Source: http://law2.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section696&num=0&edition=prelim
Timestamp: 2019-04-22 10:17:21+00:00

Document:
(1) Use of proceeds.-The proceeds of any such loan shall be used solely by the borrower to assist 1 or more identifiable small business concerns and for a sound business purpose approved by the Administration.
(v) $5,500,000 for each project that generates renewable energy or renewable fuels, such as biodiesel or ethanol production.
(ii) all of the production facilities of which are located in the United States.
(A) In general.-Any development company assisted under this section or section 697 of this title must meet the criteria established by the Administration, including the extent of participation to be required or amount of paid-in capital to be used in each instance as is determined to be reasonable by the Administration.
(IV) the small business concern (or its owners, stockholders, or affiliates) receiving assistance through a body authorized by this subchapter.
(ii) Funding from institutions.-Not less than 50 percent of the total cost of any project financed pursuant to clauses 1 (i), (ii), or (iii) of subparagraph (C) shall come from the institutions described in subclauses (I), (II), and (III) of clause (i).
(iv) at least 10 percent of the total cost of the project financed, in all other circumstances, at the discretion of the development company.
(D) Seller financing.-Seller-provided financing may be used to meet the requirements of subparagraph (B), if the seller subordinates the interest of the seller in the property to the debenture guaranteed by the Administration.
(i) In general.-The collateral provided by the small business concern shall generally include a subordinate lien position on the property being financed under this subchapter, and is only 1 of the factors to be evaluated in the credit determination. Additional collateral shall be required only if the Administration determines, on a case-by-case basis, that additional security is necessary to protect the interest of the Government.
(bb) may be required by the Administration or the lender before disbursement of the loan if the estimated value of that property is equal to or less than the Federal banking regulator appraisal threshold, and such appraisal is necessary for appropriate evaluation of creditworthiness.
(II) Federal banking regulator appraisal threshold defined.-For purposes of this clause, the term "Federal banking regulator appraisal threshold" means the lesser of the threshold amounts set by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation for when a federally related transaction that is a commercial real estate transaction requires an appraisal prepared by a State licensed or certified appraiser.
(4) If the project is to construct a new facility, up to 33 per centum of the total project may be leased, if reasonable projections of growth demonstrate that the assisted small business concern will need additional space within three years and will fully utilize such additional space within ten years.
(5) Limitation on leasing.-In addition to any portion of the project permitted to be leased under paragraph (4), not to exceed 20 percent of the project may be leased by the assisted small business to 1 or more other tenants, if the assisted small business occupies permanently and uses not less than a total of 60 percent of the space in the project after the execution of any leases authorized under this section.
(6) Ownership requirements.-Ownership requirements to determine the eligibility of a small business concern that applies for assistance under any credit program under this subchapter shall be determined without regard to any ownership interest of a spouse arising solely from the application of the community property laws of a State for purposes of determining marital interests.
(A) In general.-Any financing approved under this subchapter may include a limited amount of debt refinancing.
(vii) the financing under section 697a of this title will provide better terms or rate of interest than the existing indebtedness at the time of refinancing.
(C) 2 Repealed. Pub. L. 111–240, title I, §1122(b), Sept. 27, 2010, 124 Stat. 2512 .
2018-Par. (3)(E)(ii). Pub. L. 115–371, redesignated introductory provisions of cl. (ii) as subcl. (I) of cl. (ii) and inserted heading, redesignated former subcls. (I) and (II) as items (aa) and (bb), respectively, of subcl. (I) and realigned margins, in item (aa), substituted "is more than the Federal banking regulator appraisal threshold" for "is more than $250,000", in item (bb), substituted "is equal to or less than the Federal banking regulator appraisal threshold" for "is $250,000 or less", and added subcl. (II).
2010-Par. (2)(A)(i). Pub. L. 111–240, §1122(c), substituted "clause (ii), (iii), (iv), or (v)" for "subparagraph (B) or (C)".
Pub. L. 111–240, §1112(1), substituted "$5,000,000" for "$1,500,000".
Par. (2)(A)(ii). Pub. L. 111–240, §1112(2), substituted "$5,000,000" for "$2,000,000".
Par. (2)(A)(iii) to (v). Pub. L. 111–240, §1112(3)–(5), substituted "$5,500,000" for "$4,000,000".
"(bb) for which the borrower has been current on all payments for not less than 1 year before the date of the application.
"(III) for a financing for which the Administrator determines there will be an additional cost attributable to the refinancing of the qualified debt, the borrower agrees to pay a fee in an amount equal to the anticipated additional cost.
"(I) Financing for business expenses.-The Administrator may provide financing to a borrower that receives financing that includes a refinancing of qualified debt under clause (ii), in addition to the refinancing under clause (ii), to be used solely for the payment of business expenses.
"(bb) an itemization of the amount of each expense.
"(III) Condition on additional financing.-A borrower may not use any part of the financing under this clause for non-business purposes.
"(aa) In general.-The Administrator may provide financing under this subparagraph for a borrower that meets the job creation goals under subsection (d) or (e) of section 695 of this title.
"(bb) Alternate job retention goal.-The Administrator may provide financing under this subparagraph to a borrower that does not meet the goals described in item (aa) in an amount that is not more than the product obtained by multiplying the number of employees of the borrower by $65,000.
"(BB) the quotient obtained by dividing the average number of hours each part time employee of the borrower works each week by 40.
"(v) Nondelegation.-Notwithstanding section 697e(e) of this title, the Administrator may not permit a premier certified lender to approve or disapprove an application for assistance under this subparagraph.
"(vi) Total amount of loans.-The Administrator may provide not more than a total of $7,500,000,000 of financing under this subparagraph for each fiscal year."
Pub. L. 111–240, §1122(a), added subpar. (C).
2009-Par. (7). Pub. L. 111–5 added par. (7).
2007-Par. (2)(A)(iv), (v). Pub. L. 110–140 added cls. (iv) and (v).
2004-Par. (2). Pub. L. 108–447 amended par. (2) generally. Prior to amendment, par. (2) read as follows: "Loans made by the Administration under this section shall be limited to $1,000,000 for each such identifiable small business concern, except loans meeting the criteria specified in section 695(d)(3) of this title, which shall be limited to $1,300,000 for each such identifiable small business concern."
2000-Par. (2). Pub. L. 106–554, §1(a)(9) [title III, §303], amended par. (2) generally. Prior to amendment, par. (2) read as follows: "Loans made by the Administration under this section shall be limited to $750,000 for each such identifiable small-business concern, except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern."
Par. (3)(E). Pub. L. 106–554, §1(a)(9) [title II, §208(b)], designated existing provisions as cl. (i), inserted heading, and added cl. (ii).
Par. (6). Pub. L. 106–554, §1(a)(9) [title VIII, §802(b)], added par. (6).
1997-Par. (1). Pub. L. 105–135, §221(1), added par. (1) and struck out former par. (1) which read as follows: "The proceeds of any such loan shall be used solely by such borrower to assist in identifiable small-business concern and for a sound business purpose approved by the Administration."
Par. (3)(D), (E). Pub. L. 105–135, §221(2), added subpars. (D) and (E).
Par. (5). Pub. L. 105–135, §221(3), added par. (5).
"(D) a small business concern (or its owners, stockholders, or affiliates) receiving assistance through bodies authorized under this subchapter."
1990-Par. (2). Pub. L. 101–574 struck out period at end and inserted ", except loans meeting the criteria specified in section 695(d)(3) of this title shall be limited to $1,000,000 for each such identifiable small business concern."
1988-Pub. L. 100–590, §116(b)(1), inserted "Loans for plant acquisition, construction, conversion, and expansion" as section catchline.
Par. (2). Pub. L. 100–418 substituted "$750,000" for "$500,000".
Par. (4). Pub. L. 100–590, §116(a), added par. (4).
1981-Pars. (1) to (4). Pub. L. 97–35 redesignated pars. (2) to (4) as (1) to (3), respectively. Former par. (1), which provided that all loans made shall be so secured as reasonably to assure repayment and that in agreements to participate in loans on a deferred basis, such participation by the Administration shall not be in excess of 90 per centum of the balance of the loan outstanding at the time of disbursement, was struck out.
Par. (5). Pub. L. 97–35 struck out par. (5) which provided that loans, including extensions and renewals, may be made for a period not exceeding twenty-five years and that an extension may be granted up to ten years, if such extension will aid in the orderly liquidation of the loan, and that the Administration may fix the rate of interest.
1978-Par. (4). Pub. L. 95–507 inserted provisions relating to derivation of community injection funds.
1976-Pub. L. 94–305, §108(a), inserted "acquisition," after "plant" in introductory text.
Par. (3). Pub. L. 94–305, §110, substituted "$500,000" for "$350,000".
1961-Par. (3). Pub. L. 87–341, §10(1), substituted "$350,000" for "$250,000".
Par. (5). Pub. L. 87–341, §10(2), substituted "twenty-five" for "ten" before "years plus such additional period".
Par. (6). Pub. L. 87–27 struck out par. (6) which provided for termination of authority of the Administration to make loans to local development companies after June 30, 1961.
Pub. L. 111–240, title I, §1122(b), Sept. 27, 2010, 124 Stat. 2512 , provided that the amendment made by section 1122(b) is effective 2 years after Sept. 27, 2010.
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 1918 of Pub. L. 97–35, set out as a note under section 631 of this title.
"(3) clause (iv)(I)(aa) of such subparagraph (C) shall be applied by substituting 'job creation and retention' for 'job creation'."
2 See Refinancing Not Involving Expansions note below.

References: §1122
 §1122
 §1112
 §1112
 §1112
 §1122
 §1
 §303
 §1
 §208
 §1
 §802
 §221
 §221
 §221
 §116
 §116
 §108
 §110
 §10
 §10
 §1122