform the func-
tions that would be authorized under this title. 
‘‘(C) APPLICATION RESUBMITTAL.—If the 
Administrator disapproves the application for 
certification and provides a written statement 
as set forth in subparagraph (B), the develop-
ment company may file a new application lim-
ited solely to addressing the concerns of the Ad-
ministrator and the certification procedures set 
forth in subparagraph (B) shall recommence. 
‘‘(D) APPEALS.—If the Administrator dis-
approves an application in accordance with the 
procedures of subparagraphs (B) or (C), the 
applicant may, within 10 calendar days after 
receipt of the disapproval, appeal such dis-
approval. The Administrator shall conduct a 
hearing to determine such appeal pursuant to 
sections 554, 556, and 557 of title 5, United 
States Code, and shall issue a decision not later 
than 45 days after the appeal is filed. The deci-
sion on appeal shall constitute final agency ac-
tion for purposes of chapter 7 of title 5, United 
States Code. 
‘‘(E) GRANDFATHERING.— 
‘‘(i) IN GENERAL.—For the period 2 
years after date of enactment of the Small 
Business Financing and Investment Act of 
2009, any development company that was 
issuing debentures on or before the date 
set forth in this clause (i) shall be deemed 
to be a certified development company. 
‘‘(ii) COMPLETION
OF
APPLICATION 
PROCESS.—The procedures set forth in 
this paragraph for determining certifi-
cation shall apply to any development com-
pany meeting the qualifications of clause 
(i). 
‘‘(iii) EFFECT OF DENIAL.—The de-
nial or rejection of an application for cer-
tification as set forth in this subsection 
shall have no effect on the ability of a de-
velopment company meeting the qualifica-
tions in clause (i) from continuing to issue 
debentures during the entire two-year pe-
riod established in that clause.
‘‘(iv) FAILURE
TO
OBTAIN
CERTIFI-
CATION.—Any development company that 
fails to obtain certification in accordance 
with the procedures set forth in this para-
graph during the period set forth in clause 
(i) shall be considered to be a new develop-
ment company and the procedures of para-
graph (2) shall apply. The authority to 
issue debentures shall cease for any devel-
opment company covered by this subpara-
graph that has failed to obtain certification 
from the Administrator during the time 
period set forth in clause (i). 
‘‘(F) AUTOMATIC
QUALIFICATION
PROVI-
SION.—If the Administrator fails to implement 
the certification process set forth in this para-
graph, any development company that was 
issuing debentures before September 30, 2009, 
pursuant to this title shall be considered cer-
tified until such time as the Administrator de-
velops the certification procedures set forth in 
this paragraph. 
‘‘(G) SAVINGS CLAUSE.—Any action taken 
by a development company or the Administrator 
pursuant to this paragraph shall have no im-
pact on any guarantee of a debenture issued 
prior to the date of enactment of the Small 
Business Financing and Investment Act of 
2009. 
‘‘(2) APPLICATION PROCESS FOR NEW DEVEL-
OPMENT COMPANIES.— 
‘‘(A) IN GENERAL.—For any development 
company that has not issued debentures prior 
to September 30, 2009, the Administrator shall 
develop no later than 180 days after the date 
of enactment of the Small Business Financing 
and Investment Act of 2009, after an oppor-
tunity for notice and comment, an application 
form for certification that provides the Admin-
istrator with sufficient information to insure 
that the applicant meets the standards set forth 
in subsection (b). The Administrator shall cer-
tify such development company or reject the ap-
plication within 60 calendar days from the date 
the initial submission was received by the Ad-
ministrator. If the Administrator rejects the ap-
plication, the Administrator shall provide in 
writing within 7 business days after the deci-
sion, the reason for rejecting the application.
‘‘(B) APPEALS.—A development company 
shall be able to appeal the disapproval of an ap-
plication under the procedures set forth in 
paragraph (1)(D).’’. 
SEC. 212. CERTIFIED DEVELOPMENT COMPANY; OPER-
ATIONAL REQUIREMENTS. 
Section 502 of the Small Business Investment Act 
of 1958 (15 U.S.C. 696) is amended to read as follows: 
‘‘SEC. 502. OPERATIONAL REQUIREMENTS FOR CERTIFIED 
DEVELOPMENT COMPANIES. 
‘‘(a) MAINTENANCE OF STANDARDS FOR CERTIFI-
CATION.—Any company certified pursuant to section 501 
shall continue to comply with the requirements of that sec-
tion to remain certified. The Administrator shall develop 
a reporting form, which to the extent possible, incor-
porates other documents and reports already kept by cer-
tified development companies, demonstrating their contin-
ued compliance. The form shall be developed in a manner 
that the estimated time for completion shall take no more 
than 2 hours. 
‘‘(b) ETHICS AND CONFLICT OF INTERESTS.— 
‘‘(1) IN
GENERAL.—A certified development 
company, its officers, employees, and contractors 
shall act ethically and avoid activities which con-
stitute a conflict of interest or appear to constitute
a conflict of interest. For purposes of this sub-
section, conduct that is unethical includes, but is not 
limited to, the actions specified in section 120.140 of 
title 13, Code of Federal Regulations, as in effect on 
January 1, 2009. 
‘‘(2) BY ASSOCIATES.—An associate may not be 
an officer, director, or manager of more than 1 cer-
tified development company. The term ‘associate’ 
shall have the same meaning given the term ‘Asso-
ciate of a CDC’ in section 120.10 of title 13, Code 
of Federal Regulations, as in effect on January 1, 
2009. For the purposes of this subsection, 10 per-
cent shall be substituted wherever section 120.10 of 
title 13, Code of Federal Regulation uses 20 per-
cent. 
‘‘(3) BY ENTITIES.—Except as provided in sec-
tions 501(b)(5) and 501(b)(6), no person, sole pro-
prietorship, partnership, or corporation shall control 
or have managerial control of more than one cer-
tified development company. Control means any of 
the following: 
‘‘(A) The ability to appoint or remove a 
member of the company or member of its board 
of directors.
‘‘(B) The ability to modify or approve rate 
or fee changes affecting revenues of the cer-
tified development company. 
‘‘(C) The ability to veto, overrule, or mod-
ify decisions of the certified development com-
pany’s body. 
‘‘(D) The ability, either directly or contrac-
tually, to appoint, hire, reassign, or dismiss 
those managers and employees responsible for 
the daily operations of the certified development 
company. 
‘‘(E) The ability to access the certified de-
velopment company’s resources or amend its 
budget. 
‘‘(F) The ability to control another cer-
tified development company pursuant to provi-
sions in a contract. 
‘‘(c) MEETINGS.—The board of directors of the cer-
tified development company shall meet on a regular basis 
to make policy decisions for the company. 
‘‘(d) LOAN COMMITTEES.—The board of directors of 
a certified development company may use a loan com-
mittee to process loans in the State in which it operates 
as well as adjacent local economic areas. Members of the 
loan committee shall be residents of the certified develop-
ment company’s State of operation or the adjacent local 
economic area. Such loan committees shall meet on a peri-
odic basis as set forth by the board of directors. 
‘‘(e) PROHIBITED CONFLICT IN PROJECT LOANS.— 
‘‘(1) IN GENERAL.—Certified development com-
panies shall not recommend or approve a guarantee 
of a debenture that will be collateralized by property 
being constructed or acquired on which an institu-
tion, as provided in section 508(c)(1)(A), will have 
a first lien position. 
‘‘(2) EXCEPTION.—The prohibition in para-
graph (1) shall not apply to any certified develop-
ment company that was affiliated with or part of 
any entity that took a first lien position between Oc-
tober 1, 2003, and September 30, 2005. 
‘‘(f) AFFILIATION
WITH
LENDERS
OPERATING 
UNDER SECTION 7 OF THE SMALL BUSINESS ACT.— 
‘‘(1) PROHIBITION.—No certified development 
company may invest in, or be an affiliate of, a lender 
who participates in the loan programs authorized in 
sections 7(a) and 7(c) of the Small Business Act (15 
U.S.C. 636(a) and (c)). 
‘‘(2) EXCEPTION.—The prohibition in para-
graph (1) shall not apply to any certified develop-
ment company that is affiliated with an entity au-
thorized by the Administrator to operate under sec-
tion 7(a) of the Small Business Act if such affili-
ation occurred on or before November 6, 2003. 
‘‘(3) CREDIT UNION AFFILIATION.—A certified 
development company shall not lose its status due to 
an affiliation with an institution regulated by the 
National Credit Union Administration if the develop-
ment company was affiliated with such an institu-
tion prior to January 1, 2007. 
‘‘(g) SERVICING
AND
PACKAGING
GUARANTEED 
LOANS.—A certified development company is authorized 
to prepare applications for loans under sections 7(a) or 
7(c) of the Small Business Act (15 U.S.C. 636(a) or (c)), 
to service such loans, and to charge a reasonable fee for 
servicing such loans. 
‘‘(h) USE OF EXCESS FUNDS.—Any funds generated 
by a certified development company from the issuance of 
debentures under this title, the sale of debentures in the 
private secondary market, or fees described in subsection 
(g) that remain unexpended after payment of staff, oper-
ating, and overhead expenses shall be used by the certified 
development company for— 
‘‘(1) operating reserves; 
‘‘(2) expanding the area in which the certified 
development company operates through the methods
authorized in section 505 (relating to multi-State 
operation); 
‘‘(3) investment in other community and local 
economic development activity or community devel-
opment primarily in the State from which such 
funds were generated; or 
‘‘(4) investment in small business investment 
companies subject to the limitations in subsection 
(i). 
‘‘(i) LIMITATIONS WITH RESPECT TO SMALL BUSI-
NESS INVESTMENT COMPANIES.—A certified development 
company shall not— 
‘‘(1) invest excess funds in a small business in-
vestment company that the Administrator deter-
mines to be capitally impaired as set forth in section 
107.1830 of title 13, Code of Federal Regulations, 
as in effect on January 1, 2009, or any successor 
regulation to that regulation, but may maintain its 
investment in such company if such investment was 
made prior to the determination of capital impair-
ment; and 
‘‘(2) provide a debenture under this title to a 
small business concern that has financing with a 
small business investment company in which the cer-
tified development company has invested excess 
funds. 
‘‘(j) ECONOMIC DEVELOPMENT ACTIVITIES.—A com-
pany certified pursuant to this section shall carry out each 
of the following economic development activities that cre-
ate or preserve jobs in urban and rural areas: 
‘‘(1) The company shall provide long-term fi-
nancing to small business concerns through deben-
tures described in section 506. 
‘‘(2) The company shall operate any other pro-
gram to assist small business concerns or commu-
nities that promote local economic development and 
job creation or preservation. 
‘‘(k) RESTRICTIONS ON ASSISTANCE.— 
‘‘(1) IN GENERAL.—After the date of enact-
ment of the Small Business Financing and Invest-
ment Act of 2009, no certified development company 
may accept funding from any source, including any 
Federal agency (as that term is defined in section 
551 of title 5, United States Code) if the source im-
poses— 
‘‘(A) conditions on the types of small busi-
ness concerns that a certified development com-
pany may provide assistance to under this title; 
or
‘‘(B) conditions or requirements, directly 
or indirectly, upon any small business concern 
receiving assistance under this title. 
‘‘(2) EXCEPTION.—The conditions of subpara-
graphs (A) and (B) of paragraph (1) shall not apply 
if the source provides all of the financing that will 
be provided by the certified development company to 
the small business concern, provided further that 
any conditions or restrictions are limited solely to 
the financing provided by the source of funding. 
‘‘(l) REVOCATION AND SUSPENSION.—The Adminis-
trator may suspend or revoke a certified development com-
pany’s status if the Administrator determines, after a 
hearing on the record as set forth in sections 554, 556, 
and 557 of title 5, United States Code, that the certified 
development company no longer— 
‘‘(1) meets the eligibility criteria established 
under section 501 of this title; 
‘‘(2) satisfies the operational standards in this 
section; or 
‘‘(3) complies with the Administrator’s rules, 
regulations, or provisions of law. 
‘‘(m) EFFECT OF SUSPENSION OR REVOCATION.—A 
suspension or revocation under subsection (l) shall not af-
fect any outstanding debenture guarantee.’’.
SEC. 213. ACCREDITED LENDERS PROGRAM. 
Section 503 of the Small Business Investment of 
1958 (15 U.S.C. 697) is amended to read as follows: 
‘‘SEC. 503. ACCREDITED LENDERS PROGRAM. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN
GENERAL.—A certified development 
company may apply for status to become an accred-
ited certified development company if it meets the 
operational standards of section 502 and the criteria 
in subsection (b). 
‘‘(2) APPLICATION.—The Administrator shall, 
after opportunity for notice and comment, develop 
an application for certified development companies 
seeking to become accredited certified development 
companies. 
‘‘(3) PROCESSING OF APPLICATION.—The Ad-
ministrator shall make a determination within 30 
days after a complete application has been filed by 
the certified development company. 
‘‘(4) REAPPLICATION.—If the Administrator re-
jects the application, the Administrator shall provide 
in writing the reasons for the rejection. Any certified 
development company may reapply which will recom-
mence the processing time limits set forth in para-
graph (3), and such reapplication shall be limited to 
addressing the reasons for rejection. If the Adminis-
trator rejects a second application, that shall be con-
sidered final agency action for purposes of chapter 
7 of title 5, United States Code. 
‘‘(b) STANDARDS FOR ACCREDITED CERTIFIED DE-
VELOPMENT COMPANY PROGRAM.—The Administrator 
shall designate a certified development company as accred-
ited if it meets the following standards: 
‘‘(1) Has been a certified development company 
for not less than the preceding 12 months and has 
issued debentures as authorized under this title dur-
ing that time period. 
‘‘(2) Has well-trained, qualified personnel who 
are knowledgeable in the lending policies and proce-
dures for certified development companies. 
‘‘(3) Has the ability to process, close, and serv-
ice the loan issued under this title. 
‘‘(4) Has a loss rate on the company’s deben-
tures that is reasonable and acceptable to the Ad-
ministrator. 
‘‘(5) Has a history of submitting to the Admin-
istrator complete and accurate debenture guaranty 
application packages. 
‘‘(6) Has the ability to serve small business 
credit needs for financing plant and equipment as a 
certified development company.
‘‘(c) EXPEDITED PROCESSING OF GUARANTEE AP-
PLICATIONS.—The Administrator shall develop an expe-
dited procedure for processing a guarantee application or 
servicing action submitted by an accredited certified devel-
opment company. For purposes of this subsection, an ex-
pedited procedure is one that takes at least two business 
days less than the processing performed for certified devel-
opment companies that have not been accredited. 
‘‘(d) SUSPENSION OR REVOCATION OF ACCREDITED 
STATUS.—The Administrator may suspend or revoke a 
certified development company’s accredited status if the 
Administrator determines, after a hearing on the record 
as set forth in sections 554, 556, and 557 of title 5, 
United States Code, that the certified development com-
pany no longer meets the eligibility criteria established 
under this section (which shall not include a time limit 
on the term of the certified development company’s ac-
credited status) or failed to adhere to the Administrator’s 
rules, regulations, or is violating some other provision of 
law. Such suspension or revocation shall have no effect 
on the development company’s status as certified. 
‘‘(e) EFFECT OF SUSPENSION OR REVOCATION ON 
EXISTING GUARANTEES.—A suspension or revocation of 
accredited status shall not affect any outstanding deben-
ture guarantee.
‘‘(f) GRANDFATHER PROVISION.—Any certified de-
velopment company that was accredited by the date of en-
actment of the Small Business Financing and Investment 
Act of 2009 shall remain accredited for 24 months after 
that date. If the certified development company does not 
have an application for accreditation approved by the Ad-
ministrator within the 24 months, its accreditation stand-
ard shall lapse. 
‘‘(g) AUTOMATIC QUALIFICATION.— 
‘‘(1) IN GENERAL.—Until the Administrator de-
velops procedures for granting accredited status, any 
certified development company that was accredited 
as of the date of enactment of the Small Business 
Financing and Investment Act of 2009 shall be 
deemed to be accredited. 
‘‘(2) APPLICATIONS.—Any certified develop-
ment company that satisfies the provision of para-
graph (1) shall have 24 months in which to submit 
the application established by this section for accred-
ited status. 
‘‘(3) EFFECT WHILE APPLICATION PENDING.— 
The denial or rejection of an application for accred-
ited status as set forth in this section shall have no 
effect on the ability of a development company that 
meets the standard set forth in paragraph (1) from
maintaining its status during the 24 months speci-
fied in this subsection. 
‘‘(h) PROMULGATION
OF
ACCREDITING
STAND-
ARDS.—The Administrator shall develop standards for ac-
crediting, suspension, and revocation under the program 
established by this section only after notice and an oppor-
tunity for comment as set forth in section 553(b) of title 
5, United States Code. After the development of such 
standards, the Administrator shall publish such standards 
in the Code of Federal Regulations. 
‘‘(i) RULE OF CONSTRUCTION.—Any reference to the 
term ‘accredited lender’ in any provision of law enacted, 
or any regulation adopted, prior to the enactment of the 
Small Business Financing and Investment Act of 2009 
shall be deemed to be a reference to the term ‘accredited 
certified development company’.’’. 
SEC. 214. PREMIER CERTIFIED LENDER PROGRAM. 
Section 504 of the Small Business Investment Act 
of 1958 (15 U.S.C. 697a) is amended to read as follows: 
‘‘SEC. 504. PREMIER CERTIFIED LENDER PROGRAM. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) IN
GENERAL.—A certified development 
company accredited under section 503 may apply for 
status to become a premier certified development 
company.
‘‘(2) APPLICATION.—The Administrator shall, 
after opportunity for notice and comment, develop 
an application for accredited certified development 
companies seeking to become premier certified devel-
opment companies. 
‘‘(3) PROCESSING OF APPLICATION.—The Ad-
ministrator shall make a determination within 60 
days after a complete application has been filed by 
an accredited certified development company. 
‘‘(4) REAPPLICATION.—If the Administrator re-
jects the application, the Administrator shall provide 
in writing the reasons for the rejection. Any accred-
ited certified development company may reapply 
which will recommence the processing time limits set 
forth in paragraph (3), and such reapplication shall 
be limited to addressing the reasons for rejection. If 
the Administrator rejects a second application, that 
shall be considered final agency action for purposes 
of chapter 7 of title 5, United States Code. 
‘‘(b) STANDARDS FOR OBTAINING PREMIER CER-
TIFIED DEVELOPMENT COMPANY STATUS.—The Admin-
istrator shall designate an accredited certified develop-
ment company as a premier certified development com-
pany if the application submitted pursuant to subsection
(a) demonstrates that the accredited certified development 
company meets the following standards: 
‘‘(1) Has been an accredited certified develop-
ment company for at least 12 months. 
‘‘(2) Has submitted to the Administrator ade-
quately analyzed debenture guarantee applications. 
‘‘(3) Has closed, in a proper manner following 
the Administrator regulations, loans under this title. 
‘‘(4) Has serviced its loan portfolio in accord-
ance with the standards set by the Administrator. 
‘‘(5) Has established a loan loss reserve estab-
lished in accordance with this section that the Ad-
ministrator determines is sufficient to meet its obli-
gations to protect the Federal Government from the 
risk of loss on each debenture guaranteed under this 
section. 
‘‘(6) Has agreed, as part of the application and 
in order to protect the Federal Government against 
the risk of loss, to the following— 
‘‘(A) on account of a debenture, the pro-
ceeds of which were used to fund a loan ap-
proved prior to the date of enactment of the 
Small Business Financing and Investment Act 
of 2009, agrees to reimburse the Administrator 
for 10 percent of any loss sustained by the Ad-
ministrator as a result of a default by the com-
pany in the payment of principal or interest on 
a debenture issued by such company and guar-
anteed by the Administrator; 
‘‘(B) on account of a debenture, the pro-
ceeds of which were used to fund a loan ap-
proved prior to the date of enactment of the 
Small Business Financing and Investment Act 
of 2009 and which were issued during the pe-
riod in which the company had made a selection 
pursuant to section 508(c)(7) of the Small 
Business Investment Act of 1958, as in effect 
on the day before such date of enactment, 
agrees to reimburse the Administrator for 15 
percent of any loss sustained by the Adminis-
trator as a result of a default by the company 
in the payment of principal or interest on a de-
benture issued by such company and guaran-
teed by the Administrator; or 
‘‘(C) on account of a debenture, the pro-
ceeds of which are used to fund a loan approved 
on or after the date of enactment of the Small 
Business Financing and Investment Act of 
2009, upon closing, pay to the Administrator a
one-time participation fee in the amount equal 
to the higher of the following: 
‘‘(i) 0.25 percent of the amount of the 
debenture. 
‘‘(ii) A percent of the amount of the 
debenture equal to 10 percent of the 
amount of the company’s historic loss rate 
on debentures guaranteed under this sec-
tion as determined by the Administrator. 
The rate specified by this clause shall be 
determined annually based upon the com-
pany’s loan losses as of close of business 
on June 30 and notice of the determina-
tion shall be provided to each company not 
later than August 31. Such rate shall be 
applicable to loans approved during the fis-
cal year commencing after the determina-
tion is made and shall expire and have no 
further application after the end of such 
fiscal year. If no timely determination has 
been made prior to the commencement of 
a fiscal year, including the year of enact-
ment of the Small Business Financing and 
Investment Act of 2009, one may be made 
after the commencement and it shall be
applicable to loans approved during the 
balance of such fiscal year commencing 30 
days after notification to the development 
company involved. 
‘‘(c) SUSPENSION OR REVOCATION OF PREMIER STA-
TUS.—The Administrator may suspend or revoke an ac-
credited certified development company’s premier status 
if the Administrator determines, after a hearing on the 
record as set forth in sections 554, 556, and 557 of title 
5, United States Code, that the accredited certified devel-
opment company no longer meets the eligibility criteria for 
premier status as established under this section or failed 
to adhere to the Administrator’s rules, regulations, or is 
violating some other provision of law. Such revocation or 
suspension shall have no effect on its status as an accred-
ited certified development company. 
‘‘(d) LOAN LOSS RESERVE.— 
‘‘(1) ASSETS.—Each loan loss reserve main-
tained by the premier certified development company 
for loans made pursuant to the authority in sub-
section (g)(1) shall be comprised of— 
‘‘(A) segregated funds on deposit in an ac-
count or accounts with a federally insured de-
pository institution or institutions selected by 
the company, subject to a collateral assignment
in favor of, and in a format acceptable to, the 
Administrator that shall amount to 10 percent 
of the company’s exposure as determined pursu-
ant to subsection (b)(6); 
‘‘(B) irrevocable letter or letters of credit, 
with a collateral assignment in favor of, and a 
commercially reasonable format acceptable to, 
the Administrator; or 
‘‘(C) any combination of the assets de-
scribed in subparagraphs (A) and (B). 
‘‘(2) CONTRIBUTIONS.—The company shall 
make contributions to the loss reserve, either cash or 
letters of credit as provided above, in the following 
amounts and at the following intervals: 
‘‘(A) 50 percent when a debenture is 
closed. 
‘‘(B) 25 percent additional not later than 
1 year after a debenture is closed. 
‘‘(C) 25 percent additional not later than 
2 years after a debenture is closed. 
‘‘(3) REPLENISHMENT.—If a loss has been sus-
tained by the Administrator, any portion of the loss 
reserve, and other funds provided by the premier 
certified development company as necessary, may be 
used to reimburse the Administrator for the premier
certified development company conducted pursuant to sub-
section (e) in determining whether to suspend or revoke 
an accredited development company’s premier status. 
Such suspension or revocation shall have no effect on the 
development company’s status as an accredited certified 
development company. 
‘‘(i) EFFECT OF SUSPENSION OR REVOCATION.—A 
suspension or revocation of premier status shall not affect 
any outstanding debenture guarantee. 
‘‘(j) RULE OF CONSTRUCTION.—Any reference to the 
term ‘premier certified lender’ or ‘PCL’ in legislation en-
acted, or regulations adopted, prior to the enactment of 
the Small Business Financing and Investment Act of 2009 
shall be deemed to be a reference to the term ‘premier 
certified development company’.’’. 
SEC. 215. MULTI-STATE OPERATIONS. 
Section 505 of the Small Business Investment Act 
of 1958 (15 U.S.C. 697b) is amended to read as follows: 
‘‘SEC. 505. MULTI-STATE OPERATIONS. 
‘‘(a) AUTHORIZATION.—The Administrator shall per-
mit an accredited or premier certified development com-
pany to make loans or issue debentures in any State that 
is contiguous to the State of incorporation of that com-
pany only if the company—