Small Business Jobs Act of 2010
PL 111-240 (H.R.5297), enacted 09/27/2010

124 STAT. 2504 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Public Law 111–240 
111th Congress 
An Act 
To create the Small Business Lending Fund Program to direct the Secretary of 
the Treasury to make capital investments in eligible institutions in order to 
increase the availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job creation, 
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 ‘‘Small Business Jobs Act of 
2010’’. 
SEC. 2. TABLE OF CONTENTS. 
The table of contents for this Act is as follows: 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—SMALL BUSINESSES 
Sec. 1001. Definitions. 
Subtitle A—Small Business Access to Credit 
Sec. 1101. Short title. 
PART I—NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY 
Sec. 1111. Section 7(a) business loans. 
Sec. 1112. Maximum loan amounts under 504 program. 
Sec. 1113. Maximum loan limits under microloan program. 
Sec. 1114. Loan guarantee enhancement extensions. 
Sec. 1115. New Markets Venture Capital company investment limitations. 
Sec. 1116. Alternative size standards. 
Sec. 1117. Sale of 7(a) loans in secondary market. 
Sec. 1118. Online lending platform. 
Sec. 1119. SBA Secondary Market Guarantee Authority. 
PART II—SMALL BUSINESS ACCESS TO CAPITAL 
Sec. 1122. Low-interest refinancing under the local development business loan pro-
gram. 
PART III—OTHER MATTERS 
Sec. 1131. Small business intermediary lending pilot program. 
Sec. 1132. Public policy goals. 
Sec. 1133. Floor plan pilot program extension. 
Sec. 1134. Guarantees for bonds and notes issued for community or economic devel-
opment purposes. 
Sec. 1135. Temporary express loan enhancement. 
Sec. 1136. Prohibition on using TARP funds or tax increases. 
Subtitle B—Small Business Trade and Exporting 
Sec. 1201. Short title. 
Sec. 1202. Definitions. 
15 USC 631 note. 
Small Business 
Jobs Act of 2010. 
Sept. 27, 2010 
[H.R. 5297] 
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124 STAT. 2505 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Sec. 1203. Office of International Trade. 
Sec. 1204. Duties of the Office of International Trade. 
Sec. 1205. Export assistance centers. 
Sec. 1206. International trade finance programs. 
Sec. 1207. State Trade and Export Promotion Grant Program. 
Sec. 1208. Rural export promotion. 
Sec. 1209. International trade cooperation by small business development centers. 
Subtitle C—Small Business Contracting 
PART I—CONTRACT BUNDLING 
Sec. 1311. Small Business Act. 
Sec. 1312. Leadership and oversight. 
Sec. 1313. Consolidation of contract requirements. 
Sec. 1314. Small business teams pilot program. 
PART II—SUBCONTRACTING INTEGRITY 
Sec. 1321. Subcontracting misrepresentations. 
Sec. 1322. Small business subcontracting improvements. 
PART III—ACQUISITION PROCESS 
Sec. 1331. Reservation of prime contract awards for small businesses. 
Sec. 1332. Micro-purchase guidelines. 
Sec. 1333. Agency accountability. 
Sec. 1334. Payment of subcontractors. 
Sec. 1335. Repeal of Small Business Competitiveness Demonstration Program. 
PART IV—SMALL BUSINESS SIZE AND STATUS INTEGRITY 
Sec. 1341. Policy and presumptions. 
Sec. 1342. Annual certification. 
Sec. 1343. Training for contracting and enforcement personnel. 
Sec. 1344. Updated size standards. 
Sec. 1345. Study and report on the mentor-protege program. 
Sec. 1346. Contracting goals reports. 
Sec. 1347. Small business contracting parity. 
Subtitle D—Small Business Management and Counseling Assistance 
Sec. 1401. Matching requirements under small business programs. 
Sec. 1402. Grants for SBDCs. 
Subtitle E—Disaster Loan Improvement 
Sec. 1501. Aquaculture business disaster assistance. 
Subtitle F—Small Business Regulatory Relief 
Sec. 1601. Requirements providing for more detailed analyses. 
Sec. 1602. Office of advocacy. 
Subtitle G—Appropriations Provisions 
Sec. 1701. Salaries and expenses. 
Sec. 1702. Business loans program account. 
Sec. 1703. Community Development Financial Institutions Fund program account. 
Sec. 1704. Small business loan guarantee enhancement extensions. 
TITLE II—TAX PROVISIONS 
Sec. 2001. Short title. 
Subtitle A—Small Business Relief 
PART I—PROVIDING ACCESS TO CAPITAL 
Sec. 2011. Temporary exclusion of 100 percent of gain on certain small business 
stock. 
Sec. 2012. General business credits of eligible small businesses for 2010 carried 
back 5 years. 
Sec. 2013. General business credits of eligible small businesses in 2010 not subject 
to alternative minimum tax. 
Sec. 2014. Temporary reduction in recognition period for built-in gains tax. 
PART II—ENCOURAGING INVESTMENT 
Sec. 2021. Increased expensing limitations for 2010 and 2011; certain real property 
treated as section 179 property. 
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124 STAT. 2506 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Sec. 2022. Additional first-year depreciation for 50 percent of the basis of certain 
qualified property. 
Sec. 2023. Special rule for long-term contract accounting. 
PART III—PROMOTING ENTREPRENEURSHIP 
Sec. 2031. Increase in amount allowed as deduction for start-up expenditures in 
2010. 
Sec. 2032. Authorization of appropriations for the United States Trade Representa-
tive to develop market access opportunities for United States small- and 
medium-sized businesses and to enforce trade agreements. 
PART IV—PROMOTING SMALL BUSINESS FAIRNESS 
Sec. 2041. Limitation on penalty for failure to disclose reportable transactions 
based on resulting tax benefits. 
Sec. 2042. Deduction for health insurance costs in computing self-employment 
taxes in 2010. 
Sec. 2043. Removal of cellular telephones and similar telecommunications equip-
ment from listed property. 
Subtitle B—Revenue Provisions 
PART I—REDUCING THE TAX GAP 
Sec. 2101. Information reporting for rental property expense payments. 
Sec. 2102. Increase in information return penalties. 
Sec. 2103. Report on tax shelter penalties and certain other enforcement actions. 
Sec. 2104. Application of continuous levy to tax liabilities of certain Federal con-
tractors. 
PART II—PROMOTING RETIREMENT PREPARATION 
Sec. 2111. Participants in government section 457 plans allowed to treat elective 
deferrals as Roth contributions. 
Sec. 2112. Rollovers from elective deferral plans to designated Roth accounts. 
Sec. 2113. Special rules for annuities received from only a portion of a contract. 
PART III—CLOSING UNINTENDED LOOPHOLES 
Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer credit. 
Sec. 2122. Source rules for income on guarantees. 
PART IV—TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES 
Sec. 2131. Time for payment of corporate estimated taxes. 
TITLE III—STATE SMALL BUSINESS CREDIT INITIATIVE 
Sec. 3001. Short title. 
Sec. 3002. Definitions. 
Sec. 3003. Federal funds allocated to States. 
Sec. 3004. Approving States for participation. 
Sec. 3005. Approving State capital access programs. 
Sec. 3006. Approving collateral support and other innovative credit access and 
guarantee initiatives for small businesses and manufacturers. 
Sec. 3007. Reports. 
Sec. 3008. Remedies for State program termination or failures. 
Sec. 3009. Implementation and administration. 
Sec. 3010. Regulations. 
Sec. 3011. Oversight and audits. 
TITLE IV—ADDITIONAL SMALL BUSINESS PROVISIONS 
Subtitle A—Small Business Lending Fund 
Sec. 4101. Purpose. 
Sec. 4102. Definitions. 
Sec. 4103. Small business lending fund. 
Sec. 4104. Additional authorities of the Secretary. 
Sec. 4105. Considerations. 
Sec. 4106. Reports. 
Sec. 4107. Oversight and audits. 
Sec. 4108. Credit reform; funding. 
Sec. 4109. Termination and continuation of authorities. 
Sec. 4110. Preservation of authority. 
Sec. 4111. Assurances. 
Sec. 4112. Study and report with respect to women-owned, veteran-owned, and mi-
nority-owned businesses. 
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124 STAT. 2507 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Sec. 4113. Sense of Congress. 
Subtitle B—Other Provisions 
PART I—SMALL BUSINESS EXPORT PROMOTION INITIATIVES 
Sec. 4221. Short title. 
Sec. 4222. Global business development and promotion activities of the Department 
of Commerce. 
Sec. 4223. Additional funding to improve access to global markets for rural busi-
nesses. 
Sec. 4224. Additional funding for the ExporTech program. 
Sec. 4225. Additional funding for the market development cooperator program of 
the Department of Commerce. 
Sec. 4226. Hollings Manufacturing Partnership Program; Technology Innovation 
Program. 
Sec. 4227. Sense of the Senate concerning Federal collaboration with States on ex-
port promotion issues. 
Sec. 4228. Report on tariff and nontariff barriers. 
PART II—MEDICARE FRAUD 
Sec. 4241. Use of predictive modeling and other analytics technologies to identify 
and prevent waste, fraud, and abuse in the Medicare fee-for-service pro-
gram. 
TITLE V—BUDGETARY PROVISIONS 
Sec. 5001. Determination of budgetary effects. 
TITLE I—SMALL BUSINESSES 
SEC. 1001. DEFINITIONS. 
In this title— 
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean 
the Small Business Administration and the Administrator 
thereof, respectively; and 
(2) the term ‘‘small business concern’’ has the meaning 
given that term under section 3 of the Small Business Act 
(15 U.S.C. 632). 
Subtitle A—Small Business Access to 
Credit 
SEC. 1101. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business Job Creation 
and Access to Capital Act of 2010’’. 
PART I—NEXT STEPS FOR MAIN STREET 
CREDIT AVAILABILITY 
SEC. 1111. SECTION 7(a) BUSINESS LOANS. 
(a) AMENDMENT.—Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (i), by striking ‘‘75 percent’’ and inserting 
‘‘90 percent’’; and 
(B) in clause (ii), by striking ‘‘85 percent’’ and inserting 
‘‘90 percent’’; and 
(2) in paragraph (3)(A), by striking ‘‘$1,500,000 (or if the 
gross loan amount would exceed $2,000,000’’ and inserting 
‘‘$4,500,000 (or if the gross loan amount would exceed 
$5,000,000’’. 
15 USC 631 note. 
Small Business 
Job Creation and 
Access to Capital 
Act of 2010. 
15 USC 632 note. 
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124 STAT. 2508 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(b) PROSPECTIVE REPEAL.—Effective January 1, 2011, section 
7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended— 
(1) in paragraph (2)(A)— 
(A) in clause (i), by striking ‘‘90 percent’’ and inserting 
‘‘75 percent’’; and 
(B) in clause (ii), by striking ‘‘90 percent’’ and inserting 
‘‘85 percent’’; and 
(2) in paragraph (3)(A), by striking ‘‘$4,500,000’’ and 
inserting ‘‘$3,750,000’’. 
SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM. 
Section 502(2)(A) of the Small Business Investment Act of 
1958 (15 U.S.C. 696(2)(A)) is amended— 
(1) in clause (i), by striking ‘‘$1,500,000’’ and inserting 
‘‘$5,000,000’’; 
(2) in clause (ii), by striking ‘‘$2,000,000’’ and inserting 
‘‘$5,000,000’’; 
(3) in clause (iii), by striking ‘‘$4,000,000’’ and inserting 
‘‘$5,500,000’’; 
(4) in clause (iv), by striking ‘‘$4,000,000’’ and inserting 
‘‘$5,500,000’’; and 
(5) in clause (v), by striking ‘‘$4,000,000’’ and inserting 
‘‘$5,500,000’’. 
SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM. 
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
is amended— 
(1) in paragraph (1)(B)(iii), by striking ‘‘$35,000’’ and 
inserting ‘‘$50,000’’; 
(2) in paragraph (3)— 
(A) in subparagraph (C), by striking ‘‘$3,500,000’’ and 
inserting ‘‘$5,000,000’’; and 
(B) in subparagraph (E), by striking ‘‘$35,000’’ each 
place that term appears and inserting ‘‘$50,000’’; and 
(3) in paragraph (11)(B), by striking ‘‘$35,000’’ and inserting 
‘‘$50,000’’. 
SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS. 
(a) FEES.—Section 501 of the American Recovery and Reinvest-
ment Act of 2009 (Public Law 111–5; 123 Stat. 151) is amended 
by striking ‘‘September 30, 2010’’ each place that term appears 
and inserting ‘‘December 31, 2010’’. 
(b) LOAN GUARANTEES.—Section 502(f) of division A of the 
American Recovery and Reinvestment Act of 2009 (Public Law 
111–5; 123 Stat. 153) is amended by striking ‘‘May 31, 2010’’ and 
inserting ‘‘December 31, 2010’’. 
SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT 
LIMITATIONS. 
Section 355 of the Small Business Investment Act of 1958 
(15 U.S.C. 689d) is amended by adding at the end the following: 
‘‘(e) INVESTMENT LIMITATIONS.— 
‘‘(1) DEFINITION.—In this subsection, the term ‘covered New 
Markets Venture Capital company’ means a New Markets Ven-
ture Capital company— 
‘‘(A) granted final approval by the Administrator under 
section 354(e) on or after March 1, 2002; and 
Effective date. 
15 USC 636 note. 
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124 STAT. 2509 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(B) that has obtained a financing from the Adminis-
trator. 
‘‘(2) LIMITATION.—Except to the extent approved by the 
Administrator, a covered New Markets Venture Capital com-
pany may not acquire or issue commitments for securities under 
this title for any single enterprise in an aggregate amount 
equal to more than 10 percent of the sum of— 
‘‘(A) the regulatory capital of the covered New Markets 
Venture Capital company; and 
‘‘(B) the total amount of leverage projected in the 
participation agreement of the covered New Markets Ven-
ture Capital.’’. 
SEC. 1116. ALTERNATIVE SIZE STANDARDS. 
Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is 
amended by adding at the end the following: 
‘‘(5) ALTERNATIVE SIZE STANDARD.— 
‘‘(A) IN GENERAL.—The Administrator shall establish an 
alternative size standard for applicants for business loans under 
section 7(a) and applicants for development company loans 
under title V of the Small Business Investment Act of 1958 
(15 U.S.C. 695 et seq.), that uses maximum tangible net worth 
and average net income as an alternative to the use of industry 
standards. 
‘‘(B) INTERIM RULE.—Until the date on which the alter-
native size standard established under subparagraph (A) is 
in effect, an applicant for a business loan under section 7(a) 
or an applicant for a development company loan under title 
V of the Small Business Investment Act of 1958 may be eligible 
for such a loan if— 
‘‘(i) the maximum tangible net worth of the applicant 
is not more than $15,000,000; and 
‘‘(ii) the average net income after Federal income taxes 
(excluding any carry-over losses) of the applicant for the 
2 full fiscal years before the date of the application is 
not more than $5,000,000.’’. 
SEC. 1117. SALE OF 7(a) LOANS IN SECONDARY MARKET. 
Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) is 
amended by adding at the end the following: 
‘‘(6) If the amount of the guaranteed portion of any loan under 
section 7(a) is more than $500,000, the Administrator shall, upon 
request of a pool assembler, divide the loan guarantee into incre-
ments of $500,000 and 1 increment of any remaining amount less 
than $500,000, in order to permit the maximum amount of any 
loan in a pool to be not more than $500,000. Only 1 increment 
of any loan guarantee divided under this paragraph may be included 
in the same pool. Increments of loan guarantees to different bor-
rowers that are divided under this paragraph may be included 
in the same pool.’’. 
SEC. 1118. ONLINE LENDING PLATFORM. 
It is the sense of Congress that the Administrator of the Small 
Business Administration should establish a website that— 
(1) lists each lender that makes loans guaranteed by the 
Small Business Administration and provides information about 
the loan rates of each such lender; and 
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124 STAT. 2510 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(2) allows prospective borrowers to compare rates on loans 
guaranteed by the Small Business Administration. 
SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY. 
Section 503(f) of division A of the American Recovery and 
Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 155) is 
amended by striking ‘‘on the date 2 years after the date of enact-
ment of this section’’ and inserting ‘‘2 years after the date of 
the first sale of a pool of first lien position 504 loans guaranteed 
under this section to a third-party investor’’. 
PART II—SMALL BUSINESS ACCESS TO 
CAPITAL 
SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOP-
MENT BUSINESS LOAN PROGRAM. 
(a) REFINANCING.—Section 502(7) of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 696(7)) is amended by adding at 
the end the following: 
‘‘(C) REFINANCING NOT INVOLVING EXPANSIONS.— 
‘‘(i) DEFINITIONS.—In this subparagraph— 
‘‘(I) the term ‘borrower’ means a small business 
concern that submits an application to a develop-
ment company for financing under this subpara-
graph; 
‘‘(II) the term ‘eligible fixed asset’ means tan-
gible property relating to which the Administrator 
may provide financing under this section; and 
‘‘(III) the term ‘qualified debt’ means indebted-
ness— 
‘‘(aa) that— 
‘‘(AA) was incurred not less than 2 
years before the date of the application 
for assistance under this subparagraph; 
‘‘(BB) is a commercial loan; 
‘‘(CC) is not subject to a guarantee 
by a Federal agency; 
‘‘(DD) the proceeds of which were used 
to acquire an eligible fixed asset; 
‘‘(EE) was incurred for the benefit of 
the small business concern; and 
‘‘(FF) is collateralized by eligible fixed 
assets; and 
‘‘(bb) for which the borrower has been cur-
rent on all payments for not less than 1 year 
before the date of the application. 
‘‘(ii) AUTHORITY.—A project that does not involve 
the expansion of a small business concern may include 
the refinancing of qualified debt if— 
‘‘(I) the amount of the financing is not more 
than 90 percent of the value of the collateral for 
the financing, except that, if the appraised value 
of the eligible fixed assets serving as collateral 
for the financing is less than the amount equal 
to 125 percent of the amount of the financing, 
the borrower may provide additional cash or other 
collateral to eliminate any deficiency; 
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124 STAT. 2511 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(II) the borrower has been in operation for 
all of the 2-year period ending on the date of 
the loan; and 
‘‘(III) for a financing for which the Adminis-
trator 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. 
‘‘(iii) FINANCING FOR BUSINESS EXPENSES.— 
‘‘(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. 
‘‘(II) 
APPLICATION
FOR
FINANCING.—An 
application for financing under subclause (I) shall 
include— 
‘‘(aa) a specific description of the expenses 
for 
which 
the 
additional 
financing 
is 
requested; and 
‘‘(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. 
‘‘(iv) LOANS BASED ON JOBS.— 
‘‘(I) JOB CREATION AND RETENTION GOALS.— 
‘‘(aa) IN
GENERAL.—The Administrator 
may provide financing under this subpara-
graph for a borrower that meets the job cre-
ation goals under subsection (d) or (e) of sec-
tion 501. 
‘‘(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. 
‘‘(II) NUMBER
OF
EMPLOYEES.—For purposes 
of subclause (I), the number of employees of a 
borrower is equal to the sum of— 
‘‘(aa) the number of full-time employees 
of the borrower on the date on which the bor-
rower applies for a loan under this subpara-
graph; and 
‘‘(bb) the product obtained by multi-
plying— 
‘‘(AA) 
the 
number 
of 
part-time 
employees of the borrower on the date 
on which the borrower applies for a loan 
under this subparagraph; by 
‘‘(BB) 
the 
quotient 
obtained 
by 
dividing the average number of hours each 
part time employee of the borrower works 
each week by 40. 
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124 STAT. 2512 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(v) NONDELEGATION.—Notwithstanding section 
508(e), 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.’’. 
(b) PROSPECTIVE REPEAL.—Effective 2 years after the date of 
enactment of this Act, section 502(7) of the Small Business Invest-
ment Act of 1958 (15 U.S.C. 696(7)) is amended by striking subpara-
graph (C). 
(c) TECHNICAL CORRECTION.—Section 502(2)(A)(i) of the Small 
Business Investment Act of 1958 (15 U.S.C. 696(2)(A)(i)) is amended 
by striking ‘‘subparagraph (B) or (C)’’ and inserting ‘‘clause (ii), 
(iii), (iv), or (v)’’. 
PART III—OTHER MATTERS 
SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PRO-
GRAM. 
(a) IN GENERAL.—Section 7 of the Small Business Act (15 
U.S.C. 636) is amended by striking subsection (l) and inserting 
the following: 
‘‘(l) SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.— 
‘‘(1) DEFINITIONS.—In this subsection— 
‘‘(A) the term ‘eligible intermediary’— 
‘‘(i) means a private, nonprofit entity that— 
‘‘(I) seeks or has been awarded a loan from 
the Administrator to make loans to small business 
concerns under this subsection; and 
‘‘(II) has not less than 1 year of experience 
making loans to startup, newly established, or 
growing small business concerns; and 
‘‘(ii) includes— 
‘‘(I) a private, nonprofit community develop-
ment corporation; 
‘‘(II) 
a 
consortium 
of 
private, 
nonprofit 
organizations or nonprofit community development 
corporations; and 
‘‘(III) an agency of or nonprofit entity estab-
lished by a Native American Tribal Government; 
and 
‘‘(B) the term ‘Program’ means the small business inter-
mediary lending pilot program established under paragraph 
(2). 
‘‘(2) ESTABLISHMENT.—There is established a 3-year small 
business intermediary lending pilot program, under which the 
Administrator may make direct loans to eligible intermediaries, 
for the purpose of making loans to startup, newly established, 
and growing small business concerns. 
‘‘(3) PURPOSES.—The purposes of the Program are— 
‘‘(A) to assist small business concerns in areas suffering 
from a lack of credit due to poor economic conditions or 
changes in the financial market; and 
‘‘(B) to establish a loan program under which the 
Administrator may provide loans to eligible intermediaries 
Effective date. 
15 USC 696 note. 
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124 STAT. 2513 
PUBLIC LAW 111–240—SEPT. 27, 2010 
to enable the eligible intermediaries to provide loans to 
startup, newly established, and growing small business 
concerns for working capital, real estate, or the acquisition 
of materials, supplies, or equipment. 
‘‘(4) LOANS TO ELIGIBLE INTERMEDIARIES.— 
‘‘(A) APPLICATION.—Each eligible intermediary desiring 
a loan under this subsection shall submit an application 
to the Administrator that describes— 
‘‘(i) the type of small business concerns to be 
assisted; 
‘‘(ii) the size and range of loans to be made; 
‘‘(iii) the interest rate and terms of loans to be 
made; 
‘‘(iv) the geographic area to be served and the 
economic, poverty, and unemployment characteristics 
of the area; 
‘‘(v) the status of small business concerns in the 
area to be served and an analysis of the availability 
of credit; and 
‘‘(vi) the qualifications of the applicant to carry 
out this subsection. 
‘‘(B) LOAN LIMITS.—No loan may be made to an eligible 
intermediary under this subsection if the total amount 
outstanding and committed to the eligible intermediary 
by the Administrator would, as a result of such loan, exceed 
$1,000,000 during the participation of the eligible inter-
mediary in the Program. 
‘‘(C) LOAN DURATION.—Loans made by the Adminis-
trator under this subsection shall be for a term of 20 
years. 
‘‘(D) APPLICABLE INTEREST RATES.—Loans made by the 
Administrator to an eligible intermediary under the Pro-
gram shall bear an annual interest rate equal to 1.00 
percent. 
‘‘(E) FEES; COLLATERAL.—The Administrator may not 
charge any fees or require collateral with respect to any 
loan made to an eligible intermediary under this sub-
section. 
‘‘(F) DELAYED PAYMENTS.—The Administrator shall not 
require the repayment of principal or interest on a loan 
made to an eligible intermediary under the Program during 
the 2-year period beginning on the date of the initial 
disbursement of funds under that loan. 
‘‘(G) MAXIMUM PARTICIPANTS AND AMOUNTS.—During 
each of fiscal years 2011, 2012, and 2013, the Administrator 
may make loans under the Program— 
‘‘(i) to not more than 20 eligible intermediaries; 
and 
‘‘(ii) in a total amount of not more than 
$20,000,000. 
‘‘(5) LOANS TO SMALL BUSINESS CONCERNS.— 
‘‘(A) IN
GENERAL.—The Administrator, through an 
eligible intermediary, shall make loans to startup, newly 
established, and growing small business concerns for 
working capital, real estate, and the acquisition of mate-
rials, supplies, furniture, fixtures, and equipment. 
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124 STAT. 2514 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(B) MAXIMUM LOAN.—An eligible intermediary may 
not make a loan under this subsection of more than 
$200,000 to any 1 small business concern. 
‘‘(C) APPLICABLE
INTEREST
RATES.—A loan made by 
an eligible intermediary to a small business concern under 
this subsection, may have a fixed or a variable interest 
rate, and shall bear an interest rate specified by the eligible 
intermediary in the application of the eligible intermediary 
for a loan under this subsection. 
‘‘(D) REVIEW RESTRICTIONS.—The Administrator may 
not review individual loans made by an eligible inter-
mediary to a small business concern before approval of 
the loan by the eligible intermediary. 
‘‘(6) TERMINATION.—The authority of the Administrator to 
make loans under the Program shall terminate 3 years after 
the date of enactment of the Small Business Job Creation 
and Access to Capital Act of 2010.’’. 
(b) RULEMAKING AUTHORITY.—Not later than 180 days after 
the date of enactment of this Act, the Administrator shall issue 
regulations to carry out section 7(l) of the Small Business Act, 
as amended by subsection (a). 
(c) AVAILABILITY
OF FUNDS.—Any amounts provided to the 
Administrator for the purposes of carrying out section 7(l) of the 
Small Business Act, as amended by subsection (a), shall remain 
available until expended. 
SEC. 1132. PUBLIC POLICY GOALS. 
Section 501(d)(3) of the Small Business Investment Act of 1958 
(15 U.S.C. 695(d)(3)) is amended— 
(1) in subparagraph (J), by striking ‘‘or’’ at the end; 
(2) in subparagraph (K), by striking the period at the 
end and inserting ‘‘, or’’; and 
(3) by adding at the end the following: 
‘‘(L) reduction of rates of unemployment in labor sur-
plus areas, as such areas are determined by the Secretary 
of Labor.’’. 
SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION. 
(a) IN GENERAL.—Section 7(a) of the Small Business Act (15 
U.S.C. 636(a)) is amended— 
(1) by redesignating paragraph (32), relating to increased 
veteran participation, as added by section 208 of the Military 
Reservist and Veteran Small Business Reauthorization and 
Opportunity Act of 2008 (Public Law 110–186; 122 Stat. 631), 
as paragraph (33); and 
(2) by adding at the end the following: 
‘‘(34) FLOOR PLAN FINANCING PROGRAM.— 
‘‘(A) DEFINITION.—In this paragraph, the term ‘eligible 
retail good’— 
‘‘(i) means a good for which a title may be obtained 
under State law; and 
‘‘(ii) includes an automobile, recreational vehicle, 
boat, and manufactured home. 
‘‘(B) PROGRAM.—The Administrator may guarantee the 
timely payment of an open-end extension of credit to a 
small business concern, the proceeds of which may be used 
for the purchase of eligible retail goods for resale. 
15 USC 636 note. 
Deadline. 
15 USC 636 note. 
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124 STAT. 2515 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(C) AMOUNT.—An open-end extension of credit guaran-
teed under this paragraph shall be in an amount not less 
than $500,000 and not more than $5,000,000. 
‘‘(D) TERM.—An open-end extension of credit guaran-
teed under this paragraph shall have a term of not more 
than 5 years. 
‘‘(E) GUARANTEE
PERCENTAGE.—The Administrator 
may guarantee— 
‘‘(i) not less than 60 percent of an open-end exten-
sion of credit under this paragraph; and 
‘‘(ii) not more than 75 percent of an open-end 
extension of credit under this paragraph. 
‘‘(F) ADVANCE RATE.—The lender for an open-end exten-
sion of credit guaranteed under this paragraph may allow 
the borrower to draw funds on the line of credit in an 
amount equal to not more than 100 percent of the value 
of the eligible retail goods to be purchased.’’. 
(b) SUNSET.—Effective September 30, 2013, section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)) is amended— 
(1) by striking paragraph (34); and 
(2) by redesignating paragraph (35), as added by section 
1206 of this Act, as paragraph (34). 
SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMU-
NITY OR ECONOMIC DEVELOPMENT PURPOSES. 
The Riegle Community Development and Regulatory Improve-
ment Act of 1994 (12 U.S.C. 4701 et seq.) is amended by inserting 
after section 114 (12 U.S.C. 4713) the following: 
‘‘SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES. 
‘‘(a) DEFINITIONS.—In this section, the following definitions 
shall apply: 
‘‘(1) 
ELIGIBLE
COMMUNITY
DEVELOPMENT
FINANCIAL 
INSTITUTION.—The term ‘eligible community development finan-
cial institution’ means a community development financial 
institution (as described in section 1805.201 of title 12, Code 
of Federal Regulations, or any successor thereto) certified by 
the Secretary that has applied to a qualified issuer for, or 
been granted by a qualified issuer, a loan under the Program. 
‘‘(2) ELIGIBLE COMMUNITY OR ECONOMIC DEVELOPMENT PUR-
POSE.—The term ‘eligible community or economic development 
purpose’— 
‘‘(A) means any purpose described in section 108(b); 
and 
‘‘(B) includes the provision of community or economic 
development in low-income or underserved rural areas. 
‘‘(3) GUARANTEE.—The term ‘guarantee’ means a written 
agreement between the Secretary and a qualified issuer (or 
trustee), pursuant to which the Secretary ensures repayment 
of the verifiable losses of principal, interest, and call premium, 
if any, on notes or bonds issued by a qualified issuer to finance 
or refinance loans to eligible community development financial 
institutions. 
‘‘(4) LOAN.—The term ‘loan’ means any credit instrument 
that is extended under the Program for any eligible community 
or economic development purpose. 
‘‘(5) MASTER SERVICER.— 
12 USC 4713a. 
Effective date. 
15 USC 636 note. 
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124 STAT. 2516 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(A) IN GENERAL.—The term ‘master servicer’ means 
any entity approved by the Secretary in accordance with 
subparagraph (B) to oversee the activities of servicers, as 
provided in subsection (f)(4). 
‘‘(B) APPROVAL CRITERIA FOR MASTER SERVICERS.—The 
Secretary shall approve or deny any application to become 
a master servicer under the Program not later than 90 
days after the date on which all required information is 
submitted to the Secretary, based on the capacity and 
experience of the applicant in— 
‘‘(i) loan administration, servicing, and loan moni-
toring; 
‘‘(ii) managing regional or national loan intake, 
processing, or servicing operational systems and infra-
structure; 
‘‘(iii) managing regional or national originator 
communication systems and infrastructure; 
‘‘(iv) developing and implementing training and 
other risk management strategies on a regional or 
national basis; and 
‘‘(v) compliance monitoring, investor relations, and 
reporting. 
‘‘(6) PROGRAM.—The term ‘Program’ means the guarantee 
Program for bonds and notes issued for eligible community 
or economic development purposes established under this sec-
tion. 
‘‘(7) 
PROGRAM
ADMINISTRATOR.—The 
term 
‘Program 
administrator’ means an entity designated by the issuer to 
perform administrative duties, as provided in subsection (f)(2). 
‘‘(8) QUALIFIED ISSUER.— 
‘‘(A) IN GENERAL.—The term ‘qualified issuer’ means 
a community development financial institution (or any 
entity designated to issue notes or bonds on behalf of 
such community development financial institution) that 
meets the qualification requirements of this paragraph. 
‘‘(B) APPROVAL CRITERIA FOR QUALIFIED ISSUERS.— 
‘‘(i) IN GENERAL.—The Secretary shall approve a 
qualified issuer for a guarantee under the Program 
in accordance with the requirements of this paragraph, 
and such additional requirements as the Secretary may 
establish, by regulation. 
‘‘(ii) TERMS
AND
QUALIFICATIONS.—A qualified 
issuer shall— 
‘‘(I) have appropriate expertise, capacity, and 
experience, or otherwise be qualified to make loans 
for eligible community or economic development 
purposes; 
‘‘(II) provide to the Secretary— 
‘‘(aa) an acceptable statement of the pro-
posed sources and uses of the funds; and 
‘‘(bb) a capital distribution plan that meets 
the requirements of subsection (c)(1); and 
‘‘(III) certify to the Secretary that the bonds 
or notes to be guaranteed are to be used for eligible 
community or economic development purposes. 
‘‘(C) DEPARTMENT OPINION; TIMING.— 
Deadlines. 
Certification. 
Deadline. 
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124 STAT. 2517 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(i) DEPARTMENT OPINION.—Not later than 30 days 
after the date of a request by a qualified issuer for 
approval of a guarantee under the Program, the Sec-
retary shall provide an opinion regarding compliance 
by the issuer with the requirements of the Program 
under this section. 
‘‘(ii) TIMING.—The Secretary shall approve or deny 
a guarantee under this section after consideration of 
the opinion provided to the Secretary under clause 
(i), and in no case later than 90 days after receipt 
of all required information by the Secretary with 
respect to a request for such guarantee. 
‘‘(9) SECRETARY.—The term ‘Secretary’ means the Secretary 
of the Treasury. 
‘‘(10) SERVICER.—The term ‘servicer’ means an entity des-
ignated by the issuer to perform various servicing duties, as 
provided in subsection (f)(3). 
‘‘(b) GUARANTEES AUTHORIZED.—The Secretary shall guarantee 
payments on bonds or notes issued by any qualified issuer, if 
the proceeds of the bonds or notes are used in accordance with 
this section to make loans to eligible community development finan-
cial institutions— 
‘‘(1) for eligible community or economic development pur-
poses; or 
‘‘(2) to refinance loans or notes issued for such purposes. 
‘‘(c) GENERAL PROGRAM REQUIREMENTS.— 
‘‘(1) IN GENERAL.—A capital distribution plan meets the 
requirements of this subsection, if not less than 90 percent 
of the principal amount of guaranteed bonds or notes (other 
than costs of issuance fees) are used to make loans for any 
eligible community or economic development purpose, measured 
annually, beginning at the end of the 1-year period beginning 
on the issuance date of such guaranteed bonds or notes. 
‘‘(2) RELENDING ACCOUNT.—Not more than 10 percent of 
the principal amount of guaranteed bonds or notes, multiplied 
by an amount equal to the outstanding principal balance of 
issued notes or bonds, minus the risk-share pool amount under 
subsection (d), may be held in a relending account and may 
be made available for new eligible community or economic 
development purposes. 
‘‘(3) LIMITATIONS
ON
UNPAID
PRINCIPAL
BALANCES.—The 
proceeds of guaranteed bonds or notes under the Program may 
not be used to pay fees (other than costs of issuance fees), 
and shall be held in— 
‘‘(A) community or economic development loans; 
‘‘(B) a relending account, to the extent authorized 
under paragraph (2); or 
‘‘(C) a risk-share pool established under subsection (d). 
‘‘(4) REPAYMENT.—If a qualified issuer fails to meet the 
requirements of paragraph (1) by the end of the 90-day period 
beginning at the end of the annual measurement period, repay-
ment shall be made on that portion of bonds or notes necessary 
to bring the bonds or notes that remain outstanding after 
such repayment into compliance with the 90 percent require-
ment of paragraph (1). 
‘‘(5) PROHIBITED
USES.—The Secretary shall, by regula-
tion— 
Regulations. 
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124 STAT. 2518 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(A) prohibit, as appropriate, certain uses of amounts 
from the guarantee of a bond or note under the Program, 
including the use of such funds for political activities, lob-
bying, outreach, counseling services, or travel expenses; 
and 
‘‘(B) provide that the guarantee of a bond or note 
under the Program may not be used for salaries or other 
administrative costs of— 
‘‘(i) the qualified issuer; or 
‘‘(ii) any recipient of amounts from the guarantee 
of a bond or note. 
‘‘(d) RISK-SHARE POOL.—Each qualified issuer shall, during the 
term of a guarantee provided under the Program, establish a risk- 
share pool, capitalized by contributions from eligible community 
development financial institution participants an amount equal to 
3 percent of the guaranteed amount outstanding on the subject 
notes and bonds. 
‘‘(e) GUARANTEES.— 
‘‘(1) IN GENERAL.—A guarantee issued under the Program 
shall— 
‘‘(A) be for the full amount of a bond or note, including 
the amount of principal, interest, and call premiums; 
‘‘(B) be fully assignable and transferable to the capital 
market, on terms and conditions that are consistent with 
comparable Government-guaranteed bonds, and satisfac-
tory to the Secretary; 
‘‘(C) represent the full faith and credit of the United 
States; and 
‘‘(D) not exceed 30 years. 
‘‘(2) LIMITATIONS.— 
‘‘(A) ANNUAL NUMBER OF GUARANTEES.—The Secretary 
shall issue not more than 10 guarantees in any calendar 
year under the Program. 
‘‘(B) GUARANTEE
AMOUNT.—The Secretary may not 
guarantee any amount under the Program equal to less 
than $100,000,000, but the total of all such guarantees 
in any fiscal year may not exceed $1,000,000,000. 
‘‘(f) SERVICING OF TRANSACTIONS.— 
‘‘(1) IN GENERAL.—To maximize efficiencies and minimize 
cost and interest rates, loans made under this section may 
be serviced by qualified Program administrators, bond servicers, 
and a master servicer. 
‘‘(2) DUTIES OF PROGRAM ADMINISTRATOR.—The duties of 
a Program administrator shall include— 
‘‘(A) approving and qualifying eligible community 
development financial institution applications for participa-
tion in the Program; 
‘‘(B) compliance monitoring; 
‘‘(C) bond packaging in connection with the Program; 
and 
‘‘(D) all other duties and related services that are cus-
tomarily expected of a Program administrator. 
‘‘(3) DUTIES OF SERVICER.—The duties of a servicer shall 
include— 
‘‘(A) billing and collecting loan payments; 
‘‘(B) initiating collection activities on past-due loans; 
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124 STAT. 2519 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(C) transferring loan payments to the master servicing 
accounts; 
‘‘(D) loan administration and servicing; 
‘‘(E) systematic and timely reporting of loan perform-
ance through remittance and servicing reports; 
‘‘(F) proper measurement of annual outstanding loan 
requirements; and 
‘‘(G) all other duties and related services that are cus-
tomarily expected of servicers. 
‘‘(4) DUTIES OF MASTER SERVICER.—The duties of a master 
servicer shall include— 
‘‘(A) tracking the movement of funds between the 
accounts of the master servicer and any other servicer; 
‘‘(B) ensuring orderly receipt of the monthly remittance 
and servicing reports of the servicer; 
‘‘(C) monitoring the collection comments and fore-
closure actions; 
‘‘(D) aggregating the reporting and distribution of funds 
to trustees and investors; 
‘‘(E) removing and replacing a servicer, as necessary; 
‘‘(F) loan administration and servicing; 
‘‘(G) systematic and timely reporting of loan perform-
ance compiled from all bond servicers’ reports; 
‘‘(H) proper distribution of funds to investors; and 
‘‘(I) all other duties and related services that are cus-
tomarily expected of a master servicer. 
‘‘(g) FEES.— 
‘‘(1) IN GENERAL.—A qualified issuer that receives a guar-
antee issued under this section on a bond or note shall pay 
a fee to the Secretary, in an amount equal to 10 basis points 
of the amount of the unpaid principal of the bond or note 
guaranteed. 
‘‘(2) PAYMENT.—A qualified issuer shall pay the fee required 
under this subsection on an annual basis. 
‘‘(3) USE OF FEES.—Fees collected by the Secretary under 
this subsection shall be used to reimburse the Department 
of the Treasury for any administrative costs incurred by the 
Department in implementing the Program established under 
this section. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.— 
‘‘(1) IN GENERAL.—There are authorized to be appropriated 
to the Secretary, such sums as are necessary to carry out 
this section. 
‘‘(2) USE OF FEES.—To the extent that the amount of funds 
appropriated for a fiscal year under paragraph (1) are not 
sufficient to carry out this section, the Secretary may use 
the fees collected under subsection (g) for the cost of providing 
guarantees of bonds and notes under this section. 
‘‘(i) INVESTMENT
IN
GUARANTEED
BONDS
INELIGIBLE
FOR 
COMMUNITY REINVESTMENT ACT PURPOSES.—Notwithstanding any 
other provision of law, any investment by a financial institution 
in bonds or notes guaranteed under the Program shall not be 
taken into account in assessing the record of such institution for 
purposes of the Community Reinvestment Act of 1977 (12 U.S.C. 
2901). 
‘‘(j) ADMINISTRATION.— 
Deadlines. 
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124 STAT. 2520 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(1) REGULATIONS.—Not later than 1 year after the date 
of enactment of this section, the Secretary shall promulgate 
regulations to carry out this section. 
‘‘(2) IMPLEMENTATION.—Not later than 2 years after the 
date of enactment of this section, the Secretary shall implement 
this section. 
‘‘(k) TERMINATION.—This section is repealed, and the authority 
provided under this section shall terminate, on September 30, 
2014.’’. 
SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT. 
(a) IN GENERAL.—Section 7(a)(31)(D) of the Small Business 
Act (15 U.S.C. 636(a)(31)(D)) is amended by striking ‘‘$350,000’’ 
and inserting ‘‘$1,000,000’’. 
(b) PROSPECTIVE REPEAL.—Effective 1 year after the date of 
enactment of this Act, section 7(a)(31)(D) of the Small Business 
Act (15 U.S.C. 636(a)(31)(D)) is amended by striking ‘‘$1,000,000’’ 
and inserting ‘‘$350,000’’. 
SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX INCREASES. 
(a) IN GENERAL.—Except as provided in subsection (b), nothing 
in section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 1118, 1122, 
or 1131, or an amendment made by such sections, shall be construed 
to limit the ability of Congress to appropriate funds. 
(b) TARP FUNDS AND TAX INCREASES.— 
(1) IN GENERAL.—Any covered amounts may not be used 
to carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
1118, 1122, or 1131, or an amendment made by such sections. 
(2) DEFINITION.—In this subsection, the term ‘‘covered 
amounts’’ means— 
(A) the amounts made available to the Secretary of 
the Treasury under title I of the Emergency Economic 
Stabilization Act of 2008 S.C. 5201 et seq.) to purchase 
(under section 101) or guarantee (under section 102) assets 
under that Act; and 
(B) any revenue increase attributable to any amend-
ment to the Internal Revenue Code of 1986 made during 
the period beginning on the date of enactment of this 
Act and ending on December 31, 2010. 
Subtitle B—Small Business Trade and 
Exporting 
SEC. 1201. SHORT TITLE. 
This subtitle may be cited as the ‘‘Small Business Export 
Enhancement and International Trade Act of 2010’’. 
SEC. 1202. DEFINITIONS. 
(a) DEFINITIONS.—In this subtitle— 
(1) the term ‘‘Associate Administrator’’ means the Associate 
Administrator for International Trade appointed under section 
22(a)(2) of the Small Business Act, as amended by this subtitle; 
(2) the term ‘‘Export Assistance Center’’ means a one- 
stop shop referred to in section 2301(b)(8) of the Omnibus 
Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); 
and 
15 USC 649b 
note. 
15 USC 631 note. 
Small Business 
Export 
Enhancement 
and International 
Trade Act of 
2010. 
15 USC 632 note. 
Effective date. 
15 USC 636 note. 
Repeal. 
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124 STAT. 2521 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(3) the term ‘‘rural small business concern’’ means a small 
business concern located in a rural area, as that term is defined 
in section 1393(a)(2) of the Internal Revenue Code of 1986. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) DEFINITIONS.—Section 3 of the Small Business Act (15 
U.S.C. 632) is amended by adding at the end the following: 
‘‘(t) SMALL BUSINESS DEVELOPMENT CENTER.—In this Act, the 
term ‘small business development center’ means a small business 
development center described in section 21. 
‘‘(u) REGION OF THE ADMINISTRATION.—In this Act, the term 
‘region of the Administration’ means the geographic area served 
by a regional office of the Administration established under section 
4(a).’’. 
(2) CONFORMING AMENDMENT.—Section 4(b)(3)(B)(x) of the 
Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by 
striking ‘‘Administration district and region’’ and inserting ‘‘dis-
trict and region of the Administration’’. 
SEC. 1203. OFFICE OF INTERNATIONAL TRADE. 
(a) ESTABLISHMENT.—Section 22 of the Small Business Act 
(15 U.S.C. 649) is amended— 
(1) by striking ‘‘SEC. 22. (a) There’’ and inserting the fol-
lowing: 
‘‘SEC. 22. OFFICE OF INTERNATIONAL TRADE. 
‘‘(a) ESTABLISHMENT.— 
‘‘(1) OFFICE.—There’’; and 
(2) in subsection (a)— 
(A) in paragraph (1), as so designated, by striking 
the period and inserting ‘‘for the primary purposes of 
increasing— 
‘‘(A) the number of small business concerns that export; 
and 
‘‘(B) the volume of exports by small business concerns.’’; 
and 
(B) by adding at the end the following: 
‘‘(2) ASSOCIATE ADMINISTRATOR.—The head of the Office 
shall be the Associate Administrator for International Trade, 
who shall be responsible to the Administrator.’’. 
(b) AUTHORITY FOR ADDITIONAL ASSOCIATE ADMINISTRATOR.— 
Section 4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) 
is amended— 
(1) in the fifth sentence, by striking ‘‘five Associate 
Administrators’’ and inserting ‘‘Associate Administrators’’; and 
(2) by adding at the end the following: ‘‘One such Associate 
Administrator shall be the Associate Administrator for Inter-
national Trade, who shall be the head of the Office of Inter-
national Trade established under section 22.’’. 
(c) DISCHARGE OF INTERNATIONAL TRADE RESPONSIBILITIES OF 
ADMINISTRATION.—Section 22 of the Small Business Act (15 U.S.C. 
649) is amended by adding at the end the following: 
‘‘(h) DISCHARGE OF INTERNATIONAL TRADE RESPONSIBILITIES OF 
ADMINISTRATION.—The Administrator shall ensure that— 
‘‘(1) the responsibilities of the Administration regarding 
international trade are carried out by the Associate Adminis-
trator; 
‘‘(2) the Associate Administrator has sufficient resources 
to carry out such responsibilities; and 
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124 STAT. 2522 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(3) the Associate Administrator has direct supervision and 
control over— 
‘‘(A) the staff of the Office; and 
‘‘(B) any employee of the Administration whose prin-
cipal duty station is an Export Assistance Center, or any 
successor entity.’’. 
(d) ROLE
OF ASSOCIATE ADMINISTRATOR
IN CARRYING OUT 
INTERNATIONAL TRADE POLICY.—Section 2(b)(1) of the Small Busi-
ness Act (15 U.S.C. 631(b)(1)) is amended in the matter preceding 
subparagraph (A)— 
(1) by inserting ‘‘the Administrator of’’ before ‘‘the Small 
Business Administration’’; and 
(2) by inserting ‘‘through the Associate Administrator for 
International Trade, and’’ before ‘‘in cooperation with’’. 
(e) IMPLEMENTATION DATE.—Not later than 90 days after the 
date of enactment of this Act, the Administrator of the Small 
Business Administration shall appoint an Associate Administrator 
for International Trade under section 22(a) of the Small Business 
Act (15 U.S.C. 649(a)), as added by this section. 
SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE. 
(a) AMENDMENTS
TO SECTION 22.—Section 22 of the Small 
Business Act (15 U.S.C. 649) is amended— 
(1) by striking subsection (b) and inserting the following: 
‘‘(b) TRADE DISTRIBUTION NETWORK.—The Associate Adminis-
trator, working in close cooperation with the Secretary of Commerce, 
the United States Trade Representative, the Secretary of Agri-
culture, the Secretary of State, the President of the Export-Import 
Bank of the United States, the President of the Overseas Private 
Investment Corporation, Director of the United States Trade and 
Development Agency, and other relevant Federal agencies, small 
business development centers engaged in export promotion efforts, 
Export Assistance Centers, regional and district offices of the 
Administration, the small business community, and relevant State 
and local export promotion programs, shall— 
‘‘(1) maintain a distribution network, using regional and 
district offices of the Administration, the small business 
development center network, networks of women’s business 
centers, the Service Corps of Retired Executives authorized 
by section 8(b)(1), and Export Assistance Centers, for programs 
relating to— 
‘‘(A) trade promotion; 
‘‘(B) trade finance; 
‘‘(C) trade adjustment assistance; 
‘‘(D) trade remedy assistance; and 
‘‘(E) trade data collection; 
‘‘(2) aggressively market the programs described in para-
graph (1) and disseminate information, including computerized 
marketing data, to small business concerns on exporting trends, 
market-specific growth, industry trends, and international pros-
pects for exports; 
‘‘(3) promote export assistance programs through the dis-
trict and regional offices of the Administration, the small busi-
ness development center network, Export Assistance Centers, 
the network of women’s business centers, chapters of the 
Service Corps of Retired Executives, State and local export 
promotion programs, and partners in the private sector; and 
Appointment. 
15 USC 649 note. 
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124 STAT. 2523 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(4) give preference in hiring or approving the transfer 
of any employee into the Office or to a position described 
in subsection (c)(9) to otherwise qualified applicants who are 
fluent in a language in addition to English, to— 
‘‘(A) accompany small business concerns on foreign 
trade missions; and 
‘‘(B) translate documents, interpret conversations, and 
facilitate multilingual transactions, including by providing 
referral lists for translation services, if required.’’; 
(2) in subsection (c)— 
(A) by striking ‘‘(c) The Office’’ and inserting the fol-
lowing: 
‘‘(c) PROMOTION
OF
SALES
OPPORTUNITIES.—The Associate 
Administrator’’; 
(B) by redesignating paragraphs (1) through (8) as 
paragraphs (2) through (9), respectively; 
(C) by inserting before paragraph (2), as so redesig-
nated, the following: 
‘‘(1) establish annual goals for the Office relating to— 
‘‘(A) enhancing the exporting capability of small busi-
ness concerns and small manufacturers; 
‘‘(B) facilitating technology transfers; 
‘‘(C) enhancing programs and services to assist small 
business concerns and small manufacturers to compete 
effectively and efficiently in foreign markets; 
‘‘(D) increasing the ability of small business concerns 
to access capital; and 
‘‘(E) disseminating information concerning Federal, 
State, and private programs and initiatives;’’; 
(D) in paragraph (2), as so redesignated, by striking 
‘‘mechanism for’’ and all that follows through ‘‘(D) assisting’’ 
and inserting the following: ‘‘mechanism for— 
‘‘(A) identifying subsectors of the small business 
community with strong export potential; 
‘‘(B) identifying areas of demand in foreign markets; 
‘‘(C) prescreening foreign buyers for commercial and 
credit purposes; and 
‘‘(D) assisting’’; 
(E) in paragraph (3), as so redesignated, by striking 
‘‘assist small businesses in the formation and utilization 
of’’ and inserting ‘‘assist small business concerns in forming 
and using’’; 
(F) in paragraph (4), as so redesignated— 
(i) by striking ‘‘local’’ and inserting ‘‘district’’; 
(ii) by striking ‘‘existing’’; 
(iii) by striking ‘‘Small Business Development 
Center network’’ and inserting ‘‘small business develop-
ment center network’’; and 
(iv) by striking ‘‘Small Business Development 
Center Program’’ and inserting ‘‘small business 
development center program’’; 
(G) in paragraph (5), as so redesignated— 
(i) in subparagraph (A), by striking ‘‘Gross State 
Produce’’ and inserting ‘‘Gross State Product’’; 
(ii) in subparagraph (B), by striking ‘‘SIC’’ each 
place it appears and inserting ‘‘North American 
Industry Classification System’’; and 
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124 STAT. 2524 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(iii) in subparagraph (C), by striking ‘‘small 
businesses’’ and inserting ‘‘small business concerns’’; 
(H) in paragraph (6), as so redesignated, by striking 
the period at the end and inserting a semicolon; 
(I) in paragraph (7), as so redesignated— 
(i) in the matter preceding subparagraph (A)— 
(I) by inserting ‘‘concerns’’ after ‘‘small busi-
ness’’; and 
(II) by striking ‘‘current’’ and inserting ‘‘up 
to date’’; 
(ii) in subparagraph (A), by striking ‘‘Administra-
tion’s regional offices’’ and inserting ‘‘regional and dis-
trict offices of the Administration’’; 
(iii) in subparagraph (B) by striking ‘‘current’’; 
(iv) in subparagraph (C), by striking ‘‘current’’; 
and 
(v) by striking ‘‘small businesses’’ each place that 
term appears and inserting ‘‘small business concerns’’; 
(J) in paragraph (8), as so redesignated, by striking 
and at the end; 
(K) in paragraph (9), as so redesignated— 
(i) in the matter preceding subparagraph (A)— 
(I) by striking ‘‘full-time export development 
specialists to each Administration regional office 
and assigning’’; and 
(II) by striking ‘‘person in each district office. 
Such specialists’’ and inserting ‘‘individual in each 
district office and providing each Administration 
regional office with a full-time export development 
specialist, who’’; 
(ii) in subparagraph (B)— 
(I) by striking ‘‘current’’; and 
(II) by striking ‘‘with’’ and inserting ‘‘in’’; 
(iii) in subparagraph (D)— 
(I) by striking ‘‘Administration personnel 
involved in granting’’ and inserting ‘‘personnel of 
the Administration involved in making’’; and 
(II) by striking ‘‘and’’ at the end; 
(iv) in subparagraph (E)— 
(I) by striking ‘‘small businesses’ needs’’ and 
inserting ‘‘the needs of small business concerns’’; 
and 
(II) by striking the period at the end and 
inserting a semicolon; 
(v) by adding at the end the following: 
‘‘(F) participate, jointly with employees of the Office, 
in an annual training program that focuses on current 
small business needs for exporting; and 
‘‘(G) develop and conduct training programs for 
exporters and lenders, in cooperation with the Export 
Assistance Centers, the Department of Commerce, the 
Department of Agriculture, small business development 
centers, women’s business centers, the Export-Import Bank 
of the United States, the Overseas Private Investment 
Corporation, and other relevant Federal agencies;’’; and 
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124 STAT. 2525 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(vi) by striking ‘‘small businesses’’ each place that 
term appears and inserting ‘‘small business concerns’’; 
and 
(L) by adding at the end the following: 
‘‘(10) make available on the website of the Administration 
the name and contact information of each individual described 
in paragraph (9); 
‘‘(11) carry out a nationwide marketing effort using tech-
nology, online resources, training, and other strategies to pro-
mote exporting as a business development opportunity for small 
business concerns; 
‘‘(12) disseminate information to the small business commu-
nity through regional and district offices of the Administration, 
the small business development center network, Export Assist-
ance Centers, the network of women’s business centers, chap-
ters of the Service Corps of Retired Executives authorized by 
section 8(b)(1), State and local export promotion programs, 
and partners in the private sector regarding exporting trends, 
market-specific growth, industry trends, and prospects for 
exporting; and 
‘‘(13) establish and carry out training programs for the 
staff of the regional and district offices of the Administration 
and resource partners of the Administration on export pro-
motion and providing assistance relating to exports.’’; 
(3) in subsection (d)— 
(A) by redesignating paragraphs (1) through (5) as 
clauses (i) through (v), respectively, and adjusting the mar-
gins accordingly; 
(B) by striking ‘‘(d) The Office’’ and inserting the fol-
lowing: 
‘‘(d) EXPORT FINANCING PROGRAMS.— 
‘‘(1) IN GENERAL.—The Associate Administrator’’; and 
(C) by striking ‘‘To accomplish this goal, the Office 
shall work’’ and inserting the following: 
‘‘(2) TRADE FINANCE SPECIALIST.—To accomplish the goal 
established under paragraph (1), the Associate Administrator 
shall— 
‘‘(A) designate at least 1 individual within the Adminis-
tration as a trade finance specialist to oversee international 
loan programs and assist Administration employees with 
trade finance issues; and 
‘‘(B) work’’; 
(4) in subsection (e), by striking ‘‘(e) The Office’’ and 
inserting the following: 
‘‘(e) TRADE REMEDIES.—The Associate Administrator’’; 
(5) by amending subsection (f) to read as follows: 
‘‘(f) REPORTING REQUIREMENT.—The Associate Administrator 
shall submit an annual report to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives that contains— 
‘‘(1) a description of the progress of the Office in imple-
menting the requirements of this section; 
‘‘(2) a detailed account of the results of export growth 
activities of the Administration, including the activities of each 
district and regional office of the Administration, based on 
the performance measures described in subsection (i); 
Designation. 
Web posting. 
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124 STAT. 2526 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(3) an estimate of the total number of jobs created or 
retained as a result of export assistance provided by the 
Administration and resource partners of the Administration; 
‘‘(4) for any travel by the staff of the Office, the destination 
of such travel and the benefits to the Administration and to 
small business concerns resulting from such travel; and 
‘‘(5) a description of the participation by the Office in trade 
negotiations.’’; 
(6) in subsection (g), by striking ‘‘(g) The Office’’ and 
inserting the following: 
‘‘(g) STUDIES.—The Associate Administrator’’; and 
(7) by adding after subsection (h), as added by section 
1203 of this subtitle, the following: 
‘‘(i) EXPORT AND TRADE COUNSELING.— 
‘‘(1) DEFINITION.—In this subsection— 
‘‘(A) the term ‘lead small business development center’ 
means a small business development center that has 
received a grant from the Administration; and 
‘‘(B) the term ‘lead women’s business center’ means 
a women’s business center that has received a grant from 
the Administration. 
‘‘(2) CERTIFICATION
PROGRAM.—The Administrator shall 
establish an export and trade counseling certification program 
to certify employees of lead small business development centers 
and lead women’s business centers in providing export assist-
ance to small business concerns. 
‘‘(3) NUMBER OF CERTIFIED EMPLOYEES.—The Administrator 
shall ensure that the number of employees of each lead small 
business development center who are certified in providing 
export assistance is not less than the lesser of— 
‘‘(A) 5; or 
‘‘(B) 10 percent of the total number of employees of 
the lead small business development center. 
‘‘(4) REIMBURSEMENT FOR CERTIFICATION.— 
‘‘(A) IN GENERAL.—Subject to the availability of appro-
priations, the Administrator shall reimburse a lead small 
business development center or a lead women’s business 
center for costs relating to the certification of an employee 
of the lead small business center or lead women’s business 
center in providing export assistance under the program 
established under paragraph (2). 
‘‘(B) LIMITATION.—The total amount reimbursed by the 
Administrator under subparagraph (A) may not exceed 
$350,000 in any fiscal year. 
‘‘(j) PERFORMANCE MEASURES.— 
‘‘(1) IN
GENERAL.—The Associate Administrator shall 
develop performance measures for the Administration to sup-
port export growth goals for the activities of the Office under 
this section that include— 
‘‘(A) the number of small business concerns that— 
‘‘(i) receive assistance from the Administration; 
‘‘(ii) had not exported goods or services before 
receiving the assistance described in clause (i); and 
‘‘(iii) export goods or services; 
‘‘(B) the number of small business concerns receiving 
assistance from the Administration that export goods or 
services to a market outside the United States into which 
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124 STAT. 2527 
PUBLIC LAW 111–240—SEPT. 27, 2010 
the small business concern did not export before receiving 
the assistance; 
‘‘(C) export revenues by small business concerns 
assisted by programs of the Administration; 
‘‘(D) the number of small business concerns referred 
to an Export Assistance Center or a small business develop-
ment center by the staff of the Office; 
‘‘(E) the number of small business concerns referred 
to the Administration by an Export Assistance Center or 
a small business development center; and 
‘‘(F) the number of small business concerns referred 
to the Department of Commerce, the Department of Agri-
culture, the Department of State, the Export-Import Bank 
of the United States, the Overseas Private Investment 
Corporation, or the United States Trade and Development 
Agency by the staff of the Office, an Export Assistance 
Center, or a small business development center. 
‘‘(2) 
JOINT
PERFORMANCE
MEASURES.—The 
Associate 
Administrator shall develop joint performance measures for 
the district offices of the Administration and the Export Assist-
ance Centers that include the number of export loans made 
under— 
‘‘(A) section 7(a)(16); 
‘‘(B) the Export Working Capital Program established 
under section 7(a)(14); 
‘‘(C) the Preferred Lenders Program, as defined in sec-
tion 7(a)(2)(C)(ii); and 
‘‘(D) the export express program established under sec-
tion 7(a)(34). 
‘‘(3) CONSISTENCY OF TRACKING.—The Associate Adminis-
trator, in coordination with the departments and agencies that 
are represented on the Trade Promotion Coordinating Com-
mittee established under section 2312 of the Export Enhance-
ment Act of 1988 (15 U.S.C. 4727) and the small business 
development center network, shall develop a system to track 
exports by small business concerns, including information 
relating to the performance measures developed under para-
graph (1), that is consistent with systems used by the depart-
ments and agencies and the network.’’. 
(b) REPORT.—Not later than 60 days after the date of enactment 
of this Act, the Administrator shall submit a report to the Com-
mittee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives 
on any travel by the staff of the Office of International Trade 
of the Administration, during the period beginning on October 1, 
2004, and ending on the date of enactment of the Act, including 
the destination of such travel and the benefits to the Administration 
and to small business concerns resulting from such travel. 
SEC. 1205. EXPORT ASSISTANCE CENTERS. 
(a) EXPORT ASSISTANCE CENTERS.—Section 22 of the Small 
Business Act (15 U.S.C. 649), as amended by this subtitle, is 
amended by adding at the end the following: 
‘‘(k) EXPORT ASSISTANCE CENTERS.— 
‘‘(1) EXPORT FINANCE SPECIALISTS.— 
‘‘(A) MINIMUM NUMBER OF EXPORT FINANCE SPECIAL-
ISTS.—On and after the date that is 90 days after the 
Deadlines. 
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124 STAT. 2528 
PUBLIC LAW 111–240—SEPT. 27, 2010 
date of enactment of this subsection, the Administrator, 
in coordination with the Secretary of Commerce, shall 
ensure that the number of export finance specialists is 
not less than the number of such employees so assigned 
on January 1, 2003. 
‘‘(B) EXPORT FINANCE SPECIALISTS ASSIGNED TO EACH 
REGION OF THE ADMINISTRATION.—On and after the date 
that is 2 years after the date of enactment of this sub-
section, the Administrator, in coordination with the Sec-
retary of Commerce, shall ensure that there are not fewer 
than 3 export finance specialists in each region of the 
Administration. 
‘‘(2) PLACEMENT OF EXPORT FINANCE SPECIALISTS.— 
‘‘(A) PRIORITY.—The Administrator shall give priority, 
to the maximum extent practicable, to placing employees 
of the Administration at any Export Assistance Center 
that— 
‘‘(i) had an Administration employee assigned to 
the Export Assistance Center before January 2003; 
and 
‘‘(ii) has not had an Administration employee 
assigned to the Export Assistance Center during the 
period beginning January 2003, and ending on the 
date of enactment of this subsection, either through 
retirement or reassignment. 
‘‘(B) NEEDS OF EXPORTERS.—The Administrator shall, 
to the maximum extent practicable, strategically assign 
Administration employees to Export Assistance Centers, 
based on the needs of exporters. 
‘‘(C) RULE
OF
CONSTRUCTION.—Nothing in this sub-
section may be construed to require the Administrator to 
reassign or remove an export finance specialist who is 
assigned to an Export Assistance Center on the date of 
enactment of this subsection. 
‘‘(3) GOALS.—The Associate Administrator shall work with 
the Department of Commerce, the Export-Import Bank of the 
United States, and the Overseas Private Investment Corpora-
tion to establish shared annual goals for the Export Assistance 
Centers. 
‘‘(4) OVERSIGHT.—The Associate Administrator shall des-
ignate an individual within the Administration to oversee all 
activities conducted by Administration employees assigned to 
Export Assistance Centers. 
‘‘(l) DEFINITIONS.—In this section— 
‘‘(1) the term ‘Associate Administrator’ means the Associate 
Administrator for International Trade described in subsection 
(a)(2); 
‘‘(2) the term ‘Export Assistance Center’ means a one- 
stop shop for United States exporters established by the United 
States and Foreign Commercial Service of the Department of 
Commerce pursuant to section 2301(b)(8) of the Omnibus Trade 
and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); 
‘‘(3) the term ‘export finance specialist’ means a full-time 
equivalent employee of the Office assigned to an Export Assist-
ance Center to carry out the duties described in subsection 
(e); and 
Designation. 
Time period. 
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124 STAT. 2529 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(4) the term ‘Office’ means the Office of International 
Trade established under subsection (a)(1).’’. 
(b) STUDY AND REPORT ON FILLING GAPS IN HIGH-AND-LOW- 
EXPORT VOLUME AREAS.— 
(1) STUDY AND REPORT.—Not later than 6 months after 
the date of enactment of this Act, and every 2 years thereafter, 
the Administrator shall— 
(A) conduct a study of— 
(i) the volume of exports for each State; 
(ii) the availability of export finance specialists 
in each State; 
(iii) the number of exporters in each State that 
are small business concerns; 
(iv) the percentage of exporters in each State that 
are small business concerns; 
(v) the change, if any, in the number of exporters 
that are small business concerns in each State— 
(I) for the first study conducted under this 
subparagraph, during the 10-year period ending 
on the date of enactment of this Act; and 
(II) for each subsequent study, during the 10- 
year period ending on the date the study is com-
menced; 
(vi) the total value of the exports in each State 
by small business concerns; 
(vii) the percentage of the total volume of exports 
in each State that is attributable to small business 
concerns; and 
(viii) the change, if any, in the percentage of the 
total volume of exports in each State that is attrib-
utable to small business concerns— 
(I) for the first study conducted under this 
subparagraph, during the 10-year period ending 
on the date of enactment of this Act; and 
(II) for each subsequent study, during the 10- 
year period ending on the date the study is com-
menced; and 
(B) submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a report 
containing— 
(i) the results of the study under subparagraph 
(A); 
(ii) to the extent practicable, a recommendation 
regarding how to eliminate gaps between the supply 
of and demand for export finance specialists in the 
15 States that have the greatest volume of exports, 
based upon the most recent data available from the 
Department of Commerce; 
(iii) to the extent practicable, a recommendation 
regarding how to eliminate gaps between the supply 
of and demand for export finance specialists in the 
15 States that have the lowest volume of exports, based 
upon the most recent data available from the Depart-
ment of Commerce; and 
(iv) such additional information as the Adminis-
trator determines is appropriate. 
15 USC 649 note. 
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124 STAT. 2530 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(2) DEFINITION.—In this subsection, the term ‘‘export 
finance specialist’’ has the meaning given that term in section 
22(l) of the Small Business Act, as added by this title. 
SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS. 
(a) LOAN LIMITS.— 
(1) TOTAL AMOUNT OUTSTANDING.—Section 7(a)(3)(B) of the 
Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by 
striking ‘‘$1,750,000, of which not more than $1,250,000’’ and 
inserting ‘‘$4,500,000 (or if the gross loan amount would exceed 
$5,000,000), of which not more than $4,000,000’’. 
(2) PARTICIPATION.—Section 7(a)(2) of the Small Business 
Act (15 U.S.C. 636(a)(2)) is amended— 
(A) in subparagraph (A), in the matter preceding clause 
(i), by striking ‘‘subparagraph (B)’’ and inserting ‘‘subpara-
graphs (B), (D), and (E)’’; 
(B) in subparagraph (D), by striking ‘‘Notwithstanding 
subparagraph (A), in’’ and inserting ‘‘In’’; and 
(C) by adding at the end the following: 
‘‘(E) PARTICIPATION IN INTERNATIONAL TRADE LOAN.— 
In an agreement to participate in a loan on a deferred 
basis under paragraph (16), the participation by the 
Administration may not exceed 90 percent.’’. 
(b) WORKING CAPITAL.—Section 7(a)(16)(A) of the Small Busi-
ness Act (15 U.S.C. 636(a)(16)(A)) is amended— 
(1) in the matter preceding clause (i), by striking ‘‘in— 
’’ and inserting ‘‘—’’; 
(2) in clause (i)— 
(A) by inserting ‘‘in’’ after ‘‘(i)’’; and 
(B) by striking ‘‘or’’ at the end; 
(3) in clause (ii)— 
(A) by inserting ‘‘in’’ after ‘‘(ii)’’; and 
(B) by striking the period at the end and inserting 
‘‘, including any debt that qualifies for refinancing under 
any other provision of this subsection; or’’; and 
(4) by adding at the end the following: 
‘‘(iii) by providing working capital.’’. 
(c) COLLATERAL.—Section 7(a)(16)(B) of the Small Business Act 
(15 U.S.C. 636(a)(16)(B)) is amended— 
(1) by striking ‘‘Each loan’’ and inserting the following: 
‘‘(i) IN
GENERAL.—Except as provided in clause 
(ii), each loan’’; and 
(2) by adding at the end the following: 
‘‘(ii) EXCEPTION.—A loan under this paragraph may 
be secured by a second lien position on the property 
or equipment financed by the loan or on other assets 
of the small business concern, if the Administrator 
determines the lien provides adequate assurance of 
the payment of the loan.’’. 
(d) EXPORT WORKING CAPITAL PROGRAM.—Section 7(a) of the 
Small Business Act (15 U.S.C. 636(a)) is amended— 
(1) in paragraph (2)(D), by striking ‘‘not exceed’’ and 
inserting ‘‘be’’; and 
(2) in paragraph (14)— 
(A) by striking ‘‘(A) The Administration’’ and inserting 
the following: ‘‘EXPORT WORKING CAPITAL PROGRAM.— 
‘‘(A) IN GENERAL.—The Administrator’’; 
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124 STAT. 2531 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(B) by striking ‘‘(B) When considering’’ and inserting 
the following: 
‘‘(C) CONSIDERATIONS.—When considering’’; 
(C) by striking ‘‘(C) The Administration’’ and inserting 
the following: 
‘‘(D) MARKETING.—The Administrator’’; and 
(D) by inserting after subparagraph (A) the following: 
‘‘(B) TERMS.— 
‘‘(i) LOAN AMOUNT.—The Administrator may not 
guarantee a loan under this paragraph of more than 
$5,000,000. 
‘‘(ii) FEES.— 
‘‘(I) IN GENERAL.—For a loan under this para-
graph, the Administrator shall collect the fee 
assessed under paragraph (23) not more frequently 
than once each year. 
‘‘(II) UNTAPPED
CREDIT.—The Administrator 
may not assess a fee on capital that is not accessed 
by the small business concern.’’. 
(e) PARTICIPATION IN PREFERRED LENDERS PROGRAM.—Section 
7(a)(2)(C) of the Small Business Act (15 U.S.C. 636(a)(2)(C)) is 
amended— 
(1) by redesignating clause (ii) as clause (iii); and 
(2) by inserting after clause (i) the following: 
‘‘(ii) EXPORT-IMPORT BANK LENDERS.—Any lender 
that is participating in the Delegated Authority Lender 
Program of the Export-Import Bank of the United 
States (or any successor to the Program) shall be 
eligible to participate in the Preferred Lenders Pro-
gram.’’. 
(f) EXPORT EXPRESS PROGRAM.—Section 7(a) of the Small Busi-
ness Act (15 U.S.C. 636(a)) is amended by adding at the end 
the following: 
‘‘(35) EXPORT EXPRESS PROGRAM.— 
‘‘(A) DEFINITIONS.—In this paragraph— 
‘‘(i) 
the 
term 
‘export 
development 
activity’ 
includes— 
‘‘(I) obtaining a standby letter of credit when 
required as a bid bond, performance bond, or 
advance payment guarantee; 
‘‘(II) participation in a trade show that takes 
place outside the United States; 
‘‘(III) translation of product brochures or cata-
logues for use in markets outside the United 
States; 
‘‘(IV) obtaining a general line of credit for 
export purposes; 
‘‘(V) performing a service contract from buyers 
located outside the United States; 
‘‘(VI) obtaining transaction-specific financing 
associated with completing export orders; 
‘‘(VII) purchasing real estate or equipment to 
be used in the production of goods or services 
for export; 
‘‘(VIII) providing term loans or other financing 
to enable a small business concern, including an 
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124 STAT. 2532 
PUBLIC LAW 111–240—SEPT. 27, 2010 
export trading company and an export manage-
ment company, to develop a market outside the 
United States; and 
‘‘(IX) acquiring, constructing, renovating, mod-
ernizing, improving, or expanding a production 
facility or equipment to be used in the United 
States in the production of goods or services for 
export; and 
‘‘(ii) the term ‘express loan’ means a loan in which 
a lender uses to the maximum extent practicable the 
loan analyses, procedures, and documentation of the 
lender to provide expedited processing of the loan 
application. 
‘‘(B) AUTHORITY.—The Administrator may guarantee 
the timely payment of an express loan to a small business 
concern made for an export development activity. 
‘‘(C) LEVEL OF PARTICIPATION.— 
‘‘(i) MAXIMUM AMOUNT.—The maximum amount of 
an express loan guaranteed under this paragraph shall 
be $500,000. 
‘‘(ii) PERCENTAGE.—For an express loan guaran-
teed under this paragraph, the Administrator shall 
guarantee— 
‘‘(I) 90 percent of a loan that is not more 
than $350,000; and 
‘‘(II) 75 percent of a loan that is more than 
$350,000 and not more than $500,000.’’. 
(g) ANNUAL LISTING OF EXPORT FINANCE LENDERS.—Section 
7(a)(16) of the Small Business Act (15 U.S.C. 636(a)(16)) is amended 
by adding at the end the following: 
‘‘(F) LIST OF EXPORT FINANCE LENDERS.— 
‘‘(i) PUBLICATION OF LIST REQUIRED.—The Adminis-
trator shall publish an annual list of the banks and 
participating lending institutions that, during the 1- 
year period ending on the date of publication of the 
list, have made loans guaranteed by the Administra-
tion under— 
‘‘(I) this paragraph; 
‘‘(II) paragraph (14); or 
‘‘(III) paragraph (34). 
‘‘(ii) AVAILABILITY
OF
LIST.—The Administrator 
shall— 
‘‘(I) post the list published under clause (i) 
on the website of the Administration; and 
‘‘(II) make the list published under clause (i) 
available, upon request, at each district office of 
the Administration.’’. 
(h) APPLICABILITY.—The amendments made by subsections (a) 
through (f) shall apply with respect to any loan made after the 
date of enactment of this Act. 
SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘eligible small business concern’’ means a 
small business concern that— 
15 USC 649b 
note. 
15 USC 636 note. 
Web posting. 
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124 STAT. 2533 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(A) has been in business for not less than the 1-year 
period ending on the date on which assistance is provided 
using a grant under this section; 
(B) is operating profitably, based on operations in the 
United States; 
(C) has demonstrated understanding of the costs associ-
ated with exporting and doing business with foreign pur-
chasers, including the costs of freight forwarding, customs 
brokers, packing and shipping, as determined by the Asso-
ciate Administrator; and 
(D) has in effect a strategic plan for exporting; 
(2) the term ‘‘program’’ means the State Trade and Export 
Promotion Grant Program established under subsection (b); 
(3) the term ‘‘small business concern owned and controlled 
by women’’ has the meaning given that term in section 3 
of the Small Business Act (15 U.S.C. 632); 
(4) the term ‘‘socially and economically disadvantaged small 
business concern’’ has the meaning given that term in section 
8(a)(4)(A) of the Small Business Act (15 U.S.C. 6537(a)(4)(A)); 
and 
(5) the term ‘‘State’’ means each of the several States, 
the District of Columbia, the Commonwealth of Puerto Rico, 
the Virgin Islands, Guam, and American Samoa. 
(b) ESTABLISHMENT OF PROGRAM.—The Associate Administrator 
shall establish a 3-year trade and export promotion pilot program 
to be known as the State Trade and Export Promotion Grant 
Program, to make grants to States to carry out export programs 
that assist eligible small business concerns in— 
(1) participation in a foreign trade mission; 
(2) a foreign market sales trip; 
(3) a subscription to services provided by the Department 
of Commerce; 
(4) the payment of website translation fees; 
(5) the design of international marketing media; 
(6) a trade show exhibition; 
(7) participation in training workshops; or 
(8) any other export initiative determined appropriate by 
the Associate Administrator. 
(c) GRANTS.— 
(1) JOINT REVIEW.—In carrying out the program, the Asso-
ciate Administrator may make a grant to a State to increase 
the number of eligible small business concerns in the State 
that export or to increase the value of the exports by eligible 
small business concerns in the State. 
(2) CONSIDERATIONS.—In making grants under this section, 
the Associate Administrator may give priority to an application 
by a State that proposes a program that— 
(A) focuses on eligible small business concerns as part 
of an export promotion program; 
(B) demonstrates success in promoting exports by— 
(i) socially and economically disadvantaged small 
business concerns; 
(ii) small business concerns owned or controlled 
by women; and 
(iii) rural small business concerns; 
(C) promotes exports from a State that is not 1 of 
the 10 States with the highest percentage of exporters 
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124 STAT. 2534 
PUBLIC LAW 111–240—SEPT. 27, 2010 
that are small business concerns, based upon the latest 
data available from the Department of Commerce; and 
(D) promotes new-to-market export opportunities to 
the People’s Republic of China for eligible small business 
concerns in the United States. 
(3) LIMITATIONS.— 
(A) SINGLE
APPLICATION.—A State may not submit 
more than 1 application for a grant under the program 
in any 1 fiscal year. 
(B) PROPORTION
OF
AMOUNTS.—The total value of 
grants under the program made during a fiscal year to 
the 10 States with the highest number of exporters that 
are small business concerns, based upon the latest data 
available from the Department of Commerce, shall be not 
more than 40 percent of the amounts appropriated for 
the program for that fiscal year. 
(4) APPLICATION.—A State desiring a grant under the pro-
gram shall submit an application at such time, in such manner, 
and accompanied by such information as the Associate Adminis-
trator may establish. 
(d) COMPETITIVE BASIS.—The Associate Administrator shall 
award grants under the program on a competitive basis. 
(e) FEDERAL SHARE.—The Federal share of the cost of an export 
program carried out using a grant under the program shall be— 
(1) for a State that has a high export volume, as determined 
by the Associate Administrator, not more than 65 percent; 
and 
(2) for a State that does not have a high export volume, 
as determined by the Associate Administrator, not more than 
75 percent. 
(f) NON-FEDERAL SHARE.—The non-Federal share of the cost 
of an export program carried using a grant under the program 
shall be comprised of not less than 50 percent cash and not more 
than 50 percent of indirect costs and in-kind contributions, except 
that no such costs or contributions may be derived from funds 
from any other Federal program. 
(g) REPORTS.— 
(1) INITIAL REPORT.—Not later than 120 days after the 
date of enactment of this Act, the Associate Administrator 
shall submit to the Committee on Small Business and 
Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives a report, which shall 
include— 
(A) a description of the structure of and procedures 
for the program; 
(B) a management plan for the program; and 
(C) a description of the merit-based review process 
to be used in the program. 
(2) ANNUAL REPORTS.—The Associate Administrator shall 
submit an annual report to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives regarding the 
program, which shall include— 
(A) the number and amount of grants made under 
the program during the preceding year; 
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124 STAT. 2535 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(B) a list of the States receiving a grant under the 
program during the preceding year, including the activities 
being performed with grant; and 
(C) the effect of each grant on exports by eligible small 
business concerns in the State receiving the grant. 
(h) REVIEWS BY INSPECTOR GENERAL.— 
(1) IN GENERAL.—The Inspector General of the Administra-
tion shall conduct a review of— 
(A) the extent to which recipients of grants under 
the program are measuring the performance of the activi-
ties being conducted and the results of the measurements; 
and 
(B) the overall management and effectiveness of the 
program. 
(2) REPORT.—Not later than September 30, 2012, the 
Inspector General of the Administration shall submit to the 
Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House 
of Representatives a report regarding the review conducted 
under paragraph (1). 
(i) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to carry out the program $30,000,000 for each 
of fiscal years 2011, 2012, and 2013. 
(j) TERMINATION.—The authority to carry out the program shall 
terminate 3 years after the date on which the Associate Adminis-
trator establishes the program. 
SEC. 1208. RURAL EXPORT PROMOTION. 
Not later than 6 months after the date of enactment of this 
Act, the Administrator, in consultation with the Secretary of Agri-
culture and the Secretary of Commerce, shall submit to the Com-
mittee on Small Business and Entrepreneurship of the Senate and 
the Committee on Small Business of the House of Representatives 
a report that contains— 
(1) a description of each program of the Administration 
that promotes exports by rural small business concerns, 
including— 
(A) the number of rural small business concerns served 
by the program; 
(B) the change, if any, in the number of rural small 
business concerns as a result of participation in the pro-
gram during the 10-year period ending on the date of 
enactment of this Act; 
(C) the volume of exports by rural small business con-
cerns that participate in the program; and 
(D) the change, if any, in the volume of exports by 
rural small businesses that participate in the program 
during the 10-year period ending on the date of enactment 
of this Act; 
(2) a description of the coordination between programs 
of the Administration and other Federal programs that promote 
exports by rural small business concerns; 
(3) recommendations, if any, for improving the coordination 
described in paragraph (2); 
(4) a description of any plan by the Administration to 
market the international trade financing programs of the 
Administration through lenders that— 
Deadline. 
Reports. 
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124 STAT. 2536 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(A) serve rural small business concerns; and 
(B) are associated with financing programs of the 
Department of Agriculture; 
(5) recommendations, if any, for improving coordination 
between the counseling programs and export financing pro-
grams of the Administration, in order to increase the volume 
of exports by rural small business concerns; and 
(6) any additional information the Administrator deter-
mines is necessary. 
SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS 
DEVELOPMENT CENTERS. 
Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) 
is amended— 
(1) by striking ‘‘(2) The Small Business Development Cen-
ters’’ and inserting the following: 
‘‘(2) COOPERATION TO PROVIDE INTERNATIONAL TRADE SERV-
ICES.— 
‘‘(A) INFORMATION AND SERVICES.—The small business 
development centers’’; and 
(2) in paragraph (2)— 
(A) in subparagraph (A), as so designated, by inserting 
‘‘(including State trade agencies),’’ after ‘‘local agencies’’; 
and 
(B) by adding at the end the following: 
‘‘(B) COOPERATION WITH STATE TRADE AGENCIES AND 
EXPORT ASSISTANCE CENTERS.—A small business develop-
ment center that counsels a small business concern on 
issues relating to international trade shall— 
‘‘(i) consult with State trade agencies and Export 
Assistance Centers to provide appropriate services to 
the small business concern; and 
‘‘(ii) as necessary, refer the small business concern 
to a State trade agency or an Export Assistance Center 
for further counseling or assistance. 
‘‘(C) DEFINITION.—In this paragraph, the term ‘Export 
Assistance Center’ has the same meaning as in section 
22.’’. 
Subtitle C—Small Business Contracting 
PART I—CONTRACT BUNDLING 
SEC. 1311. SMALL BUSINESS ACT. 
Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by section 1202, is amended by adding at the end the following: 
‘‘(v) MULTIPLE AWARD CONTRACT.—In this Act, the term ‘mul-
tiple award contract’ means— 
‘‘(1) a multiple award task order contract or delivery order 
contract that is entered into under the authority of sections 
303H through 303K of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253h through 253k); and 
‘‘(2) any other indefinite delivery, indefinite quantity con-
tract that is entered into by the head of a Federal agency 
with 2 or more sources pursuant to the same solicitation.’’. 
Definition. 
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124 STAT. 2537 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 1312. LEADERSHIP AND OVERSIGHT. 
(a) IN GENERAL.—Section 15 of the Small Business Act (15 
U.S.C. 644) is amended by adding at the end the following: 
‘‘(q) BUNDLING ACCOUNTABILITY MEASURES.— 
‘‘(1) TEAMING REQUIREMENTS.—Each Federal agency shall 
include in each solicitation for any multiple award contract 
above the substantial bundling threshold of the Federal agency 
a provision soliciting bids from any responsible source, including 
responsible small business concerns and teams or joint ventures 
of small business concerns. 
‘‘(2) POLICIES
ON
REDUCTION
OF
CONTRACT
BUNDLING.— 
‘‘(A) IN
GENERAL.—Not later than 1 year after the 
date of enactment of this subsection, the Federal Acquisi-
tion Regulatory Council established under section 25(a) 
of the Office of Federal Procurement Policy Act (41 U.S.C. 
4219(a)) shall amend the Federal Acquisition Regulation 
issued under section 25 of such Act to— 
‘‘(i) establish a Government-wide policy regarding 
contract bundling, including regarding the solicitation 
of teaming and joint ventures under paragraph (1); 
and 
‘‘(ii) require that the policy established under 
clause (i) be published on the website of each Federal 
agency. 
‘‘(B) RATIONALE FOR CONTRACT BUNDLING.—Not later 
than 30 days after the date on which the head of a Federal 
agency submits data certifications to the Administrator 
for Federal Procurement Policy, the head of the Federal 
agency shall publish on the website of the Federal agency 
a list and rationale for any bundled contract for which 
the Federal agency solicited bids or that was awarded 
by the Federal agency. 
‘‘(3) REPORTING.—Not later than 90 days after the date 
of enactment of this subsection, and every 3 years thereafter, 
the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Com-
mittee on Small Business of the House of Representatives a 
report regarding procurement center representatives and 
commercial market representatives, which shall— 
‘‘(A) identify each area for which the Administration 
has assigned a procurement center representative or a 
commercial market representative; 
‘‘(B) explain why the Administration selected the areas 
identified under subparagraph (A); and 
‘‘(C) describe the activities performed by procurement 
center representatives and commercial market representa-
tives.’’. 
(b) TECHNICAL CORRECTION.—Section 15(g) of the Small Busi-
ness Act (15 U.S.C. 644(g)) is amended by striking ‘‘Administrator 
of the Office of Federal Procurement Policy’’ each place it appears 
and inserting ‘‘Administrator for Federal Procurement Policy’’. 
(c) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after the date 
of enactment of this Act, the Comptroller General of the United 
States shall submit to Congress a report regarding the procure-
ment center representative program of the Administration. 
Deadlines. 
Web postings. 
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124 STAT. 2538 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(2) CONTENTS.—The report submitted under paragraph (1) 
shall— 
(A) address ways to improve the effectiveness of the 
procurement center representative program in helping 
small business concerns obtain Federal contracts; 
(B) evaluate the effectiveness of procurement center 
representatives and commercial marketing representatives; 
and 
(C) include recommendations, if any, on how to improve 
the procurement center representative program. 
(d) ELECTRONIC PROCUREMENT CENTER REPRESENTATIVE.— 
(1) IN
GENERAL.—Not later than 1 year after the date 
of enactment of this Act, the Administrator shall implement 
a 3-year pilot electronic procurement center representative pro-
gram. 
(2) REPORT.—Not later than 30 days after the pilot program 
under paragraph (1) ends, the Comptroller General of the 
United States shall submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee on 
Small Business of the House of Representatives a report 
regarding the pilot program. 
SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS. 
(a) IN GENERAL.—The Small Business Act (15 U.S.C. 631 et 
seq.) is amended— 
(1) by redesignating section 44 as section 45; and 
(2) by inserting after section 43 the following: 
‘‘SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS. 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘Chief Acquisition Officer’ means the employee 
of a Federal agency designated as the Chief Acquisition Officer 
for the Federal agency under section 16(a) of the Office of 
Federal Procurement Policy Act (41 U.S.C. 414(a)); 
‘‘(2) the term ‘consolidation of contract requirements’, with 
respect to contract requirements of a Federal agency, means 
a use of a solicitation to obtain offers for a single contract 
or a multiple award contract to satisfy 2 or more requirements 
of the Federal agency for goods or services that have been 
provided to or performed for the Federal agency under 2 or 
more separate contracts lower in cost than the total cost of 
the contract for which the offers are solicited; and 
‘‘(3) the term ‘senior procurement executive’ means an offi-
cial designated under section 16(c) of the Office of Federal 
Procurement Policy Act (41 U.S.C. 414(c)) as the senior procure-
ment executive for a Federal agency. 
‘‘(b) POLICY.—The head of each Federal agency shall ensure 
that the decisions made by the Federal agency regarding consolida-
tion of contract requirements of the Federal agency are made with 
a view to providing small business concerns with appropriate 
opportunities to participate as prime contractors and subcontractors 
in the procurements of the Federal agency. 
‘‘(c) LIMITATION ON USE OF ACQUISITION STRATEGIES INVOLVING 
CONSOLIDATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (4), the head of 
a Federal agency may not carry out an acquisition strategy 
that includes a consolidation of contract requirements of the 
Federal agency with a total value of more than $2,000,000, 
15 USC 657q. 
15 USC 631 note. 
Deadline. 
15 USC 644 note. 
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124 STAT. 2539 
PUBLIC LAW 111–240—SEPT. 27, 2010 
unless the senior procurement executive or Chief Acquisition 
Officer for the Federal agency, before carrying out the acquisi-
tion strategy— 
‘‘(A) conducts market research; 
‘‘(B) identifies any alternative contracting approaches 
that would involve a lesser degree of consolidation of con-
tract requirements; 
‘‘(C) makes a written determination that the consolida-
tion of contract requirements is necessary and justified; 
‘‘(D) identifies any negative impact by the acquisition 
strategy on contracting with small business concerns; and 
‘‘(E) certifies to the head of the Federal agency that 
steps will be taken to include small business concerns 
in the acquisition strategy. 
‘‘(2) DETERMINATION
THAT
CONSOLIDATION
IS
NECESSARY 
AND JUSTIFIED.— 
‘‘(A) IN GENERAL.—A senior procurement executive or 
Chief Acquisition Officer may determine that an acquisition 
strategy involving a consolidation of contract requirements 
is necessary and justified for the purposes of paragraph 
(1)(C) if the benefits of the acquisition strategy substan-
tially exceed the benefits of each of the possible alternative 
contracting approaches identified under paragraph (1)(B). 
‘‘(B) SAVINGS
IN
ADMINISTRATIVE
OR
PERSONNEL 
COSTS.—For purposes of subparagraph (A), savings in 
administrative or personnel costs alone do not constitute 
a sufficient justification for a consolidation of contract 
requirements in a procurement unless the expected total 
amount of the cost savings, as determined by the senior 
procurement executive or Chief Acquisition Officer, is 
expected to be substantial in relation to the total cost 
of the procurement. 
‘‘(3) BENEFITS TO BE CONSIDERED.—The benefits considered 
for the purposes of paragraphs (1) and (2) may include cost 
and, regardless of whether quantifiable in dollar amounts— 
‘‘(A) quality; 
‘‘(B) acquisition cycle; 
‘‘(C) terms and conditions; and 
‘‘(D) any other benefit. 
‘‘(4) DEPARTMENT OF DEFENSE.— 
‘‘(A) IN
GENERAL.—The Department of Defense and 
each military department shall comply with this section 
until after the date described in subparagraph (C). 
‘‘(B) RULE.—After the date described in subparagraph 
(C), contracting by the Department of Defense or a military 
department shall be conducted in accordance with section 
2382 of title 10, United States Code. 
‘‘(C) DATE.—The date described in this subparagraph 
is the date on which the Administrator determines the 
Department of Defense or a military department is in 
compliance with the Government-wide contracting goals 
under section 15.’’. 
(b) 
TECHNICAL
AND
CONFORMING
AMENDMENT.—Section 
2382(b)(1) of title 10, United States Code, is amended by striking 
‘‘An official’’ and inserting ‘‘Subject to section 44(c)(4), an official’’. 
Compliance. 
Certification. 
Determination. 
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124 STAT. 2540 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘Pilot Program’’ means the Small Business 
Teaming Pilot Program established under subsection (b); and 
(2) the term ‘‘eligible organization’’ means a well-estab-
lished national organization for small business concerns with 
the capacity to provide assistance to small business concerns 
(which may be provided with the assistance of the Adminis-
trator) relating to— 
(A) customer relations and outreach; 
(B) team relations and outreach; and 
(C) performance measurement and quality assurance. 
(b) ESTABLISHMENT.—The Administrator shall establish a Small 
Business Teaming Pilot Program for teaming and joint ventures 
involving small business concerns. 
(c) GRANTS.—Under the Pilot Program, the Administrator may 
make grants to eligible organizations to provide assistance and 
guidance to teams of small business concerns seeking to compete 
for larger procurement contracts. 
(d) CONTRACTING OPPORTUNITIES.—The Administrator shall 
work with eligible organizations receiving a grant under the Pilot 
Program to recommend appropriate contracting opportunities for 
teams or joint ventures of small business concerns. 
(e) REPORT.—Not later than 1 year before the date on which 
the authority to carry out the Pilot Program terminates under 
subsection (f), the Administrator shall submit to the Committee 
on Small Business and Entrepreneurship of the Senate and the 
Committee on Small Business of the House of Representatives 
a report on the effectiveness of the Pilot Program. 
(f) TERMINATION.—The authority to carry out the Pilot Program 
shall terminate 5 years after the date of enactment of this Act. 
(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated for grants under subsection (c) $5,000,000 for 
each of fiscal years 2010 through 2015. 
PART II—SUBCONTRACTING INTEGRITY 
SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS. 
Not later than 1 year after the date of enactment of this 
Act, the Administrator, in consultation with the Administrator for 
Federal Procurement Policy, shall promulgate regulations relating 
to, and the Federal Acquisition Regulatory Council established 
under section 25(a) of the Office of Federal Procurement Policy 
Act (41 U.S.C. 421(a)) shall amend the Federal Acquisition Regula-
tion issued under section 25 of such Act to establish a policy 
on, subcontracting compliance relating to small business concerns, 
including assignment of compliance responsibilities between con-
tracting offices, small business offices, and program offices and 
periodic oversight and review activities. 
SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS. 
Section 8(d)(6) of the Small Business Act (15 U.S.C. 637(d)(6)) 
is amended— 
(1) in subparagraph (E), by striking ‘‘and’’ at the end; 
(2) in subparagraph (F), by striking the period at the end 
and inserting ‘‘; and’’; and 
(3) by adding at the end, the following: 
Deadline. 
Regulations. 
15 USC 637 note. 
15 USC 644 note. 
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124 STAT. 2541 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(G) a representation that the offeror or bidder will— 
‘‘(i) make a good faith effort to acquire articles, 
equipment, supplies, services, or materials, or obtain 
the performance of construction work from the small 
business concerns used in preparing and submitting 
to the contracting agency the bid or proposal, in the 
same amount and quality used in preparing and 
submitting the bid or proposal; and 
‘‘(ii) provide to the contracting officer a written 
explanation if the offeror or bidder fails to acquire 
articles, equipment, supplies, services, or materials or 
obtain the performance of construction work as 
described in clause (i).’’. 
PART III—ACQUISITION PROCESS 
SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
BUSINESSES. 
Section 15 of the Small Business Act (15 U.S.C. 644), as 
amended by this Act, is amended by adding at the end the following: 
‘‘(r) MULTIPLE AWARD CONTRACTS.—Not later than 1 year after 
the date of enactment of this subsection, the Administrator for 
Federal Procurement Policy and the Administrator, in consultation 
with the Administrator of General Services, shall, by regulation, 
establish guidance under which Federal agencies may, at their 
discretion— 
‘‘(1) set aside part or parts of a multiple award contract 
for small business concerns, including the subcategories of small 
business concerns identified in subsection (g)(2); 
‘‘(2) notwithstanding the fair opportunity requirements 
under section 2304c(b) of title 10, United States Code, and 
section 303J(b) of the Federal Property and Administrative 
Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders placed 
against multiple award contracts for small business concerns, 
including the subcategories of small business concerns identi-
fied in subsection (g)(2); and 
‘‘(3) reserve 1 or more contract awards for small business 
concerns under full and open multiple award procurements, 
including the subcategories of small business concerns identi-
fied in subsection (g)(2).’’. 
SEC. 1332. MICRO-PURCHASE GUIDELINES. 
Not later than 1 year after the date of enactment of this 
Act, the Director of the Office of Management and Budget, in 
coordination with the Administrator of General Services, shall issue 
guidelines regarding the analysis of purchase card expenditures 
to identify opportunities for achieving and accurately measuring 
fair participation of small business concerns in purchases in an 
amount not in excess of the micro-purchase threshold, as defined 
in section 32 of the Office of Federal Procurement Policy Act (41 
U.S.C. 428) (in this section referred to as ‘‘micro-purchases’’), con-
sistent with the national policy on small business participation 
in Federal procurements set forth in sections 2(a) and 15(g) of 
the Small Business Act (15 U.S.C. 631(a) and 644(g)), and dissemi-
nation of best practices for participation of small business concerns 
in micro-purchases. 
Deadline. 
41 USC 428 note. 
Deadline. 
Regulations. 
Guidance. 
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124 STAT. 2542 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 1333. AGENCY ACCOUNTABILITY. 
Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) 
is amended— 
(1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 
(2) by striking ‘‘Goals established’’ and inserting the fol-
lowing: 
‘‘(B) Goals established’’; 
(3) by striking ‘‘Whenever’’ and inserting the following: 
‘‘(C) Whenever’’; 
(4) by striking ‘‘For the purpose of’’ and inserting the fol-
lowing: 
‘‘(D) For the purpose of’’; 
(5) by striking ‘‘The head of each Federal agency, in 
attempting to attain such participation’’ and inserting the fol-
lowing: 
‘‘(E) The head of each Federal agency, in attempting to attain 
the participation described in subparagraph (D)’’. 
(6) in subparagraph (E), as so designated— 
(A) by striking ‘‘(A) contracts’’ and inserting ‘‘(i) con-
tracts’’; and 
(B) by striking ‘‘(B) contracts’’ and inserting ‘‘(ii) con-
tracts’’; and 
(7) by adding at the end the following: 
‘‘(F)(i) Each procurement employee or program manager 
described in clause (ii) shall communicate to the subordinates of 
the procurement employee or program manager the importance 
of achieving small business goals. 
‘‘(ii) A procurement employee or program manager described 
in this clause is a senior procurement executive, senior program 
manager, or Director of Small and Disadvantaged Business Utiliza-
tion of a Federal agency having contracting authority.’’. 
SEC. 1334. PAYMENT OF SUBCONTRACTORS. 
Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is 
amended by adding at the end the following: 
‘‘(12) PAYMENT OF SUBCONTRACTORS.— 
‘‘(A) DEFINITION.—In this paragraph, the term ‘covered con-
tract’ means a contract relating to which a prime contractor 
is required to develop a subcontracting plan under paragraph 
(4) or (5). 
‘‘(B) NOTICE.— 
‘‘(i) IN
GENERAL.—A prime contractor for a covered 
contract shall notify in writing the contracting officer for 
the covered contract if the prime contractor pays a reduced 
price to a subcontractor for goods and services upon comple-
tion of the responsibilities of the subcontractor or the pay-
ment to a subcontractor is more than 90 days past due 
for goods or services provided for the covered contract 
for which the Federal agency has paid the prime contractor. 
‘‘(ii) CONTENTS.—A prime contractor shall include the 
reason for the reduction in a payment to or failure to 
pay a subcontractor in any notice made under clause (i). 
‘‘(C) PERFORMANCE.—A contracting officer for a covered 
contract shall consider the unjustified failure by a prime con-
tractor to make a full or timely payment to a subcontractor 
in evaluating the performance of the prime contractor. 
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124 STAT. 2543 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(D) CONTROL OF FUNDS.—If the contracting officer for a 
covered contract determines that a prime contractor has a 
history of unjustified, untimely payments to contractors, the 
contracting officer shall record the identity of the contractor 
in accordance with the regulations promulgated under subpara-
graph (E). 
‘‘(E) REGULATIONS.—Not later than 1 year after the date 
of enactment of this paragraph, the Federal Acquisition Regu-
latory Council established under section 25(a) of the Office 
of Federal Procurement Policy Act (41 U.S.C. 421(a)) shall 
amend the Federal Acquisition Regulation issued under section 
25 of such Act to— 
‘‘(i) describe the circumstances under which a con-
tractor may be determined to have a history of unjustified, 
untimely payments to subcontractors; 
‘‘(ii) establish a process for contracting officers to record 
the identity of a contractor described in clause (i); and 
‘‘(iii) require the identity of a contractor described in 
clause (i) to be incorporated in, and made publicly available 
through, the Federal Awardee Performance and Integrity 
Information System, or any successor thereto.’’. 
SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS DEM-
ONSTRATION PROGRAM. 
(a) IN
GENERAL.—The Business Opportunity Development 
Reform Act of 1988 (Public Law 100–656) is amended by striking 
title VII (15 U.S.C. 644 note). 
(b) EFFECTIVE
DATE
AND
APPLICABILITY.—The amendment 
made by this section— 
(1) shall take effect on the date of enactment of this Act; 
and 
(2) apply to the first full fiscal year after the date of 
enactment of this Act. 
PART IV—SMALL BUSINESS SIZE AND STATUS 
INTEGRITY 
SEC. 1341. POLICY AND PRESUMPTIONS. 
Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by section 1311, is amended by adding at the end the following: 
‘‘(w) PRESUMPTION.— 
‘‘(1) IN GENERAL.—In every contract, subcontract, coopera-
tive agreement, cooperative research and development agree-
ment, or grant which is set aside, reserved, or otherwise classi-
fied as intended for award to small business concerns, there 
shall be a presumption of loss to the United States based 
on the total amount expended on the contract, subcontract, 
cooperative agreement, cooperative research and development 
agreement, or grant whenever it is established that a business 
concern other than a small business concern willfully sought 
and received the award by misrepresentation. 
‘‘(2) DEEMED CERTIFICATIONS.—The following actions shall 
be deemed affirmative, willful, and intentional certifications 
of small business size and status: 
‘‘(A) Submission of a bid or proposal for a Federal 
grant, contract, subcontract, cooperative agreement, or 
cooperative research and development agreement reserved, 
15 USC 644 note. 
Public 
information. 
Records. 
Deadline. 
Records. 
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124 STAT. 2544 
PUBLIC LAW 111–240—SEPT. 27, 2010 
set aside, or otherwise classified as intended for award 
to small business concerns. 
‘‘(B) Submission of a bid or proposal for a Federal 
grant, contract, subcontract, cooperative agreement, or 
cooperative research and development agreement which 
in any way encourages a Federal agency to classify the 
bid or proposal, if awarded, as an award to a small business 
concern. 
‘‘(C) Registration on any Federal electronic database 
for the purpose of being considered for award of a Federal 
grant, contract, subcontract, cooperative agreement, or 
cooperative research agreement, as a small business con-
cern. 
‘‘(3) CERTIFICATION BY SIGNATURE OF RESPONSIBLE OFFI-
CIAL.— 
‘‘(A) IN GENERAL.—Each solicitation, bid, or application 
for a Federal contract, subcontract, or grant shall contain 
a certification concerning the small business size and status 
of a business concern seeking the Federal contract, sub-
contract, or grant. 
‘‘(B) CONTENT OF CERTIFICATIONS.—A certification that 
a business concern qualifies as a small business concern 
of the exact size and status claimed by the business concern 
for purposes of bidding on a Federal contract or sub-
contract, or applying for a Federal grant, shall contain 
the signature of an authorized official on the same page 
on which the certification is contained. 
‘‘(4) REGULATIONS.—The Administrator shall promulgate 
regulations to provide adequate protections to individuals and 
business concerns from liability under this subsection in cases 
of unintentional errors, technical malfunctions, and other 
similar situations.’’. 
SEC. 1342. ANNUAL CERTIFICATION. 
Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by section 1341, is amended by adding at the end the following: 
‘‘(x) ANNUAL CERTIFICATION.— 
‘‘(1) IN GENERAL.—Each business certified as a small busi-
ness concern under this Act shall annually certify its small 
business size and, if appropriate, its small business status, 
by means of a confirming entry on the Online Representations 
and Certifications Application database of the Administration, 
or any successor thereto. 
‘‘(2) REGULATIONS.—Not later than 1 year after the date 
of enactment of this subsection, the Administrator, in consulta-
tion with the Inspector General and the Chief Counsel for 
Advocacy of the Administration, shall promulgate regulations 
to ensure that— 
‘‘(A) no business concern continues to be certified as 
a small business concern on the Online Representations 
and Certifications Application database of the Administra-
tion, or any successor thereto, without fulfilling the require-
ments for annual certification under this subsection; and 
‘‘(B) the requirements of this subsection are imple-
mented in a manner presenting the least possible regu-
latory burden on small business concerns.’’. 
Deadline. 
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124 STAT. 2545 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT PER-
SONNEL. 
(a) IN GENERAL.—Not later than 1 year after the date of enact-
ment of this Act, the Federal Acquisition Institute, in consultation 
with the Administrator for Federal Procurement Policy, the Defense 
Acquisition University, and the Administrator, shall develop courses 
for acquisition personnel concerning proper classification of business 
concerns and small business size and status for purposes of Federal 
contracts, subcontracts, grants, cooperative agreements, and 
cooperative research and development agreements. 
(b) POLICY ON PROSECUTIONS OF SMALL BUSINESS SIZE AND 
STATUS FRAUD.—Section 3 of the Small Business Act (15 U.S.C. 
632), as amended by section 1342, is amended by adding at the 
end the following: 
‘‘(y) POLICY ON PROSECUTIONS OF SMALL BUSINESS SIZE AND 
STATUS FRAUD.—Not later than 1 year after the date of enactment 
of this subsection, the Administrator, in consultation with the 
Attorney General, shall issue a Government-wide policy on prosecu-
tion of small business size and status fraud, which shall direct 
Federal agencies to appropriately publicize the policy.’’. 
SEC. 1344. UPDATED SIZE STANDARDS. 
(a) ROLLING REVIEW.— 
(1) IN GENERAL.—The Administrator shall— 
(A) during the 18-month period beginning on the date 
of enactment of this Act, and during every 18-month period 
thereafter, conduct a detailed review of not less than 1⁄3 
of the size standards for small business concerns estab-
lished under section 3(a)(2) of the Small Business Act (15 
U.S.C. 632(a)(2)), which shall include holding not less than 
2 public forums located in different geographic regions 
of the United States; 
(B) after completing each review under subparagraph 
(A) make appropriate adjustments to the size standards 
established under section 3(a)(2) of the Small Business 
Act to reflect market conditions; 
(C) make publicly available— 
(i) information regarding the factors evaluated as 
part of each review conducted under subparagraph 
(A); and 
(ii) information regarding the criteria used for any 
revised size standards promulgated under subpara-
graph (B); and 
(D) not later than 30 days after the date on which 
the Administrator completes each review under subpara-
graph (A), submit to the Committee on Small Business 
and Entrepreneurship of the Senate and the Committee 
on Small Business of the House of Representatives and 
make publicly available a report regarding the review, 
including why the Administrator— 
(i) used the factors and criteria described in 
subparagraph (C); and 
(ii) adjusted or did not adjust each size standard 
that was reviewed under the review. 
(2) COMPLETE REVIEW OF SIZE STANDARDS.—The Adminis-
trator shall ensure that each size standard for small business 
concerns established under section 3(a)(2) of the Small Business 
Deadlines. 
Deadline. 
Public 
information. 
Public 
information. 
Time period. 
15 USC 1632 
note. 
Deadline. 
Deadline. 
41 USC 433 note. 
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124 STAT. 2546 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Act (15 U.S.C. 632(a)(2)) is reviewed under paragraph (1) not 
less frequently than once every 5 years. 
(b) RULES.—Not later than 1 year after the date of enactment 
of this Act, the Administrator shall promulgate rules for conducting 
the reviews required under subsection (a). 
SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM. 
(a) IN GENERAL.—The Comptroller General of the United States 
shall conduct a study of the mentor-protege program of the Adminis-
tration for small business concerns participating in programs under 
section 8(a) of the Small Business Act (15 U.S.C. 637(a)), and 
other relationships and strategic alliances pairing a larger business 
and a small business concern partner to gain access to Federal 
Government contracts, to determine whether the programs and 
relationships are effectively supporting the goal of increasing the 
participation of small business concerns in Government contracting. 
(b) MATTERS TO BE STUDIED.—The study conducted under this 
section shall include— 
(1) a review of a broad cross-section of industries; and 
(2) an evaluation of— 
(A) how each Federal agency carrying out a program 
described in subsection (a) administers and monitors the 
program; 
(B) whether there are systems in place to ensure that 
the mentor-protege relationship, or similar affiliation, pro-
motes real gain to the protege, and is not just a mechanism 
to enable participants that would not otherwise qualify 
under section 8(a) of the Small Business Act (15 U.S.C. 
637(a)) to receive contracts under that section; and 
(C) the degree to which protege businesses become 
able to compete for Federal contracts without the assistance 
of a mentor. 
(c) REPORT TO CONGRESS.—Not later than 180 days after the 
date of enactment of this Act, the Comptroller General shall submit 
to the Committee on Small Business and Entrepreneurship of the 
Senate and the Committee on Small Business of the House of 
Representatives a report on the results of the study conducted 
under this section. 
SEC. 1346. CONTRACTING GOALS REPORTS. 
Section 15(h)(2) of the Small Business Act (15 U.S.C. 644(h)(2)) 
is amended by striking ‘‘submit them’’ and all that follows through 
‘‘the following:’’ and inserting ‘‘submit to the President and the 
Committee on Small Business and Entrepreneurship of the Senate 
and the Committee on Small Business of the House of Representa-
tives the compilation and analysis, which shall include the fol-
lowing:’’. 
SEC. 1347. SMALL BUSINESS CONTRACTING PARITY. 
(a) DEFINITIONS.—In this section— 
(1) the terms ‘‘Administration’’ and ‘‘Administrator’’ mean 
the Small Business Administration and the Administrator 
thereof, respectively; and 
(2) the terms ‘‘HUBZone small business concern’’, ‘‘small 
business concern’’, ‘‘small business concern owned and con-
trolled by service-disabled veterans’’, and ‘‘small business con-
cern owned and controlled by women’’ have the same meanings 
as in section 3 of the Small Business Act (15 U.S.C. 632). 
15 USC 637 note. 
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124 STAT. 2547 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(b) CONTRACTING IMPROVEMENTS.— 
(1) CONTRACTING
OPPORTUNITIES.—Section 31(b)(2)(B) of 
the Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended 
by striking ‘‘shall’’ and inserting ‘‘may’’. 
(2) CONTRACTING
GOALS.—Section 15(g)(1) of the Small 
Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth 
sentence by inserting ‘‘and subcontract’’ after ‘‘not less than 
3 percent of the total value of all prime contract’’. 
(3) MENTOR-PROTEGE PROGRAMS.—The Administrator may 
establish mentor-protege programs for small business concerns 
owned and controlled by service-disabled veterans, small busi-
ness concerns owned and controlled by women, and HUBZone 
small business concerns modeled on the mentor-protege pro-
gram of the Administration for small business concerns partici-
pating in programs under section 8(a) of the Small Business 
Act (15 U.S.C. 637(a)). 
(c) SMALL BUSINESS CONTRACTING PROGRAMS PARITY.—Section 
31(b)(2) of the Small Business Act (15 U.S.C. 657a(b)(2)) is 
amended— 
(1) in the matter preceding subparagraph (A), by striking 
‘‘Notwithstanding any other provision of law—’’; 
(2) in subparagraph (A)— 
(A) in the matter preceding clause (i), by striking ‘‘a 
contracting’’ and inserting ‘‘SOLE SOURCE CONTRACTS.—A 
contracting’’; and 
(B) in clause (iii), by striking the semicolon at the 
end and inserting a period; 
(3) in subparagraph (B)— 
(A) by striking ‘‘a contract opportunity shall’’ and 
inserting ‘‘RESTRICTED
COMPETITION.—A contract oppor-
tunity may’’; and 
(B) by striking ‘‘; and’’ and inserting a period; and 
(4) in subparagraph (C), by striking ‘‘not later’’ and 
inserting ‘‘APPEALS.—Not later’’. 
Subtitle D—Small Business Management 
and Counseling Assistance 
SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS PRO-
GRAMS. 
(a) MICROLOAN PROGRAM.—Section 7(m) of the Small Business 
Act (15 U.S.C. 636(m)) is amended— 
(1) in paragraph (3)(B)— 
(A) by striking ‘‘As a condition’’ and inserting the fol-
lowing: 
‘‘(i) IN GENERAL.—Subject to clause (ii), as a condi-
tion’’; 
(B) by striking ‘‘the Administration’’ and inserting ‘‘the 
Administrator’’; and 
(C) by adding at the end the following: 
‘‘(ii) WAIVER OF NON-FEDERAL SHARE.— 
‘‘(I) IN GENERAL.—Upon request by an inter-
mediary, and in accordance with this clause, the 
Administrator may waive, in whole or in part, 
the requirement to obtain non-Federal funds under 
clause (i) for a fiscal year. The Administrator may 
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124 STAT. 2548 
PUBLIC LAW 111–240—SEPT. 27, 2010 
waive the requirement to obtain non-Federal funds 
under this clause for successive fiscal years. 
‘‘(II) 
CONSIDERATIONS.—In 
determining 
whether to waive the requirement to obtain non- 
Federal funds under this clause, the Administrator 
shall consider— 
‘‘(aa) the economic conditions affecting the 
intermediary; 
‘‘(bb) the impact a waiver under this 
clause would have on the credibility of the 
microloan program under this subsection; 
‘‘(cc) the demonstrated ability of the inter-
mediary to raise non-Federal funds; and 
‘‘(dd) the performance of the intermediary. 
‘‘(III) LIMITATIONS.— 
‘‘(aa) IN
GENERAL.—The Administrator 
may not waive the requirement to obtain non- 
Federal funds under this clause if granting 
the waiver would undermine the credibility 
of the microloan program under this sub-
section. 
‘‘(bb) SUNSET.—The Administrator may 
not waive the requirement to obtain non-Fed-
eral funds under this clause for fiscal year 
2013 or any fiscal year thereafter.’’; and 
(2) in paragraph (4)(B)— 
(A) by striking ‘‘As a condition’’ and all that follows 
through ‘‘the Administration shall require’’ and inserting 
the following: 
‘‘(i) IN GENERAL.—Subject to clause (ii), as a condi-
tion of a grant made under subparagraph (A), the 
Administrator shall require’’; and 
(B) by adding at the end the following: 
‘‘(ii) WAIVER OF NON-FEDERAL SHARE.— 
‘‘(I) IN GENERAL.—Upon request by an inter-
mediary, and in accordance with this clause, the 
Administrator may waive, in whole or in part, 
the requirement to obtain non-Federal funds under 
clause (i) for a fiscal year. The Administrator may 
waive the requirement to obtain non-Federal funds 
under this clause for successive fiscal years. 
‘‘(II) 
CONSIDERATIONS.—In 
determining 
whether to waive the requirement to obtain non- 
Federal funds under this clause, the Administrator 
shall consider— 
‘‘(aa) the economic conditions affecting the 
intermediary; 
‘‘(bb) the impact a waiver under this 
clause would have on the credibility of the 
microloan program under this subsection; 
‘‘(cc) the demonstrated ability of the inter-
mediary to raise non-Federal funds; and 
‘‘(dd) the performance of the intermediary. 
‘‘(III) LIMITATIONS.— 
‘‘(aa) IN
GENERAL.—The Administrator 
may not waive the requirement to obtain non- 
Federal funds under this clause if granting 
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124 STAT. 2549 
PUBLIC LAW 111–240—SEPT. 27, 2010 
the waiver would undermine the credibility 
of the microloan program under this sub-
section. 
‘‘(bb) SUNSET.—The Administrator may 
not waive the requirement to obtain non-Fed-
eral funds under this clause for fiscal year 
2013 or any fiscal year thereafter.’’. 
(b) WOMEN’S BUSINESS CENTER PROGRAM.—Section 29(c) of the 
Small Business Act (15 U.S.C. 656(c)) is amended— 
(1) in paragraph (1), by striking ‘‘As a condition’’ and 
inserting ‘‘Subject to paragraph (5), as a condition’’; and 
(2) by adding at the end the following: 
‘‘(5) WAIVER OF NON-FEDERAL SHARE RELATING TO TECH-
NICAL ASSISTANCE AND COUNSELING.— 
‘‘(A) IN
GENERAL.—Upon request by a recipient 
organization, and in accordance with this paragraph, the 
Administrator may waive, in whole or in part, the require-
ment to obtain non-Federal funds under this subsection 
for the technical assistance and counseling activities of 
the recipient organization carried out using financial assist-
ance under this section for a fiscal year. The Administrator 
may waive the requirement to obtain non-Federal funds 
under this paragraph for successive fiscal years. 
‘‘(B) CONSIDERATIONS.—In determining whether to 
waive the requirement to obtain non-Federal funds under 
this paragraph, the Administrator shall consider— 
‘‘(i) the economic conditions affecting the recipient 
organization; 
‘‘(ii) the impact a waiver under this clause would 
have on the credibility of the women’s business center 
program under this section; 
‘‘(iii) the demonstrated ability of the recipient 
organization to raise non-Federal funds; and 
‘‘(iv) the performance of the recipient organization. 
‘‘(C) LIMITATIONS.— 
‘‘(i) IN
GENERAL.—The Administrator may not 
waive the requirement to obtain non-Federal funds 
under this paragraph if granting the waiver would 
undermine the credibility of the women’s business 
center program under this section. 
‘‘(ii) SUNSET.—The Administrator may not waive 
the requirement to obtain non-Federal funds under 
this paragraph for fiscal year 2013 or any fiscal year 
thereafter.’’. 
(c) PROSPECTIVE REPEALS.—Effective October 1, 2012, the Small 
Business Act (15 U.S.C. 631 et seq.) is amended— 
(1) in section 7(m) (15 U.S.C. 636(m))— 
(A) in paragraph (3)(B)— 
(i) by striking ‘‘INTERMEDIARY
CONTRIBUTION.—’’ 
and all that follows through ‘‘Subject to clause (ii), 
as’’ and inserting ‘‘INTERMEDIARY CONTRIBUTION.—As’’; 
and 
(ii) by striking clause (ii); and 
(B) in paragraph (4)(B)— 
(i) by striking ‘‘CONTRIBUTION.—’’ and all that fol-
lows through ‘‘Subject to clause (ii), as’’ and inserting 
‘‘CONTRIBUTION.—As’’; and 
Effective date. 
15 USC 636 note. 
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124 STAT. 2550 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(ii) by striking clause (ii); and 
(2) in section 29(c) (15 U.S.C. 656(c))— 
(A) in paragraph (1), by striking ‘‘Subject to paragraph 
(5), as’’ and inserting ‘‘As’’; and 
(B) by striking paragraph (5). 
SEC. 1402. GRANTS FOR SBDCS. 
(a) IN GENERAL.—The Administrator may make grants to small 
business development centers under section 21 of the Small Busi-
ness Act (15 U.S.C. 648) to provide targeted technical assistance 
to small business concerns seeking access to capital or credit, Fed-
eral procurement opportunities, energy efficiency audits to reduce 
energy bills, opportunities to export products or provide services 
to foreign customers, adopting, making innovations in, and using 
broadband technologies, or other assistance. 
(b) ALLOCATION.— 
(1) IN GENERAL.—Subject to paragraph (2), and notwith-
standing the requirements of section 21(a)(4)(C)(iii) of the Small 
Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the amount appro-
priated to carry out this section shall be allocated under the 
formula under section 21(a)(4)(C)(i) of that Act. 
(2) MINIMUM FUNDING.—The amount made available under 
this section to each State shall be not less than $325,000. 
(3) TYPES OF USES.—Of the total amount of the grants 
awarded by the Administrator under this section— 
(A) not less than 80 percent shall be used for counseling 
of small business concerns; and 
(B) not more than 20 percent may be used for classes 
or seminars. 
(c) NO NON-FEDERAL SHARE REQUIRED.—Notwithstanding sec-
tion 21(a)(4)(A) of the Small Business Act (15 U.S.C. 648(a)(4)(A)), 
the recipient of a grant made under this section shall not be 
required to provide non-Federal matching funds. 
(d) DISTRIBUTION.—Not later than 30 days after the date on 
which amounts are appropriated to carry out this section, the 
Administrator shall disburse the total amount appropriated. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized 
to be appropriated to the Administrator $50,000,000 to carry out 
this section. 
Subtitle E—Disaster Loan Improvement 
SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE. 
Section 3 of the Small Business Act (15 U.S.C. 632), as amended 
by section 1343, is amended by adding at the end the following: 
‘‘(z) AQUACULTURE BUSINESS DISASTER ASSISTANCE.—Subject 
to section 18(a) and notwithstanding section 18(b)(1), the Adminis-
trator may provide disaster assistance under section 7(b)(2) to aqua-
culture enterprises that are small businesses.’’. 
Deadline. 
15 USC 648b. 
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124 STAT. 2551 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Subtitle F—Small Business Regulatory 
Relief 
SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANAL-
YSES. 
Section 604(a) of title 5, United States Code, is amended— 
(1) in paragraph (1), by striking ‘‘succinct’’; 
(2) in paragraph (2), by striking ‘‘summary’’ each place 
it appears and inserting ‘‘statement’’; 
(3) by redesignating paragraphs (3), (4), and (5) as para-
graphs (4), (5), and (6), respectively; and 
(4) by inserting after paragraph (2) the following: 
‘‘(3) the response of the agency to any comments filed 
by the Chief Counsel for Advocacy of the Small Business 
Administration in response to the proposed rule, and a detailed 
statement of any change made to the proposed rule in the 
final rule as a result of the comments;’’. 
SEC. 1602. OFFICE OF ADVOCACY. 
(a) IN GENERAL.—Section 203 of Public Law 94–305 (15 U.S.C. 
634c) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the end; 
(2) in paragraph (5), by striking the period and inserting 
‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(6) carry out the responsibilities of the Office of Advocacy 
under chapter 6 of title 5, United States Code.’’. 
(b) BUDGETARY LINE ITEM AND AUTHORIZATION OF APPROPRIA-
TIONS.—Title II of Public Law 94–305 (15 U.S.C. 634a et seq.) 
is amended by striking section 207 and inserting the following: 
‘‘SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF APPRO-
PRIATIONS. 
‘‘(a) APPROPRIATION REQUESTS.—Each budget of the United 
States Government submitted by the President under section 1105 
of title 31, United States Code, shall include a separate statement 
of the amount of appropriations requested for the Office of Advocacy 
of the Small Business Administration, which shall be designated 
in a separate account in the General Fund of the Treasury. 
‘‘(b) ADMINISTRATIVE OPERATIONS.—The Administrator of the 
Small Business Administration shall provide the Office of Advocacy 
with appropriate and adequate office space at central and field 
office locations, together with such equipment, operating budget, 
and communications facilities and services as may be necessary, 
and shall provide necessary maintenance services for such offices 
and the equipment and facilities located in such offices. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 
to be appropriated such sums as are necessary to carry out this 
title. Any amount appropriated under this subsection shall remain 
available, without fiscal year limitation, until expended.’’. 
15 USC 634g. 
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124 STAT. 2552 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Subtitle G—Appropriations Provisions 
SEC. 1701. SALARIES AND EXPENSES. 
(a) APPROPRIATION.—There is appropriated, out of any money 
in the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 2010, $150,000,000, to remain available until 
September 30, 2012, for an additional amount for the appropriations 
account appropriated under the heading ‘‘SALARIES AND EXPENSES’’ 
under the heading ‘‘SMALL BUSINESS ADMINISTRATION’’, of which— 
(1) $50,000,000 is for grants to small business development 
centers authorized under section 1402; 
(2) $1,000,000 is for the costs of administering grants 
authorized under section 1402; 
(3) $30,000,000 is for grants to States for fiscal year 2011 
to carry out export programs that assist small business concerns 
authorized under section 1207; 
(4) $30,000,000 is for grants to States for fiscal year 2012 
to carry out export programs that assist small business concerns 
authorized under section 1207; 
(5) $2,500,000 is for the costs of administering grants 
authorized under section 1207; 
(6) $5,000,000 is for grants for fiscal year 2011 under 
the Small Business Teaming Pilot Program under section 1314; 
and 
(7) $5,000,000 is for grants for fiscal year 2012 under 
the Small Business Teaming Pilot Program under section 1314. 
(b) REPORT.—Not later than 60 days after the date of enactment 
of this Act, the Administrator shall submit to the Committee on 
Appropriations of the Senate and the Committee on Appropriations 
of the House of Representatives a detailed expenditure plan for 
using the funds provided under subsection (a). 
SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT. 
(a) IN GENERAL.—There is appropriated, out of any money 
in the Treasury not otherwise appropriated, for the fiscal year 
ending September 30, 2010, for an additional amount for the appro-
priations account appropriated under the heading ‘‘BUSINESS LOANS 
PROGRAM ACCOUNT’’ under the heading ‘‘SMALL BUSINESS ADMINIS-
TRATION’’— 
(1) $8,000,000, to remain available until September 30, 
2012, for fiscal year 2011 for the cost of direct loans authorized 
under section 7(l) of the Small Business Act, as added by 
section 1131 of this title, including the cost of modifying the 
loans; 
(2) $8,000,000, to remain available until September 30, 
2012, for fiscal year 2012 for the cost of direct loans authorized 
under section 7(l) of the Small Business Act, as added by 
section 1131 of this title, including the cost of modifying the 
loans; 
(3) $6,500,000, to remain available until September 30, 
2012, for administrative expenses to carry out the direct loan 
program authorized under section 7(l) of the Small Business 
Act, as added by section 1131 of this title, which may be 
transferred to and merged with the appropriations account 
appropriated under the heading ‘‘SALARIES
AND
EXPENSES’’ 
under the heading ‘‘SMALL BUSINESS ADMINISTRATION’’; and 
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124 STAT. 2553 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(4) $15,000,000, to remain available until September 30, 
2011, for the cost of guaranteed loans as authorized under 
section 7(a) of the Small Business Act, including the cost of 
modifying the loans. 
(b) DEFINITION.—In this section, the term ‘‘cost’’ has the 
meaning given that term in section 502 of the Congressional Budget 
Act of 1974. 
SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS 
FUND PROGRAM ACCOUNT. 
There is appropriated, out of any money in the Treasury not 
otherwise appropriated, for the fiscal year ending September 30, 
2010, for an additional amount for the appropriations account appro-
priated under the heading ‘‘COMMUNITY DEVELOPMENT FINANCIAL 
INSTITUTIONS
FUND
PROGRAM
ACCOUNT’’ under the heading 
‘‘DEPARTMENT OF THE TREASURY’’, $13,500,000, to remain 
available until September 30, 2012, for the costs of administering 
guarantees for bonds and notes as authorized under section 114A 
of the Riegle Community Development and Regulatory Improvement 
Act of 1994, as added by section 1134 of this Act. 
SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT EXTEN-
SIONS. 
(a) EXTENSION OF PROGRAMS.— 
(1) IN GENERAL.—There is appropriated, out of any funds 
in the Treasury not otherwise appropriated, for an additional 
amount for ‘‘Small Business Administration—Business Loans 
Program Account’’, $505,000,000, to remain available through 
December 31, 2010, for the cost of— 
(A) fee reductions and eliminations under section 501 
of division A of the American Recovery and Reinvestment 
Act of 2009 (Public Law 111–5; 123 Stat. 151), as amended 
by this Act; and 
(B) loan guarantees under section 502 of division A 
of the American Recovery and Reinvestment Act of 2009 
(Public Law 111–5; 123 Stat. 152), as amended by this 
Act. 
(2) COST.—For purposes of this subsection, the term ‘‘cost’’ 
has the same meaning as in section 502 of the Congressional 
Budget Act of 1974 (2 U.S.C. 661a). 
(b) ADMINISTRATIVE EXPENSES.—There is appropriated for an 
additional amount, out of any funds in the Treasury not otherwise 
appropriated, for administrative expenses to carry out sections 501 
and 502 of division A of the American Recovery and Reinvestment 
Act of 2009 (Public Law 111–5), $5,000,000, to remain available 
until expended, which may be transferred and merged with the 
appropriation for ‘‘Small Business Administration—Salaries and 
Expenses’’. 
TITLE II—TAX PROVISIONS 
SEC. 2001. SHORT TITLE. 
This title may be cited as the ‘‘Creating Small Business Jobs 
Act of 2010’’. 
26 USC 1 note. 
Creating Small 
Business Jobs 
Act of 2010. 
Appropriation 
authorization. 
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124 STAT. 2554 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Subtitle A—Small Business Relief 
PART I—PROVIDING ACCESS TO CAPITAL 
SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CER-
TAIN SMALL BUSINESS STOCK. 
(a) IN GENERAL.—Subsection (a) of section 1202 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following 
new paragraph: 
‘‘(4) 100 PERCENT EXCLUSION FOR STOCK ACQUIRED DURING 
CERTAIN PERIODS IN 2010.—In the case of qualified small busi-
ness stock acquired after the date of the enactment of the 
Creating Small Business Jobs Act of 2010 and before January 
1, 2011— 
‘‘(A) paragraph (1) shall be applied by substituting 
‘100 percent’ for ‘50 percent’, 
‘‘(B) paragraph (2) shall not apply, and 
‘‘(C) paragraph (7) of section 57(a) shall not apply.’’. 
(b) CONFORMING AMENDMENT.—Paragraph (3) of section 1202(a) 
of the Internal Revenue Code of 1986 is amended— 
(1) by inserting ‘‘CERTAIN PERIODS IN’’ before ‘‘2010’’ in the 
heading, and 
(2) by striking ‘‘before January 1, 2011’’ and inserting ‘‘on 
or before the date of the enactment of the Creating Small 
Business Jobs Act of 2010’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to stock acquired after the date of the enactment of 
this Act. 
SEC. 
2012. 
GENERAL 
BUSINESS 
CREDITS 
OF 
ELIGIBLE 
SMALL 
BUSINESSES FOR 2010 CARRIED BACK 5 YEARS. 
(a) IN GENERAL.—Section 39(a) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new para-
graph: 
‘‘(4) 5-YEAR
CARRYBACK
FOR
ELIGIBLE
SMALL
BUSINESS 
CREDITS.— 
‘‘(A) IN GENERAL.—Notwithstanding subsection (d), in 
the case of eligible small business credits determined in 
the first taxable year of the taxpayer beginning in 2010— 
‘‘(i) paragraph (1) shall be applied by substituting 
‘each of the 5 taxable years’ for ‘the taxable year’ 
in subparagraph (A) thereof, and 
‘‘(ii) paragraph (2) shall be applied— 
‘‘(I) by substituting ‘25 taxable years’ for ‘21 
taxable years’ in subparagraph (A) thereof, and 
‘‘(II) by substituting ‘24 taxable years’ for ‘20 
taxable years’ in subparagraph (B) thereof. 
‘‘(B) ELIGIBLE SMALL BUSINESS CREDITS.—For purposes 
of this subsection, the term ‘eligible small business credits’ 
has the meaning given such term by section 38(c)(5)(B).’’. 
(b) CONFORMING
AMENDMENT.—Section 39(a)(3)(A) of the 
Internal Revenue Code of 1986 is amended by inserting ‘‘or the 
eligible small business credits’’ after ‘‘credit)’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to credits determined in taxable years beginning after 
December 31, 2009. 
26 USC 39 note. 
Applicability. 
Applicability. 
26 USC 39. 
26 USC 1202 
note. 
Applicability. 
26 USC 1202. 
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124 STAT. 2555 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 
2013. 
GENERAL 
BUSINESS 
CREDITS 
OF 
ELIGIBLE 
SMALL 
BUSINESSES IN 2010 NOT SUBJECT TO ALTERNATIVE MIN-
IMUM TAX. 
(a) IN GENERAL.—Section 38(c) of the Internal Revenue Code 
of 1986 is amended by redesignating paragraph (5) as paragraph 
(6) and by inserting after paragraph (4) the following new para-
graph: 
‘‘(5) SPECIAL RULES FOR ELIGIBLE SMALL BUSINESS CREDITS 
IN 2010.— 
‘‘(A) IN GENERAL.—In the case of eligible small business 
credits determined in taxable years beginning in 2010— 
‘‘(i) this section and section 39 shall be applied 
separately with respect to such credits, and 
‘‘(ii) in applying paragraph (1) to such credits— 
‘‘(I) the tentative minimum tax shall be treated 
as being zero, and 
‘‘(II) the limitation under paragraph (1) (as 
modified by subclause (I)) shall be reduced by the 
credit allowed under subsection (a) for the taxable 
year (other than the eligible small business 
credits). 
‘‘(B) ELIGIBLE SMALL BUSINESS CREDITS.—For purposes 
of this subsection, the term ‘eligible small business credits’ 
means the sum of the credits listed in subsection (b) which 
are determined for the taxable year with respect to an 
eligible small business. Such credits shall not be taken 
into account under paragraph (2), (3), or (4). 
‘‘(C) ELIGIBLE SMALL BUSINESS.—For purposes of this 
subsection, the term ‘eligible small business’ means, with 
respect to any taxable year— 
‘‘(i) a corporation the stock of which is not publicly 
traded, 
‘‘(ii) a partnership, or 
‘‘(iii) a sole proprietorship, 
if the average annual gross receipts of such corporation, 
partnership, or sole proprietorship for the 3-taxable-year 
period preceding such taxable year does not exceed 
$50,000,000. For purposes of applying the test under the 
preceding sentence, rules similar to the rules of paragraphs 
(2) and (3) of section 448(c) shall apply. 
‘‘(D) TREATMENT
OF
PARTNERS
AND
S
CORPORATION 
SHAREHOLDERS.—Credits determined with respect to a part-
nership or S corporation shall not be treated as eligible 
small business credits by any partner or shareholder unless 
such partner or shareholder meets the gross receipts test 
under subparagraph (C) for the taxable year in which such 
credits are treated as current year business credits.’’. 
(b) TECHNICAL AMENDMENT.—Section 55(e)(5) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘38(c)(3)(B)’’ and 
inserting ‘‘38(c)(6)(B)’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Subclause (II) of section 38(c)(2)(A)(ii) of the Internal 
Revenue Code of 1986 is amended by inserting ‘‘the eligible 
small business credits,’’ after ‘‘the New York Liberty Zone busi-
ness employee credit,’’. 
26 USC 55. 
Applicability. 
Definition. 
Definition. 
Applicability. 
26 USC 38. 
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124 STAT. 2556 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(2) Subclause (II) of section 38(c)(3)(A)(ii) of such Code 
is amended by inserting ‘‘, the eligible small business credits,’’ 
after ‘‘the New York Liberty Zone business employee credit’’. 
(3) Subclause (II) of section 38(c)(4)(A)(ii) of such Code 
is amended by inserting ‘‘the eligible small business credits 
and’’ before ‘‘the specified credits’’. 
(d) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to credits determined in taxable years beginning 
after December 31, 2009, and to carrybacks of such credits. 
SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 
BUILT-IN GAINS TAX. 
(a) IN GENERAL.—Subparagraph (B) of section 1374(d)(7) of 
the Internal Revenue Code of 1986 is amended to read as follows: 
‘‘(B) SPECIAL RULES FOR 2009, 2010, AND 2011.—No tax 
shall be imposed on the net recognized built-in gain of 
an S corporation— 
‘‘(i) in the case of any taxable year beginning in 
2009 or 2010, if the 7th taxable year in the recognition 
period preceded such taxable year, or 
‘‘(ii) in the case of any taxable year beginning 
in 2011, if the 5th year in the recognition period pre-
ceded such taxable year. 
The preceding sentence shall be applied separately with 
respect to any asset to which paragraph (8) applies.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2010. 
PART II—ENCOURAGING INVESTMENT 
SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; 
CERTAIN REAL PROPERTY TREATED AS SECTION 179 
PROPERTY. 
(a) INCREASED LIMITATIONS.—Subsection (b) of section 179 of 
the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘shall not exceed’’ and all that follows in 
paragraph (1) and inserting ‘‘shall not exceed— 
‘‘(A) $250,000 in the case of taxable years beginning 
after 2007 and before 2010, 
‘‘(B) $500,000 in the case of taxable years beginning 
in 2010 or 2011, and 
‘‘(C) $25,000 in the case of taxable years beginning 
after 2011.’’, and 
(2) by striking ‘‘exceeds’’ and all that follows in paragraph 
(2) and inserting ‘‘exceeds— 
‘‘(A) $800,000 in the case of taxable years beginning 
after 2007 and before 2010, 
‘‘(B) $2,000,000 in the case of taxable years beginning 
in 2010 or 2011, and 
‘‘(C) $200,000 in the case of taxable years beginning 
after 2011.’’. 
(b) INCLUSION OF CERTAIN REAL PROPERTY.—Section 179 of 
the Internal Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(f) SPECIAL RULES FOR QUALIFIED REAL PROPERTY.— 
‘‘(1) IN GENERAL.—If a taxpayer elects the application of 
this subsection for any taxable year beginning in 2010 or 2011, 
26 USC 179. 
26 USC 1374. 
Applicability. 
26 USC 1374. 
26 USC 38 note. 
26 USC 38. 
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124 STAT. 2557 
PUBLIC LAW 111–240—SEPT. 27, 2010 
the term ‘section 179 property’ shall include any qualified real 
property which is— 
‘‘(A) of a character subject to an allowance for deprecia-
tion, 
‘‘(B) acquired by purchase for use in the active conduct 
of a trade or business, and 
‘‘(C) not described in the last sentence of subsection 
(d)(1). 
‘‘(2) QUALIFIED REAL PROPERTY.—For purposes of this sub-
section, the term ‘qualified real property’ means— 
‘‘(A) 
qualified 
leasehold 
improvement 
property 
described in section 168(e)(6), 
‘‘(B) qualified restaurant property described in section 
168(e)(7) (without regard to the dates specified in subpara-
graph (A)(i) thereof), and 
‘‘(C) qualified retail improvement property described 
in section 168(e)(8) (without regard to subparagraph (E) 
thereof). 
‘‘(3) LIMITATION.—For purposes of applying the limitation 
under subsection (b)(1)(B), not more than $250,000 of the aggre-
gate cost which is taken into account under subsection (a) 
for any taxable year may be attributable to qualified real prop-
erty. 
‘‘(4) CARRYOVER LIMITATION.— 
‘‘(A) 
IN
GENERAL.—Notwithstanding 
subsection 
(b)(3)(B), no amount attributable to qualified real property 
may be carried over to a taxable year beginning after 
2011. 
‘‘(B) TREATMENT OF DISALLOWED AMOUNTS.—Except as 
provided in subparagraph (C), to the extent that any 
amount is not allowed to be carried over to a taxable 
year beginning after 2011 by reason of subparagraph (A), 
this title shall be applied as if no election under this 
section had been made with respect to such amount. 
‘‘(C) AMOUNTS CARRIED OVER FROM 2010.—If subpara-
graph (B) applies to any amount (or portion of an amount) 
which is carried over from a taxable year other than the 
taxpayer’s last taxable year beginning in 2011, such 
amount (or portion of an amount) shall be treated for 
purposes of this title as attributable to property placed 
in service on the first day of the taxpayer’s last taxable 
year beginning in 2011. 
‘‘(D) ALLOCATION
OF
AMOUNTS.—For purposes of 
applying this paragraph and subsection (b)(3)(B) to any 
taxable year, the amount which is disallowed under sub-
section (b)(3)(A) for such taxable year which is attributed 
to qualified real property shall be the amount which bears 
the same ratio to the total amount so disallowed as— 
‘‘(i) the aggregate amount attributable to qualified 
real property placed in service during such taxable 
year, increased by the portion of any amount carried 
over to such taxable year from a prior taxable year 
which is attributable to such property, bears to 
‘‘(ii) the total amount of section 179 property placed 
in service during such taxable year, increased by the 
aggregate amount carried over to such taxable year 
from any prior taxable year. 
Applicability. 
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124 STAT. 2558 
PUBLIC LAW 111–240—SEPT. 27, 2010 
For purposes of the preceding sentence, only section 179 
property with respect to which an election was made under 
subsection (c)(1) (determined without regard to subpara-
graph (B) of this paragraph) shall be taken into account.’’. 
(c) REVOCABILITY OF ELECTION.—Paragraph (2) of section 179(c) 
of the Internal Revenue Code of 1986 is amended by striking 
‘‘2011’’ and inserting ‘‘2012’’. 
(d) COMPUTER SOFTWARE TREATED AS 179 PROPERTY.—Clause 
(ii) of section 179(d)(1)(A) is amended by striking ‘‘2011’’ and 
inserting ‘‘2012’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall apply to property placed 
in service after December 31, 2009, in taxable years beginning 
after such date. 
(2) EXTENSIONS.—The amendments made by subsections 
(c) and (d) shall apply to taxable years beginning after 
December 31, 2010. 
SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT 
OF THE BASIS OF CERTAIN QUALIFIED PROPERTY. 
(a) IN GENERAL.—Paragraph (2) of section 168(k) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘January 1, 2011’’ in subparagraph (A)(iv) 
and inserting ‘‘January 1, 2012’’, and 
(2) by striking ‘‘January 1, 2010’’ each place it appears 
and inserting ‘‘January 1, 2011’’. 
(b) CONFORMING AMENDMENTS.— 
(1) The heading for subsection (k) of section 168 of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘JANUARY 1, 2010’’ and inserting ‘‘JANUARY 1, 2011’’. 
(2) The heading for clause (ii) of section 168(k)(2)(B) of 
such Code is amended by striking ‘‘PRE-JANUARY 1, 2010’’ and 
inserting ‘‘PRE-JANUARY 1, 2011’’. 
(3) Subparagraph (D) of section 168(k)(4) of such Code 
is amended by striking ‘‘and’’ at the end of clause (ii), by 
striking the period at the end of clause (iii) and inserting 
a comma, and by adding at the end the following new clauses: 
‘‘(iv) ‘January 1, 2011’ shall be substituted for 
‘January 1, 2012’ in subparagraph (A)(iv) thereof, and 
‘‘(v) ‘January 1, 2010’ shall be substituted for 
‘January 1, 2011’ each place it appears in subpara-
graph (A) thereof.’’. 
(4) Subparagraph (B) of section 168(l)(5) of such Code is 
amended by striking ‘‘January 1, 2010’’ and inserting ‘‘January 
1, 2011’’. 
(5) Subparagraph (C) of section 168(n)(2) of such Code 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(6) Subparagraph (D) of section 1400L(b)(2) of such Code 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
(7) Subparagraph (B) of section 1400N(d)(3) of such Code 
is amended by striking ‘‘January 1, 2010’’ and inserting 
‘‘January 1, 2011’’. 
26 USC 1400N. 
26 USC 1400L. 
26 USC 168. 
Applicability. 
26 USC 179 note. 
26 USC 179. 
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124 STAT. 2559 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to property placed in service after December 31, 2009, 
in taxable years ending after such date. 
SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING. 
(a) IN GENERAL.—Section 460(c) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new para-
graph: 
‘‘(6) SPECIAL RULE FOR ALLOCATION OF BONUS DEPRECIATION 
WITH RESPECT TO CERTAIN PROPERTY.— 
‘‘(A) IN GENERAL.—Solely for purposes of determining 
the percentage of completion under subsection (b)(1)(A), 
the cost of qualified property shall be taken into account 
as a cost allocated to the contract as if subsection (k) 
of section 168 had not been enacted. 
‘‘(B) QUALIFIED PROPERTY.—For purposes of this para-
graph, the term ‘qualified property’ means property 
described in section 168(k)(2) which— 
‘‘(i) has a recovery period of 7 years or less, and 
‘‘(ii) is placed in service after December 31, 2009, 
and before January 1, 2011 (January 1, 2012, in the 
case of property described in section 168(k)(2)(B)).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to property placed in service after December 31, 2009. 
PART III—PROMOTING ENTREPRENEURSHIP 
SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR 
START-UP EXPENDITURES IN 2010. 
(a) START-UP EXPENDITURES.—Subsection (b) of section 195 of 
the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph: 
‘‘(3) SPECIAL RULE FOR TAXABLE YEARS BEGINNING IN 2010.— 
In the case of a taxable year beginning in 2010, paragraph 
(1)(A)(ii) shall be applied— 
‘‘(A) by substituting ‘$10,000’ for ‘$5,000’, and 
‘‘(B) by substituting ‘$60,000’ for ‘$50,000’.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to amounts paid or incurred in taxable years beginning 
after December 31, 2009. 
SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED 
STATES TRADE REPRESENTATIVE TO DEVELOP MARKET 
ACCESS OPPORTUNITIES FOR UNITED STATES SMALL- 
AND MEDIUM-SIZED BUSINESSES AND TO ENFORCE 
TRADE AGREEMENTS. 
(a) IN GENERAL.—There are authorized to be appropriated to 
the Office of the United States Trade Representative $5,230,000, 
to remain available until expended, for— 
(1) analyzing and developing opportunities for businesses 
in the United States to access the markets of foreign countries; 
and 
(2) enforcing trade agreements to which the United States 
is a party. 
(b) REQUIREMENTS.—In obligating and expending the funds 
authorized to be appropriated under subsection (a), the United 
States Trade Representative shall— 
26 USC 195 note. 
Applicability. 
26 USC 195. 
26 USC 460 note. 
Definition. 
26 USC 460. 
26 USC 168 note. 
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124 STAT. 2560 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(1) give preference to those initiatives that the United 
States Trade Representative determines will create or sustain 
the greatest number of jobs in the United States or result 
in the greatest benefit to the economy of the United States; 
and 
(2) consider the needs of small- and medium-sized 
businesses in the United States with respect to— 
(A) accessing the markets of foreign countries; and 
(B) the enforcement of trade agreements to which the 
United States is a party. 
PART IV—PROMOTING SMALL BUSINESS 
FAIRNESS 
SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE 
REPORTABLE TRANSACTIONS BASED ON RESULTING TAX 
BENEFITS. 
(a) IN GENERAL.—Subsection (b) of section 6707A of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(b) AMOUNT OF PENALTY.— 
‘‘(1) IN GENERAL.—Except as otherwise provided in this 
subsection, the amount of the penalty under subsection (a) 
with respect to any reportable transaction shall be 75 percent 
of the decrease in tax shown on the return as a result of 
such transaction (or which would have resulted from such trans-
action if such transaction were respected for Federal tax pur-
poses). 
‘‘(2) MAXIMUM PENALTY.—The amount of the penalty under 
subsection (a) with respect to any reportable transaction shall 
not exceed— 
‘‘(A) in the case of a listed transaction, $200,000 
($100,000 in the case of a natural person), or 
‘‘(B) in the case of any other reportable transaction, 
$50,000 ($10,000 in the case of a natural person). 
‘‘(3) MINIMUM PENALTY.—The amount of the penalty under 
subsection (a) with respect to any transaction shall not be 
less than $10,000 ($5,000 in the case of a natural person).’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to penalties assessed after December 31, 2006. 
SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COM-
PUTING SELF-EMPLOYMENT TAXES IN 2010. 
(a) IN GENERAL.—Paragraph (4) of section 162(l) of the Internal 
Revenue Code of 1986 is amended by inserting ‘‘for taxable years 
beginning before January 1, 2010, or after December 31, 2010’’ 
before the period. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2009. 
SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR TELE-
COMMUNICATIONS EQUIPMENT FROM LISTED PROPERTY. 
(a) IN GENERAL.—Subparagraph (A) of section 280F(d)(4) of 
the Internal Revenue Code of 1986 (defining listed property) is 
amended by adding ‘‘ ‘and’ ’’ at the end of clause (iv), by striking 
clause (v), and by redesignating clause (vi) as clause (v). 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to taxable years beginning after December 31, 2009. 
26 USC 280F 
note. 
26 USC 280F. 
26 USC 162 note. 
26 USC 162. 
26 USC 6707A 
note. 
26 USC 6707A. 
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124 STAT. 2561 
PUBLIC LAW 111–240—SEPT. 27, 2010 
Subtitle B—Revenue Provisions 
PART I—REDUCING THE TAX GAP 
SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY 
EXPENSE PAYMENTS. 
(a) IN GENERAL.—Section 6041 of the Internal Revenue Code 
of 1986, as amended by section 9006 of the Patient Protection 
and Affordable Care Act, is amended by redesignating subsections 
(h) and (i) as subsections (i) and (j), respectively, and by inserting 
after subsection (g) the following new subsection: 
‘‘(h) TREATMENT OF RENTAL PROPERTY EXPENSE PAYMENTS.— 
‘‘(1) IN
GENERAL.—Solely for purposes of subsection (a) 
and except as provided in paragraph (2), a person receiving 
rental income from real estate shall be considered to be engaged 
in a trade or business of renting property. 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not apply to— 
‘‘(A) any individual, including any individual who is 
an active member of the uniformed services or an employee 
of the intelligence community (as defined in section 
121(d)(9)(C)(iv)), if substantially all rental income is derived 
from renting the principal residence (within the meaning 
of section 121) of such individual on a temporary basis, 
‘‘(B) any individual who receives rental income of not 
more than the minimal amount, as determined under regu-
lations prescribed by the Secretary, and 
‘‘(C) any other individual for whom the requirements 
of this section would cause hardship, as determined under 
regulations prescribed by the Secretary.’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall apply to payments made after December 31, 2010. 
SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES. 
(a) FAILURE TO FILE CORRECT INFORMATION RETURNS.— 
(1) IN GENERAL.—Subsections (a)(1), (b)(1)(A), and (b)(2)(A) 
of section 6721 of the Internal Revenue Code of 1986 are 
each amended by striking ‘‘$50’’ and inserting ‘‘$100’’. 
(2) AGGREGATE
ANNUAL
LIMITATION.—Subsections (a)(1), 
(d)(1)(A), and (e)(3)(A) of section 6721 of such Code are each 
amended by striking ‘‘$250,000’’ and inserting ‘‘$1,500,000’’. 
(b) REDUCTION WHERE CORRECTION WITHIN 30 DAYS.— 
(1) IN GENERAL.—Subparagraph (A) of section 6721(b)(1) 
of the Internal Revenue Code of 1986 is amended by striking 
‘‘$15’’ and inserting ‘‘$30’’. 
(2) AGGREGATE ANNUAL LIMITATION.—Subsections (b)(1)(B) 
and (d)(1)(B) of section 6721 of such Code are each amended 
by striking ‘‘$75,000’’ and inserting ‘‘$250,000’’. 
(c) REDUCTION WHERE CORRECTION
ON
OR BEFORE AUGUST 
1.— 
(1) IN GENERAL.—Subparagraph (A) of section 6721(b)(2) 
of the Internal Revenue Code of 1986 is amended by striking 
‘‘$30’’ and inserting ‘‘$60’’. 
(2) AGGREGATE ANNUAL LIMITATION.—Subsections (b)(2)(B) 
and (d)(1)(C) of section 6721 of such Code are each amended 
by striking ‘‘$150,000’’ and inserting ‘‘$500,000’’. 
(d) AGGREGATE ANNUAL LIMITATIONS FOR PERSONS WITH GROSS 
RECEIPTS OF NOT MORE THAN $5,000,000.— 
26 USC 6721. 
26 USC 6041 
note. 
Regulations. 
Ante, p. 855. 
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124 STAT. 2562 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(1) IN GENERAL.—Paragraph (1) of section 6721(d) of the 
Internal Revenue Code of 1986 is amended— 
(A) by striking ‘‘$100,000’’ in subparagraph (A) and 
inserting ‘‘$500,000’’, 
(B) by striking ‘‘$25,000’’ in subparagraph (B) and 
inserting ‘‘$75,000’’, and 
(C) by striking ‘‘$50,000’’ in subparagraph (C) and 
inserting ‘‘$200,000’’. 
(2) TECHNICAL
AMENDMENT.—Paragraph (1) of section 
6721(d) of such Code is amended by striking ‘‘such taxable 
year’’ and inserting ‘‘such calendar year’’. 
(e) PENALTY IN CASE OF INTENTIONAL DISREGARD.—Paragraph 
(2) of section 6721(e) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$100’’ and inserting ‘‘$250’’. 
(f) ADJUSTMENT FOR INFLATION.—Section 6721 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following 
new subsection: 
‘‘(f) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—For each fifth calendar year beginning 
after 2012, each of the dollar amounts under subsections (a), 
(b), (d) (other than paragraph (2)(A) thereof), and (e) shall 
be increased by such dollar amount multiplied by the cost- 
of-living adjustment determined under section 1(f)(3) deter-
mined by substituting ‘calendar year 2011’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted under paragraph 
(1)— 
‘‘(A) is not less than $75,000 and is not a multiple 
of $500, such amount shall be rounded to the next lowest 
multiple of $500, and 
‘‘(B) is not described in subparagraph (A) and is not 
a multiple of $10, such amount shall be rounded to the 
next lowest multiple of $10.’’. 
(g) FAILURE TO FURNISH CORRECT PAYEE STATEMENTS.—Section 
6722 of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATEMENTS. 
‘‘(a) IMPOSITION OF PENALTY.— 
‘‘(1) GENERAL RULE.—In the case of each failure described 
in paragraph (2) by any person with respect to a payee state-
ment, such person shall pay a penalty of $100 for each state-
ment with respect to which such a failure occurs, but the 
total amount imposed on such person for all such failures 
during any calendar year shall not exceed $1,500,000. 
‘‘(2) FAILURES SUBJECT TO PENALTY.—For purposes of para-
graph (1), the failures described in this paragraph are— 
‘‘(A) any failure to furnish a payee statement on or 
before the date prescribed therefor to the person to whom 
such statement is required to be furnished, and 
‘‘(B) any failure to include all of the information 
required to be shown on a payee statement or the inclusion 
of incorrect information. 
‘‘(b) REDUCTION WHERE CORRECTION IN SPECIFIED PERIOD.— 
‘‘(1) CORRECTION WITHIN 30 DAYS.—If any failure described 
in subsection (a)(2) is corrected on or before the day 30 days 
after the required filing date— 
26 USC 6722. 
26 USC 6721. 
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124 STAT. 2563 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(A) the penalty imposed by subsection (a) shall be 
$30 in lieu of $100, and 
‘‘(B) the total amount imposed on the person for all 
such failures during any calendar year which are so cor-
rected shall not exceed $250,000. 
‘‘(2) FAILURES
CORRECTED
ON
OR
BEFORE
AUGUST
1.—If 
any failure described in subsection (a)(2) is corrected after 
the 30th day referred to in paragraph (1) but on or before 
August 1 of the calendar year in which the required filing 
date occurs— 
‘‘(A) the penalty imposed by subsection (a) shall be 
$60 in lieu of $100, and 
‘‘(B) the total amount imposed on the person for all 
such failures during the calendar year which are so cor-
rected shall not exceed $500,000. 
‘‘(c) EXCEPTION FOR DE MINIMIS FAILURES.— 
‘‘(1) IN GENERAL.—If— 
‘‘(A) a payee statement is furnished to the person to 
whom such statement is required to be furnished, 
‘‘(B) there is a failure described in subsection (a)(2)(B) 
(determined after the application of section 6724(a)) with 
respect to such statement, and 
‘‘(C) such failure is corrected on or before August 1 
of the calendar year in which the required filing date 
occurs, 
for purposes of this section, such statement shall be treated 
as having been furnished with all of the correct required 
information. 
‘‘(2) LIMITATION.—The number of payee statements to 
which paragraph (1) applies for any calendar year shall not 
exceed the greater of— 
‘‘(A) 10, or 
‘‘(B) one-half of 1 percent of the total number of payee 
statements required to be filed by the person during the 
calendar year. 
‘‘(d) LOWER LIMITATIONS FOR PERSONS WITH GROSS RECEIPTS 
OF NOT MORE THAN $5,000,000.— 
‘‘(1) IN GENERAL.—If any person meets the gross receipts 
test of paragraph (2) with respect to any calendar year, with 
respect to failures during such calendar year— 
‘‘(A) subsection (a)(1) shall be applied by substituting 
‘$500,000’ for ‘$1,500,000’, 
‘‘(B) subsection (b)(1)(B) shall be applied by sub-
stituting ‘$75,000’ for ‘$250,000’, and 
‘‘(C) subsection (b)(2)(B) shall be applied by sub-
stituting ‘$200,000’ for ‘$500,000’. 
‘‘(2) GROSS
RECEIPTS
TEST.—A person meets the gross 
receipts test of this paragraph if such person meets the gross 
receipts test of section 6721(d)(2). 
‘‘(e) PENALTY IN CASE OF INTENTIONAL DISREGARD.—If 1 or 
more failures to which subsection (a) applies are due to intentional 
disregard of the requirement to furnish a payee statement (or 
the correct information reporting requirement), then, with respect 
to each such failure— 
‘‘(1) subsections (b), (c), and (d) shall not apply, 
‘‘(2) the penalty imposed under subsection (a)(1) shall be 
$250, or, if greater— 
Applicability. 
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124 STAT. 2564 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(A) in the case of a payee statement other than a 
statement required under section 6045(b), 6041A(e) (in 
respect of a return required under section 6041A(b)), 
6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of 
the aggregate amount of the items required to be reported 
correctly, or 
‘‘(B) in the case of a payee statement required under 
section 6045(b), 6050K(b), or 6050L(c), 5 percent of the 
aggregate amount of the items required to be reported 
correctly, and 
‘‘(3) in the case of any penalty determined under paragraph 
(2)— 
‘‘(A) the $1,500,000 limitation under subsection (a) 
shall not apply, and 
‘‘(B) such penalty shall not be taken into account in 
applying such limitation to penalties not determined under 
paragraph (2). 
‘‘(f) ADJUSTMENT FOR INFLATION.— 
‘‘(1) IN GENERAL.—For each fifth calendar year beginning 
after 2012, each of the dollar amounts under subsections (a), 
(b), (d)(1), and (e) shall be increased by such dollar amount 
multiplied by the cost-of-living adjustment determined under 
section 1(f)(3) determined by substituting ‘calendar year 2011’ 
for ‘calendar year 1992’ in subparagraph (B) thereof. 
‘‘(2) ROUNDING.—If any amount adjusted under paragraph 
(1)— 
‘‘(A) is not less than $75,000 and is not a multiple 
of $500, such amount shall be rounded to the next lowest 
multiple of $500, and 
‘‘(B) is not described in subparagraph (A) and is not 
a multiple of $10, such amount shall be rounded to the 
next lowest multiple of $10.’’. 
(h) EFFECTIVE DATE.—The amendments made by this section 
shall apply with respect to information returns required to be 
filed on or after January 1, 2011. 
SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER 
ENFORCEMENT ACTIONS. 
(a) IN GENERAL.—The Commissioner of Internal Revenue, in 
consultation with the Secretary of the Treasury, shall submit to 
the Committee on Ways and Means of the House of Representatives 
and the Committee on Finance of the Senate an annual report 
on the penalties assessed by the Internal Revenue Service during 
the preceding year under each of the following provisions of the 
Internal Revenue Code of 1986: 
(1) Section 6662A (relating to accuracy-related penalty on 
understatements with respect to reportable transactions). 
(2) Section 6700(a) (relating to promoting abusive tax shel-
ters). 
(3) Section 6707 (relating to failure to furnish information 
regarding reportable transactions). 
(4) Section 6707A (relating to failure to include reportable 
transaction information with return). 
(5) Section 6708 (relating to failure to maintain lists of 
advisees with respect to reportable transactions). 
26 USC 6662A 
note. 
26 USC 6721 
note. 
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124 STAT. 2565 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(b) ADDITIONAL INFORMATION.—The report required under sub-
section (a) shall also include information on the following with 
respect to each year: 
(1) Any action taken under section 330(b) of title 31, United 
States Code, with respect to any reportable transaction (as 
defined in section 6707A(c) of the Internal Revenue Code of 
1986). 
(2) Any extension of the time for assessment of tax enforced, 
or assessment of any amount under such an extension, under 
paragraph (10) of section 6501(c) of the Internal Revenue Code 
of 1986. 
(c) DATE OF REPORT.—The first report required under sub-
section (a) shall be submitted not later than December 31, 2010. 
SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES 
OF CERTAIN FEDERAL CONTRACTORS. 
(a) IN GENERAL.—Subsection (f) of section 6330 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ at the end 
of paragraph (2), by inserting ‘‘or’’ at the end of paragraph (3), 
and by inserting after paragraph (3) the following new paragraph: 
‘‘(4) the Secretary has served a Federal contractor levy,’’. 
(b) FEDERAL CONTRACTOR LEVY.—Subsection (h) of section 6330 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking all that precedes ‘‘any levy in connection 
with the collection’’ and inserting the following: 
‘‘(h) DEFINITIONS RELATED TO EXCEPTIONS.—For purposes of 
subsection (f)— 
‘‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY.—A disqualified 
employment tax levy is’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) FEDERAL CONTRACTOR LEVY.—A Federal contractor levy 
is any levy if the person whose property is subject to the 
levy (or any predecessor thereof) is a Federal contractor.’’. 
(c) CONFORMING AMENDMENT.—The heading of subsection (f) 
of section 6330 of the Internal Revenue Code of 1986 is amended 
by striking ‘‘JEOPARDY
AND
STATE
REFUND
COLLECTION’’ and 
inserting ‘‘EXCEPTIONS’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to levies issued after the date of the enactment of 
this Act. 
PART II—PROMOTING RETIREMENT 
PREPARATION 
SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS 
ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH 
CONTRIBUTIONS. 
(a) IN GENERAL.—Section 402A(e)(1) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the end of subpara-
graph (A), by striking the period at the end of subparagraph (B) 
and inserting ‘‘, and’’, and by adding at the end the following: 
‘‘(C) an eligible deferred compensation plan (as defined 
in section 457(b)) of an eligible employer described in sec-
tion 457(e)(1)(A).’’. 
(b) ELECTIVE DEFERRALS.—Section 402A(e)(2) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
26 USC 402A. 
26 USC 6330 
note. 
26 USC 6330. 
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124 STAT. 2566 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(2) ELECTIVE
DEFERRAL.—The term ‘elective deferral’ 
means— 
‘‘(A) any elective deferral described in subparagraph 
(A) or (C) of section 402(g)(3), and 
‘‘(B) any elective deferral of compensation by an indi-
vidual under an eligible deferred compensation plan (as 
defined in section 457(b)) of an eligible employer described 
in section 457(e)(1)(A).’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall apply to taxable years beginning after December 31, 2010. 
SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO DES-
IGNATED ROTH ACCOUNTS. 
(a) IN GENERAL.—Section 402A(c) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new para-
graph: 
‘‘(4) TAXABLE ROLLOVERS TO DESIGNATED ROTH ACCOUNTS.— 
‘‘(A) IN
GENERAL.—Notwithstanding sections 402(c), 
403(b)(8), and 457(e)(16), in the case of any distribution 
to which this paragraph applies— 
‘‘(i) there shall be included in gross income any 
amount which would be includible were it not part 
of a qualified rollover contribution, 
‘‘(ii) section 72(t) shall not apply, and 
‘‘(iii) unless the taxpayer elects not to have this 
clause apply, any amount required to be included in 
gross income for any taxable year beginning in 2010 
by reason of this paragraph shall be so included ratably 
over the 2-taxable-year period beginning with the first 
taxable year beginning in 2011. 
Any election under clause (iii) for any distributions during 
a taxable year may not be changed after the due date 
for such taxable year. 
‘‘(B) DISTRIBUTIONS TO WHICH PARAGRAPH APPLIES.— 
In the case of an applicable retirement plan which includes 
a qualified Roth contribution program, this paragraph shall 
apply to a distribution from such plan other than from 
a designated Roth account which is contributed in a quali-
fied rollover contribution (within the meaning of section 
408A(e)) to the designated Roth account maintained under 
such plan for the benefit of the individual to whom the 
distribution is made. 
‘‘(C) COORDINATION WITH LIMIT.—Any distribution to 
which this paragraph applies shall not be taken into 
account for purposes of paragraph (1). 
‘‘(D) OTHER RULES.—The rules of subparagraphs (D), 
(E), and (F) of section 408A(d)(3) (as in effect for taxable 
years beginning after 2009) shall apply for purposes of 
this paragraph.’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to distributions after the date of the enactment of 
this Act. 
SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED FROM ONLY 
A PORTION OF A CONTRACT. 
(a) IN GENERAL.—Subsection (a) of section 72 of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(a) GENERAL RULES FOR ANNUITIES.— 
26 USC 72. 
26 USC 402A 
note. 
26 USC 402A. 
26 USC 402A 
note. 
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124 STAT. 2567 
PUBLIC LAW 111–240—SEPT. 27, 2010 
‘‘(1) INCOME INCLUSION.—Except as otherwise provided in 
this chapter, gross income includes any amount received as 
an annuity (whether for a period certain or during one or 
more lives) under an annuity, endowment, or life insurance 
contract. 
‘‘(2) PARTIAL ANNUITIZATION.—If any amount is received 
as an annuity for a period of 10 years or more or during 
one or more lives under any portion of an annuity, endowment, 
or life insurance contract— 
‘‘(A) such portion shall be treated as a separate contract 
for purposes of this section, 
‘‘(B) for purposes of applying subsections (b), (c), and 
(e), the investment in the contract shall be allocated pro 
rata between each portion of the contract from which 
amounts are received as an annuity and the portion of 
the contract from which amounts are not received as an 
annuity, and 
‘‘(C) a separate annuity starting date under subsection 
(c)(4) shall be determined with respect to each portion 
of the contract from which amounts are received as an 
annuity.’’. 
(b) EFFECTIVE DATE.—The amendment made by this section 
shall apply to amounts received in taxable years beginning after 
December 31, 2010. 
PART III—CLOSING UNINTENDED LOOPHOLES 
SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL 
PRODUCER CREDIT. 
(a) IN GENERAL.—Clause (iii) of section 40(b)(6)(E) of the 
Internal Revenue Code of 1986, as added by the Health Care 
and Education Reconciliation Act of 2010, is amended— 
(1) by striking ‘‘or’’ at the end of subclause (I), 
(2) by striking the period at the end of subclause (II) 
and inserting ‘‘, or’’, 
(3) by adding at the end the following new subclause: 
‘‘(III) such fuel has an acid number greater 
than 25.’’, and 
(4) by striking ‘‘UNPROCESSED’’ in the heading and inserting 
‘‘CERTAIN’’. 
(b) EFFECTIVE DATE.—The amendments made by this section 
shall apply to fuels sold or used on or after January 1, 2010. 
SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES. 
(a) AMOUNTS SOURCED WITHIN
THE UNITED STATES.—Sub-
section (a) of section 861 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph: 
‘‘(9) GUARANTEES.—Amounts received, directly or indirectly, 
from— 
‘‘(A) a noncorporate resident or domestic corporation 
for the provision of a guarantee of any indebtedness of 
such resident or corporation, or 
‘‘(B) any foreign person for the provision of a guarantee 
of any indebtedness of such person, if such amount is 
connected with income which is effectively connected (or 
treated as effectively connected) with the conduct of a 
trade or business in the United States.’’. 
26 USC 861. 
26 USC 40 note. 
Ante, p. 1067. 
26 USC 72 note. 
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124 STAT. 2568 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(b) AMOUNTS SOURCED WITHOUT THE UNITED STATES.—Sub-
section (a) of section 862 of the Internal Revenue Code of 1986 
is amended by striking ‘‘and’’ at the end of paragraph (7), by 
striking the period at the end of paragraph (8) and inserting ‘‘; 
and’’, and by adding at the end the following new paragraph: 
‘‘(9) amounts received, directly or indirectly, from a foreign 
person for the provision of a guarantee of indebtedness of 
such person other than amounts which are derived from sources 
within the United States as provided in section 861(a)(9).’’. 
(c) 
CONFORMING
AMENDMENT.—Clause 
(ii) 
of 
section 
864(c)(4)(B) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘dividends or interest’’ and inserting ‘‘dividends, interest, 
or amounts received for the provision of guarantees of indebted-
ness’’. 
(d) EFFECTIVE DATE.—The amendments made by this section 
shall apply to guarantees issued after the date of the enactment 
of this Act. 
PART IV—TIME FOR PAYMENT OF CORPORATE 
ESTIMATED TAXES 
SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES. 
The percentage under paragraph (2) of section 561 of the Hiring 
Incentives to Restore Employment Act in effect on the date of 
the enactment of this Act is increased by 36 percentage points. 
TITLE III—STATE SMALL BUSINESS 
CREDIT INITIATIVE 
SEC. 3001. SHORT TITLE. 
This title may be cited as the ‘‘State Small Business Credit 
Initiative Act of 2010’’. 
SEC. 3002. DEFINITIONS. 
In this title, the following definitions shall apply: 
(1) APPROPRIATE
COMMITTEES
OF
CONGRESS.—The term 
‘‘appropriate committees of Congress’’ means— 
(A) 
the 
Committee 
on 
Small 
Business 
and 
Entrepreneurship, the Committee on Agriculture, Nutri-
tion, and Forestry, the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Finance, the Com-
mittee on the Budget, and the Committee on Appropria-
tions of the Senate; and 
(B) the Committee on Small Business, the Committee 
on Agriculture, the Committee on Financial Services, the 
Committee on Ways and Means, the Committee on the 
Budget, and the Committee on Appropriations of the House 
of Representatives. 
(2) APPROPRIATE
FEDERAL
BANKING
AGENCY.—The term 
‘‘appropriate Federal banking agency’’— 
(A) has the same meaning as in section 3(q) of the 
Federal Deposit Insurance Act (12 U.S.C. 1813(q)); and 
(B) includes the National Credit Union Administration 
Board in the case of any credit union the deposits of which 
12 USC 5701. 
12 USC 5701 
note. 
State Small 
Business Credit 
Initiative Act of 
2010. 
22 USC 6655 
note. 
26 USC 861 note. 
26 USC 864. 
26 USC 862. 
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124 STAT. 2569 
PUBLIC LAW 111–240—SEPT. 27, 2010 
are insured in accordance with the Federal Credit Union 
Act. 
(3) ENROLLED LOAN.—The term ‘‘enrolled loan’’ means a 
loan made by a financial institution lender that is enrolled 
by a participating State in an approved State capital access 
program in accordance with this title. 
(4) FEDERAL CONTRIBUTION.—The term ‘‘Federal contribu-
tion’’ means the portion of the contribution made by a partici-
pating State to, or for the account of, an approved State pro-
gram that is made with Federal funds allocated to the State 
by the Secretary under section 3003. 
(5) FINANCIAL INSTITUTION.—The term ‘‘financial institu-
tion’’ means any insured depository institution, insured credit 
union, or community development financial institution, as those 
terms are each defined in section 103 of the Riegle Community 
Development and Regulatory Improvement Act of 1994 (12 
U.S.C. 4702). 
(6) PARTICIPATING STATE.—The term ‘‘participating State’’ 
means any State that has been approved for participation in 
the Program under section 3004. 
(7) PROGRAM.—The term ‘‘Program’’ means the State Small 
Business Credit Initiative established under this title. 
(8) QUALIFYING
LOAN
OR
SWAP
FUNDING
FACILITY.—The 
term ‘‘qualifying loan or swap funding facility’’ means a contrac-
tual arrangement between a participating State and a private 
financial entity under which— 
(A) the participating State delivers funds to the entity 
as collateral; 
(B) the entity provides funding from the arrangement 
back to the participating State; and 
(C) the full amount of resulting funding from the 
arrangement, less any fees and other costs of the arrange-
ment, is contributed to, or for the account of, an approved 
State program. 
(9) RESERVE FUND.—The term ‘‘reserve fund’’ means a fund, 
established by a participating State, dedicated to a particular 
financial institution lender, for the purposes of— 
(A) depositing all required premium charges paid by 
the financial institution lender and by each borrower 
receiving a loan under an approved State program from 
that financial institution lender; 
(B) depositing contributions made by the participating 
State, including State contributions made with Federal 
contributions; and 
(C) covering losses on enrolled loans by disbursing 
accumulated funds. 
(10) STATE.—The term ‘‘State’’ means— 
(A) a State of the United States; 
(B) the District of Columbia, the Commonwealth of 
Puerto Rico, the Commonwealth of Northern Mariana 
Islands, Guam, American Samoa, and the United States 
Virgin Islands; 
(C) when designated by a State of the United States, 
a political subdivision of that State that the Secretary 
determines has the capacity to participate in the Program; 
and 
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124 STAT. 2570 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(D) under the circumstances described in section 
3004(d), a municipality of a State of the United States 
to which the Secretary has given a special permission under 
section 3004(d). 
(11) STATE
CAPITAL
ACCESS
PROGRAM.—The term ‘‘State 
capital access program’’ means a program of a State that— 
(A) uses public resources to promote private access 
to credit; and 
(B) meets the eligibility criteria in section 3005(c). 
(12) STATE OTHER CREDIT SUPPORT PROGRAM.—The term 
‘‘State other credit support program’’— 
(A) means a program of a State that— 
(i) uses public resources to promote private access 
to credit; 
(ii) is not a State capital access program; and 
(iii) meets the eligibility criteria in section 3006(c); 
and 
(B) includes, collateral support programs, loan partici-
pation programs, State-run venture capital fund programs, 
and credit guarantee programs. 
(13) STATE PROGRAM.—The term ‘‘State program’’ means 
a State capital access program or a State other credit support 
program. 
(14) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of the Treasury. 
SEC. 3003. FEDERAL FUNDS ALLOCATED TO STATES. 
(a) PROGRAM ESTABLISHED; PURPOSE.—There is established the 
State Small Business Credit Initiative, to be administered by the 
Secretary. Under the Program, the Secretary shall allocate Federal 
funds to participating States and make the allocated funds available 
to the participating States as provided in this section for the uses 
described in this section. 
(b) ALLOCATION FORMULA.— 
(1) IN GENERAL.—Not later than 30 days after the date 
of enactment of this Act, the Secretary shall allocate Federal 
funds to participating States so that each State is eligible 
to receive an amount equal to the average of the respective 
amounts that the State— 
(A) would receive under the 2009 allocation, as deter-
mined under paragraph (2); and 
(B) would receive under the 2010 allocation, as deter-
mined under paragraph (3). 
(2) 2009 ALLOCATION FORMULA.— 
(A) IN GENERAL.—The Secretary shall determine the 
2009 allocation by allocating Federal funds among the 
States in the proportion that each such State’s 2008 State 
employment decline bears to the aggregate of the 2008 
State employment declines for all States. 
(B) MINIMUM ALLOCATION.—The Secretary shall adjust 
the allocations under subparagraph (A) for each State to 
the extent necessary to ensure that no State receives less 
than 0.9 percent of the Federal funds. 
(C) 2008 STATE
EMPLOYMENT
DECLINE
DEFINED.—In 
this paragraph and with respect to a State, the term ‘‘2008 
State employment decline’’ means the excess (if any) of— 
Adjustment. 
Determination. 
Deadline. 
12 USC 5702. 
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124 STAT. 2571 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(i) the number of individuals employed in such 
State determined for December 2007; over 
(ii) the number of individuals employed in such 
State determined for December 2008. 
(3) 2010 ALLOCATION FORMULA.— 
(A) IN GENERAL.—The Secretary shall determine the 
2010 allocation by allocating Federal funds among the 
States in the proportion that each such State’s 2009 
unemployment number bears to the aggregate of the 2009 
unemployment numbers for all of the States. 
(B) MINIMUM ALLOCATION.—The Secretary shall adjust 
the allocations under subparagraph (A) for each State to 
the extent necessary to ensure that no State receives less 
than 0.9 percent of the Federal funds. 
(C) 2009 UNEMPLOYMENT NUMBER DEFINED.—In this 
paragraph and with respect to a State, the term ‘‘2009 
unemployment number’’ means the number of individuals 
within such State who were determined to be unemployed 
by the Bureau of Labor Statistics for December 2009. 
(c) AVAILABILITY OF ALLOCATED AMOUNT.—The amount allo-
cated by the Secretary to each participating State under subsection 
(b) shall be made available to the State as follows: 
(1) ALLOCATED AMOUNT GENERALLY TO BE AVAILABLE TO 
STATE IN ONE-THIRDS.— 
(A) IN GENERAL.—The Secretary shall— 
(i) apportion the participating State’s allocated 
amount into thirds; 
(ii) transfer to the participating State the first 
1⁄3 when the Secretary approves the State for participa-
tion under section 3004; and 
(iii) transfer to the participating State each succes-
sive 1⁄3 when the State has certified to the Secretary 
that it has expended, transferred, or obligated 80 per-
cent of the last transferred 1⁄3 for Federal contributions 
to, or for the account of, State programs. 
(B) AUTHORITY TO WITHHOLD PENDING AUDIT.—The Sec-
retary may withhold the transfer of any successive 1⁄3 
pending results of a financial audit. 
(C) INSPECTOR GENERAL AUDITS.— 
(i) IN
GENERAL.—The Inspector General of the 
Department of the Treasury shall carry out an audit 
of the participating State’s use of allocated Federal 
funds transferred to the State. 
(ii) RECOUPMENT OF MISUSED TRANSFERRED FUNDS 
REQUIRED.—The allocation agreement between the Sec-
retary and the participating State shall provide that 
the Secretary shall recoup any allocated Federal funds 
transferred to the participating State if the results 
of the an audit include a finding that there was an 
intentional or reckless misuse of transferred funds by 
the State. 
(iii) PENALTY
FOR
MISSTATEMENT.—Any partici-
pating State that is found to have intentionally mis-
stated any report issued to the Secretary under the 
Program shall be ineligible to receive any additional 
funds under the Program. Funds that had been allo-
cated or that would otherwise have been allocated to 
Adjustment. 
Determination. 
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124 STAT. 2572 
PUBLIC LAW 111–240—SEPT. 27, 2010 
such participating State shall be paid into the general 
fund of the Treasury for reduction of the public debt. 
(iv) MUNICIPALITIES.—In this subparagraph, the 
term ‘‘participating State’’ shall include a municipality 
given special permission to participate in the Program, 
under section 3004(d). 
(D) EXCEPTION.—The Secretary 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 collat-
eral for a qualifying loan or swap funding facility. 
(2) TRANSFERRED AMOUNTS.—Each amount transferred to 
a participating State under this section shall remain available 
to the State until used by the State as permitted under para-
graph (3). 
(3) USE OF TRANSFERRED FUNDS.—Each participating State 
may use funds transferred to it under this section only— 
(A) for making Federal contributions to, or for the 
account of, an approved State program; 
(B) as collateral for a qualifying loan or swap funding 
facility; 
(C) in the case of the first 1⁄3 transferred, for paying 
administrative costs incurred by the State in implementing 
an approved State program in an amount not to exceed 
5 percent of that first 1⁄3; or 
(D) in the case of each successive 1⁄3 transferred, for 
paying administrative costs incurred by the State in imple-
menting an approved State program in an amount not 
to exceed 3 percent of that successive 1⁄3. 
(4) TERMINATION OF AVAILABILITY OF AMOUNTS NOT TRANS-
FERRED WITHIN 2 YEARS OF PARTICIPATION.—Any portion of a 
participating State’s allocated amount that has not been trans-
ferred to the State under this section by the end of the 2- 
year period beginning on the date that the Secretary approves 
the State for participation 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. 
(5) TRANSFERRED AMOUNTS NOT ASSISTANCE.—The amounts 
transferred to a participating State under this section shall 
not be considered assistance for purposes of subtitle V of title 
31, United States Code. 
(6) DEFINITIONS.—In this section— 
(A) the term ‘‘allocated amount’’ means the total 
amount of Federal funds allocated by the Secretary under 
subsection (b) to the participating State; and 
(B) the term ‘‘1⁄3’’ means— 
(i) in the case of the first 1⁄3 and second 1⁄3, an 
amount equal to 33 percent of a participating State’s 
allocated amount; and 
(ii) in the case of the last 1⁄3, an amount equal 
to 34 percent of a participating State’s allocated 
amount. 
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124 STAT. 2573 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 3004. APPROVING STATES FOR PARTICIPATION. 
(a) APPLICATION.—Any State may apply to the Secretary for 
approval to be a participating State under the Program and to 
be eligible for an allocation of Federal funds under the Program. 
(b) GENERAL APPROVAL CRITERIA.—The Secretary shall approve 
a State to be a participating State, if— 
(1) a specific department, agency, or political subdivision 
of the State has been designated to implement a State program 
and participate in the Program; 
(2) all legal actions necessary to enable such designated 
department, agency, or political subdivision to implement a 
State program and participate in the Program have been accom-
plished; 
(3) the State has filed an application with the Secretary 
for approval of a State capital access program under section 
3005 or approval as a State other credit support program 
under section 3006, in each case within the time period provided 
in the respective section; and 
(4) the State and the Secretary have executed an allocation 
agreement that— 
(A) conforms to the requirements of this title; 
(B) ensures that the State program complies with such 
national standards as are established by the Secretary 
under section 3009(a)(2); 
(C) sets forth internal control, compliance, and 
reporting requirements as established by the Secretary, 
and such other terms and conditions necessary to carry 
out the purposes of this title, including an agreement by 
the State to allow the Secretary to audit State programs; 
(D) requires that the State program be fully positioned, 
within 90 days of the State’s execution of the allocation 
agreement with the Secretary, to act on providing the 
kind of credit support that the State program was estab-
lished to provide; and 
(E) includes an agreement by the State to deliver to 
the Secretary, and update annually, a schedule describing 
how the State intends to apportion among its State pro-
grams the Federal funds allocated to the State. 
(c) CONTRACTUAL ARRANGEMENTS
FOR IMPLEMENTATION
OF 
STATE PROGRAMS.—A State may be approved to be a participating 
State, and be eligible for an allocation of Federal funds under 
the Program, if the State has contractual arrangements for the 
implementation and administration of its State program with— 
(1) an existing, approved State program administered by 
another State; or 
(2) an authorized agent of, or entity supervised by, the 
State, including for-profit and not-for-profit entities. 
(d) SPECIAL PERMISSION.— 
(1) CIRCUMSTANCES
WHEN
A
MUNICIPALITY
MAY
APPLY 
DIRECTLY.—If a State does not, within 60 days after the date 
of enactment of this Act, file with the Secretary a notice of 
its intent to apply for approval by the Secretary of a State 
program or within 9 months after the date of enactment of 
this Act, file with the Secretary a complete application for 
approval of a State program, the Secretary may grant to munici-
palities of that State a special permission that will allow them 
Deadlines. 
Notice. 
Deadline. 
Contracts. 
12 USC 5703. 
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124 STAT. 2574 
PUBLIC LAW 111–240—SEPT. 27, 2010 
to apply directly to the Secretary without the State for approval 
to be participating municipalities. 
(2) TIMING REQUIREMENTS APPLICABLE TO MUNICIPALITIES 
APPLYING DIRECTLY.—To qualify for the special permission, a 
municipality of a State shall be required, within 12 months 
after the date of enactment of this Act, to file with the Secretary 
a complete application for approval by the Secretary of a State 
program. 
(3) NOTICES OF INTENT AND APPLICATIONS FROM MORE THAN 
1 MUNICIPALITY.—A municipality of a State may combine with 
1 or more other municipalities of that State to file a joint 
notice of intent to file and a joint application. 
(4) APPROVAL CRITERIA.—The general approval criteria in 
paragraphs (2) and (4) shall apply. 
(5) ALLOCATION TO MUNICIPALITIES.— 
(A) IF MORE THAN 3.—If more than 3 municipalities, 
or combination of municipalities as provided in paragraph 
(3), of a State apply for approval by the Secretary to be 
participating municipalities under this subsection, and the 
applications meet the approval criteria in paragraph (4), 
the Secretary shall allocate Federal funds to the 3 munici-
palities with the largest populations. 
(B) IF 3 OR FEWER.—If 3 or fewer municipalities, or 
combination of municipalities as provided in paragraph 
(3), of a State apply for approval by the Secretary to be 
participating municipalities under this subsection, and the 
applications meet the approval criteria in paragraph (4), 
the Secretary shall allocate Federal funds to each applicant 
municipality or combination of municipalities. 
(6) APPORTIONMENT OF ALLOCATED AMOUNT AMONG PARTICI-
PATING MUNICIPALITIES.—If the Secretary approves municipali-
ties to be participating municipalities under this subsection, 
the Secretary shall apportion the full amount of the Federal 
funds that are allocated to that State to municipalities that 
are approved under this subsection in amounts proportionate 
to the population of those municipalities, based on the most 
recent available decennial census. 
(7) APPROVING STATE PROGRAMS FOR MUNICIPALITIES.—If 
the Secretary approves municipalities to be participating 
municipalities under this subsection, the Secretary shall take 
into account the additional considerations in section 3006(d) 
in making the determination under section 3005 or 3006 that 
the State program or programs to be implemented by the 
participating municipalities, including a State capital access 
program, is eligible for Federal contributions to, or for the 
account of, the State program. 
SEC. 3005. APPROVING STATE CAPITAL ACCESS PROGRAMS. 
(a) APPLICATION.—A participating State that establishes a new, 
or has an existing, State capital access program that meets the 
eligibility criteria in subsection (c) may apply to Secretary to have 
the State capital access program approved as eligible for Federal 
contributions to the reserve fund. 
(b) APPROVAL.—The Secretary shall approve such State capital 
access program as eligible for Federal contributions to the reserve 
fund if— 
12 USC 5704. 
Applicability. 
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124 STAT. 2575 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(1) within 60 days after the date of enactment of this 
Act, the State has filed with the Secretary a notice of intent 
to apply for approval by the Secretary of a State capital access 
program; 
(2) within 9 months after the date of enactment of this 
Act, the State has filed with the Secretary a complete applica-
tion for approval by the Secretary of a capital access program; 
(3) the State satisfies the requirements of subsections (a) 
and (b) of section 3004; and 
(4) the State capital access program meets the eligibility 
criteria in subsection (c). 
(c) ELIGIBILITY CRITERIA
FOR STATE CAPITAL ACCESS PRO-
GRAMS.—For a State capital access program to be approved under 
this section, that program shall be required to be a program of 
the State that— 
(1) provides portfolio insurance for business loans based 
on a separate loan-loss reserve fund for each financial institu-
tion; 
(2) requires insurance premiums to be paid by the financial 
institution lenders and by the business borrowers to the reserve 
fund to have their loans enrolled in the reserve fund; 
(3) provides for contributions to be made by the State 
to the reserve fund in amounts at least equal to the sum 
of the amount of the insurance premium charges paid by the 
borrower and the financial institution to the reserve fund for 
any newly enrolled loan; and 
(4) provides its portfolio insurance solely for loans that 
meet both the following requirements: 
(A) The borrower has 500 employees or less at the 
time that the loan is enrolled in the Program. 
(B) The loan amount does not exceed $5,000,000. 
(d) FEDERAL CONTRIBUTIONS
TO APPROVED STATE CAPITAL 
ACCESS PROGRAMS.—A State capital access program approved under 
this section will be eligible for receiving Federal contributions to 
the reserve fund in an amount equal to the sum of the amount 
of the insurance premium charges paid by the borrowers and by 
the financial institution to the reserve fund for loans that meet 
the requirements in subsection (c)(4). A participating State may 
use the Federal contribution to make its contribution to the reserve 
fund of an approved State capital access program. 
(e) MINIMUM PROGRAM REQUIREMENTS
FOR STATE CAPITAL 
ACCESS PROGRAMS.—The Secretary shall, by regulation or other 
guidance, prescribe Program requirements that meet the following 
minimum requirements: 
(1) EXPERIENCE
AND
CAPACITY.—The participating State 
shall determine for each financial institution that participates 
in the State capital access program, after consultation with 
the appropriate Federal banking agency or, in the case of 
a financial institution that is a nondepository community 
development financial institution, the Community Development 
Financial Institution Fund, that the financial institution has 
sufficient commercial lending experience and financial and 
managerial capacity to participate in the approved State capital 
access program. The determination by the State shall not be 
reviewable by the Secretary. 
(2) INVESTMENT AUTHORITY.—Subject to applicable State 
law, the participating State may invest, or cause to be invested, 
Determination. 
Regulations. 
Deadline. 
Deadline. 
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124 STAT. 2576 
PUBLIC LAW 111–240—SEPT. 27, 2010 
funds held in a reserve fund by establishing a deposit account 
at the financial institution lender in the name of the partici-
pating State. In the event that funds in the reserve fund 
are not deposited in such an account, such funds shall be 
invested in a form that the participating State determines 
is safe and liquid. 
(3) LOAN TERMS AND CONDITIONS TO BE DETERMINED BY 
AGREEMENT.—A loan to be filed for enrollment in an approved 
State capital access program may be made with such interest 
rate, fees, and other terms and conditions, and the loan may 
be enrolled in the approved State capital access program and 
claims may be filed and paid, as agreed upon by the financial 
institution lender and the borrower, consistent with applicable 
law. 
(4) LENDER CAPITAL AT-RISK.—A loan to be filed for enroll-
ment in the State capital access program shall require the 
financial institution lender to have a meaningful amount of 
its own capital resources at risk in the loan. 
(5) PREMIUM CHARGES MINIMUM AND MAXIMUM AMOUNTS.— 
The insurance premium charges payable to the reserve fund 
by the borrower and the financial institution lender shall be 
prescribed by the financial institution lender, within minimum 
and maximum limits that require that the sum of the insurance 
premium charges paid in connection with a loan by the borrower 
and the financial institution lender may not be less than 2 
percent nor more than 7 percent of the amount of the loan 
enrolled in the approved State capital access program. 
(6) STATE
CONTRIBUTIONS.—In enrolling a loan in an 
approved State capital access program, the participating State 
may make a contribution to the reserve fund to supplement 
Federal contributions made under this Program. 
(7) LOAN PURPOSE.— 
(A) PARTICULAR
LOAN
PURPOSE
REQUIREMENTS
AND 
PROHIBITIONS.—In connection with the filing of a loan for 
enrollment in an approved State capital access program, 
the financial institution lender— 
(i) shall obtain an assurance from each borrower 
that— 
(I) the proceeds of the loan will be used for 
a business purpose; 
(II) the loan will not be used to finance such 
business activities as the Secretary, by regulation, 
may proscribe as prohibited loan purposes for 
enrollment in an approved State capital access 
program; and 
(III) the borrower is not— 
(aa) an executive officer, director, or prin-
cipal shareholder of the financial institution 
lender; 
(bb) a member of the immediate family 
of an executive officer, director, or principal 
shareholder of the financial institution lender; 
or 
(cc) a related interest of any such execu-
tive officer, director, principal shareholder, or 
member of the immediate family; 
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124 STAT. 2577 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(ii) shall provide assurances to the participating 
State that the loan has not been made in order to 
place under the protection of the approved State capital 
access program prior debt that is not covered under 
the approved State capital access program and that 
is or was owed by the borrower to the financial institu-
tion lender or to an affiliate of the financial institution 
lender; 
(iii) shall not allow the enrollment of a loan to 
a borrower that is a refinancing of a loan previously 
made to that borrower by the financial institution 
lender or an affiliate of the financial institution lender; 
and 
(iv) may include additional restrictions on the eligi-
bility of loans or borrowers that are not inconsistent 
with the provisions and purposes of this title, including 
compliance with all applicable Federal and State laws, 
regulations, ordinances, and Executive orders. 
(B) DEFINITIONS.—In this paragraph, the terms ‘‘execu-
tive officer’’, ‘‘director’’, ‘‘principal shareholder’’, ‘‘immediate 
family’’, and ‘‘related interest’’ refer to the same relation-
ship to a financial institution lender as the relationship 
described in part 215 of title 12 of the Code of Federal 
Regulations, or any successor to such part. 
(8) CAPITAL ACCESS FOR SMALL BUSINESSES IN UNDERSERVED 
COMMUNITIES.—At the time that a State applies to the Sec-
retary to have the State capital access program approved as 
eligible for Federal contributions, the State shall deliver to 
the Secretary a report stating how the State plans to use 
the Federal contributions to the reserve fund to provide access 
to capital for small businesses in low- and moderate-income, 
minority, and other underserved communities, including 
women- and minority-owned small businesses. 
SEC. 3006. APPROVING COLLATERAL SUPPORT AND OTHER INNOVA-
TIVE CREDIT ACCESS AND GUARANTEE INITIATIVES FOR 
SMALL BUSINESSES AND MANUFACTURERS. 
(a) APPLICATION.—A participating State that establishes a new, 
or has an existing, credit support program that meets the eligibility 
criteria in subsection (c) may apply to the Secretary to have the 
State other credit support program approved as eligible for Federal 
contributions to, or for the account of, the State program. 
(b) APPROVAL.—The Secretary shall approve such State other 
credit support program as eligible for Federal contributions to, 
or for the account of, the program if— 
(1) the Secretary determines that the State satisfies the 
requirements of paragraphs (1) through (3) of section 3005(b); 
(2) the Secretary determines that the State other credit 
support program meets the eligibility criteria in subsection 
(c); 
(3) the Secretary determines the State other credit support 
program to be eligible based on the additional considerations 
in subsection (d); and 
(4) within 9 months after the date of enactment of this 
Act, the State has filed with Treasury a complete application 
for Treasury approval. 
Deadline. 
12 USC 5705. 
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124 STAT. 2578 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(c) ELIGIBILITY CRITERIA FOR STATE OTHER CREDIT SUPPORT 
PROGRAMS.—For a State other credit support program to be 
approved under this section, that program shall be required to 
be a program of the State that— 
(1) can demonstrate that, at a minimum, $1 of public 
investment by the State program will cause and result in 
$1 of new private credit; 
(2) can demonstrate a reasonable expectation that, when 
considered with all other State programs of the State, such 
State programs together have the ability to use amounts of 
new Federal contributions to, or for the account of, all such 
programs in the State to cause and result in amounts of new 
small business lending at least 10 times the new Federal con-
tribution amount; 
(3) for those State other credit support programs that pro-
vide their credit support through 1 or more financial institution 
lenders, requires the financial institution lenders to have a 
meaningful amount of their own capital resources at risk in 
their small business lending; and 
(4) uses Federal funds allocated under this title to extend 
credit support that— 
(A) targets an average borrower size of 500 employees 
or less; 
(B) does not extend credit support to borrowers that 
have more than 750 employees; 
(C) targets support towards loans with an average 
principal amount of $5,000,000 or less; and 
(D) does not extend credit support to loans that exceed 
a principal amount of $20,000,000. 
(d) ADDITIONAL CONSIDERATIONS.—In making a determination 
that a State other credit support program is eligible for Federal 
contributions to, or for the account of, the State program, the 
Secretary shall take into account the following additional consider-
ations: 
(1) The anticipated benefits to the State, its businesses, 
and its residents to be derived from the Federal contributions 
to, or for the account of, the approved State other credit support 
program, including the extent to which resulting small business 
lending will expand economic opportunities. 
(2) The operational capacity, skills, and experience of the 
management team of the State other credit support program. 
(3) The capacity of the State other credit support program 
to manage increases in the volume of its small business lending. 
(4) The internal accounting and administrative controls 
systems of the State other credit support program, and the 
extent to which they can provide reasonable assurance that 
funds of the State program are safeguarded against waste, 
loss, unauthorized use, or misappropriation. 
(5) The soundness of the program design and implementa-
tion plan of the State other credit support program. 
(e) FEDERAL CONTRIBUTIONS TO APPROVED STATE OTHER CREDIT 
SUPPORT
PROGRAMS.—A State other credit support program 
approved under this section will be eligible for receiving Federal 
contributions to, or for the account of, the State program in an 
amount consistent with the schedule describing the apportionment 
of allocated Federal funds among State programs delivered by the 
State to the Secretary under the allocation agreement. 
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124 STAT. 2579 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(f) MINIMUM
PROGRAM
REQUIREMENTS
FOR
STATE
OTHER 
CREDIT SUPPORT PROGRAMS.— 
(1) FUND TO PRESCRIBE.—The Secretary shall, by regulation 
or other guidance, prescribe Program requirements for approved 
State other credit support programs. 
(2) CONSIDERATIONS FOR FUND.—In prescribing minimum 
Program requirements for approved State other credit support 
programs, the Secretary shall take into consideration, to the 
extent the Secretary determines applicable and appropriate, 
the minimum Program requirements for approved State capital 
access programs in section 3005(e). 
SEC. 3007. REPORTS. 
(a) QUARTERLY USE-OF-FUNDS REPORT.— 
(1) IN GENERAL.—Not later than 30 days after the beginning 
of each calendar quarter, beginning after the first full calendar 
quarter to occur after the date the Secretary approves a State 
for participation, the participating State shall submit to the 
Secretary a report on the use of Federal funding by the partici-
pating State during the previous calendar quarter. 
(2) REPORT CONTENTS.—Each report under this subsection 
shall— 
(A) indicate the total amount of Federal funding used 
by the participating State; and 
(B) include a certification by the participating State 
that— 
(i) the information provided in accordance with 
subparagraph (A) is accurate; 
(ii) funds continue to be available and legally com-
mitted to contributions by the State to, or for the 
account of, approved State programs, less any amount 
that has been contributed by the State to, or for the 
account of, approved State programs subsequent to 
the State being approved for participation in the Pro-
gram; and 
(iii) the participating State is implementing its 
approved State program or programs in accordance 
with this title and regulations issued under section 
3010. 
(b) ANNUAL REPORT.—Not later than March 31 of each year, 
beginning March 31, 2011, each participating State shall submit 
to the Secretary an annual report that shall include the following 
information: 
(1) The number of borrowers that received new loans origi-
nated under the approved State program or programs after 
the State program was approved as eligible for Federal con-
tributions. 
(2) The total amount of such new loans. 
(3) Breakdowns by industry type, loan size, annual sales, 
and number of employees of the borrowers that received such 
new loans. 
(4) The zip code of each borrower that received such a 
new loan. 
(5) Such other data as the Secretary, in the Secretary’s 
sole discretion, may require to carry out the purposes of the 
Program. 
Effective date. 
12 USC 5706. 
Regulations. 
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124 STAT. 2580 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(c) FORM.—The reports and data filed under subsections (a) 
and (b) shall be in such form as the Secretary, in the Secretary’s 
sole discretion, may require. 
(d) TERMINATION OF REPORTING REQUIREMENTS.—The require-
ment to submit reports under subsections (a) and (b) shall terminate 
for a participating State with the submission of the completed 
reports due on the first March 31 to occur after 5 complete 12- 
month periods after the State is approved by the Secretary to 
be a participating State. 
SEC. 3008. REMEDIES FOR STATE PROGRAM TERMINATION OR FAIL-
URES. 
(a) REMEDIES.— 
(1) IN GENERAL.—If any of the events listed in paragraph 
(2) occur, the Secretary, in the Secretary’s discretion, may— 
(A) reduce the amount of Federal funds allocated to 
the State under the Program; or 
(B) terminate any further transfers of allocated 
amounts that have not yet been transferred to the State. 
(2) CAUSAL EVENTS.—The events referred to in paragraph 
(1) are— 
(A) termination by a participating State of its participa-
tion in the Program; 
(B) failure on the part of a participating State to submit 
complete reports under section 3007 on a timely basis; 
or 
(C) noncompliance by the State with the terms of the 
allocation agreement between the Secretary and the State. 
(b) DEALLOCATED AMOUNTS TO BE REALLOCATED.—If, after 13 
months, any portion of the amount of Federal funds allocated to 
a participating State is deemed by the Secretary to be no longer 
allocated to the State after actions taken by the Secretary under 
subsection (a)(1), the Secretary shall reallocate that portion among 
the participating States, excluding the State whose allocated funds 
were deemed to be no longer allocated, as provided in section 
3003(b). 
SEC. 3009. IMPLEMENTATION AND ADMINISTRATION. 
(a) GENERAL AUTHORITIES AND DUTIES.—The Secretary shall— 
(1) consult with the Administrator of the Small Business 
Administration and the appropriate Federal banking agencies 
on the administration of the Program; 
(2) establish minimum national standards for approved 
State programs; 
(3) provide technical assistance to States for starting State 
programs and generally disseminate best practices; 
(4) manage, administer, and perform necessary program 
integrity functions for the Program; and 
(5) ensure adequate oversight of the approved State pro-
grams, including oversight of the cash flows, performance, and 
compliance of each approved State program. 
(b) APPROPRIATIONS.—There is hereby appropriated to the Sec-
retary, out of funds in the Treasury not otherwise appropriated, 
$1,500,000,000 to carry out the Program, including to pay reason-
able costs of administering the Program. 
Standards. 
Consultation. 
12 USC 5708. 
Time period. 
12 USC 5707. 
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124 STAT. 2581 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(c) TERMINATION
OF SECRETARY’S PROGRAM ADMINISTRATION 
FUNCTIONS.—The authorities and duties of the Secretary to imple-
ment and administer the Program shall terminate at the end of 
the 7-year period beginning on the date of enactment of this Act. 
(d) EXPEDITED CONTRACTING.—During the 1-year period begin-
ning on the date of enactment of this Act, the Secretary may 
enter into contracts without regard to any other provision of law 
regarding public contracts, for purposes of carrying out this title. 
SEC. 3010. REGULATIONS. 
The Secretary, in consultation with the Administrator of the 
Small Business Administration, shall issue such regulations and 
other guidance as the Secretary determines necessary or appro-
priate to implement this title including to define terms, to establish 
compliance and reporting requirements, and such other terms and 
conditions necessary to carry out the purposes of this title. 
SEC. 3011. OVERSIGHT AND AUDITS. 
(a) INSPECTOR GENERAL OVERSIGHT.—The Inspector General 
of the Department of the Treasury shall conduct, supervise, and 
coordinate audits and investigations of the use of funds made avail-
able under the Program. 
(b) GAO AUDIT.—The Comptroller General of the United States 
shall perform an annual audit of the Program and issue a report 
to the appropriate committees of Congress containing the results 
of such audit. 
(c) REQUIRED CERTIFICATION.— 
(1) FINANCIAL INSTITUTIONS CERTIFICATION.—With respect 
to funds received by a participating State under the Program, 
any financial institution that receives a loan, a loan guarantee, 
or other financial assistance using such funds after the date 
of the enactment of this Act shall certify that such institution 
is in compliance with the requirements of section 103.121 of 
title 31, Code of Federal Regulations, a regulation that, at 
a minimum, requires financial institutions, as that term is 
defined in section 5312 (a)(2) and (c)(1)(A) of title 31, United 
States Code, to implement reasonable procedures to verify the 
identity of any person seeking to open an account, to the 
extent reasonable and practicable, maintain records of the 
information used to verify the person’s identity, and determine 
whether the person appears on any lists of known or suspected 
terrorists or terrorist organizations provided to the financial 
institution by any government agency. 
(2) SEX OFFENSE CERTIFICATION.—With respect to funds 
received by a participating State under the Program, any pri-
vate entity that receives a loan, a loan guarantee, or other 
financial assistance using such funds after the date of the 
enactment of this Act shall certify to the participating State 
that the principals of such entity have not been convicted 
of a sex offense against a minor (as such terms are defined 
in section 111 of the Sex Offender Registration and Notification 
Act (42 U.S.C. 16911)). 
(d) PROHIBITION ON PORNOGRAPHY.—None of the funds made 
available under this title may be used to pay the salary of any 
individual engaged in activities related to the Program who has 
been officially disciplined for violations of subpart G of the Stand-
ards of Ethical Conduct for Employees of the Executive Branch 
for viewing, downloading, or exchanging pornography, including 
12 USC 5710. 
12 USC 5709. 
Time period. 
Time period. 
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124 STAT. 2582 
PUBLIC LAW 111–240—SEPT. 27, 2010 
child pornography, on a Federal Government computer or while 
performing official Federal Government duties. 
TITLE IV—ADDITIONAL SMALL 
BUSINESS PROVISIONS 
Subtitle A—Small Business Lending Fund 
SEC. 4101. PURPOSE. 
The purpose of this subtitle is to address the ongoing effects 
of the financial crisis on small businesses by providing temporary 
authority to the Secretary of the Treasury to make capital invest-
ments in eligible institutions in order to increase the availability 
of credit for small businesses. 
SEC. 4102. DEFINITIONS. 
For purposes of this subtitle: 
(1) APPROPRIATE
COMMITTEES
OF
CONGRESS.—The term 
‘‘appropriate committees of Congress’’ means— 
(A) 
the 
Committee 
on 
Small 
Business 
and 
Entrepreneurship, the Committee on Agriculture, Nutri-
tion, and Forestry, the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Finance, the Com-
mittee on the Budget, and the Committee on Appropria-
tions of the Senate; and 
(B) the Committee on Small Business, the Committee 
on Agriculture, the Committee on Financial Services, the 
Committee on Ways and Means, the Committee on the 
Budget, and the Committee on Appropriations of the House 
of Representatives. 
(2) APPROPRIATE
FEDERAL
BANKING
AGENCY.—The term 
‘‘appropriate Federal banking agency’’ has the meaning given 
such term under section 3(q) of the Federal Deposit Insurance 
Act (12 U.S.C. 1813(q)). 
(3) BANK HOLDING COMPANY.—The term ‘‘bank holding com-
pany’’ has the meaning given such term under section 2(a)(1) 
of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(2)(a)(1)). 
(4) CALL REPORT.—The term ‘‘call report’’ means— 
(A) reports of Condition and Income submitted to the 
Office of the Comptroller of the Currency, the Board of 
Governors of the Federal Reserve System, and the Federal 
Deposit Insurance Corporation; 
(B) the Office of Thrift Supervision Thrift Financial 
Report; 
(C) any report that is designated by the Office of the 
Comptroller of the Currency, the Board of Governors of 
the Federal Reserve System, the Federal Deposit Insurance 
Corporation, or the Office of Thrift Supervision, as 
applicable, as a successor to any report referred to in 
subparagraph (A) or (B); 
(D) reports of Condition and Income as designated 
through guidance developed by the Secretary, in consulta-
tion with the Director of the Community Development 
Financial Institutions Fund; and 
12 USC 4741 
note. 
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124 STAT. 2583 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(E) with respect to an eligible institution for which 
no report exists that is described under subparagraph (A), 
(B), (C), or (D), such other report or set of information 
as the Secretary, in consultation with the Administrator 
of the Small Business Administration, may prescribe. 
(5) CDCI.—The term ‘‘CDCI’’ means the Community 
Development Capital Initiative created by the Secretary under 
the Troubled Asset Relief Program established by the Emer-
gency Economic Stabilization Act of 2008. 
(6) CDCI INVESTMENT.—The term ‘‘CDCI investment’’ 
means, with respect to any eligible institution, the principal 
amount of any investment made by the Secretary in such 
eligible institution under the CDCI that has not been repaid. 
(7) CDFI; COMMUNITY DEVELOPMENT FINANCIAL INSTITU-
TION.—The terms ‘‘CDFI’’ and ‘‘community development finan-
cial institution’’ have the meaning given the term ‘‘community 
development financial institution’’ under the Riegle Community 
Development and Regulatory Improvement Act of 1994. 
(8) CDLF; COMMUNITY
DEVELOPMENT
LOAN
FUND.—The 
terms ‘‘CDLF’’ and ‘‘community development loan fund’’ mean 
any entity that— 
(A) is certified by the Department of the Treasury 
as a community development financial institution loan 
fund; 
(B) is exempt from taxation under the Internal Rev-
enue Code of 1986; and 
(C) had assets less than or equal to $10,000,000,000 
as of the end of the fourth quarter of calendar year 2009. 
(9) CPP.—The term ‘‘CPP’’ means the Capital Purchase 
Program created by the Secretary under the Troubled Asset 
Relief Program established by the Emergency Economic Sta-
bilization Act of 2008. 
(10) CPP 
INVESTMENT.—The term ‘‘CPP investment’’ 
means, with respect to any eligible institution, the principal 
amount of any investment made by the Secretary in such 
eligible institution under the CPP that has not been repaid. 
(11) ELIGIBLE INSTITUTION.—The term ‘‘eligible institution’’ 
means— 
(A) any insured depository institution, which— 
(i) is not controlled by a bank holding company 
or savings and loan holding company that is also an 
eligible institution; 
(ii) has total assets of equal to or less than 
$10,000,000,000, as reported in the call report of the 
insured depository institution as of the end of the 
fourth quarter of calendar year 2009; and 
(iii) is not directly or indirectly controlled by any 
company or other entity that has total consolidated 
assets of more than $10,000,000,000, as so reported; 
(B) any bank holding company which has total consoli-
dated assets of equal to or less than $10,000,000,000, as 
reported in the call report of the bank holding company 
as of the end of the fourth quarter of calendar year 2009; 
(C) any savings and loan holding company which has 
total consolidated assets of equal to or less than 
$10,000,000,000, as reported in the call report of the 
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124 STAT. 2584 
PUBLIC LAW 111–240—SEPT. 27, 2010 
savings and loan holding company as of the end of the 
fourth quarter of calendar year 2009; and 
(D) any community development financial institution 
loan fund which has total assets of equal to or less than 
$10,000,000,000, as reported in audited financial state-
ments for the fiscal year of the community development 
financial institution loan fund that ends in calendar year 
2009. 
(12) FUND.—The term ‘‘Fund’’ means the Small Business 
Lending Fund established under section 4103(a)(1). 
(13) INSURED DEPOSITORY INSTITUTION.—The term ‘‘insured 
depository institution’’ has the meaning given such term under 
section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1813(c)(2)). 
(14) MINORITY-OWNED AND WOMEN-OWNED BUSINESS.—The 
terms ‘‘minority-owned business’’ and ‘‘women-owned business’’ 
shall have the meaning given the terms ‘‘minority-owned busi-
ness’’ and ‘‘women’s business’’, respectively, under section 
21A(r)(4) of the Federal Home Loan Bank Act (12 U.S.C. 
1441A(r)(4)). 
(15) PROGRAM.—The term ‘‘Program’’ means the Small 
Business Lending Fund Program authorized under section 
4103(a)(2). 
(16) SAVINGS
AND
LOAN
HOLDING
COMPANY.—The term 
‘‘savings and loan holding company’’ has the meaning given 
such term under section 10(a)(1)(D) of the Home Owners’ Loan 
Act (12 U.S.C. 1467a(a)(1)(D)). 
(17) SECRETARY.—The term ‘‘Secretary’’ means the Sec-
retary of the Treasury. 
(18) SMALL BUSINESS LENDING.— 
(A) IN GENERAL.—The term ‘‘small business lending’’ 
means lending, as defined by and reported in an eligible 
institutions’ quarterly call report, where each loan com-
prising such lending is one of the following types: 
(i) Commercial and industrial loans. 
(ii) Owner-occupied nonfarm, nonresidential real 
estate loans. 
(iii) Loans to finance agricultural production and 
other loans to farmers. 
(iv) Loans secured by farmland. 
(B) EXCLUSION.—No loan that has an original amount 
greater than $10,000,000 or that goes to a business with 
more than $50,000,000 in revenues shall be included in 
the measure. 
(C) TREATMENT OF HOLDING COMPANIES.—In the case 
of eligible institutions that are bank holding companies 
or savings and loan holding companies having one or more 
insured depository institution subsidiaries, small business 
lending shall be measured based on the combined small 
business lending reported in the call report of the insured 
depository institution subsidiaries. 
(19) VETERAN-OWNED BUSINESS.— 
(A) The term ‘‘veteran-owned business’’ means a busi-
ness— 
(i) more than 50 percent of the ownership or control 
of which is held by 1 or more veterans; 
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124 STAT. 2585 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(ii) more than 50 percent of the net profit or loss 
of which accrues to 1 or more veterans; and 
(iii) a significant percentage of senior management 
positions of which are held by veterans. 
(B) For purposes of this paragraph, the term ‘‘veteran’’ 
has the meaning given such term in section 101(2) of 
title 38, United States Code. 
SEC. 4103. SMALL BUSINESS LENDING FUND. 
(a) FUND AND PROGRAM.— 
(1) FUND
ESTABLISHED.—There is established in the 
Treasury of the United States a fund to be known as the 
‘‘Small Business Lending Fund’’, which shall be administered 
by the Secretary. 
(2) PROGRAMS AUTHORIZED.—The Secretary is authorized 
to establish the Small Business Lending Fund Program for 
using the Fund consistent with this subtitle. 
(b) USE OF FUND.— 
(1) IN GENERAL.—Subject to paragraph (2), the Fund shall 
be available to the Secretary, without further appropriation 
or fiscal year limitation, for the costs of purchases (including 
commitments to purchase), and modifications of such purchases, 
of preferred stock and other financial instruments from eligible 
institutions on such terms and conditions as are determined 
by the Secretary in accordance with this subtitle. For purposes 
of this paragraph and with respect to an eligible institution, 
the term ‘‘other financial instruments’’ shall include only debt 
instruments for which such eligible institution is fully liable 
or equity equivalent capital of the eligible institution. Such 
debt instruments may be subordinated to the claims of other 
creditors of the eligible institution. 
(2) MAXIMUM PURCHASE LIMIT.—The aggregate amount of 
purchases (and commitments to purchase) made pursuant to 
paragraph (1) may not exceed $30,000,000,000. 
(3) PROCEEDS USED TO PAY DOWN PUBLIC DEBT.—All funds 
received by the Secretary in connection with purchases made 
pursuant to paragraph (1), including interest payments, divi-
dend payments, and proceeds from the sale of any financial 
instrument, shall be paid into the general fund of the Treasury 
for reduction of the public debt. 
(4) LIMITATION ON PURCHASES FROM CDLFS.— 
(A) IN GENERAL.—Not more than 1 percent of the max-
imum purchase limit of the Program, pursuant to para-
graph (2), may be used to make purchases from community 
development loan funds. 
(B) ELIGIBILITY
STANDARDS.—The Secretary, in con-
sultation with the Community Development Financial 
Institutions Fund, shall develop eligibility criteria to deter-
mine the financial ability of a CDLF to participate in 
the Program and repay the investment. Such criteria shall 
include the following: 
(i) Ratio of net assets to total assets is at least 
20 percent. 
(ii) Ratio of loan loss reserves to loans and leases 
90 days or more delinquent (including loans sold with 
full recourse) is at least 30 percent. 
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124 STAT. 2586 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(iii) Positive net income measured on a 3-year 
rolling average. 
(iv) Operating liquidity ratio of at least 1.0 for 
the 4 most recent quarters and for one or both of 
the two preceding years. 
(v) Ratio of loans and leases 90 days or more 
delinquent (including loans sold with full recourse) 
to total equity plus loan loss reserves is less than 
40 percent. 
(C) REQUIREMENT
TO
SUBMIT
AUDITED
FINANCIAL 
STATEMENTS.—CDLFs participating in the Program shall 
submit audited financial statements to the Secretary, have 
a clean audit opinion, and have at least 3 years of operating 
experience. 
(c) CREDITS
TO
THE FUND.—There shall be credited to the 
Fund amounts made available pursuant to section 4108, to the 
extent provided by appropriations Acts. 
(d) TERMS.— 
(1) APPLICATION.— 
(A) INSTITUTIONS
WITH
ASSETS
OF
$1,000,000,000
OR 
LESS.—Eligible institutions having total assets equal to 
or less than $1,000,000,000, as reported in a call report 
as of the end of the fourth quarter of calendar year 2009, 
may apply to receive a capital investment from the Fund 
in an amount not exceeding 5 percent of risk-weighted 
assets, as reported in the call report immediately preceding 
the date of application, less the amount of any CDCI invest-
ment and any CPP investment. 
(B) 
INSTITUTIONS
WITH
ASSETS
OF
MORE
THAN 
$1,000,000,000 AND LESS THAN OR EQUAL TO $10,000,000,000.— 
Eligible institutions having total assets of more than 
$1,000,000,000 but less than $10,000,000,000, as of the 
end of the fourth quarter of calendar year 2009, may apply 
to receive a capital investment from the Fund in an amount 
not exceeding 3 percent of risk-weighted assets, as reported 
in the call report immediately preceding the date of applica-
tion, less the amount of any CDCI investment and any 
CPP investment. 
(C) TREATMENT OF HOLDING COMPANIES.—In the case 
of an eligible institution that is a bank holding company 
or a savings and loan holding company having one or 
more insured depository institution subsidiaries, total 
assets shall be measured based on the combined total assets 
reported in the call report of the insured depository institu-
tion subsidiaries as of the end of the fourth quarter of 
calendar year 2009 and risk-weighted assets shall be meas-
ured based on the combined risk-weighted assets of the 
insured depository institution subsidiaries as reported in 
the call report immediately preceding the date of applica-
tion. 
(D) TREATMENT OF APPLICANTS THAT ARE INSTITUTIONS 
CONTROLLED BY HOLDING COMPANIES.—If an eligible institu-
tion that applies to receive a capital investment under 
the Program is under the control of a bank holding company 
or a savings and loan holding company, then the Secretary 
may use the Fund to purchase preferred stock or other 
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124 STAT. 2587 
PUBLIC LAW 111–240—SEPT. 27, 2010 
financial instruments from the top-tier bank holding com-
pany or savings and loan holding company of such eligible 
institution, as applicable. For purposes of this subpara-
graph, the term ‘‘control’’ with respect to a bank holding 
company shall have the same meaning as in section 2(a)(2) 
of the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(2)(a)(2)). For purposes of this subparagraph, the term 
‘‘control’’ with respect to a savings and loan holding com-
pany shall have the same meaning as in 10(a)(2) of the 
Home Owners’ Loan Act (12 U.S.C. 1467a(a)(2)). 
(E) REQUIREMENT
TO
PROVIDE
A
SMALL
BUSINESS 
LENDING
PLAN.—At the time that an applicant submits 
an application to the Secretary for a capital investment 
under the Program, the applicant shall deliver to the appro-
priate Federal banking agency, and, for applicants that 
are State-chartered banks, to the appropriate State banking 
regulator, a small business lending plan describing how 
the applicant’s business strategy and operating goals will 
allow it to address the needs of small businesses in the 
areas it serves, as well as a plan to provide linguistically 
and culturally appropriate outreach, where appropriate. 
In the case of eligible institutions that are community 
development loan funds, this plan shall be submitted to 
the Secretary. This plan shall be confidential supervisory 
information. 
(F) TREATMENT OF APPLICANTS THAT ARE COMMUNITY 
DEVELOPMENT LOAN FUNDS.—Eligible institutions that are 
community development loan funds may apply to receive 
a capital investment from the Fund in an amount not 
exceeding 5 percent of total assets, as reported in the 
audited financial statements for the fiscal year of the 
eligible institution that ends in calendar year 2009. 
(2) CONSULTATION
WITH
REGULATORS.—For each eligible 
institution that applies to receive a capital investment under 
the Program, the Secretary shall— 
(A) consult with the appropriate Federal banking 
agency or, in the case of an eligible institution that is 
a nondepository community development financial institu-
tion, the Community Development Financial Institution 
Fund, for the eligible institution, to determine whether 
the eligible institution may receive such capital investment; 
(B) in the case of an eligible institution that is a 
State-chartered bank, consider any views received from 
the State banking regulator of the State of the eligible 
institution regarding the financial condition of the eligible 
institution; and 
(C) in the case of a community development financial 
institution loan fund, consult with the Community Develop-
ment Financial Institution Fund. 
(3) CONSIDERATION OF MATCHED PRIVATE INVESTMENTS.— 
(A) IN
GENERAL.—For an eligible institution that 
applies to receive a capital investment under the Program, 
if the entity to be consulted under paragraph (2) would 
not otherwise recommend the eligible institution to receive 
the capital investment, the Secretary, in consultation with 
the entity to be so consulted, may consider whether the 
Confidentiality. 
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124 STAT. 2588 
PUBLIC LAW 111–240—SEPT. 27, 2010 
entity to be consulted would recommend the eligible institu-
tion to receive a capital investment based on the financial 
condition of the institution if the conditions in subpara-
graph (B) are satisfied. 
(B) 
CONDITIONS.—The 
conditions 
referred 
to 
in 
subparagraph (A) are as follows: 
(i) CAPITAL SOURCES.—The eligible institution shall 
receive capital both under the Program and from pri-
vate, nongovernment investors. 
(ii) AMOUNT OF CAPITAL.—The amount of capital 
to be received under the Program shall not exceed 
3 percent of risk-weighted assets, as reported in the 
call report immediately preceding the date of applica-
tion, less the amount of any CDCI investment and 
any CPP investment. 
(iii) TERMS.—The amount of capital to be received 
from private, nongovernment investors shall be— 
(I) equal to or greater than 100 percent of 
the capital to be received under the Program; and 
(II) subordinate to the capital investment 
made by the Secretary under the Program. 
(4) INELIGIBILITY OF INSTITUTIONS ON FDIC PROBLEM BANK 
LIST.— 
(A) IN
GENERAL.—An eligible institution may not 
receive any capital investment under the Program, if— 
(i) such institution is on the FDIC problem bank 
list; or 
(ii) such institution has been removed from the 
FDIC problem bank list for less than 90 days. 
(B) CONSTRUCTION.—Nothing in subparagraph (A) 
shall be construed as limiting the discretion of the Sec-
retary to deny the application of an eligible institution 
that is not on the FDIC problem bank list. 
(C) FDIC PROBLEM BANK LIST DEFINED.—For purposes 
of this paragraph, the term ‘‘FDIC problem bank list’’ 
means the list of depository institutions having a current 
rating of 4 or 5 under the Uniform Financial Institutions 
Rating System, or such other list designated by the Federal 
Deposit Insurance Corporation. 
(5) INCENTIVES TO LEND.— 
(A) REQUIREMENTS ON PREFERRED STOCK AND OTHER 
FINANCIAL
INSTRUMENTS.—Any preferred stock or other 
financial instrument issued to Treasury by an eligible 
institution receiving a capital investment under the Pro-
gram shall provide that— 
(i) the rate at which dividends or interest are 
payable shall be 5 percent per annum initially; 
(ii) within the first 2 years after the date of the 
capital investment under the Program, the rate may 
be adjusted based on the amount of an eligible institu-
tion’s small business lending. Changes in the amount 
of small business lending shall be measured against 
the average amount of small business lending reported 
by the eligible institution in its call reports for the 
4 full quarters immediately preceding the date of enact-
ment of this Act, minus adjustments from each quar-
terly balance in respect of— 
Time period. 
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124 STAT. 2589 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(I) net loan charge offs with respect to small 
business lending; and 
(II) gains realized by the eligible institution 
resulting from mergers, acquisitions or purchases 
of loans after origination and syndication; which 
adjustments shall be determined in accordance 
with guidance promulgated by the Secretary; and 
(iii) during any calendar quarter during the initial 
2-year period referred to in clause (ii), an institution’s 
rate shall be adjusted to reflect the following schedule, 
based on that institution’s change in the amount of 
small business lending relative to the baseline— 
(I) if the amount of small business lending 
has increased by less than 2.5 percent, the divi-
dend or interest rate shall be 5 percent; 
(II) if the amount of small business lending 
has increased by 2.5 percent or greater, but by 
less than 5.0 percent, the dividend or interest rate 
shall be 4 percent; 
(III) if the amount of small business lending 
has increased by 5.0 percent or greater, but by 
less than 7.5 percent, the dividend or interest rate 
shall be 3 percent; 
(IV) if the amount of small business lending 
has increased by 7.5 percent or greater, and but 
by less than 10.0 percent, the dividend or interest 
rate shall be 2 percent; or 
(V) if the amount of small business lending 
has increased by 10 percent or greater, the divi-
dend or interest rate shall be 1 percent. 
(B) BASIS OF INITIAL RATE.—The initial dividend or 
interest rate shall be based on call report data published 
in the quarter immediately preceding the date of the capital 
investment under the Program. 
(C) TIMING OF RATE ADJUSTMENTS.—Any rate adjust-
ment shall occur in the calendar quarter following the 
publication of call report data, such that the rate based 
on call report data from any one calendar quarter, which 
is published in the first following calendar quarter, shall 
be adjusted in that first following calendar quarter and 
payable in the second following quarter. 
(D) RATE
FOLLOWING
INITIAL
2-YEAR
PERIOD.—Gen-
erally, the rate based on call report data from the eighth 
calendar quarter after the date of the capital investment 
under the Program shall be payable until the expiration 
of the 41⁄2-year period that begins on the date of the invest-
ment. In the case where the amount of small business 
lending has remained the same or decreased relative to 
the institution’s baseline in the eighth quarter after the 
date of the capital investment under the Program, the 
rate shall be 7 percent until the expiration of the 41⁄2- 
year period that begins on the date of the investment. 
(E) RATE FOLLOWING INITIAL 41⁄2 -YEAR PERIOD.—The 
dividend or interest rate paid on any preferred stock or 
other financial instrument issued by an eligible institution 
that receives a capital investment under the Program shall 
increase to 9 percent at the end of the 41⁄2-year period 
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124 STAT. 2590 
PUBLIC LAW 111–240—SEPT. 27, 2010 
that begins on the date of the capital investment under 
the Program. 
(F) LIMITATION
ON
RATE
REDUCTIONS
WITH
RESPECT 
TO CERTAIN AMOUNT.—The reduction in the dividend or 
interest rate payable to Treasury by any eligible institution 
shall be limited such that the rate reduction shall not 
apply to a dollar amount of the investment made by 
Treasury that is greater than the dollar amount increase 
in the amount of small business lending realized under 
this program. The Secretary may issue guidelines that 
will apply to new capital investments limiting the amount 
of capital available to eligible institutions consistent with 
this limitation. 
(G) RATE ADJUSTMENTS FOR S CORPORATION.—Before 
making a capital investment in an eligible institution that 
is an S corporation or a corporation organized on a mutual 
basis, the Secretary may adjust the dividend or interest 
rate on the financial instrument to be issued to the Sec-
retary, from the dividend or interest rate that would apply 
under subparagraphs (A) through (F), to take into account 
any differential tax treatment of securities issued by such 
eligible institution. For purpose of this subparagraph, the 
term ‘‘S corporation’’ has the same meaning as in section 
1361(a) of the Internal Revenue Code of 1986. 
(H) REPAYMENT
DEADLINE.—The capital investment 
received by an eligible institution under the Program shall 
be evidenced by preferred stock or other financial 
instrument that— 
(i) includes, as a term and condition, that the 
capital investment will— 
(I) be repaid not later than the end of the 
10-year period beginning on the date of the capital 
investment under the Program; or 
(II) at the end of such 10-year period, be sub-
ject to such additional terms as the Secretary shall 
prescribe, which shall include a requirement that 
the stock or instrument shall carry the highest 
dividend or interest rate payable; and 
(ii) provides that the term and condition described 
under clause (i) shall not apply if the application of 
that term and condition would adversely affect the 
capital treatment of the stock or financial instrument 
under current or successor applicable capital provisions 
compared to a capital instrument with identical terms 
other than the term and condition described under 
clause (i). 
(I) REQUIREMENTS ON FINANCIAL INSTRUMENTS ISSUED 
BY
A
COMMUNITY
DEVELOPMENT
FINANCIAL
INSTITUTION 
LOAN FUND.—Any equity equivalent capital issued to the 
Treasury by a community development loan fund receiving 
a capital investment under the Program shall provide that 
the rate at which interest is payable shall be 2 percent 
per annum for 8 years. After 8 years, the rate at which 
interest is payable shall be 9 percent. 
Terms. 
Applicability. 
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124 STAT. 2591 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(6) ADDITIONAL INCENTIVES TO REPAY.—The Secretary may, 
by regulation or guidance issued under section 4104(9), estab-
lish repayment incentives in addition to the incentive in para-
graph (5)(E) that will apply to new capital investments in 
a manner that the Secretary determines to be consistent with 
the purposes of this subtitle. 
(7) CAPITAL PURCHASE PROGRAM REFINANCE.— 
(A) IN GENERAL.—The Secretary shall, in a manner 
that the Secretary determines to be consistent with the 
purposes of this subtitle, issue regulations and other guid-
ance to permit eligible institutions to refinance securities 
issued to Treasury under the CDCI and the CPP for securi-
ties to be issued under the Program. 
(B) PROHIBITION ON PARTICIPATION BY NON-PAYING CPP 
PARTICIPANTS.—Subparagraph (A) shall not apply to any 
eligible institution that has missed more than one dividend 
payment due under the CPP. For purposes of this subpara-
graph, a CPP dividend payment that is submitted within 
60 days of the due date of such payment shall not be 
considered a missed dividend payment. 
(8) OUTREACH TO MINORITIES, WOMEN, AND VETERANS.— 
The Secretary shall require eligible institutions receiving cap-
ital investments under the Program to provide linguistically 
and culturally appropriate outreach and advertising in the 
applicant pool describing the availability and application 
process of receiving loans from the eligible institution that 
are made possible by the Program through the use of print, 
radio, television or electronic media outlets which target 
organizations, trade associations, and individuals that— 
(A) represent or work within or are members of 
minority communities; 
(B) represent or work with or are women; and 
(C) represent or work with or are veterans. 
(9) ADDITIONAL TERMS.—The Secretary may, by regulation 
or guidance issued under section 4104(9), make modifications 
that will apply to new capital investments in order to manage 
risks associated with the administration of the Fund in a 
manner consistent with the purposes of this subtitle. 
(10) MINIMUM
UNDERWRITING
STANDARDS.—The appro-
priate Federal banking agency for an eligible institution that 
receives funds under the Program shall within 60 days issue 
guidance regarding prudent underwriting standards that must 
be used for loans made by the eligible institution using such 
funds. 
SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY. 
The Secretary may take such actions as the Secretary deems 
necessary to carry out the authorities in this subtitle, including, 
without limitation, the following: 
(1) The Secretary may use the services of any agency 
or instrumentality of the United States or component thereof 
on a reimbursable basis, and any such agency or instrumen-
tality or component thereof is authorized to provide services 
as requested by the Secretary using all authorities vested in 
or delegated to that agency, instrumentality, or component. 
Deadline. 
Requirements. 
Deadline. 
Regulations. 
Applicability. 
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124 STAT. 2592 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(2) The Secretary may enter into contracts, including con-
tracts for services authorized by section 3109 of title 5, United 
States Code. 
(3) The Secretary may designate any bank, savings associa-
tion, trust company, security broker or dealer, asset manager, 
or investment adviser as a financial agent of the Federal 
Government and such institution shall perform all such reason-
able duties related to this subtitle as financial agent of the 
Federal Government as may be required. The Secretary shall 
have authority to amend existing agreements with financial 
agents, entered into during the 2-year period before the date 
of enactment of this Act, to perform reasonable duties related 
to this subtitle. 
(4) The Secretary may exercise any rights received in 
connection with any preferred stock or other financial 
instruments or assets purchased or acquired pursuant to the 
authorities granted under this subtitle. 
(5) Subject to section 4103(b)(3), the Secretary may manage 
any assets purchased under this subtitle, including revenues 
and portfolio risks therefrom. 
(6) The Secretary may sell, dispose of, transfer, exchange 
or enter into securities loans, repurchase transactions, or other 
financial transactions in regard to, any preferred stock or other 
financial instrument or asset purchased or acquired under this 
subtitle, upon terms and conditions and at a price determined 
by the Secretary. 
(7) The Secretary may manage or prohibit conflicts of 
interest that may arise in connection with the administration 
and execution of the authorities provided under this subtitle. 
(8) The Secretary may establish and use vehicles, subject 
to supervision by the Secretary, to purchase, hold, and sell 
preferred stock or other financial instruments and issue obliga-
tions. 
(9) The Secretary may, in consultation with the Adminis-
trator of the Small Business Administration, issue such regula-
tions and other guidance as may be necessary or appropriate 
to define terms or carry out the authorities or purposes of 
this subtitle. 
SEC. 4105. CONSIDERATIONS. 
In exercising the authorities granted in this subtitle, the Sec-
retary shall take into consideration— 
(1) increasing the availability of credit for small businesses; 
(2) providing funding to minority-owned eligible institutions 
and other eligible institutions that serve small businesses that 
are minority-, veteran-, and women-owned and that also serve 
low- and moderate-income, minority, and other underserved 
or rural communities; 
(3) protecting and increasing American jobs; 
(4) increasing the opportunity for small business develop-
ment in areas with high unemployment rates that exceed the 
national average; 
(5) ensuring that all eligible institutions may apply to 
participate in the program established under this subtitle, with-
out discrimination based on geography; 
(6) providing transparency with respect to use of funds 
provided under this subtitle; 
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124 STAT. 2593 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(7) minimizing the cost to taxpayers of exercising the 
authorities; 
(8) promoting and engaging in financial education to would- 
be borrowers; and 
(9) providing funding to eligible institutions that serve 
small businesses directly affected by the discharge of oil arising 
from the explosion on and sinking of the mobile offshore drilling 
unit Deepwater Horizon and small businesses in communities 
that have suffered negative economic effects as a result of 
that discharge with particular consideration to States along 
the coast of the Gulf of Mexico. 
SEC. 4106. REPORTS. 
The Secretary shall provide to the appropriate committees of 
Congress— 
(1) within 7 days of the end of each month commencing 
with the first month in which transactions are made under 
the Program, a written report describing all of the transactions 
made during the reporting period pursuant to the authorities 
granted under this subtitle; 
(2) after the end of March and the end of September, 
commencing September 30, 2010, a written report on all pro-
jected costs and liabilities, all operating expenses, including 
compensation for financial agents, and all transactions made 
by the Fund, which shall include participating institutions and 
amounts each institution has received under the Program; and 
(3) within 7 days of the end of each calendar quarter 
commencing with the first calendar quarter in which trans-
actions are made under the Program, a written report detailing 
how eligible institutions participating in the Program have 
used the funds such institutions received under the Program. 
SEC. 4107. OVERSIGHT AND AUDITS. 
(a) INSPECTOR GENERAL OVERSIGHT.—The Inspector General 
of the Department of the Treasury shall conduct, supervise, and 
coordinate audits and investigations of the Program through the 
Office of Small Business Lending Fund Program Oversight estab-
lished under subsection (b). 
(b) OFFICE OF SMALL BUSINESS LENDING FUND PROGRAM OVER-
SIGHT.— 
(1) ESTABLISHMENT.—There is hereby established within 
the Office of the Inspector General of the Department of the 
Treasury a new office to be named the ‘‘Office of Small Business 
Lending Fund Program Oversight’’ to provide oversight of the 
Program. 
(2) LEADERSHIP.—The Inspector General shall appoint a 
Special Deputy Inspector General for SBLF Program Oversight 
to lead the Office, with commensurate staff, who shall report 
directly to the Inspector General and who shall be responsible 
for the performance of all auditing and investigative activities 
relating to the Program. 
(3) REPORTING.— 
(A) IN GENERAL.—The Inspector General shall issue 
a report no less than two times a year to the Congress 
and the Secretary devoted to the oversight provided by 
the Office, including any recommendations for improve-
ments to the Program. 
Appointment. 
Effective date. 
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124 STAT. 2594 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(B) RECOMMENDATIONS.—With respect to any defi-
ciencies identified in a report under subparagraph (A), 
the Secretary shall either— 
(i) take actions to address such deficiencies; or 
(ii) certify to the appropriate committees of Con-
gress that no action is necessary or appropriate. 
(4) COORDINATION.—The Inspector General, in maximizing 
the effectiveness of the Office, shall work with other Offices 
of Inspector General, as appropriate, to minimize duplication 
of effort and ensure comprehensive oversight of the Program. 
(5) TERMINATION.—The Office shall terminate at the end 
of the 6-month period beginning on the date on which all 
capital investments are repaid under the Program or the date 
on which the Secretary determines that any remaining capital 
investments will not be repaid. 
(6) DEFINITIONS.—For purposes of this subsection: 
(A) OFFICE.—The term ‘‘Office’’ means the Office of 
Small Business Lending Fund Program Oversight estab-
lished under paragraph (1). 
(B) INSPECTOR GENERAL.—The term ‘‘Inspector Gen-
eral’’ means the Inspector General of the Department of 
the Treasury. 
(c) GAO AUDIT.—The Comptroller General of the United States 
shall perform an annual audit of the Program and issue a report 
to the appropriate committees of Congress containing the results 
of such audit. 
(d) REQUIRED CERTIFICATIONS.— 
(1) ELIGIBLE
INSTITUTION
CERTIFICATION.—Each eligible 
institution that participates in the Program must certify that 
such institution is in compliance with the requirements of 
section 103.121 of title 31, Code of Federal Regulations, a 
regulation that, at a minimum, requires financial institutions, 
as that term is defined in 31 U.S.C. 5312(a)(2) and (c)(1)(A), 
to implement reasonable procedures to verify the identity of 
any person seeking to open an account, to the extent reasonable 
and practicable, maintain records of the information used to 
verify the person’s identity, and determine whether the person 
appears on any lists of known or suspected terrorists or terrorist 
organizations provided to the financial institution by any 
government agency. 
(2) LOAN RECIPIENTS.—With respect to funds received by 
an eligible institution under the Program, any business 
receiving a loan from the eligible institution using such funds 
after the date of the enactment of this Act shall certify to 
such eligible institution that the principals of such business 
have not been convicted of a sex offense against a minor (as 
such terms are defined in section 111 of the Sex Offender 
Registration and Notification Act (42 U.S.C. 16911)). 
(e) PROHIBITION ON PORNOGRAPHY.—None of the funds made 
available under this subtitle may be used to pay the salary of 
any individual engaged in activities related to the Program who 
has been officially disciplined for violations of subpart G of the 
Standards of Ethical Conduct for Employees of the Executive 
Branch for viewing, downloading, or exchanging pornography, 
including child pornography, on a Federal Government computer 
or while performing official Federal Government duties. 
Deadline. 
Reports. 
Time period. 
Certification. 
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124 STAT. 2595 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 4108. CREDIT REFORM; FUNDING. 
(a) CREDIT REFORM.—The cost of purchases of preferred stock 
and other financial instruments made as capital investments under 
this subtitle shall be determined as provided under the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 
(b) FUNDS MADE AVAILABLE.—There are hereby appropriated, 
out of funds in the Treasury not otherwise appropriated, such 
sums as may be necessary to pay the costs of $30,000,000,000 
of capital investments in eligible institutions, including the costs 
of modifying such investments, and reasonable costs of admin-
istering the program of making, holding, managing, and selling 
the capital investments. 
SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORITIES. 
(a) TERMINATION OF INVESTMENT AUTHORITY.—The authority 
to make capital investments in eligible institutions, including 
commitments to purchase preferred stock or other instruments, 
provided under this subtitle shall terminate 1 year after the date 
of enactment of this Act. 
(b) CONTINUATION
OF OTHER AUTHORITIES.—The authorities 
of the Secretary under section 4104 shall not be limited by the 
termination date in subsection (a). 
SEC. 4110. PRESERVATION OF AUTHORITY. 
Nothing in this subtitle may be construed to limit the authority 
of the Secretary under any other provision of law. 
SEC. 4111. ASSURANCES. 
(a) SMALL BUSINESS LENDING FUND SEPARATE FROM TARP.— 
The Small Business Lending Fund Program is established as sepa-
rate and distinct from the Troubled Asset Relief Program estab-
lished by the Emergency Economic Stabilization Act of 2008. An 
institution shall not, by virtue of a capital investment under the 
Small Business Lending Fund Program, be considered a recipient 
of the Troubled Asset Relief Program. 
(b) CHANGE IN LAW.—If, after a capital investment has been 
made in an eligible institution under the Program, there is a 
change in law that modifies the terms of the investment or program 
in a materially adverse respect for the eligible institution, the 
eligible institution may, after consultation with the appropriate 
Federal banking agency for the eligible institution, repay the invest-
ment without impediment. 
SEC. 4112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, 
VETERAN-OWNED, AND MINORITY-OWNED BUSINESSES. 
(a) STUDY.—The Secretary shall conduct a study of the impact 
of the Program on women-owned businesses, veteran-owned 
businesses, and minority-owned businesses. 
(b) REPORT.—Not later than one year after the date of enact-
ment of this Act, the Secretary shall submit to Congress a report 
on the results of the study conducted pursuant to subsection (a). 
To the extent possible, the Secretary shall disaggregate the results 
of such study by ethnic group and gender. 
(c) INFORMATION
PROVIDED
TO
THE
SECRETARY.—Eligible 
institutions that participate in the Program shall provide the Sec-
retary with such information as the Secretary may require to carry 
out the study required by this section. 
Appropriation 
authorization. 
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124 STAT. 2596 
PUBLIC LAW 111–240—SEPT. 27, 2010 
SEC. 4113. SENSE OF CONGRESS. 
It is the sense of Congress that the Federal Deposit Insurance 
Corporation and other bank regulators are sending mixed messages 
to banks regarding regulatory capital requirements and lending 
standards, which is a contributing cause of decreased small business 
lending and increased regulatory uncertainty at community banks. 
Subtitle B—Other Provisions 
PART I—SMALL BUSINESS EXPORT 
PROMOTION INITIATIVES 
SEC. 4221. SHORT TITLE. 
This part may be cited as the ‘‘Export Promotion Act of 2010’’. 
SEC. 4222. GLOBAL BUSINESS DEVELOPMENT AND PROMOTION ACTIVI-
TIES OF THE DEPARTMENT OF COMMERCE. 
(a) INCREASE IN EMPLOYEES WITH RESPONSIBILITY FOR GLOBAL 
BUSINESS DEVELOPMENT AND PROMOTION ACTIVITIES.— 
(1) IN GENERAL.—During the 24-month period beginning 
on the date of the enactment of this Act, the Secretary of 
Commerce shall increase the number of full-time departmental 
employees whose primary responsibilities involve promoting or 
facilitating participation by United States businesses in the 
global marketplace and facilitating the entry into, or expansion 
of, such participation by United States businesses. In carrying 
out this subsection, the Secretary shall ensure that— 
(A) the cohort of such employees is increased by not 
less than 80 persons; and 
(B) a substantial portion of the increased cohort is 
stationed outside the United States. 
(2) ENHANCED
FOCUS
ON
UNITED
STATES
SMALL- AND 
MEDIUM-SIZED
BUSINESSES.—In carrying out this subsection, 
the Secretary shall take such action as may be necessary to 
ensure that the activities of the Department of Commerce 
relating to promoting and facilitating participation by United 
States businesses in the global marketplace include promoting 
and facilitating such participation by small and medium-sized 
businesses in the United States. 
(3) AUTHORIZATION OF APPROPRIATIONS.—There are author-
ized to be appropriated to the Secretary for each of the fiscal 
years 2011 and 2012 such sums as may be necessary to carry 
out this section. 
(b) ADDITIONAL FUNDING FOR GLOBAL BUSINESS DEVELOPMENT 
AND PROMOTION ACTIVITIES OF THE DEPARTMENT OF COMMERCE.— 
(1) IN GENERAL.—There are authorized to be appropriated 
to the Secretary of Commerce for the period beginning on 
the date of the enactment of this Act and ending 18 months 
thereafter, $30,000,000 to promote or facilitate participation 
by United States businesses in the global marketplace and 
facilitating the entry into, or expansion of, such participation 
by United States businesses. 
(2) REQUIREMENTS.—In obligating and expending the funds 
authorized to be appropriated by paragraph (1), the Secretary 
of Commerce shall give preference to activities that— 
Appropriation 
authorization. 
Time period. 
Effective date. 
15 USC 271 note. 
Export 
Promotion Act of 
2010. 
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124 STAT. 2597 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(A) assist small- and medium-sized businesses in the 
United States; and 
(B) the Secretary determines will create or sustain 
the greatest number of jobs in the United States and obtain 
the maximum return on investment. 
SEC. 4223. ADDITIONAL FUNDING TO IMPROVE ACCESS TO GLOBAL 
MARKETS FOR RURAL BUSINESSES. 
(a) IN GENERAL.—There are authorized to be appropriated to 
the Secretary of Commerce $5,000,000 for each of the fiscal years 
2011 and 2012 for improving access to the global marketplace 
for goods and services provided by rural businesses in the United 
States. 
(b) REQUIREMENTS.—In obligating and expending the funds 
authorized to be appropriated by subsection (a), the Secretary of 
Commerce shall give preference to activities that— 
(1) assist small- and medium-sized businesses in the United 
States; and 
(2) the Secretary determines will create or sustain the 
greatest number of jobs in the United States and obtain the 
maximum return on investment. 
SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM. 
(a) IN GENERAL.—There are authorized to be appropriated to 
the Secretary of Commerce $11,000,000 for the period beginning 
on the date of the enactment of this Act and ending 18 months 
thereafter, to expand ExporTech, a joint program of the Hollings 
Manufacturing Partnership Program and the Export Assistance 
Centers of the Department of Commerce. 
(b) REQUIREMENTS.—In obligating and expending the funds 
authorized to be appropriated by subsection (a), the Secretary of 
Commerce shall give preference to activities that— 
(1) assist small- and medium-sized businesses in the United 
States; and 
(2) the Secretary determines will create or sustain the 
greatest number of jobs in the United States and obtain the 
maximum return on investment. 
SEC. 4225. ADDITIONAL FUNDING FOR THE MARKET DEVELOPMENT 
COOPERATOR PROGRAM OF THE DEPARTMENT OF COM-
MERCE. 
(a) IN GENERAL.—There are authorized to be appropriated to 
the Secretary of Commerce for the period beginning on the date 
of the enactment of this Act and ending 18 months thereafter, 
$15,000,000 for the Manufacturing and Services unit of the Inter-
national Trade Administration— 
(1) to establish public-private partnerships under the 
Market Development Cooperator Program of the International 
Trade Administration; and 
(2) to underwrite a portion of the start-up costs for new 
projects carried out under that Program to strengthen the 
competitiveness and market share of United States industry, 
not to exceed, for each such project, the lesser of— 
(A) 1⁄3 of the total start-up costs for the project; or 
(B) $500,000. 
(b) REQUIREMENTS.—In obligating and expending the funds 
authorized to be appropriated by subsection (a), the Secretary of 
Commerce shall give preference to activities that— 
Time period. 
Time period. 
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124 STAT. 2598 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(1) assist small- and medium-sized businesses in the United 
States; and 
(2) the Secretary determines will create or sustain the 
greatest number of jobs in the United States and obtain the 
maximum return on investment. 
SEC. 4226. HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM; 
TECHNOLOGY INNOVATION PROGRAM. 
(a) HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM.—Sec-
tion 25(f) of the National Institute of Standards and Technology 
Act (15 U.S.C. 278k(f)) is amended by adding at the end the fol-
lowing: 
‘‘(7) GLOBAL MARKETPLACE PROJECTS.—In making awards 
under this subsection, the Director, in consultation with the 
Manufacturing Extension Partnership Advisory Board and the 
Secretary of Commerce, may— 
‘‘(A) take into consideration whether an application 
has significant potential for enhancing the competitiveness 
of small and medium-sized United States manufacturers 
in the global marketplace; and 
‘‘(B) give a preference to applications for such projects 
to the extent the Director deems appropriate, taking into 
account the broader purposes of this subsection.’’. 
(b) TECHNOLOGY INNOVATION PROGRAM.—In awarding grants, 
cooperative agreements, or contracts under section 28 of the 
National Institute of Standards and Technology Act (15 U.S.C. 
278n), in addition to the award criteria set forth in subsection 
(c) of that section, the Director of the National Institute of Stand-
ards and Technology may take into consideration whether an 
application has significant potential for enhancing the competitive-
ness of small- and medium-sized businesses in the United States 
in the global marketplace. The Director shall consult with the 
Technology Innovation Program Advisory Board and the Secretary 
of Commerce in implementing this subsection. 
SEC. 
4227. 
SENSE 
OF 
THE 
SENATE 
CONCERNING 
FEDERAL 
COLLABORATION WITH STATES ON EXPORT PROMOTION 
ISSUES. 
It is the sense of the Senate that the Secretary of Commerce 
should enhance Federal collaboration with the States on export 
promotion issues by— 
(1) providing the necessary training to the staff at State 
international trade agencies to enable them to assist the United 
States and Foreign Commercial Service (established by section 
2301 of the Export Enhancement Act of 1988 (15 U.S.C. 4721)) 
in providing counseling and other export services to businesses 
in their communities; and 
(2) entering into agreements with State international trade 
agencies for those agencies to deliver export promotion services 
in their local communities in order to extend the outreach 
of United States and Foreign Commercial Service programs. 
SEC. 4228. REPORT ON TARIFF AND NONTARIFF BARRIERS. 
Not later than 90 days after the date of the enactment of 
this Act, the Secretary of Commerce, in consultation with the United 
States Trade Representative and other appropriate entities, shall 
report to Congress on the tariff and nontariff barriers imposed 
by Colombia, the Republic of Korea, and Panama with respect 
Columbia. 
Republic of 
Korea. 
Panama. 
Consultation. 
Grants. 
Contracts. 
15 USC 278n 
note. 
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124 STAT. 2599 
PUBLIC LAW 111–240—SEPT. 27, 2010 
to exports of articles from the United States, including articles 
exported or produced by small- and medium-sized businesses in 
the United States. 
PART II—MEDICARE FRAUD 
SEC. 4241. USE OF PREDICTIVE MODELING AND OTHER ANALYTICS 
TECHNOLOGIES TO IDENTIFY AND PREVENT WASTE, 
FRAUD, AND ABUSE IN THE MEDICARE FEE-FOR-SERVICE 
PROGRAM. 
(a) USE IN THE MEDICARE FEE-FOR-SERVICE PROGRAM.—The 
Secretary shall use predictive modeling and other analytics tech-
nologies (in this section referred to as ‘‘predictive analytics tech-
nologies’’) to identify improper claims for reimbursement and to 
prevent the payment of such claims under the Medicare fee-for- 
service program. 
(b) PREDICTIVE ANALYTICS TECHNOLOGIES REQUIREMENTS.—The 
predictive analytics technologies used by the Secretary shall— 
(1) capture Medicare provider and Medicare beneficiary 
activities across the Medicare fee-for-service program to provide 
a comprehensive view across all providers, beneficiaries, and 
geographies within such program in order to— 
(A) identify and analyze Medicare provider networks, 
provider billing patterns, and beneficiary utilization pat-
terns; and 
(B) identify and detect any such patterns and networks 
that represent a high risk of fraudulent activity; 
(2) be integrated into the existing Medicare fee-for-service 
program claims flow with minimal effort and maximum effi-
ciency; 
(3) be able to— 
(A) analyze large data sets for unusual or suspicious 
patterns or anomalies or contain other factors that are 
linked to the occurrence of waste, fraud, or abuse; 
(B) undertake such analysis before payment is made; 
and 
(C) prioritize such identified transactions for additional 
review before payment is made in terms of the likelihood 
of potential waste, fraud, and abuse to more efficiently 
utilize investigative resources; 
(4) capture outcome information on adjudicated claims for 
reimbursement to allow for refinement and enhancement of 
the predictive analytics technologies on the basis of such out-
come information, including post-payment information about 
the eventual status of a claim; and 
(5) prevent the payment of claims for reimbursement that 
have been identified as potentially wasteful, fraudulent, or 
abusive until such time as the claims have been verified as 
valid. 
(c) IMPLEMENTATION REQUIREMENTS.— 
(1) REQUEST FOR PROPOSALS.—Not later than January 1, 
2011, the Secretary shall issue a request for proposals to carry 
out this section during the first year of implementation. To 
the extent the Secretary determines appropriate— 
(A) the initial request for proposals may include subse-
quent implementation years; and 
Deadline. 
42 USC 
1320a–7m. 
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124 STAT. 2600 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(B) the Secretary may issue additional requests for 
proposals with respect to subsequent implementation years. 
(2) FIRST IMPLEMENTATION YEAR.—The initial request for 
proposals issued under paragraph (1) shall require the contrac-
tors selected to commence using predictive analytics tech-
nologies on July 1, 2011, in the 10 States identified by the 
Secretary as having the highest risk of waste, fraud, or abuse 
in the Medicare fee-for-service program. 
(3) SECOND IMPLEMENTATION YEAR.—Based on the results 
of the report and recommendation required under subsection 
(e)(1)(B), the Secretary shall expand the use of predictive ana-
lytics technologies on October 1, 2012, to apply to an additional 
10 States identified by the Secretary as having the highest 
risk of waste, fraud, or abuse in the Medicare fee-for-service 
program, after the States identified under paragraph (2). 
(4) THIRD IMPLEMENTATION YEAR.—Based on the results 
of the report and recommendation required under subsection 
(e)(2), the Secretary shall expand the use of predictive analytics 
technologies on January 1, 2014, to apply to the Medicare 
fee-for-service program in any State not identified under para-
graph (2) or (3) and the commonwealths and territories. 
(5) FOURTH IMPLEMENTATION YEAR.—Based on the results 
of the report and recommendation required under subsection 
(e)(3), the Secretary shall expand the use of predictive analytics 
technologies, beginning April 1, 2015, to apply to Medicaid 
and CHIP. To the extent the Secretary determines appropriate, 
such expansion may be made on a phased-in basis. 
(6) OPTION
FOR
REFINEMENT
AND
EVALUATION.—If, with 
respect to the first, second, or third implementation year, the 
Inspector General of the Department of Health and Human 
Services certifies as part of the report required under subsection 
(e) for that year no or only nominal actual savings to the 
Medicare fee-for-service program, the Secretary may impose 
a moratorium, not to exceed 12 months, on the expansion 
of the use of predictive analytics technologies under this section 
for the succeeding year in order to refine the use of predictive 
analytics technologies to achieve more than nominal savings 
before further expansion. If a moratorium is imposed in accord-
ance with this paragraph, the implementation dates applicable 
for the succeeding year or years shall be adjusted to reflect 
the length of the moratorium period. 
(d) CONTRACTOR SELECTION, QUALIFICATIONS, AND DATA ACCESS 
REQUIREMENTS.— 
(1) SELECTION.— 
(A) IN GENERAL.—The Secretary shall select contractors 
to carry out this section using competitive procedures as 
provided for in the Federal Acquisition Regulation. 
(B) NUMBER
OF
CONTRACTORS.—The Secretary shall 
select at least 2 contractors to carry out this section with 
respect to any year. 
(2) QUALIFICATIONS.— 
(A) IN GENERAL.—The Secretary shall enter into a con-
tract under this section with an entity only if the entity— 
(i) has leadership and staff who— 
Certification. 
Time period. 
Applicability. 
Contracts. 
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124 STAT. 2601 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(I) have the appropriate clinical knowledge of, 
and experience with, the payment rules and regu-
lations under the Medicare fee-for-service program; 
and 
(II) have direct management experience and 
proficiency utilizing predictive analytics tech-
nologies necessary to carry out the requirements 
under subsection (b); or 
(ii) has a contract, or will enter into a contract, 
with another entity that has leadership and staff 
meeting the criteria described in clause (i). 
(B) CONFLICT OF INTEREST.—The Secretary may only 
enter into a contract under this section with an entity 
to the extent that the entity complies with such conflict 
of interest standards as are generally applicable to Federal 
acquisition and procurement. 
(3) DATA ACCESS.—The Secretary shall provide entities with 
a contract under this section with appropriate access to data 
necessary for the entity to use predictive analytics technologies 
in accordance with the contract. 
(e) REPORTING REQUIREMENTS.— 
(1) FIRST IMPLEMENTATION YEAR REPORT.—Not later than 
3 months after the completion of the first implementation year 
under this section, the Secretary shall submit to the appropriate 
committees of Congress and make available to the public a 
report that includes the following: 
(A) A description of the implementation of the use 
of predictive analytics technologies during the year. 
(B) A certification of the Inspector General of the 
Department of Health and Human Services that— 
(i) specifies the actual and projected savings to 
the Medicare fee-for-service program as a result of 
the use of predictive analytics technologies, including 
estimates of the amounts of such savings with respect 
to both improper payments recovered and improper 
payments avoided; 
(ii) the actual and projected savings to the Medi-
care fee-for-service program as a result of such use 
of predictive analytics technologies relative to the 
return on investment for the use of such technologies 
and in comparison to other strategies or technologies 
used to prevent and detect fraud, waste, and abuse 
in the Medicare fee-for-service program; and 
(iii) includes recommendations regarding— 
(I) whether the Secretary should continue to 
use predictive analytics technologies; 
(II) whether the use of such technologies 
should be expanded in accordance with the require-
ments of subsection (c); and 
(III) any modifications or refinements that 
should be made to increase the amount of actual 
or projected savings or mitigate any adverse 
impact on Medicare beneficiaries or providers. 
(C) An analysis of the extent to which the use of 
predictive analytics technologies successfully prevented and 
detected waste, fraud, or abuse in the Medicare fee-for- 
service program. 
Public 
information. 
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124 STAT. 2602 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(D) A review of whether the predictive analytics tech-
nologies affected access to, or the quality of, items and 
services furnished to Medicare beneficiaries. 
(E) A review of what effect, if any, the use of predictive 
analytics technologies had on Medicare providers. 
(F) Any other items determined appropriate by the 
Secretary. 
(2) SECOND YEAR IMPLEMENTATION REPORT.—Not later than 
3 months after the completion of the second implementation 
year under this section, the Secretary shall submit to the 
appropriate committees of Congress and make available to the 
public a report that includes, with respect to such year, the 
items required under paragraph (1) as well as any other addi-
tional items determined appropriate by the Secretary with 
respect to the report for such year. 
(3) THIRD YEAR IMPLEMENTATION REPORT.—Not later than 
3 months after the completion of the third implementation 
year under this section, the Secretary shall submit to the 
appropriate committees of Congress, and make available to 
the public, a report that includes with respect to such year, 
the items required under paragraph (1), as well as any other 
additional items determined appropriate by the Secretary with 
respect to the report for such year, and the following: 
(A) An analysis of the cost-effectiveness and feasibility 
of expanding the use of predictive analytics technologies 
to Medicaid and CHIP. 
(B) An analysis of the effect, if any, the application 
of predictive analytics technologies to claims under Med-
icaid and CHIP would have on States and the common-
wealths and territories. 
(C) Recommendations regarding the extent to which 
technical assistance may be necessary to expand the 
application of predictive analytics technologies to claims 
under Medicaid and CHIP, and the type of any such assist-
ance. 
(f) INDEPENDENT EVALUATION AND REPORT.— 
(1) EVALUATION.—Upon completion of the first year in 
which predictive analytics technologies are used with respect 
to claims under Medicaid and CHIP, the Secretary shall, by 
grant, contract, or interagency agreement, conduct an inde-
pendent evaluation of the use of predictive analytics tech-
nologies under the Medicare fee-for-service program and Med-
icaid and CHIP. The evaluation shall include an analysis with 
respect to each such program of the items required for the 
third year implementation report under subsection (e)(3). 
(2) REPORT.—Not later than 18 months after the evaluation 
required under paragraph (1) is initiated, the Secretary shall 
submit a report to Congress on the evaluation that shall include 
the results of the evaluation, the Secretary’s response to such 
results and, to the extent the Secretary determines appropriate, 
recommendations for legislation or administrative actions. 
(g) WAIVER AUTHORITY.—The Secretary may waive such provi-
sions of titles XI, XVIII, XIX, and XXI of the Social Security Act, 
including applicable prompt payment requirements under titles 
XVIII and XIX of such Act, as the Secretary determines to be 
appropriate to carry out this section. 
(h) FUNDING.— 
Grants. 
Contracts. 
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124 STAT. 2603 
PUBLIC LAW 111–240—SEPT. 27, 2010 
(1) APPROPRIATION.—Out of any funds in the Treasury 
not otherwise appropriated, there is appropriated to the Sec-
retary to carry out this section, $100,000,000 for the period 
beginning January 1, 2011, to remain available until expended. 
(2) RESERVATIONS.— 
(A) INDEPENDENT
EVALUATION.—The Secretary shall 
reserve not more than 5 percent of the funds appropriated 
under paragraph (1) for purposes of conducting the inde-
pendent evaluation required under subsection (f). 
(B) APPLICATION
TO
MEDICAID
AND
CHIP.—The Sec-
retary shall reserve such portion of the funds appropriated 
under paragraph (1) as the Secretary determines appro-
priate for purposes of providing assistance to States for 
administrative expenses in the event of the expansion of 
predictive analytics technologies to claims under Medicaid 
and CHIP. 
(i) DEFINITIONS.—In this section: 
(1) 
COMMONWEALTHS
AND
TERRITORIES.—The 
term 
‘‘commonwealth and territories’’ includes the Commonwealth 
of Puerto Rico, the Virgin Islands, Guam, American Samoa, 
the Commonwealth of the Northern Mariana Islands, and any 
other territory or possession of the United States in which 
the Medicare fee-for-service program, Medicaid, or CHIP oper-
ates. 
(2) CHIP.—The term ‘‘CHIP’’ means the Children’s Health 
Insurance Program established under title XXI of the Social 
Security Act (42 U.S.C. 1397aa et seq.). 
(3) MEDICAID.—The term ‘‘Medicaid’’ means the program 
to provide grants to States for medical assistance programs 
established under title XIX of the Social Security Act (42 U.S.C. 
1396 et seq.). 
(4) MEDICARE
BENEFICIARY.—The term ‘‘Medicare bene-
ficiary’’ means an individual enrolled in the Medicare fee-for- 
service program. 
(5) MEDICARE FEE-FOR-SERVICE PROGRAM.—The term ‘‘Medi-
care fee-for-service program’’ means the original medicare fee- 
for-service program under parts A and B of title XVIII of 
the Social Security Act (42 U.S.C. 1395 et seq.). 
(6) MEDICARE PROVIDER.—The term ‘‘Medicare provider’’ 
means a provider of services (as defined in subsection (u) of 
section 1861 of the Social Security Act (42 U.S.C. 1395x)) and 
a supplier (as defined in subsection (d) of such section). 
(7) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 
of Health and Human Services, acting through the Adminis-
trator of the Centers for Medicare & Medicaid Services. 
(8) STATE.—The term ‘‘State’’ means each of the 50 States 
and the District of Columbia. 
TITLE V—BUDGETARY PROVISIONS 
SEC. 5001. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined 
by reference to the latest statement titled ‘‘Budgetary Effects of 
PAYGO Legislation’’ for this Act, submitted for printing in the 
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124 STAT. 2604 
PUBLIC LAW 111–240—SEPT. 27, 2010 
LEGISLATIVE HISTORY—H.R. 5297: 
HOUSE REPORTS: No. 111–499 (Comm. on Financial Services). 
CONGRESSIONAL RECORD, Vol. 156 (2010): 
June 16, 17, considered and passed House. 
June 29, July 19, 21, 22, 27–29, Aug. 5, Sept. 14–16, considered and passed 
Senate, amended. 
Sept. 23, House concurred in Senate amendment. 
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2010): 
Sept. 27, Presidential remarks. 
Congressional Record by the Chairman of the Senate Budget Com-
mittee, provided that such statement has been submitted prior 
to the vote on passage. 
Approved September 27, 2010. 
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