I 111th CONGRESS 1st Session H. R. 2281 IN THE HOUSE OF REPRESENTATIVES May 6, 2009 Mr. Kagen (for himself and Mr. Edwards of Texas) introduced the following bill; which was referred to the Committee on Small Business, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To establish a temporary program in the Small Business Administration to assist small business concerns by decreasing interest payments for certain loans, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Opportunity Act of 2009.

2.

Interest payment assistance for small business concerns with eligible loans

(a)

In general

To the extent of the funding made available under subsection (g), the Administrator of the Small Business Administration shall establish and implement a program under which the Administrator shall make, for each eligible loan of a small business concern— (1)100 percent of the payment of interest due each billing cycle with respect to such loan, during the period beginning on the effective date of this Act and ending at the conclusion of the first full fiscal year following such date; (2)75 percent of the payment of interest due each billing cycle with respect to such loan, during the second full fiscal year following such date; and (3)50 percent of the payment of interest due each billing cycle with respect to such loan, during the third full fiscal year following such date. (b)

Termination of program

The authority of the Administrator to make payments under subsection (a) terminates at the conclusion of the third full fiscal year following the effective date of this Act. (c)

Payments made to lender

The Administrator shall make the payments under subsection (a) directly to the financial institution to which such payments are due. (d)

No forced reimbursement

The Administrator may not require a small business concern to reimburse a payment appropriately made for such concern under subsection (a). (e)

Interest rates during program

If the interest rate for an eligible loan is negotiated subject to a maximum allowable rate imposed by the Small Business Administration, the financial institution making such loan may treat the interest rate of such loan as the maximum allowable rate during the period that the Administrator makes payments under subsection (a) with respect to such loan. On the date that the Administrator makes the final payment under subsection (a) with respect to such loan, the interest rate of such loan shall return to the rate originally negotiated. (f)

Definitions

In this section, the following definitions apply: (1)

Eligible loan

The term eligible loan means a loan guaranteed by the Small Business Administration and entered into after the effective date of this Act. (2)

Small business concern

The term small business concern has the meaning given such term in section 3 of the Small Business Act (15 U.S.C. 632). (g)

Funding

Of the amounts made available under title I of the Emergency Economic Stabilization Act of 2008 (Public Law 110–343; 12 U.S.C. 5201 et seq.), the Secretary of the Treasury shall make available to the Administrator of the Small Business Administration the amount requested by the Administrator to carry out this section, but not to exceed $3,375,000,000, and such amount shall be treated as having been made available for activities authorized by such Act. (h)

Effective date

This Act takes effect on the date that is 60 days after the date of the enactment of this Act.