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Full Text of this Amendment

SA 3345. Ms. LANDRIEU submitted an amendment intended to be proposed to amendment SA 3336 proposed by Mr. Baucus to the bill H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes; which was ordered to lie on the table; as follows:

At the end, add the following:
TITLE VIII--SMALL BUSINESS LOANS


SEC. 801. SHORT TITLE.
This title may be cited as the "Small Business Job Creation and Access to Capital Act of 2010".
Subtitle A--Next Steps for Main Street Credit Availability


SEC. 821. 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".
(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. 822. 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. 823. 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. 824. 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 Venture Capital company--
"(A) granted final approval by the Administrator under section 354(e) on or after March 1, 2002; and
"(B) that has obtained a financing from the Administrator.
"(2) LIMITATION.--Except to the extent approved by the Administrator, a covered New Markets Venture Capital company 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 Venture Capital.".
SEC. 825. 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 alternative 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. 826. 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 increments 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 borrowers that are divided under this paragraph may be included in the same pool.".
SEC. 827. 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
(2) allows prospective borrowers to compare rates on loans guaranteed by the Small Business Administration.
Subtitle B--Small Business Access to Capital


SEC. 841. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS LOAN PROGRAM.
(a) Refinancing.--Section 502(7) of the Small Business Investment 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 development company for financing under this subparagraph;
"(II) the term `eligible fixed asset' means tangible property relating to which the Administrator may provide financing under this section; and
"(III) the term `qualified debt' means indebtedness--
"(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 current 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 80 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;
"(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 Administrator determines there will be an additional cost attributable to the refinancing of the qualified debt, the borrower agrees to pay a fee in an amount equal to the anticipated additional cost.
"(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 subparagraph for a borrower that meets the job creation goals under subsection (d) or (e) of section 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 borrower applies for a loan under this subparagraph; and
"(bb) the product obtained by multiplying--
"(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.
"(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 $4,000,000,000 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 Investment Act of 1958 (15 U.S.C. 696(7)) is amended by striking subparagraph (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)".
(As printed in the Congressional Record for the Senate on Mar 1, 2010.)