State Small Business Credit Initiative Renewal Act
Bill: H.R.1669 | Sponsor: Rep. Green, Al (D-TX)
Policy area: Commerce

Summary:
State Small Business Credit Initiative Renewal Act
This bill reauthorizes the State Small Business Credit Initiative through which the Department of the Treasury provides funding for participating states and tribal governments to support small business credit expansion programs that deliver loans or investments to eligible small businesses.
A participating state must provide Treasury with a description of (1) how minority depository institutions and community development financial institutions will be encouraged to participate in state programs, and (2) how the state will utilize funds to support small businesses in responding to and recovering from the economic effects of COVID-19.
The bill allocates specified portions of this funding for (1) states to support businesses that are owned by socially and economically disadvantaged individuals, (2) an incentive program to boost funding for states that demonstrate robust support for those businesses, (3) support for very small businesses (e.g., those with fewer than 10 employees), and (4) tribal governments.
Additionally, Treasury may provide funds to states, the Minority Business Development Agency, or other advisory firms to provide technical assistance to specified small businesses.

To amend the State Small Business Credit Initiative Act of 2010 to 
       respond to the COVID-19 pandemic, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``State Small Business Credit 
Initiative Renewal Act''.

SEC. 2. REAUTHORIZATION OF THE STATE SMALL BUSINESS CREDIT INITIATIVE 
              ACT OF 2010.

    (a) Reauthorization.--
            (1) In general.--The State Small Business Credit Initiative 
        Act of 2010 (12 U.S.C. 5701 et seq.) is amended--
                    (A) in section 3003--
                            (i) in subsection (b)--
                                    (I) by amending paragraph (1) to 
                                read as follows:
            ``(1) In general.--Not later than 30 days after the date of 
        enactment of subsection (d), the Secretary shall allocate 
        Federal funds to participating States so that each State is 
        eligible to receive an amount equal to what the State would 
        receive under the 2021 allocation, as determined under 
        paragraph (2).'';
                                    (II) in paragraph (2)--
                                            (aa) by striking ``2009'' 
                                        each place such term appears 
                                        and inserting ``2021'';
                                            (bb) by striking ``2008'' 
                                        each place such term appears 
                                        and inserting ``2020'';
                                            (cc) in subparagraph (A), 
                                        by striking ``The Secretary'' 
                                        and inserting ``With respect to 
                                        States other than Tribal 
                                        governments, the Secretary'';
                                            (dd) in subparagraph 
                                        (C)(i), by striking ``2007'' 
                                        and inserting ``2019''; and
                                            (ee) by adding at the end 
                                        the following:
                    ``(C) Separate allocation for tribal governments.--
                            ``(i) In general.--With respect to States 
                        that are Tribal governments, the Secretary 
                        shall determine the 2021 allocation by 
                        allocating $500,000,000 among the Tribal 
                        governments in the proportion the Secretary 
                        determines appropriate, including with 
                        consideration to available employment and 
                        economic data regarding each such Tribal 
                        government.
                            ``(ii) Notice of intent; timing of 
                        allocation.--With respect to allocations to 
                        States that are Tribal governments, the 
                        Secretary may--
                                    ``(I) require Tribal governments 
                                that wish to participate in the Program 
                                to file a notice of intent with the 
                                Secretary not later than 30 days after 
                                the date of enactment of subsection 
                                (d); and
                                    ``(II) notwithstanding paragraph 
                                (1), allocate Federal funds to 
                                participating Tribal governments not 
                                later than 60 days after the date of 
                                enactment of subsection (d).
                    ``(D) Employment data.--If the Secretary determines 
                that employment data with respect to a State is 
                unavailable from the Bureau of Labor Statistics of the 
                Department of Labor, the Secretary shall consider such 
                other economic and employment data that is otherwise 
                available for purposes of determining the employment 
                data of such State.''; and
                                    (III) by striking paragraph (3); 
                                and
                            (ii) in subsection (c)--
                                    (I) in paragraph (1)(A)(iii), by 
                                inserting before the period the 
                                following: ``that have delivered loans 
                                or investments to eligible 
                                businesses''; and
                                    (II) by amending paragraph (4) to 
                                read as follows:
            ``(4) Termination of availability of amounts not 
        transferred.--
                    ``(A) In general.--Any portion of a participating 
                State's allocated amount that has not been transferred 
                to the State under this section may be deemed by the 
                Secretary to be no longer allocated to the State and no 
                longer available to the State and shall be returned to 
                the general fund of the Treasury or reallocated as 
                described under subparagraph (B), if--
                            ``(i) the second \1/3\ of a State's 
                        allocated amount has not been transferred to 
                        the State before the end of the end of the 3-
                        year period beginning on the date that the 
                        Secretary approves the State for participation; 
                        or
                            ``(ii) the last \1/3\ of a State's 
                        allocated amount has not been transferred to 
                        the State before the end of the end of the 5-
                        year period beginning on the date that the 
                        Secretary approves the State for participation.
                    ``(B) Reallocation.--Any amount deemed by the 
                Secretary to be no longer allocated to a State and no 
                longer available to such State under subparagraph (A) 
                may be reallocated by the Secretary to other 
                participating States. In making such a reallocation, 
                the Secretary shall not take into account the minimum 
                allocation requirements under subsection (b)(2)(B) or 
                the specific allocation for Tribal governments 
                described under subsection (b)(2)(C).'';
                    (B) in section 3004(d), by striking ``date of 
                enactment of this Act'' each place it appears and 
                inserting ``date of the enactment of section 3003(d)'';
                    (C) in section 3005(b), by striking ``date of 
                enactment of this Act'' each place it appears and 
                inserting ``date of the enactment of section 3003(d)'';
                    (D) in section 3006(b)(4), by striking ``date of 
                enactment of this Act'' and inserting ``date of the 
                enactment of section 3003(d)'';
                    (E) in section 3007(b), by striking ``March 31, 
                2011'' and inserting ``March 31, 2022'';
                    (F) in section 3009, by striking ``date of 
                enactment of this Act'' each place it appears and 
                inserting ``date of the enactment of section 3003(d)''; 
                and
                    (G) in section 3011(b), by striking ``date of the 
                enactment of this Act'' each place it appears and 
                inserting ``date of the enactment of section 3003(d)''.
            (2) Appropriation.--
                    (A) In general.--There is hereby appropriated to 
                the Secretary of the Treasury, out of funds in the 
                Treasury not otherwise appropriated, $10,000,000,000 to 
                carry out the State Small Business Credit Initiative 
                established under the State Small Business Credit 
                Initiative Act of 2010, including to pay reasonable 
                costs of administering such Initiative.
                    (B) Rescission.--With respect to amounts 
                appropriated under subparagraph (A)--
                            (i) the Secretary of the Treasury shall 
                        complete all disbursements and remaining 
                        obligations before September 30, 2030; and
                            (ii) any amounts that remain unexpended 
                        (whether obligated or unobligated) on September 
                        30, 2030, shall be rescinded and deposited into 
                        the general fund of the Treasury.
    (b) Additional Allocations to Support Business Enterprises Owned 
and Controlled by Socially and Economically Disadvantaged 
Individuals.--Section 3003 of the State Small Business Credit 
Initiative Act of 2010 (12 U.S.C. 5702) is amended by adding at the end 
the following:
    ``(d) Additional Allocations to Support Business Enterprises Owned 
and Controlled by Socially and Economically Disadvantaged 
Individuals.--Of the amounts appropriated to carry out the Program, the 
Secretary shall--
            ``(1) ensure that $1,500,000,000 from funds allocated under 
        this section shall be expended for business enterprises owned 
        and controlled by socially and economically disadvantaged 
        individuals; and
            ``(2) allocate such amounts to States based on the needs of 
        business enterprises owned and controlled by socially and 
        economically disadvantaged individuals, as determined by the 
        Secretary, in each State, and not subject to the allocation 
        formula described under subsection (b).
    ``(e) Supporting Business Enterprises Owned and Controlled by 
Socially and Economically Disadvantaged Individuals.--In allocating 
funds to participating States under this section, the Secretary shall 
establish a minimum amount of support that a State shall provide to 
business enterprises owned and controlled by socially and economically 
disadvantaged individuals.
    ``(f) Incentive Allocations to Support Business Enterprises Owned 
and Controlled by Socially and Economically Disadvantaged 
Individuals.--Of the amounts appropriated to carry out the Program, the 
Secretary shall set aside $1,000,000,000 for an incentive program under 
which the Secretary shall increase the second \1/3\ and last \1/3\ 
allocations for States that demonstrate robust support, as determined 
by the Secretary, for business concerns owned and controlled by 
socially and economically disadvantaged individuals in the deployment 
of prior allocation amounts.''.
    (c) CDFI and MDI Participation Plan.--Section 3004 of the State 
Small Business Credit Initiative Act of 2010 (12 U.S.C. 5703) is 
amended by adding at the end the following:
    ``(e) CDFI and MDI Participation Plan.--The Secretary may not 
approve a State to be a participating State unless the State has 
provided the Secretary with a plan detailing how minority depository 
institutions and community development financial institutions will be 
encouraged to participate in State programs.''.
    (d) Pandemic Response Plan.--Section 3004 of the State Small 
Business Credit Initiative Act of 2010 (12 U.S.C. 5703), as amended by 
subsection (c), is further amended by adding at the end the following:
    ``(f) Pandemic Response Plan.--The Secretary may not approve a 
State to be a participating State unless the State has provided the 
Secretary with a description of how the State will expeditiously 
utilize funds to support small businesses, including business 
enterprises owned and controlled by socially and economically 
disadvantaged individuals, in responding to and recovering from the 
economic effects of the COVID-19 pandemic.''.
    (e) Technical Assistance.--
            (1) State technical assistance plan.--Section 3004 of the 
        State Small Business Credit Initiative Act of 2010 (12 U.S.C. 
        5703), as amended by subsection (d), is further amended by 
        adding at the end the following:
    ``(g) State Technical Assistance Plan.--
            ``(1) In general.--The Secretary may not approve a State to 
        be a participating State unless the State has provided the 
        Secretary with a technical assistance plan under which the 
        State will use a portion of the funds received under the 
        Program to provide legal, accounting, and financial advisory 
        services to very small businesses and business enterprises 
        owned and controlled by socially and economically disadvantaged 
        individuals applying for--
                    ``(A) State programs under the Program; and
                    ``(B) other State or Federal programs that support 
                small businesses.
            ``(2) Contracting.--Services described under paragraph (1) 
        may be contracted with legal, accounting, and financial 
        advisory firms, with priority given to business enterprises 
        owned and controlled by socially and economically disadvantaged 
        individuals.''.
            (2) Funding.--Section 3009 of the State Small Business 
        Credit Initiative Act of 2010 (12 U.S.C. 5708) is amended by 
        adding at the end the following:
    ``(e) Technical Assistance.--Of the amounts appropriated to carry 
out the Program, $500,000,000 may be used by the Secretary to--
            ``(1) provide funds to States to carry out technical 
        assistance plans described under section 3004(g);
            ``(2) transfer amounts to the Minority Business Development 
        Agency, so that the Agency may use such amounts in a manner the 
        Agency determines appropriate, including through contracting 
        with third parties, to provide technical assistance to business 
        enterprises owned and controlled by socially and economically 
        disadvantaged individuals applying to--
                    ``(A) State programs under the Program; and
                    ``(B) other State or Federal programs that support 
                small businesses; and
            ``(3) contract with legal, accounting, and financial 
        advisory firms (with priority given to business enterprises 
        owned and controlled by socially and economically disadvantaged 
        individuals), to provide technical assistance to business 
        enterprises owned and controlled by socially and economically 
        disadvantaged individuals applying to--
                    ``(A) State programs under the Program; and
                    ``(B) other State or Federal programs that support 
                small businesses.''.
    (f) Multi-State Participation Program.--Section 3009 of the State 
Small Business Credit Initiative Act of 2010 (12 U.S.C. 5708), as 
amended by subsection (d)(2), is further amended by adding at the end 
the following:
    ``(f) Multi-State Participation Program.--The Secretary may 
establish a multi-State participation program under which--
            ``(1) the Secretary determines which State programs are 
        similar to each other, with respect to eligibility criteria and 
        such other criteria as the Secretary determines appropriate; 
        and
            ``(2) a State may elect to automatically deem a person 
        eligible for a State program if the person is already 
        participating in another State's State program that the 
        Secretary has determined is similar under paragraph (1).''.
    (g) Application of the Military Lending Act.--Section 3004 of the 
State Small Business Credit Initiative Act of 2010 (15 U.S.C. 5702), as 
amended by subsection (d)(1), is further amended by adding at the end 
the following:
    ``(h) Application of the Military Lending Act.--The Secretary may 
not approve a State to be a participating State unless the State has 
agreed that no lending activity supported by amounts received by the 
State under the Program would result in interest rates being charged at 
an annualized percentage rate above 36 percent, as determined in 
accordance with section 987(b) of title 10, United States Code 
(commonly known as the `Military Lending Act').''.
    (h) Inclusion of Tribal Governments.--Section 3002(10) of the State 
Small Business Credit Initiative Act of 2010 (12 U.S.C. 5701(10)) is 
amended--
            (1) in subparagraph (C), by striking ``and'' at the end;
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(E) a Tribal government.''.
    (i) Definitions.--Section 3002 of the State Small Business Credit 
Initiative Act of 2010 (12 U.S.C. 5701) is amended by adding at the end 
the following:
            ``(15) Business enterprise owned and controlled by socially 
        and economically disadvantaged individuals.--The term `business 
        enterprise owned and controlled by socially and economically 
        disadvantaged individuals' means a business that--
                    ``(A) if privately owned, 51 percent is owned by 
                one or more socially and economically disadvantaged 
                individuals;
                    ``(B) if publicly owned, 51 percent of the stock is 
                owned by one or more socially and economically 
                disadvantaged individuals; and
                    ``(C) in the case of a mutual institution, a 
                majority of the Board of Directors, account holders, 
                and the community which the institution services is 
                predominantly comprised of socially and economically 
                disadvantaged individuals.
            ``(16) Community development financial institution.--The 
        term `community development financial institution' has the 
        meaning given that term under section 103 of the Riegle 
        Community Development and Regulatory Improvement Act of 1994.
            ``(17) Minority depository institution.--The term `minority 
        depository institution' has the meaning given that term under 
        section 308(b) of the Financial Institutions Reform, Recovery, 
        and Enforcement Act of 1989.
            ``(18) Socially and economically disadvantaged 
        individual.--The term `socially and economically disadvantaged 
        individual' means an individual who is a socially disadvantaged 
        individual or an economically disadvantaged individual, as such 
        terms are defined, respectively, under section 8 of the Small 
        Business Act (15 U.S.C. 637) and the regulations thereunder.
            ``(19) Tribal government.--The term `Tribal government' 
        means a government of an Indian Tribe listed on the list of 
        recognized Tribes published by the Secretary of the Interior 
        under section 104 of the Federally Recognized Indian Tribe List 
        Act of 1994 (25 U.S.C. 5131).''.
    (j) Rule of Application.--The amendments made by this section shall 
apply with respect to funds appropriated under this section and funds 
appropriated on and after the date of enactment of this section.
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