II 110th CONGRESS 2d Session S. 2612 IN THE SENATE OF THE UNITED STATES February 7 (legislative day, February 6), 2008 Mr. Kerry introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To provide economic stimulus for small business concerns.

1.

Short title

This Act may be cited as the Small Business Lending Stimulus Act of 2008.

2.

Economic stimulus small business concerns

(a)

Reduction of fees

(1)

Small Business Act loans

(A)

In general

For fiscal year 2008, and to the extent the cost of such reduction in fees is offset by appropriations, with respect to each loan guaranteed under section 7(a) of Small Business Act (15 U.S.C. 636(a)), the Administrator shall— (i)in lieu of the fee otherwise applicable under section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 636(a)(23)(A)), collect an annual fee in an amount equal to a maximum of .25 percent of the outstanding balance of the deferred participation share of that loan; (ii)in lieu of the fee otherwise applicable under section 7(a)(18)(A) of the Small Business Act (15 U.S.C. 636(a)(18)(A)), collect a guarantee fee in an amount equal to a maximum of— (I)1 percent of the deferred participation share of a total loan amount that is not more than $150,000; (II)2.5 percent of the deferred participation share of a total loan amount that is more than $150,000 and not more than $700,000; and (III)3 percent of the deferred participation share of a total loan amount that is more than $700,000; and (iii)in lieu of the fee otherwise applicable under section 7(a)(18)(A)(iv) of the Small Business Act (15 U.S.C. 636(a)(18)(A)(iv)), collect no fee. (B)

Implementation

In carrying out this paragraph, the Administrator shall reduce the fees for a loan guaranteed under section 7(a) of Small Business Act (15 U.S.C. 636(a)) to the maximum extent possible, subject to the availability of appropriations. (2)

Debentures

For fiscal year 2008, and to the extent the cost of such reduction in fees is offset by appropriations, the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(2)) for an institution described in subclause (I), (II), or (III) of section 502(3)(B)(i) of that Act (15 U.S.C. 696(3)(B)(i)), collect no fee. (b)

Application of fee reductions

If funds are made available to carry out subsection (a), the Administrator shall reduce the fees under subsection (a) for any loan guarantee or project subject to such subsection for which the application is pending approval on or after the date of enactment of this Act, until the amount provided for such purpose is expended. (c)

Authorization of appropriations

There are authorized to be appropriated to the Administrator for fiscal year 2008— (1)$150,000,000 to carry out subsection (a)(1); (2)$45,000,000 to carry out subsection (a)(2); (3)$2,000,000 for direct loans under the Microloan Program under section 7(m) of the Small Business Act (15 U.S.C. 636(m)), in addition to any other amounts authorized to be appropriated for such purposes; and (4)$10,000,000 for marketing, management, and technical assistance under section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) by intermediaries that make microloans under the Microloan Program, in addition to any other amounts authorized to be appropriated for such purposes. (d)

Definitions

In this section— (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 same meaning as in section 3 of the Small Business Act (15 U.S.C. 632).

3.

Refinancing under the local development business loan program

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

A financing under this title may include refinancing of existing indebtedness, in an amount not to exceed 50 percent of the projected cost of the project financed under this title, if— (A)the project financed under this title involves the expansion of a small business concern; (B)the existing indebtedness is collateralized by fixed assets; (C)the existing indebtedness was incurred for the benefit of the small business concern; (D)the proceeds of the existing indebtedness were used to acquire land (including a building situated thereon), to construct or expand a building thereon, or to purchase equipment; (E)the borrower has been current on all payments due on the existing indebtedness for not less than 1 year preceding the proposed date of refinancing; (F)the financing under this title will provide better terms or a better rate of interest than exists on the existing indebtedness on the proposed date of refinancing; (G)the financing under this title is not being used to refinance any debt guaranteed by the Government; and (H)the financing under this title will be used only for— (i)refinancing existing indebtedness; or (ii)costs relating to the project financed under this title. .