SSBCI Improvement Act

Bill: 117-s-4476
Sponsor: full_name: Sen. Klobuchar, Amy [D-MN]
Introduced: 2022-06-23
Policy area: Commerce
Latest action: action_date: 2022-06-23
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2022-06-23
action_desc: Introduced in Senate
text: <p><b>SSBCI Improvement Act</b></p> <p>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.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4476 IN THE SENATE OF THE UNITED STATES June 23, 2022 Ms. Klobuchar (for herself and Mr. Warner ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL 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.

1. Short title This Act may be cited as the SSBCI Improvement Act . 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) .