[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1332 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 129
110th CONGRESS
  1st Session
                                H. R. 1332


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 26, 2007

                                Received

                             April 30, 2007

                          Read the first time

                              May 1, 2007

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 AN ACT


 
    To improve the access to capital programs of the Small Business 
                Administration, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Small Business 
Lending Improvements Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                         TITLE I--7(A) PROGRAM

Sec. 101. Authority for fee contributions.
Sec. 102. Rural Lending Outreach Program.
Sec. 103. Community Express program made permanent.
Sec. 104. Medical Professionals in Designated Shortage Areas Program.
Sec. 105. Increased Veteran Participation Program.
Sec. 106. Alternative size standard.
Sec. 107. Support to regional offices.
   TITLE II--CERTIFIED DEVELOPMENT COMPANY ECONOMIC DEVELOPMENT LOAN 
                                PROGRAM

Sec. 201. Certified Development Company Economic Development Loan 
                            Program.
Sec. 202. Definitions.
Sec. 203. Eligibility of development companies to be designated as 
                            certified development companies.
Sec. 204. Definition of rural areas.
Sec. 205. Businesses in low-income areas.
Sec. 206. Combinations of certain goals.
Sec. 207. Refinancing.
Sec. 208. Additional equity injections.
Sec. 209. Loan liquidations.
Sec. 210. Closing costs.
Sec. 211. Maximum Certified Development Company and 7(a) loan 
                            eligibility.
Sec. 212. Eligibility for energy efficiency projects.
Sec. 213. Loans for plant projects used for energy-efficient purposes.
Sec. 214. Extension of period during which loss reserves of premier 
                            certified lenders determined on the basis 
                            of outstanding balance of debentures.
Sec. 215. Extension of alternative loss reserve pilot program for 
                            certain premier certified lenders.

                         TITLE I--7(A) PROGRAM

SEC. 101. AUTHORITY FOR FEE CONTRIBUTIONS.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended--
            (1) in paragraph (18)(A) by striking ``shall collect'' and 
        inserting ``shall assess and collect'';
            (2) in paragraph (18) by adding at the end the following:
                    ``(C) Offset.--The Administrator may, as provided 
                in paragraph (32), offset fees assessed and collected 
                under subparagraph (A).'';
            (3) in paragraph (23) by striking subparagraph (C) and 
        adding at the end the following:
                    ``(C) Offset.--The Administrator may, as provided 
                in paragraph (32), offset fees assessed and collected 
                under subparagraph (A).''; and
            (4) by adding at the end the following:
            ``(32) Fee contributions.--
                    ``(A) In general.--To the extent that amounts are 
                made available to the Administrator for the purpose of 
                fee contributions, the Administrator shall--
                            ``(i) first consider contributing to fees 
                        paid by small business borrowers under clauses 
                        (i) through (iii) of paragraph (18)(A), to the 
                        maximum extent possible; and
                            ``(ii) then consider contributing to fees 
                        paid by small business lenders under paragraph 
                        (23)(A).
                    ``(B) Quarterly adjustment.--Each fee contribution 
                under subparagraph (A) shall be effective for one 
                fiscal quarter and shall be adjusted as necessary for 
                each fiscal quarter thereafter to ensure that the 
                amounts under subparagraph (A) are fully used. The fee 
                contribution for a fiscal quarter shall be based on the 
                loans that the Administrator projects will be made 
                during that fiscal quarter, given the program level 
                authorized by law for that fiscal year and any other 
                factors that the Administrator considers 
                appropriate.''.

SEC. 102. RURAL LENDING OUTREACH PROGRAM.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended--
            (1) by striking paragraph (25)(C); and
            (2) by adding at the end the following:
            ``(33) Rural lending outreach program.--The Administrator 
        shall carry out a rural lending outreach program to provide up 
        to an 85 percent guaranty for loans of $250,000 or less. The 
        program shall be carried out only through lenders located in 
        rural areas (as `rural' is defined in section 501(f) of the 
        Small Business Investment Act of 1958) or, in the case of a 
        small business concern located in a rural area that does not 
        have a lender located within 30 miles of the principal place of 
        business, through any lender that is enrolled in, and 
        administers, the 7(a) loan program that the small business 
        concern chooses. For a loan made through the program, the 
        following shall apply:
                    ``(A) The Administrator shall approve or disapprove 
                the loan within 36 hours.
                    ``(B) The program shall use abbreviated application 
                and documentation requirements.
                    ``(C) Minimum credit standards, as the 
                Administrator considers necessary to limit the rate of 
                default on loans made under the program, shall 
                apply.''.

SEC. 103. COMMUNITY EXPRESS PROGRAM MADE PERMANENT.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following:
            ``(34) Community express program.--The Administrator shall 
        carry out a Community Express Program for loans of $250,000 or 
        less. For a loan made under this paragraph, the following shall 
        apply:
                    ``(A) The loan shall be made to a business 
                concern--
                            ``(i) the majority ownership interest of 
                        which is directly held by individuals who are 
                        women, members of qualified Indian tribes, 
                        socially or economically disadvantaged 
                        individuals (as defined by the Administrator), 
                        or veterans of the Armed Forces or members of 
                        the reserve components of the Armed Forces; or
                            ``(ii) that is located in a low- or 
                        moderate-income area, as defined by the 
                        Administrator.
                    ``(B) The loan shall comply with the collateral 
                policy of the Administration, except that, if the 
                amount of the loan is less than or equal to $25,000, 
                the Administration shall not require the lender to take 
                collateral.
                    ``(C) The loan shall include terms requiring the 
                lender to ensure that technical assistance is provided 
                to the borrower, through the lender or a third-party 
                provider.
                    ``(D) The Administration shall approve or 
                disapprove the loan within 36 hours.''.
    (b) Notice and Comment.--The program required by section 7(a)(34) 
of the Small Business Act, as added by subsection (a), shall be 
established after the opportunity for notice and comment and not later 
than 180 days after the date of the enactment of this Act.

SEC. 104. MEDICAL PROFESSIONALS IN DESIGNATED SHORTAGE AREAS PROGRAM.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following:
            ``(35) Medical professionals in designated shortage areas 
        program.--The Administrator shall carry out a Medical 
        Professionals in Designated Shortage Areas Program. For a loan 
        made under this paragraph, the following shall apply:
                    ``(A) The loan shall be made to a business concern 
                that provides properly licensed medical, dental, or 
                psychiatric services to the public.
                    ``(B) The loan shall be for the purpose of opening 
                a business concern in a health professional shortage 
                area (as defined in section 332 of the Public Health 
                Service Act (42 U.S.C. 254e)).
                    ``(C) The loan shall include the participation by 
                the Administration equal to 90 percent of the balance 
                of the financing outstanding at the time of 
                disbursement.
                    ``(D) The fees on the loan under paragraphs (18) 
                and (23) shall be reduced by half.''.
    (b) Notice and Comment.--The program required by section 7(a)(35) 
of the Small Business Act, as added by subsection (a), shall be 
established after the opportunity for notice and comment and not later 
than 180 days after the date of the enactment of this Act.

SEC. 105. INCREASED VETERAN PARTICIPATION PROGRAM.

    (a) In General.--Section 7(a) of the Small Business Act (15 U.S.C. 
636(a)) is amended by adding at the end the following:
            ``(36) Increased veteran participation program.--The 
        Administrator shall carry out an Increased Veteran 
        Participation Program. For a loan made under this paragraph, 
        the following shall apply:
                    ``(A) The loan shall be made to a business concern 
                the majority ownership interest of which is directly 
                held by individuals who are veterans of the Armed 
                Forces or members of the reserve components of the 
                Armed Forces.
                    ``(B) The loan shall include the participation by 
                the Administration equal to 90 percent of the balance 
                of the financing outstanding at the time of 
                disbursement.
                    ``(C) The fees on the loan under paragraphs (18) 
                and (23) shall not apply.''.
    (b) Notice and Comment.--The program required by section 7(a)(36) 
of the Small Business Act, as added by subsection (a), shall be 
established after the opportunity for notice and comment and not later 
than 180 days after the date of the enactment of this Act.

SEC. 106. ALTERNATIVE SIZE STANDARD.

    (a) In General.--Section 3(a) of the Small Business Act (15 U.S.C. 
632(a)) is amended by adding at the end the following:
            ``(5) In addition to any other size standard under this 
        subsection, the Administrator shall establish, and permit a 
        lender making a loan under section 7(a) and a lender making a 
        loan under the development company loan program to use, an 
        alternative size standard. The alternative size standard shall 
        be based on factors including maximum tangible net worth and 
        average net income.''.
    (b) Applicability.--Until the Administrator establishes, under 
section 3(a)(5) of the Small Business Act (as added by subsection (a)), 
an alternative size standard in the case of a lender making a loan 
under section 7(a) of that Act, the alternative size standard in 
section 121.301(b) of title 13, Code of Federal Regulations, shall 
apply to such a case.

SEC. 107. SUPPORT TO REGIONAL OFFICES.

    Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
amended by adding at the end the following:
            ``(37) Support to regional offices.--The Administrator 
        shall carry out a program, within an element of the 
        Administration already in existence as of the date of the 
        enactment of the , to provide support to regional offices of 
        the Administration in assisting small lenders who do not 
        participate in the preferred lender program to participate in 
        the 7(a) program.''.

   TITLE II--CERTIFIED DEVELOPMENT COMPANY ECONOMIC DEVELOPMENT LOAN 
                                PROGRAM

SEC. 201. CERTIFIED DEVELOPMENT COMPANY ECONOMIC DEVELOPMENT LOAN 
              PROGRAM.

    Section 504 of the Small Business Investment Act of 1958 (15 U.S.C. 
697a) is amended--
            (1) by redesignating subsections (a) and (b) as subsections 
        (b) and (c); and
            (2) by inserting before subsection (b) (as so redesignated) 
        the following:
    ``(a) The program to provide financing to small businesses by 
guarantees of loans under this Act which are funded by debentures 
guaranteed by the Administration may be known as the `Certified 
Development Company Economic Development Loan Program'.''.

SEC. 202. DEFINITIONS.

    Section 103(6) of the Small Business Investment Act of 1958 (15 
U.S.C. 662(6)) is amended to read as follows:
            ``(6) the term `development company' means an entity 
        incorporated under State law with the authority to promote and 
        assist the growth and development of small-business concerns in 
        the areas in which it is authorized to operate by the 
        Administration, and the term `certified development company' 
        means a development company which the Administration has 
        determined meets the criteria of section 506;''.

SEC. 203. ELIGIBILITY OF DEVELOPMENT COMPANIES TO BE DESIGNATED AS 
              CERTIFIED DEVELOPMENT COMPANIES.

    Section 506 of the Small Business Investment Act of 1958 (15 U.S.C. 
697c) is amended to read as follows:

``SEC. 506. CERTIFIED DEVELOPMENT COMPANIES.

    ``(a) Authority To Issue Debentures.--A development company may 
issue debentures pursuant to this Act if the Administration certifies 
that the company meets the following criteria:
            ``(1) Size.--The development company is required to be a 
        small concern with fewer than 500 employees and not under the 
        control of any entity which does not meet the Administration's 
        size standards as a small business, except that any development 
        company which was certified by the Administration prior to 
        December 31, 2005 may continue to issue debentures.
            ``(2) Purpose.--The primary purpose of the development 
        company is to benefit the community by fostering economic 
        development to create and preserve jobs and stimulate private 
        investment.
            ``(3) Primary function.--The primary function of the 
        development company is to accomplish its purpose by providing 
        long term financing to small businesses by the utilization of 
        the Certified Development Company Economic Development Loan 
        Program. It may also provide or support such other local 
        economic development activities to assist the community.
            ``(4) Non-profit status.--The development company is a non-
        profit corporation, except that a development company certified 
        by the Administration prior to January 1, 1987, may retain its 
        status as a for-profit corporation.
            ``(5) Good standing.--The development company is in good 
        standing in its State of incorporation and in any other State 
        in which it conducts business, and is in compliance with all 
        laws, including taxation requirements, in its State of 
        incorporation and in any other State in which it conducts 
        business.
            ``(6) Membership.--The development company has at least 25 
        members (or stockholders if the corporation is a for-profit 
        entity), none of whom may own or control more than 10 percent 
        of the company's voting membership, consisting of 
        representation from each of the following groups (none of which 
        are in a position to control the development company):
                    ``(A) Government organizations that are responsible 
                for economic development.
                    ``(B) Financial institutions that provide 
                commercial long term fixed asset financing.
                    ``(C) Community organizations that are dedicated to 
                economic development.
                    ``(D) Businesses.
            ``(7) Board of directors.--The development company has a 
        board of directors that--
                    ``(A) is elected from the membership by the 
                members;
                    ``(B) represents at least three of the four groups 
                enumerated in subsection (a)(6) and no group is in a 
                position to control the company; and
                    ``(C) meets on a regular basis to make policy 
                decisions for such company.
            ``(8) Professional management and staff.--The development 
        company has full-time professional management, including a 
        chief executive officer to manage daily operations, and a full-
        time professional staff qualified to market the Certified 
        Development Company Economic Development Loan Program and 
        handle all aspects of loan approval and servicing, including 
        liquidation, if appropriate. The development company is 
        required to be independently managed and operated to pursue its 
        economic development mission and to employ its chief executive 
        officer directly, with the following exceptions:
                    ``(A) A development company may be an affiliate of 
                another local non-profit service corporation 
                (specifically excluding another development company) 
                whose mission is to support economic development in the 
                area in which the development company operates. In such 
                a case:
                            ``(i) The development company may satisfy 
                        the requirement for full-time professional 
                        staff by contracting with a local non-profit 
                        service corporation (or one of its non-profit 
                        affiliates), or a governmental or quasi-
                        governmental agency, to provide the required 
                        staffing.
                            ``(ii) The development company and the 
                        local non-profit service corporation may have 
                        partially common boards of directors.
                    ``(B) A development company in a rural area (as 
                defined in section 501(f)) shall be deemed to have 
                satisfied the requirements of a full-time professional 
                staff and professional management ability if it 
                contracts with another certified development company 
                which has such staff and management ability and which 
                is located in the same general area to provide such 
                services.
                    ``(C) A development company that has been certified 
                by the Administration as of December 31, 2005, and that 
                has contracted with a for-profit company to provide 
                services as of such date may continue to do so.
    ``(b) Area of Operations.--The Administration shall specify the 
area in which an applicant is certified to provide assistance to small 
businesses under this title, which may not initially exceed its State 
of incorporation unless it proposes to operate in a local economic area 
which is required to include part of its State of incorporation and may 
include adjacent areas within several States. After a development 
company has demonstrated its ability to provide assistance in its area 
of operations, it may request the Administration to be allowed to 
operate in one or more additional States as a multi-state certified 
development company if it satisfies the following criteria:
            ``(1) Each additional State is contiguous to the State of 
        incorporation, except the States of Alaska and Hawaii shall be 
        deemed to be contiguous to any State abutting the Pacific 
        ocean.
            ``(2) It demonstrates its proficiency in making and 
        servicing loans under the Certified Development Company 
        Economic Development Loan Program by--
                    ``(A) requesting and receiving designation as an 
                accredited lender under section 507 or a premier 
                certified lender under section 508; and
                    ``(B) meeting or exceeding performance standards 
                established by the Administration.
            ``(3) The development company adds to the membership of its 
        State of incorporation additional membership from each 
        additional State and the added membership meets the 
        requirements of subsection (a)(6).
            ``(4) The development company adds at least one member to 
        its board of directors in the State of incorporation, providing 
        that added member was selected by the membership of the 
        development company.
            ``(5) The company meets such other criteria or complies 
        with such conditions as the Administration deems appropriate.
    ``(c) Processing of Expansion Applications.--The Administration 
shall respond to the request of a certified development company for 
certification as a multi-state company on an expedited basis within 30 
days of receipt of a completed application if the application 
demonstrates that the development company meets the requirements of 
subsection (b)(1) through (b)(4).
    ``(d) Use of Funds Limited to State Where Generated.--Any funds 
generated by a development company from making loans under the 
Certified Development Company Economic Development Loan Program which 
remain after payment of staff, operating and overhead expenses shall be 
retained by the development company as a reserve for future operations, 
for expanding its area of operations in a local economic area as 
authorized by the Administration, or for investment in other local 
economic development activity in the State from which the funds were 
generated.
    ``(e) Ethical Requirements.--
            ``(1) In general.--Certified development companies, their 
        officers, employees and other staff, shall at all times act 
        ethically and avoid activities which constitute a conflict of 
        interest or appear to constitute a conflict of interest. No one 
        may serve as an officer, director or chief executive officer of 
        more than one certified development company.
            ``(2) Prohibited conflict in project loans.--As part of a 
        project under the Certified Development Company Economic 
        Development Loan Program, no certified development company may 
        recommend or approve a guarantee of a debenture by the 
        Administration that is collateralized by a second lien position 
        on the property being constructed or acquired and also provide, 
        or be affiliated with a corporation or other entity, for-profit 
        or non-profit, which provides, financing collateralized by a 
        first lien on the same property. A business development company 
        that was participating as a first mortgage lender, either 
        directly or through an affiliate, for the Certified Development 
        Company Economic Development Loan Program in either fiscal 
        years 2004 or 2005 may continue to do so.
            ``(3) Other economic development activities.--Operation of 
        multiple programs to assist small business concerns in order 
        for a certified development company to carry out its economic 
        development mission shall not be deemed a conflict of interest, 
        but notwithstanding any other provision of law, no development 
        company may accept funding from any source, including but not 
        limited to any department or agency of the United States 
        Government--
                    ``(A) if such funding includes any conditions, 
                priorities or restrictions upon the types of small 
                businesses to which they may provide financial 
                assistance under this title; or
                    ``(B) if it includes any conditions or imposes any 
                requirements, directly or indirectly, upon any 
                recipient of assistance under this title unless the 
                department or agency also provides all of the financial 
                assistance to be delivered by the development company 
                to the small business and such conditions, priorities 
                or restrictions are limited solely to the financial 
                assistance so provided.''.

SEC. 204. DEFINITION OF RURAL AREAS.

    Section 501 of the Small Business Investment Act of 1958 (15 U.S.C. 
695) is amended by adding at the end the following new subsection:
    ``(f) As used in subsection (d)(3)(D), the term `rural' shall 
include any area other than--
            ``(1) a city or town that has a population greater than 
        50,000 inhabitants; and
            ``(2) the urbanized area contiguous and adjacent to such a 
        city or town.''.

SEC. 205. BUSINESSES IN LOW-INCOME AREAS.

    Section 501(d)(3) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(d)(3)) is amended by inserting after ``business district 
revitalization'' the following: ``or expansion of businesses in low-
income communities that would be eligible for new market tax credit 
investments under section 45D of the Internal Revenue Code of 1986 (26 
U.S.C. 45D)''.

SEC. 206. COMBINATIONS OF CERTAIN GOALS.

    Section 501(e) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(e)) is amended by adding at the end the following:
            ``(7) A small business concern that is unconditionally 
        owned by more than one individual, or a corporation whose stock 
        is owned by more than one individual, is deemed to achieve a 
        public policy goal under subsection (d)(3) if a combined 
        ownership share of at least 51 percent is held by individuals 
        who are in one of the groups listed as public policy goals 
        specified in subsection (d)(3)(C) or (d)(3)(E).''.

SEC. 207. REFINANCING.

    Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 
696) is amended by adding at the end the following:
            ``(7) Permissible debt refinancing.--Any financing approved 
        under this title may also include a limited amount of debt 
        refinancing for debt that was not previously guaranteed by the 
        Administration. If the project involves expansion of a small 
        business which has existing indebtedness collateralized by 
        fixed assets, any amount of existing indebtedness that does not 
        exceed one-half of the project cost of the expansion may be 
        refinanced and added to the expansion cost, providing--
                    ``(A) the proceeds of the indebtedness were used to 
                acquire land, including a building situated thereon, to 
                construct a building thereon or to purchase equipment;
                    ``(B) the borrower has been current on all payments 
                due on the existing debt for at least the past year; 
                and
                    ``(C) the financing under the Certified Development 
                Company Economic Development Loan Program will provide 
                better terms or rate of interest than now exists on the 
                debt.''.

SEC. 208. ADDITIONAL EQUITY INJECTIONS.

    Clause (ii) of section 502(3)(B) of the Small Business Investment 
Act of 1958 (15 U.S.C. 696(3)(B)) is amended to read as follows:
                            ``(ii) Funding from institutions.--
                                    ``(I) If a small business concern 
                                provides the minimum contribution 
                                required under paragraph (C), not less 
                                than 50 percent of the total cost of 
                                any project financed pursuant to 
                                clauses (i), (ii), or (iii) of 
                                subparagraph (C) shall come from the 
                                institutions described in subclauses 
                                (I), (II), and (III) of clause (i).
                                    ``(II) If a small business concern 
                                provides more than the minimum 
                                contribution required under paragraph 
                                (C), any excess contribution may be 
                                used to reduce the amount required from 
                                the institutions described in 
                                subclauses (I), (II), and (III) of 
                                clause (i) except that the amount from 
                                such institutions may not be reduced to 
                                an amount less than the amount of the 
                                loan made by the Administration.''.

SEC. 209. LOAN LIQUIDATIONS.

    Section 510 of the Small Business Investment Act of 1958 (15 U.S.C. 
697g) is amended--
            (1) by redesignating subsection (e) as subsection (g); and
            (2) by inserting after subsection (d) the following:
    ``(e) Participation.--
            ``(1) Mandatory.--Any certified development company which 
        elects not to apply for authority to foreclose and liquidate 
        defaulted loans under this section or which the Administration 
        determines to be ineligible for such authority shall contract 
        with a qualified third-party to perform foreclosure and 
        liquidation of defaulted loans in its portfolio. The contract 
        shall be contingent upon approval by the Administration with 
        respect to the qualifications of the contractor and the terms 
        and conditions of liquidation activities.
            ``(2) Commencement.--The provisions of this subsection 
        shall not require any development company to liquidate 
        defaulted loans until the Administration has adopted and 
        implemented a program to compensate and reimburse development 
        companies as provided under subsection (f).
    ``(f) Compensation and Reimbursement.--
            ``(1) Reimbursement of expenses.--The Administration shall 
        reimburse each certified development company for all expenses 
        paid by such company as part of the foreclosure and liquidation 
        activities if the expenses--
                    ``(A) were approved in advance by the 
                Administration either specifically or generally; or
                    ``(B) were incurred by the company on an emergency 
                basis without Administration prior approval but which 
                were reasonable and appropriate.
            ``(2) Compensation for results.--The Administration shall 
        develop a schedule to compensate and provide an incentive to 
        qualified State or local development companies which foreclose 
        and liquidate defaulted loans. The schedule shall be based on a 
        percentage of the net amount recovered but shall not exceed a 
        maximum amount. The schedule shall not apply to any foreclosure 
        which is conducted pursuant to a contract between a development 
        company and a qualified third-party to perform the foreclosure 
        and liquidation.''.

SEC. 210. CLOSING COSTS.

    Paragraph (4) of section 503(b) of the Small Business Investment 
Act of 1958 (15 U.S.C. 697(b)) is amended to read as follows:
            ``(4) the aggregate amount of such debenture does not 
        exceed the amount of loans to be made from the proceeds of such 
        debenture plus, at the election of the borrower under the 
        Certified Development Company Economic Development Loan 
        Program, other amounts attributable to the administrative and 
        closing costs of such loans, except for the borrower's attorney 
        fees;''.

SEC. 211. MAXIMUM CERTIFIED DEVELOPMENT COMPANY AND 7(A) LOAN 
              ELIGIBILITY.

    Section 502(2) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)) is amended by adding at the end the following:
                    ``(C) Combination financing.--Financing under this 
                title may be provided to a borrower in the maximum 
                amount provided in this subsection, plus a loan 
                guarantee under section 7(a) of the Small Business Act 
                may also be provided to the same borrower in the 
                maximum provided in section 7(a)(3)(A) of such Act.''.

SEC. 212. ELIGIBILITY FOR ENERGY EFFICIENCY PROJECTS.

    Section 501(d)(3) of the Small Business Investment Act of 1958 (15 
U.S.C. 695(d)(3)) is amended--
            (1) in subparagraph (G) by striking ``or'' at the end;
            (2) in subparagraph (H) by striking the period at the end 
        and inserting a comma; and
            (3) by inserting after subparagraph (H) the following:
                    ``(I) reduction of energy consumption by at least 
                10 percent, or
                    ``(J) increased use of sustainable design or low-
                impact design to produce buildings that reduce the use 
                of non-renewable resources, minimize environmental 
                impact, and relate people with the natural 
                environment.''.

SEC. 213. LOANS FOR PLANT PROJECTS USED FOR ENERGY-EFFICIENT PURPOSES.

    Section 502(2)(A) of the Small Business Investment Act of 1958 (15 
U.S.C. 696(2)(A)) is amended--
            (1) in clause (ii) by striking ``and'' at the end;
            (2) in clause (iii) by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(iv) $4,000,000 for each project that 
                        reduces the borrower's energy consumption by at 
                        least 10 percent.''.

SEC. 214. EXTENSION OF PERIOD DURING WHICH LOSS RESERVES OF PREMIER 
              CERTIFIED LENDERS DETERMINED ON THE BASIS OF OUTSTANDING 
              BALANCE OF DEBENTURES.

    Section 508(c)(6)(B) of the Small Business Investment Act of 1958 
(15 U.S.C. 697e(c)(6)(B)) is amended by striking ``during the 2-year 
period beginning on the date that is 90 days after the date of the 
enactment of this subparagraph,'' and inserting ``through the end of 
fiscal year 2008,''.

SEC. 215. EXTENSION OF ALTERNATIVE LOSS RESERVE PILOT PROGRAM FOR 
              CERTAIN PREMIER CERTIFIED LENDERS.

    Section 508(c)(7)(J) of the Small Business Investment Act of 1958 
(15 U.S.C. 697e(c)(7)(J)) is amended by striking ``means'' and all that 
follows through the period at the end and inserting ``means each 
calendar quarter through the end of fiscal year 2008.''.

            Passed the House of Representatives April 25, 2007.

            Attest:

                                            LORRAINE C. MILLER,

                                                                 Clerk.
                                                       Calendar No. 129

110th CONGRESS

  1st Session

                               H. R. 1332

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                                 AN ACT

    To improve the access to capital programs of the Small Business 
                Administration, and for other purposes.

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                              May 1, 2007

            Read the second time and placed on the calendar