[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3079 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3079

    To amend the Internal Revenue Code of 1986 to allow loans from 
 simplified employee pension accounts of small business owners for use 
                         in the small business.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2009

Ms. Speier (for herself, Mr. Lee of New York, Mr. Davis of Alabama, and 
 Mr. Thompson of California) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to allow loans from 
 simplified employee pension accounts of small business owners for use 
                         in the small business.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Relief Act of 2009''.

SEC. 2. LOANS FROM SIMPLIFIED EMPLOYEE PENSION ACCOUNTS OF SMALL 
              BUSINESS OWNERS FOR USE IN THE SMALL BUSINESS.

    (a) Exemption From Prohibited Transaction Rules.--Section 4975 of 
the Internal Revenue Code of 1986 (relating to tax on prohibited 
transactions) is amended by redesignating subsections (h) and (i) as 
subsections (i) and (j), respectively, and by inserting after 
subsection (g) the following new subsection:
    ``(h) Small Business Improvement Loans From Simplified Employee 
Pension Accounts of Small Business Owners.--
            ``(1) In general.--The prohibitions provided in subsection 
        (c) shall not apply to any qualified small business improvement 
        loan to a small business owner from a simplified employee 
        pension of such owner.
            ``(2) Qualified small business improvement loan.--For 
        purposes of this subsection, the term `qualified small business 
        improvement loan' means a loan from a simplified employee 
        pension the proceeds of which are used in the conduct of the 
        trade or business of the employer with respect to which such 
        simplified employee pension is established, including--
                    ``(A) in the case of a corporation, the acquisition 
                by the small business owner of stock in such 
                corporation at its original issue, and
                    ``(B) in the case of a partnership, the acquisition 
                by the small business owner of a capital or profits 
                interest in such partnership from such partnership.
            ``(3) Small business owner.--For purposes of this 
        subsection, the term `small business owner' means, with respect 
        to the employer with respect to which the simplified employee 
        pension is established, any individual who--
                    ``(A) in the case of an employer which is an 
                unincorporated trade or business, owns the entire 
                interest in such employer,
                    ``(B) in the case of an employer which is a 
                partnership, owns more than 10 percent of either the 
                capital or the profits interest in such employer 
                (determined before any acquisition described in 
                paragraph (2)), and
                    ``(C) in the case of an employer which is a 
                corporation, owns more than 10 percent of the stock of 
                such employer (determined before any acquisition 
                described in paragraph (2)).
            ``(4) Requirement that loan be repayable within 2 years.--
        Paragraph (1) shall not apply to any loan unless such loan, by 
        its terms, is required to be repaid within 2 years.
            ``(5) Requirement of level amortization.--Rules similar to 
        the rules of section 72(p)(2)(C) shall apply for purposes of 
        this subsection.
            ``(6) Termination.--A loan shall not be treated as a 
        qualified small business improvement loan if such loan is made 
        after December 31, 2011.''.
    (b) Conforming Amendment.--Subsection (e) of section 408 of such 
Code (relating to tax treatment of accounts and annuities) is amended 
by adding at the end the following new paragraph:
            ``(6) Exception for small business improvement loans from 
        simplified employee pension accounts of small business 
        owners.--In the case of a qualified small business improvement 
        loan (within the meaning of section 4975(h)) from a simplified 
        employee pension--
                    ``(A) such plan shall not fail to be treated as an 
                individual retirement plan under paragraph (2) or (3) 
                solely because of such loan, and
                    ``(B) such loan shall not be treated as a 
                distribution from such plan.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to loans made on or after September 1, 2008. For purposes of the 
preceding sentence, any distribution made before the date of the 
enactment of this Act which is recharacterized (before the end of the 
90-day period beginning with such date of enactment) as a loan shall be 
treated as a loan made on the date of such distribution (and any 
payments required to be made under such loan before such date of 
enactment shall be treated as timely made if made before the end of 
such 90-day period).
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