To amend the Small Business Investment Act of 1958 to increase maximum loan amounts under the program in title V of that Act, to provide temporary authority for debt refinancing of commercial real estate, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Asset Investment and 
Modernization (AIM) Act of 2010''.

SEC. 2. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.

    Section 502(2)(A) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)(A)) is amended--
            (1) in clause (i), by striking ``$1,500,000'' and inserting 
        ``$5,000,000'';
            (2) in clause (ii), by striking ``$2,000,000'' and 
        inserting ``$5,000,000'';
            (3) in clause (iii), by striking ``$4,000,000'' and 
        inserting ``$5,500,000'';
            (4) in clause (iv), by striking ``$4,000,000'' and 
        inserting ``$5,500,000''; and
            (5) in clause (v), by striking ``$4,000,000'' and inserting 
        ``$5,500,000''.

SEC. 3. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS 
              LOAN PROGRAM.

    Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 
696) is amended by adding at the end the following:
            ``(8) Temporary authority for debt refinancing of 
        commercial real estate.--
                    ``(A) In general.--During the period beginning on 
                the date of enactment of this paragraph and ending on 
                September 30, 2012, notwithstanding paragraph (7), the 
                Administrator may approve, for financing under this 
                title, the refinancing of indebtedness that is secured 
                by a lien on commercial real estate or equipment of a 
                small business concern under such terms and conditions 
                as the Administrator determines appropriate, except at 
                a minimum such terms and conditions shall include the 
                following:
                            ``(i) The existing indebtedness is maturing 
                        not more than one year after the loan approval 
                        date.
                            ``(ii) The proceeds of the existing 
                        indebtedness were used to acquire land, 
                        including a building situated thereon, to 
                        construct a building thereon, or to purchase 
                        equipment.
                            ``(iii) The small business concern has been 
                        current on all payments due on the existing 
                        indebtedness for a period beginning on a date 
                        that is not less than 1 year before the date of 
                        refinancing and ending on the date of 
                        refinancing.
                            ``(iv) At the time of refinancing, the lien 
                        shall be assigned or released in a manner that 
                        ensures that the financing under this title is 
                        in the same lien position as the existing 
                        indebtedness.
                            ``(v) The existing indebtedness was 
                        incurred for the benefit of the small business 
                        concern.
                            ``(vi) The financing under this title will 
                        be used only for refinancing existing 
                        indebtedness or costs relating to such 
                        refinancing.
                            ``(vii) The amount being refinanced may not 
                        exceed 90 percent of the appraised value of the 
                        commercial real estate or equipment on the date 
                        of refinancing or 100 percent of the 
                        outstanding principal amount of the existing 
                        indebtedness, whichever is less, plus allowable 
                        closing costs as determined by the 
                        Administrator.
                            ``(viii) Notwithstanding any other 
                        provision of this title, for a refinancing 
                        under this paragraph--
                                    ``(I) not less than 50 percent of 
                                the appraised value of the commercial 
                                real estate or equipment on the date of 
                                refinancing shall come from the 
                                institutions described in subclauses 
                                (I), (II) or (III) of paragraph 
                                (3)(B)(i): Provided, That if the 
                                indebtedness being refinanced pursuant 
                                to this paragraph is held by such an 
                                institution, or an affiliate thereof, 
                                that is providing funds for the 
                                refinancing, the institution shall 
                                contribute not less than 70 percent of 
                                such appraised value of the commercial 
                                real estate or equipment; and
                                    ``(II) the remaining funds needed 
                                for the refinancing (including closing 
                                costs) shall come from the development 
                                company.
                            ``(ix) In addition to the other fees 
                        imposed under this title, the Administrator 
                        shall assess, collect, and retain such annual 
                        fees in amounts necessary to reduce to zero the 
                        cost (as that term is defined in section 502 of 
                        the Federal Credit Reform Act of 1990) to the 
                        Administrator of making guarantees under the 
                        authority of section 503(a) with respect to 
                        refinancings under this paragraph.
                            ``(x) The temporary fee elimination 
                        authorized under section 501(b) of the American 
                        Recovery and Reinvestment Act of 2009, Public 
                        Law 111-5, shall not apply to any refinancing 
                        made under this paragraph.
                            ``(xi) No fee reduction or elimination 
                        applicable to loans under this title shall 
                        apply to loans under this paragraph.
                            ``(xii) No portion of the indebtedness may 
                        be subject to a guarantee by a Federal agency.
                            ``(xiii) The development company may charge 
                        the small business concern a processing fee of 
                        up to 50 basis points more than the amount that 
                        the Administrator authorizes under section 
                        120.971(a)(1) of title 13, Code of Federal 
                        Regulations, as in effect on January 1, 2010.
                    ``(B) Total amount of loans.--The Administrator may 
                provide not more than a total of $7,500,000,000 of 
                financing under this paragraph for each fiscal year.
                    ``(C) Nondelegation.--Notwithstanding section 
                508(e) of this title, the Administrator may not permit 
                a premier certified lender to approve or disapprove an 
                application for assistance under this paragraph.
                    ``(D) Term appointments.--
                            ``(i) To carry out the authority under this 
                        paragraph, the Administrator may authorize term 
                        appointments within the Administration under 
                        subchapter I of chapter 33 of title 5, United 
                        States Code, for a period of not less than 1 
                        year and not more than 6 years.
                            ``(ii) Notwithstanding chapter 33 of title 
                        5, United States Code, or any other provision 
                        of law relating to the examination, 
                        certification, and appointment of individuals 
                        in the competitive service, the Administrator 
                        may convert an employee serving under a term 
                        appointment to a permanent appointment in the 
                        competitive service within the Administration 
                        without further competition if--
                                    ``(I) such individual was appointed 
                                under open, competitive examination 
                                under subchapter I of chapter 33 of 
                                title 5, United States Code, to the 
                                term position;
                                    ``(II) the announcement for the 
                                term appointment from which the 
                                conversion is made stated that there 
                                was potential for subsequent conversion 
                                to a career-conditional or career 
                                appointment;
                                    ``(III) the employee has completed 
                                at least 2 years of current continuous 
                                service under a term appointment in the 
                                competitive service;
                                    ``(IV) the employee's performance 
                                under such term appointment was at 
                                least fully successful or equivalent; 
                                and
                                    ``(V) the position to which such 
                                employee is being converted under this 
                                section is in the same occupational 
                                series, is in the same geographic 
                                location, and provides no greater 
                                promotion potential than the term 
                                position for which the competitive 
                                examination was conducted.
                            ``(iii) Notwithstanding chapter 33 of title 
                        5, United States Code, or any other provision 
                        of law relating to the examination, 
                        certification, and appointment of individuals 
                        in the competitive service, the Administrator 
                        may convert an employee serving under a term 
                        appointment to a permanent appointment in the 
                        competitive service within the Administration 
                        through internal competitive promotion 
                        procedures if the conditions under subclauses 
                        (I) through (IV) of subparagraph (D)(ii) are 
                        met.
                            ``(iv) An employee converted under this 
                        subparagraph becomes a career-conditional 
                        employee, unless the employee has otherwise 
                        completed the service requirements for career 
                        tenure.
                            ``(v) An employee converted to career or 
                        career-conditional employment under this 
                        subparagraph acquires competitive status upon 
                        conversion.
                    ``(E) Elimination of pension offset for certain 
                rehired federal retirees.--
                            ``(i) In general.--To carry out the 
                        authority under this paragraph, the 
                        Administrator may waive the application of 
                        section 8344 or 8468 of title 5, United States 
                        Code, on a case-by-case basis for employment of 
                        an annuitant.
                            ``(ii) Procedures.--The Administrator shall 
                        prescribe procedures for the exercise of 
                        authority under this subparagraph, including--
                                    ``(I) criteria for any exercise of 
                                authority; and
                                    ``(II) procedures for a delegation 
                                of authority.
                            ``(iii) Effect of waiver.--An employee as 
                        to whom a waiver under this subparagraph is in 
                        effect shall not be considered an employee for 
                        purposes of subchapter III of chapter 83, or 
                        chapter 84, of title 5, United States Code.
                    ``(F) Emergency rulemaking authority.--
                            ``(i) The Administrator shall--
                                    ``(I) not later than 90 days after 
                                the date of enactment of the Small 
                                Business Asset Investment and 
                                Modernization (AIM) Act of 2010, 
                                without providing notice or opportunity 
                                for comment, issue interim regulations 
                                implementing this paragraph; and
                                    ``(II) not later than 180 days 
                                after the date of enactment of the 
                                Small Business Asset Investment and 
                                Modernization (AIM) Act of 2010, after 
                                providing notice and opportunity for 
                                comment, issue final regulations 
                                implementing this paragraph.
                            ``(ii) The interim regulations issued under 
                        clause (i)(I) shall cease to be effective on 
                        the date that the Administrator issues final 
                        regulations under clause (i)(II).''.

Summary: Small Business Asset Investment and Modernization (AIM) Act of 2010 - Amends the Small Business Investment Act of 1958 concerning the 504 program (Small Business Administration [SBA] financings to small businesses through certified development companies) to increase maximum program loan amounts.

Authorizes the Administrator of the SBA, from the date of enactment of this Act through FY2012, to approve under such program the refinancing of indebtedness that is secured by a lien on commercial real estate or equipment of a small business, under specified terms and conditions. Limits to $7.5 billion the total amount of such financing in a fiscal year. Authorizes the Administrator, in order to carry out such program, to make personnel appointments of at least one year and not more than six years. Allows the Administrator to eliminate the pension offset for the reemployment of retired federal employees for such purposes.