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have a meaningful amount of its own capital re-
sources at risk in the loan. 
(5) PREMIUM CHARGES MINIMUM AND MAXIMUM 
AMOUNTS.—The insurance premium charges payable 
to the reserve fund by the borrower and the financial 
institution lender shall be prescribed by the financial 
institution lender, within minimum and maximum 
limits that require that the sum of the insurance pre-
mium charges paid in connection with a loan by the 
borrower and the financial institution lender may not 
be less than 2 percent nor more than 7 percent of the 
amount of the loan enrolled in the approved State 
capital access program. 
(6) STATE CONTRIBUTIONS.—In enrolling a loan 
in an approved State capital access program, the 
participating State may make a contribution to the 
reserve fund to supplement Federal contributions 
made under this Program. 
(7) LOAN PURPOSE.— 
(A) PARTICULAR LOAN PURPOSE REQUIRE-
MENTS AND PROHIBITIONS.—In connection with 
the filing of a loan for enrollment in an ap-
proved State capital access program, the finan-
cial institution lender—
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(i) shall obtain an assurance from each 
borrower that— 
(I) the proceeds of the loan will be 
used for a business purpose; 
(II) the loan will not be used to 
finance such business activities as the 
Secretary, by regulation, may pro-
scribe as prohibited loan purposes for 
enrollment in an approved State cap-
ital access program; and 
(III) the borrower is not— 
(aa) an executive officer, di-
rector, or principal shareholder of 
the financial institution lender; 
(bb) a member of the imme-
diate family of an executive offi-
cer, director, or principal share-
holder of the financial institution 
lender; or 
(cc) a related interest of any 
such executive officer, director, 
principal shareholder, or member 
of the immediate family; 
(ii) shall provide assurances to the 
participating State that the loan has not
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been made in order to place under the pro-
tection of the approved State capital access 
program prior debt that is not covered 
under the approved State capital access 
program and that is or was owed by the 
borrower to the financial institution lender 
or to an affiliate of the financial institution 
lender; 
(iii) shall not allow the enrollment of 
a loan to a borrower that is a refinancing 
of a loan previously made to that borrower 
by the financial institution lender or an af-
filiate of the financial institution lender; 
and 
(iv) may include additional restric-
tions on the eligibility of loans or borrowers 
that are not inconsistent with the provisions 
and purposes of this title, including compli-
ance with all applicable Federal and State 
laws, regulations, ordinances, and Executive 
orders. 
(B) DEFINITIONS.—In this paragraph, the 
terms ‘‘executive officer’’, ‘‘director’’, ‘‘principal 
shareholder’’, ‘‘immediate family’’, and ‘‘related 
interest’’ refer to the same relationship to a fi-
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† HR 5297 EAS 
nancial institution lender as the relationship de-
scribed in part 215 of title 12 of the Code of Fed-
eral Regulations, or any successor to such part. 
(8) CAPITAL ACCESS FOR SMALL BUSINESSES IN 
UNDERSERVED
COMMUNITIES.—At the time that a 
State applies to the Secretary to have the State cap-
ital access program approved as eligible for Federal 
contributions, the State shall deliver to the Secretary 
a report stating how the State plans to use the Fed-
eral contributions to the reserve fund to provide access 
to capital for small businesses in low- and moderate- 
income, minority, and other underserved commu-
nities, including women- and minority-owned small 
businesses. 
SEC. 3006. APPROVING COLLATERAL SUPPORT AND OTHER 
INNOVATIVE CREDIT ACCESS AND GUAR-
ANTEE INITIATIVES FOR SMALL BUSINESSES 
AND MANUFACTURERS. 
(a) APPLICATION.—A participating State that estab-
lishes a new, or has an existing, credit support program 
that meets the eligibility criteria in subsection (c) may 
apply to the Secretary to have the State other credit support 
program approved as eligible for Federal contributions to, 
or for the account of, the State program.
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(b) APPROVAL.—The Secretary shall approve such 
State other credit support program as eligible for Federal 
contributions to, or for the account of, the program if— 
(1) the Secretary determines that the State satis-
fies the requirements of paragraphs (1) through (3) of 
section 3005(b); 
(2) the Secretary determines that the State other 
credit support program meets the eligibility criteria 
in subsection (c); 
(3) the Secretary determines the State other cred-
it support program to be eligible based on the addi-
tional considerations in subsection (d); and 
(4) within 9 months after the date of enactment 
of this Act, the State has filed with Treasury a com-
plete application for Treasury approval. 
(c) ELIGIBILITY CRITERIA FOR STATE OTHER CREDIT 
SUPPORT PROGRAMS.—For a State other credit support 
program to be approved under this section, that program 
shall be required to be a program of the State that— 
(1) can demonstrate that, at a minimum, $1 of 
public investment by the State program will cause 
and result in $1 of new private credit; 
(2) can demonstrate a reasonable expectation 
that, when considered with all other State programs 
of the State, such State programs together have the
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ability to use amounts of new Federal contributions 
to, or for the account of, all such programs in the 
State to cause and result in amounts of new small 
business lending at least 10 times the new Federal 
contribution amount; 
(3) for those State other credit support programs 
that provide their credit support through 1 or more 
financial institution lenders, requires the financial 
institution lenders to have a meaningful amount of 
their own capital resources at risk in their small 
business lending; and 
(4) uses Federal funds allocated under this title 
to extend credit support that— 
(A) targets an average borrower size of 500 
employees or less; 
(B) does not extend credit support to bor-
rowers that have more than 750 employees; 
(C) targets support towards loans with an 
average principal amount of $5,000,000 or less; 
and 
(D) does not extend credit support to loans 
that exceed a principal amount of $20,000,000. 
(d) ADDITIONAL CONSIDERATIONS.—In making a de-
termination that a State other credit support program is 
eligible for Federal contributions to, or for the account of,
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† HR 5297 EAS 
support program approved under this section will be eligi-
ble for receiving Federal contributions to, or for the account 
of, the State program in an amount consistent with the 
schedule describing the apportionment of allocated Federal 
funds among State programs delivered by the State to the 
Secretary under the allocation agreement. 
(f) MINIMUM PROGRAM REQUIREMENTS FOR STATE 
OTHER CREDIT SUPPORT PROGRAMS.— 
(1) FUND TO PRESCRIBE.—The Secretary shall, 
by regulation or other guidance, prescribe Program 
requirements for approved State other credit support 
programs. 
(2) CONSIDERATIONS FOR FUND.—In prescribing 
minimum Program requirements for approved State 
other credit support programs, the Secretary shall 
take into consideration, to the extent the Secretary de-
termines applicable and appropriate, the minimum 
Program requirements for approved State capital ac-
cess programs in section 3005(e). 
SEC. 3007. REPORTS. 
(a) QUARTERLY USE-OF-FUNDS REPORT.— 
(1) IN GENERAL.—Not later than 30 days after 
the beginning of each calendar quarter, beginning 
after the first full calendar quarter to occur after the 
date the Secretary approves a State for participation,
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the participating State shall submit to the Secretary 
a report on the use of Federal funding by the partici-
pating State during the previous calendar quarter. 
(2) REPORT CONTENTS.—Each report under this 
subsection shall— 
(A) indicate the total amount of Federal 
funding used by the participating State; and 
(B) include a certification by the partici-
pating State that— 
(i) the information provided in accord-
ance with subparagraph (A) is accurate; 
(ii) funds continue to be available and 
legally committed to contributions by the 
State to, or for the account of, approved 
State programs, less any amount that has 
been contributed by the State to, or for the 
account of, approved State programs subse-
quent to the State being approved for par-
ticipation in the Program; and 
(iii) the participating State is imple-
menting its approved State program or pro-
grams in accordance with this title and reg-
ulations issued under section 3010. 
(b) ANNUAL REPORT.—Not later than March 31 of 
each year, beginning March 31, 2011, each participating
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State shall submit to the Secretary an annual report that 
shall include the following information: 
(1) The number of borrowers that received new 
loans originated under the approved State program 
or programs after the State program was approved as 
eligible for Federal contributions. 
(2) The total amount of such new loans. 
(3) Breakdowns by industry type, loan size, an-
nual sales, and number of employees of the borrowers 
that received such new loans. 
(4) The zip code of each borrower that received 
such a new loan. 
(5) Such other data as the Secretary, in the Sec-
retary’s sole discretion, may require to carry out the 
purposes of the Program. 
(c) FORM.—The reports and data filed under sub-
sections (a) and (b) shall be in such form as the Secretary, 
in the Secretary’s sole discretion, may require. 
(d) TERMINATION OF REPORTING REQUIREMENTS.— 
The requirement to submit reports under subsections (a) 
and (b) shall terminate for a participating State with the 
submission of the completed reports due on the first March 
31 to occur after 5 complete 12-month periods after the 
State is approved by the Secretary to be a participating 
State.
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SEC. 3008. REMEDIES FOR STATE PROGRAM TERMINATION 
OR FAILURES. 
(a) REMEDIES.— 
(1) IN GENERAL.—If any of the events listed in 
paragraph (2) occur, the Secretary, in the Secretary’s 
discretion, may— 
(A) reduce the amount of Federal funds al-
located to the State under the Program; or 
(B) terminate any further transfers of allo-
cated amounts that have not yet been transferred 
to the State. 
(2) CAUSAL EVENTS.—The events referred to in 
paragraph (1) are— 
(A) termination by a participating State of 
its participation in the Program; 
(B) failure on the part of a participating 
State to submit complete reports under section 
3007 on a timely basis; or 
(C) noncompliance by the State with the 
terms of the allocation agreement between the 
Secretary and the State. 
(b) DEALLOCATED AMOUNTS TO BE REALLOCATED.— 
If, after 13 months, any portion of the amount of Federal 
funds allocated to a participating State is deemed by the 
Secretary to be no longer allocated to the State after actions 
taken by the Secretary under subsection (a)(1), the Sec-
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† HR 5297 EAS 
retary shall reallocate that portion among the participating 
States, excluding the State whose allocated funds were 
deemed to be no longer allocated, as provided in section 
3003(b). 
SEC. 3009. IMPLEMENTATION AND ADMINISTRATION. 
(a) GENERAL AUTHORITIES AND DUTIES.—The Sec-
retary shall— 
(1) consult with the Administrator of the Small 
Business Administration and the appropriate Federal 
banking agencies on the administration of the Pro-
gram; 
(2) establish minimum national standards for 
approved State programs; 
(3) provide technical assistance to States for 
starting State programs and generally disseminate 
best practices; 
(4) manage, administer, and perform necessary 
program integrity functions for the Program; and 
(5) ensure adequate oversight of the approved 
State programs, including oversight of the cash flows, 
performance, and compliance of each approved State 
program. 
(b) APPROPRIATIONS.—There is hereby appropriated 
to the Secretary, out of funds in the Treasury not otherwise 
appropriated, $1,500,000,000 to carry out the Program, in-
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† HR 5297 EAS 
cluding to pay reasonable costs of administering the Pro-
gram. 
(c) TERMINATION OF SECRETARY’S PROGRAM ADMIN-
ISTRATION FUNCTIONS.—The authorities and duties of the 
Secretary to implement and administer the Program shall 
terminate at the end of the 7-year period beginning on the 
date of enactment of this Act. 
(d) EXPEDITED CONTRACTING.—During the 1-year pe-
riod beginning on the date of enactment of this Act, the 
Secretary may enter into contracts without regard to any 
other provision of law regarding public contracts, for pur-
poses of carrying out this title. 
SEC. 3010. REGULATIONS. 
The Secretary, in consultation with the Administrator 
of the Small Business Administration, shall issue such regu-
lations and other guidance as the Secretary determines nec-
essary or appropriate to implement this title including to 
define terms, to establish compliance and reporting require-
ments, and such other terms and conditions necessary to 
carry out the purposes of this title. 
SEC. 3011. OVERSIGHT AND AUDITS. 
(a) INSPECTOR GENERAL OVERSIGHT.—The Inspector 
General of the Department of the Treasury shall conduct, 
supervise, and coordinate audits and investigations of the 
use of funds made available under the Program.
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(b) GAO AUDIT.—The Comptroller General of the 
United States shall perform an annual audit of the Pro-
gram and issue a report to the appropriate committees of 
Congress containing the results of such audit. 
(c) REQUIRED CERTIFICATION.— 
(1) FINANCIAL INSTITUTIONS CERTIFICATION.— 
With respect to funds received by a participating 
State under the Program, any financial institution 
that receives a loan, a loan guarantee, or other finan-
cial assistance using such funds after the date of the 
enactment of this Act shall certify that such institu-
tion is in compliance with the requirements of section 
103.121 of title 31, Code of Federal Regulations, a 
regulation that, at a minimum, requires financial in-
stitutions, as that term is defined in section 5312 
(a)(2) and (c)(1)(A) of title 31, United States Code, 
to implement reasonable procedures to verify the iden-
tity of any person seeking to open an account, to the 
extent reasonable and practicable, maintain records of 
the information used to verify the person’s identity, 
and determine whether the person appears on any 
lists of known or suspected terrorists or terrorist orga-
nizations provided to the financial institution by any 
government agency.
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(2) SEX OFFENSE CERTIFICATION.—With respect 
to funds received by a participating State under the 
Program, any private entity that receives a loan, a 
loan guarantee, or other financial assistance using 
such funds after the date of the enactment of this Act 
shall certify to the participating State that the prin-
cipals of such entity have not been convicted of a sex 
offense against a minor (as such terms are defined in 
section 111 of the Sex Offender Registration and Noti-
fication Act (42 U.S.C. 16911)). 
(d) PROHIBITION
ON PORNOGRAPHY.—None of the 
funds made available under this title may be used to pay 
the salary of any individual engaged in activities related 
to the Program who has been officially disciplined for viola-
tions of subpart G of the Standards of Ethical Conduct for 
Employees 
of 
the 
Executive 
Branch 
for 
viewing, 
downloading, or exchanging pornography, including child 
pornography, on a Federal Government computer or while 
performing official Federal Government duties.
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TITLE IV—ADDITIONAL SMALL 
BUSINESS PROVISIONS 
Subtitle A—Small Business Lending 
Fund 
SEC. 4101. PURPOSE. 
The purpose of this subtitle is to address the ongoing 
effects of the financial crisis on small businesses by pro-
viding temporary authority to the Secretary of the Treasury 
to make capital investments in eligible institutions in order 
to increase the availability of credit for small businesses. 
SEC. 4102. DEFINITIONS. 
For purposes of this subtitle: 
(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 
(B) the Committee on Small Business, the 
Committee on Agriculture, the Committee on Fi-
nancial Services, the Committee on Ways and
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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’’ has 
the meaning given such term under section 3(q) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(q)). 
(3) BANK HOLDING COMPANY.—The term ‘‘bank 
holding company’’ has the meaning given such term 
under section 2(a)(1) of the Bank Holding Company 
Act of 1956 (12 U.S.C. 1841(2)(a)(1)). 
(4) CALL
REPORT.—The term ‘‘call report’’ 
means— 
(A) reports of Condition and Income sub-
mitted to the Office of the Comptroller of the 
Currency, the Board of Governors of the Federal 
Reserve System, and the Federal Deposit Insur-
ance Corporation; 
(B) the Office of Thrift Supervision Thrift 
Financial Report; 
(C) any report that is designated by the Of-
fice of the Comptroller of the Currency, the 
Board of Governors of the Federal Reserve Sys-
tem, the Federal Deposit Insurance Corporation, 
or the Office of Thrift Supervision, as applicable,
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as a successor to any report referred to in sub-
paragraph (A) or (B); 
(D) reports of Condition and Income as des-
ignated through guidance developed by the Sec-
retary, in consultation with the Director of the 
Community Development Financial Institutions 
Fund; and 
(E) with respect to an eligible institution 
for which no report exists that is described under 
subparagraph (A), (B), (C), or (D), such other 
report or set of information as the Secretary, in 
consultation with the Administrator of the Small 
Business Administration, may prescribe. 
(5) CDCI.—The term ‘‘CDCI’’ means the Com-
munity Development Capital Initiative created by the 
Secretary under the Troubled Asset Relief Program 
established by the Emergency Economic Stabilization 
Act of 2008. 
(6) CDCI INVESTMENT.—The term ‘‘CDCI in-
vestment’’ means, with respect to any eligible institu-
tion, the principal amount of any investment made 
by the Secretary in such eligible institution under the 
CDCI that has not been repaid. 
(7) CDFI; COMMUNITY DEVELOPMENT FINANCIAL 
INSTITUTION.—The terms ‘‘CDFI’’ and ‘‘community
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† HR 5297 EAS 
development financial institution’’ have the meaning 
given the term ‘‘community development financial in-
stitution’’ under the Riegle Community Development 
and Regulatory Improvement Act of 1994. 
(8) CDLF; COMMUNITY
DEVELOPMENT
LOAN 
FUND.—The terms ‘‘CDLF’’ and ‘‘community devel-
opment loan fund’’ mean any entity that— 
(A) is certified by the Department of the 
Treasury as a community development financial 
institution loan fund; 
(B) is exempt from taxation under the In-
ternal Revenue Code of 1986; and 
(C) had assets less than or equal to 
$10,000,000,000 as of the end of the fourth quar-
ter of calendar year 2009. 
(9) CPP.—The term ‘‘CPP’’ means the Capital 
Purchase Program created by the Secretary under the 
Troubled Asset Relief Program established by the 
Emergency Economic Stabilization Act of 2008. 
(10) CPP INVESTMENT.—The term ‘‘CPP invest-
ment’’ means, with respect to any eligible institution, 
the principal amount of any investment made by the 
Secretary in such eligible institution under the CPP 
that has not been repaid.
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(11) ELIGIBLE INSTITUTION.—The term ‘‘eligible 
institution’’ means— 
(A) any insured depository institution, 
which— 
(i) is not controlled by a bank holding 
company or savings and loan holding com-
pany that is also an eligible institution; 
(ii) has total assets of equal to or less 
than $10,000,000,000, as reported in the 
call report of the insured depository institu-
tion as of the end of the fourth quarter of 
calendar year 2009; and 
(iii) is not directly or indirectly con-
trolled by any company or other entity that 
has total consolidated assets of more than 
$10,000,000,000, as so reported; 
(B) any bank holding company which has 
total consolidated assets of equal to or less than 
$10,000,000,000, as reported in the call report of 
the bank holding company as of the end of the 
fourth quarter of calendar year 2009; 
(C) any savings and loan holding company 
which has total consolidated assets of equal to or 
less than $10,000,000,000, as reported in the call 
report of the savings and loan holding company
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† HR 5297 EAS 
as of the end of the fourth quarter of calendar 
year 2009; and 
(D) any community development financial 
institution loan fund which has total assets of 
equal to or less than $10,000,000,000, as re-
ported in audited financial statements for the 
fiscal year of the community development finan-
cial institution loan fund that ends in calendar 
year 2009. 
(12) FUND.—The term ‘‘Fund’’ means the Small 
Business Lending Fund established under section 
4103(a)(1). 
(13) INSURED
DEPOSITORY
INSTITUTION.—The 
term ‘‘insured depository institution’’ has the mean-
ing given such term under section 3(c)(2) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813(c)(2)). 
(14) 
MINORITY-OWNED
AND
WOMEN-OWNED 
BUSINESS.—The terms ‘‘minority-owned business’’ 
and ‘‘women-owned business’’ shall have the meaning 
given the terms ‘‘minority-owned business’’ and 
‘‘women’s 
business’’, 
respectively, 
under 
section 
21A(r)(4) of the Federal Home Loan Bank Act (12 
U.S.C. 1441A(r)(4)).
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† HR 5297 EAS 
(15) PROGRAM.—The term ‘‘Program’’ means the 
Small Business Lending Fund Program authorized 
under section 4103(a)(2). 
(16) SAVINGS AND LOAN HOLDING COMPANY.— 
The term ‘‘savings and loan holding company’’ has 
the 
meaning 
given 
such 
term 
under 
section 
10(a)(1)(D) of the Home Owners’ Loan Act (12 
U.S.C. 1467a(a)(1)(D)). 
(17) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of the Treasury. 
(18) SMALL BUSINESS LENDING.— 
(A) IN GENERAL.—The term ‘‘small busi-
ness lending’’ means lending, as defined by and 
reported in an eligible institutions’ quarterly call 
report, where each loan comprising such lending 
is one of the following types: 
(i) Commercial and industrial loans. 
(ii) Owner-occupied nonfarm, nonresi-
dential real estate loans. 
(iii) Loans to finance agricultural pro-
duction and other loans to farmers. 
(iv) Loans secured by farmland. 
(B) EXCLUSION.—No loan that has an 
original amount greater than $10,000,000 or 
that goes to a business with more than
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† HR 5297 EAS 
$50,000,000 in revenues shall be included in the 
measure. 
(C) TREATMENT OF HOLDING COMPANIES.— 
In the case of eligible institutions that are bank 
holding companies or savings and loan holding 
companies having one or more insured deposi-
tory institution subsidiaries, small business lend-
ing shall be measured based on the combined 
small business lending reported in the call report 
of the insured depository institution subsidiaries. 
(19) VETERAN-OWNED BUSINESS.— 
(A) The term ‘‘veteran-owned business’’ 
means a business— 
(i) more than 50 percent of the owner-
ship or control of which is held by 1 or 
more veterans; 
(ii) more than 50 percent of the net 
profit or loss of which accrues to 1 or more 
veterans; and 
(iii) a significant percentage of senior 
management positions of which are held by 
veterans. 
(B) For purposes of this paragraph, the 
term ‘‘veteran’’ has the meaning given such term 
in section 101(2) of title 38, United States Code.
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SEC. 4103. SMALL BUSINESS LENDING FUND. 
(a) FUND AND PROGRAM.— 
(1) FUND ESTABLISHED.—There is established in 
the Treasury of the United States a fund to be known 
as the ‘‘Small Business Lending Fund’’, which shall 
be administered by the Secretary. 
(2) PROGRAMS AUTHORIZED.—The Secretary is 
authorized to establish the Small Business Lending 
Fund Program for using the Fund consistent with 
this subtitle. 
(b) USE OF FUND.— 
(1) IN GENERAL.—Subject to paragraph (2), the 
Fund shall be available to the Secretary, without fur-
ther appropriation or fiscal year limitation, for the 
costs of purchases (including commitments to pur-
chase), and modifications of such purchases, of pre-
ferred stock and other financial instruments from eli-
gible institutions on such terms and conditions as are 
determined by the Secretary in accordance with this 
subtitle. For purposes of this paragraph and with re-
spect to an eligible institution, the term ‘‘other finan-
cial instruments’’ shall include only debt instruments 
for which such eligible institution is fully liable or eq-
uity equivalent capital of the eligible institution. 
Such debt instruments may be subordinated to the 
claims of other creditors of the eligible institution.
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(2) MAXIMUM PURCHASE LIMIT.—The aggregate 
amount of purchases (and commitments to purchase) 
made pursuant to paragraph (1) may not exceed 
$30,000,000,000. 
(3) PROCEEDS
USED
TO
PAY
DOWN
PUBLIC 
DEBT.—All funds received by the Secretary in connec-
tion with purchases made pursuant to paragraph (1), 
including interest payments, dividend payments, and 
proceeds from the sale of any financial instrument, 
shall be paid into the general fund of the Treasury for 
reduction of the public debt. 
(4) LIMITATION ON PURCHASES FROM CDLFS.— 
(A) IN GENERAL.—Not more than 1 percent 
of the maximum purchase limit of the Program, 
pursuant to paragraph (2), may be used to make 
purchases from community development loan 
funds. 
(B) ELIGIBILITY
STANDARDS.—The Sec-
retary, in consultation with the Community De-
velopment Financial Institutions Fund, shall de-
velop eligibility criteria to determine the finan-
cial ability of a CDLF to participate in the Pro-
gram and repay the investment. Such criteria 
shall include the following:
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† HR 5297 EAS 
(i) Ratio of net assets to total assets is 
at least 20 percent. 
(ii) Ratio of loan loss reserves to loans 
and leases 90 days or more delinquent (in-
cluding loans sold with full recourse) is at 
least 30 percent. 
(iii) Positive net income measured on 
a 3-year rolling average. 
(iv) Operating liquidity ratio of at 
least 1.0 for the 4 most recent quarters and 
for one or both of the two preceding years. 
(v) Ratio of loans and leases 90 days 
or more delinquent (including loans sold 
with full recourse) to total equity plus loan 
loss reserves is less than 40 percent. 
(C) REQUIREMENT TO SUBMIT AUDITED FI-
NANCIAL STATEMENTS.—CDLFs participating in 
the Program shall submit audited financial 
statements to the Secretary, have a clean audit 
opinion, and have at least 3 years of operating 
experience. 
(c) CREDITS TO THE FUND.—There shall be credited 
to the Fund amounts made available pursuant to section 
4108, to the extent provided by appropriations Acts. 
(d) TERMS.—
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† HR 5297 EAS 
(1) APPLICATION.— 
(A) 
INSTITUTIONS
WITH
ASSETS
OF 
$1,000,000,000
OR
LESS.—Eligible institutions 
having total assets equal to or less than 
$1,000,000,000, as reported in a call report as of 
the end of the fourth quarter of calendar year 
2009, may apply to receive a capital investment 
from the Fund in an amount not exceeding 5 
percent of risk-weighted assets, as reported in the 
call report immediately preceding the date of ap-
plication, less the amount of any CDCI invest-
ment and any CPP investment. 
(B) INSTITUTIONS WITH ASSETS OF MORE 
THAN $1,000,000,000 AND LESS THAN OR EQUAL TO 
$10,000,000,000.—Eligible institutions having total 
assets of more than $1,000,000,000 but less than 
$10,000,000,000, as of the end of the fourth quar-
ter of calendar year 2009, may apply to receive 
a capital investment from the Fund in an 
amount not exceeding 3 percent of risk-weighted 
assets, as reported in the call report immediately 
preceding the date of application, less the 
amount of any CDCI investment and any CPP 
investment.
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(C) TREATMENT OF HOLDING COMPANIES.— 
In the case of an eligible institution that is a 
bank holding company or a savings and loan 
holding company having one or more insured de-
pository institution subsidiaries, total assets 
shall be measured based on the combined total 
assets reported in the call report of the insured 
depository institution subsidiaries as of the end 
of the fourth quarter of calendar year 2009 and 
risk-weighted assets shall be measured based on 
the combined risk-weighted assets of the insured 
depository institution subsidiaries as reported in 
the call report immediately preceding the date of 
application. 
(D) TREATMENT OF APPLICANTS THAT ARE 
INSTITUTIONS CONTROLLED BY HOLDING COMPA-
NIES.—If an eligible institution that applies to 
receive a capital investment under the Program 
is under the control of a bank holding company 
or a savings and loan holding company, then the 
Secretary may use the Fund to purchase pre-
ferred stock or other financial instruments from 
the top-tier bank holding company or savings 
and loan holding company of such eligible insti-
tution, as applicable. For purposes of this sub-
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paragraph, the term ‘‘control’’ with respect to a 
bank holding company shall have the same 
meaning as in section 2(a)(2) of the Bank Hold-
ing 
Company 
Act 
of 
1956 
(12 
U.S.C. 
1841(2)(a)(2)). For purposes of this subpara-
graph, the term ‘‘control’’ with respect to a sav-
ings and loan holding company shall have the 
same meaning as in 10(a)(2) of the Home Own-
ers’ Loan Act (12 U.S.C. 1467a(a)(2)). 
(E) REQUIREMENT TO PROVIDE A SMALL 
BUSINESS LENDING PLAN.—At the time that an 
applicant submits an application to the Sec-
retary for a capital investment under the Pro-
gram, the applicant shall deliver to the appro-
priate Federal banking agency, and, for appli-
cants that are State-chartered banks, to the ap-
propriate State banking regulator, a small busi-
ness lending plan describing how the applicant’s 
business strategy and operating goals will allow 
it to address the needs of small businesses in the 
areas it serves, as well as a plan to provide lin-
guistically and culturally appropriate outreach, 
where appropriate. In the case of eligible institu-
tions that are community development loan 
funds, this plan shall be submitted to the Sec-
216 
† HR 5297 EAS 
retary. This plan shall be confidential super-
visory information. 
(F) TREATMENT OF APPLICANTS THAT ARE 
COMMUNITY DEVELOPMENT LOAN FUNDS.—Eligi-
ble institutions that are community development 
loan funds may apply to receive a capital invest-
ment from the Fund in an amount not exceeding 
5 percent of total assets, as reported in the au-
dited financial statements for the fiscal year of 
the eligible institution that ends in calendar 
year 2009. 
(2) CONSULTATION
WITH
REGULATORS.—For 
each eligible institution that applies to receive a cap-
ital investment under the Program, the Secretary 
shall— 
(A) consult with the appropriate Federal 
banking agency or, in the case of an eligible in-
stitution that is a nondepository community de-
velopment financial institution, the Community 
Development Financial Institution Fund, for the 
eligible institution, to determine whether the eli-
gible institution may receive such capital invest-
ment; 
(B) in the case of an eligible institution 
that is a State-chartered bank, consider any
217 
† HR 5297 EAS 
views received from the State banking regulator 
of the State of the eligible institution regarding 
the financial condition of the eligible institution; 
and 
(C) in the case of a community development 
financial institution loan fund, consult with the 
Community Development Financial Institution 
Fund. 
(3) CONSIDERATION OF MATCHED PRIVATE IN-
VESTMENTS.— 
(A) IN GENERAL.—For an eligible institu-
tion that applies to receive a capital investment 
under the Program, if the entity to be consulted 
under paragraph (2) would not otherwise rec-
ommend the eligible institution to receive the 
capital investment, the Secretary, in consulta-
tion with the entity to be so consulted, may con-
sider whether the entity to be consulted would 
recommend the eligible institution to receive a 
capital investment based on the financial condi-
tion of the institution if the conditions in sub-
paragraph (B) are satisfied. 
(B) CONDITIONS.—The conditions referred 
to in subparagraph (A) are as follows:
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† HR 5297 EAS 
(i) CAPITAL
SOURCES.—The eligible 
institution shall receive capital both under 
the Program and from private, nongovern-
ment investors. 
(ii) 
AMOUNT
OF
CAPITAL.—The 
amount of capital to be received under the 
Program shall not exceed 3 percent of risk- 
weighted assets, as reported in the call re-
port immediately preceding the date of ap-
plication, less the amount of any CDCI in-
vestment and any CPP investment. 
(iii) TERMS.—The amount of capital 
to be received from private, nongovernment 
investors shall be— 
(I) equal to or greater than 100 
percent of the capital to be received 
under the Program; and 
(II) subordinate to the capital in-
vestment made by the Secretary under 
the Program. 
(4) INELIGIBILITY
OF
INSTITUTIONS
ON
FDIC 
PROBLEM BANK LIST.— 
(A) IN
GENERAL.—An eligible institution 
may not receive any capital investment under 
the Program, if—
219 
† HR 5297 EAS 
(i) such institution is on the FDIC 
problem bank list; or 
(ii) such institution has been removed 
from the FDIC problem bank list for less 
than 90 days. 
(B) CONSTRUCTION.—Nothing in subpara-
graph (A) shall be construed as limiting the dis-
cretion of the Secretary to deny the application 
of an eligible institution that is not on the FDIC 
problem bank list. 
(C) FDIC PROBLEM BANK LIST DEFINED.— 
For purposes of this paragraph, the term ‘‘FDIC 
problem bank list’’ means the list of depository 
institutions having a current rating of 4 or 5 
under the Uniform Financial Institutions Rat-
ing System, or such other list designated by the 
Federal Deposit Insurance Corporation. 
(5) INCENTIVES TO LEND.— 
(A) REQUIREMENTS ON PREFERRED STOCK 
AND OTHER FINANCIAL INSTRUMENTS.—Any pre-
ferred stock or other financial instrument issued 
to Treasury by an eligible institution receiving 
a capital investment under the Program shall 
provide that—
220 
† HR 5297 EAS 
(i) the rate at which dividends or in-
terest are payable shall be 5 percent per 
annum initially; 
(ii) within the first 2 years after the 
date of the capital investment under the 
Program, the rate may be adjusted based on 
the amount of an eligible institution’s small 
business lending. Changes in the amount of 
small business lending shall be measured 
against the average amount of small busi-
ness lending reported by the eligible institu-
tion in its call reports for the 4 full quar-
ters immediately preceding the date of en-
actment of this Act, minus adjustments 
from each quarterly balance in respect of— 
(I) net loan charge offs with re-
spect to small business lending; and 
(II) gains realized by the eligible 
institution resulting from mergers, ac-
quisitions or purchases of loans after 
origination and syndication; which ad-
justments shall be determined in ac-
cordance with guidance promulgated 
by the Secretary; and
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† HR 5297 EAS 
(iii) during any calendar quarter dur-
ing the initial 2-year period referred to in 
clause (ii), an institution’s rate shall be ad-
justed to reflect the following schedule, based 
on that institution’s change in the amount 
of small business lending relative to the 
baseline— 
(I) if the amount of small business 
lending has increased by less than 2.5 
percent, the dividend or interest rate 
shall be 5 percent; 
(II) if the amount of small busi-
ness lending has increased by 2.5 per-
cent or greater, but by less than 5.0 
percent, the dividend or interest rate 
shall be 4 percent; 
(III) if the amount of small busi-
ness lending has increased by 5.0 per-
cent or greater, but by less than 7.5 
percent, the dividend or interest rate 
shall be 3 percent; 
(IV) if the amount of small busi-
ness lending has increased by 7.5 per-
cent or greater, and but by less than
222 
† HR 5297 EAS 
10.0 percent, the dividend or interest 
rate shall be 2 percent; or 
(V) if the amount of small busi-
ness lending has increased by 10 per-
cent or greater, the dividend or interest 
rate shall be 1 percent. 
(B) BASIS OF INITIAL RATE.—The initial 
dividend or interest rate shall be based on call 
report data published in the quarter immediately 
preceding the date of the capital investment 
under the Program. 
(C) TIMING OF RATE ADJUSTMENTS.—Any 
rate adjustment shall occur in the calendar quar-
ter following the publication of call report data, 
such that the rate based on call report data from 
any one calendar quarter, which is published in 
the first following calendar quarter, shall be ad-
justed in that first following calendar quarter 
and payable in the second following quarter. 
(D) RATE FOLLOWING INITIAL 2-YEAR PE-
RIOD.—Generally, the rate based on call report 
data from the eighth calendar quarter after the 
date of the capital investment under the Pro-
gram shall be payable until the expiration of the 
41⁄2-year period that begins on the date of the in-
223 
† HR 5297 EAS 
vestment. In the case where the amount of small 
business lending has remained the same or de-
creased relative to the institution’s baseline in 
the eighth quarter after the date of the capital 
investment under the Program, the rate shall be 
7 percent until the expiration of the 41⁄2-year pe-
riod that begins on the date of the investment. 
(E) RATE
FOLLOWING
INITIAL
41⁄2 -YEAR 
PERIOD.—The dividend or interest rate paid on 
any preferred stock or other financial instrument 
issued by an eligible institution that receives a 
capital investment under the Program shall in-
crease to 9 percent at the end of the 41⁄2-year pe-
riod that begins on the date of the capital invest-
ment under the Program. 
(F) LIMITATION
ON
RATE
REDUCTIONS 
WITH RESPECT TO CERTAIN AMOUNT.—The re-
duction in the dividend or interest rate payable 
to Treasury by any eligible institution shall be 
limited such that the rate reduction shall not 
apply to a dollar amount of the investment made 
by Treasury that is greater than the dollar 
amount increase in the amount of small business 
lending realized under this program. The Sec-
retary may issue guidelines that will apply to
224 
† HR 5297 EAS 
new capital investments limiting the amount of 
capital available to eligible institutions con-
sistent with this limitation. 
(G) RATE ADJUSTMENTS FOR S CORPORA-
TION.—Before making a capital investment in 
an eligible institution that is an S corporation 
or a corporation organized on a mutual basis, 
the Secretary may adjust the dividend or interest 
rate on the financial instrument to be issued to 
the Secretary, from the dividend or interest rate 
that would apply under subparagraphs (A) 
through (F), to take into account any differential 
tax treatment of securities issued by such eligible 
institution. For purpose of this subparagraph, 
the term ‘‘S corporation’’ has the same meaning 
as in section 1361(a) of the Internal Revenue 
Code of 1986. 
(H) REPAYMENT
DEADLINE.—The capital 
investment received by an eligible institution 
under the Program shall be evidenced by pre-
ferred stock or other financial instrument that— 
(i) includes, as a term and condition, 
that the capital investment will— 
(I) be repaid not later than the 
end of the 10-year period beginning on
225 
† HR 5297 EAS 
the date of the capital investment 
under the Program; or 
(II) at the end of such 10-year pe-
riod, be subject to such additional 
terms as the Secretary shall prescribe, 
which shall include a requirement that 
the stock or instrument shall carry the 
highest dividend or interest rate pay-
able; and 
(ii) provides that the term and condi-
tion described under clause (i) shall not 
apply if the application of that term and 
condition would adversely affect the capital 
treatment of the stock or financial instru-
ment under current or successor applicable 
capital provisions compared to a capital in-
strument with identical terms other than 
the term and condition described under 
clause (i). 
(I) REQUIREMENTS ON FINANCIAL INSTRU-
MENTS ISSUED BY A COMMUNITY DEVELOPMENT 
FINANCIAL INSTITUTION LOAN FUND.—Any eq-
uity equivalent capital issued to the Treasury by 
a community development loan fund receiving a 
capital investment under the Program shall pro-
226 
† HR 5297 EAS 
vide that the rate at which interest is payable 
shall be 2 percent per annum for 8 years. After 
8 years, the rate at which interest is payable 
shall be 9 percent. 
(6) ADDITIONAL
INCENTIVES
TO
REPAY.—The 
Secretary may, by regulation or guidance issued 
under section 4104(9), establish repayment incentives 
in addition to the incentive in paragraph (5)(E) that 
will apply to new capital investments in a manner 
that the Secretary determines to be consistent with the 
purposes of this subtitle. 
(7) CAPITAL PURCHASE PROGRAM REFINANCE.— 
(A) IN GENERAL.—The Secretary shall, in a 
manner that the Secretary determines to be con-
sistent with the purposes of this subtitle, issue 
regulations and other guidance to permit eligible 
institutions to refinance securities issued to 
Treasury under the CDCI and the CPP for secu-
rities to be issued under the Program. 
(B) PROHIBITION
ON
PARTICIPATION
BY 
NON-PAYING CPP PARTICIPANTS.—Subparagraph 
(A) shall not apply to any eligible institution 
that has missed more than one dividend pay-
ment due under the CPP. For purposes of this 
subparagraph, a CPP dividend payment that is
227 
† HR 5297 EAS 
submitted within 60 days of the due date of such 
payment shall not be considered a missed divi-
dend payment. 
(8) OUTREACH
TO
MINORITIES, WOMEN, AND 
VETERANS.—The Secretary shall require eligible insti-
tutions receiving capital investments under the Pro-
gram to provide linguistically and culturally appro-
priate outreach and advertising in the applicant pool 
describing the availability and application process of 
receiving loans from the eligible institution that are 
made possible by the Program through the use of 
print, radio, television or electronic media outlets 
which target organizations, trade associations, and 
individuals that— 
(A) represent or work within or are mem-
bers of minority communities; 
(B) represent or work with or are women; 
and 
(C) represent or work with or are veterans. 
(9) ADDITIONAL TERMS.—The Secretary may, by 
regulation or guidance issued under section 4104(9), 
make modifications that will apply to new capital in-
vestments in order to manage risks associated with 
the administration of the Fund in a manner con-
sistent with the purposes of this subtitle.
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† HR 5297 EAS 
(10) MINIMUM UNDERWRITING STANDARDS.—The 
appropriate Federal banking agency for an eligible 
institution that receives funds under the Program 
shall within 60 days issue guidance regarding pru-
dent underwriting standards that must be used for 
loans made by the eligible institution using such 
funds. 
SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY. 
The Secretary may take such actions as the Secretary 
deems necessary to carry out the authorities in this subtitle, 
including, without limitation, the following: 
(1) The Secretary may use the services of any 
agency or instrumentality of the United States or 
component thereof on a reimbursable basis, and any 
such agency or instrumentality or component thereof 
is authorized to provide services as requested by the 
Secretary using all authorities vested in or delegated 
to that agency, instrumentality, or component. 
(2) The Secretary may enter into contracts, in-
cluding contracts for services authorized by section 
3109 of title 5, United States Code. 
(3) The Secretary may designate any bank, sav-
ings association, trust company, security broker or 
dealer, asset manager, or investment adviser as a fi-
nancial agent of the Federal Government and such in-
229 
† HR 5297 EAS 
stitution shall perform all such reasonable duties re-
lated to this subtitle as financial agent of the Federal 
Government as may be required. The Secretary shall 
have authority to amend existing agreements with fi-
nancial agents, entered into during the 2-year period 
before the date of enactment of this Act, to perform 
reasonable duties related to this subtitle. 
(4) The Secretary may exercise any rights re-
ceived in connection with any preferred stock or other 
financial instruments or assets purchased or acquired 
pursuant to the authorities granted under this sub-
title. 
(5) Subject to section 4103(b)(3), the Secretary 
may manage any assets purchased under this subtitle, 
including revenues and portfolio risks therefrom. 
(6) The Secretary may sell, dispose of, transfer, 
exchange or enter into securities loans, repurchase 
transactions, or other financial transactions in regard 
to, any preferred stock or other financial instrument 
or asset purchased or acquired under this subtitle, 
upon terms and conditions and at a price determined 
by the Secretary. 
(7) The Secretary may manage or prohibit con-
flicts of interest that may arise in connection with the
230 
† HR 5297 EAS 
administration and execution of the authorities pro-
vided under this subtitle. 
(8) The Secretary may establish and use vehicles, 
subject to supervision by the Secretary, to purchase, 
hold, and sell preferred stock or other financial in-
struments and issue obligations. 
(9) The Secretary may, in consultation with the 
Administrator of the Small Business Administration, 
issue such regulations and other guidance as may be 
necessary or appropriate to define terms or carry out 
the authorities or purposes of this subtitle. 
SEC. 4105. CONSIDERATIONS. 
In exercising the authorities granted in this subtitle, 
the Secretary shall take into consideration— 
(1) increasing the availability of credit for small 
businesses; 
(2) providing funding to minority-owned eligible 
institutions and other eligible institutions that serve 
small businesses that are minority-, veteran-, and 
women-owned and that also serve low- and moderate- 
income, minority, and other underserved or rural 
communities; 
(3) protecting and increasing American jobs;
231 
† HR 5297 EAS 
(4) increasing the opportunity for small business 
development in areas with high unemployment rates 
that exceed the national average; 
(5) ensuring that all eligible institutions may 
apply to participate in the program established under 
this subtitle, without discrimination based on geog-
raphy; 
(6) providing transparency with respect to use of 
funds provided under this subtitle; 
(7) minimizing the cost to taxpayers of exer-
cising the authorities; 
(8) promoting and engaging in financial edu-
cation to would-be borrowers; and 
(9) providing funding to eligible institutions 
that serve small businesses directly affected by the dis-
charge of oil arising from the explosion on and sink-
ing of the mobile offshore drilling unit Deepwater Ho-
rizon and small businesses in communities that have 
suffered negative economic effects as a result of that 
discharge with particular consideration to States 
along the coast of the Gulf of Mexico. 
SEC. 4106. REPORTS. 
The Secretary shall provide to the appropriate com-
mittees of Congress—
232 
† HR 5297 EAS 
(1) within 7 days of the end of each month com-
mencing with the first month in which transactions 
are made under the Program, a written report de-
scribing all of the transactions made during the re-
porting period pursuant to the authorities granted 
under this subtitle; 
(2) after the end of March and the end of Sep-
tember, commencing September 30, 2010, a written 
report on all projected costs and liabilities, all oper-
ating expenses, including compensation for financial 
agents, and all transactions made by the Fund, which 
shall include participating institutions and amounts 
each institution has received under the Program; and 
(3) within 7 days of the end of each calendar 
quarter commencing with the first calendar quarter 
in which transactions are made under the Program, 
a written report detailing how eligible institutions 
participating in the Program have used the funds 
such institutions received under the Program. 
SEC. 4107. OVERSIGHT AND AUDITS. 
(a) INSPECTOR GENERAL OVERSIGHT.—The Inspector 
General of the Department of the Treasury shall conduct, 
supervise, and coordinate audits and investigations of the 
Program through the Office of Small Business Lending 
Fund Program Oversight established under subsection (b).
233 
† HR 5297 EAS 
(b) OFFICE OF SMALL BUSINESS LENDING FUND PRO-
GRAM OVERSIGHT.— 
(1) ESTABLISHMENT.—There is hereby estab-
lished within the Office of the Inspector General of the 
Department of the Treasury a new office to be named 
the ‘‘Office of Small Business Lending Fund Program 
Oversight’’ to provide oversight of the Program. 
(2) LEADERSHIP.—The Inspector General shall 
appoint a Special Deputy Inspector General for 
SBLF Program Oversight to lead the Office, with 
commensurate staff, who shall report directly to the 
Inspector General and who shall be responsible for the 
performance of all auditing and investigative activi-
ties relating to the Program. 
(3) REPORTING.— 
(A) IN
GENERAL.—The Inspector General 
shall issue a report no less than two times a year 
to the Congress and the Secretary devoted to the 
oversight provided by the Office, including any 
recommendations for improvements to the Pro-
gram. 
(B) RECOMMENDATIONS.—With respect to 
any deficiencies identified in a report under sub-
paragraph (A), the Secretary shall either—
234 
† HR 5297 EAS 
(i) take actions to address such defi-
ciencies; or 
(ii) certify to the appropriate commit-
tees of Congress that no action is necessary 
or appropriate. 
(4) COORDINATION.—The Inspector General, in 
maximizing the effectiveness of the Office, shall work 
with other Offices of Inspector General, as appro-
priate, to minimize duplication of effort and ensure 
comprehensive oversight of the Program. 
(5) TERMINATION.—The Office shall terminate at 
the end of the 6-month period beginning on the date 
on which all capital investments are repaid under the 
Program or the date on which the Secretary deter-
mines that any remaining capital investments will 
not be repaid. 
(6) DEFINITIONS.—For purposes of this sub-
section: 
(A) OFFICE.—The term ‘‘Office’’ means the 
Office of Small Business Lending Fund Program 
Oversight established under paragraph (1). 
(B) INSPECTOR GENERAL.—The term ‘‘In-
spector General’’ means the Inspector General of 
the Department of the Treasury.
235 
† HR 5297 EAS 
(c) GAO AUDIT.—The Comptroller General of the 
United States shall perform an annual audit of the Pro-
gram and issue a report to the appropriate committees of 
Congress containing the results of such audit. 
(d) REQUIRED CERTIFICATIONS.— 
(1) ELIGIBLE
INSTITUTION
CERTIFICATION.— 
Each eligible institution that participates in the Pro-
gram must certify that such institution is in compli-
ance with the requirements of section 103.121 of title 
31, Code of Federal Regulations, a regulation that, at 
a minimum, requires financial institutions, as that 
term is defined in 31 U.S.C. 5312(a)(2) and 
(c)(1)(A), to implement reasonable procedures to 
verify the identity of any person seeking to open an 
account, to the extent reasonable and practicable, 
maintain records of the information used to verify the 
person’s identity, and determine whether the person 
appears on any lists of known or suspected terrorists 
or terrorist organizations provided to the financial 
institution by any government agency. 
(2) LOAN RECIPIENTS.—With respect to funds 
received by an eligible institution under the Program, 
any business receiving a loan from the eligible insti-
tution using such funds after the date of the enact-
ment of this Act shall certify to such eligible institu-
236 
† HR 5297 EAS 
tion that the principals of such business have not been 
convicted of a sex offense against a minor (as such 
terms are defined in section 111 of the Sex Offender 
Registration and Notification Act (42 U.S.C. 16911)). 
(e) PROHIBITION
ON PORNOGRAPHY.—None of the 
funds made available under this subtitle may be used to 
pay the salary of any individual engaged in activities re-
lated to the Program who has been officially disciplined for 
violations of subpart G of the Standards of Ethical Conduct 
for Employees of the Executive Branch for viewing, 
downloading, or exchanging pornography, including child 
pornography, on a Federal Government computer or while 
performing official Federal Government duties. 
SEC. 4108. CREDIT REFORM; FUNDING. 
(a) CREDIT REFORM.—The cost of purchases of pre-
ferred stock and other financial instruments made as cap-
ital investments under this subtitle shall be determined as 
provided under the Federal Credit Reform Act of 1990 (2 
U.S.C. 661 et seq.). 
(b) FUNDS MADE AVAILABLE.—There are hereby ap-
propriated, out of funds in the Treasury not otherwise ap-
propriated, such sums as may be necessary to pay the costs 
of $30,000,000,000 of capital investments in eligible institu-
tions, including the costs of modifying such investments,
237 
† HR 5297 EAS 
and reasonable costs of administering the program of mak-
ing, holding, managing, and selling the capital investments. 
SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORI-
TIES. 
(a) TERMINATION OF INVESTMENT AUTHORITY.—The 
authority to make capital investments in eligible institu-
tions, including commitments to purchase preferred stock 
or other instruments, provided under this subtitle shall ter-
minate 1 year after the date of enactment of this Act. 
(b) CONTINUATION
OF OTHER AUTHORITIES.—The 
authorities of the Secretary under section 4104 shall not 
be limited by the termination date in subsection (a). 
SEC. 4110. PRESERVATION OF AUTHORITY. 
Nothing in this subtitle may be construed to limit the 
authority of the Secretary under any other provision of law. 
SEC. 4111. ASSURANCES. 
(a) SMALL BUSINESS LENDING FUND SEPARATE 
FROM TARP.—The Small Business Lending Fund Pro-
gram is established as separate and distinct from the Trou-
bled Asset Relief Program established by the Emergency 
Economic Stabilization Act of 2008. An institution shall 
not, by virtue of a capital investment under the Small Busi-
ness Lending Fund Program, be considered a recipient of 
the Troubled Asset Relief Program.
238 
† HR 5297 EAS 
(b) CHANGE IN LAW.—If, after a capital investment 
has been made in an eligible institution under the Program, 
there is a change in law that modifies the terms of the in-
vestment or program in a materially adverse respect for the 
eligible institution, the eligible institution may, after con-
sultation with the appropriate Federal banking agency for 
the eligible institution, repay the investment without im-
pediment. 
SEC. 4112. STUDY AND REPORT WITH RESPECT TO WOMEN- 
OWNED, VETERAN-OWNED, AND MINORITY- 
OWNED BUSINESSES. 
(a) STUDY.—The Secretary shall conduct a study of 
the impact of the Program on women-owned businesses, vet-
eran-owned businesses, and minority-owned businesses. 
(b) REPORT.—Not later than one year after the date 
of enactment of this Act, the Secretary shall submit to Con-
gress a report on the results of the study conducted pursuant 
to subsection (a). To the extent possible, the Secretary shall 
disaggregate the results of such study by ethnic group and 
gender. 
(c) INFORMATION PROVIDED TO THE SECRETARY.— 
Eligible institutions that participate in the Program shall 
provide the Secretary with such information as the Sec-
retary may require to carry out the study required by this 
section.
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† HR 5297 EAS 
SEC. 4113. SENSE OF CONGRESS. 
It is the sense of Congress that the Federal Deposit In-
surance Corporation and other bank regulators are sending 
mixed messages to banks regarding regulatory capital re-
quirements and lending standards, which is a contributing 
cause of decreased small business lending and increased reg-
ulatory uncertainty at community banks. 
Subtitle B—Other Provisions 
PART I—SMALL BUSINESS EXPORT PROMOTION 
INITIATIVES 
SEC. 4221. SHORT TITLE. 
This part may be cited as the ‘‘Export Promotion Act 
of 2010’’. 
SEC. 4222. GLOBAL BUSINESS DEVELOPMENT AND PRO-
MOTION ACTIVITIES OF THE DEPARTMENT OF 
COMMERCE. 
(a) INCREASE IN EMPLOYEES WITH RESPONSIBILITY 
FOR GLOBAL BUSINESS DEVELOPMENT AND PROMOTION 
ACTIVITIES.— 
(1) IN GENERAL.—During the 24-month period 
beginning on the date of the enactment of this Act, the 
Secretary of Commerce shall increase the number of 
full-time departmental employees whose primary re-
sponsibilities involve promoting or facilitating par-
ticipation by United States businesses in the global 
marketplace and facilitating the entry into, or expan-
240 
† HR 5297 EAS 
sion of, such participation by United States busi-
nesses. In carrying out this subsection, the Secretary 
shall ensure that— 
(A) the cohort of such employees is increased 
by not less than 80 persons; and 
(B) a substantial portion of the increased 
cohort is stationed outside the United States. 
(2) ENHANCED
FOCUS
ON
UNITED
STATES 
SMALL- AND
MEDIUM-SIZED
BUSINESSES.—In car-
rying out this subsection, the Secretary shall take 
such action as may be necessary to ensure that the ac-
tivities of the Department of Commerce relating to 
promoting and facilitating participation by United 
States businesses in the global marketplace include 
promoting and facilitating such participation by 
small and medium-sized businesses in the United 
States. 
(3) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated to the Sec-
retary for each of the fiscal years 2011 and 2012 such 
sums as may be necessary to carry out this section. 
(b) ADDITIONAL FUNDING FOR GLOBAL BUSINESS DE-
VELOPMENT AND PROMOTION ACTIVITIES OF THE DEPART-
MENT OF COMMERCE.—
241 
† HR 5297 EAS 
(1) IN GENERAL.—There are authorized to be ap-
propriated to the Secretary of Commerce for the pe-
riod beginning on the date of the enactment of this 
Act and ending 18 months thereafter, $30,000,000 to 
promote or facilitate participation by United States 
businesses in the global marketplace and facilitating 
the entry into, or expansion of, such participation by 
United States businesses. 
(2) REQUIREMENTS.—In obligating and expend-
ing the funds authorized to be appropriated by para-
graph (1), the Secretary of Commerce shall give pref-
erence to activities that— 
(A) assist small- and medium-sized busi-
nesses in the United States; and 
(B) the Secretary determines will create or 
sustain the greatest number of jobs in the United 
States and obtain the maximum return on in-
vestment. 
SEC. 4223. ADDITIONAL FUNDING TO IMPROVE ACCESS TO 
GLOBAL MARKETS FOR RURAL BUSINESSES. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary of Commerce $5,000,000 for each 
of the fiscal years 2011 and 2012 for improving access to 
the global marketplace for goods and services provided by 
rural businesses in the United States.
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(b) REQUIREMENTS.—In obligating and expending the 
funds authorized to be appropriated by subsection (a), the 
Secretary of Commerce shall give preference to activities 
that— 
(1) assist small- and medium-sized businesses in 
the United States; and 
(2) the Secretary determines will create or sus-
tain the greatest number of jobs in the United States 
and obtain the maximum return on investment. 
SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH 
PROGRAM. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary of Commerce $11,000,000 for the 
period beginning on the date of the enactment of this Act 
and ending 18 months thereafter, to expand ExporTech, a 
joint program of the Hollings Manufacturing Partnership 
Program and the Export Assistance Centers of the Depart-
ment of Commerce. 
(b) REQUIREMENTS.—In obligating and expending the 
funds authorized to be appropriated by subsection (a), the 
Secretary of Commerce shall give preference to activities 
that— 
(1) assist small- and medium-sized businesses in 
the United States; and
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(2) the Secretary determines will create or sus-
tain the greatest number of jobs in the United States 
and obtain the maximum return on investment. 
SEC. 4225. ADDITIONAL FUNDING FOR THE MARKET DEVEL-
OPMENT COOPERATOR PROGRAM OF THE DE-
PARTMENT OF COMMERCE. 
(a) IN GENERAL.—There are authorized to be appro-
priated to the Secretary of Commerce for the period begin-
ning on the date of the enactment of this Act and ending 
18 months thereafter, $15,000,000 for the Manufacturing 
and Services unit of the International Trade Administra-
tion— 
(1) to establish public-private partnerships under 
the Market Development Cooperator Program of the 
International Trade Administration; and 
(2) to underwrite a portion of the start-up costs 
for new projects carried out under that Program to 
strengthen the competitiveness and market share of 
United States industry, not to exceed, for each such 
project, the lesser of— 
(A) 1⁄3 of the total start-up costs for the 
project; or 
(B) $500,000. 
(b) REQUIREMENTS.—In obligating and expending the 
funds authorized to be appropriated by subsection (a), the
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Secretary of Commerce shall give preference to activities 
that— 
(1) assist small- and medium-sized businesses in 
the United States; and 
(2) the Secretary determines will create or sus-
tain the greatest number of jobs in the United States 
and obtain the maximum return on investment. 
SEC. 4226. HOLLINGS MANUFACTURING PARTNERSHIP PRO-
GRAM; TECHNOLOGY INNOVATION PROGRAM. 
(a) HOLLINGS MANUFACTURING PARTNERSHIP PRO-
GRAM.—Section 25(f) of the National Institute of Standards 
and Technology Act (15 U.S.C. 278k(f)) is amended by add-
ing at the end the following: 
‘‘(7) GLOBAL
MARKETPLACE
PROJECTS.—In 
making awards under this subsection, the Director, in 
consultation with the Manufacturing Extension Part-
nership Advisory Board and the Secretary of Com-
merce, may— 
‘‘(A) take into consideration whether an ap-
plication has significant potential for enhancing 
the competitiveness of small and medium-sized 
United States manufacturers in the global mar-
ketplace; and 
‘‘(B) give a preference to applications for 
such projects to the extent the Director deems ap-
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propriate, taking into account the broader pur-
poses of this subsection.’’. 
(b) TECHNOLOGY INNOVATION PROGRAM.—In award-
ing grants, cooperative agreements, or contracts under sec-
tion 28 of the National Institute of Standards and Tech-
nology Act (15 U.S.C. 278n), in addition to the award cri-
teria set forth in subsection (c) of that section, the Director 
of the National Institute of Standards and Technology may 
take into consideration whether an application has signifi-
cant potential for enhancing the competitiveness of small- 
and medium-sized businesses in the United States in the 
global marketplace. The Director shall consult with the 
Technology Innovation Program Advisory Board and the 
Secretary of Commerce in implementing this subsection. 
SEC. 4227. SENSE OF THE SENATE CONCERNING FEDERAL 
COLLABORATION WITH STATES ON EXPORT 
PROMOTION ISSUES. 
It is the sense of the Senate that the Secretary of Com-
merce should enhance Federal collaboration with the States 
on export promotion issues by— 
(1) providing the necessary training to the staff 
at State international trade agencies to enable them 
to assist the United States and Foreign Commercial 
Service (established by section 2301 of the Export En-
hancement Act of 1988 (15 U.S.C. 4721)) in pro-
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viding counseling and other export services to busi-
nesses in their communities; and 
(2) entering into agreements with State inter-
national trade agencies for those agencies to deliver 
export promotion services in their local communities 
in order to extend the outreach of United States and 
Foreign Commercial Service programs. 
SEC. 4228. REPORT ON TARIFF AND NONTARIFF BARRIERS. 
Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Commerce, in consultation with 
the United States Trade Representative and other appro-
priate entities, shall report to Congress on the tariff and 
nontariff barriers imposed by Colombia, the Republic of 
Korea, and Panama with respect to exports of articles from 
the United States, including articles exported or produced 
by small- and medium-sized businesses in the United 
States. 
PART II—MEDICARE FRAUD 
SEC. 4241. USE OF PREDICTIVE MODELING AND OTHER 
ANALYTICS 
TECHNOLOGIES 
TO 
IDENTIFY 
AND PREVENT WASTE, FRAUD, AND ABUSE IN 
THE MEDICARE FEE-FOR-SERVICE PROGRAM. 
(a) USE IN THE MEDICARE FEE-FOR-SERVICE PRO-
GRAM.—The Secretary shall use predictive modeling and 
other analytics technologies (in this section referred to as
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‘‘predictive analytics technologies’’) to identify improper 
claims for reimbursement and to prevent the payment of 
such claims under the Medicare fee-for-service program. 
(b) PREDICTIVE ANALYTICS TECHNOLOGIES REQUIRE-
MENTS.—The predictive analytics technologies used by the 
Secretary shall— 
(1) capture Medicare provider and Medicare ben-
eficiary activities across the Medicare fee-for-service 
program to provide a comprehensive view across all 
providers, beneficiaries, and geographies within such 
program in order to— 
(A) identify and analyze Medicare provider 
networks, provider billing patterns, and bene-
ficiary utilization patterns; and 
(B) identify and detect any such patterns 
and networks that represent a high risk of fraud-
ulent activity; 
(2) be integrated into the existing Medicare fee- 
for-service program claims flow with minimal effort 
and maximum efficiency; 
(3) be able to— 
(A) analyze large data sets for unusual or 
suspicious patterns or anomalies or contain 
other factors that are linked to the occurrence of 
waste, fraud, or abuse;
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(B) undertake such analysis before payment 
is made; and 
(C) prioritize such identified transactions 
for additional review before payment is made in 
terms of the likelihood of potential waste, fraud, 
and abuse to more efficiently utilize investigative 
resources; 
(4) capture outcome information on adjudicated 
claims for reimbursement to allow for refinement and 
enhancement of the predictive analytics technologies 
on the basis of such outcome information, including 
post-payment information about the eventual status of 
a claim; and 
(5) prevent the payment of claims for reimburse-
ment that have been identified as potentially wasteful, 
fraudulent, or abusive until such time as the claims 
have been verified as valid. 
(c) IMPLEMENTATION REQUIREMENTS.— 
(1) REQUEST FOR PROPOSALS.—Not later than 
January 1, 2011, the Secretary shall issue a request 
for proposals to carry out this section during the first 
year of implementation. To the extent the Secretary 
determines appropriate— 
(A) the initial request for proposals may in-
clude subsequent implementation years; and
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program in any State not identified under paragraph 
(2) or (3) and the commonwealths and territories. 
(5) FOURTH IMPLEMENTATION YEAR.—Based on 
the results of the report and recommendation required 
under subsection (e)(3), the Secretary shall expand 
the use of predictive analytics technologies, beginning 
April 1, 2015, to apply to Medicaid and CHIP. To 
the extent the Secretary determines appropriate, such 
expansion may be made on a phased-in basis. 
(6) OPTION
FOR
REFINEMENT
AND
EVALUA-
TION.—If, with respect to the first, second, or third 
implementation year, the Inspector General of the De-
partment of Health and Human Services certifies as 
part of the report required under subsection (e) for 
that year no or only nominal actual savings to the 
Medicare fee-for-service program, the Secretary may 
impose a moratorium, not to exceed 12 months, on the 
expansion of the use of predictive analytics tech-
nologies under this section for the succeeding year in 
order to refine the use of predictive analytics tech-
nologies to achieve more than nominal savings before 
further expansion. If a moratorium is imposed in ac-
cordance with this paragraph, the implementation 
dates applicable for the succeeding year or years shall
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be adjusted to reflect the length of the moratorium pe-
riod. 
(d) CONTRACTOR SELECTION, QUALIFICATIONS, AND 
DATA ACCESS REQUIREMENTS.— 
(1) SELECTION.— 
(A) IN GENERAL.—The Secretary shall se-
lect contractors to carry out this section using 
competitive procedures as provided for in the 
Federal Acquisition Regulation. 
(B) NUMBER OF CONTRACTORS.—The Sec-
retary shall select at least 2 contractors to carry 
out this section with respect to any year. 
(2) QUALIFICATIONS.— 
(A) IN GENERAL.—The Secretary shall enter 
into a contract under this section with an entity 
only if the entity— 
(i) has leadership and staff who— 
(I) have the appropriate clinical 
knowledge of, and experience with, the 
payment rules and regulations under 
the Medicare fee-for-service program; 
and 
(II) have direct management expe-
rience and proficiency utilizing pre-
dictive analytics technologies necessary
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to carry out the requirements under 
subsection (b); or 
(ii) has a contract, or will enter into 
a contract, with another entity that has 
leadership and staff meeting the criteria de-
scribed in clause (i). 
(B) CONFLICT
OF
INTEREST.—The Sec-
retary may only enter into a contract under this 
section with an entity to the extent that the enti-
ty complies with such conflict of interest stand-
ards as are generally applicable to Federal ac-
quisition and procurement. 
(3) DATA ACCESS.—The Secretary shall provide 
entities with a contract under this section with ap-
propriate access to data necessary for the entity to use 
predictive analytics technologies in accordance with 
the contract. 
(e) REPORTING REQUIREMENTS.— 
(1) FIRST IMPLEMENTATION YEAR REPORT.—Not 
later than 3 months after the completion of the first 
implementation year under this section, the Secretary 
shall submit to the appropriate committees of Con-
gress and make available to the public a report that 
includes the following:
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(A) A description of the implementation of 
the use of predictive analytics technologies dur-
ing the year. 
(B) A certification of the Inspector General 
of the Department of Health and Human Serv-
ices that— 
(i) specifies the actual and projected 
savings to the Medicare fee-for-service pro-
gram as a result of the use of predictive 
analytics technologies, including estimates 
of the amounts of such savings with respect 
to both improper payments recovered and 
improper payments avoided; 
(ii) the actual and projected savings to 
the Medicare fee-for-service program as a re-
sult of such use of predictive analytics tech-
nologies relative to the return on investment 
for the use of such technologies and in com-
parison to other strategies or technologies 
used to prevent and detect fraud, waste, and 
abuse in the Medicare fee-for-service pro-
gram; and 
(iii) includes recommendations regard-
ing—
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(I) whether the Secretary should 
continue to use predictive analytics 
technologies; 
(II) whether the use of such tech-
nologies should be expanded in accord-
ance with the requirements of sub-
section (c); and 
(III) any modifications or refine-
ments that should be made to increase 
the amount of actual or projected sav-
ings or mitigate any adverse impact 
on Medicare beneficiaries or providers. 
(C) An analysis of the extent to which the 
use of predictive analytics technologies success-
fully prevented and detected waste, fraud, or 
abuse in the Medicare fee-for-service program. 
(D) A review of whether the predictive ana-
lytics technologies affected access to, or the qual-
ity of, items and services furnished to Medicare 
beneficiaries. 
(E) A review of what effect, if any, the use 
of predictive analytics technologies had on Medi-
care providers. 
(F) Any other items determined appropriate 
by the Secretary.