I 
111TH CONGRESS 
2D SESSION 
H. R. 5332 
To amend the Small Business Act to establish a small business intermediary 
lending pilot program. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 18, 2010 
Ms. KILROY (for herself, Mr. RYAN of Ohio, and Mr. MILLER of North Caro-
lina) introduced the following bill; which was referred to the Committee 
on Small Business 
A BILL 
To amend the Small Business Act to establish a small 
business intermediary lending pilot program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Inter-
mediary Lending Pilot Program Act of 2010’’. 
SEC. 2. SMALL BUSINESS INTERMEDIARY LENDING PILOT 
PROGRAM. 
(a) IN GENERAL.—Section 7 of the Small Business 
Act is amended by striking subsection (l) and inserting 
the following: 
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‘‘(l) SMALL
BUSINESS
INTERMEDIARY
LENDING 
PILOT PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘eligible intermediary’— 
‘‘(i) means a private, nonprofit entity 
that— 
‘‘(I) seeks or has been awarded a 
loan from the Administrator to make 
loans to small business concerns 
under this subsection; and 
‘‘(II) has not less than 1 year of 
experience making loans to startup, 
newly established, or growing small 
business concerns; and 
‘‘(ii) includes— 
‘‘(I) a private, nonprofit commu-
nity development corporation; 
‘‘(II) a consortium of private, 
nonprofit organizations or nonprofit 
community development corporations; 
and 
‘‘(III) an agency of or nonprofit 
entity established by a Native Amer-
ican Tribal Government; and 
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‘‘(B) the term ‘Program’ means the small 
business intermediary lending pilot program es-
tablished under paragraph (2). 
‘‘(2) ESTABLISHMENT.—There is established a 
3-year small business intermediary lending pilot pro-
gram, under which the Administrator may make di-
rect loans to eligible intermediaries, for the purpose 
of making loans to startup, newly established, and 
growing small business concerns. 
‘‘(3) PURPOSES.—The purposes of the Program 
are— 
‘‘(A) to assist small business concerns in 
areas suffering from a lack of credit due to 
poor economic conditions or changes in the fi-
nancial market; and 
‘‘(B) to establish a loan program under 
which the Administrator may provide loans to 
eligible intermediaries to enable the eligible 
intermediaries to provide loans to startup, 
newly established, and growing small business 
concerns for working capital, real estate, or the 
acquisition of materials, supplies, or equipment. 
‘‘(4) LOANS TO ELIGIBLE INTERMEDIARIES.— 
‘‘(A) APPLICATION.—Each eligible inter-
mediary desiring a loan under this subsection 
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shall submit an application to the Adminis-
trator that describes— 
‘‘(i) the type of small business con-
cerns to be assisted; 
‘‘(ii) the size and range of loans to be 
made; 
‘‘(iii) the interest rate and terms of 
loans to be made; 
‘‘(iv) the geographic area to be served 
and the economic, poverty, and unemploy-
ment characteristics of the area; 
‘‘(v) the status of small business con-
cerns in the area to be served and an anal-
ysis of the availability of credit; and 
‘‘(vi) the qualifications of the appli-
cant to carry out this subsection. 
‘‘(B) LOAN
LIMITS.—No loan may be 
made to an eligible intermediary under this sub-
section if the total amount outstanding and 
committed to the eligible intermediary by the 
Administrator would, as a result of such loan, 
exceed $3,000,000 during the participation of 
the eligible intermediary in the Program. 
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‘‘(C) LOAN
DURATION.—Loans made by 
the Administrator under this subsection shall be 
for a term of 20 years. 
‘‘(D) APPLICABLE
INTEREST
RATES.— 
Loans made by the Administrator to an eligible 
intermediary under the Program shall bear an 
annual interest rate equal to 1.00 percent. 
‘‘(E) FEES; COLLATERAL.—The Adminis-
trator may not charge any fees or require col-
lateral with respect to any loan made to an eli-
gible intermediary under this subsection. 
‘‘(F) DELAYED PAYMENTS.—The Adminis-
trator shall not require the repayment of prin-
cipal or interest on a loan made to an eligible 
intermediary under the Program during the 2- 
year period beginning on the date of the initial 
disbursement of funds under that loan. 
‘‘(G) 
MAXIMUM
PARTICIPANTS
AND 
AMOUNTS.—During each of fiscal years 2010, 
2011, and 2012 the Administrator may make 
loans under the Program— 
‘‘(i) to not more than 20 eligible inter-
mediaries; and 
‘‘(ii) in a total amount of not more 
than $60,000,000. 
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‘‘(5) LOANS TO SMALL BUSINESS CONCERNS.— 
‘‘(A) IN
GENERAL.—The Administrator, 
through an eligible intermediary, shall make 
loans to startup, newly established, and growing 
small business concerns for working capital, 
real estate, and the acquisition of materials, 
supplies, furniture, fixtures, and equipment. 
‘‘(B) MAXIMUM LOAN.—An eligible inter-
mediary may not make a loan under this sub-
section of more than $200,000 to any 1 small 
business concern. 
‘‘(C) APPLICABLE
INTEREST
RATES.—A 
loan made by an eligible intermediary to a small 
business concern under this subsection, may 
have a fixed or a variable interest rate, and 
shall bear an interest rate specified by the eligi-
ble intermediary in the application of the eligi-
ble intermediary for a loan under this sub-
section. 
‘‘(D) REVIEW
RESTRICTIONS.—The Ad-
ministrator may not review individual loans 
made by an eligible intermediary to a small 
business concern before approval of the loan by 
the eligible intermediary. 
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‘‘(6) TERMINATION.—The authority of the Ad-
ministrator to make loans under the Program shall 
terminate 3 years after the date of enactment of the 
Small Business Intermediary Lending Pilot Program 
Act of 2010.’’. 
(b) RULEMAKING AUTHORITY.—Not later than 180 
days after the date of enactment of this Act, the Adminis-
trator shall issue regulations to carry out section 7(l) of 
the Small Business Act, as amended by subsection (a). 
(c) AVAILABILITY OF FUNDS.—Any amounts pro-
vided to the Administrator for the purposes of carrying 
out section 7(l) of the Small Business Act, as amended 
by subsection (a), shall remain available until expended. 
Æ 
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