Small Business Lending Improvements Act of 2007

Bill: 110-hr-1332
Sponsor: Rep. Bean, Melissa L. [D-IL-8]
Introduced: 2007-03-06 in the House
Policy area: Commerce
Subjects: Access to health care
Administrative procedure
Armed Forces and National Security
Armed forces reserves
Bank reserves
Bonds
Business ethics
Community development
Conflict of interests
Corporation directors
Dental care
Depressed areas
Economics and Public Finance
Energy
Energy conservation
Energy efficiency
Environmental Protection
Federally-guaranteed loans
Fees
Finance and Financial Sector
Foreclosure
Government Operations and Politics
Health
Health care industry
Housing and Community Development
Infrastructure
Job creation
Labor and Employment
Law
Loan defaults
Minorities
Minority business enterprises
Mortgages
Native Americans
Nonprofit organizations
Psychiatry
Psychotherapy
Risk
Rural economic development
Small Business Administration
Small business
Social Welfare
Urban affairs
Veterans' benefits
Veterans' loans
Women in business

Summary:
action_date: 2007-03-06
text: 
Small Business Lending Improvements Act of 2007 - Amends the Small Business Act and the Small Business Investment Act of 1958 relating to the 7(a) (business start-up loan) and the 504 (certified development company economic development loan) programs to, among other things: (1) direct the Administrator of the Small Business Administration (SBA) to carry out a rural lending outreach program and a community express program for loans of $250,000 or less; (2) direct the Administrator to carry out a Medical Professionals in Designated Shortage Areas program and an Increased Veteran Participation program; (3) revise eligibility requirements for development company designation as a certified development company (CDC); (4) require certain CDCs to contract for the foreclosure and liquidation of defaulted small business loans; and (5) authorize SBA loans for projects which reduce energy consumption by at least ten percent.

action_date: 2007-04-20
text: 
Small Business Lending Improvements Act of 2007 - 
Title I: 7(A) Program 
- (Sec. 101) Amends the Small Business Act relating to the 7(a) (business start-up loan) program to authorize the Administrator of the Small Business Administration (SBA) to offset (contribute to) borrower and lender fees associated with 7(a) loans when funds are made available to the SBA for such contributions. Requires the quarterly adjustment of any contributions made.
 
(Sec. 102) Directs the Administrator to carry out a rural lending outreach program to provide up to an 85 percent guaranty for loans of $250,000 or less made by lenders to small businesses in rural areas. Requires the SBA to approve or decline such loan within 36 hours.
 
(Sec. 103) Directs the Administrator to carry out a permanent Community Express Program (currently a pilot program) for loans of $250,000 or less to small businesses: (1) whose majority ownership is held by women, socially or economically disadvantaged individuals, or veterans; or (2) located in a low- or moderate-income area. Requires the SBA to approve or decline such loans within 36 hours.
 
(Sec. 104) Requires the Administrator to carry out a Medical Professionals in Designated Shortage Areas Program to provide loans to small businesses that provide medical, dental, or psychiatric services and are located in a health professional shortage area (as defined under the Public Health Service Act). Directs the SBA to guarantee 90 percent of such loan, and reduces by half the borrower and lender fees.
 
(Sec. 105) Directs the Administrator to carry out an Increased Veteran Participation Program to small businesses whose majority ownership is held by veterans. Directs the SBA to guarantee 90 percent of such loan, and eliminates the borrower and lender fees.
 
(Sec. 106) Directs the Administrator to establish, and permit a lender making a 7(a) loan to use, an alternative size standard (such as business net worth and average net income) for determining loan eligibility.
 
(Sec. 107) Requires the Administrator to carry out a program to provide support to regional SBA offices in assisting small business lenders who do not participate in the SBA's preferred lender program to participate in the 7(a) program.
 

Title II: Certified Development Company Economic Development Loan Program 
- (Sec. 201) Amends the Small Business Investment Act of 1958 (SBIA) to designate the financing program authorized under title IV of the SBIA as the Certified Development Company Economic Development Loan Program.
 
(Sec. 203) Provides eligibility requirements for designation as a certified development company (CDC) under the SBIA, including: (1) less than 500 employees; (2) a purpose of fostering economic development to create and preserve jobs and stimulate private investment; (3) nonprofit status; (4) in good standing with all local laws; (5) full-time professional management and staff; (6) a specific area of operations; and (7) ethical requirements, including conflict of interest standards.
 
(Sec. 204) Defines a &quot;rural area&quot; for SBIA purposes as any area other than a city or town with a population greater than 50,000 and the urbanized area contiguous and adjacent to such city or town.
 
(Sec. 205) Includes as an SBIA public policy goal the expansion of businesses in low-income communities that would be eligible for new market tax credit investments under the Internal Revenue Code.
 
(Sec. 206) Allows the ownership interest of two or more owners to be combined to determine whether a small business is at least 51 percent owned by minorities, women, or veterans in order to qualify for assistance as a group listed in the public policy goals.
 
(Sec. 207) Permits an SBIA borrower to refinance a limited amount of existing indebtedness that was not previously guaranteed by the SBA.
 
(Sec. 208) Allows SBIA borrowers to provide more than the required amount of equity and to use the excess equity to reduce the amount of the first mortgage loan up to, but not less than, the amount of the SBA-guaranteed portion of the loan.
 
(Sec. 209) Requires any CDC which does not foreclose and liquidate defaulted loans under the SBIA to contract with a qualified third party to do so. Directs the SBA to reimburse a CDC for expenses paid in connection with such foreclosure and liquidation activities if such expenses were either approved in advance or were reasonable and appropriate.
 
(Sec. 210) Allows SBIA borrowers to include loan and debenture closing costs, other than borrower's attorney fees, in the debenture.
 
(Sec. 211) Allows a borrower to obtain maximum SBIA financing and also obtain a 7(a) loan in the maximum amount permitted under that program.
 
(Sec. 212) Authorizes SBIA loans for projects which reduce energy consumption by at least ten percent. Makes such projects eligible for the $4 million debenture under the CDC Economic Development Loan Program.
 
(Sec. 214) Extends through FY2008 the period during which CDCs will be permitted to: (1) base their loan loss reserves on the outstanding balance of debentures; and (2) use an alternative risk-based methodology to calculate such reserves.

action_date: 2007-04-25
text: 
Small Business Lending Improvements Act of 2007 - 
Title I: 7(A) Program 
- (Sec. 101) Amends the Small Business Act relating to the 7(a) (business start-up loan) program to authorize the Administrator of the Small Business Administration (SBA) to offset (contribute to) borrower and lender fees associated with 7(a) loans when funds are made available to the SBA for such contributions. Requires the quarterly adjustment of any contributions made.
 
(Sec. 102) Directs the Administrator to carry out a rural lending outreach program to provide up to an 85 percent guaranty for loans of $250,000 or less made by lenders to small businesses in rural areas. Requires the SBA to approve or decline such loan within 36 hours.
 
(Sec. 103) Directs the Administrator to carry out a permanent Community Express Program (currently a pilot program) for loans of $250,000 or less to small businesses: (1) whose majority ownership is held by women, members of qualified Indian tribes, socially or economically disadvantaged individuals, veterans, or members of the reserves; or (2) located in a low- or moderate-income area. Requires the SBA to approve or decline such loans within 36 hours.
 
(Sec. 104) Requires the Administrator to carry out a Medical Professionals in Designated Shortage Areas Program to provide loans to small businesses that provide medical, dental, or psychiatric services and are located in a health professional shortage area (as defined under the Public Health Service Act). Directs the SBA to guarantee 90 percent of such loan, and reduces by half the borrower and lender fees.
 
(Sec. 105) Directs the Administrator to carry out an Increased Veteran Participation Program to small businesses whose majority ownership is held by veterans or members of the reserves. Directs the SBA to guarantee 90 percent of such loan, and eliminates the borrower and lender fees.
 
(Sec. 106) Directs the Administrator to establish, and permit a lender making a 7(a) loan to use, an alternative size standard (such as business net worth and average net income) for determining loan eligibility.
 
(Sec. 107) Requires the Administrator to carry out a program to provide support to regional SBA offices in assisting small business lenders who do not participate in the SBA's preferred lender program to participate in the 7(a) program.
 

Title II: Certified Development Company Economic Development Loan Program 
- (Sec. 201) Amends the Small Business Investment Act of 1958 (SBIA) to designate the financing program authorized under title IV of the SBIA as the Certified Development Company Economic Development Loan Program.
 
(Sec. 203) Provides eligibility requirements for designation as a certified development company (CDC) under the SBIA, including: (1) less than 500 employees; (2) a purpose of fostering economic development to create and preserve jobs and stimulate private investment; (3) nonprofit status; (4) in good standing with all local laws; (5) full-time professional management and staff; (6) a specific area of operations; and (7) ethical requirements, including conflict of interest standards.
 
(Sec. 204) Defines a &quot;rural area&quot; for SBIA purposes as any area other than a city or town with a population greater than 50,000 and the urbanized area contiguous and adjacent to such city or town.
 
(Sec. 205) Includes as an SBIA public policy goal the expansion of businesses in low-income communities that would be eligible for new market tax credit investments under the Internal Revenue Code.
 
(Sec. 206) Allows the ownership interest of two or more owners to be combined to determine whether a small business is at least 51 percent owned by minorities, women, or veterans in order to qualify for assistance as a group listed in the public policy goals.
 
(Sec. 207) Permits an SBIA borrower to refinance a limited amount of existing indebtedness that was not previously guaranteed by the SBA.
 
(Sec. 208) Allows SBIA borrowers to provide more than the required amount of equity and to use the excess equity to reduce the amount of the first mortgage loan up to, but not less than, the amount of the SBA-guaranteed portion of the loan.
 
(Sec. 209) Requires any CDC which does not foreclose and liquidate defaulted loans under the SBIA to contract with a qualified third party to do so. Directs the SBA to reimburse a CDC for expenses paid in connection with such foreclosure and liquidation activities if such expenses were either approved in advance or were reasonable and appropriate.
 
(Sec. 210) Allows SBIA borrowers to include loan and debenture closing costs, other than borrower's attorney fees, in the debenture.
 
(Sec. 211) Allows a borrower to obtain maximum SBIA financing and also obtain a 7(a) loan in the maximum amount permitted under that program.
 
(Sec. 212) Authorizes SBIA loans for projects which: (1) reduce energy consumption by at least ten percent; or (2) increase the use of design to produce buildings that reduce the use of non-renewable resources, minimize environmental impact, and relate with the natural environment. Makes such projects eligible for the $4 million debenture under the CDC Economic Development Loan Program.
 
(Sec. 214) Extends through FY2008 the period during which CDCs will be permitted to: (1) base their loan loss reserves on the outstanding balance of debentures; and (2) use an alternative risk-based methodology to calculate such reserves.


Legislative actions:
action_date: 2007-05-01
text: Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 129.
action_date: 2007-04-30
text: Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
action_date: 2007-04-26
text: Received in the Senate.
action_date: 2007-04-25
text: The Clerk was authorized to correct section numbers, punctuation, and cross references, and to make other necessary technical and conforming corrections in the engrossment of H.R. 1332.
action_date: 2007-04-25
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2007-04-25
text: On passage Passed by recorded vote: 380 - 45 (Roll no. 263).
action_date: 2007-04-25
text: Passed/agreed to in House: On passage Passed by recorded vote: 380 - 45 (Roll no. 263).
action_date: 2007-04-25
text: On motion to recommit with instructions Failed by the Yeas and Nays: 197 - 224 (Roll no. 262). (consideration: CR H4118-4119; text: CR H4118)
action_date: 2007-04-25
text: DEBATE - The House proceeded with 10 minutes of debate on the McCrery motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with amendments inserting a new paragraph clarifying that the Administrator shall consider any small business concern that can demonstrate that it is adversely affected by a raise in the Federal minimum wage to be economically disadvantaged.
action_date: 2007-04-25
text: Mr. McCrery moved to recommit with instructions to Small Business.
action_date: 2007-04-25
text: The House adopted the amendment in the nature of a substitute as agreed to by the Committee of the Whole House on the state of the Union. (text: CR H4113-4116)
action_date: 2007-04-25
text: The previous question was ordered pursuant to the rule. (consideration: CR H4105-4106)
action_date: 2007-04-25
text: The House rose from the Committee of the Whole House on the state of the Union to report H.R. 1332.
action_date: 2007-04-25
text: DEBATE - Pursuant to the provisions of H.Res. 330, the Committee of the Whole proceeded with 10 minutes of debate on the Inslee amendment.
action_date: 2007-04-25
text: DEBATE - Pursuant to the provisions of H.Res. 330, the Committee of the Whole proceeded with 10 minutes of debate on the Cuellar amendment.
action_date: 2007-04-25
text: DEBATE - Pursuant to the provisions of H.Res. 330, the Committee of the Whole proceeded with 10 minutes of debate on the Matheson amendment.
action_date: 2007-04-25
text: DEBATE - Pursuant to the provisions of H.Res. 330, the Committee of the Whole proceeded with 10 minutes of debate on the Matheson amendment.
action_date: 2007-04-25
text: GENERAL DEBATE - The Committee of the Whole proceeded with one hour of general debate on H.R. 1332.
action_date: 2007-04-25
text: The Speaker designated the Honorable Ed Pastor to act as Chairman of the Committee.
action_date: 2007-04-25
text: House resolved itself into the Committee of the Whole House on the state of the Union pursuant to H. Res. 330 and Rule XVIII.
action_date: 2007-04-25
text: Rule provides for consideration of H.R. 1332 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. All points of order against the bill are waived except those arising under clause 9 or 10 of rule XXI. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Small Business now printed in the bill.
action_date: 2007-04-25
text: Considered under the provisions of rule H. Res. 330. (consideration: CR H4108-4120)
action_date: 2007-04-25
text: Rule H. Res. 330 passed House.
action_date: 2007-04-24
text: Rules Committee Resolution H. Res. 330 Reported to House. Rule provides for consideration of H.R. 1332 with 1 hour of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Specified amendments are in order. All points of order against the bill are waived except those arising under clause 9 or 10 of rule XXI. It shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule the amendment in the nature of a substitute recommended by the Committee on Small Business now printed in the bill.
action_date: 2007-04-20
text: Placed on the Union Calendar, Calendar No. 64.
action_date: 2007-04-20
text: Reported (Amended) by the Committee on Small Business. H. Rept. 110-104.
action_date: 2007-04-20
text: Reported (Amended) by the Committee on Small Business. H. Rept. 110-104.
action_date: 2007-03-15
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2007-03-15
text: Committee Consideration and Mark-up Session Held.
action_date: 2007-03-08
text: Committee Hearings Held.
action_date: 2007-03-06
text: Referred to the House Committee on Small Business.
action_date: 2007-03-06
text: Introduced in House
action_date: 2007-03-06
text: Introduced in House