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Full Text of this Amendment

SA 3367. Mr. THUNE (for himself, Mr. Enzi, and Mr. Vitter) submitted an amendment intended to be proposed to amendment SA 3345 proposed by Ms. Landrieu and intended to be proposed to the 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:

In lieu of the matter proposed to be inserted, insert 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".
SEC. 802. 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. 803. 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. 804. 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. 805. 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. 806. 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. 807. 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. 808. 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.
SEC. 809. 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)".
SEC. 810. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.
(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 development corporation;
"(II) a consortium of private, nonprofit organizations or nonprofit community development corporations; and
"(III) an agency of or nonprofit entity established by a Native American Tribal Government; and
"(B) the term `Program' means the small business intermediary 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 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 intermediary in the Program.
"(C) LOAN DURATION.--Loans made by the Administrator 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 Program 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 subsection.
"(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 2010, 2011, and 2012, 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 materials, supplies, furniture, fixtures, and equipment.
"(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 intermediary 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. 811. PROHIBITION ON USING TARP FUNDS OR TAX INCREASES.
(a) In General.--Except as provided in subsection (b), nothing in this title or the amendments made by this title 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 this title or an amendment made by this title.
(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 (12 U.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 amendment 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.


(As printed in the Congressional Record for the Senate on Mar 3, 2010.)