SSBCI Improvement Act
Bill: S.4476 | Sponsor: Sen. Klobuchar, Amy (D-MN)
Policy area: Commerce

Summary:
SSBCI Improvement Act
This bill modifies how funds are transferred to (and recouped from) states under the State Small Business Credit Initiative. For example, if a state's allocated amount is less than or equal to $1,000,000 the Department of the Treasury must provide the full amount in a single transfer.

To amend the State Small Business Credit Initiative Act of 2010 to 
 modify allocations under the State Small Business Credit Initiative, 
                        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 ``SSBCI Improvement Act''.

SEC. 2. TECHNICAL AMENDMENTS TO THE STATE SMALL BUSINESS CREDIT 
              INITIATIVE ACT OF 2010.

    (a) Exception for Allocated Amounts of Not More Than $1,000,000.--
            (1) In general.--Section 3003(c)(1) of the State Small 
        Business Credit Initiative Act of 2010 (12 U.S.C. 5702(c)(1)) 
        is amended--
                    (A) in subparagraph (A)(i), by inserting ``, except 
                as provided in subparagraph (D)'' before the semicolon 
                at the end; and
                    (B) by amending subparagraph (D) to read as 
                follows:
                    ``(D) Exceptions.--The Secretary--
                            ``(i) may, in the Secretary's discretion, 
                        transfer the full amount of the participating 
                        State's allocated amount to the State in a 
                        single transfer if the participating State 
                        applies to the Secretary for approval to use 
                        the full amount of the allocation as collateral 
                        for a qualifying loan or swap funding facility; 
                        and
                            ``(ii) shall transfer the full amount of 
                        the participating State's allocated amount, if 
                        the amount is not more than $1,000,000, to the 
                        State in a single transfer upon approval under 
                        section 3004 and subject to the requirements of 
                        paragraph (7).''.
            (2) Use of transferred funds.--Section 3003(c)(3) of the 
        State Small Business Credit Initiative Act of 2010 (12 U.S.C. 
        5702(c)(3)) is amended--
                    (A) in subparagraph (C)--
                            (i) by inserting ``if the allocated amount 
                        under subsection (b) is greater than 
                        $1,000,000,'' before ``in the case of''; and
                            (ii) by striking ``or'' at the end;
                    (B) in subparagraph (D)--
                            (i) by inserting ``if the allocated amount 
                        under subsection (b) is more than $1,000,000,'' 
                        before ``in the case of''; and
                            (ii) by striking the period at the end and 
                        inserting ``; or''; and
                    (C) by adding at the end the following:
                    ``(E) if the allocated amount under subsection (b) 
                is not more than $1,000,000, for paying administrative 
                costs incurred by the State in implementing an approved 
                State program in an amount not to exceed 3.6 percent of 
                the allocated amount.''.
            (3) Recoupment.--Section 3003(c) of the State Small 
        Business Credit Initiative Act of 2010 (12 U.S.C. 5702(c)) is 
        amended by adding at the end the following:
            ``(7) Recoupment of allocated amounts for certain 
        participating states.--
                    ``(A) In general.--With respect to a participating 
                State for which the Secretary allocated an amount less 
                than or equal to $1,000,000, the Secretary may recoup 
                an amount of the participating State's allocated amount 
                as follows:
                            ``(i) If, not later than the last day of 
                        the 3-year period beginning on the date of 
                        approval under section 3004, an amount equal to 
                        80 percent of \1/3\ of the allocated amount has 
                        not been certified by the State as expended, 
                        obligated, or transferred, the amount recouped 
                        shall be equal to \2/3\ of the allocated 
                        amount.
                            ``(ii) If, not later than the last day of 
                        the 6-year period beginning on the date of 
                        approval under section 3004, an amount equal to 
                        80 percent of \2/3\ of the allocated amount has 
                        not been certified by the State as expended, 
                        obligated, or transferred, the amount shall be 
                        equal to \1/3\ of the allocated amount.
                    ``(B) Reallocation.--
                            ``(i) In general.--Any amount recouped 
                        under this paragraph may be reallocated by the 
                        Secretary to a Tribal government that was not a 
                        participating State subject to recoupment under 
                        this paragraph.
                            ``(ii) Consideration.--In making a 
                        reallocation under clause (i), the Secretary 
                        shall not take into account the specific 
                        allocation for Tribal governments described in 
                        subsection (b)(2)(D).''.
            (4) Applicability.--The amendments made by this subsection 
        shall apply with respect to an allocation made to a 
        participating State under the State Small Business Credit 
        Initiative Act of 2010 (12 U.S.C. 5701 et seq.) for fiscal year 
        2022 and each fiscal year thereafter.
    (b) Extension of Certain Periods.--The State Small Business Credit 
Initiative Act of 2010 (12 U.S.C. 5701 et seq.) is amended--
            (1) in section 3004(d)(2) (12 U.S.C. 5703(d)(2)), by 
        striking ``12 months'' and inserting ``18 months'';
            (2) in section 3007(d) (12 U.S.C. 5706(d)), by striking 
        ``the first March 31'' and all that follows and inserting 
        ``March 31, 2031.''; and
            (3) in section 3009(c) (12 U.S.C. 5707(c)), by striking 
        ``7-year'' and inserting ``11-year''.
    (c) Technical Amendment.--Section 3003 of the State Small Business 
Credit Initiative Act of 2010 (12 U.S.C. 5702) is amended--
            (1) in subsection (b)(2)--
                    (A) by redesignating subparagraph (D) as 
                subparagraph (E); and
                    (B) by redesignating the second subparagraph (C) 
                (relating to separate allocation for Tribal 
                governments) as subparagraph (D); and
            (2) in subsection (c)(4)(B), by striking ``subsection 
        (b)(2)(C)'' and inserting ``subsection (b)(2)(D)''.
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