1.Short title; table of
contents
(a)This Act may be cited
as the Small Business Financing and
Investment Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Small business lending enhancements
Sec. 101. Small lender outreach program.
Sec. 102. Rural lending outreach program.
Sec. 103. Community Express Program made permanent.
Sec. 104. Increased veteran participation program made
permanent.
Sec. 105. Leasing policy.
Sec. 106. National lender training program.
Sec. 107. Applications for repurchase of loans.
Sec. 108. Alternative size standard.
Sec. 109. Pilot program authority.
Sec. 110. Loans to cooperatives.
Sec. 111. Capital backstop program.
Sec. 112. Loans to finance goodwill.
Sec. 113. Appellate process and ombudsman.
Sec. 114. Extension of recovery and relief loan
benefits.
Sec. 115. Reduced documentation for business stabilization
loans.
Sec. 116. Expanded eligibility for business stabilization
loans.
Sec. 117. Increased amount of business stabilization
loans.
Sec. 118. Extension of business stabilization
loans.
Sec. 119. Study and report on business stabilization
loans.
Sec. 120. Delayed repayment for small business concerns in
areas with high unemployment.
Sec. 121. SBA secondary market lending authority made
permanent.
Sec. 122. SBA secondary market lending authority
expanded.
Sec. 123. Increased loan limits.
Sec. 124. Real estate appraisals.
Sec. 125. Additional support for Express Loan
Program.
Sec. 126. Loans used to purchase unoccupied manufacturing
centers or equipment.
Sec. 127. 100 percent guarantee for small business concerns
owned and controlled by veterans.
Sec. 128. Deferred repayment for certain small business
concerns.
Sec. 129. Authorization of appropriations.
Title II—CDC Economic Development Loan Program
Subtitle A—General Provisions
Sec. 201. Program levels.
Sec. 202. Definitions.
Subtitle B—Certified Development Companies
Sec. 211. Certified development companies.
Sec. 212. Certified development company; operational
requirements.
Sec. 213. Accredited lenders program.
Sec. 214. Premier certified lender program.
Sec. 215. Multi-State operations.
Sec. 216. Guaranty of debentures.
Sec. 217. Economic development through debentures.
Sec. 218. Project funding requirements.
Sec. 219. Private debenture sales and pooling of
debentures.
Sec. 220. Foreclosure and liquidation of loans.
Sec. 221. Reports and regulations.
Sec. 222. Program name.
Subtitle C—Miscellaneous
Sec. 231. Report on standard operating procedures.
Sec. 232. Alternative size standard.
Title III—Microlending expansion
Sec. 301. Microloan credit building initiative.
Sec. 302. Flexible credit terms.
Sec. 303. Increased program participation.
Sec. 304. Increased limit on intermediary
borrowing.
Sec. 305. Expanded borrower education assistance.
Sec. 306. Young Entrepreneurs program.
Sec. 307. Interest rates and loan size.
Sec. 308. Reporting requirement.
Sec. 309. Surplus interest rate subsidy for
businesses.
Sec. 310. Authorization of appropriations.
Title IV—Small business investment company
modernization
Sec. 401. Increased investment from States.
Sec. 402. Expedited licensing for experienced
applicants.
Sec. 403. Revised leverage limitations for successful
SBICs.
Sec. 404. Consistency for cost control.
Sec. 405. Investment in veteran-owned small
businesses.
Sec. 406. Tangible net worth.
Sec. 407. Development of agency record.
Sec. 408. Program levels.
Title V—Investment in small manufacturers and renewable energy
small businesses
Subtitle A—Enhanced New Markets Venture Capital
Program
Sec. 501. Expansion of New Markets Venture Capital
Program.
Sec. 502. Improved nationwide distribution.
Sec. 503. Increased investment in small business concerns
engaged primarily in manufacturing.
Sec. 504. Expanded uses for operational assistance in
manufacturing.
Sec. 505. Updating definition of low-income geographic
area.
Sec. 506. Expanding operational assistance to conditionally
approved companies.
Sec. 507. Limitation on time for final approval.
Sec. 508. Streamlined application for New Markets Venture
Capital Program.
Sec. 509. Elimination of matching requirement.
Sec. 510. Simplified formula for operational assistance
grants.
Sec. 511. Financing with respect to veterans.
Sec. 512. Authorization of appropriations and enhanced
allocation for small manufacturing.
Subtitle B—Expanded investment in small business renewable
energy
Sec. 521. Expanded investment in renewable energy.
Sec. 522. Renewable Energy Capital Investment Program made
permanent.
Sec. 523. Expanded eligibility for small
businesses.
Sec. 524. Expanded uses for operational assistance in
manufacturing and small businesses.
Sec. 525. Expansion of Renewable Energy Capital Investment
Program.
Sec. 526. Simplified fee structure to expedite
implementation.
Sec. 527. Increased operational assistance grants.
Sec. 528. Authorizations of appropriations.
Title VI—Small business health information technology financing
program
Sec. 601. Small business health information technology
financing program.
Title VII—Small business early-stage investment
program
Sec. 701. Small business early-stage investment
program.
Sec. 702. Prohibitions on earmarks.
Title VIII—SBA disaster program reform
Sec. 801. Revised collateral requirements.
Sec. 802. Increased limits.
Sec. 803. Revised repayment terms.
Sec. 804. Revised disbursement process.
Sec. 805. Grant program.
Sec. 806. Regional disaster working groups.
Sec. 807. Outreach grants for loan applicant
assistance.
Sec. 808. Homeowners impacted by toxic drywall.
Sec. 809. Authorization of appropriations.
Title IX—Regulations
Sec. 901. Regulations.
Title X—Temporary employee services franchises
Sec. 1001. Temporary employee services franchises.
Title XI—Study on private sector lending
Sec. 1101. Study on private sector lending.
Title XII—Study on increases in certain caps
Sec. 1201. Study on increases in certain caps.
Title XIII—Rural outreach
Sec. 1301. Rural outreach.
Title XIV—Study relating to medical technology
Sec. 1401. Study relating to medical technology.
Title XV—Study on additional credit risk factors
Sec. 1501. Study on additional credit risk factors.
<enum>I</enum><header>Small
business lending enhancements</header>
<section id="HC428F35C42544251987BC7854FD58DC9"><enum>101.</enum><header>Small lender
outreach program</header><text display-inline="no-display-inline">Section 7(a)
of the Small Business Act (15 U.S.C. 636(a)) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H899948B6B5F84024A67816AD897D705B" style="OLC">
<paragraph id="H30BB1F05B5DB422DA550F65E2F15B766"><enum>(34)</enum><header>Small lender
outreach program</header><text>The Administrator shall establish and carry out
a program to provide support to regional, district, and branch offices of the
Administration to assist small lenders, who do not participate in the Preferred
Lenders Program, to participate in the programs under this
subsection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H349E68102C4A42FD842A0B4156FBD76A"><enum>102.</enum><header>Rural lending
outreach program</header><text display-inline="no-display-inline">Section 7(a)
of the Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is
further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H15B6FAEDF88442D7A2593FFF57B0C324" style="OLC">
<paragraph id="HE6825CE9B7A44CF8955CEE5A7204DC02"><enum>(35)</enum><header>Rural lending
outreach program</header>
<subparagraph id="H28A478A58DAF4BDCABCC3ECEB9B7E1E0"><enum>(A)</enum><header>In
general</header><text>The Administrator shall establish and carry out a rural
lending outreach program (hereinafter referred to in this paragraph as the
<quote>program</quote>) to provide loans under this subsection in accordance
with this paragraph.</text>
</subparagraph><subparagraph id="H340CFEFFFA6340FBB3D9FEEF96F0F5A8"><enum>(B)</enum><header>Maximum
participation</header><text>A loan under the program shall include the maximum
participation levels by the Administrator permitted for loans made under this
subsection.</text>
</subparagraph><subparagraph id="HA370A44BFBD24AF0B1134D23011E6959"><enum>(C)</enum><header>Maximum loan
amount</header><text display-inline="yes-display-inline">The maximum amount of
a loan under the program shall be $250,000.</text>
</subparagraph><subparagraph id="H155163923D2742148672E4B6DC2C2DBD"><enum>(D)</enum><header>Use of rural
lenders</header><text>The program shall be carried out through lenders located
in a rural area (as such term is defined under subsection (m)(11)(C)) or, if a
small business concern located in a rural area does not have a lender located
within 30 miles of the principal place of business of such concern, through any
lender chosen by such concern that provides loans under this subsection.</text>
</subparagraph><subparagraph id="H22E0C00D2F344FF0B77FCAB95968AFA0"><enum>(E)</enum><header>Time for
approval</header><text>The Administrator shall approve or disapprove a loan
under the program within 36 hours.</text>
</subparagraph><subparagraph id="H6128B88367FD4A4097A88F95155A789D"><enum>(F)</enum><header>Documentation</header><text>The
program shall use abbreviated application and documentation
requirements.</text>
</subparagraph><subparagraph id="HAAAEE249E90C4433B94BCE973DADA499"><enum>(G)</enum><header>Credit
standards</header><text>Minimum credit standards, as the Administrator
considers necessary to limit the rate of default on loans made under the
program, shall
apply.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB5E9A40E560A4E859A1590E39FA83EFA"><enum>103.</enum><header>Community
Express Program made permanent</header><text display-inline="no-display-inline">Section 7(a) of the Small Business Act (15
U.S.C. 636(a)), as amended by this Act, is further amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H109ABB8736B644F3942A5555261CEDC8" style="OLC">
<paragraph id="H4E768358CDAA4456884864856E81AE4F"><enum>(36)</enum><header>Community
Express Program</header>
<subparagraph id="HAAC5694296614E03A0B8C4702A2E53E3"><enum>(A)</enum><header>In
general</header><text>The Administrator shall carry out a Community Express
Program to provide loans under this subsection in accordance with this
paragraph.</text>
</subparagraph><subparagraph id="H8D42F8CCDD1145CC93A66D87737AA7B6"><enum>(B)</enum><header>Requirements</header><text>For
a loan made under the Community Express Program, the following shall
apply:</text>
<clause id="HFD41E00E06864FA59CA0717DEF602192"><enum>(i)</enum><text>The loan shall be
in an amount not exceeding $250,000.</text>
</clause><clause id="H6DFFCF31FE434E0982FA3826A992122E"><enum>(ii)</enum><text display-inline="yes-display-inline">The loan shall be made to a small business
concern the majority ownership interest of which is directly held by
individuals the Administrator determines are, without regard to the geographic
location of such individuals, women, members of qualified Indian tribes,
socially or economically disadvantaged individuals, veterans, or members of the
reserve components of the Armed Forces.</text>
</clause><clause id="H6BD0C79D850646049D5D0A3F00802835"><enum>(iii)</enum><text>The loan shall
comply with the collateral policy of the Administration.</text>
</clause><clause id="H0A0F0B90420D43018101EB5DB7E23C2C"><enum>(iv)</enum><text>The loan shall
include terms requiring the lender to provide, at the expense of the lender,
technical assistance to the borrower through the lender or a third-party
provider.</text>
</clause><clause id="H94E822A772A94DF4832C34BEBF1BE29F"><enum>(v)</enum><text>The Administrator
shall approve or disapprove the loan within 36
hours.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HCEC9DD0585BD474C91A54378A8A0BAB3"><enum>104.</enum><header>Increased
veteran participation program made permanent</header><text display-inline="no-display-inline">Section 7(a) of the Small Business Act (15
U.S.C. 636(a)), as amended by this Act, is further amended—</text>
<paragraph id="H88714D7630654BDDAD60F93C2B89438F"><enum>(1)</enum><text>by redesignating
the second paragraph (32), as added by section 208 of the Military Reservist
and Veteran Small Business Reauthorization and Opportunity Act of 2008 (Public
Law 110–186; 122 Stat. 631), as paragraph (33); and</text>
</paragraph><paragraph id="H490C69DD045C4E9DA8DEE0BB751E6107"><enum>(2)</enum><text>in paragraph (33),
as so redesignated by paragraph (1) of this section—</text>
<subparagraph id="HEE26E33BE29347568D8FA5F23E69E924"><enum>(A)</enum><text>by striking
<quote>pilot program</quote> each place it appears and inserting
<quote>program</quote>;</text>
</subparagraph><subparagraph id="H4C9B0AB65FB54E69A01FC4C8024231AE"><enum>(B)</enum><text>by striking
subparagraphs (C) and (F); and</text>
</subparagraph><subparagraph id="H5A97F6483DF64FFD84C57806BBAF1FD3"><enum>(C)</enum><text>by redesignating
subparagraphs (D) and (E) as subparagraphs (C) and (D), respectively.</text>
</subparagraph></paragraph></section><section id="H318C5F8DD0D442359CC92DD92140FFCF"><enum>105.</enum><header>Leasing
policy</header><text display-inline="no-display-inline">Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is further
amended by striking paragraph (28) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HDC17EE98391F443D89139DE4877BE535" style="OLC">
<paragraph id="H55EC1FEA75D24BB4A4FD95D525317D6D"><enum>(28)</enum><header>Leasing</header><text display-inline="yes-display-inline">If a loan under this subsection is used to
acquire or construct a facility, the assisted small business concern—</text>
<subparagraph id="HC65BFCD108554447A17647C9B34373B9"><enum>(A)</enum><text>shall permanently
occupy and use not less than 50 percent of the space in such facility;
and</text>
</subparagraph><subparagraph id="H9CD3913A865E4F18A0F178ED83050D16"><enum>(B)</enum><text display-inline="yes-display-inline">may, on a temporary or permanent basis,
lease to others not more than 50 percent of the space in such
facility.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H46E3E0B8FD504048A0E61D1F8EEA0756"><enum>106.</enum><header>National lender
training program</header>
<subsection id="HC31C9B27102A405FBDC272249710C99C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is further
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H737DD4C46729402FA7A4EE91DB7707E2" style="OLC">
<paragraph id="H710A4673DFE8400E8A4EC030F4A0B6B1"><enum>(37)</enum><header>National lender
training program</header>
<subparagraph id="HF912F83DB6744974A85B4A8DFEA28799"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Administrator
shall establish and carry out, through the regional offices of the
Administration, a lender training program for new and existing lenders under
this subsection with respect to the lending systems, policies, and procedures
of the Administration.</text>
</subparagraph><subparagraph id="HB9F73507FD3B4804A5C6421621247254"><enum>(B)</enum><header>Fees</header><text>The
Administrator shall charge a fee for the program established under subparagraph
(A) to reduce the cost of such program to zero.</text>
</subparagraph><subparagraph id="H787FE2B80BBA4EE88B6D4D026139CFA1"><enum>(C)</enum><header>Limitation</header><text>The
program established under subparagraph (A) may not be carried out by contract
with a nongovernmental
entity.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H78333A1A7151418D9B73A60781BED8CE"><enum>(b)</enum><header>Participation</header><text>An
entity may not be permitted to participate in any program under the Small
Business Act (15 U.S.C. 631 et seq.) or the Small Business Investment Act of
1958 (15 U.S.C. 661 et seq.) that is established or amended under this Act, as
a lending or investment entity or as an agent of the Small Business
Administration, unless such entity satisfies at least one of the
following:</text>
<paragraph id="H1D3CCE7DCD4842E9B070C2DF975B1F37"><enum>(1)</enum><text>The entity has as
the primary mission of the entity the financing or development of small
business concerns.</text>
</paragraph><paragraph id="HE73A08163FBF49FD9E89804387813834"><enum>(2)</enum><text display-inline="yes-display-inline">The entity is primarily engaged in the
business of banking, investing, or entrepreneurial development and does not
engage in activities which are not incidental to the business of banking,
investing, or entrepreneurial development.</text>
</paragraph></subsection></section><section id="H641336A15F9F43B28F91DC65D03A403C"><enum>107.</enum><header>Applications
for repurchase of loans</header><text display-inline="no-display-inline">Section 7(a) of the Small Business Act (15
U.S.C. 636(a)), as amended by this Act, is further amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H35E93C2BA50046B08D372230383ACD92" style="OLC">
<paragraph id="H5BB88FE85DB649EB8D2538EE410401AB"><enum>(38)</enum><header>Applications
for repurchase of loans</header>
<subparagraph id="H09E202AEA51A46C0B9953ECD3EC273B7"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 45
days after the date of the receipt of a claim from a lender for proper payment
of the guaranteed portion of a loan under this subsection due to default, the
Administrator shall make a final determination with respect to the approval or
denial of such claim.</text>
</subparagraph><subparagraph id="H6CF2F5AB15454B138AFC3B5F68F08932"><enum>(B)</enum><header>Late
determinations</header><text>If the Administrator does not make a final
determination under subparagraph (A) in the time period specified in such
subparagraph, the claim shall be approved and paid promptly.</text>
</subparagraph><subparagraph id="HC8D690C5B9A249F7ABC1DE0A4859DA22"><enum>(C)</enum><text display-inline="yes-display-inline">If the lender demonstrates, with respect to
a claim for payment described in subparagraph (A), that it followed the
applicable requirements of the National Lender Training Program as established
under paragraph (37) of this section, the Administrator shall pay the claim
unless the Administrator has clear and convincing evidence demonstrating that
the lender failed to comply with regulatory requirements established by the
Administrator.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H2636A304FD124C808ED7F3B7F7173645"><enum>108.</enum><header>Alternative
size standard</header>
<subsection id="HC6A80D49ECB24D22A44C364453581B24"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 3(a) of the
Small Business Act (15 U.S.C. 632(a)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H3E335665691D470184C130BA55F277ED" style="OLC">
<paragraph id="HC0D4E9BB356141F8920689F9C71FF95F"><enum>(5)</enum><text display-inline="yes-display-inline">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) to use an alternative size standard. The
alternative size standard shall be based on factors including the maximum
tangible net worth and average net income of a business
concern.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFD11AAC63B04463CBDE543F4FD8DFA8D"><enum>(b)</enum><header>Applicability</header><text display-inline="yes-display-inline">Until the Administrator establishes under
section 3(a)(5) of the Small Business Act, as added by subsection (a) of this
section, an alternative size standard for use by a lender making a loan under
section 7(a) of such Act, the alternative size standard in section 121.301(b)
of title 13, Code of Federal Regulations, shall apply in such a case.</text>
</subsection></section><section id="HAEFFAADE5198483C86ADA3E569A4C4F7"><enum>109.</enum><header>Pilot program
authority</header><text display-inline="no-display-inline">Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is further
amended by striking paragraph (25) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H2FFBB780607246EF8381F630AAEC15F5" style="OLC">
<paragraph id="HA02775CC933448C1B4A544A5F6DEA909"><enum>(25)</enum><header>Limitation on
conducting pilot projects</header>
<subparagraph id="HDD68A297BBCB481F921F364F9E6630FA"><enum>(A)</enum><header>Limitation on
number</header><text display-inline="yes-display-inline">Not more than 10
percent of the total number of loans guaranteed in any fiscal year under this
subsection may be awarded as part of a pilot program.</text>
</subparagraph><subparagraph id="H73EBF7B28D004DB3AA861C66A5148278"><enum>(B)</enum><header>Dollar
limitations</header>
<clause id="H2D409BD5A82940CE99879F210CE190CE"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">With respect to any
pilot program under this subsection established on or after the date of the
enactment of the Small Business Financing and Investment Act of 2009, no loan
shall be made under such program if such loan would result in the total amount
of loans made during a fiscal year under all such programs to be in excess of 5
percent of the total amount of loans guaranteed in such fiscal year under this
subsection.</text>
</clause><clause id="H8681718A7E1540D0819983E3C242B826"><enum>(ii)</enum><header>Certain
pre-existing programs</header><text display-inline="yes-display-inline">With
respect to any pilot program under this subsection established before the date
of the enactment of the Small Business Financing and Investment Act of 2009, no
loan shall be made under such program if such loan would result in the total
amount of loans made during a fiscal year under all such programs to be in
excess of 10 percent of the total amount of loans guaranteed in such fiscal
year under this subsection.</text>
</clause></subparagraph><subparagraph id="H29C6E26A95DD4951AB74A80F9B1A22AF"><enum>(C)</enum><header>Expiration</header>
<clause id="HE536F16ECC804FF4AE1B277BF09FB1F6"><enum>(i)</enum><header>In
general</header><text>Except as provided in clause (iii), the duration of any
pilot program under this subsection may not exceed 3 years.</text>
</clause><clause id="H5596D8A687154C8787F67D7213641550"><enum>(ii)</enum><header>Designation as
new program</header><text>For purposes of this subparagraph, a pilot program
shall not be treated as a new pilot program solely on the basis of a
modification or change in the pilot program, including the change of its
name.</text>
</clause><clause id="H0875B259F9D64FFCA9D5871ED9633EBE"><enum>(iii)</enum><header>Existing
programs</header><text display-inline="yes-display-inline">With respect to any
pilot program in existence on the date of the enactment of the Small Business
Financing and Investment Act of 2009, such program may continue in effect for a
period not exceeding 3 years after such date without regard to the duration of
such program before such date.</text>
</clause></subparagraph><subparagraph id="HFD0142B3A40D423D8BD0585FBF349F80"><enum>(D)</enum><header>Regulations</header>
<clause id="HAC75B96BD12E444C807CB821357D56E6"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">With respect to each
pilot program under this subsection, including each pilot program in existence
on the date of the enactment of the Small Business Financing and Investment Act
of 2009, the Administrator shall—</text>
<subclause id="HD1A25049FAF249A39E59F17C78A45CA9"><enum>(I)</enum><text display-inline="yes-display-inline">issue regulations for such program after
providing notice in the Federal Register and an opportunity for comment;
and</text>
</subclause><subclause id="HA9BB51FF2A6743488A214A4EED397185"><enum>(II)</enum><text>ensure that such
regulations are published in the Code of Federal Regulations.</text>
</subclause></clause><clause id="H21B856B6F721446FB85E6F4B1BF222B0"><enum>(ii)</enum><header>Pilot programs
established after date of enactment</header><text display-inline="yes-display-inline">With respect to any pilot program
established after the date of the enactment of the Small Business Financing and
Investment Act of 2009, such program shall not take effect until the
requirements under this subparagraph are satisfied.</text>
</clause></subparagraph><subparagraph id="H22C43A3A0B84451DAD7D9E7F12C39AE7"><enum>(E)</enum><header>Repeal of
authority to waive certain rules</header>
<clause id="HE4E9A42BE3964A3F9FEDB8802380DC55"><enum>(i)</enum><header>In
general</header><text>Notwithstanding section 120.3 of title 13, Code of
Federal Regulations, the Administrator may not from time to time suspend,
modify, or waive rules for a limited period of time to test new programs or
ideas with respect to this subsection, unless such suspension, modification, or
waiver is explicitly authorized by Act of Congress.</text>
</clause><clause id="H31C41D19D81649918E8A80CD464A402C"><enum>(ii)</enum><header>Existing pilot
programs</header><text display-inline="yes-display-inline">Nothing under clause
(i) may be construed to affect a pilot program in existence on the date of the
enactment of the Small Business Financing and Investment Act of 2009.</text>
</clause></subparagraph><subparagraph id="H4F276689AAF14546A0A159D0F4003331"><enum>(F)</enum><header>Pilot
program</header><text>For purposes of this paragraph, the term <term>pilot
program</term> means any lending program initiative, project, innovation, or
other activity not specifically authorized by Act of
Congress.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HD6BC5E0604674275B24602215FF8D8A9"><enum>110.</enum><header>Loans to
cooperatives</header><text display-inline="no-display-inline">Section 7(a) of
the Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is further
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H524AF4022F5C4800B645BF28B8605F2B" style="OLC">
<paragraph id="HB790CDBD3A3D4FD5BE69FBDB0F4DFF9C"><enum>(39)</enum><header>Cooperatives</header><text display-inline="yes-display-inline">The Administration may provide loans under
this subsection to any cooperative that—</text>
<subparagraph id="H8F4D994F43B543C58F5C64827CD5C61E"><enum>(A)</enum><text>is not organized
as a tax-exempt entity;</text>
</subparagraph><subparagraph id="H33DAAF41ED3D4FC6AD92B88B679D152F"><enum>(B)</enum><text>is engaged in a
legal business activity;</text>
</subparagraph><subparagraph id="H3B7EBC9C3A884599AA3309D559991696"><enum>(C)</enum><text>obtains financial
benefits for the cooperative and for the members of such cooperative;
and</text>
</subparagraph><subparagraph id="H3C405976BF9B4081A306D2FF77624D82"><enum>(D)</enum><text>is eligible under
applicable size standards of the Administration, including that any business
entity that is a member of such cooperative is eligible under applicable size
standards of the
Administration.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H11E41CD9912C4EF986FB8B82E7661525"><enum>111.</enum><header>Capital
backstop program</header><text display-inline="no-display-inline">Section 7(a)
of the Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is
further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H94064A377B654E848A90FA5248F35746" style="OLC">
<paragraph display-inline="no-display-inline" id="H5220065B567C49D080023EC011BF1B62"><enum>(40)</enum><header>Capital
backstop program</header>
<subparagraph id="H5C2A32BECBF849FB8F84106BD7D24BDB"><enum>(A)</enum><header>In
general</header><text>The Administrator shall establish a process under which a
small business concern may submit an application to the Administrator for the
purpose of securing a loan under this subsection. With respect to such
application, the Administrator shall collect all information necessary to
determine the creditworthiness and repayment ability of an applicant and shall
determine if such application meets the eligibility and credit standards that a
lender would be required to apply to approve a loan under this
subsection.</text>
</subparagraph><subparagraph id="H4CD7B5133DEB4961A8131A0B301DA2A5"><enum>(B)</enum><header>Participation of
lenders</header>
<clause display-inline="no-display-inline" id="H7FB4414D81CD4D108FDFB8E71C34FBDE"><enum>(i)</enum><header>In
general</header><text>The Administrator shall establish a process under which
the Administrator makes available to lenders each loan application submitted
and determined to meet basic eligibility and credit standards under
subparagraph (A) for the purpose of such lenders originating, underwriting,
closing, and servicing the loan for which the applicant applied.</text>
</clause><clause id="H1D581E80722F4EFE983C71136B7441EB"><enum>(ii)</enum><header>Eligibility</header><text>Lenders
are eligible to receive a loan application described in clause (i) if they
participate in the programs established under this subsection.</text>
</clause><clause id="H449A3276CDA240AAAF9E2563A8B15487"><enum>(iii)</enum><header>Local
lenders</header><text display-inline="yes-display-inline">The Administrator
shall first make available a loan application described in clause (i) to
lenders within 100 miles of the principal office of the loan applicant.</text>
</clause><clause id="H69CB9D30694F4599BBA242C1B32A3892"><enum>(iv)</enum><header>Preferred
lenders</header><text display-inline="yes-display-inline">If a lender described
in clause (iii) does not agree to originate, underwrite, close, and service the
loan applied for within 5 business days of receiving a loan application
described in clause (i), the Administrator shall subsequently make available
such loan application to lenders in the Preferred Lenders Program under
paragraph (2)(C)(ii) of this subsection.</text>
</clause><clause id="HC56F89F6F5B943738B2C2123790EBEAE"><enum>(v)</enum><header>Authority of
Administration to lend</header><text display-inline="yes-display-inline">If a
lender described in clauses (iii) or (iv) does not agree to originate,
underwrite, close, and service the loan applied for within 10 business days of
receiving a loan application described in clause (i), the Administrator shall
originate, underwrite, close, and service such loan.</text>
</clause></subparagraph><subparagraph id="H5C70FCBC34AE4972BAE34CECA7E8CBF4"><enum>(C)</enum><header>Asset
sales</header><text display-inline="yes-display-inline">The Administrator shall
offer to sell loans made by the Administrator under this paragraph. Such sales
shall be made through the semi-annual public solicitation (in the Federal
Register and in other media) of offers to purchase. The Administrator may
contract with vendors for due diligence, asset valuation, and other services
related to such sales. The Administrator may not sell any loan under this
subparagraph for less than 90 percent of the net present value of the loan, as
determined and certified by a qualified third party.</text>
</subparagraph><subparagraph id="HE35D25E76C6740E6BBE582DCA67F4A05"><enum>(D)</enum><header>Loans not
sold</header><text display-inline="yes-display-inline">The Administrator shall
maintain and service loans made by the Administrator under this paragraph that
are not sold through the asset sales under this paragraph.</text>
</subparagraph><subparagraph id="H131F13C684B44302A02E2FE1978213DF"><enum>(E)</enum><header>Effective
dates</header><text display-inline="yes-display-inline">This paragraph shall
have effect on each date during the period beginning on the date of enactment
of this paragraph and ending on September 30, 2011, and on any other date after
such period if—</text>
<clause id="H280034C582C643AEA2C571055F03FB81"><enum>(i)</enum><text>such date occurs
during a period that—</text>
<subclause id="HAC3C7149710F4EB89AB13CB7441CFDF3"><enum>(I)</enum><text>begins on the date
the Bureau of Economic Analysis, or any successor organization, makes a
determination that the gross domestic product of the United States has
decreased for three consecutive quarters; and</text>
</subclause><subclause id="HDE5DE83BE68D4BE9B54119700A1F9AA3"><enum>(II)</enum><text>ends on the date
the Bureau of Economic Analysis, or any successor organization, makes a
determination that the gross domestic product of the United States has
increased for two consecutive quarters; and</text>
</subclause></clause><clause id="H050018CCC818474CB16E9B9D6A89302D"><enum>(ii)</enum><text>the number of
loans provided under this subsection prior to such date in the fiscal year
including such date is at least 30 percent less than the number of such loans
provided prior to the same point in the previous fiscal year.</text>
</clause></subparagraph><subparagraph id="H7929E5C727564F6EB8F3F0DFD1629780"><enum>(F)</enum><header>Implementation</header><text display-inline="yes-display-inline">The Administrator shall establish a group
of at least 250 individuals available to carry out activities under this
paragraph on any date on which this paragraph has effect under subparagraph
(E). The Administrator shall provide to such group the training necessary to
carry out activities under this paragraph. The Administrator shall ensure that
each individual in such group with loan application evaluation and underwriting
responsibilities has at least 2 years experience with respect to such
responsibilities.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="HBED699B03DB44C5F8E7C968B64DCB153"><enum>(G)</enum><header>Application of
other law</header><text display-inline="yes-display-inline">Nothing in this
paragraph shall be construed to exempt any activity of the Administrator under
this paragraph from the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.).</text>
</subparagraph><subparagraph id="H793F6471BE9740D1A60D990BF20F1A23"><enum>(H)</enum><header>Authorization of
appropriations</header>
<clause id="HF92CBB1F576F4DEA8D50F4964A1956AF"><enum>(i)</enum><header>Program
levels</header><text>The Administrator is authorized to make loans under this
paragraph in an amount that is equal to half the amount authorized for loans
under this subsection other than loans under this paragraph.</text>
</clause><clause id="H59612F0F4057410C9C15C09103A76BF4"><enum>(ii)</enum><header>Authorization
of appropriations</header><text>In addition to amounts made available to carry
out this subsection, there are authorized to be appropriated such sums as may
be necessary to carry out this
paragraph.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB7C02DA80EB24CC9B80E1B7985E65229"><enum>112.</enum><header>Loans to
finance goodwill</header><text display-inline="no-display-inline">Section 7(a)
of the Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is
further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF874864D3E0F4AB89CCA1B3EF2C2EB46" style="OLC">
<paragraph id="H9241CFC0A8AE48D7A2F81F8306BACE1D"><enum>(41)</enum><header>Goodwill</header><text display-inline="yes-display-inline">The Administrator may not apply an
application, processing, or approval standard to a loan for the purpose of
financing goodwill under this subsection, unless such standard applies to all
loans under this
subsection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H1026FFA985054118949935919156BD27"><enum>113.</enum><header>Appellate
process and ombudsman</header><text display-inline="no-display-inline">The
Small Business Act (15 U.S.C. 631 et seq.) is amended—</text>
<paragraph id="H89FA1B916BDF47AB9A2BFE66F5BA8B40"><enum>(1)</enum><text>by redesignating
section 44 as section 45; and</text>
</paragraph><paragraph id="H691F3B676D174366B3C4FAEBACCB0C6E"><enum>(2)</enum><text>by inserting after
section 43 the following:</text>
<quoted-block display-inline="no-display-inline" id="H300A4327A1894851ACE760D956BA94B5" style="OLC">
<section id="H9BDB1FAD994A4813B8DE9C020EBAC444"><enum>44.</enum><header>Appellate
process and ombudsman</header>
<subsection id="H3E10BA5DEA4D4B9F806E66198BB80C3D"><enum>(a)</enum><header>Appellate
process</header>
<paragraph id="H343BDAA91EF84C47B10390C984D7BA06"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 270
days after the date of the enactment of the Small Business Financing and
Investment Act of 2009, the Administrator shall establish an independent
appellate process within the Administration. The process shall be available to
review material determinations made by the Administration that affect a lender
or investment company that participates or is applying to participate in a
program administered by the Administration.</text>
</paragraph><paragraph id="H30E3F0E7DE2542DD91E14652F3C146F8"><enum>(2)</enum><header>Review
process</header><text display-inline="yes-display-inline">In establishing the
independent appellate process under paragraph (1), the Administrator shall
ensure that—</text>
<subparagraph id="HA8B73F1BA72941DC930542B0B1C94144"><enum>(A)</enum><text>any appeal of a
material determination by the Administration is heard and resulting
recommendations are provided expeditiously; and</text>
</subparagraph><subparagraph id="H7E1FECEB92EB45119991674FEC0E3FFC"><enum>(B)</enum><text>appropriate
safeguards exist for protecting the appellant from retaliation by
Administration employees.</text>
</subparagraph></paragraph><paragraph id="HC90747FF6F494D29B2C89B0F54FE4096"><enum>(3)</enum><header>Comment
period</header><text display-inline="yes-display-inline">Not later than 180
days after the date of the enactment of the Small Business Financing and
Investment Act of 2009, the Administrator shall provide an opportunity for
notice and comment on proposed guidelines for the establishment of an
independent appellate process under this section.</text>
</paragraph></subsection><subsection id="H506D91E3C3444A3E9ECD8B48D6E0C83C"><enum>(b)</enum><header>Agency
Ombudsman</header>
<paragraph id="H2CE05DABD8EA47FC91B76F03CBDC35BC"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than 180 days after the date of
the enactment of the Small Business Financing and Investment Act of 2009, the
Administrator shall appoint an ombudsman.</text>
</paragraph><paragraph id="HC3989CDA528C4F5A977BB5A3711CBFC3"><enum>(2)</enum><header>Duties</header><text display-inline="yes-display-inline">The ombudsman appointed in accordance with
paragraph (1) shall—</text>
<subparagraph id="HA99143CBA2034AEEB1AB1122DF8B3C1B"><enum>(A)</enum><text>act as a liaison
between the Administration and any lender or investment company that
participates or is applying to participate in a program administered by the
Administration with respect to a problem such entity may have in dealing with
the Administration resulting from a material determination made by the
Administration; and</text>
</subparagraph><subparagraph id="HE6100655BAFA437EBD542E81A7E1503E"><enum>(B)</enum><text>ensure that
safeguards exist to encourage complainants to come forward and preserve
confidentiality.</text>
</subparagraph></paragraph></subsection><subsection id="H70A8698E4BE341A686D8FD3C47820924"><enum>(c)</enum><header>Other
authority</header><text display-inline="yes-display-inline">An individual
carrying out the independent appellate process established under subsection (a)
or the position of ombudsman established under subsection (b) is authorized
to—</text>
<paragraph id="H923E64A22A3643738F68BD85C36D8863"><enum>(1)</enum><text>examine records
and documents relating to a matter under review pursuant to such subsections;
and</text>
</paragraph><paragraph id="HEED25E52FDE943E5B8CAF08FAD6BB2FC"><enum>(2)</enum><text>initiate the
review of a matter under such subsections if such individual believes that
Administration procedures have not been followed as intended with respect to
such matter, without regard to whether an appeal or complaint has been
made.</text>
</paragraph></subsection><subsection id="H9278D285820D456FA7A671A795077F1F"><enum>(d)</enum><header>Limitations</header>
<paragraph id="H990A37A400DA4BAE90ABA9FB13593363"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">An individual
carrying out the independent appellate process established under subsection (a)
or the position of ombudsman established under subsection (b) may not, as a
result of the authority provided under this section—</text>
<subparagraph id="H95F401515DD5426C876CB26C2AE4A403"><enum>(A)</enum><text>make, change, or
set aside a law, policy, or administrative decision;</text>
</subparagraph><subparagraph id="H497EF6289FFB48F5AFC01FB2BB4A5DD9"><enum>(B)</enum><text>make binding
decisions or determine rights;</text>
</subparagraph><subparagraph id="HF147710A0474430DAFF84E8EF68FA847"><enum>(C)</enum><text>directly compel an
entity to implement the recommendations of such individual; or</text>
</subparagraph><subparagraph id="H8A2268F27D244D25B6D6976E19A405FB"><enum>(D)</enum><text>accept
jurisdiction over an issue that is pending in a legal forum.</text>
</subparagraph></paragraph><paragraph id="HABE01BE900F54050821FC40F01813E8C"><enum>(2)</enum><header>Rule of
construction</header><text display-inline="yes-display-inline">Activities
carried out under this section may not be construed—</text>
<subparagraph id="H0D78C085949241A7AAF5E1ADE94995CB"><enum>(A)</enum><text>as a formal
investigation, formal hearing, or binding decision;</text>
</subparagraph><subparagraph id="H54516A816D9546A2A7C1AE00C56703C6"><enum>(B)</enum><text>as limiting any
remedy or right of appeal;</text>
</subparagraph><subparagraph id="H3ACDB177132D4A79807E532B1490736C"><enum>(C)</enum><text display-inline="yes-display-inline">as affecting any procedure concerning
grievances, appeals, or administrative matters under law; or</text>
</subparagraph><subparagraph id="H73009E5E729A4A379A9D208CE32A2C62"><enum>(D)</enum><text>as a substitute
for an administrative or judicial proceeding.</text>
</subparagraph></paragraph></subsection><subsection id="H9BDE73EE686346C2A4D1879B719F60EF"><enum>(e)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than one year after the date of
the enactment of the Small Business Financing and Investment Act of 2009 and
annually thereafter, the Administrator shall submit to the Committee on Small
Business of the House of Representatives and the Committee on Small Business
and Entrepreneurship of the Senate a report describing and providing the status
of appeals made under subsection (a) and complaints made under subsection
(b).</text>
</subsection><subsection id="HFBFBA2EFF1424CCBBADF69729A3B4367"><enum>(f)</enum><header>Definitions</header><text>In
this section, the following apply:</text>
<paragraph id="H9A9BE59323D14AE3853C2966CD3BC5A4"><enum>(1)</enum><header>Material
determination</header><text>The term <term>material determination</term>
includes determinations relating to—</text>
<subparagraph id="H34ADDDB9D6B642B1A4EDF19966EF3B22"><enum>(A)</enum><text>applications for
payment relating to a loan guarantee; and</text>
</subparagraph><subparagraph id="H4C95583F3B294FD3884E81F53B7FE123"><enum>(B)</enum><text>the ability of an
entity to participate in an Administration loan or investing program.</text>
</subparagraph></paragraph><paragraph id="HEFA26EAAC3DE4E04BE068B81733493F8"><enum>(2)</enum><header>Independent
appellate process</header><text>The term <term>independent appellate
process</term> means a review by an Administration official who does not
directly or indirectly report to the Administration official who made the
material determination under
review.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H06443B1C06834A7D9BE73F851D26437C"><enum>114.</enum><header>Extension of
recovery and relief loan benefits</header>
<subsection id="H2500EBD8196542D0A9F060641E8A4FE3"><enum>(a)</enum><header>Fee
reductions</header><text display-inline="yes-display-inline">Section 501 of
title V of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111–5) is amended—</text>
<paragraph id="H1924C26053C145B8A317656AC5CBD475"><enum>(1)</enum><text>in subsection (a)
by striking <quote>September 30, 2010</quote> and inserting <quote>September
30, 2011</quote>; and</text>
</paragraph><paragraph id="H20053FAB2EC74BD2B48754111994351A"><enum>(2)</enum><text>in subsection (c)
by repealing paragraph (2).</text>
</paragraph></subsection><subsection id="H62852CAF127E49AC87FD2EB66F0D2E08"><enum>(b)</enum><header>Economic
stimulus lending program for small businesses</header><text display-inline="yes-display-inline">Section 502(f) of title V of division A of
the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is
amended by striking <quote>the date 12 months after the date of enactment of
this Act</quote> and inserting <quote>September 30, 2011</quote>.</text>
</subsection></section><section id="HF72DA4CA5E4F403F8A58D9B3B25B1706"><enum>115.</enum><header>Reduced
documentation for business stabilization loans</header><text display-inline="no-display-inline">Section 506(a) of title V of division A of
the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is
amended by adding at the end the following: <quote>The Administrator shall give
priority under such program to small business concerns in a city with an
unemployment rate that is at least 125 percent of the unemployment rate of the
State that includes such city. In carrying out such program, the Administrator
shall establish and utilize a one-page application for loans under this section
and shall authorize lenders to utilize the same documentation and procedural
requirements for loans under this section as such lenders utilize for other
loans of a similar size and type.</quote>.</text>
</section><section id="H364743C31E9B485CB55413E6E89C128F"><enum>116.</enum><header>Expanded
eligibility for business stabilization loans</header><text display-inline="no-display-inline">Section 506(c) of title V of division A of
the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is
amended by striking <quote>but shall not include</quote> and all that follows
through <quote>enactment of this Act</quote>.</text>
</section><section id="HD6BC89E71C6845C3B75791C090DB6DF5"><enum>117.</enum><header>Increased
amount of business stabilization loans</header><text display-inline="no-display-inline">Section 506(d) of title V of division A of
the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is
amended by striking <quote>$35,000</quote> and inserting <quote>$50,000 (except
as provided under subsection (l))</quote>.</text>
</section><section id="HED17E56BB55C49EFA0CE05FAC1DB3FD2"><enum>118.</enum><header>Extension of
business stabilization loans</header><text display-inline="no-display-inline">Section 506(j) of title V of division A of
the American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is
amended by striking <quote>September 30, 2010</quote> and inserting
<quote>September 30, 2011</quote>.</text>
</section><section id="HAE6C4C8D780541A198229704A387BE1B"><enum>119.</enum><header>Study and
report on business stabilization loans</header>
<subsection id="HEE89B2F8431047ECB1F632054DF29088"><enum>(a)</enum><header>Study</header><text>The
Administrator of the Small Business Administration shall conduct a study on the
business stabilization program established under section 506 of title V of
division A of the American Recovery and Reinvestment Act of 2009 (Public Law
111–5), including—</text>
<paragraph id="HBDBF3CA9C2D242F89BAB6CF0865FE9A3"><enum>(1)</enum><text>how the program
has been implemented;</text>
</paragraph><paragraph id="HD98FD87A18264F9F886D4C23DDE63A0C"><enum>(2)</enum><text>the amount of time
involved in processing applications;</text>
</paragraph><paragraph id="HB4FC3E001B964DDD8F845FE0D0BECA11"><enum>(3)</enum><text>the volume of
applications received and the effect on application processing;</text>
</paragraph><paragraph id="HC997CBAD13BF466DA66E7BC91D8F318C"><enum>(4)</enum><text>impediments to
participation in the program by small business concerns and lenders;</text>
</paragraph><paragraph id="HEFCE00A790DD4727B48F1AD5020BA1DC"><enum>(5)</enum><text display-inline="yes-display-inline">courses of action that might expedite
action by the Administrator on applications;</text>
</paragraph><paragraph id="H74CFB8FA70DE4624B1E57E881B486793"><enum>(6)</enum><text display-inline="yes-display-inline">courses of action that might expand
participation by such concerns and lenders; and</text>
</paragraph><paragraph id="H6F1408588ADF4A77B7361B280C726E6D"><enum>(7)</enum><text>a
cost benefit analysis with regard to changes to the program, including—</text>
<subparagraph id="H7B1FF9B1E59D491E940A38D34F8206A6"><enum>(A)</enum><text>increases in loan
limits;</text>
</subparagraph><subparagraph id="H9B760E553B3740FD9546465E63D94B1B"><enum>(B)</enum><text>expanding
eligibility requirements;</text>
</subparagraph><subparagraph id="H9CB5D23A31A7468FB2BE1F619F39EA69"><enum>(C)</enum><text>changes to
interest rates to lenders; and</text>
</subparagraph><subparagraph id="HF1533D1686C44D23B10F30D2BDD959E1"><enum>(D)</enum><text>any other change
the Administrator determines appropriate.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H808E2FEC486E44B88708B7E18F132587"><enum>(b)</enum><header>Report</header><text>Not
later than 90 days after the date of enactment of this Act, the Administrator
of the Small Business Administration shall submit to Congress a report that
includes—</text>
<paragraph id="HBC83F229D7854D69A87482EB88F35469"><enum>(1)</enum><text>the results of the
study under subsection (a); and</text>
</paragraph><paragraph id="H6FC0710242CB4C66A03958E3BF087FA8"><enum>(2)</enum><text>recommendations on
how to change the program—</text>
<subparagraph id="H519427902E5B44CEB3D2A01C6C9A99D2"><enum>(A)</enum><text>to expand
participation by small business concerns and lenders; and</text>
</subparagraph><subparagraph id="H47D0BE7CA1E04A8386606842AEFCC4A6"><enum>(B)</enum><text>to decrease the
amount of time involved in processing applications.</text>
</subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H1928AF509B624304A6B7F81348B14714"><enum>(c)</enum><header>Outreach</header><text display-inline="yes-display-inline">In conducting the study under subsection
(a) and preparing the report under subsection (b), the Administrator of the
Small Business Administration shall meet with and solicit the views of relevant
stakeholders, including lenders.</text>
</subsection></section><section display-inline="no-display-inline" id="H6A9A26957D08448182EFDD18FC9DFDC9" section-type="subsequent-section"><enum>120.</enum><header>Delayed repayment
for small business concerns in areas with high unemployment</header><text display-inline="no-display-inline">Section 506 of title V of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HD7D64B677C1344FD8E288EAFCCD904F6" style="OLC">
<subsection id="H7E6755D2E418463697327B74125E9F5A"><enum>(l)</enum><header>Small business
concerns in areas with high unemployment</header>
<paragraph id="HB8210D7BE4BA4B7A88AA13B4380DFC3E"><enum>(1)</enum><header>Increase loan
limits</header><text>Notwithstanding subsection (d), a loan made under this
section to a small business concern in what the Administrator determines to be
an area with high unemployment may not exceed $75,000.</text>
</paragraph><paragraph id="H2306164994E942FF9ACBB22AB9965D3E"><enum>(2)</enum><header>Delayed
repayment</header><text>Notwithstanding subsection (g), repayment for a loan
made under this section after the date of the enactment of the Small Business
Financing and Investment Act of 2009 to a small business concern described in
paragraph (1) shall not begin until 18 months after the final disbursement of
funds is
made.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H66B2A229377D4688946B79A2D8E4A420"><enum>121.</enum><header>SBA secondary
market lending authority made permanent</header><text display-inline="no-display-inline">Section 509 of title V of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111–5) is
amended—</text>
<paragraph id="H58AF113412D94AF693790CE888C66ED6"><enum>(1)</enum><text>by striking
subsection (e); and</text>
</paragraph><paragraph id="H0EE4F11B6C874ED88C1863C5BC2A3C6C"><enum>(2)</enum><text>by redesignating
subsections (f), (h), and (i) as subsections (e), (f), and (g),
respectively.</text>
</paragraph></section><section id="H5AA3C62029414CDA92AFFE20EB630FD7"><enum>122.</enum><header>SBA secondary
market lending authority expanded</header><text display-inline="no-display-inline">Section 509 of title V of division A of the
American Recovery and Reinvestment Act of 2009 (Public Law 111–5), as amended
by this Act, is further amended—</text>
<paragraph id="HFC715DFD2AF741CB9997F2EE1109C555"><enum>(1)</enum><text>in subsection
(c)(1) by adding at the end the following: <quote>Such process shall include
the designation of each lender participating in a program under section 7(a) of
the Small Business Act as a Systematically Important Secondary Market
Broker-Dealer for purposes of this section.</quote>; and</text>
</paragraph><paragraph id="H60E0743942744B4898402898CB6A51F3"><enum>(2)</enum><text>in subsection (e),
as so redesignated by section 120 of this Act, by adding at the end the
following: <quote>To the extent that the cost of an elimination or reduction of
fees is offset by appropriations, the Administrator shall in lieu of the fee
otherwise applicable under this subsection collect no fee or reduce fees to the
maximum extent possible.</quote>.</text>
</paragraph></section><section id="H8B0700CFEACD4751B037F99D98346127"><enum>123.</enum><header>Increased loan
limits</header><text display-inline="no-display-inline">Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is further
amended—</text>
<paragraph id="H9137DBE499344049815A71B816317242"><enum>(1)</enum><text>in paragraph
(2)(A)—</text>
<subparagraph id="HD29DD6FAEF684750AD718276D862A61E"><enum>(A)</enum><text>in clause
(i)—</text>
<clause id="H21B294C2AE3645FAA0E6CA3051D8D8D5"><enum>(i)</enum><text>by
inserting after <quote>$150,000</quote> the following: <quote>and is less than
or equal to $2,000,000</quote>; and</text>
</clause><clause id="HBAF7D57E58004EF79620860BADDD7CD6"><enum>(ii)</enum><text>by
striking <quote>or</quote> at the end;</text>
</clause></subparagraph><subparagraph id="H5916ADC217AB421E8B1FBCBA4FD5E82B"><enum>(B)</enum><text>in clause (ii) by
striking the period at the end and inserting <quote>; or</quote>; and</text>
</subparagraph><subparagraph id="H9DD343166F8B4E8F9EB697815F8D0083"><enum>(C)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H909C805559FA4F6A951B12BDDD1D9699" style="OLC">
<clause id="H215C1CBA873F4148A2159EC6F64E9A7B"><enum>(iii)</enum><text display-inline="yes-display-inline">50 percent of the balance of the financing
outstanding at the time of disbursement of the loan, if such balance exceeds
$2,000,000.</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H58128B5F61BB4B1D9F7451F43E761AAB"><enum>(2)</enum><text>in paragraph
(3)(A) by striking <quote>$2,000,000</quote> and inserting
<quote>$3,000,000</quote>.</text>
</paragraph></section><section id="H9AC7405B7BDD433CA21D9BE2DFD8A7D5"><enum>124.</enum><header>Real estate
appraisals</header><text display-inline="no-display-inline">Section 7(a)(29) of
the Small Business Act (15 U.S.C. 636(a)(29)) is amended—</text>
<paragraph id="HBF50C9519A5B4F6FB298EA6F3E1BD140"><enum>(1)</enum><text>in the matter
preceding subparagraph (A) by striking <quote>a State licensed or certified
appraiser</quote> and inserting <quote>an appraiser licensed or certified by
the State in which such property is located</quote>;</text>
</paragraph><paragraph id="HC0E48A5CF53D49C5B75D163D8664F1A1"><enum>(2)</enum><text>in subparagraph
(A) by striking <quote>$250,000</quote> and inserting <quote>$400,000</quote>;
and</text>
</paragraph><paragraph id="H69F9A2F4FB70447C97E3B9CE520B46A5"><enum>(3)</enum><text>in subparagraph
(B) by striking <quote>$250,000</quote> and inserting
<quote>$400,000</quote>.</text>
</paragraph></section><section id="HA3F0B82A1BA64955B9C2EA9E0EB3137C"><enum>125.</enum><header>Additional
support for Express Loan Program</header><text display-inline="no-display-inline">Section 7(a)(18)(B) of the Small Business
Act (15 U.S.C. 636(a)(18)(B)) is amended by adding after <quote>under
subparagraph (A)(i)</quote> the following: <quote>, except that a lender making
a loan under paragraph (31) may not retain any percentage of a fee collected
under such subparagraph</quote>.</text>
</section><section display-inline="no-display-inline" id="H7F83DE8CEA1A41798F8E3C04EAB437D8"><enum>126.</enum><header>Loans used to
purchase unoccupied manufacturing centers or equipment</header><text display-inline="no-display-inline">Section 7(a) of the Small Business Act (15
U.S.C. 636(a)), as amended by this Act, is further amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H2C700DA120AB4325A2A6F3C4B251904E" style="OLC">
<paragraph id="H80EB82AFCEE5499B8C9146A7A6432538"><enum>(42)</enum><header>Loans used to
purchase unoccupied manufacturing centers or equipment</header><text display-inline="yes-display-inline">The Administration may provide loans under
this subsection for the purchase of what the Administrator determines to be
unoccupied manufacturing centers or
equipment.</text>
</paragraph><after-quoted-block>.
</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="HEA447949590B4A1CA9F4235397E80095"><enum>127.</enum><header>100 percent
guarantee for small business concerns owned and controlled by
veterans</header><text display-inline="no-display-inline">Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)), as amended by this Act, is further
amended—</text>
<paragraph id="H81F6153F3A454CEAB2D9F9D0E47599B4"><enum>(1)</enum><text>in paragraph
(3)(A) by striking the semicolon at the end and inserting the following:
<quote>or in paragraph (42);</quote>; and</text>
</paragraph><paragraph id="H6192207FD3A847B99A0CEAA9DFB2AD44"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HDF9505103D474F598566333E437AD9E8" style="OLC">
<paragraph id="HFEC3CC1DCE654F149FB58E6A9ECEA5BF"><enum>(42)</enum><header>100 percent
guarantee for small business concerns owned and controlled by
veterans</header><text display-inline="yes-display-inline">Notwithstanding
paragraph (2), in an agreement to participate in a loan on a deferred basis
under this subsection with respect to a small business concern owned and
controlled by veterans, participation by the Administrator may be equal to 100
percent. The total amount outstanding and committed (by participation or
otherwise) with respect to a loan to such a small business concern from the
business loan and investment fund established by this Act may not exceed
$3,000,000.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section display-inline="no-display-inline" id="H2FB39317B26B4188A6179018286FE7E5" section-type="subsequent-section"><enum>128.</enum><header>Deferred repayment
for certain small business concerns</header><text display-inline="no-display-inline">Section 7(a)(7) of the Small Business Act
(15 U.S.C. 636(a)(7)) is amended by adding at the end the following: <quote>If
a small business concern classified in sector 23 of the North American Industry
Classification System receives a loan under this subsection after the date of
the enactment of the Small Business Financing and Investment Act of 2009, such
concern may defer repayment on such loan for a period of not more than 12
months beginning on the date that such concern receives the final disbursement
of such loan.</quote>.</text>
</section><section id="H9991E6812CC44C35B0BD778B0B994639"><enum>129.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">Section 20
of the Small Business Act (15 U.S.C. 631 note) is amended by inserting after
subsection (e) the following:</text>
<quoted-block display-inline="no-display-inline" id="H5CC5EBA6D7E8441680253F815837B889" style="OLC">
<subsection id="H9E346C54CAD24068A1DFCBCE523DB194"><enum>(f)</enum><header>Fiscal years
2010 and 2011 with respect to section
7<enum-in-header>(a)</enum-in-header></header>
<paragraph id="H85C2BB649AD9422E87817BE0B05CB03D"><enum>(1)</enum><header>Program
levels</header><text display-inline="yes-display-inline">For the programs
authorized by this Act, in each of fiscal years 2010 and 2011 commitments for
general business loans authorized under section 7(a) may not exceed
$20,000,000,000.</text>
</paragraph><paragraph id="H4EF863E132C14980975ED1E60B0E704E"><enum>(2)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated such sums
as may be necessary to carry out paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>II</enum><header>CDC
Economic Development Loan Program</header>
<subtitle id="H8A2FAE9A0F7545ABBA91A2E8CBCFD7B4"><enum>A</enum><header>General
Provisions</header>
<section id="H8A968C9286F143E4AF5EBEE895D5DB7A"><enum>201.</enum><header>Program
levels</header><text display-inline="no-display-inline">Section 20 of the Small
Business Act (15 U.S.C. 631 note), as amended by this Act, is further amended
by inserting after subsection (f) the following:</text>
<quoted-block display-inline="no-display-inline" id="H472DBF98E19D466B91F5AD2915815738" style="OLC">
<subsection id="H3F2CFE2F4EE642B6929C43D010D0913B"><enum>(g)</enum><header>Program levels
with respect to CDC Economic Development Loan Program</header>
<paragraph id="HDDCBDC7475D44234A6AD9CDB3FA03D16"><enum>(1)</enum><header>Fiscal year
2010</header><text display-inline="yes-display-inline">For financings
authorized by section 7(a)(13) of this Act and title V of the Small Business
Investment Act of 1958, the Administrator is authorized to make $9,000,000,000
in guarantees of debentures for fiscal year 2010.</text>
</paragraph><paragraph id="H865DE25D24B94D72AB9E7146F7050A1E"><enum>(2)</enum><header>Fiscal year
2011</header><text display-inline="yes-display-inline">For financings
authorized by section 7(a)(13) of this Act and title V of the Small Business
Investment Act of 1958, the Administrator is authorized to make $10,000,000,000
in guarantees of debentures for fiscal year
2011.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFB1A88714E334436B8CD9EFA07E526A6"><enum>202.</enum><header>Definitions</header><text display-inline="no-display-inline">Section 103 of the Small Business Investment
Act of 1958 (5 U.S.C. 662) is amended as follows:</text>
<paragraph id="HE6E6FD6766244E50892D7FE8D45932DF"><enum>(1)</enum><text>By amending
paragraph (6) to read as follows:</text>
<quoted-block id="H3D346E398B8B48AD902F808F75D8B9D3" style="OLC">
<paragraph id="HF734372223124615B073CD73AC497F14"><enum>(6)</enum><text>the term
<term>development company</term> means any corporation organized in order to
promote economic development and the growth of small business concerns and
includes companies chartered under a special State law authorizing them to
operate on a statewide
basis;</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE2EE384BF80E420DB87CBE7FDE04639A"><enum>(2)</enum><text>By striking
<quote>and</quote> at the end of paragraph (18), by striking the period at the
end of paragraph (19) and inserting a semicolon, and by adding at the end the
following new paragraphs:</text>
<quoted-block id="H17D3D643B5FE431188CDBA04F0DEE737" style="OLC">
<paragraph id="H3BFF7C93E0B04CED90FBD9D7721BC0D5"><enum>(20)</enum><text>the term
<term>certified development company</term> means a development company that the
Administrator has determined meets the criteria set forth in section
501;</text>
</paragraph><paragraph id="H2B7A14C3FDA3407197B4F4625CA7A237"><enum>(21)</enum><text>the term
<term>local governmental entity</term> means—</text>
<subparagraph id="HCA39CD06940B46D3AC565BC29A9A3D0B"><enum>(A)</enum><text display-inline="yes-display-inline">a State or a political subdivision of a
State; or</text>
</subparagraph><subparagraph id="H42625CEDD12B4312A093F656045166E4"><enum>(B)</enum><text>a combination of
political subdivisions which—</text>
<clause id="H7C5203793E6C4A1DA79D051D38BD2E75"><enum>(i)</enum><text>has been formed to
promote economic or community development;</text>
</clause><clause id="HE90740085AC144D88A808F655D41109F"><enum>(ii)</enum><text>is composed of
representatives of the State or a political subdivision acting in their
official capacity; and</text>
</clause><clause id="H58656306B87A4695AC7D5F0EBC1DBC35"><enum>(iii)</enum><text>includes an area
in an adjacent State if it is part of a local economic area, a rural area, or
has a population determined by the Administrator to be insufficient to support
the formation of a separate development company;</text>
</clause><continuation-text continuation-text-level="subparagraph">such
term includes entities meeting the requirements of clauses (i) through (iii),
such as, but not limited to, a council of governments, regional development
corporation, regional planning commission, or economic development
district;</continuation-text></subparagraph></paragraph><paragraph id="H1F9E838DF1394861AB115BCF962C8504"><enum>(22)</enum><text>the term
<term>member</term> means any person authorized to vote for a director of a
corporation or the dissolution or merger of a company (for purposes of this
definition, a shareholder of a for-profit corporation shall be considered a
member);</text>
</paragraph><paragraph id="H4AA37A835E924CC1A160E4E333C45659"><enum>(23)</enum><text>the terms
<term>rural</term> and <term>rural area</term> shall have the same meaning as
those terms are given in section 1991(a)(13)(A) of title 7, United States Code;
and</text>
</paragraph><paragraph id="H4C89CA50F0F847709E012451C46AB62B"><enum>(24)</enum><text>the term
<term>small manufacturer</term> means a small business concern—</text>
<subparagraph id="H032ABC3A7CDC416A88E5B09C62AC7717"><enum>(A)</enum><text>the primary
business of which is classified in sector 31, 32, or 33 of the North American
Industrial Classification System; and</text>
</subparagraph><subparagraph id="H3F26A212AA17400E844E9E7B3E9CE245"><enum>(B)</enum><text>all of the
production facilities of which are located in the United
States.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="H5D69A0C1C61340F8A725A3C7194AACCA"><enum>B</enum><header>Certified
Development Companies</header>
<section id="H2C865B6233084829A8924CAD47D59EED"><enum>211.</enum><header>Certified
development companies</header><text display-inline="no-display-inline">Section
501 of the Small Business Investment Act of 1958 (15 U.S.C. 695) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H0C0F91A993834FA7A1C9348C3FF30029" style="OLC">
<section id="H3AED15EA74E543D79E4B4F803251E653"><enum>501.</enum><header>Certified
development companies</header>
<subsection id="H7565CEF34AB5428A87BCE787BE7A2AE9"><enum>(a)</enum><header>Certified
development company debenture authority</header><text>Only development
companies certified by the Administrator shall have the authority to issue
debentures under this Act.</text>
</subsection><subsection id="H9A1996B00D3042D28701C5A8FFB179DE"><enum>(b)</enum><header>Certification
standards</header><text>A development company shall be certified for the
purposes of issuing debentures if the Administrator determines that it meets
each of the following criteria:</text>
<paragraph id="H8407FBC5368A4A5C86D13F2FDD16A57A"><enum>(1)</enum><header>Small
concern</header>
<subparagraph id="H7CFB0766ABE544348BE44614DCC89955"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (C) of paragraph (2), the company, including its affiliates, shall
have no more than 200 employees.</text>
</subparagraph><subparagraph id="H783EA743C0194BB08529CAD2AFC87930"><enum>(B)</enum><header>Control</header><text>Except
as provided in paragraph (2) (B) or (C) the company shall not be under the
control of any other concern.</text>
</subparagraph><subparagraph id="H18F675B402884305B59E88A9DE31861D"><enum>(C)</enum><header>Not for
profit</header><text>The development company is organized as a not-for-profit
corporation.</text>
</subparagraph></paragraph><paragraph id="H956A6660CC4A4ADBA3210A91001E5435"><enum>(2)</enum><header>Exceptions</header>
<subparagraph id="HE347B4C15ACF4DDAAA4F551A23790A8E"><enum>(A)</enum><header>For profit
status</header><text>If a development company was chartered as a for-profit
corporation and issued debentures prior to January 1, 1987, the company shall
not be required to change its status to not-for-profit in order to be
certified.</text>
</subparagraph><subparagraph id="H423C43E13A914D339570896687EA80DC"><enum>(B)</enum><header>Affiliation
grandfather</header><text>Any company that was authorized by the Administrator
to issue debentures before December 31, 2005, shall be eligible for
certification without regard to its status as part of, or its affiliation with,
any other not-for-profit corporation or local governmental entity unless that
not-for-profit corporation or local governmental entity is another entity that
issues debentures under this title.</text>
</subparagraph><subparagraph id="HC034F8177943438FBB01F2CF03199C0D"><enum>(C)</enum><header>Affiliation with
local governmental entities</header><text display-inline="yes-display-inline">Any company that was organized after the
date of enactment of the Small Business Financing and Investment Act of 2009
shall be eligible for certification without regard to its status as part of or
affiliation with any local governmental entity.</text>
</subparagraph></paragraph><paragraph id="HA6D537838D7146C48DB2E6CB11873334"><enum>(3)</enum><header>Good
standing</header><text>A development company shall be in good standing and
comply with all laws, in every State in which it is incorporated or authorized
to conduct business.</text>
</paragraph><paragraph id="H01FC40AD056D44A5AD75F26952C22ACF"><enum>(4)</enum><header>Membership</header>
<subparagraph id="H9B687E3CF30C44E3B45054CBEFF835A7"><enum>(A)</enum><header>In
general</header><text>The development company shall have at least 25
members.</text>
</subparagraph><subparagraph id="HF5489365ECD343C48D82FD9B1DD183D7"><enum>(B)</enum><header>Voting
rights</header><text>No member shall control more than 10 percent of the total
voting power in the development company.</text>
</subparagraph><subparagraph id="HCDB54C218BF04249B1B5467FF3AF843B"><enum>(C)</enum><header>Residence</header><text>Members
must be residents of the State in which the development company is chartered or
authorized to do business.</text>
</subparagraph><subparagraph id="HA5AFA3C94D7A444DA15FD0B2DE665CFD"><enum>(D)</enum><header>Diversity</header><text>The
development company must have at least one member from each of the
following:</text>
<clause id="HB8023245A3B041E8B7103F4DE7EE1075"><enum>(i)</enum><text>A
local governmental entity.</text>
</clause><clause id="HBB4AD37C22D64D34A7B1B0D709D7B575"><enum>(ii)</enum><text>A
financial institution subject to regulation by a Federal organization belonging
to the Federal Financial Institutions Examination Council and that provides
long-term fixed asset financing in the commercial market.</text>
</clause><clause id="HB453E8DA8BC14809BC4512B2202FB5AE"><enum>(iii)</enum><text>A not-for-profit
organization, other than a development company, that is dedicated to promoting
economic growth.</text>
</clause><clause id="H6E93BDFDCC1946A68034E85BEC1D9200"><enum>(iv)</enum><text>A
for-profit business, other than a financial institution described in clause
(ii).</text>
</clause></subparagraph><subparagraph id="H24B0775B9AD544F1BF43FD00BB741E4A"><enum>(E)</enum><header>Employment
status</header><text display-inline="yes-display-inline">Membership in a
development company shall not be predicated on employment status and an
individual who retired from or was terminated (for reasons other than fraud or
the commission of a crime) from an entity described in subparagraph (D) shall
be deemed to be from the organization described in that subparagraph.</text>
</subparagraph></paragraph><paragraph id="H9AC609952FBA48E889CC737378368244"><enum>(5)</enum><header>Board of
directors</header>
<subparagraph id="HFF1998EB673E4E07B3C594F00F6C603B"><enum>(A)</enum><header>In
general</header><text>The development company’s board consists of members and
each director receives a majority vote of the members unless the development
company is a for-profit corporation in which case the board need not consist
entirely of members.</text>
</subparagraph><subparagraph id="H0FB171EA60E240D1BE9BA5A0C357F42F"><enum>(B)</enum><header>Board
representation</header><text>There shall be at least one director from not
fewer than 3 of the 4 types of organizations specified in paragraph (4)(D) but
no single type of organization shall have more than 50 percent representation
on the board of the development company. If the development company is a
for-profit corporation, financial institution representatives may make up more
than 50 percent of the board.</text>
</subparagraph><subparagraph id="H96DA766907E14C8F8AE579BF7C1C433D"><enum>(C)</enum><header>Affiliated
entity representation restrictions</header><text display-inline="yes-display-inline">A development company that is described in
paragraph (1)(C) may have any or all of its board members appointed by entities
affiliated with the company and may include common members who also serve on
the affiliate’s board of directors if the appointment of board members was
exercised by an affiliate prior to December 31, 2005.</text>
</subparagraph><subparagraph id="H22F264CF243C4A479411D856C1B277E9"><enum>(D)</enum><header>Special rule for
certain development companies</header><text display-inline="yes-display-inline">The board of directors for any development
company issuing debentures before December 31, 2005, and incorporated under a
State law requiring, or which is interpreted by the State’s legal department as
imposing specific requirements on, the number and selection of members, board
members, or both, and the rights and privileges conferred by such State law,
may adhere to such provisions.</text>
</subparagraph></paragraph><paragraph id="HB8E937928E0D4E4C9C6677B0FC0FF986"><enum>(6)</enum><header>Professional
management and staff</header>
<subparagraph id="HECDCAC17462E4C64808ECDEEFEC38EF1"><enum>(A)</enum><header>In
general</header><text>The development company shall have full-time independent
professional management, including a chief executive officer to manage the
daily operations and a full-time professional staff qualified to carry out the
functions authorized under this title.</text>
</subparagraph><subparagraph id="H49AEDEC949B642EBAAC3F86BBBEB3A0A"><enum>(B)</enum><header>Utilization of
staff from affiliated entities</header><text>A development company shall not be
denied certification under this section if its chief executive or full-time
professional staff is from an affiliated entity as described in paragraph
(1)(C).</text>
</subparagraph><subparagraph id="HE846D1D5D00240BE8C496099CCFE10C8"><enum>(C)</enum><header>Staff under
contract</header><text>The Administrator shall not deny certification to a
development company that contracts for its full time staff if one of the
following conditions is met:</text>
<clause id="H5790D0783678441C8BAECFA28BF8287D"><enum>(i)</enum><text>The development
company is located in a rural area, obtains its staff through contract from
another development company that is certified by the Administrator and that
development company operates in the same or a contiguous State.</text>
</clause><clause id="HE30B07B4AEEE43B5A1F1040910304580"><enum>(ii)</enum><text>The development
company had issued debentures under this title prior to December 31, 2005, and
had contracted with a for-profit business concern to provide staffing and
management services.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HFF587E61196F4AF28F02D1D9F6880BA3"><enum>(c)</enum><header>Applications</header>
<paragraph id="HF0A9F08F40D04197AD05ACB19E6C09E4"><enum>(1)</enum><header>Development
companies issuing debentures before September 30, 2009</header>
<subparagraph id="H26547CA5E45845FBB0F25B1836257507"><enum>(A)</enum><header>Short form
Application</header><clause commented="no" display-inline="yes-display-inline" id="H115534A27DA9470FA79EC4FE35F56363"><enum>(i)</enum><text>For any development
company that issued debentures pursuant to this title before September 30,
2009, the Administrator shall develop, after an opportunity for notice and
comment, no later than 90 days after the date of enactment of the Small
Business Financing and Investment Act of 2009, a short-form application that
contains sufficient information for the Administrator to determine that the
development company currently meets the standards set forth in subsection (b).
In developing such application, the Administrator shall be required to limit
the amount of paperwork necessary to determine whether the development company
meets the standards for certification and may limit the application to the
filing of reports previously submitted to the Administrator.</text>
</clause><clause id="H5DB320860544403B923E7AC119D41A72" indent="up1"><enum>(ii)</enum><text>For those companies that obtain
staff through contracts, the application shall include a copy of the
contract.</text>
</clause></subparagraph><subparagraph id="HCF9F6DE7110E430C8A019EAD79BDD327"><enum>(B)</enum><header>Certification
decision</header><clause commented="no" display-inline="yes-display-inline" id="H40B65AD2C69F4DC28B5B8CCD17C52C6D"><enum>(i)</enum><text>The Administrator shall
certify the development company if the application demonstrates that the
applicant meets the standards in subsection (b). The decision to certify or not
approve the request for certification shall be made within 7 business days from
the date the initial submission of the application is received by the
Administrator. If the Administrator takes no action to approve or disapprove
within 7 business days, the application for certification is deemed approved
and no further action is required by the Administrator or the development
company to obtain certification. If the Administrator disapproves the
application, the Administrator shall provide in writing within 3 business days
the reasons for the disapproval. If such document is not provided within the
time specified, the application is deemed approved and no further action is
required by the Administrator or the development company to obtain
certification.</text>
</clause><clause id="HF2E953D675814B41A87A59DC4435EDEA" indent="up1"><enum>(ii)</enum><text>For those development companies
that submit contracts under subparagraph (A)(ii), the Administrator is limited
in rejecting the application only if the Administrator finds that the entity
servicing the applicant is no longer able to provide the employees or services
needed by the applicant to perform the functions that would be authorized under
this title.</text>
</clause></subparagraph><subparagraph id="H5A39CB91CFF8430DAF137F5F2E486E8C"><enum>(C)</enum><header>Application
resubmittal</header><text>If the Administrator disapproves the application for
certification and provides a written statement as set forth in subparagraph
(B), the development company may file a new application limited solely to
addressing the concerns of the Administrator and the certification procedures
set forth in subparagraph (B) shall recommence.</text>
</subparagraph><subparagraph id="H57AD3FEFE9B545D38CE5277A29F3AA31"><enum>(D)</enum><header>Appeals</header><text>If
the Administrator disapproves an application in accordance with the procedures
of subparagraphs (B) or (C), the applicant may, within 10 calendar days after
receipt of the disapproval, appeal such disapproval. The Administrator shall
conduct a hearing to determine such appeal pursuant to sections 554, 556, and
557 of title 5, United States Code, and shall issue a decision not later than
45 days after the appeal is filed. The decision on appeal shall constitute
final agency action for purposes of chapter 7 of title 5, United States
Code.</text>
</subparagraph><subparagraph id="H1B6ECDC1919A462D9E051B67A1F70A71"><enum>(E)</enum><header>Grandfathering</header>
<clause id="H8FC0C93C47334C22B0FBED21EBA30DA8"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">For the period 2
years after date of enactment of the Small Business Financing and Investment
Act of 2009, any development company that was issuing debentures on or before
the date set forth in this clause (i) shall be deemed to be a certified
development company.</text>
</clause><clause id="H80D20FB6961847379057ACCEBB3371D0"><enum>(ii)</enum><header>Completion of
application process</header><text>The procedures set forth in this paragraph
for determining certification shall apply to any development company meeting
the qualifications of clause (i).</text>
</clause><clause id="H2B9A7F32693D49A68156D51A9A97CE09"><enum>(iii)</enum><header>Effect of
denial</header><text>The denial or rejection of an application for
certification as set forth in this subsection shall have no effect on the
ability of a development company meeting the qualifications in clause (i) from
continuing to issue debentures during the entire two-year period established in
that clause.</text>
</clause><clause id="HB59A9DB1C7C94885AD1CFD97C91D62CD"><enum>(iv)</enum><header>Failure to
obtain certification</header><text>Any development company that fails to obtain
certification in accordance with the procedures set forth in this paragraph
during the period set forth in clause (i) shall be considered to be a new
development company and the procedures of paragraph (2) shall apply. The
authority to issue debentures shall cease for any development company covered
by this subparagraph that has failed to obtain certification from the
Administrator during the time period set forth in clause (i).</text>
</clause></subparagraph><subparagraph id="H133922498B3F49B7A0783D616CB6149F"><enum>(F)</enum><header>Automatic
qualification provision</header><text>If the Administrator fails to implement
the certification process set forth in this paragraph, any development company
that was issuing debentures before September 30, 2009, pursuant to this title
shall be considered certified until such time as the Administrator develops the
certification procedures set forth in this paragraph.</text>
</subparagraph><subparagraph id="HF9185B504797425AA3BC801E5547031D"><enum>(G)</enum><header>Savings
clause</header><text>Any action taken by a development company or the
Administrator pursuant to this paragraph shall have no impact on any guarantee
of a debenture issued prior to the date of enactment of the Small Business
Financing and Investment Act of 2009.</text>
</subparagraph></paragraph><paragraph id="H8E1BCDBEE2BD44FEBB69812545FC158D"><enum>(2)</enum><header>Application
process for new development companies</header>
<subparagraph id="H13571E55700A496D8F88E391B5825FC1"><enum>(A)</enum><header>In
general</header><text>For any development company that has not issued
debentures prior to September 30, 2009, the Administrator shall develop no
later than 180 days after the date of enactment of the Small Business Financing
and Investment Act of 2009, after an opportunity for notice and comment, an
application form for certification that provides the Administrator with
sufficient information to insure that the applicant meets the standards set
forth in subsection (b). The Administrator shall certify such development
company or reject the application within 60 calendar days from the date the
initial submission was received by the Administrator. If the Administrator
rejects the application, the Administrator shall provide in writing within 7
business days after the decision, the reason for rejecting the
application.</text>
</subparagraph><subparagraph id="HBF374C961DF045058BC191CE4B90BF81"><enum>(B)</enum><header>Appeals</header><text>A
development company shall be able to appeal the disapproval of an application
under the procedures set forth in paragraph
(1)(D).</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFEA4EF6AC2A94477BEDF564E49F81553"><enum>212.</enum><header>Certified
development company; operational requirements</header><text display-inline="no-display-inline">Section 502 of the Small Business Investment
Act of 1958 (15 U.S.C. 696) is amended to read as follows:</text>
<quoted-block id="HC386C918C2E04632BDA9E0541880C5CF" style="OLC">
<section id="HDF697CA43B074E5C8E91577FD24D20A3"><enum>502.</enum><header>Operational
requirements for certified development companies</header>
<subsection id="HA011F05F5C2347E790BD6E61A9CEEB13"><enum>(a)</enum><header>Maintenance of
Standards for Certification</header><text display-inline="yes-display-inline">Any company certified pursuant to section
501 shall continue to comply with the requirements of that section to remain
certified. The Administrator shall develop a reporting form, which to the
extent possible, incorporates other documents and reports already kept by
certified development companies, demonstrating their continued compliance. The
form shall be developed in a manner that the estimated time for completion
shall take no more than 2 hours.</text>
</subsection><subsection id="H5E190FCC82534A6FA5DFEAE74B44C340"><enum>(b)</enum><header>Ethics and
conflict of interests</header>
<paragraph id="HDFE429DACD79479EBDB11DD8AE8E7101"><enum>(1)</enum><header>In
general</header><text>A certified development company, its officers, employees,
and contractors shall act ethically and avoid activities which constitute a
conflict of interest or appear to constitute a conflict of interest. For
purposes of this subsection, conduct that is unethical includes, but is not
limited to, the actions specified in section 120.140 of title 13, Code of
Federal Regulations, as in effect on January 1, 2009.</text>
</paragraph><paragraph id="H9886333F100546B9B459BA61BCE9495F"><enum>(2)</enum><header>By
associates</header><text>An associate may not be an officer, director, or
manager of more than 1 certified development company. The term
<term>associate</term> shall have the same meaning given the term
<term>Associate of a CDC</term> in section 120.10 of title 13, Code of Federal
Regulations, as in effect on January 1, 2009. For the purposes of this
subsection, 10 percent shall be substituted wherever section 120.10 of title
13, Code of Federal Regulation uses 20 percent.</text>
</paragraph><paragraph id="H39A1AA239F894307AF250A2FF02E458F"><enum>(3)</enum><header>By
entities</header><text>Except as provided in sections 501(b)(5) and 501(b)(6),
no person, sole proprietorship, partnership, or corporation shall control or
have managerial control of more than one certified development company. Control
means any of the following:</text>
<subparagraph id="HAED01BF507F840D4A878096B5C124056"><enum>(A)</enum><text>The ability to
appoint or remove a member of the company or member of its board of
directors.</text>
</subparagraph><subparagraph id="HBBC152A7B3B34D3EAC749F4356AE2BDC"><enum>(B)</enum><text>The ability to
modify or approve rate or fee changes affecting revenues of the certified
development company.</text>
</subparagraph><subparagraph id="HF9B2A03E30B3408CA186183F33D2B60C"><enum>(C)</enum><text>The ability to
veto, overrule, or modify decisions of the certified development company’s
body.</text>
</subparagraph><subparagraph id="HB11D5DEEC2644E5AA2F2C2752C0E44A5"><enum>(D)</enum><text>The ability,
either directly or contractually, to appoint, hire, reassign, or dismiss those
managers and employees responsible for the daily operations of the certified
development company.</text>
</subparagraph><subparagraph id="H7101FE6A7F894707897C744E7BAD1060"><enum>(E)</enum><text>The ability to
access the certified development company’s resources or amend its
budget.</text>
</subparagraph><subparagraph id="H857E30C05D044A988CE3C92C60126B33"><enum>(F)</enum><text>The ability to
control another certified development company pursuant to provisions in a
contract.</text>
</subparagraph></paragraph></subsection><subsection id="H829CC890DEF34AD5813A34ACCA27F628"><enum>(c)</enum><header>Meetings</header><text>The
board of directors of the certified development company shall meet on a regular
basis to make policy decisions for the company.</text>
</subsection><subsection id="HA8930CAE71F14CCB8A45F34F7AFC9D92"><enum>(d)</enum><header>Loan
committees</header><text>The board of directors of a certified development
company may use a loan committee to process loans in the State in which it
operates as well as adjacent local economic areas. Members of the loan
committee shall be residents of the certified development company’s State of
operation or the adjacent local economic area. Such loan committees shall meet
on a periodic basis as set forth by the board of directors.</text>
</subsection><subsection id="H8907D0EA4C8C453F84F213F36932B2DA"><enum>(e)</enum><header>Prohibited
Conflict in Project Loans</header>
<paragraph id="H511269BB6A734BF39E1E24A5FAE2A732"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Certified development
companies shall not recommend or approve a guarantee of a debenture that will
be collateralized by property being constructed or acquired on which an
institution, as provided in section 508(c)(1)(A), will have a first lien
position.</text>
</paragraph><paragraph id="H0245AD454609442B9649B516D4701C45"><enum>(2)</enum><header>Exception</header><text>The
prohibition in paragraph (1) shall not apply to any certified development
company that was affiliated with or part of any entity that took a first lien
position between October 1, 2003, and September 30, 2005.</text>
</paragraph></subsection><subsection id="H1E463821E3724F8CA65512E23C256026"><enum>(f)</enum><header>Affiliation with
lenders operating under section 7 of the Small Business Act</header>
<paragraph id="H110C73022CA24344A03C931794297A58"><enum>(1)</enum><header>Prohibition</header><text>No
certified development company may invest in, or be an affiliate of, a lender
who participates in the loan programs authorized in sections 7(a) and 7(c) of
the Small Business Act (15 U.S.C. 636(a) and (c)).</text>
</paragraph><paragraph id="H354F2B08D36A47C389A20723B8129D00"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">The prohibition in paragraph (1) shall not
apply to any certified development company that is affiliated with an entity
authorized by the Administrator to operate under section 7(a) of the Small
Business Act if such affiliation occurred on or before November 6, 2003.</text>
</paragraph><paragraph id="H1FFE95C4A6874DECAF3165DE9EAB032E"><enum>(3)</enum><header>Credit union
affiliation</header><text>A certified development company shall not lose its
status due to an affiliation with an institution regulated by the National
Credit Union Administration if the development company was affiliated with such
an institution prior to January 1, 2007.</text>
</paragraph></subsection><subsection id="H2B2F2B6BADA24D72A8FBBAB1DE972DBA"><enum>(g)</enum><header>Servicing and
packaging guaranteed loans</header><text>A certified development company is
authorized to prepare applications for loans under sections 7(a) or 7(c) of the
Small Business Act (15 U.S.C. 636(a) or (c)), to service such loans, and to
charge a reasonable fee for servicing such loans.</text>
</subsection><subsection id="H2EED381EAD6D4E57B511B1333BEEB61E"><enum>(h)</enum><header>Use of excess
funds</header><text>Any funds generated by a certified development company from
the issuance of debentures under this title, the sale of debentures in the
private secondary market, or fees described in subsection (g) that remain
unexpended after payment of staff, operating, and overhead expenses shall be
used by the certified development company for—</text>
<paragraph id="H247A9A4A72964AE4814BD518DF891F73"><enum>(1)</enum><text>operating
reserves;</text>
</paragraph><paragraph id="H9DD84F1CB9784612B347148C78CEFBB9"><enum>(2)</enum><text>expanding the area
in which the certified development company operates through the methods
authorized in section 505 (relating to multi-State operation);</text>
</paragraph><paragraph id="H78637BD85C7C4B56ADA91BF1BC9B8F7E"><enum>(3)</enum><text>investment in
other community and local economic development activity or community
development primarily in the State from which such funds were generated;
or</text>
</paragraph><paragraph id="H35F5B05D5871400BAFCBF6099ECC04C7"><enum>(4)</enum><text>investment in
small business investment companies subject to the limitations in subsection
(i).</text>
</paragraph></subsection><subsection id="H6E751FE138194A7A9B986A8BFA630B6B"><enum>(i)</enum><header>Limitations with
respect to small business investment companies</header><text>A certified
development company shall not—</text>
<paragraph id="H6D7607D7F3E9402382143888EE152FF0"><enum>(1)</enum><text>invest excess
funds in a small business investment company that the Administrator determines
to be capitally impaired as set forth in section 107.1830 of title 13, Code of
Federal Regulations, as in effect on January 1, 2009, or any successor
regulation to that regulation, but may maintain its investment in such company
if such investment was made prior to the determination of capital impairment;
and</text>
</paragraph><paragraph id="H14901DEAB24E43AAAFD600B05637AB11"><enum>(2)</enum><text>provide a
debenture under this title to a small business concern that has financing with
a small business investment company in which the certified development company
has invested excess funds.</text>
</paragraph></subsection><subsection id="H698BEBC997B040DF8206807890CACA49"><enum>(j)</enum><header>Economic
development activities</header><text display-inline="yes-display-inline">A
company certified pursuant to this section shall carry out each of the
following economic development activities that create or preserve jobs in urban
and rural areas:</text>
<paragraph id="H6063B2145814422E9369E5C5063E53F8"><enum>(1)</enum><text>The company shall
provide long-term financing to small business concerns through debentures
described in section 506.</text>
</paragraph><paragraph id="H7122947DE4164718A13EC6C2E83C1C81"><enum>(2)</enum><text display-inline="yes-display-inline">The company shall operate any other program
to assist small business concerns or communities that promote local economic
development and job creation or preservation.</text>
</paragraph></subsection><subsection id="H6E41733B9FB147B5A330D60B5E7B93EA"><enum>(k)</enum><header>Restrictions on
assistance</header>
<paragraph id="H1264A7AC9B304473BDE1641036EB7349"><enum>(1)</enum><header>In
general</header><text>After the date of enactment of the Small Business
Financing and Investment Act of 2009, no certified development company may
accept funding from any source, including any Federal agency (as that term is
defined in section 551 of title 5, United States Code) if the source
imposes—</text>
<subparagraph id="H2FA5D11912064F54801EF7B73CD56CE2"><enum>(A)</enum><text>conditions on the
types of small business concerns that a certified development company may
provide assistance to under this title; or</text>
</subparagraph><subparagraph id="H319AD70446D541E7BED88F7F44A663B8"><enum>(B)</enum><text>conditions or
requirements, directly or indirectly, upon any small business concern receiving
assistance under this title.</text>
</subparagraph></paragraph><paragraph id="H8AE55836991C4DD7AD0F974055870566"><enum>(2)</enum><header>Exception</header><text>The
conditions of subparagraphs (A) and (B) of paragraph (1) shall not apply if the
source provides all of the financing that will be provided by the certified
development company to the small business concern, provided further that any
conditions or restrictions are limited solely to the financing provided by the
source of funding.</text>
</paragraph></subsection><subsection id="H840E5CD44A3846C0AF05F44800005488"><enum>(l)</enum><header>Revocation and
suspension</header><text>The Administrator may suspend or revoke a certified
development company’s status if the Administrator determines, after a hearing
on the record as set forth in sections 554, 556, and 557 of title 5, United
States Code, that the certified development company no longer—</text>
<paragraph id="HCCEDA7AD310740DFBBA19BE7D106A025"><enum>(1)</enum><text>meets the
eligibility criteria established under section 501 of this title;</text>
</paragraph><paragraph id="H1036C7F99D3F428DBCDE20F1FF982419"><enum>(2)</enum><text>satisfies the
operational standards in this section; or</text>
</paragraph><paragraph id="H536923C14DFA44379EBA35FCE21E4BB9"><enum>(3)</enum><text>complies with the
Administrator’s rules, regulations, or provisions of law.</text>
</paragraph></subsection><subsection id="H889FD49C455A47979A99202B8449AFD3"><enum>(m)</enum><header>Effect of
suspension or revocation</header><text>A suspension or revocation under
subsection (l) shall not affect any outstanding debenture
guarantee.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H8146FF49E08845DFA1A1B57DB0C7E502"><enum>213.</enum><header>Accredited
lenders program</header><text display-inline="no-display-inline">Section 503 of
the Small Business Investment of 1958 (15 U.S.C. 697) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H613A3E06B13C46529C7F7BEF3F10CFF8" style="OLC">
<section id="H3194DD1B7E11405289395D64A3492CF0"><enum>503.</enum><header>Accredited
Lenders Program</header>
<subsection id="H01061BB083CB4D11962841A9D216DE7E"><enum>(a)</enum><header>Establishment</header>
<paragraph id="H00202946C7494070BF40FAA0CF7B8467"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A certified
development company may apply for status to become an accredited certified
development company if it meets the operational standards of section 502 and
the criteria in subsection (b).</text>
</paragraph><paragraph id="HC29714BF8EC44FAFA3F9506ED0CFBFF1"><enum>(2)</enum><header>Application</header><text>The
Administrator shall, after opportunity for notice and comment, develop an
application for certified development companies seeking to become accredited
certified development companies.</text>
</paragraph><paragraph id="H7B6FFF565F404665A718DAE4DD6A0261"><enum>(3)</enum><header>Processing of
Application</header><text>The Administrator shall make a determination within
30 days after a complete application has been filed by the certified
development company.</text>
</paragraph><paragraph id="H8BFE37488D704F1D982B9AEC3AD3B95D"><enum>(4)</enum><header>Reapplication</header><text display-inline="yes-display-inline">If the Administrator rejects the
application, the Administrator shall provide in writing the reasons for the
rejection. Any certified development company may reapply which will recommence
the processing time limits set forth in paragraph (3), and such reapplication
shall be limited to addressing the reasons for rejection. If the Administrator
rejects a second application, that shall be considered final agency action for
purposes of chapter 7 of title 5, United States Code.</text>
</paragraph></subsection><subsection id="HC8C20973B078411B9B135A4C89E9A187"><enum>(b)</enum><header>Standards for
accredited certified development company program</header><text>The
Administrator shall designate a certified development company as accredited if
it meets the following standards:</text>
<paragraph id="H5C3B4DD38A06492CAF0C48AAB8213866"><enum>(1)</enum><text>Has been a
certified development company for not less than the preceding 12 months and has
issued debentures as authorized under this title during that time
period.</text>
</paragraph><paragraph id="H872B74249815456E96EFCF4EFF7EA057"><enum>(2)</enum><text>Has well-trained,
qualified personnel who are knowledgeable in the lending policies and
procedures for certified development companies.</text>
</paragraph><paragraph id="HDB7AC16FBC96457A815FFF33F65FCE5D"><enum>(3)</enum><text>Has the ability to
process, close, and service the loan issued under this title.</text>
</paragraph><paragraph id="HBC76D1D4847442679838C131D75AB313"><enum>(4)</enum><text>Has a loss rate on
the company’s debentures that is reasonable and acceptable to the
Administrator.</text>
</paragraph><paragraph id="HC4A6E52891054E729CE7FD692A3FD4A9"><enum>(5)</enum><text>Has a history of
submitting to the Administrator complete and accurate debenture guaranty
application packages.</text>
</paragraph><paragraph id="HFD63B49981FB4507AEF19B01ED482017"><enum>(6)</enum><text>Has the ability to
serve small business credit needs for financing plant and equipment as a
certified development company.</text>
</paragraph></subsection><subsection id="HE6D4CB6FEC6E43B183322781A0AD807C"><enum>(c)</enum><header>Expedited
processing of guarantee Applications</header><text>The Administrator shall
develop an expedited procedure for processing a guarantee application or
servicing action submitted by an accredited certified development company. For
purposes of this subsection, an expedited procedure is one that takes at least
two business days less than the processing performed for certified development
companies that have not been accredited.</text>
</subsection><subsection id="H95F309B3A91B4D1BA245ECB7AFFBF236"><enum>(d)</enum><header>Suspension or
revocation of accredited status</header><text display-inline="yes-display-inline">The Administrator may suspend or revoke a
certified development company’s accredited status if the Administrator
determines, after a hearing on the record as set forth in sections 554, 556,
and 557 of title 5, United States Code, that the certified development company
no longer meets the eligibility criteria established under this section (which
shall not include a time limit on the term of the certified development
company’s accredited status) or failed to adhere to the Administrator’s rules,
regulations, or is violating some other provision of law. Such suspension or
revocation shall have no effect on the development company’s status as
certified.</text>
</subsection><subsection id="H50CBD4C2464F4C39B3E347E1C1206197"><enum>(e)</enum><header>Effect of
suspension or revocation on existing guarantees</header><text>A suspension or
revocation of accredited status shall not affect any outstanding debenture
guarantee.</text>
</subsection><subsection id="HE606917A82B44F87AD6FD64D143F7341"><enum>(f)</enum><header>Grandfather
provision</header><text display-inline="yes-display-inline">Any certified
development company that was accredited by the date of enactment of the Small
Business Financing and Investment Act of 2009 shall remain accredited for 24
months after that date. If the certified development company does not have an
application for accreditation approved by the Administrator within the 24
months, its accreditation standard shall lapse.</text>
</subsection><subsection id="HD9EFC0E26E894236A2F95883CEACEAA5"><enum>(g)</enum><header>Automatic
Qualification</header>
<paragraph id="HBBD69A359FC348448EFEDBA6F5A8F378"><enum>(1)</enum><header>In
general</header><text>Until the Administrator develops procedures for granting
accredited status, any certified development company that was accredited as of
the date of enactment of the Small Business Financing and Investment Act of
2009 shall be deemed to be accredited.</text>
</paragraph><paragraph id="HAFC5DEAFDF6C48958427BC0BB274E988"><enum>(2)</enum><header>Applications</header><text>Any
certified development company that satisfies the provision of paragraph (1)
shall have 24 months in which to submit the application established by this
section for accredited status.</text>
</paragraph><paragraph id="HEFE030393BE74FD1B8C2EC221EEA4B76"><enum>(3)</enum><header>Effect while
application pending</header><text>The denial or rejection of an application for
accredited status as set forth in this section shall have no effect on the
ability of a development company that meets the standard set forth in paragraph
(1) from maintaining its status during the 24 months specified in this
subsection.</text>
</paragraph></subsection><subsection id="HFEE262C0049C4C22914297138E272F51"><enum>(h)</enum><header>Promulgation of
accrediting standards</header><text>The Administrator shall develop standards
for accrediting, suspension, and revocation under the program established by
this section only after notice and an opportunity for comment as set forth in
section 553(b) of title 5, United States Code. After the development of such
standards, the Administrator shall publish such standards in the Code of
Federal Regulations.</text>
</subsection><subsection id="HA1E3EA6F63904DA69D902A180E4EEAFE"><enum>(i)</enum><header>Rule of
construction</header><text>Any reference to the term <term>accredited
lender</term> in any provision of law enacted, or any regulation adopted, prior
to the enactment of the Small Business Financing and Investment Act of 2009
shall be deemed to be a reference to the term <term>accredited certified
development
company</term>.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H610694264C364401B5B43EEAC3C523F5"><enum>214.</enum><header>Premier
certified lender program</header><text display-inline="no-display-inline">Section 504 of the Small Business Investment
Act of 1958 (15 U.S.C. 697a) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE8608E83EA094D5D81AD8D10BF881199" style="OLC">
<section id="HA904287D9E664B109E9A0E632AC45E99"><enum>504.</enum><header>Premier
certified lender program</header>
<subsection id="H9E5BBD88F91546F28223EC62AFAEE846"><enum>(a)</enum><header>Establishment</header>
<paragraph id="H58873CFE625A445EB2F1E425FB473473"><enum>(1)</enum><header>In
general</header><text>A certified development company accredited under section
503 may apply for status to become a premier certified development
company.</text>
</paragraph><paragraph id="H49CD767E0FE44724A5B6BC23CB25FB39"><enum>(2)</enum><header>Application</header><text>The
Administrator shall, after opportunity for notice and comment, develop an
application for accredited certified development companies seeking to become
premier certified development companies.</text>
</paragraph><paragraph id="HB8186C28A8ED47C2992A172F73B75952"><enum>(3)</enum><header>Processing of
Application</header><text>The Administrator shall make a determination within
60 days after a complete application has been filed by an accredited certified
development company.</text>
</paragraph><paragraph id="H5480BA0E09AF4FBFAD0724A25204F18D"><enum>(4)</enum><header>Reapplication</header><text display-inline="yes-display-inline">If the Administrator rejects the
application, the Administrator shall provide in writing the reasons for the
rejection. Any accredited certified development company may reapply which will
recommence the processing time limits set forth in paragraph (3), and such
reapplication shall be limited to addressing the reasons for rejection. If the
Administrator rejects a second application, that shall be considered final
agency action for purposes of chapter 7 of title 5, United States Code.</text>
</paragraph></subsection><subsection id="H01CD66286751460B8CD5EA9AAC7F96C6"><enum>(b)</enum><header>Standards for
obtaining premier certified development company status</header><text>The
Administrator shall designate an accredited certified development company as a
premier certified development company if the application submitted pursuant to
subsection (a) demonstrates that the accredited certified development company
meets the following standards:</text>
<paragraph id="H66C5528B41C14293B34135CFC7585F89"><enum>(1)</enum><text>Has been an
accredited certified development company for at least 12 months.</text>
</paragraph><paragraph id="H34C9847010F04FEEA82811EDFAFE8CE7"><enum>(2)</enum><text>Has submitted to
the Administrator adequately analyzed debenture guarantee applications.</text>
</paragraph><paragraph id="HEE4444A3AA014E41A73A7C8F4A2A2240"><enum>(3)</enum><text>Has closed, in a
proper manner following the Administrator regulations, loans under this
title.</text>
</paragraph><paragraph id="HC5403077260C499AA80CF45416680468"><enum>(4)</enum><text>Has serviced its
loan portfolio in accordance with the standards set by the
Administrator.</text>
</paragraph><paragraph id="H37CF1683301B487B983EC176244F48FC"><enum>(5)</enum><text>Has established a
loan loss reserve established in accordance with this section that the
Administrator determines is sufficient to meet its obligations to protect the
Federal Government from the risk of loss on each debenture guaranteed under
this section.</text>
</paragraph><paragraph id="H049EAD871B97481699A443FC7E858ABA"><enum>(6)</enum><text display-inline="yes-display-inline">Has agreed, as part of the application and
in order to protect the Federal Government against the risk of loss, to the
following—</text>
<subparagraph id="HB76DBA440E184A8394F94345185D2623"><enum>(A)</enum><text>on account of a
debenture, the proceeds of which were used to fund a loan approved prior to the
date of enactment of the Small Business Financing and Investment Act of 2009,
agrees to reimburse the Administrator for 10 percent of any loss sustained by
the Administrator as a result of a default by the company in the payment of
principal or interest on a debenture issued by such company and guaranteed by
the Administrator;</text>
</subparagraph><subparagraph id="HFB824D6A1FFC433F924CE440A67EF552"><enum>(B)</enum><text display-inline="yes-display-inline">on account of a debenture, the proceeds of
which were used to fund a loan approved prior to the date of enactment of the
Small Business Financing and Investment Act of 2009 and which were issued
during the period in which the company had made a selection pursuant to section
508(c)(7) of the Small Business Investment Act of 1958, as in effect on the day
before such date of enactment, agrees to reimburse the Administrator for 15
percent of any loss sustained by the Administrator as a result of a default by
the company in the payment of principal or interest on a debenture issued by
such company and guaranteed by the Administrator; or</text>
</subparagraph><subparagraph id="H1E47737326C44BF79150DC054B31E203"><enum>(C)</enum><text>on account of a
debenture, the proceeds of which are used to fund a loan approved on or after
the date of enactment of the Small Business Financing and Investment Act of
2009, upon closing, pay to the Administrator a one-time participation fee in
the amount equal to the higher of the following:</text>
<clause id="H6B3C5E75BB2F459F9548113162280AFA"><enum>(i)</enum><text>0.25 percent of
the amount of the debenture.</text>
</clause><clause id="HF9D1793E3B7B415CAAAD5DCE4F5B24AE"><enum>(ii)</enum><text>A
percent of the amount of the debenture equal to 10 percent of the amount of the
company’s historic loss rate on debentures guaranteed under this section as
determined by the Administrator. The rate specified by this clause shall be
determined annually based upon the company’s loan losses as of close of
business on June 30 and notice of the determination shall be provided to each
company not later than August 31. Such rate shall be applicable to loans
approved during the fiscal year commencing after the determination is made and
shall expire and have no further application after the end of such fiscal year.
If no timely determination has been made prior to the commencement of a fiscal
year, including the year of enactment of the Small Business Financing and
Investment Act of 2009, one may be made after the commencement and it shall be
applicable to loans approved during the balance of such fiscal year commencing
30 days after notification to the development company involved.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HF78D4FBB9F674CD1B36DF1688480C2B4"><enum>(c)</enum><header>Suspension or
revocation of premier status</header><text>The Administrator may suspend or
revoke an accredited certified development company’s premier status if the
Administrator determines, after a hearing on the record as set forth in
sections 554, 556, and 557 of title 5, United States Code, that the accredited
certified development company no longer meets the eligibility criteria for
premier status as established under this section or failed to adhere to the
Administrator’s rules, regulations, or is violating some other provision of
law. Such revocation or suspension shall have no effect on its status as an
accredited certified development company.</text>
</subsection><subsection id="HE40E5F2E39CA4DC2A0C64D3935DF52A7"><enum>(d)</enum><header>Loan loss
reserve</header>
<paragraph id="H14AC9B49F6624088A56A8D8111CE1F69"><enum>(1)</enum><header>Assets</header><text display-inline="yes-display-inline">Each loan loss reserve maintained by the
premier certified development company for loans made pursuant to the authority
in subsection (g)(1) shall be comprised of—</text>
<subparagraph id="H1709330A7C634D4584DF75ED207A0B9E"><enum>(A)</enum><text display-inline="yes-display-inline">segregated funds on deposit in an account
or accounts with a federally insured depository institution or institutions
selected by the company, subject to a collateral assignment in favor of, and in
a format acceptable to, the Administrator that shall amount to 10 percent of
the company’s exposure as determined pursuant to subsection (b)(6);</text>
</subparagraph><subparagraph id="HAE243A5152484154875C7EEE5993490C"><enum>(B)</enum><text>irrevocable letter
or letters of credit, with a collateral assignment in favor of, and a
commercially reasonable format acceptable to, the Administrator; or</text>
</subparagraph><subparagraph id="HAB640F2956694C4CA0E5826E95B7F9C2"><enum>(C)</enum><text>any combination of
the assets described in subparagraphs (A) and (B).</text>
</subparagraph></paragraph><paragraph id="H3AE3F28015AE4D32AB4733877445412B"><enum>(2)</enum><header>Contributions</header><text>The
company shall make contributions to the loss reserve, either cash or letters of
credit as provided above, in the following amounts and at the following
intervals:</text>
<subparagraph id="HB8F6886350934C349D16A50A4467DDD1"><enum>(A)</enum><text>50 percent when a
debenture is closed.</text>
</subparagraph><subparagraph id="H7ED25AAFBACD464BA037F0CF68EB147C"><enum>(B)</enum><text>25 percent
additional not later than 1 year after a debenture is closed.</text>
</subparagraph><subparagraph id="HED338F78E77E427BAB6E8C57F56CD60F"><enum>(C)</enum><text>25 percent
additional not later than 2 years after a debenture is closed.</text>
</subparagraph></paragraph><paragraph id="H08F169FC7DF64661A9B8091C1620300D"><enum>(3)</enum><header>Replenishment</header><text>If
a loss has been sustained by the Administrator, any portion of the loss
reserve, and other funds provided by the premier certified development company
as necessary, may be used to reimburse the Administrator for the premier
certified development company’s share of the loss as provided for in subsection
(b)(6). If the premier certified development company utilizes the reserve, it
shall, within 30 calendar days, replace an equivalent amount of funds.</text>
</paragraph><paragraph id="H91DC91302FF04730AB66EFC37BE338B9"><enum>(4)</enum><header>Disbursements</header>
<subparagraph id="H8F8A55FC24264309984C8C31751DEDDA"><enum>(A)</enum><header>In
general</header><text>The Administrator shall allow the premier certified
development company to withdraw from the loss reserve amounts attributable to
any debenture that has been repaid.</text>
</subparagraph><subparagraph id="HF0E91177A8EF49CE884C627FD0D75347"><enum>(B)</enum><header>Reduction</header><text>The
Administrator shall allow the premier certified development company to withdraw
from the loss reserve such amounts as are in excess of 1 percent of the
aggregate outstanding balances of debentures to which such loss reserve
relates. The reduction authorized by this subparagraph shall not apply with
respect to any debenture before 100 percent of the contribution described in
paragraph (2) with respect to such debenture has been made.</text>
</subparagraph></paragraph><paragraph id="HB9D26BEDBEF84B5791E5A108902680D4"><enum>(5)</enum><header>Applicability</header><text>This
subsection shall apply only to a premier certified development company
designated as a premier certified development company by the Administrator
under this section on or after the date of the enactment of the Small Business
Financing and Investment Act of 2009. The loan loss reserve requirements
relating to any premier certified development company certified prior to the
date of the enactment of such Act shall continue to be governed by regulations
in effect on the date of the enactment of such Act.</text>
</paragraph></subsection><subsection id="H9E083D39EA384FC49D9C8A0B15DB81A9"><enum>(e)</enum><header>Bureau of
Premier Certified Development Company Lender Oversight</header>
<paragraph id="H691B57B4F7864935B114D593B9E1F595"><enum>(1)</enum><header>In
general</header><text>There is hereby established a Bureau of Premier Certified
Development Company Lender Oversight in the Office of Lender Oversight at the
Administration which shall have responsibility and capability for carrying out
oversight of premier certified development companies and such other
responsibilities as the Administrator designates.</text>
</paragraph><paragraph id="H82ECFFA76E204E4CAB9418EDB2FDC354"><enum>(2)</enum><header>Annual
review</header><text>The Bureau established in paragraph (1) annually shall
review the financing made by each premier certified development company. Such
review shall include the premier certified development company’s credit
decisions and general compliance with the eligibility requirements for each
financing approved as a result of its status as a premier certified development
company.</text>
</paragraph><paragraph id="H74C3BB3B53BF4800BA4A49B4510B9C3E"><enum>(3)</enum><header>Random
audits</header><text display-inline="yes-display-inline">The Bureau shall
develop and implement a method for sampling the debentures issued by premier
certified development companies. Such sampling shall be similar to the random
file audits of development companies that utilize the Abridged Submission
Method described in chapter 4 of subpart C of Standard Operating Procedure 50
10 (5)(A) as was in effect on March 2, 2009.</text>
</paragraph><paragraph id="H8FFB6D34288F4E9889A924516AE5657D"><enum>(4)</enum><header>Review of
lenders providing senior financing</header>
<subparagraph id="H23C5F55DF0F4437FA9B6B53762C864BA"><enum>(A)</enum><header>Calculation of
loan loss rate</header><text>The Bureau shall periodically calculate the loss
rate of all debentures approved under this section and shall calculate a loss
rate on the basis of the total debentures attributable to projects approved by
premier certified development companies in which each lender is a participating
lender.</text>
</subparagraph><subparagraph id="H7AAFE15AE3554E4996C45E13FCD7CD7B"><enum>(B)</enum><header>Notification</header><text>If
the Bureau determines that the loss rate on debentures involving an individual
lender exceeds the average for all debentures approved under this section, it
shall advise the Administrator.</text>
</subparagraph></paragraph><paragraph id="H7189080C214F46AEBEEEEC0B9E4A07DB"><enum>(5)</enum><header>Use of reviews
and audits</header><text>The Administrator shall consider the findings under
paragraphs (2), (3), and (4) in carrying out the responsibilities under
subsection (h).</text>
</paragraph></subsection><subsection id="H2B612CB3B0574385958C157F8F3BB08A"><enum>(f)</enum><header>Sale of Certain
Defaulted Loans</header>
<paragraph id="HB10589A9BC99442886953938E1BA7F1F"><enum>(1)</enum><header>Notice</header><text>If,
upon default in repayment, the Administrator acquires a debenture issued by a
premier certified development company and identifies such loan for inclusion in
a bulk asset sale of defaulted or repurchased loans or other financing, the
Administrator shall give prior notice thereof to any premier certified
development company which has a contingent liability under this section. The
notice shall be given to the premier certified development company as soon as
possible after the financing is identified, but not less than 90 days before
the date the Administrator first makes any records on such financing available
for examination by prospective purchasers prior to its offering in a package of
loans for bulk sale.</text>
</paragraph><paragraph id="HC16C3CB903F54A909536BC60080E0B30"><enum>(2)</enum><header>Limitations</header><text>The
Administrator shall not offer any loan described in paragraph (1) as part of a
bulk sale unless the Administrator—</text>
<subparagraph id="HD368E0DE9978419591BA28AFF2C3FC04"><enum>(A)</enum><text>provides
prospective purchasers with the opportunity to examine the Administration’s
records with respect to such loan; and</text>
</subparagraph><subparagraph id="H1559253A18C54432AB8C7401C247ADF5"><enum>(B)</enum><text>provides the
notice required by paragraph (1).</text>
</subparagraph></paragraph></subsection><subsection id="H454FBBE021CA4585A04AAB5E22BFE7F7"><enum>(g)</enum><header>Loan Approval
Authority</header>
<paragraph id="HF60745BC53AC40E2B511E5B876CC8E62"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A premier certified
development company may, under conditions determined by the Administrator in
regulations published in the Code of Federal Regulations, issue guarantees on
debentures, approve, authorize, close, service, foreclose, litigate (except
that the Administrator may monitor conduct of any such litigation), and
liquidate loans that are funded with proceeds of a debenture issued by a
premier certified development company unless the Administrator advises the
company that loans involving a specific institutional lender are to be
submitted to the Administrator for further consideration, and approval by the
Administrator.</text>
</paragraph><paragraph id="H913AC3ACAA8245EAAA996D041B735156"><enum>(2)</enum><header>Program
goals</header><text display-inline="yes-display-inline">Each premier certified
development company shall establish a goal of processing no less than 50
percent of the applications for assistance under this title that the premier
certified development company receives. Failure to meet this goal shall have no
affect on the company’s status as a premier certified development company under
this section.</text>
</paragraph><paragraph id="H3767FAC1E0514471A1211853C250F04A"><enum>(3)</enum><header>Scope of
review</header><text>The approval of a loan and guarantee of a debenture by a
premier certified development company shall be subject to final approval as to
the eligibility of any guarantee by the Administrator as set forth in section
506, but such final approval shall not include review of decisions by the
premier certified development company involving creditworthiness, loan closing,
or compliance with legal requirements imposed by law or regulation.</text>
</paragraph></subsection><subsection id="H1E6B16C13697414D85F478A90644F000"><enum>(h)</enum><header>Suspension or
revocation</header><text>The Administrator may suspend or revoke an accredited
certified development company’s premier status if the Administrator determines,
after a hearing on the record as set forth in sections 554, 556, and 557 of
title 5, United States Code, that the accredited certified development company
no longer meets the eligibility criteria established under this section, fails
to maintain adequate loan loss reserves mandated in this section even if it
meets the other eligibility requirements for premier status, or violates the
Administrator’s rules, regulations, or some other provision of law. The
Administrator shall consider the review of the premier certified development
company conducted pursuant to subsection (e) in determining whether to suspend
or revoke an accredited development company’s premier status. Such suspension
or revocation shall have no effect on the development company's status as an
accredited certified development company.</text>
</subsection><subsection id="H64A5D713E5C74CCEADC80EFED469BF1D"><enum>(i)</enum><header>Effect of
suspension or revocation</header><text>A suspension or revocation of premier
status shall not affect any outstanding debenture guarantee.</text>
</subsection><subsection id="H5B7055000EB2472A95E85AEA9DB2C08C"><enum>(j)</enum><header>Rule of
construction</header><text>Any reference to the term <term>premier certified
lender</term> or <term>PCL</term> in legislation enacted, or regulations
adopted, prior to the enactment of the Small Business Financing and Investment
Act of 2009 shall be deemed to be a reference to the term <term>premier
certified development
company</term>.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB251BCA39BAB41FE915AAFA5BF368C32"><enum>215.</enum><header>Multi-State
operations</header><text display-inline="no-display-inline">Section 505 of the
Small Business Investment Act of 1958 (15 U.S.C. 697b) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H40FD1468164749D5BA08F1B3E5760DA8" style="OLC">
<section id="HB328DBAA5762436882BA52F3E16B0C99"><enum>505.</enum><header>Multi-State
operations</header>
<subsection id="HC4DACA74DA144F90AE0DA313DB69800C"><enum>(a)</enum><header>Authorization</header><text>The
Administrator shall permit an accredited or premier certified development
company to make loans or issue debentures in any State that is contiguous to
the State of incorporation of that company only if the company—</text>
<paragraph id="H7B8AE0FB842B4E4FAC79061F956A24EB"><enum>(1)</enum><text>has members, from
each of the States in which it operates with not fewer than 25 members who
reside in such States;</text>
</paragraph><paragraph id="H6AEEF26F9E4140398D50126D3A790C04"><enum>(2)</enum><text>has a board of
directors that contains not fewer than 2 members from each State in which the
company makes loans and issues debentures and are residents of that
State;</text>
</paragraph><paragraph id="H47909D7A3A4D40F9AC2918C2809B9988"><enum>(3)</enum><text>maintains a
separate loan committee to process loans in each expansion State and the
members of the loan committee are solely residents of the expansion State;
and</text>
</paragraph><paragraph id="H42C75589552C4545AEB75DCD510E449F"><enum>(4)</enum><text>files an
application developed by the Administrator which provides—</text>
<subparagraph id="H57B4CFA47B75489FB4924B3DD65AA70C"><enum>(A)</enum><text>notice of the
intention to make loans in multiple States;</text>
</subparagraph><subparagraph id="H770A07EF550A4AEF872E36651B14FA96"><enum>(B)</enum><text>a specification of
the States in which the company intends to make loans;</text>
</subparagraph><subparagraph id="H03725EBD22CE4094962446651F60BCAD"><enum>(C)</enum><text>a list of members
in each expansion State; and</text>
</subparagraph><subparagraph id="H49F3F5122865460EAE043F5BBA9F197E"><enum>(D)</enum><text>a detailed
statement on how the company will comply with the requirements of this
subsection.</text>
</subparagraph></paragraph></subsection><subsection id="HFBA9ECEA8BD14E2688BEC684DB441530"><enum>(b)</enum><header>Loan
committees</header><text>The requirements of paragraph (3) of subsection (a)
shall not require a development company to establish a loan committee in its
State of incorporation or in a local economic area outside the State of
incorporation unless such area is part of an expansion State.</text>
</subsection><subsection id="HF4F17B3503934246951882337D8CF6BB"><enum>(c)</enum><header>Review</header>
<paragraph id="HFC6C170D5AA941459C7155C09A987EF0"><enum>(1)</enum><header>In
general</header><text>The Administrator shall review each application for
expansion under subsection (a), but such review shall be limited to that
information needed to determine whether the company will comply with the
requirements of subsection (a).</text>
</paragraph><paragraph id="H8A8A9B7ABBAD4F73AB3F9E6456E35A14"><enum>(2)</enum><header>Deadline for
decision</header><text>The Administrator shall make a decision on each
application under subsection (a) within 15 calendar days after the receipt of
the application. If no such decision is granted, the application is deemed to
be approved and no further action is required by the applicant or the
Administrator for the company to expand into the States specified in the
application.</text>
</paragraph><paragraph id="HEA884E0D5A66416287D48CCCBB3F2CDE"><enum>(3)</enum><header>Application
resubmittal</header><text>If the Administrator rejects the application for
expansion, the Administrator shall provide in writing the reasons for denial
within 10 calendar days of the decision. The applicant then may resubmit the
application but the review of such resubmitted applications will be limited
only to the areas in which the Administrator found the original application
deficient. The deadlines in paragraph (2) shall apply to resubmitted
applications.</text>
</paragraph><paragraph id="H50C629F4F9614070BB2DDFFB91C3098C"><enum>(4)</enum><header>Appeal</header><text>If
a resubmitted application is denied, the applicant may, within 10 calendar days
after receipt of the disapproval, appeal such disapproval. The Administrator
shall conduct a hearing to determine such appeal pursuant to sections 554, 556,
and 557 of title 5, United States Code, and shall issue a decision not later
than 45 days after the appeal is filed. The decision on appeal shall constitute
final agency action for purposes of chapter 7 of title 5, United States
Code.</text>
</paragraph></subsection><subsection id="H4FE9CDB919A8470D94C384E97BD9A6FE"><enum>(d)</enum><header>Failure To
develop Application</header><text>If the Administrator fails to develop an
application as required in subsection (a)(4) within 60 days of the enactment of
the Small Business Financing and Investment Act of 2009, an accredited or
premier certified development company only need submit the information required
in subsection (a) to the Administrator to be deemed eligible to commence
operations authorized by this section. Such eligibility shall not be terminated
if the Administrator develops an application after the 60-day period set forth
in this subsection.</text>
</subsection><subsection id="H17924101776443E48493143D7F4C2182"><enum>(e)</enum><header>Aggregate
accounting</header><text>An accredited or premier certified development company
authorized to operate in multiple States pursuant to this section may maintain
an aggregate accounting of all revenue and expenses of the company for purposes
of this title.</text>
</subsection><subsection id="H21A9F26985D14ACB9621777545E4B71C"><enum>(f)</enum><header>Local Job
Creation Requirements</header>
<paragraph id="HCDA37D2F958A4BE898748E8EDCB20A3E"><enum>(1)</enum><header>In
general</header><text>Any company making loans in multiple States as authorized
in this section shall not count jobs created or retained in one State towards
any applicable job creation or retention requirements mandated by this title in
another State.</text>
</paragraph><paragraph id="H6AE3B6DB1A9549A5911B437407B6A857"><enum>(2)</enum><header>Applicability</header><text>Any
company operating under the authority of this section shall be required to meet
any job creation or retention requirement of this title on the date that is 2
years after the certified development company closed its first loan in its new
State of operation.</text>
</paragraph></subsection><subsection id="HD77E87071E1747BDAA4C9E86B10EA97B"><enum>(g)</enum><header>Contiguous
states</header><text>For the purposes of this section, the States of Alaska and
Hawaii shall be deemed to be contiguous to any State abutting the Pacific
Ocean. Territories of the United States located in the Pacific Ocean shall be
deemed to be contiguous to any State abutting the Pacific Ocean, including
Alaska and Hawaii, and territories of the United States located in the
Caribbean Sea shall be deemed contiguous to any State abutting the Gulf of
Mexico.</text>
</subsection><subsection id="HD2851408EB674B0F8E0229B74F9785E8"><enum>(h)</enum><header>Exemption for
local economic areas</header><text>Except as provided in subsection (a)(3) with
respect to loan committees, any certified, accredited, or premier development
company or applicant operating in a local economic development area that
crosses the border of another State shall not be considered to be operating
under the provisions of this section and shall not be required to comply with
the requirements of this section for multi-State
operation.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H4ADD72E81B84454EA065CA9C1766A9AF"><enum>216.</enum><header>Guaranty of
debentures</header><text display-inline="no-display-inline">Section 506 of the
Small Business Investment Act of 1958 (15 U.S.C. 697c) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H136719438384473CA1F938A0A68F0AA4" style="OLC">
<section id="H7AEC419693A14A7A91EC10465F4280FC"><enum>506.</enum><header>Guaranty of
debentures</header>
<subsection id="H8F2AAC22D624419682564C1F957DCB3C"><enum>(a)</enum><header>Authority To
guarantee</header><text>Except as provided in subsection (c), the Administrator
may guarantee the timely payment of all principal and interest as scheduled on
any debenture issued by a certified development company.</text>
</subsection><subsection id="HB01C76784DC34025AA8E3DE20DB1BC06"><enum>(b)</enum><header>Terms and
conditions of the guarantee</header><text>Such guarantees may be made on such
terms and conditions as the Administrator may by regulation, published in the
Code of Federal Regulations, determine to be appropriate, except that the
Administrator shall not decline to issue such guarantee when the ownership
interests of the small business concern and the ownership interests of the
property to be financed with the proceeds of the loan made pursuant to
subsection (e)(1) are not identical because one or more of the following
classes of relatives have an ownership interest in either the small business
concern or the property: father, mother, son, daughter, wife, husband, brother,
or sister, if the Administrator or his designee has determined on a
case-by-case basis that such ownership interest, such guarantee, and the
proceeds of such loan, will substantially benefit the small business
concern.</text>
</subsection><subsection id="H89EAE740A68245B99FD0439664346317"><enum>(c)</enum><header>Full faith and
credit</header><text>The full faith and credit of the United States is pledged
to the payment of all amounts guaranteed under this section.</text>
</subsection><subsection id="H19057756DF234F8F81A907DDC5CB801C"><enum>(d)</enum><header>Subordination</header><text>Any
debenture issued by a certified development company with respect to which a
guarantee is made under this section may be subordinated by the Administrator
to any other debenture, promissory note, or other debt or obligation of such
company.</text>
</subsection><subsection id="H089C977C44434FE8BE23AE04690C0883"><enum>(e)</enum><header>Standards for
administrator guarantees</header><text>No guarantee may be made with respect to
any debenture under this section unless—</text>
<paragraph id="H8617A22E72ED4D3397DC3FCE0F8D6AC5"><enum>(1)</enum><text>the debenture is
issued for the purpose of making one or more loans to small business concerns
the proceeds of which shall be used for the purposes set forth in section
507;</text>
</paragraph><paragraph id="H2AF7F4F9A4A64417B79F3581394B4420"><enum>(2)</enum><text>the interest rate
on such debentures is not less than the rate of interest determined by the
Secretary of the Treasury for purposes of section 303(b);</text>
</paragraph><paragraph id="HD0CE734AC28F4B3F90758FF166051E4A"><enum>(3)</enum><text>the aggregate
amount of such debenture does not exceed the amount of the loans to be made
from the proceeds of such debenture plus, at the election of the borrower,
other amounts attributable to the administrative and closing costs of such
loans, except for the attorney fees of the borrower;</text>
</paragraph><paragraph id="H56DC18679C6643DB83BDA8A304D260B1"><enum>(4)</enum><text>the amount of any
loan to be made from such proceeds does not exceed an amount equal to 50
percent of the cost of the project with respect to which such loan is
made;</text>
</paragraph><paragraph id="HE38825CFE15246639B28F59E6FE67C50"><enum>(5)</enum><text>the Administrator,
except to the extent provided in section 504 with respect to premier certified
development companies, approves each loan to be made from such proceeds;
and</text>
</paragraph><paragraph id="H943DE38DB3384566AB0FE29836A66B64"><enum>(6)</enum><text>with respect to
each loan made from the proceeds of such debenture, the Administrator—</text>
<subparagraph id="HB501A44E12F845AF9BC1D3FDE7296AFE"><enum>(A)</enum><text>assesses and
collects a fee, which shall be payable by the borrower, in an amount
established annually by the Administration, which amount shall not
exceed—</text>
<clause id="HFDB503C1D58549679C54CB049ADE55EB"><enum>(i)</enum><text>the lesser
of—</text>
<subclause id="H23D76B897EB041B3BFFA80DB097DFB10"><enum>(I)</enum><text>0.9375 percent per
year of the outstanding balance of the loan; or</text>
</subclause><subclause id="HE8A3A47B0B9F409D8A76D71B047CE521"><enum>(II)</enum><text>the minimum
amount necessary to reduce the cost (as defined in section 502 of the Federal
Credit Reform Act of 1990) to the Administrator of purchasing and guaranteeing
debentures under this title to zero; and</text>
</subclause></clause><clause id="H9B70D40E11A845A69CEDB2ED35B040BE"><enum>(ii)</enum><text>50 percent of the
amount established under clause (i) in the case of a loan made during the
2-year period beginning on October 1, 2002, for the life of the loan;
and</text>
</clause></subparagraph><subparagraph id="H91E6E7F2873844CEAE6F98ABE50983E6"><enum>(B)</enum><text>uses the proceeds
of such fee to offset the cost (as such term is defined in section 502 of the
Federal Credit Reform Act of 1990) to the Administrator of making guarantees
under this section.</text>
</subparagraph></paragraph></subsection><subsection id="HD1D67077E372478BBE342C119109D541"><enum>(f)</enum><header>Interest rates
on commercial loans</header><text>Notwithstanding the provisions of the
constitution or laws of any State limiting the rate or amount of interest which
may be charged, taken, received, or reserved, the maximum legal rate of
interest on any commercial loan which funds any portion of the cost of the
project financed pursuant to this title which is not funded by a debenture
guaranteed under this section shall be a rate which is established by the
Administrator who shall publish such rate quarterly in, at a minimum, the
Federal Register and on the Administration’s website.</text>
</subsection><subsection id="H4367E2B303014C9DA3C7D9F5B494BE25"><enum>(g)</enum><header>Debenture
repayment</header><text>Any debenture that is issued under this section shall
provide for the payment of principal and interest on a semiannual basis.</text>
</subsection><subsection id="H3D91E2ECF503448EAD17EBD50133789A"><enum>(h)</enum><header>Charges for
Administrator’s Expenses</header><text>The Administrator may impose an
additional charge for administrative expenses with respect to each debenture
for which payment of principal and interest is guaranteed under this section.
Such administrative expenses may include—</text>
<paragraph id="H33343726CD5A4DD8809B6014D78217FC"><enum>(1)</enum><text>development
company fees for processing, closing, servicing, late payment, or loan
assumption;</text>
</paragraph><paragraph id="HC6F0BC9C89E14FF6A3A0B57BF425A927"><enum>(2)</enum><text>agent or trustee
fees for central servicing, underwriters, or debenture funding; and</text>
</paragraph><paragraph id="HA2A4091032104C93835CBC0F099AFA21"><enum>(3)</enum><text>fees charged by
the Administrator for the debenture guaranty and from the certified development
company to reduce the subsidy cost.</text>
</paragraph></subsection><subsection id="H73E75AA634EB4547AAC78CCB0751D60C"><enum>(i)</enum><header>Participation
fee</header><text>The Administrator shall collect a one-time fee in an amount
equal to 50 basis points on the total participation in any project of any State
or local government, bank, other financial institution, or foundation or
not-for-profit institution. Such fee shall be imposed only when the
participation of the entity described in the previous sentence will occupy a
senior credit position to that of the development company. All proceeds of the
fee shall be used to offset the cost (as that term is defined in section 502 of
the Credit Reform Act of 1990) to the Administrator of making guarantees under
this section.</text>
</subsection><subsection id="H0F2304680C344AB398E0DCE10D9EA609"><enum>(j)</enum><header>Certified
development company fee</header><text>The Administrator shall collect annually
from each development company a fee of 0.125 percent of the outstanding
principal balance of any guaranteed debenture authorized by the Administrator
after September 30, 1996. Such fee shall be derived from the servicing fees
collected by the certified development company pursuant to regulation, and
shall not be derived from any additional fees imposed on small business
concerns. All proceeds of the fee shall be used to offset the cost (as that
term is defined in section 502 of the Credit Reform Act of 1990) to the
Administrator of making guarantees under this section.</text>
</subsection><subsection id="HCC56A99E27C34FBC99E84DB68A9250DD"><enum>(k)</enum><header>Effective
date</header><text>The fees authorized by this section shall apply to any
financing approved under this title on or after October 1, 1996.</text>
</subsection><subsection id="HFF76B23D11F14C64BF87F9B89BA4EE50"><enum>(l)</enum><header>Calculation of
subsidy rate</header><text>All fees, interest, and profits received and
retained by the Administrator under this section shall be included in the
calculations made by the Director of the Office of Management and Budget to
offset the cost (as that term is defined in section 502 of the Federal Credit
Reform Act of 1990) to the Administrator of purchasing and guaranteeing
debentures under this title.</text>
</subsection><subsection id="H9FC0D9024307426D830DDEC42536A64C"><enum>(m)</enum><header>Actions upon
default</header>
<paragraph id="HA28F772CA4424540B15FBC65CE86A45F"><enum>(1)</enum><header>Initial
actions</header><text>Not later than the 45th day after the date on which a
payment on a loan funded through a debenture guaranteed under this section is
due and not received, the Administrator shall—</text>
<subparagraph id="HFBA3F9A5E0D0492BBFA15E3BE3276A59"><enum>(A)</enum><text>take all necessary
steps to bring such loan current; or</text>
</subparagraph><subparagraph id="HBA138016369F4EE9B7AD341684A8253F"><enum>(B)</enum><text>implement a formal
written deferral agreement.</text>
</subparagraph></paragraph><paragraph id="HD6DA2BA669B642D1A48FCEA1FA820E7A"><enum>(2)</enum><header>Purchase or
acceleration of debenture</header><text>Not later than the 65th day after the
date on which a payment on a loan described in paragraph (1) is due and not
received, and absent a formal written deferral agreement, the Administrator
shall take all necessary steps to purchase or accelerate the debenture.</text>
</paragraph><paragraph id="HB46B20781FA64AFF80229302F6F75153"><enum>(3)</enum><header>Prepayment
penalties</header><text>With respect to the portion of any project derived from
funds not provided by a debenture issued by a certified development company or
borrower, the Administrator—</text>
<subparagraph id="H0306DAF6ECD646BA89DA044D886E7A2D"><enum>(A)</enum><text>shall negotiate
the elimination of any prepayment penalties or late fees on defaulted loans
made prior to September 30, 1996;</text>
</subparagraph><subparagraph id="HE1709110658C405B92D3185EF9A84347"><enum>(B)</enum><text>shall not pay any
prepayment penalty or late fee on the default based purchase of loans issued
after September 30, 1996; and</text>
</subparagraph><subparagraph id="HAEB18AB24D394BFAABBC4F2242C9AB16"><enum>(C)</enum><text>shall not pay a
default interest rate higher than the interest rate on the note prior to the
date of default for any project financed after September 30, 1996.</text>
</subparagraph></paragraph><paragraph id="HCE74A15191AD403A817119FB6D279F66"><enum>(4)</enum><header>Collection and
servicing</header>
<subparagraph id="HAD642C5AD59E4D66A492A99356E6D5ED"><enum>(A)</enum><header>In
general</header><text>In the event of the default of any loan and the
repurchase of a debenture guaranteed by the Administrator under this title, the
Administrator shall continue to delegate to the central servicing agent that
was contracted for that service as of January 1, 2009, or successor contractor
the authority to collect and disburse all funds or payments received on such
defaulted loans, including payments from guarantors or on notes in compromise
of the original note. The central servicing agent shall continue to provide an
accounting of income and expenses for any such loan on the same basis it does
for any other loan issued under this title. The central servicing agent shall
make the accounting of income and expenses and reports thereon available as
requested by the certified development company that issued the debenture or the
Administrator.</text>
</subparagraph><subparagraph id="H26154DC99BA74ECB8323A50ACA36B793"><enum>(B)</enum><header>Effective
date</header><text>The requirements of subparagraph (A) shall become effective
180 days after the date of enactment of the Small Business Financing and
Investment Act of
2009.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H3E7EC68DA10C4917AB0B1339370008DF"><enum>217.</enum><header>Economic
development through debentures</header><text display-inline="no-display-inline">Section 507 of the Small Business Investment
Act of 1958 (15 U.S.C. 697d) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC8918ED9E3424320B2739EB6FD9FFC09" style="OLC">
<section id="HD3B406472581472680840B88D414965D"><enum>507</enum><header>Economic
development and debentures</header>
<subsection id="HA13C2A3FE4D6424B9CD502FF4B7E1319"><enum>(a)</enum><header>In
general</header><text>A certified development company shall be prohibited from
issuing a debenture under this title unless the project funded with the
debenture meets one of the following economic development objectives:</text>
<paragraph id="H3DFAAE76229445A4BFCD0637A07727A0"><enum>(1)</enum><text>The creation of
job opportunities within two years of the completion of the project or the
preservation or retention of jobs attributable to the project.</text>
</paragraph><paragraph id="HB2C5FB74D2B140FEB87C61BF3A1B8F03"><enum>(2)</enum><text>Improving the
economy of the locality, such as stimulating other business development in the
community, bringing new income into the area, or assisting the community in
diversifying and stabilizing its economy.</text>
</paragraph><paragraph id="HEF1AB85928C94482845F45489D988FD3"><enum>(3)</enum><text>The achievement of
one or more of the following public policy goals:</text>
<subparagraph id="H1990EFC382FE457898AEB31C2AE2DD57"><enum>(A)</enum><text>Business district
revitalization or expansion of businesses in low-income communities which would
be eligible for a new markets tax credit under section 45D(a) of the Internal
Revenue Code of 1986, or implementing regulations issued under that
section.</text>
</subparagraph><subparagraph id="H6D74179280B44935BAD61DE8C4391940"><enum>(B)</enum><text>Expansion of
exports.</text>
</subparagraph><subparagraph id="HC92F75C7C77B40AEA4D68E19A9D2835A"><enum>(C)</enum><text>Expansion of
minority business development or women-owned business development.</text>
</subparagraph><subparagraph id="HCC90D04DC5AB41969ACE8CCDA6620CF3"><enum>(D)</enum><text>Rural
development.</text>
</subparagraph><subparagraph id="H0FA9EDDAA78B4FC988709C2FF62875F1"><enum>(E)</enum><text>Expansion of small
business concerns owned and controlled by veterans, as defined in section 3(q)
of the Small Business Act (15 U.S.C. 632(q)), especially service-disabled
veterans, as defined in such section.</text>
</subparagraph><subparagraph id="HCC6AEA84A72B4655BCACEF93882AE477"><enum>(F)</enum><text>Enhanced economic
competition, including the advancement of technology, plan retooling,
conversion to robotics, or competition with imports.</text>
</subparagraph><subparagraph id="H52D7B72E777049E6BDF23DC82CF8A5AD"><enum>(G)</enum><text>Changes
necessitated by Federal budget cutbacks, including defense related
industries.</text>
</subparagraph><subparagraph id="HE6BAA93E688C4279ADE3DD7E78062E9C"><enum>(H)</enum><text>Business
restructuring arising from federally mandated standards or policies affecting
the environment or the safety and health of employees.</text>
</subparagraph><subparagraph id="HEC485A7DFF9E4D989134A1F5C3F06744"><enum>(I)</enum><text>Reduction of
energy consumption by at least 10 percent.</text>
</subparagraph><subparagraph id="HFB3ECD91166E4FEC859A583F59879A15"><enum>(J)</enum><text>Increased use of
sustainable design, including designs that reduce the use of greenhouse gas
emitting fossil fuels, or low-impact design to produce buildings that reduce
the use of nonrenewable resources and minimize environmental impact.</text>
</subparagraph><subparagraph id="H7C46E6A9D16B4277909AF99A78FE6C87"><enum>(K)</enum><text>Plant, equipment,
and process upgrades of renewable energy sources such as the small-scale
production of energy for individual buildings or communities consumption,
commonly known as micropower, or renewable fuels producers including biodiesel
and ethanol producers.</text>
</subparagraph></paragraph><paragraph id="H2D88229DE8AA4763A43AEE460121A826"><enum>(4)</enum><text display-inline="yes-display-inline">Debt refinancing to the extent permitted by
subsection (d).</text>
</paragraph></subsection><subsection id="H01C9E7CF13EC47E79ECC6AB5666ECBB7"><enum>(b)</enum><header>Job creation and
retention requirements</header>
<paragraph id="HAD298EE1649F4079AB71A26321EDD639"><enum>(1)</enum><header>In
general</header><text>A project meets the job creation or retention objective
set forth in subsection (a)(1) if the project creates or retains one job for
every $65,000 guaranteed by the Administrator, except that the amount shall be
$100,000 in the case of a project of a small manufacturer.</text>
</paragraph><paragraph id="HD799F548D0CB4EBF87C6EA5F810B97EE"><enum>(2)</enum><header>Exceptions</header>
<subparagraph id="H91A2FEE4CD33438E9382C0EB3B296463"><enum>(A)</enum><text>Paragraph (1)
shall not apply to a project for which eligibility is based on the objectives
set forth in subsection (a)(2) or (a)(3) if the certified development company’s
portfolio of outstanding debentures creates or retains one job for every
$65,000 guaranteed by the Administrator.</text>
</subparagraph><subparagraph id="H23A4272BC9DA47378EFDAE235692AD45"><enum>(B)</enum><text>For projects in
Alaska, Hawaii, State-designated enterprise zones, empowerment zones,
enterprise communities, or labor surplus areas designated by the Administrator,
the certified development company’s portfolio may average not more than $75,000
per job created or retained.</text>
</subparagraph><subparagraph id="H08C2087511C24B3CBB7782AADE2689D9"><enum>(C)</enum><text>Loans for projects
of small manufacturers shall be excluded from the calculations in subparagraphs
(A) and (B).</text>
</subparagraph></paragraph></subsection><subsection id="HF8596134E88143708397446A59FFD696"><enum>(c)</enum><header>Combination of
certain goals</header><text>A small business concern that is unconditionally
owned by more than 1 individual, or a corporation, the stock of which is owned
by more than 1 individual, shall be deemed to have achieved a goal under
subsection (a)(3) if a combined ownership share of not less than 51 percent is
held by individuals who are in 1 of, or a combination of, the groups described
in subparagraphs (C) or (E) of subsection (a)(1).</text>
</subsection><subsection id="H8B9F4E945B20450C86AD4124C09F1DB6"><enum>(d)</enum><header>Composition of
the project</header>
<paragraph id="H1AF67AA6FAEB43DA9C45DB257AFCD2C5"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The projects
described in this section shall include, but not be limited to, plant
acquisition, construction, conversion, expansion (including the acquisition of
land), equipment and related project costs, or to acquire the stock of a
corporation (as long as the value of the loan for the acquisition of the stock
does not exceed the fixed asset value attributable to such assets as would be
eligible for financing under subsection (a)).</text>
</paragraph><paragraph id="H0E32608A703943778201E9BA3B32B717"><enum>(2)</enum><header>Debt
refinancing</header><text>Any financing approved under this title may include a
limited amount of debt refinancing if the project involves the expansion of a
small business concern.</text>
</paragraph><paragraph id="H288E42ADC8FE425CB88CAAB1B19AD5AE"><enum>(3)</enum><header>Limitation</header><text>The
amount of the existing indebtedness may be refinanced and added to the
expansion cost if—</text>
<subparagraph id="HF1F297375FD7486BB9E045F5E5A5C5EF"><enum>(A)</enum><text>the existing
indebtedness does not exceed 50 percent of the project cost of the
expansion;</text>
</subparagraph><subparagraph id="H0B56B9819D184561B370759A9DFF72F9"><enum>(B)</enum><text>the proceeds of
the indebtedness were used to acquire land, including a building situated
thereon, to construct a building thereon, or to purchase equipment;</text>
</subparagraph><subparagraph id="H86BAFBFAA35B417A9819D41F7861D1B4"><enum>(C)</enum><text>the existing
indebtedness is collateralized by fixed assets;</text>
</subparagraph><subparagraph id="HFB255B7D04EF4A4C85AF1F348C741BA9"><enum>(D)</enum><text>the existing
indebtedness was incurred for the benefit of the small business concern;</text>
</subparagraph><subparagraph id="H625346DF204746628C5E76030D9791BA"><enum>(E)</enum><text>the financing
under this title will be used only for refinancing existing indebtedness or
costs relating to the project financed under this title;</text>
</subparagraph><subparagraph id="H13368E5204F2463798ACF19F7C7FD77D"><enum>(F)</enum><text>the financing
under this title will provide a substantial benefit to the borrower when
prepayment penalties, financing fees, and other financing costs are accounted
for;</text>
</subparagraph><subparagraph id="H9C0E04C0849F46C4AEB3BD7CF1BA5063"><enum>(G)</enum><text>the borrower has
been current on all payments due on the existing debt for not less than 1 year
preceding the date of refinancing; and</text>
</subparagraph><subparagraph id="H67ABFD0BB7DE4EA0986CE15D765A5B48"><enum>(H)</enum><text>the financing
under this title will provide better terms or rate of interest than the
existing indebtedness at the time of refinancing.</text>
</subparagraph></paragraph></subsection><subsection id="H840726590E054125876953B5E6C58BF2"><enum>(e)</enum><header>Definition</header><text>For
purposes of subparagraphs (J) and (K) of subsection (a)(3), the terms included
have the meanings given those terms under the Leadership in Energy and
Environmental Design (more generally referred to as LEED) standard for green
building certification, as determined by the Administrator through regulation
to be published in the Code of Federal
Regulations.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HD5D88CDC43644CEDB3E7AECB3EB8146B"><enum>218.</enum><header>Project funding
requirements</header><text display-inline="no-display-inline">Section 508 of
the Small Business Investment Act of 1958 (15 U.S.C. 697e) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H93F45C470E514860BFD1D837057902AE" style="OLC">
<section id="H40EC459653DE404BB9C142542AAE8A83"><enum>508.</enum><header>Project Funding
requirements</header>
<subsection id="H1728148E58814C9295469425C1F97F83"><enum>(a)</enum><header>In
general</header><text>Any project described in section 507 must meet the
funding standards set forth in this section.</text>
</subsection><subsection id="H0EACEF8E21B448FDA13EDDBFD6E395B7"><enum>(b)</enum><header>Size of
debenture</header><text>The Administrator shall only be permitted to guarantee
debenture issued by a certified development company up to the following
amounts:</text>
<paragraph id="H556BD6CEBBC14585A8F75A8E963D1B38"><enum>(1)</enum><text>$3,000,000 for any
project of a small business concern.</text>
</paragraph><paragraph id="H29400968239C41F2A07E1500DEB18496"><enum>(2)</enum><text>$4,000,000 for any
project that meets the public policy goals set forth in section
507(a)(3).</text>
</paragraph><paragraph id="HAF2588AD3AFD4AD3B3871B2703B61BBC"><enum>(3)</enum><text>$4,000,000 for any
project to be located in a low-income community as that term is described in
section 507(a)(3)(A).</text>
</paragraph><paragraph id="H97D4FCD4057B4BDE95F1D5944F8D5877"><enum>(4)</enum><text>$8,000,000 for
each project of a small manufacturer.</text>
</paragraph><paragraph id="HA7ADCA7D4C514499B45E36D81642E091"><enum>(5)</enum><text>$8,000,000 for
each project that reduces the borrower’s energy consumption by at least 10
percent.</text>
</paragraph><paragraph id="HB557D5E127D54F57B19F5BE6DDC7A20F"><enum>(6)</enum><text>$8,000,000 for
each project that generates renewable energy or renewable fuels, such as, but
not limited to, biodiesel or ethanol production.</text>
</paragraph><paragraph id="H9E95F2EFA4A644CCB180BB29C6F85C9C"><enum>(7)</enum><text>$10,000,000 for
each project for a small business concern that constitutes a major source of
employment as that term is used in section 7(b)(3)(E) of the Small Business Act
(15 U.S.C. 636(b)(3)(E)).</text>
</paragraph></subsection><subsection id="H30BE2BA7B003439B92BB877AD1DA6B11"><enum>(c)</enum><header>Funding from
Sources other than Debentures Issued by Certified Development
Companies</header>
<paragraph id="H9499BD7E0ECD4A00962EF973D0E74096"><enum>(1)</enum><header>In
general</header><text>Any project financed pursuant to this title must have the
following contributions from parties other than the debenture issued by the
certified development company:</text>
<subparagraph id="H2A7B60A8AD294F9788E46C86A438DE9C"><enum>(A)</enum><header>Funding from
institutions</header><text display-inline="yes-display-inline">If a small
business concern provides—</text>
<clause id="H225B2FC62309454891706A31FE526C20"><enum>(i)</enum><text>the minimum
contribution required by subparagraph (B), not less than 50 percent of the
total cost of any project financed shall come from State or local governments,
banks or other financial institutions, or foundations or other not-for-profit
institutions; and</text>
</clause><clause id="H6AE0806FE58843F6BCD8FF44B759BE60"><enum>(ii)</enum><text>more than the
minimum contribution required under subparagraph (B), any excess contribution
may be used to reduce the amount required from institutions described in clause
(i), except that the amount provided by such institution may not be reduced to
an amount that is less than the amount of the loan made by the
Administrator.</text>
</clause></subparagraph><subparagraph id="HD9DCD150941E4C4690092DE2899D90AF"><enum>(B)</enum><header>Funding from
small business concerns</header><text>The small business concern (or its
owners, stockholders, or affiliates) that will have a project financed pursuant
to this title shall provide—</text>
<clause id="H8BE9DDA1DC1E4D39BEBDB2EC2A4C9AEE"><enum>(i)</enum><text>at
least 15 percent of the total cost of the project financed if the small
business concern has been in operation for a period of 2 years or less;</text>
</clause><clause id="H63FD946DBF4E4F44829BC860A47180F4"><enum>(ii)</enum><text>at least 15
percent of the total cost of the project financed if the project involves
construction of a limited or single purposed building or structure;</text>
</clause><clause id="H90E140D3B643480898AB4EA286375E53"><enum>(iii)</enum><text>at least 20
percent of the total cost of the project financed if the project involves both
of the conditions in clauses (i) and (ii); or</text>
</clause><clause id="H8FECA9AA3D2D4875A88C85ECFB5A070D"><enum>(iv)</enum><text>at least 10
percent of the total cost of the project financed and not covered by clauses
(i), (ii), or (iii), at the discretion of the certified development
company.</text>
</clause></subparagraph></paragraph><paragraph id="H1D0F72AB83EF4F339EEBA6EC2D70A4B9"><enum>(2)</enum><header>Seller
financing</header><text>Seller-provided financing may be used to meet the
requirements of paragraph (1)(B), if the seller subordinates the interest of
the seller in the property to the debenture guaranteed by the
Administrator.</text>
</paragraph><paragraph id="H84945215A8D340548C10C486392598FF"><enum>(3)</enum><header>Collateralization</header>
<subparagraph id="H0FF26BE0E1B94540B02E71B3DB31E0BB"><enum>(A)</enum><header>In
general</header><text>The collateral provided by the small business concern
shall generally include a subordinate lien position on the property being
financed under this title, and is only one of the factors to be evaluated in
the credit determination. Additional collateral shall be required only if the
Administrator determines, on a case-by-case basis, that additional security is
necessary to protect the interest of the Government.</text>
</subparagraph><subparagraph id="HD6E8B649D02E4F2BA35A70CF2E7541FD"><enum>(B)</enum><header>Appraisals</header><text>With
respect to commercial real property provided by the small business concern as
collateral, an appraisal of the property by a State licensed or certified
appraiser—</text>
<clause id="HF8731271511F4523ABCA2B13C8DEF4BB"><enum>(i)</enum><text>shall be required
by the Administrator before disbursement of the loan if the estimated value of
that property is more than $400,000; or</text>
</clause><clause id="HD2D364DC424F4B1C89DAEDF17EEF1BD0"><enum>(ii)</enum><text>may be required
by the Administrator or the lender before disbursement of the loan if the
estimated value of that property is $400,000 or less, and such appraisal is
necessary for appropriate evaluation of creditworthiness.</text>
</clause></subparagraph><subparagraph id="H3812ACE66AE14AF8AE86657E7B8F8B7A"><enum>(C)</enum><header>Adjustment</header><text>The
Administrator shall periodically adjust the amount under subparagraph (B) to
account for the effects of inflation, provided that no such adjustment shall be
less than $50,000.</text>
</subparagraph></paragraph><paragraph id="HDFB85FD898C84173BEECBDB00EA13165"><enum>(4)</enum><header>Limitation on
leasing</header>
<subparagraph id="H0E3D8195079F4931A1A61B468209D8CC"><enum>(A)</enum><text>If the project
funded under this section includes the acquisition of a facility or the
construction of a new facility, the small business concern—</text>
<clause id="H093F38B392C54C51B9A164F0105CEFAB"><enum>(i)</enum><text>shall permanently
occupy and use not less than 50 percent of the project property; and</text>
</clause><clause id="H7419851F5C07433894EA3509C6F30A8D"><enum>(ii)</enum><text>may, on a
temporary or permanent basis, lease to others not more than 50 percent of the
project property.</text>
</clause></subparagraph><subparagraph id="H3AF53EC8866B4C73A7597A1E61603650"><enum>(B)</enum><text>For purposes of
this paragraph, the term <term>project property</term> means—</text>
<clause id="H0CE6A0912DB44C1C80BA0D676804D6AA"><enum>(i)</enum><text>the building and
any exterior areas used in connection with the building or a part thereof and
includes all of the parcels of real property included in the project in the
aggregate; and</text>
</clause><clause id="H95F47581586448EC80E20A7929BE6C19"><enum>(ii)</enum><text>occupancy and use
of the project property by the operating company shall be deemed to be
occupancy and use by the small business concern that received funding under
this section.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H48837F2564F149C2A03F0A48BA4FD72F"><enum>(d)</enum><header>Regulations</header><paragraph commented="no" display-inline="yes-display-inline" id="HEA3A2BE6FFD14EEB998DFA910EDB0B99"><enum>(1)</enum><text>The Administrator shall
promulgate regulations, after notice and comment, to implement the provisions
of this section within 60 days after enactment of the Small Business Financing
and Investment Act of 2009. The Administrator may limit the comment period to
15 days to meet this deadline.</text>
</paragraph><paragraph id="H41380FF31BDC41B7A971D86E129BAABF" indent="up1"><enum>(2)</enum><text>If the Administrator fails to
promulgate the regulations as provided in paragraph (1), all leases entered
into, absent clear and convincing evidence of fraud, shall be deemed to be in
compliance with the limitations on leasing in this subparagraph for purposes of
honoring the guarantee on the debenture issued by the certified development
company.</text>
</paragraph><paragraph id="H358E3F7ADB0444248AAADB8DA16C7FB3" indent="up1"><enum>(3)</enum><text>Any regulation of the Administrator
or interpretation of any regulation by the Administrator or the Office of
Hearings and Appeals that restricts the use of proceeds for leased projects
that was in effect on the date of enactment of the Small Business Financing and
Investment Act of 2009 shall hereby cease to apply.</text>
</paragraph><paragraph id="H56196EFB1DCA41B5ABC102A5E98B9C66" indent="up1"><enum>(4)</enum><text>Any interpretation of the leasing
provisions issued by the Administrator prior to the issuance of regulations
required by paragraph (1) shall be considered null and void and may be not be
used in any court of competent jurisdiction, be it Federal or State court, to
dishonor any guarantee of a debenture issued by a certified development company
for a project funded pursuant to this section.</text>
</paragraph></subsection><subsection id="H92A567B3136E40399D2C2F88FFF412C2"><enum>(e)</enum><header>Ownership
calculation</header><text>Ownership requirements to determine the eligibility
of a small business concern that applies for funding under this title shall be
determined without regard to any ownership interest of a spouse arising solely
from the application of the community property laws of a State for purposes of
determining marital interests.</text>
</subsection><subsection id="HBC8EDCAEC0C846068F9CDCBD57794F66"><enum>(f)</enum><header>Combination
financing</header><text>Financing under this title may be provided to a
borrower in the maximum amount provided in this section, and a loan guarantee
under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) may be provided
to the same borrower in the maximum amount provided in section 7(a)(3)(A) of
such Act, to the extent that the borrower otherwise qualifies for such
assistance.</text>
</subsection><subsection id="H604894F0AC204497B6D7BF55BC4750F5"><enum>(g)</enum><header>Rules for
Debentures Funding Projects in Low-Income Areas</header>
<paragraph id="H0E24C30A430B48A09A84B89D757236A4"><enum>(1)</enum><header>Size
standards</header><text>For purposes of determining the size of a small
business concern seeking funds for a project described in subsection (b)(3),
the size standard promulgated by the Administrator in section 121.201 of title
13, Code of Federal Regulations, as in effect on January, 1, 2009, or any
successor regulation, shall be increased by 25 percent.</text>
</paragraph><paragraph id="H89D715D3BA164C78829DF267A5964568"><enum>(2)</enum><header>Personal
liquidity</header>
<subparagraph id="H1F5DDEC36C5440B4810D4B00C00A211B"><enum>(A)</enum><header>In
general</header><text>The amount of personal resources of an owner for a
project described in subsection (b)(3) that are excluded from the amount
required to reduce the portion of the project funded by the Administrator shall
be not less than 25 percent more than that required for funding of any other
project described in subsection (b).</text>
</subparagraph><subparagraph id="HD689C95E952A4C7FB567F5FBC174B71D"><enum>(B)</enum><header>Definition</header><text>For
purposes of subparagraph (A), the term <term>owner</term> means any person that
owns not less than 20 percent of the equity or has not less than 20 percent of
the voting rights (in the case of a small business organized as a partnership)
of a small business concern seeking funds under this section.</text>
</subparagraph></paragraph></subsection><subsection id="H43D6D251197642B39969D0350182D3F9"><enum>(h)</enum><header>Applicability of
credit elsewhere and personal resources regulations</header><text display-inline="yes-display-inline">Except as provided in subsection (c)(1)(B)
with respect to project funding, the Administrator shall be prohibited from
applying the regulations set forth in sections 120.101 and 120.102 of title 13,
Code of Federal Regulations, as in effect on January 1, 2009, or any successor
regulation that applies a credit elsewhere or personal resources test to any
application for a loan under this title pending or filed after the date of
enactment of the Small Business Financing and Investment Act of
2009.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H2B0D0402CDC0477783391CFC12B6EEDF"><enum>219.</enum><header>Private
debenture sales and pooling of debentures</header><text display-inline="no-display-inline">Section 509 of the Small Business Investment
Act of 1958 (15 U.S.C. 697f) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HF3E308DB272647069874AE64EC58D4D2" style="OLC">
<section id="HC267257804034061ADC8AD37098A3D28"><enum>509.</enum><header>Private
debenture sales and pooling of debentures</header>
<subsection id="H41F44DB843A7453AA353BC328DF3A034"><enum>(a)</enum><header>Private
debenture sales</header><text>Notwithstanding any other law, rule, or
regulation, the Administrator shall sell to investors, either publicly or by
private placement, debentures issued by certified development companies
pursuant to this title for the full amount of the program levels authorized in
each fiscal year and if there is not authorization of a level, the amount of
debentures actually issued.</text>
</subsection><subsection id="H09B93AA64AA241F3AD0B6AC7B8116F87"><enum>(b)</enum><header>Federal
financing bank</header><text>Nothing in any provision of law shall be construed
to authorize the Federal Financing Bank to acquire—</text>
<paragraph id="H9032491E903B4012AEE0774F90E92DEB"><enum>(1)</enum><text>any obligation the
payment of principal or interest on which at any time has been guaranteed in
whole or in part under this title and which is being sold pursuant to the
provisions of this section;</text>
</paragraph><paragraph id="HC5962BDD97604E8FBA7722CEBC0CF42A"><enum>(2)</enum><text>any obligation
which is an interest in any obligation which is an interest in any obligation
described in paragraph (1); or</text>
</paragraph><paragraph id="H93D3BEF49933465BBB15B93FEFAB0DF2"><enum>(3)</enum><text>any obligation
which is secured by, or substantially all of the value of which is attributable
to, any obligation described in paragraph (1) or (2).</text>
</paragraph></subsection><subsection id="HF11AE20E21144F1091E7F50FA86DFEC1"><enum>(c)</enum><header>Pooling of
Debentures</header>
<paragraph id="HE7A8422C57F44BF6A190AF3AB27BBEFF"><enum>(1)</enum><header>In
general</header><text>The Administrator is authorized to issue trust
certificates representing ownership of all or a fractional part of debentures
issued by certified development companies and guaranteed under this title if
such trust certificates are based on and backed by a trust or pool approved by
the Administrator and composed solely of guaranteed debentures.</text>
</paragraph><paragraph id="H624ED86816DD4E16B0AADB6634A71876"><enum>(2)</enum><header>Guarantee of
trust certificates</header><text>The Administrator is authorized, upon such
terms and conditions as are deemed appropriate, to guarantee the timely payment
of the principal of and interest on trust certificates issued by the
Administrator or its agent for purposes of this section. Such guarantee shall
be limited to the extent of principal and interest on the guaranteed debentures
which compose the trust or pool. In the event that a debenture in such trust or
pool is prepaid, either voluntarily or in the event of default, the guarantee
of timely payment of principal and interest on the trust certificates shall be
reduced in proportion to the amount of principal and interest such prepaid
debenture represents in the trust or pool. Interest on prepaid or defaulted
debentures shall accrue and be guaranteed by the Administrator only through the
date of payment on the guarantee. During the term of the trust certificate, it
may be called for redemption due to prepayment or default of all debentures
constituting the pool.</text>
</paragraph><paragraph id="H3A5B2F749DE648F0AFD9A69E2AE9A295"><enum>(3)</enum><header>Full faith and
credit</header><text>The full faith and credit of the United States is pledged
to the payment of all amounts which may be required to be paid under any
guarantee of such trust certificates issued by the Administrator or its agent
pursuant to this section.</text>
</paragraph><paragraph id="H16374D062AFB48C880E2238DD9718EF3"><enum>(4)</enum><header>Prohibition on
guarantee fee for pools</header><text>The Administrator shall not collect any
fee for any guarantee under this section, provided that nothing herein shall
preclude any agent of the Administrator from collecting a fee approved by the
Administrator for the functions performed in paragraph (6)(F).</text>
</paragraph><paragraph id="HCB3E237FF44D47889C2A4FE6E9C0E016"><enum>(5)</enum><header>Subrogation</header>
<subparagraph id="H92E3658262514D23B89A07DCE8A04D29"><enum>(A)</enum><header>In
general</header><text>In the event the Administrator pays a claim under a
guarantee issued under this section, it shall be subrogated fully to the rights
satisfied by such payment.</text>
</subparagraph><subparagraph id="HBE8862317E654D468B23EC17D8DE3531"><enum>(B)</enum><header>Administrator
exercise of rights</header><text>No Federal, State, or local law shall preclude
or limit the exercise by the Administrator of its ownership rights in the
debentures constituting the trust or pool against which the trust certificates
are issued.</text>
</subparagraph></paragraph><paragraph id="H31EC24C9D7A2479C967392F02D94279D"><enum>(6)</enum><header>Central
Registration</header>
<subparagraph id="H449C07BC70A04D94BC16FE1B2934D0EE"><enum>(A)</enum><header>In
general</header><text>The Administrator shall provide for a central
registration of all trust certificates sold pursuant to this section.</text>
</subparagraph><subparagraph id="H5C52DACD7E2046A6BA106E62DB1DE070"><enum>(B)</enum><header>Contract</header><text>The
Administrator shall contract with an agent to carry out on behalf of the
Administrator the central registration functions of this section and the
issuance of trust certificates to facilitate pooling.</text>
</subparagraph><subparagraph id="HB1DF05C9C8024F8D9E62195CF22F0E5B"><enum>(C)</enum><header>Bond</header><text>The
Administrator shall require the contractor to provide a fidelity bond or
insurance in such amounts as is deemed necessary to fully protect the interests
of the Government.</text>
</subparagraph><subparagraph id="HD208B400A8954EB1900B50455B31B1F7"><enum>(D)</enum><header>Disclosure
requirements</header><text>The Administrator shall, prior to any sale, require
the seller to disclose to a purchaser of a trust certificate issued pursuant to
this section, information on terms, conditions, and yield of such
instruments.</text>
</subparagraph><subparagraph id="HFFDE5B65EE2F4E50B8066F44BE079449"><enum>(E)</enum><header>Authority to
regulate</header><text>The Administrator shall have the authority to regulate
brokers and dealers in trust certificates sold pursuant to this section.</text>
</subparagraph><subparagraph id="H5D611AE388704F6DB94F659EE297227C"><enum>(F)</enum><header>Book entry
permitted</header><text>Nothing in this paragraph shall prohibit the
utilization of a book-entry or other electronic form of registration for trust
certificates.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H91E9EAD8CF884D9A83E89351380B2331"><enum>220.</enum><header>Foreclosure and
liquidation of loans</header><text display-inline="no-display-inline">Section
510 of the Small Business Investment Act of 1958 (15 U.S.C. 697g) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HC6DC10FD8C604467A23202E67AC01FF3" style="OLC">
<section id="H639321B5245D4F07A34B6AE43887EADB"><enum>510.</enum><header>Foreclosure and
liquidation of loans</header>
<subsection id="H3B10197793B5409196E5A1623B3A1DA4"><enum>(a)</enum><header>Delegation of
authority</header><text>In accordance with this section, the Administrator
shall delegate to any certified development company that meets the eligibility
requirements of subsection (b)(1), the authority to foreclose and liquidate, or
to otherwise treat in accordance with this section, defaulted loans in its
portfolio that are funded with the proceeds of debentures guaranteed by the
Administrator pursuant to this title.</text>
</subsection><subsection id="H27B122C98A274726A87AF22B5DEFE3D3"><enum>(b)</enum><header>Eligibility for
delegation</header>
<paragraph id="HC66B4DB50D28401E94431AB5C9CA8C6F"><enum>(1)</enum><header>Requirements</header><text>A
certified development company shall be eligible for a delegation of authority
under subsection (a) if—</text>
<subparagraph id="H52244D2FB6FF45018E8EBE935A3C3CDB"><enum>(A)</enum><text>the certified
development company—</text>
<clause id="H09A278E143A8473282B743752273896E"><enum>(i)</enum><text>has participated
in the loan liquidation pilot program established by the Small Business
Programs Improvement Act of 1996 (15 U.S.C. 695 note), before the enactment of
the Small Business Financing and Investment Act of 2009;</text>
</clause><clause id="H74ADB98455E149E9898FA570B23C3C7B"><enum>(ii)</enum><text>is an accredited
or premier certified development company; or</text>
</clause><clause id="H64F44DD598234276868CE30EE895CC64"><enum>(iii)</enum><text>during the 3
fiscal years immediately prior to seeking such a delegation, has made an
average of not less than 10 loans per year that are funded with the proceeds of
debentures guaranteed under this title; and</text>
</clause></subparagraph><subparagraph id="HBFCDCCC15C114E8CA3EE1FC9F2E5FD97"><enum>(B)</enum><text>the certified
development company—</text>
<clause id="H28D7A7218DD64C7DAF0273BBE95CBAE0"><enum>(i)</enum><text>has one or more
employees—</text>
<subclause id="HE34D951995134E3F953B65E5DA4364C5"><enum>(I)</enum><text>with not less than
2 years of substantive, decisionmaking experience in administering the
liquidation and workout of problem loans secured in a manner substantially
similar to loans funded with the proceeds of debentures guaranteed under this
title; and</text>
</subclause><subclause id="HA82979F215704E15B6605DE49DC560F2"><enum>(II)</enum><text>who have
completed a training program on loan liquidation developed by the Administrator
in conjunction with a certified development company that meet the requirements
of this paragraph; or</text>
</subclause></clause><clause id="HF6232B6DC2904C09B2F6F5098706E935"><enum>(ii)</enum><text>submits to the
Administrator documentation demonstrating that the company has contracted with
a qualified third party to perform any liquidation activities and secures the
approval of the contract by the Administrator with respect to the
qualifications of the contractor and the terms and conditions of liquidation
activities.</text>
</clause></subparagraph></paragraph><paragraph id="H86F6F274746A4D8787330752351F1E42"><enum>(2)</enum><header>Confirmation</header><text>On
the request, the Administrator shall examine the qualifications of any
certified development company described in subsection (a) to determine if such
company is eligible for the delegation of authority under this section. If the
Administrator determines that a company is not eligible, the Administrator
shall provide the company, in writing, with the reasons for such ineligibility.
The certified development company shall be entitled to request delegated
authority and the Administrator shall review the request only to address
whether the certified development company has rectified the reasons for the
Administrator’s original determination of ineligibility.</text>
</paragraph></subsection><subsection id="HA076F858211146989D47DA84F86C16BD"><enum>(c)</enum><header>Scope of
Delegated Authority</header>
<paragraph id="H7D2F5310FCAF4BE1AB5AD0AF6D0575C3"><enum>(1)</enum><header>In
general</header><text>Each certified development company to which the
Administrator delegates authority under subsection (a) may with respect to any
loan described in subsection (a)—</text>
<subparagraph id="H1C7396F041F6481586097581588362B9"><enum>(A)</enum><text>perform all
liquidation and foreclosure functions, including the purchase in accordance
with this subsection of any other indebtedness secured by the property securing
the loan, in a reasonable and sound manner according to commercially accepted
practices, pursuant to a liquidation plan approved in advance by the
Administrator under paragraph (2)(A);</text>
</subparagraph><subparagraph id="HCAB6E63C005D418A8FB589D4B70F5065"><enum>(B)</enum><text>litigate any
matter relating to the performance of the functions described in subparagraph
(A), except that the Administrator may—</text>
<clause id="H71E9CF168FB0464394B84B4B958B17D0"><enum>(i)</enum><text>defend or bring
any claim if—</text>
<subclause id="H301066ED113E407B814FC6193F1A3136"><enum>(I)</enum><text>the outcome of the
litigation may adversely affect the Administrator’s management of the program
established under this title; or</text>
</subclause><subclause id="H5EDAFD4F88004C579D2D874DE2B6C0B9"><enum>(II)</enum><text>the Administrator
is entitled to legal remedies not available to a certified development company
and such remedies will benefit either the Administrator or the certified
development company; and</text>
</subclause></clause><clause id="H0413ADA6016F48519635CEA636DA0CC6"><enum>(ii)</enum><text>oversee the
conduct of any such litigation; and</text>
</clause></subparagraph><subparagraph id="H37982C502F81457DA264C299B7236FD1"><enum>(C)</enum><text>take other
appropriate actions to mitigate loan losses in lieu of total liquidation or
foreclosures, including the restructuring of a loan in accordance with prudent
loan servicing practices and pursuant to a workout plan approved in advance by
the Administrator under paragraph (2).</text>
</subparagraph></paragraph><paragraph id="HCB627FFF2E0A4D249D4B087E0C30A597"><enum>(2)</enum><header>Administrator
approval of plans</header>
<subparagraph id="HEF44E6D018894F3D917358C9679C5240"><enum>(A)</enum><header>Certified
development company submission of plans</header><text>Before carrying out
functions described in paragraph (1)(A) or (1)(C), the certified development
company shall submit to the Administrator a proposed liquidation plan, any
proposal for the Administrator to the purchase of any other indebtedness
secured by the property securing a defaulted loan, or a workout plan or any
combination thereof.</text>
</subparagraph><subparagraph id="H2619F525A2DF4211A563B71DE01E36B8"><enum>(B)</enum><header>Administrator
approval procedures</header>
<clause id="H8D853E80BC484508B6C52D0A58E6D0D9"><enum>(i)</enum><header>Timing</header><text>Not
later than 15 business days after the plans described in subparagraph (A) are
received by the Administrator, the Administrator shall approve or reject the
plan.</text>
</clause><clause id="H82910304C89542A49B82905B8E06B6B7"><enum>(ii)</enum><header>Notice of no
decision</header><text>With respect to any plan that cannot be approved or
denied within the 15-day period required by clause (i), the Administrator shall
within such period provide in accordance with subparagraph (E) notice to the
company that submitted the plan.</text>
</clause></subparagraph><subparagraph id="H1E294845C27E4117AD67BB42CCB764A1"><enum>(C)</enum><header>Routine
actions</header><text>In carrying out the functions described in paragraph
(1)(A), a certified development company may undertake routine actions not
addressed in a liquidation or workout plan without obtaining additional
approval from the Administrator.</text>
</subparagraph><subparagraph id="H5A4350FF180E449FBB2CDE8158E8B238"><enum>(D)</enum><header>Compromise of
indebtedness</header><text>In carrying out functions described in paragraph
(1)(A), a certified development company may—</text>
<clause id="H62454EED29AF4600BE04135FC445371D"><enum>(i)</enum><text>consider an offer
made by an obligor to compromise the debt for less than the full amount owing;
and</text>
</clause><clause id="H15526A74A520419E8BCFDFA6C64D7A1E"><enum>(ii)</enum><text>pursuant to such
offer, release any obligor or other party contingently liable, if the company
secures the written approval of the Administrator.</text>
</clause></subparagraph><subparagraph id="HEEB39416642249F8878539D600F17714"><enum>(E)</enum><header>Contents of
notice of no decision</header><text>Any notice provided by the Administrator
pursuant to subparagraph (B)(ii) shall—</text>
<clause id="H67F3A62FD0F246149B368240389F72D8"><enum>(i)</enum><text>be
in writing stating the specific reasons for which the Administrator was unable
to act on the request submitted pursuant to subparagraph (A);</text>
</clause><clause id="HCF0835024A914FB38BA5C0720D1BDBF6"><enum>(ii)</enum><text>provide an
estimate of the additional time needed for the Administrator to reach a
decision on the request; and</text>
</clause><clause id="H101FB6B7296D42849B4FCB1053FD92EA"><enum>(iii)</enum><text>specify any
additional information or documentation that the Administrator needs to make a
decision but was not provided in the plan submitted by the certified
development company.</text>
</clause></subparagraph></paragraph><paragraph id="HD1D051672C8B4AA68B2B91D909D49F25"><enum>(3)</enum><header>Conflict of
interest</header><text>In carrying out functions described in paragraph (1), a
certified development company shall take no action that would result in an
actual or apparent conflict of interest between the company (or any employee of
the company) and any third-party lender, associate of a third-party lender, or
any other person participating in a liquidation, foreclosure, or loss
mitigation action.</text>
</paragraph></subsection><subsection id="H00BEB1EBCCF74C1690C9DFBB13437FF3"><enum>(d)</enum><header>Suspension or
Revocation of Authority</header>
<paragraph id="H1C2B5EE7641F4DB79F17A1EFDB8BBD95"><enum>(1)</enum><header>In
general</header><text>The Administrator may revoke or suspend a delegation of
authority under this section to a certified development company if the
Administrator determines that the company—</text>
<subparagraph id="H9BCA80479EAC41968BC3F32217B02E92"><enum>(A)</enum><text>does not meet the
requirements of subsection (b)(1);</text>
</subparagraph><subparagraph id="H73CCEBD2248D4F96AE1C488F0401CAA2"><enum>(B)</enum><text>violated any
applicable law or rule or regulation of the Administrator that in the
estimation of the Administrator requires revocation; or</text>
</subparagraph><subparagraph id="HA98D436BCFC84FF1973B592518BB7565"><enum>(C)</enum><text>fails to comply
with any reporting that may be established by the Administrator relating to the
establishment of eligibility in subsection (b)(1) or carrying out the functions
described in subsection (c)(1).</text>
</subparagraph></paragraph><paragraph id="H9A09A1AE8A994F8281203E43A71EF04B"><enum>(2)</enum><header>Written
notice</header><text>The Administrator shall provide in writing detailed reason
why the delegation of authority was suspended or revoked.</text>
</paragraph></subsection><subsection id="H1E6AAFB4F2D74B929B5AE377D86ED48C"><enum>(e)</enum><header>Participation in
liquidation</header>
<paragraph id="HC154E5AA0A774B428A1AB10D1319AAB5"><enum>(1)</enum><header>In
general</header>
<subparagraph id="HD96184D04EB5474EA3009C345217925E"><enum>(A)</enum><header>Contract with
qualified third party</header><text>A certified development company which
elects not to apply for authority to foreclose and liquidate defaulted loans
under this section, or which the Administrator 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.</text>
</subparagraph><subparagraph id="H8AE4D547E4094E9DB0D50521C7478C7B"><enum>(B)</enum><header>Contract
approval</header><text>The contract entered into by the certified development
company specified in subparagraph (A) shall be contingent upon approval by the
Administrator with respect to the qualifications of the contractor and the
terms and conditions of liquidation activities. The Administrator shall not
unreasonably withhold such approval.</text>
</subparagraph><subparagraph id="H44B5FC5629394F51A2B3A513BDAA6D54"><enum>(C)</enum><header>Notification of
rejection</header><text>If the Administrator rejects the contract, the
Administrator shall provide a notice to the certified development company, in
writing, explaining the reasons for such rejection within ten business days
after submission of the contract.</text>
</subparagraph><subparagraph id="HD829EBF91CC9427CB380E7F6292683CF"><enum>(D)</enum><header>Resubmittal</header><text>The
certified development company shall be permitted to resubmit the contract and
the Administrator’s review of any such resubmittal shall be limited to
insufficiencies described in the notification of rejection.</text>
</subparagraph><subparagraph id="HCC1EA127D65441939D6C89510AC1D53C"><enum>(E)</enum><header>Regulations</header><text>The
Administrator shall promulgate regulations, after notice and opportunity for
comment, adopting standards for the approval of qualified third-party
contractors within 90 days after the date of enactment of the Small Business
Financing and Investment Act of 2009.</text>
</subparagraph><subparagraph id="H7DA31B0A94874E4E872BB54B4568C314"><enum>(F)</enum><header>Failure to
promulgate regulations</header><text>If the Administrator fails to promulgate
such regulations, any contract for liquidation entered into by a certified
development company under this subsection shall be considered valid for the
purposes of this subsection and subsection (f).</text>
</subparagraph><subparagraph id="HB6A6FDC33213406FB5DC90F052910B59"><enum>(G)</enum><header>Effect of
administrator’s promulgation of regulations</header><text>If the Administrator
promulgates regulations after the deadline specified in subparagraph (E), those
regulations shall not have any retroactive application with respect to
contracts that are described in subparagraph (F).</text>
</subparagraph></paragraph><paragraph id="H17280E949F17459FA3311D9CA1C07E44"><enum>(2)</enum><header>Commencement</header><text>This
subsection shall not require any certified development company to liquidate
defaulted loans until the Administrator implements a system to compensate and
reimburse certified development companies for liquidation of any defaulted
loans.</text>
</paragraph></subsection><subsection id="H3C2213A4784B420898A3469E63B165F7"><enum>(f)</enum><header>Compensation and
Reimbursement</header>
<paragraph id="H8C1FBDA64D2E49588F5503128D1D090C"><enum>(1)</enum><header>Reimbursement of
expenses</header><text>The Administrator shall reimburse each certified
development company for all expenses paid by such company as part of the
foreclosure and liquidation activities taken to carry out this section, if the
expenses—</text>
<subparagraph id="H5C157874E580416F8E68BB625C9E075F"><enum>(A)</enum><text>were—</text>
<clause id="H5D4D5D295FA348D3826795477A9E3B42"><enum>(i)</enum><text>approved in
advance by the Administrator, either specifically in a plan submitted pursuant
to subsection (c) or generally, such as, but not limited to, actions approved
by the Administrator in regulations or other interpretative issuances;
or</text>
</clause><clause id="H46FE3CEAF8944F15BB166AB4600D9159"><enum>(ii)</enum><text>incurred by the
development company on an emergency basis without prior approval from the
Administrator, if the Administrator determines that the expenses were
reasonable and appropriate; and</text>
</clause></subparagraph><subparagraph id="H707CF139FB4348AE8B7436756208B693"><enum>(B)</enum><text>are submitted by
the certified development company to the Administrator not later than 3 years
after the date the expense was incurred or the bill therefore is submitted to
the certified development company, whichever is later.</text>
</subparagraph></paragraph><paragraph id="H36CBCCA8A6624A228E79133FF2AF3378"><enum>(2)</enum><header>Alternative
reimbursement</header><text>As an alternative to the procedure in paragraph
(1), a certified development company may elect to obtain reimbursement for all
such expenses from the proceeds of any collateral provided by the borrower that
was liquidated by the certified development company if the expenses comply with
the requirements of paragraph (1). Within 6 months of the reimbursement, the
certified development company shall provide the Administrator with the same
information and documentation it would be required to submit to obtain payment
from the Administrator.</text>
</paragraph><paragraph id="H2CB570CF472842188440A8DEADBA9A0F"><enum>(3)</enum><header>Regulations</header><text>The
Administrator shall promulgate regulations, after notice and comment to carry
out the provisions of paragraphs (1) and (2). If the Administrator does not
promulgate such regulations within one year, certified development companies
shall be authorized, notwithstanding the requirements of subsection (e)(2), to
liquidate defaulted loans and such costs and expenses incurred, absent clear
and convincing evidence of fraud, shall be deemed to be approved.</text>
</paragraph><paragraph id="H17130BAFAB494CD697799BF41A3B1B24"><enum>(4)</enum><header>Compensation for
results</header>
<subparagraph id="H23F74CCBB5294B138D5F4E95937CE53A"><enum>(A)</enum><header>Development</header><text>In
regulations promulgated pursuant to paragraph (3), the Administrator also shall
develop a schedule of compensation that provides monetary incentives for
certified development companies in order to increase recoveries on defaulted
loans.</text>
</subparagraph><subparagraph id="H3E36AA2A1A9D47998F96A44F650E846C"><enum>(B)</enum><header>Criteria</header><text>The
schedule shall—</text>
<clause id="HA17AA4FE74CE4ABAA3E7BE56C9A7480D"><enum>(i)</enum><text>be
based on a percentage of the net amount recovered, but shall not exceed a
maximum amount; and</text>
</clause><clause id="H6A226C55268D42AEA856B84E85EA035D"><enum>(ii)</enum><text>not apply to any
foreclosure which is conducted under a contract between a certified development
company and a qualified third party to perform the foreclosure and
liquidation.</text>
</clause></subparagraph><subparagraph id="HD15BC373BB184F99977D999D377228A8"><enum>(C)</enum><header>Payment</header><text>The
Administrator shall transmit the compensation provided herein to the
development company from the proceeds of liquidated collateral, unless the
Administrator utilizes another source for funds, within 30 days from the date
when the liquidation case has been closed and documentation
received.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAE1443690E10481191C1624B3E05A97A"><enum>221.</enum><header>Reports and
regulations</header><text display-inline="no-display-inline">Title V of the
Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HCB37DEB0E0B242E59B25E6437427C6D6" style="OLC">
<section id="H4200FF619C9B40BA8279703CC426D2C3"><enum>511.</enum><header>Reports</header>
<subsection id="HF61AA682B4D94DF5A254181480B65E5B"><enum>(a)</enum><header>Premier
certified development companies</header><text>The Administrator shall report
annually to the Committee on Small Business of the House of Representatives and
the Committee on Small Business and Entrepreneurship of the Senate on the
implementation of section 504. Each report shall include—</text>
<paragraph id="H0048DE447CF646DF830EE63C3CE822F7"><enum>(1)</enum><text>the number of
premier certified development companies;</text>
</paragraph><paragraph id="HB03D0045AD8F45AC878629A0CBD7040D"><enum>(2)</enum><text>the debenture
volume of each premier certified development company;</text>
</paragraph><paragraph id="H735123B7169149EE9DF52C2079FEC5CB"><enum>(3)</enum><text>a comparison of
the loss rate for premier certified development companies to the loss rate for
accredited or certified development companies; and</text>
</paragraph><paragraph id="H0E8FD05557FB4A0091117083B4AA28C5"><enum>(4)</enum><text>such other
information as the Administrator deems appropriate.</text>
</paragraph></subsection><subsection id="H36CE029EFE524D938147657FC64E82CF"><enum>(b)</enum><header>Reports on
Liquidation and Foreclosures</header>
<paragraph id="HDF8ECD3FF5864453A473172EB73499CF"><enum>(1)</enum><header>In
general</header><text>Based on information provided by certified development
companies and the Administrator, the Administrator shall submit annually to the
Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives a report on the
results of delegation of authority under section 510.</text>
</paragraph><paragraph id="H2299A66F377D4E2E8700BC1EA2AEDB8F"><enum>(2)</enum><header>Contents</header><text>Each
report submitted under paragraph (1) shall include the following
information:</text>
<subparagraph id="H213F09FB9D97434AB153187E85203505"><enum>(A)</enum><text>With respect to
each loan foreclosed or liquidated by a certified development company, or for
which losses were otherwise mitigated by pursuant to a workout plan—</text>
<clause id="HAEE7A774F3B64AEAA6C3A68ED47CCC41"><enum>(i)</enum><text>the total cost of
the project financed with the loan;</text>
</clause><clause id="H8592CE28F35444B4BCA1BF4897581239"><enum>(ii)</enum><text>the total
original dollar amount guaranteed by the Administration;</text>
</clause><clause id="HDC2113DC73954346BB464B14A1A8E586"><enum>(iii)</enum><text>the total dollar
amount of the loan at the time of liquidation, foreclosure, or mitigation of
loss;</text>
</clause><clause id="H793FBE3EF8B147E1ACEF1F4A942F6F7C"><enum>(iv)</enum><text>the total dollar
losses resulting from the liquidation, foreclosure, or mitigation of loss;
and</text>
</clause><clause id="H8FAB5B79D5A347CEB1F5668C569193DA"><enum>(v)</enum><text>the total
recoveries resulting from the liquidation, foreclosure, or mitigation of loss,
both as a percentage of the amount guaranteed and the total cost of the project
financed.</text>
</clause></subparagraph><subparagraph id="HA1D25250FBEA413787A424F7904FA386"><enum>(B)</enum><text>With respect to
each certified development company to which authority is delegated under
section 510, the totals of each of the amounts described in clauses (i) through
(v) of subparagraph (A).</text>
</subparagraph><subparagraph id="HAEF930ED21AE480CAEABBF48AA049978"><enum>(C)</enum><text>With respect to
each certified development company that contracts with a qualified third-party
contractor pursuant to section 510(e), the total of each of the amounts
described in clauses (i) through (v) of subparagraph (A).</text>
</subparagraph><subparagraph id="HFF102A0DAE394E09A5EFE30BFF581A5B"><enum>(D)</enum><text>With respect to
all loans subject to foreclosure, liquidation, or mitigation under section 510,
the totals of each of the amounts described in clauses (i) through (v) of
subparagraph (A).</text>
</subparagraph><subparagraph id="HB44CF2DFC5D74D7CAB66C7C4828DF910"><enum>(E)</enum><text>A comparison
between—</text>
<clause id="HB287D8F90C4745E9A6E19AA31DC0BE4A"><enum>(i)</enum><text>the information
provided under subparagraph (D) with respect to the 12-month period preceding
the date on which the report is submitted; and</text>
</clause><clause id="HA36922F68CFE462D83ABE705BB34CA9C"><enum>(ii)</enum><text>the same
information with respect to loans foreclosed and liquidated, or otherwise
treated, by the Administrator during the same period.</text>
</clause></subparagraph><subparagraph id="H361ADDD8F7134E3C9E07BA38F2E173FC"><enum>(F)</enum><text>The number of
times that the Administrator has failed to approve or reject a liquidation
plan, workout plan, request to purchase indebtedness, or failed to approve a
third-party contractor under section 510, including specific information
regarding the reasons for the Administrator’s failure and any delays that
resulted.</text>
</subparagraph></paragraph></subsection><subsection id="HA2E8347C4CCD474190252C5C286F8644"><enum>(c)</enum><header>Reports on
Combination Financing</header><text display-inline="yes-display-inline">Not
later than 90 days after the date of enactment of the Small Business Financing
and Investment Act of 2009, and annually thereafter, the Administrator shall
submit a report to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of Representatives
that—</text>
<paragraph id="H092E848239284F0CA789ECC48E1DDB5C"><enum>(1)</enum><text display-inline="yes-display-inline">includes the number of small business
concerns that have financing under both section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) and title V of the Small Business Investment Act of 1958 (15
U.S.C. 695 et seq.) during the year before the year of that report; and</text>
</paragraph><paragraph id="HAA7279ACBDDD41E3982BD73FADD9584F"><enum>(2)</enum><text>describes the
total amount and general performance of the financing described in paragraph
(1).</text>
</paragraph></subsection><subsection id="HEEC4A5FE68E743C39F7FCE65EF19013A"><enum>(d)</enum><header>Report on Other
Economic Development Activity</header><text display-inline="yes-display-inline">The Administrator shall compile and submit
to the Committee on Small Business of the House of Representatives and the
Committee on Small Business and Entrepreneurship of the Senate on an annual
basis, commencing in the year that the Small Business Financing and Investment
Act of 2009 is enacted, a report that describes the economic and community
development activities, other than loan making under this title, of each
certified development company during the prior fiscal year. The Administrator
may contract with another party, including non-governmental entities, to
collect information or otherwise assist in the preparation of the report
required by this subsection.</text>
</subsection></section><section id="H14212C3651224D5EBB756CD251E07AFE"><enum>512.</enum><header>Promulgation of
regulations under this title</header>
<subsection id="HA15F637E78054FF4B6AB12B932946F9B"><enum>(a)</enum><header>Deadlines for
implementing regulations</header><text>Except as expressly provided elsewhere
in the Small Business Financing and Investment Act of 2009, the Administrator
shall promulgate regulations under this title, after providing notice and the
opportunity for comment, within 180 days after the date of enactment of that
Act.</text>
</subsection><subsection id="H0EFF4F816EC04D70999011E0A9B97B32"><enum>(b)</enum><header>Notice and
comment requirements in general</header><text display-inline="yes-display-inline">Except as otherwise provided elsewhere in
this title, the Administrator shall provide, after the date of enactment of the
Small Business Financing and Investment Act of 2009, notice of any proposed
change to a regulation implementing this title (whether in existence on the
date of enactment of the Small Business Financing and Investment Act of 2009 or
subsequently adopted), publish such notification in the Federal Register, and
provide a comment period of not less than 60
days.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H652EF6CA34F04844A4C020D2F0D68A17"><enum>222.</enum><header>Program
name</header><text display-inline="no-display-inline">Title V of the Small
Business Investment Act of 1958 (15 U.S.C. 695 et seq.), as amended by this
Act, is further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H80BD8AB4AB7142DE9CD7981692029901" style="OLC">
<section id="H155C7008A3754977875CC97BD915AE74"><enum>513</enum><header>Program
name</header>
<subsection id="H9B7453D5D5AE4BEFBAD946BCBC054D3C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The program created
by this title shall be referred to as the CDC Economic Development Loan
Program.</text>
</subsection><subsection id="H5CF3E60500974DC7B0F39B41EEF28CB7"><enum>(b)</enum><header>Modification of
materials used</header><text>Not later than 60 days after the date of enactment
of the Small Business Financing and Investment Act of 2009, the Administrator
shall modify all documents and websites to conform to the name change made by
this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="HBFBFEC45B6634E919474CD329F986F3E"><enum>C</enum><header>Miscellaneous</header>
<section id="HDB083E997A7F4EDD86DD50AA6DEDCD5C"><enum>231.</enum><header>Report on
standard operating procedures</header>
<subsection id="HFAE1A61249594A7DB8D0D7ED43FA533E"><enum>(a)</enum><header>Report</header><text>The
Administrator of the Small Business Administration shall submit to the
Committee on Small Business of the House of Representatives and the Committee
on Small Business and Entrepreneurship of the Senate a report within 180 days
after enactment of this Act identifying each Standard Operating Procedure
issued after January 1, 1996, that relates to the operation of a development
company (in any manner) under title V of the Small Business Investment Act of
1958, that is still in effect on the date of enactment of this Act, and the
regulation codified in title 13 of the Code of Federal Regulations that
authorizes the issuance of the Standard Operating Procedure and separately
identifies the regulation that the Standard Operating Procedure purports to
interpret.</text>
</subsection><subsection id="HA7A1DE0002594B9F82553F5A208AB32E"><enum>(b)</enum><header>Inapplicability</header><text>If
the Administrator fails to complete the report by the time specified in
subsection (a), the Administrator shall, unless there is clear and convincing
evidence of fraud, honor the terms and conditions of any debenture to the
entity that issued the debenture pursuant to title V of the Small Business
Investment Act of 1958 without regard to whether the entity complied with any
of the Standard Operating Procedures described in subsection (a) until such
time as the Administrator submits the report required under subsection
(a).</text>
</subsection><subsection id="HDD68A8A4D93C445CA271D84A1A295EF0"><enum>(c)</enum><header>Definition</header><text>For
purposes of this section, the term <term>Standard Operating Procedure</term>
has the meaning given that term in section 120.10 of title 13, Code of Federal
Regulations, as in effect on January 1, 2009, and includes any reference to the
acronym <quote>SOP</quote>.</text>
</subsection></section><section id="H8570256263F84BD0947A46FFBA4A0B6D"><enum>232.</enum><header>Alternative
size standard</header>
<subsection id="HEFE7594DA8044E1597F2FD56BABD49D4"><enum>(a)</enum><header>Review and
study</header>
<paragraph id="H759230439FC14244982AED0D01DE44C4"><enum>(1)</enum><header>In
general</header><text>The Administrator of the Small Business Administration
shall study and review the optional size standard set forth in section
121.301(b) of title 13, Code of Federal Regulations, as in effect on January 1,
2009, for eligibility of a small business concern for financing under title V
of the Small Business Investment Act of 1958.</text>
</paragraph><paragraph id="HA8CDB746F35E4D88827487818FCD940B"><enum>(2)</enum><header>Contents</header><text>The
review shall analyze whether the alternative size standard includes the
business concerns defined in section 3(a)(1) of the Small Business Act and
what, if any, regulatory changes are needed in the alternative size
standard.</text>
</paragraph><paragraph id="H984DEA0E345A402DA8D92E84AEC16BDF"><enum>(3)</enum><header>Submission to
Congress</header><text>The Administrator shall submit its study and conclusions
within 180 days after the date of enactment of the Small Business Financing and
Investment Act of 2009 to the Committee on Small Business and Entrepreneurship
of the Senate and the Committee on Small Business of the House of
Representatives.</text>
</paragraph></subsection><subsection id="HE6E87CDB8EE54A548B06EC44FD035184"><enum>(b)</enum><header>Issuance of
regulations</header><text display-inline="yes-display-inline">Any changes in
the optional size standard described in subsection (a)(1) shall be promulgated
within 180 days of the submission of the report to committees referred to in
paragraph (3) of subsection (a).</text>
</subsection><subsection id="H71C8F626EEDF480E9FA5BC1DD61A774E"><enum>(c)</enum><header>Interim
alternative size standard</header><text>Until the Administrator promulgates
regulations either readopting the size standard referred to in subsection
(a)(1) or adopts a new alternative size standard, the alternative size standard
shall be a maximum tangible net worth of not more than $15,000,000 and an
average net income after the payment of Federal taxes (but excluding any
carryover losses) for the preceding two fiscal years not more than
$5,000,000.</text>
</subsection></section></subtitle><enum>III</enum><header>Microlending
expansion</header>
<section id="H689D6EAD0293415790B71013B00B69AA"><enum>301.</enum><header>Microloan
credit building initiative</header><text display-inline="no-display-inline">Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7F388CBDE6E841A68A58E77274F4AA5E" style="OLC">
<paragraph id="HBF77F37907D247118D0250BF9B8BDADC"><enum>(14)</enum><header>Credit
reporting information</header><text display-inline="yes-display-inline">The
Administrator shall establish a process, for use by an intermediary making a
loan to a borrower under this subsection, under which the intermediary shall
provide to the major credit reporting agencies the information about the
borrower, both positive and negative, that is relevant to credit reporting,
such as the payment activity of the borrower on the loan. Such process shall
allow an intermediary the option of providing information to the major credit
reporting agencies through the Administration or
independently.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H918B360B135B4F52814A3DCE3DDB5F75"><enum>302.</enum><header>Flexible credit
terms</header><text display-inline="no-display-inline">Section 7(m) of the
Small Business Act (15 U.S.C. 636(m)), as amended by this Act, is further
amended—</text>
<paragraph id="H4950810BCB1249CB93BCCFEBE462F632"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)(i) by striking
<quote>short-term,</quote>;</text>
</paragraph><paragraph id="H68BAC0620176423A9AFC0ACD5D1222E2"><enum>(2)</enum><text>in paragraph
(6)(A) by striking <quote>short-term,</quote>; and</text>
</paragraph><paragraph id="H4FF5614AAA164E6AA72121A51B831C75"><enum>(3)</enum><text>in paragraph
(11)(B) by striking <quote>short-term,</quote>.</text>
</paragraph></section><section id="H93944F24569646F4951375C23AAE979F"><enum>303.</enum><header>Increased
program participation</header><text display-inline="no-display-inline">Section
7(m)(2) of the Small Business Act (15 U.S.C. 636(m)(2)) is amended—</text>
<paragraph id="HB8747671D8784C5784512854DC24A32D"><enum>(1)</enum><text>in subparagraph
(A) by striking <quote>paragraph (10)</quote> and inserting <quote>paragraph
(11)</quote>; and</text>
</paragraph><paragraph id="H15DBA4EFDCA644BD93B1FB187278423E"><enum>(2)</enum><text>by amending
subparagraph (B) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE61C8F63C81D4A1F89EFC0BC01382CEF" style="OLC">
<subparagraph id="H347EB89AB2554EBBBBDC83BEBCE63784"><enum>(B)</enum><text display-inline="yes-display-inline">has—</text>
<clause id="H2B7DD5E43F06423C925EE759BFE3A5AB"><enum>(i)</enum><text>at
least—</text>
<subclause id="H47F38AD39E8C4463A7F3175FC1686585"><enum>(I)</enum><text>1 year of
experience making microloans to startup, newly established, or growing small
business concerns; or</text>
</subclause><subclause id="HFF261117C3584AFAAF5DF25AC0616F2B"><enum>(II)</enum><text>1 full-time
employee who has not less than 3 years of experience making microloans to
startup, newly established, or growing small business concerns; and</text>
</subclause></clause><clause id="H69E1E0BE7A954864A266C87B6439697C"><enum>(ii)</enum><text>at least—</text>
<subclause id="H2CCF914D7373445290A90991017FDCF7"><enum>(I)</enum><text>1 year of
experience providing, as an integral part of its microloan program, intensive
marketing, management, and technical assistance to its borrowers; or</text>
</subclause><subclause id="H7F579AF1D8074E9A9E0D08EB19E5691B"><enum>(II)</enum><text display-inline="yes-display-inline">1 full-time employee who has not less than
1 year of experience providing intensive marketing, management, and technical
assistance to
borrowers.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H72973DEC596A495BB5233A778BD2997C"><enum>304.</enum><header>Increased limit
on intermediary borrowing</header><text display-inline="no-display-inline">Section 7(m)(3)(C) of the Small Business Act
(15 U.S.C. 636(m)(3)(C)) is amended—</text>
<paragraph id="H5E787F74F0C340E1BCC8160DB7CF4258"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>$750,000</quote> and
inserting <quote>$1,000,000</quote>;</text>
</paragraph><paragraph id="H85A2B499CCBB407CB98780797C05AE35"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>$3,500,000</quote> and
inserting <quote>$7,000,000</quote>; and</text>
</paragraph><paragraph id="H86D485375FE342E59397EDCF444D7C98"><enum>(3)</enum><text>by adding at the
end the following: <quote>The Administrator may treat the amount of $7,000,000
in this subparagraph as if such amount is $10,000,000 if the Administrator
determines, with respect to an intermediary, that such treatment is
appropriate.</quote>.</text>
</paragraph></section><section id="H0F07DD076E014F2495C455DC152D10BC"><enum>305.</enum><header>Expanded
borrower education assistance</header><text display-inline="no-display-inline">Section 7(m)(4)(E) of the Small Business Act
(15 U.S.C. 636(m)(4)(E)) is amended—</text>
<paragraph id="HBD5A8D837C494967952945E68AAB5E69"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i) by striking <quote>25
percent</quote> and inserting <quote>35 percent</quote>; and</text>
</paragraph><paragraph id="HC695545500AF4D06ACBCACC3EC4F09D6"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (ii) by striking <quote>25
percent</quote> and inserting <quote>35 percent</quote>.</text>
</paragraph></section><section display-inline="no-display-inline" id="H8967F8B2397141CFBA52321CC6AB119F" section-type="subsequent-section"><enum>306.</enum><header>Young Entrepreneurs
program</header><text display-inline="no-display-inline">Section 7(m)(4) of the
Small Business Act (15 U.S.C. 636(m)(4)) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="HCD9CBF1F347346F79479EB9895D042E6" style="OLC">
<subparagraph id="HD44B7E53E6F84745A53C61A79BA2F088"><enum>(G)</enum><header>Young
Entrepreneurs program</header>
<clause id="HD6AE7ED9014D47D1A575203F3FEC88C3"><enum>(i)</enum><header>In
general</header><text>An intermediary that receives a grant under paragraph
(1)(B)(ii) may establish a program for the geographic area served by such
intermediary that provides to young entrepreneurs technical assistance
regarding the following:</text>
<subclause id="H7BB83021822C409AA49937C85AC8FD32"><enum>(I)</enum><text>Establishing or
operating a small business concern in the geographic area served by the
intermediary.</text>
</subclause><subclause id="H49C8B45456D0474092542302752F8F58"><enum>(II)</enum><text>Acquiring or
securing financing to carry out the activities described in subclause
(I).</text>
</subclause></clause><clause id="HC5F7C8F493E3492A8D520C5949432054"><enum>(ii)</enum><header>Young
entrepreneur defined</header><text>For purposes of this subparagraph, a young
entrepreneur is an individual who—</text>
<subclause id="HB81A2CD0E13944DF9CE3F7C523E0F2C2"><enum>(I)</enum><text>is 25 years of age
or younger; and</text>
</subclause><subclause id="HED069FA203DA471C825ADC1DD880D3CE"><enum>(II)</enum><text display-inline="yes-display-inline">has resided in the geographic area served
by the intermediary for not less than 2 years.</text>
</subclause></clause><clause id="HD71AD58EB621403388ABCE38FE7FB105"><enum>(iii)</enum><header>Good faith
effort requirement</header><text>If a young entrepreneur who receives technical
assistance under this subparagraph from an intermediary establishes or operates
a small business concern, the young entrepreneur shall make a good faith effort
to establish or operate such concern in the geographic area served by the
intermediary.</text>
</clause><clause id="H755145D01BE140508870F6EA12B3737A"><enum>(iv)</enum><header>Deferred
repayment</header><text>If a small business concern established or operated by
a young entrepreneur receives a loan under this subsection, such concern may
defer repayment on such loan for a period of not more than 6 months beginning
on the date that such concern receives the final disbursement of such
loan.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H77B6A72EAF0B40608C91D574A354F7C1"><enum>307.</enum><header>Interest rates
and loan size</header><text display-inline="no-display-inline">Section 7(m) of
the Small Business Act (15 U.S.C. 636(m)), as amended by this Act, is further
amended—</text>
<paragraph id="H3C170029BFBF41CF8C490A946998506D"><enum>(1)</enum><text>in paragraph
(3)(F)(iii) by striking <quote>$7,500</quote> and inserting
<quote>$10,000</quote>;</text>
</paragraph><paragraph id="H0F742FE7C4C048A0B3EE0F75FBAFDC81"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (6)(C)(i) by striking
<quote>$7,500</quote> and inserting <quote>$10,000</quote>; and</text>
</paragraph><paragraph id="H9D30399D45C34D2F84E9E7415608C3A5"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (6)(C)(ii) by striking
<quote>$7,500</quote> and inserting <quote>$10,000</quote>.</text>
</paragraph></section><section id="HBF87D85DC7B443D48B885150830B06FD"><enum>308.</enum><header>Reporting
requirement</header><text display-inline="no-display-inline">Section 7(m) of
the Small Business Act (15 U.S.C. 636(m)), as amended by this Act, is further
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H32E40B45D4B4486A8AADF6093ECCE589" style="OLC">
<paragraph id="HEDAC2A4A991644F3A175F91A115C905B"><enum>(15)</enum><header>Reporting
requirement</header><text display-inline="yes-display-inline">Not later than 90
days after the end of each fiscal year, the Administrator shall submit to the
Committee on Small Business of the House of Representatives and the Committee
on Small Business and Entrepreneurship of the Senate a report that includes,
with respect to such fiscal year of the microloan program, the
following:</text>
<subparagraph id="HF4C54D45E3004E61A329AF0D8F7777E9"><enum>(A)</enum><text>The names and
locations of each intermediary that received funds to make microloans or
provide marketing, management, and technical assistance.</text>
</subparagraph><subparagraph id="HE6C04435DF0A44A4866ED6097496B4CA"><enum>(B)</enum><text>The amounts of
each loan and each grant provided to each such intermediary in such fiscal year
and in prior fiscal years.</text>
</subparagraph><subparagraph id="HD5A1967A155440FFAE2095A212FAC228"><enum>(C)</enum><text>A description of
the contributions from non-Federal sources of each such intermediary.</text>
</subparagraph><subparagraph id="H5FAA6AC750004CE1930E91E748F062A4"><enum>(D)</enum><text>The number and
amounts of microloans made by each such intermediary to all borrowers and to
each of the following:</text>
<clause id="HF07ACA9E657B4AA0971C2985F4FB18AD"><enum>(i)</enum><text display-inline="yes-display-inline">Women entrepreneurs and business
owners.</text>
</clause><clause id="H862E1A86BB0A406496AC63D0F75D48D7"><enum>(ii)</enum><text display-inline="yes-display-inline">Low-income entrepreneurs and business
owners.</text>
</clause><clause id="HE6526A36436D44FFADE46AFDE25C5DC2"><enum>(iii)</enum><text display-inline="yes-display-inline">Veteran entrepreneurs and business
owners.</text>
</clause><clause id="H1E13D29AD29C4F69B4AD699E9E4A33A3"><enum>(iv)</enum><text display-inline="yes-display-inline">Disabled entrepreneurs and business
owners.</text>
</clause><clause id="HDBFA0BBD28AF447C84078C91252AFA76"><enum>(v)</enum><text display-inline="yes-display-inline">Minority entrepreneurs and business
owners.</text>
</clause></subparagraph><subparagraph id="H69FA58C8AEA34932934A58745D2B1EBB"><enum>(E)</enum><text>A description of
the marketing, management, and technical assistance provided by each such
intermediary to all borrowers and to each of the following:</text>
<clause id="HC0C2F97488474BEEB93F56547CC7515E"><enum>(i)</enum><text display-inline="yes-display-inline">Women entrepreneurs and business
owners.</text>
</clause><clause id="H7CBAD53E2FDD4D7ABF758CB67DBBA9F5"><enum>(ii)</enum><text display-inline="yes-display-inline">Low-income entrepreneurs and business
owners.</text>
</clause><clause id="H3CAB1FF9282541A8913CF493F205E6DB"><enum>(iii)</enum><text display-inline="yes-display-inline">Veteran entrepreneurs and business
owners.</text>
</clause><clause id="H1A769387034C4262B921CCAAC9DE5CF9"><enum>(iv)</enum><text display-inline="yes-display-inline">Disabled entrepreneurs and business
owners.</text>
</clause><clause id="HD68C7CC1BE4C4010A5517E0F5051A9C0"><enum>(v)</enum><text display-inline="yes-display-inline">Minority entrepreneurs and business
owners.</text>
</clause></subparagraph><subparagraph id="HC630AA3152A547019B81DD83C4894B79"><enum>(F)</enum><text>The number of jobs
created and retained as a result of microloans and marketing, management, and
technical assistance provided by each such intermediary.</text>
</subparagraph><subparagraph id="HB68DEA42A19941DAA354B6220A0026CE"><enum>(G)</enum><text>The repayment
history of each such intermediary.</text>
</subparagraph><subparagraph id="H9FE25BC1F7264729AD99FE183E53CA10"><enum>(H)</enum><text>The number of
businesses that achieved success after receipt of a
microloan.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA3C56676AB2D48A496E5C5E8FB88EE3E"><enum>309.</enum><header>Surplus
interest rate subsidy for businesses</header><text display-inline="no-display-inline">Section 7(m) of the Small Business Act (15
U.S.C. 636(m)), as amended by this Act, is further amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H31CA4FD7E8564917B800BB16471EB6F1" style="OLC">
<paragraph id="H36B4E57906A44A2682306D63BD77260B"><enum>(16)</enum><header>Interest
assistance</header><text display-inline="yes-display-inline">The Administrator
is authorized to make grants to intermediaries for the purposes of reducing
interest rates charged to borrowers that receive financing under this
subsection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H69552D75EA7E4B4784B9587D28282FE1"><enum>310.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">Section 20
of the Small Business Act (15 U.S.C. 631 note), as amended by this Act, is
further amended by inserting after subsection (g) the following:</text>
<quoted-block display-inline="no-display-inline" id="H8BBEC192F81D4BD4BC4EA251B059AB5D" style="OLC">
<subsection id="H4999559A34974E84916D31385599EE31"><enum>(h)</enum><header>Fiscal years
2010 and 2011 with respect to section
7<enum-in-header>(m)</enum-in-header></header>
<paragraph id="HD8263F0BA5D74CC1BA9CFA727E72D9C3"><enum>(1)</enum><header>Program
levels</header><text>For the programs authorized by this Act, the
Administration is authorized to make during each of fiscal years 2010 and
2011—</text>
<subparagraph id="H2E283B81684740C5AE09479344061615"><enum>(A)</enum><text display-inline="yes-display-inline">$80,000,000 in technical assistance grants,
as provided in section 7(m); and</text>
</subparagraph><subparagraph id="H055CF59FA13B4A1B996C3A05F00BEBBE"><enum>(B)</enum><text>$110,000,000 in
direct loans, as provided in section 7(m).</text>
</subparagraph><subparagraph id="HE99F811684A74EB4BD242E69E1BD015C"><enum>(C)</enum><text>$10,000,000 in
interest assistance grants, as provided in section 7(m)(16).</text>
</subparagraph></paragraph><paragraph id="H66ECD37FDFCC4143AD81B7F537948589"><enum>(2)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated such sums
as may be necessary to carry out paragraph
(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>IV</enum><header>Small business
investment company modernization</header>
<section id="HA85FD96469A341F69031AEB797BA4138" section-type="subsequent-section"><enum>401.</enum><header>Increased investment
from States</header><text display-inline="no-display-inline">Section 103(13)(C)
of the Small Business Investment Act of 1958 (15 U.S.C. 662(13)(C)) is amended
by striking <quote>33 percent</quote> and inserting <quote>45
percent</quote>.</text>
</section><section id="HD18F9D2320274A07A784FA0191796EC4"><enum>402.</enum><header>Expedited
licensing for experienced applicants</header><text display-inline="no-display-inline">Section 301 of the Small Business Investment
Act of 1958 (15 U.S.C. 681) is amended by inserting after subsection (c) the
following:</text>
<quoted-block display-inline="no-display-inline" id="HD98545F2A9B84E6E8C3D8F496CDDD516" style="OLC">
<subsection id="HE34AB7067FFD4358A2A8259000198DC1"><enum>(d)</enum><header>Licenses for
experienced applicants</header>
<paragraph id="HFCACB37ED56D41818EC8B3A56585BE90"><enum>(1)</enum><header>In
general</header><text>Notwithstanding any other provision of this section, not
later than 60 days after the initial receipt by the Administrator of any
request (which shall be deemed to be the application) for a license to operate
as a small business investment company under this Act, the Administrator shall
approve the request and issue such license if each of the following
requirements is satisfied:</text>
<subparagraph id="H72E0541D49B74B50A88F3AE4563EAC38"><enum>(A)</enum><text>At least 50
percent of the principal managers of the applicant consist of at least
two-thirds of the principal managers of a small business investment company
that has been licensed under this Act.</text>
</subparagraph><subparagraph id="HA932237AB889479B9132BC3019EE185B"><enum>(B)</enum><text>The licensed small
business investment company specified under subparagraph (A) has operated under
such license for at least 3 years prior to the receipt of the request specified
in this paragraph.</text>
</subparagraph><subparagraph id="HD0CA7D6F127C48E8A350CFF90956EC73"><enum>(C)</enum><text>The licensed small
business investment company specified under subparagraph (A)—</text>
<clause id="H073A9B63B0B045C18A8CB3DE0C04BFC1"><enum>(i)</enum><text>either has
invested at least 70 percent of its private capital and drawn at least 50
percent of its projected leverage at the time of the receipt of the request
specified in this paragraph or reserved for investment and expenses or some
combination of both at least 70 percent of its private capital in the one-year
period prior to the date on which the application referred to in this paragraph
was received by the Administrator;</text>
</clause><clause id="HC9DFE5DA4C724CF19E8D82C8B23A7C56"><enum>(ii)</enum><text>has maintained 6
consecutive quarters of profitable net investment income; and</text>
</clause><clause id="H1AF307361675466A9555E80BBA75F298"><enum>(iii)</enum><text>has made at
least 3 exits from investments in small businesses that have realized profits
from those respective investments.</text>
</clause></subparagraph><subparagraph id="HB43EEF21CB394E3DBB0D4149FFCCED55"><enum>(D)</enum><text>The applicant
submits to the Administrator, in writing, an application consisting of all of
the following:</text>
<clause id="H0B5F4A9CD6744A428FF54B72B49A2B76"><enum>(i)</enum><text>A
certification, in the form prescribed by the Administrator, that such applicant
satisfies the requirements of this subsection and that all information
contained in the application is true and complete.</text>
</clause><clause id="H5883E2979E1540B5A78B34C1E0690E55"><enum>(ii)</enum><text>A
copy of the organizational documents of the applicant.</text>
</clause><clause id="HB0820936CBCD452CB8BE44FF6FC3FA1A"><enum>(iii)</enum><text>A copy of the
operating plan of the applicant demonstrating that at least 50 percent of the
amount of the planned investments of the applicant will be in the same or
substantially similar investment stage and use the same or substantially
similar type of investment instruments as the investments of the licensed small
business investment company specified under subparagraph (A).</text>
</clause><clause id="H0961A11AA81D4E6A8916B98CD6F0B4D6"><enum>(iv)</enum><text>A
certification, in a form prescribed by the Administrator, that the applicant
satisfies the requirements of subsections (a) and (c) of section 302 of this
Act.</text>
</clause></subparagraph><subparagraph id="H4F76762DD3BB41DCB4E5E435B1F43CCB"><enum>(E)</enum><text>The applicant is
in good standing as set forth in paragraph (2).</text>
</subparagraph><subparagraph id="H5233EB91076D42419CE2BA667DD26526"><enum>(F)</enum><text>The applicant pays
all fees prescribed by the Administrator under subsection (e).</text>
</subparagraph></paragraph><paragraph id="H269EC109E09E44BD899F1DDE81126A25"><enum>(2)</enum><header>Good
standing</header><text>For purposes of this subsection, an applicant is in good
standing if—</text>
<subparagraph id="H5D00ACEA687148A79D0A31A3117ABBBC"><enum>(A)</enum><text>a licensed
leveraged or non-leveraged small business investment company specified under
paragraph (1)(A) is actively operating under this Act on the date of the
initial receipt of the application by the Administrator to which this
subsection applies;</text>
</subparagraph><subparagraph id="HCA2487CF43784D3F940F158AA65D5DC2"><enum>(B)</enum><text>no principal
manager of the applicant has been found liable in a civil action for fraud if
the Administrator makes a reasonable determination based on evidence in the
agency record that such liability has a material adverse effect on the ability
of the applicant to perform obligations required by a license issued pursuant
to this Act; and</text>
</subparagraph><subparagraph id="H39B2751002AE410CB88FE08A9F8695B8"><enum>(C)</enum><text>no principal
manager is under investigation by a governmental agency or authority for, is
under indictment for, or has been convicted of a felony for a violation of
Federal or State securities laws, fraud, or another criminal violation if such
investigation, indictment, or conviction has a material adverse effect on the
ability of the applicant to perform obligations under a license issued under
this Act.</text>
</subparagraph></paragraph><paragraph id="H6361B5EF4050436B89BE2C35CBC05490"><enum>(3)</enum><header>Limitation</header>
<subparagraph id="HC06C75578D994E90B5536D4F7189A1F2"><enum>(A)</enum><header>In
general</header><text>The Administrator may remove an application from the
approval process under this subsection if the Administrator determines based on
evidence in the agency record that the approval of the license would present an
unacceptable risk to the Federal Government.</text>
</subparagraph><subparagraph id="H4435EEC90FB849D69E05388A819C04DE"><enum>(B)</enum><header>In
writing</header><text>Such determination shall be made in writing and provided
to the applicant no later than 10 calendar days after such determination is
made. Failure to provide this determination to the applicant shall be deemed to
be a permanent waiver of the Administrator’s authority to remove an application
pursuant to this subsection.</text>
</subparagraph><subparagraph id="H13569290F2554D7C94D5FB2143E96460"><enum>(C)</enum><header>Non-delegability</header><text>The
Administrator may rely on agency personnel to collect data or other material
relevant to establishing a record, but the decision to remove the application
may not be delegated by the Administrator to any subordinate personnel in the
agency.</text>
</subparagraph></paragraph><paragraph id="H0402917F879E4BDD9A1C4F5A9FD739D0"><enum>(4)</enum><header>Notice and
opportunity to cure non-conformance</header>
<subparagraph id="HE5F1C941999843BCA11D6283E2B4D9A9"><enum>(A)</enum><header>Notice of
non-conformance</header><text>Except for a determination made pursuant to
paragraph (3), the Administrator shall provide an applicant described in
paragraph (1) within 60 days after receipt of the application a written notice
and description of any nonconformance with any requirement of this subsection
based on evidence in the agency record.</text>
</subparagraph><subparagraph id="HE58E1E79AE6E447CABE6DB6075301F1C"><enum>(B)</enum><header>Opportunity to
cure</header><text>The applicant shall have 30 days following the receipt of
notice of nonconformance or the receipt of removal as set forth in paragraph
(3) to cure such nonconformance.</text>
</subparagraph><subparagraph id="HC605F1573A604D24ADFAAFA8EE3F47DC"><enum>(C)</enum><header>Failure to
provide notice</header><text>Failure to provide the notice within the time
limit set forth in subparagraph (A) shall be deemed to be acceptance by the
Administrator of the applicant’s conformance with the requirements of this
subsection.</text>
</subparagraph></paragraph><paragraph id="H9D3911B9C52E4FE695B183FD544C2D56"><enum>(5)</enum><header>Background
reviews</header><text>The Administrator shall ensure that a timely background
check of the principal managers of each applicant is completed with respect to
paragraphs (2)(B) and (2)(C).</text>
</paragraph><paragraph id="HAF9BF48E25FB4174BE8013D5C81F4B04"><enum>(6)</enum><header>Fees</header><text>The
Administrator may charge an applicant additional fees for carrying out the
background reviews mandated by paragraph (5). Such fees shall not exceed
$10,000.</text>
</paragraph><paragraph id="H3A8FB45B0DF541BDA15723B331A1B72A"><enum>(7)</enum><header>Effect of
non-qualification</header><text>The failure of an applicant to qualify for
expedited licensure under this subsection shall have no effect on an existing
license or the ability for the applicant or any of its individual managers to
apply for or receive a license to operate a small business investment company
under the procedures established elsewhere in this Act or its implementing
regulations.</text>
</paragraph><paragraph id="HDC4C81B6601D4A34B1F16FE3BA215449"><enum>(8)</enum><header>Regulations</header><text>The
Administrator shall develop forms and promulgate regulations to implement this
subsection after providing an opportunity for notice and comment. Regulations
promulgated pursuant to this paragraph shall be published in the Code of
Federal
Regulations.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB81880EAF13440759D63831F2C923470"><enum>403.</enum><header>Revised
leverage limitations for successful SBICs</header>
<subsection id="H77B5E3F7EABA4C58BADB53311F2D8388"><enum>(a)</enum><header>Maximum
leverage</header><text>Section 303(b)(2) of the Small Business Investment Act
of 1958 (15 U.S.C. 683(b)(2)) is amended by striking so much of paragraph (2)
as precedes subparagraph (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HE3746EF32968457B952D903402F5F3CF" style="OLC">
<paragraph id="HC709845578954CD3AA298865873F0F2C"><enum>(2)</enum><header>Maximum
leverage</header>
<subparagraph id="H477B8D4C30534109AEC0CCAF62F5DB7D"><enum>(A)</enum><header>In
general</header><clause commented="no" display-inline="yes-display-inline" id="HD1EF142E754A4901AE86B6693F01D6C2"><enum>(i)</enum><text display-inline="yes-display-inline">The maximum amount of outstanding leverage
made available to any one company licensed under section 301(c) of this Act may
not exceed the lesser of—</text>
<subclause id="HDC86EB1C46BF4043BC3092BA928E7163"><enum>(I)</enum><text>300 percent of
such company’s private capital; or</text>
</subclause><subclause id="H0DC7517345204FF582B325FBAB30C78C"><enum>(II)</enum><text>$150,000,000.</text>
</subclause></clause><clause id="H2A38888A697B4E0CB6870836D5D4DCB2" indent="up1"><enum>(ii)</enum><text>In applying clause (i)(I) in the
case of a debenture licensee which is in good standing without the imposition
of additional regulatory standards and whose financings at cost are comprised
of at least 50 percent of loans and debt securities, such licensee may be
leveraged as follows:</text>
<subclause id="H7F304B60714D42D5BF78B07D8D30D927"><enum>(I)</enum><text>The first one-third of private capital to
300 percent.</text>
</subclause><subclause id="H8856059AA8704C3EB49529307B3C68CC"><enum>(II)</enum><text>The second one-third of private capital
to 200 percent.</text>
</subclause><subclause id="H170E8485DB124E4D841A7BC94AB69DBE"><enum>(III)</enum><text>The last third of private capital to
100 percent.</text>
</subclause></clause><clause id="H2B82C911CFE240DEB33460C4A7760703" indent="up1"><enum>(iii)</enum><text>Notwithstanding clause (i), in
the case of any company operating as a business development company (as such
term is defined under section 2(a)(48) of the Investment Company Act of 1940)
or a majority-owned subsidiary of such a company that is in good standing
without the imposition of additional regulatory requirements, the maximum
amount of outstanding leverage made available to such company shall be
$250,000,000.</text>
</clause></subparagraph><subparagraph id="H5BC22A0F9CE54AD3B314FEA3BF491337"><enum>(B)</enum><header>Multiple
licensees under common control</header><text>The maximum amount of outstanding
leverage made available to two or more debenture companies licensed under
section 301(c) of this Act that are commonly controlled (as determined by the
Administrator) and not under capital impairment may not exceed
$350,000,000.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5F535D49F61341B8B1B4613F234E1377"><enum>(b)</enum><header>Regulations</header><text>Section
303(b)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 683(b)(2)),
as amended by this Act, is further amended by adding at the end the
following:</text>
<quoted-block id="H49989FCC74864F72ACDE23C96C7E1E1A" style="OLC">
<subparagraph id="HD9CA02313DF44FA6B17413F7169C28CD"><enum>(E)</enum><header>Regulations</header><text>The
Administrator shall promulgate regulations, after notice and opportunity for
comment, establishing quantifiable objective criteria under which a licensee’s
private capital in its entirety may be leveraged up to 300 percent. Such
regulations shall be published in the Code of Federal
Regulations.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7B3D8476BF3D46C29EF2A7247AC73075"><enum>(c)</enum><header>Investments in
low-Income geographic areas</header><text>Section 303(b)(2)(C)(ii) of the Small
Business Investment Act of 1958 (15 U.S.C. 683(b)(2)(C)(ii)) is amended by
striking <quote>$250,000,000</quote> in subclause (II) and inserting
<quote>$400,000,000</quote>.</text>
</subsection></section><section id="H2B9DD14FED4340098CA11A97CAC816DC"><enum>404.</enum><header>Consistency for
cost control</header><text display-inline="no-display-inline">Section 305(c) of
the Small Business Investment Act of 1958 (15 U.S.C. 685(c)) is amended by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H447545AC46DB445B9B1BB09F64DC33EA" style="OLC">
<subsection id="HB861520C9AAE461FAECD5AD2CEEDA01C"><enum></enum><text display-inline="yes-display-inline">In addition to the foregoing, with respect
to a loan made, or debt with equity features acquired, under this section, the
minimum coupon rate of interest (cost of money ceiling) imposed by the
Administrator shall not be less than 19 percent per annum for a loan or a debt
security, except that nothing herein shall alter or affect provisions
permitting higher coupon rates of interest (cost of money ceilings) and a
company may charge up to an additional 7 percent more than the interest rate
set forth in the loan or debt security in the event of a default. For purposes
of this subsection a default means the occurrence of any of the
following:</text>
<paragraph id="H685595B38E7542969591CFA963091531"><enum>(1)</enum><text>Failure to pay an
amount when due.</text>
</paragraph><paragraph id="H86ABA3DFE7E7456B9B2A9A27EE4696A8"><enum>(2)</enum><text>Failure to provide
in a timely manner material information required under the applicable financing
documents.</text>
</paragraph><paragraph id="H0F32215093B74405977A0E46233568AD"><enum>(3)</enum><text>Failure to observe
any material term, covenant, or other agreement contained in the applicable
financing documents.</text>
</paragraph><paragraph id="H9BBDEC0051454F78A93EEDF0CF6306E1"><enum>(4)</enum><text>A representation,
warranty, certification, or statement of fact made by or on behalf of a
borrower in any applicable financing document or in any document delivered in
connection therewith, that was materially incorrect or misleading when
made.</text>
</paragraph><paragraph id="H00091354AF9A479DA4E3A2308965D9F2"><enum>(5)</enum><text>Any material event
of default specified in the applicable financing
documents.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H2775EC22FA31405DA7AFA5B642B674E2"><enum>405.</enum><header>Investment in
veteran-owned small businesses</header><text display-inline="no-display-inline">Section 303(b)(2)(C) of the Small Business
Investment Act of 1958 (15 U.S.C. 683(b)(2)(C)) is amended as follows:</text>
<paragraph id="H541A5C0E02124D63ACD7F38B0F8E5A27"><enum>(1)</enum><text>In the heading, by
inserting after <quote><header-in-text level="subparagraph" style="OLC">areas</header-in-text></quote> the following:
<quote><header-in-text level="subparagraph" style="OLC">and
veterans</header-in-text></quote>.</text>
</paragraph><paragraph id="H396CA97C8EED4BA4A1AC43E4C14EAD45"><enum>(2)</enum><text>In clause (i), by
inserting after <quote>351)</quote> the following: <quote>or in a small
business concern owned and controlled by veterans (as such term is defined in
section 3(q)(3) of the Small Business Act)</quote>.</text>
</paragraph><paragraph id="H5FD9BC4E32FB4649A80158F55FF2D3F9"><enum>(3)</enum><text>In clause (iii),
by inserting after <quote>351)</quote> the following: <quote>or in small
business concerns owned and controlled by veterans (as such term is defined in
section 3(q)(3) of the Small Business Act)</quote>.</text>
</paragraph></section><section id="H18EF85C06FC540A6B1986B974EFA3594"><enum>406.</enum><header>Tangible net
worth</header><text display-inline="no-display-inline">Section 103 of the Small
Business Investment Act of 1958 (15 U.S.C. 662), as amended by this Act, is
further amended by striking <quote>and</quote> at the end of paragraph (23), by
striking the period at the end of paragraph (24) and inserting <quote>;
and</quote>, and by adding at the end the following:</text>
<quoted-block id="H395E888B9C8946D1AA5B35777236FFF2" style="OLC">
<paragraph id="H3B3E5D93912643479A13C4FA3B8F3B3E"><enum>(25)</enum><text>for purposes of
the terms <term>small-business concern</term> in paragraph (5) and
<quote>smaller enterprise</quote> in paragraph (12), tangible net worth shall,
to the extent used, mean the total net worth of the small business, in
accordance with General Accepted Accounting Principles, minus all intangibles
in accordance with General Accepted Accounting
Principles.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H5E63775F72544ABE99D363C49C3FDA77"><enum>407.</enum><header>Development of
agency record</header><text display-inline="no-display-inline">Part A of title
III of the Small Business Investment Act of 1958 (15 U.S.C. 681 et seq.), as
amended by this Act, is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H8AEB383F83DA4D0890B21B38DF9F4B37" style="OLC">
<section id="H23220098DEE542D1AA77B556EE199DCD"><enum>321.</enum><header>Agency record
for licensing of small business investment companies</header>
<subsection id="H885A5498061C41ED88247F7D39F6C124"><enum>(a)</enum><header>Record</header><text>The
Associate Administrator for Investment shall establish an agency record of
evidence referring or relating to each application for a license to become a
small business investment company.</text>
</subsection><subsection id="H5C3FC2F635C34DDA90C0EE6457642E44"><enum>(b)</enum><header>Written
notification</header><text>The Administrator shall provide a written
explanation of any denial of a license application based upon evidence in the
agency record. Absent an order by a Federal or State court of general
jurisdiction, access to applications and the agency record shall be limited to
the applicant and to the Administrator and subordinate personnel of the
Administrator.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9352FDFAF38447488F0070754DD5B985"><enum>408.</enum><header>Program
levels</header><text display-inline="no-display-inline">Section 20 of the Small
Business Act (15 U.S.C. 631 note), as amended by this Act, is further amended
by inserting after subsection (h) the following:</text>
<quoted-block display-inline="no-display-inline" id="HADDDBC9DF15A40EABE799A8A7105944C" style="OLC">
<subsection id="H7D3ED3A18BF741D4BBF885FC79940707"><enum>(i)</enum><header>Part A of title
III of the Small Business Investment Act of 1958</header>
<paragraph id="HFCA596FD9F404FCB8EC06A1F41E2D4D0"><enum>(1)</enum><header>Program levels
2010</header><text>For fiscal year 2010, in carrying out the program authorized
by part A of title III of the Small Business Investment Act of 1958, the
Administrator is authorized to make $5,000,000,000 in guarantees of
debentures.</text>
</paragraph><paragraph id="H0A3948AE1352428AA2DD1034AB82C358"><enum>(2)</enum><header>Program levels
2011</header><text>For fiscal year 2011, in carrying out the program authorized
by part A of title III of the Small Business Investment Act of 1958, the
Administrator is authorized to make $5,5000,000,000 in guarantees of
debentures.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>V</enum><header>Investment in
small manufacturers and renewable energy small businesses</header>
<subtitle id="HF4AF81CADD5E46FD9BD121A6331896DD"><enum>A</enum><header>Enhanced New
Markets Venture Capital Program</header>
<section id="H5AC15C39C405405CA4A67090FF39C3F2"><enum>501.</enum><header>Expansion of
New Markets Venture Capital Program</header>
<subsection id="H1E2A537EEFF4466C8437CEB5918C892E"><enum>(a)</enum><header>Administration
participation required</header><text display-inline="yes-display-inline">Section 353 of the Small Business
Investment Act of 1958 (15 U.S.C. 689b) is amended by striking <quote>under
which the Administrator may</quote> and inserting <quote>under which the
Administrator shall</quote>.</text>
</subsection><subsection id="H93693B712F79452E911572EF41879177"><enum>(b)</enum><header>Report to
Congress</header><text>Not later than 1 year after the date of the enactment of
this Act, the Administrator of the Small Business Administration shall submit
to Congress a report describing any expansion of the New Markets Venture
Capital Program as a result of this section.</text>
</subsection></section><section id="HD522A6C8A4664701A4C7520D7924FE71"><enum>502.</enum><header>Improved
nationwide distribution</header><text display-inline="no-display-inline">Section 354 of the Small Business Investment
Act of 1958 (15 U.S.C. 689c) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H785465F1625C4064AFE342112E63CF41" style="OLC">
<subsection id="HC2768865D44448E084DF7CF276759C7A"><enum>(f)</enum><header>Geographic
expansion</header><text>From among companies submitting applications under
subsection (b), the Administrator shall consider the selection criteria and
promotion of nationwide distribution under subsection (c) and shall, to the
extent practicable, approve at least one company from each geographic region of
the Small Business
Administration.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H94864469D373489A8E5C1D55D14A82CB"><enum>503.</enum><header>Increased
investment in small business concerns engaged primarily in
manufacturing</header>
<subsection id="HB90748F712DD49B69F9586107CA337CA"><enum>(a)</enum><header>Developmental
venture capital and participation agreements</header><text display-inline="yes-display-inline">Section 351 of the Small Business
Investment Act of 1958 (15 U.S.C. 689) is amended—</text>
<paragraph id="H0067A4AD0C2949EAA657676C6F46EC2F"><enum>(1)</enum><text>in paragraph (1)
by inserting after <quote>geographic areas</quote> the following: <quote>or
encouraging the growth or continuation of small business concerns located in
low-income geographic areas and engaged primarily in manufacturing</quote>;
and</text>
</paragraph><paragraph id="HD162543D142945269CC528BBB69C6B9B"><enum>(2)</enum><text>in paragraph
(6)(B) by inserting after <quote>geographic areas</quote> the following:
<quote>or in small business concerns located in low-income geographic areas at
least 80 percent of which are engaged primarily in
manufacturing</quote>.</text>
</paragraph></subsection><subsection id="H01BEC244F658432A8B4C990C03BC8477"><enum>(b)</enum><header>Purposes</header><text display-inline="yes-display-inline">Section 352(2) of the Small Business
Investment Act of 1958 (15 U.S.C. 689a(2)) is amended—</text>
<paragraph id="H3FDEFF09B15C4F8BB4F00B647881D3FB"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A) by
inserting after <quote>geographic areas</quote> the following: <quote>and small
business concerns located in low-income geographic areas and engaged primarily
in manufacturing</quote>;</text>
</paragraph><paragraph id="H45C7ECD3BC4948E180FF0E64F21A0965"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (B) by inserting after
<quote>geographic areas</quote> the following: <quote>or in small business
concerns located in low-income geographic areas and engaged primarily in
manufacturing</quote>; and</text>
</paragraph><paragraph id="HA55671437863411D926ECA9002EAD214"><enum>(3)</enum><text>in subparagraph
(C) by inserting after <quote>smaller enterprises</quote> the following:
<quote>and small business concerns</quote>.</text>
</paragraph></subsection><subsection id="H309DD060B59B455A8BDBC19FA619F726"><enum>(c)</enum><header>Eligibility,
applications, and requirements for final approval</header><text display-inline="yes-display-inline">Section 354 of the Small Business
Investment Act of 1958 (15 U.S.C. 689c), as amended by this Act, is further
amended—</text>
<paragraph id="HCBE0A0BAD8654DD7977B9EA3FF2F836F"><enum>(1)</enum><text>in subsection
(a)(3) by inserting after <quote>geographic areas</quote> the following:
<quote>or investing in small business concerns located in low-income geographic
areas and engaged primarily in manufacturing</quote>;</text>
</paragraph><paragraph id="HB2B28CAE273A484892FC553D578D1A6B"><enum>(2)</enum><text>in subsection
(b)—</text>
<subparagraph id="H7C792D20CA3C4927A4F7E2095E276EA3"><enum>(A)</enum><text>in paragraph (1)
by inserting after <quote>geographic areas</quote> the following: <quote>or in
small business concerns located in low-income geographic areas and engaged
primarily in manufacturing</quote>; and</text>
</subparagraph><subparagraph id="H03C7D2C5938A4B66A2CD3E6AF2543373"><enum>(B)</enum><text>in paragraph (4)
by inserting after <quote>smaller enterprises</quote> the following: <quote>or
small business concerns</quote>; and</text>
</subparagraph></paragraph><paragraph id="H179B2E781DB34D03AD3FB5B389F173D4"><enum>(3)</enum><text>in subsection
(d)—</text>
<subparagraph id="H7C08169B33A74D8ABD0F6CF3478277D6"><enum>(A)</enum><text>in paragraph
(1)—</text>
<clause id="HC20D114D39D34EE192D424AE2112D466"><enum>(i)</enum><text>by
striking <quote>Each</quote> and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H94BCA44C655B4D0F98924B6FD7520ECC" style="OLC">
<subparagraph id="HBC809878FD794E38AE0D04D158F7F332"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B),
each</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause id="HE4295165FDC341789E233EA059A90BE7"><enum>(ii)</enum><text>by
adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H8E5D4773C15441E0A1E37E0710510B8B" style="OLC">
<subparagraph id="HD91C213C2C5C424A8AB97E1D3170503C"><enum>(B)</enum><header>Small business
concerns engaged primarily in manufacturing</header><text display-inline="yes-display-inline">Each conditionally approved company engaged
primarily in development of and investment in small business concerns located
in low-income geographic areas and engaged primarily in manufacturing shall
raise not less than $3,000,000 of private capital or binding capital
commitments from one or more investors (other than agencies or departments of
the Federal Government) who met criteria established by the
Administrator.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="H3863AC345B6D4599B1CC964670A5913E"><enum>(B)</enum><text>in paragraph
(2)(A) by inserting after <quote>smaller enterprises</quote> the following:
<quote>or small business concerns</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HC392325B538747BE953C99DD7DA6C2C0"><enum>(d)</enum><header>Operational
assistance grants</header><text display-inline="yes-display-inline">Section 358
of the Small Business Investment Act of 1958 (15 U.S.C. 689g) is
amended—</text>
<paragraph id="H6B7F60BE29C84DD486B29EC64BE49CBE"><enum>(1)</enum><text>in subsection
(a)(1) by inserting after <quote>smaller enterprises</quote> the following:
<quote>and small business concerns</quote>; and</text>
</paragraph><paragraph id="H97E1EB51ADD24C93804B8A4730B25BBB"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (b)(1) by inserting after
<quote>smaller enterprises</quote> the following: <quote>and small business
concerns</quote>.</text>
</paragraph></subsection></section><section id="H8114802399F34C89B511AFAEFCFFD768"><enum>504.</enum><header>Expanded uses
for operational assistance in manufacturing</header><text display-inline="no-display-inline">Section 351 of the Small Business Investment
Act of 1958 (15 U.S.C. 689), as amended by this Act, is further amended in
paragraph (5) by inserting after <quote>business development</quote> the
following: <quote>or assistance that assists a small business concern located
in a low-income geographic area and engaged primarily in manufacturing with
retooling, updating, or replacing machinery or equipment</quote>.</text>
</section><section id="H8106ED9980CF4108BF31154A3B5D90AA"><enum>505.</enum><header>Updating
definition of low-income geographic area</header><text display-inline="no-display-inline">Section 351 of the Small Business Investment
Act of 1958 (15 U.S.C. 689), as amended by this Act, is further amended—</text>
<paragraph id="HA650915AD14147688F4DBD2DC676969B"><enum>(1)</enum><text>by striking
paragraphs (2) and (3);</text>
</paragraph><paragraph id="HF109967A960143128AB795E535335C7D"><enum>(2)</enum><text>by inserting after
paragraph (1) the following:</text>
<quoted-block display-inline="no-display-inline" id="HC9B63500DB994F2C8DEC65D2CC8AADAA" style="OLC">
<paragraph id="HAF20A4F633694C57887151E49A6DD825"><enum>(2)</enum><header>Low-income
geographic area</header><text display-inline="yes-display-inline">The term
<term>low-income geographic area</term> has the meaning given the term
<term>low-income community</term> in section 45D(e) of the Internal Revenue
Code of 1986, except that, without regard to such meaning, such term includes
an area that the Administrator determines to be an area with high
unemployment.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H692710F107FD417180C2CBB12CE3B111"><enum>(3)</enum><text>by redesignating
paragraphs (4) through (8) as paragraphs (3) through (7), respectively.</text>
</paragraph></section><section id="H128A3C4C97C748CDAE2E944F6E7D7169"><enum>506.</enum><header>Expanding
operational assistance to conditionally approved companies</header><text display-inline="no-display-inline">Section 358(a) of the Small Business
Investment Act of 1958 (15 U.S.C. 689g(a)) is amended by adding at the end the
following:</text>
<quoted-block id="HA34D02B9C9F1477B987E3D6B4A008C6B" style="OLC">
<paragraph id="HBD5048C5BDF2417F8F19AE46757BEAA3"><enum>(6)</enum><header>Grants to
conditionally approved companies</header>
<subparagraph id="HDCED7561D98E46E6936ACDB3F247F167"><enum>(A)</enum><header>In
general</header><text>Subject to the provisions of this paragraph, upon the
request of a company conditionally approved under section 354(c), the
Administrator shall make a grant to the company under this subsection.</text>
</subparagraph><subparagraph id="HC1B36A2BD5C443D0B0A485201711694D"><enum>(B)</enum><header>Repayment by
companies not approved</header><text>If a company receives a grant under this
paragraph and does not receive final approval under section 354(e), the company
shall repay the amount of the grant to the Administrator.</text>
</subparagraph><subparagraph id="HED0F2C68433D48889A5CBB20C056A528"><enum>(C)</enum><header>Deduction from
grant to approved company</header><text>If a company receives a grant under
this paragraph and receives final approval under section 354(e), the
Administrator shall deduct the amount of such grant from the amount of any
immediately succeeding grant the company receives for operational
assistance.</text>
</subparagraph><subparagraph id="H2CD519B863164D46977E90A11D1A6847"><enum>(D)</enum><header>Amount of
grant</header><text>No company may receive a grant of more than $50,000 under
this
paragraph.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H473869B49E144E3DA0934D6D0EC80319"><enum>507.</enum><header>Limitation on
time for final approval</header><text display-inline="no-display-inline">Section 354(d) of the Small Business
Investment Act of 1958 (15 U.S.C. 689c(d)) is amended in the matter preceding
paragraph (1) by striking <quote>a period of time, not to exceed 2
years,</quote> and inserting <quote>2 years</quote>.</text>
</section><section id="H0A8B6BC4659A4ABF9FF3D45BEA4F13B0"><enum>508.</enum><header>Streamlined
application for New Markets Venture Capital Program</header><text display-inline="no-display-inline">Not later than 60 days after the date of the
enactment of this Act, the Administrator of the Small Business Administration
shall prescribe standard documents for a New Markets Venture Capital company
final approval application under section 354(e) of the Small Business
Investment Act of 1958 (15 U.S.C. 689c(e)). The Administrator shall ensure that
the standard documents are designed to substantially reduce the cost burden of
the application process for companies.</text>
</section><section id="HB2D2792359554B0ABED8770AD9378482"><enum>509.</enum><header>Elimination of
matching requirement</header><text display-inline="no-display-inline">Section
354(d)(2)(A)(i) of the Small Business Investment Act of 1958 (15 U.S.C.
689c(d)(2)(A)(i)) is amended—</text>
<paragraph id="HC62037D09D3D4FB29A3B1386B5A39466"><enum>(1)</enum><text>in subclause (I)
by adding <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HB65988B535394B1996D2ECB56C5C12BD"><enum>(2)</enum><text>in subclause (II)
by striking <quote>and</quote> at the end; and</text>
</paragraph><paragraph id="H3EA56E2094D143BE873CBFA7461D7106"><enum>(3)</enum><text>by striking
subclause (III).</text>
</paragraph></section><section id="H22953CDDA4874AAC883648F44058FA3D"><enum>510.</enum><header>Simplified
formula for operational assistance grants</header><text display-inline="no-display-inline">Section 358(a)(4)(A) of the Small Business
Investment Act of 1958 (15 U.S.C. 689g(a)(4)(A)) is amended—</text>
<paragraph id="HE661CF2C3032435B946A165F43532685"><enum>(1)</enum><text>by striking
<quote>shall be equal to</quote> and all that follows through the period at the
end and inserting <quote>shall be equal to the lesser of—</quote>; and</text>
</paragraph><paragraph id="H943ED69E5C5F42ADB0039178BD85C1EC"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H6C95CAF407074B1EB540740406B01B14" style="OLC">
<clause id="H80C6F599EBF64515B7725F6D5D9AA24A"><enum>(i)</enum><text>10
percent of the resources (in cash or in-kind) raised by the company under
section 354(d)(2); or</text>
</clause><clause id="H624F1B4826C047C2A8343752BA45B715"><enum>(ii)</enum><text>$1,000,000.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section display-inline="no-display-inline" id="H2830B2999BF94A22A7F2803CB490A5BD" section-type="subsequent-section"><enum>511.</enum><header>Financing with
respect to veterans</header><text display-inline="no-display-inline">Section
354 of the Small Business Investment Act of 1958 (15 U.S.C. 689c), as amended
by this Act, is further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H3DAE078057ED4EF1B6955D1E24BEE586" style="OLC">
<subsection id="HD0F20E7BE86D4A38B416D5E5557E0F87"><enum>(g)</enum><header>Financing with
respect to veterans</header><text display-inline="yes-display-inline">A New
Markets Venture Capital company shall, to the extent practicable, provide
financing to small business concerns owned and controlled by veterans, as
defined in section 3(q) of the Small Business Act (15 U.S.C. 632(q)), located
in low-income geographic
areas.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H80C58A8F15BC4D3C837D3CCB0A417406"><enum>512.</enum><header>Authorization
of appropriations and enhanced allocation for small manufacturing</header><text display-inline="no-display-inline">Section 368(a) of the Small Business
Investment Act of 1958 (15 U.S.C. 689q(a)) is amended—</text>
<paragraph id="H24D941B781B246F8A68AF1FD18FE441B"><enum>(1)</enum><text>in the matter
preceding paragraph (1) by striking <quote>fiscal years 2001 through
2006</quote> and inserting <quote>fiscal years 2010 and 2011</quote>;</text>
</paragraph><paragraph id="H8F834B7EBBC74328A8872FF5AD77D2B0"><enum>(2)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HB791442385D24013A398852293EE7681"><enum>(A)</enum><text>by striking
<quote>$150,000,000</quote> and inserting <quote>$100,000,000</quote>;
and</text>
</subparagraph><subparagraph id="H01B67036C42347CF88091766DF25D963"><enum>(B)</enum><text>by inserting
before the period at the end the following: <quote>, of which not less than 50
percent shall be used to guarantee debentures of companies engaged primarily in
development of and investment in small business concerns located in low-income
geographic areas and engaged primarily in manufacturing</quote>; and</text>
</subparagraph></paragraph><paragraph id="H5C1BBFB8051747C2BF5C31268DE56D98"><enum>(3)</enum><text>in paragraph
(2)—</text>
<subparagraph commented="no" id="HCF290F86EC9E4D1FAE6E1B1FD5176CDB"><enum>(A)</enum><text>by striking
<quote>$30,000,000</quote> and inserting <quote>$20,000,000</quote>; and</text>
</subparagraph><subparagraph id="H723BD495092F474D943D3BEB81947E1D"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting before the period at the end
the following: <quote>, of which not less than 50 percent shall be used to make
grants to companies engaged primarily in development of and investment in small
business concerns located in low-income geographic areas and engaged primarily
in manufacturing</quote>.</text>
</subparagraph></paragraph></section></subtitle><subtitle id="HAA59798624FA435E91F64B91A2EA460D"><enum>B</enum><header>Expanded
investment in small business renewable energy</header>
<section id="H587B24A560B24046ACCB7BF4F5D4C3BD"><enum>521.</enum><header>Expanded
investment in renewable energy</header><text display-inline="no-display-inline">Part C of title III of the Small Business
Investment Act of 1958 (15 U.S.C. 690 et seq.) is amended—</text>
<paragraph id="HF359D7937C88414CB80B595E9C6C01EE"><enum>(1)</enum><text display-inline="yes-display-inline">in the heading by striking
<quote><header-in-text level="part" style="OLC">Renewable Fuel Capital
Investment</header-in-text></quote> and inserting <quote><header-in-text level="part" style="OLC">Renewable Energy Capital
Investment</header-in-text></quote>;</text>
</paragraph><paragraph id="HEA26F208104041B1AFFC380A5A033A03"><enum>(2)</enum><text display-inline="yes-display-inline">in the heading of paragraph (4) of section
381 by striking <quote><header-in-text level="paragraph" style="OLC">Renewable
Fuel Capital Investment</header-in-text></quote> and inserting
<quote><header-in-text level="paragraph" style="OLC">Renewable Energy Capital
Investment</header-in-text></quote>;</text>
</paragraph><paragraph id="H7F6266A933024AE1801534F71595D02A"><enum>(3)</enum><text display-inline="yes-display-inline">in the heading of section 384 by striking
<quote><header-in-text level="section" style="OLC">Renewable Fuel Capital
Investment</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">Renewable Energy Capital
Investment</header-in-text></quote>; and</text>
</paragraph><paragraph id="H5F0D22F190E54FCDA6CA5B2E7C6DD612"><enum>(4)</enum><text>by striking
<quote>Renewable Fuel Capital Investment</quote> each place it appears and
inserting <quote>Renewable Energy Capital Investment</quote>.</text>
</paragraph></section><section id="H14AB69435D384A80BADE3442DD22FE6B"><enum>522.</enum><header>Renewable
Energy Capital Investment Program made permanent</header><text display-inline="no-display-inline">Part C of title III of the Small Business
Investment Act of 1958 (15 U.S.C. 690 et seq.), as amended by this Act, is
further amended—</text>
<paragraph id="HE2FE66D103CB4CAB9636D5ADFF4F29BE"><enum>(1)</enum><text>in the heading by
striking <quote><header-in-text level="part" style="OLC">Pilot</header-in-text></quote>; and</text>
</paragraph><paragraph id="H77C989C6D3ED4090821301CC51032EFF"><enum>(2)</enum><text>by striking
section 398.</text>
</paragraph></section><section id="H58BDB261D3CB4C428EAC47C699643C73"><enum>523.</enum><header>Expanded
eligibility for small businesses</header><text display-inline="no-display-inline">Part C of title III of the Small Business
Investment Act of 1958 (15 U.S.C. 690 et seq.), as amended by this Act, is
further amended by striking <quote>smaller enterprises</quote> each place it
appears and inserting <quote>small business concerns</quote>.</text>
</section><section id="HF07508A62877410B8097CD99138EE13E"><enum>524.</enum><header>Expanded uses
for operational assistance in manufacturing and small businesses</header><text display-inline="no-display-inline">Section 381(1) of the Small Business
Investment Act of 1958 (15 U.S.C. 690(1)) is amended by inserting after
<quote>business development</quote> the following: <quote>, assistance that
assists a small business concern to reduce energy consumption, or assistance
that assists a small business concern engaged primarily in manufacturing with
retooling, updating, or replacing machinery or equipment</quote>.</text>
</section><section id="H43E64F4125DD40858CA102FF1B28E242"><enum>525.</enum><header>Expansion of
Renewable Energy Capital Investment Program</header>
<subsection id="HD0ADD24CBBAF4DBEADEFC9BB55EE2A32"><enum>(a)</enum><header>Administration
participation required</header><text display-inline="yes-display-inline">Section 383 of the Small Business
Investment Act of 1958 (15 U.S.C. 690b) is amended by striking <quote>under
which the Administrator may</quote> and inserting <quote>under which the
Administrator shall</quote>.</text>
</subsection><subsection id="H17ED0DE8C3514D4785C5F27C83A8EAC2"><enum>(b)</enum><header>Reports to
Congress</header><text display-inline="yes-display-inline">At quarterly
intervals after the date of the enactment of this Act, the Administrator of the
Small Business Administration shall submit to Congress a report describing the
Administrator’s progress towards the expansion of the Renewable Energy Capital
Investment Program as a result of amendments made by this title.</text>
</subsection><subsection id="H30F9DC30FB68408A81385C42E2D3655C"><enum>(c)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Administrator of the Small Business
Administration shall promulgate such regulations as are necessary to carry out
the Renewable Energy Capital Investment Program established pursuant to this
title within 180 days after the enactment of this Act.</text>
</subsection></section><section id="HE408C9987A054109819B18587B3D4295"><enum>526.</enum><header>Simplified fee
structure to expedite implementation</header><text display-inline="no-display-inline">Section 387(a) of the Small Business
Investment Act of 1958 (15 U.S.C. 690f(a)) is amended by striking <quote>or
grant</quote>.</text>
</section><section id="H5EE125A45A4F4617876F19FACD0EAECB"><enum>527.</enum><header>Increased
operational assistance grants</header><text display-inline="no-display-inline">Section 397(a) of the Small Business
Investment Act of 1958 (15 U.S.C. 690p(a)) is amended by inserting after
<quote>and 2009</quote> the following: <quote>and $30,000,000 in such grants
for each of fiscal years 2010 and 2011</quote>.</text>
</section><section id="HF46BE2C7D69F45498F0B8E6B2E8F4CC9"><enum>528.</enum><header>Authorizations
of appropriations</header><text display-inline="no-display-inline">Section 397
of the Small Business Investment Act of 1958 (15 U.S.C. 690p) is
amended—</text>
<paragraph id="HC6E450E493CA477782536BE38EAC8840"><enum>(1)</enum><text>in the heading by
inserting after <quote><header-in-text level="section" style="OLC">appropriations</header-in-text></quote> the following:
<quote><header-in-text level="section" style="OLC">and program
levels</header-in-text></quote>; and</text>
</paragraph><paragraph id="H706F16F98C954738A9B0EECCF2D0902E"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="H7B779C52B2084F129BE88C1C327E325A" style="OLC">
<subsection id="H7D817E9FC1A54ACEA3890B5C65D80A71"><enum>(c)</enum><header>Program
levels</header><text display-inline="yes-display-inline">For the programs
authorized by this part, the Administration is authorized to make
$1,000,000,000 in guarantees of debentures for each of fiscal years 2010 and
2011.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><enum>VI</enum><header>Small business
health information technology financing program</header>
<section id="HE227909719544A8CB25029902A4F4813" section-type="subsequent-section"><enum>601.</enum><header>Small business
health information technology financing program</header><text display-inline="no-display-inline">The Small Business Act (15 U.S.C. 631 et
seq.), as amended by this Act, is further amended by redesignating section 45
as section 46 and by inserting the following new section after section
44:</text>
<quoted-block display-inline="no-display-inline" id="HC049940E9AC34C12A9685E2E455EADE5" style="OLC">
<section id="HD7799876C2EE4F9CBCD1F1ACD67D900F"><enum>45.</enum><header>Loan guarantees
for health information technology</header>
<subsection id="H8B49C6BBE46A4FED84DE2349E42255AD"><enum>(a)</enum><header>Definitions</header><text>As
used in this section:</text>
<paragraph id="H1B12339F64B84233ACCAA7396E83D682"><enum>(1)</enum><text display-inline="yes-display-inline">The term <term>health information
technology</term> means computer hardware, software, and related technology
that supports the meaningful EHR use requirements set forth in section
1848(o)(2)(A) of the Social Security Act (42 U.S.C. 1395w–4(o)(2)(A)) and is
purchased by an eligible professional to aid in the provision of health care in
a health care setting, including, but not limited to, electronic medical
records, and that provides for—</text>
<subparagraph id="H2B8573361680499586378BC2B4864244"><enum>(A)</enum><text>enhancement of
continuity of care for patients through electronic storage, transmission, and
exchange of relevant personal health data and information, such that this
information is accessible at the times and places where clinical decisions will
be or are likely to be made;</text>
</subparagraph><subparagraph id="H7650E925C6C4454C9C39112DD1908D71"><enum>(B)</enum><text>enhancement of
communication between patients and health care providers;</text>
</subparagraph><subparagraph id="HA6135DDBB93448A3B9EA46BBD3DB7965"><enum>(C)</enum><text>improvement of
quality measurement by eligible professionals enabling them to collect, store,
measure, and report on the processes and outcomes of individual and population
performance and quality of care;</text>
</subparagraph><subparagraph id="H89ECAC4B0655490FBB629459DEDF0179"><enum>(D)</enum><text>improvement of
evidence-based decision support; or</text>
</subparagraph><subparagraph id="H334415361BCC4835B3FCC1A7C81C35D7"><enum>(E)</enum><text>enhancement of
consumer and patient empowerment.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term
shall not include information technology whose sole use is financial
management, maintenance of inventory of basic supplies, or appointment
scheduling.</continuation-text></paragraph><paragraph id="HBE4B169DCC3C47E8B62C84D3FE6CFBD6"><enum>(2)</enum><text>The term
<term>eligible professional</term> means any of the following:</text>
<subparagraph id="H44CE0082E0BE4F2297665CFA977BCAB3"><enum>(A)</enum><text display-inline="yes-display-inline">A physician (as defined in section 1861(r)
of the Social Security Act (42 U.S.C. 1395x(r))).</text>
</subparagraph><subparagraph id="HC25E918EE1BD4932A6F1EF9DB7D8A5F3"><enum>(B)</enum><text>A practitioner
described in section 1842(b)(18)(C) of that Act.</text>
</subparagraph><subparagraph id="H716F29D711AB43268B74EE971BD3E168"><enum>(C)</enum><text>A physical or
occupational therapist or a qualified speech-language pathologist.</text>
</subparagraph><subparagraph id="H0E7127049BEF4AF3A4F5DF5477F06366"><enum>(D)</enum><text>A qualified
audiologist (as defined in section 1861(ll)(3)(B)) of that Act.</text>
</subparagraph><subparagraph id="H992CD614B8E9477F9049667A475E47A9"><enum>(E)</enum><text>A qualified
medical transcriptionist who is either certified by or registered with the
Association for Healthcare Documentation Integrity, or a successor association
thereto.</text>
</subparagraph><subparagraph id="HC8F03971B47243DCBC93E7676E2041DF"><enum>(F)</enum><text>A State-licensed
pharmacist.</text>
</subparagraph><subparagraph id="H77F1A1C2B55845D5ACE8E8719D0E6C84"><enum>(G)</enum><text>A State-licensed
supplier of durable medical equipment, prosthetics, orthotics, or
supplies.</text>
</subparagraph><subparagraph id="H51E731530B78407191D5EFCEEC25CC00"><enum>(H)</enum><text display-inline="yes-display-inline">A State-licensed, a State-certified, or a
nationally accredited home health care provider.</text>
</subparagraph></paragraph><paragraph id="HB49E26F20B4440E2924355900794E4D9"><enum>(3)</enum><text>The term
<term>qualified eligible professional</term> means an eligible professional
whose office can be classified as a small business concern by the Administrator
for purposes of this Act under size standards established under section 3 of
this Act.</text>
</paragraph><paragraph id="H3EAC5DBF49EA455C811ED9CCA5A3F30E"><enum>(4)</enum><text>The term
<term>qualified medical transcriptionist</term> means a specialist in medical
language and the healthcare documentation process who interprets and
transcribes dictation by physicians and other healthcare professionals to
ensure accurate, complete, and consistent documentation of healthcare
encounters.</text>
</paragraph></subsection><subsection id="HDDBC20A9BACF44F7A04BD6C3FBCE0F20"><enum>(b)</enum><header>Loan guarantees
for qualified eligible professionals</header>
<paragraph id="HEA40121641034CCF99B5D0A7948B2BD7"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the Administrator may guarantee
up to 90 percent of the amount of a loan made to a qualified eligible
professional to be used for the acquisition of health information technology
for use in such eligible professional’s medical practice and for the costs
associated with the installation of such technology. Except as otherwise
provided in this section, the terms and conditions that apply to loans made
under section 7(a) of this Act shall apply to loan guarantees made under this
section.</text>
</paragraph><paragraph id="H61539C0E175247B891BB2598B17262AA"><enum>(2)</enum><header>Limitations on
guarantee amounts</header><text>The maximum amount of loan principal guaranteed
under this subsection may not exceed—</text>
<subparagraph id="HDEB4BA3D1B7E4DC9B246CFAD30F22479"><enum>(A)</enum><text display-inline="yes-display-inline">$350,000 with respect to any single
qualified eligible professional; and</text>
</subparagraph><subparagraph id="HE6305987CD104E55A50DB8D57909E10B"><enum>(B)</enum><text>$2,000,000 with
respect to a single group of affiliated qualified eligible
professionals.</text>
</subparagraph></paragraph></subsection><subsection id="H49806EFF9F3C4607BBABD4DF494CE5C5"><enum>(c)</enum><header>Fees</header><paragraph commented="no" display-inline="yes-display-inline" id="HACD62DA79363473E8AA5EEC57FD2730E"><enum>(1)</enum><text>The Administrator may
impose a guarantee fee on the borrower for the purpose of reducing the cost (as
defined in section 502(5) of the Federal Credit Reform Act of 1990) of the
guarantee to zero in an amount not to exceed 2 percent of the total guaranteed
portion of any loan guaranteed under this section. The Administrator may also
impose annual servicing fees on lenders not to exceed 0.5 percent of the
outstanding balance of the guarantees on lenders’ books.</text>
</paragraph><paragraph id="HBC2C87190DF84BA39EB6A8F112436424" indent="up1"><enum>(2)</enum><text>No service fees, processing fees,
origination fees, application fees, points, brokerage fees, bonus points, or
other fees may be charged to a loan applicant or recipient by a lender in the
case of a loan guaranteed under this section.</text>
</paragraph></subsection><subsection id="H32FE7540C33F4285A367BC2A17EC1116"><enum>(d)</enum><header>Deferral
period</header><text>Loans guaranteed under this section shall carry a deferral
period of not less than 1 year and not more than 3 years. The Administrator
shall have the authority to subsidize interest during the deferral
period.</text>
</subsection><subsection id="H80215D292FFA4DBBA33349C334ADCA80"><enum>(e)</enum><header>Effective
date</header><text display-inline="yes-display-inline">No loan may be
guaranteed under this section until the meaningful EHR use requirements have
been determined by the Secretary of Health and Human Services.</text>
</subsection><subsection id="HD2E0028D2A894322B309A2C01A67BCA1"><enum>(f)</enum><header>Sunset</header><text>No
loan may be guaranteed under this section after the date that is 7 years after
meaningful EHR use requirements have been determined by the Secretary of Health
and Human Services.</text>
</subsection><subsection id="H8C6A04332D5F4127B37CEB324FFEC07F"><enum>(g)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated such sums
as are necessary for the cost (as defined in section 502(5) of the Federal
Credit Reform Act of 1990) of guaranteeing $10,000,000,000 in loans under this
section. The Administrator shall determine such program cost separately and
distinctly from other programs operated by the
Administrator.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>VII</enum><header>Small business
early-stage investment program</header>
<section id="H58B5C52984834E6DBF5671A5F63DC592"><enum>701.</enum><header>Small business
early-stage investment program</header><text display-inline="no-display-inline">Title III of the Small Business Investment
Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H51EB7452C84D464B9C76F2BCB64A5C9E" style="OLC">
<part id="HA576F9CCEF2542DCA673AEFB1CFF6F02"><enum>D</enum><header>Small business
early-stage investment program</header>
<section id="H9619323A5B60489EBD2A8C74D41F3558"><enum>399A.</enum><header>Establishment
of program</header><text display-inline="no-display-inline">The Administrator
shall establish and carry out an early-stage investment program (hereinafter
referred to in this part as the <quote>program</quote>) to provide equity
investment financing to support early-stage small businesses in targeted
industries in accordance with this part.</text>
</section><section id="H7089CBDD27384029920F85EFFE2A5D3C"><enum>399B.</enum><header>Administration
of program</header><text display-inline="no-display-inline">The program shall
be administered by the Administrator acting through the Associate Administrator
described under section 201.</text>
</section><section id="H3D7EA928A66B4B5B8226FB9D3DD0D98F"><enum>399C.</enum><header>Applications</header>
<subsection id="H430CD248B8D6450FA0EC8316B65B80C3"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Any incorporated
body, limited liability company, or limited partnership organized and chartered
or otherwise existing under Federal or State law for the purpose of performing
the functions and conducting the activities contemplated under the program and
any small business investment company may submit to the Administrator an
application to participate in the program.</text>
</subsection><subsection id="HE7A7A279602A403AA3A837E1E4DF17C4"><enum>(b)</enum><header>Requirements for
application</header><text>An application to participate in the program shall
include the following:</text>
<paragraph id="H5BB63048FC8F4BC6AFC730E205D37475"><enum>(1)</enum><text display-inline="yes-display-inline">A business plan describing how the
applicant intends to make successful venture capital investments in early-stage
small businesses in targeted industries.</text>
</paragraph><paragraph id="HF2E7E923BDC9429EA6FD7C969FD1B1B4"><enum>(2)</enum><text>Information
regarding the relevant venture capital investment qualifications and
backgrounds of the individuals responsible for the management of the
applicant.</text>
</paragraph><paragraph id="H09634ED772A24BFA8844B33CBB240519"><enum>(3)</enum><text>A description of
the extent to which the applicant meets the selection criteria under section
399D.</text>
</paragraph></subsection><subsection id="H78AA021CD2C943AF878FC4BC5C8E57F4"><enum>(c)</enum><header>Applications
from small business investment companies</header><text>The Administrator shall
establish an abbreviated application process for small business investment
companies that have received a license under section 301 and that are applying
to participate in the program. Such abbreviated process shall incorporate a
presumption that such small business investment companies satisfactorily meet
the selection criteria under paragraphs (3) and (5) of section 399D(b).</text>
</subsection></section><section id="H0B4D33A2835244E8B7D23062A37F49D8"><enum>399D.</enum><header>Selection of
participating investment companies</header>
<subsection id="HDB5CD3EB00934D24A6C164A5A166C0F5"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 90
days after the date on which the Administrator receives an application from an
applicant under section 399C, the Administrator shall make a final
determination to approve or disapprove such applicant to participate in the
program and shall transmit such determination to the applicant in
writing.</text>
</subsection><subsection id="HD42C73CC619546E190AB87CB13658673"><enum>(b)</enum><header>Selection
criteria</header><text>In making a determination under subsection (a), the
Administrator shall consider each of the following:</text>
<paragraph id="HED5C20F43688456AB34B7808DC325BE0"><enum>(1)</enum><text display-inline="yes-display-inline">The likelihood that the applicant will meet
the goals specified in the business plan of the applicant.</text>
</paragraph><paragraph id="H6AC61B1BBA6342869FBD33AEBBF451F2"><enum>(2)</enum><text>The likelihood
that the investments of the applicant will create or preserve jobs, both
directly and indirectly.</text>
</paragraph><paragraph id="H85D7663833144A6397710777CB56CD34"><enum>(3)</enum><text>The character and
fitness of the management of the applicant.</text>
</paragraph><paragraph id="HE868F5B5B2F34DF0AB956EB74E7EE939"><enum>(4)</enum><text>The experience and
background of the management of the applicant.</text>
</paragraph><paragraph id="H1CD1F92BD84749EE8F04D7BEBAF502A6"><enum>(5)</enum><text>The extent to
which the applicant will concentrate investment activities on early-stage small
businesses in targeted industries.</text>
</paragraph><paragraph id="H6484D0A5772F4601ABCFEEBDCF75115F"><enum>(6)</enum><text>The likelihood
that the applicant will achieve profitability.</text>
</paragraph><paragraph id="H279C12DF0B3F4C8C912C93875934A77D"><enum>(7)</enum><text>The experience of
the management of the applicant with respect to establishing a profitable
investment track record.</text>
</paragraph></subsection></section><section id="H01D2526799B845EFB12D77E34D656B4B"><enum>399E.</enum><header>Grants</header>
<subsection id="H31735E4668E14F8DA53082779AFE8603"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Administrator may
make one or more grants to a participating investment company.</text>
</subsection><subsection id="HBFC14AF1EB4F4D84804679D907F8E132"><enum>(b)</enum><header>Grant
amounts</header>
<paragraph id="H1F19B12F14F1410C8112F2ECA3D8D56A"><enum>(1)</enum><header>Non-Federal
capital</header><text display-inline="yes-display-inline">A grant made to a
participating investment company under the program may not be in an amount that
exceeds the amount of the capital of such company that is not from a Federal
source and that is available for investment on or before the date on which a
grant is drawn upon. Such capital may include legally binding commitments with
respect to capital for investment.</text>
</paragraph><paragraph id="HE377F07588BA420EA8654B7868CD335E"><enum>(2)</enum><header>Limitation on
aggregate amount</header><text>The aggregate amount of all grants made to a
participating investment company under the program may not exceed
$100,000,000.</text>
</paragraph></subsection><subsection id="HBEE02B1402004D3EB0361A424BF825D4"><enum>(c)</enum><header>Grant
process</header><text display-inline="yes-display-inline">In making a grant
under the program, the Administrator shall commit a grant amount to a
participating investment company and the amount of each such commitment shall
remain available to be drawn upon by such company—</text>
<paragraph id="HA1C8A465759143B3BA42156FF6EF46C0"><enum>(1)</enum><text>for new-named
investments during the 5-year period beginning on the date on which each such
commitment is first drawn upon; and</text>
</paragraph><paragraph id="H13BDC44436FA414F84E9B4F1A26E8A07"><enum>(2)</enum><text display-inline="yes-display-inline">for follow-on investments and management
fees during the 10-year period beginning on the date on which each such
commitment is first drawn upon, with not more than 2 additional 1-year periods
available at the discretion of the Administrator.</text>
</paragraph></subsection></section><section id="H289D2BBE6C3640EE88D67F27E7E7360F"><enum>399F.</enum><header>Investments in
early-stage small businesses in targeted industries</header>
<subsection id="H91AC0884EA0C4E6D83C279A431CFF151"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">As a condition of
receiving a grant under the program, a participating investment company shall
make all of the investments of such company in small business concerns, of
which at least 50 percent shall be early-stage small businesses in targeted
industries.</text>
</subsection><subsection id="H70C106EC5CE74C0A85F27CEEC38F7F94"><enum>(b)</enum><header>Evaluation of
compliance</header><text>With respect to a grant amount committed to a
participating investment company under section 399E, the Administrator shall
evaluate the compliance of such company with the requirements under this
section if such company has drawn upon 50 percent of such commitment.</text>
</subsection></section><section id="H8C2FEA9B653A48079FADC37279FE4095"><enum>399G.</enum><header>Pro rata
investment shares</header><text display-inline="no-display-inline">Each
investment made by a participating investment company under the program shall
be treated as comprised of capital from grants under the program according to
the ratio that capital from grants under the program bears to all capital
available to such company for investment.</text>
</section><section id="HF96AC0297EC1411386DCA5799585B481"><enum>399H.</enum><header>Grant
interest</header>
<subsection id="H125B12977E6A4F9488103E1ADDF62EE5"><enum>(a)</enum><header>Grant
Interest</header>
<paragraph id="HAA20690C9F424C0F97079F5ACBF97C3B"><enum>(1)</enum><header>In
general</header><text>As a condition of receiving a grant under the program, a
participating investment company shall convey a grant interest to the
Administrator in accordance with paragraph (2).</text>
</paragraph><paragraph id="HD0E6E9E3DC284AB48717A461E9F99E7F"><enum>(2)</enum><header>Effect of
conveyance</header><text>The grant interest conveyed under paragraph (1) shall
have all the rights and attributes of other investors attributable to their
interests in the participating investment company, but shall not denote control
or voting rights to the Administrator. The grant interest shall entitle the
Administrator to a pro rata portion of any distributions made by the
participating investment company equal to the percentage of capital in the
participating investment company that the grant comprises. The Administrator
shall receive distributions from the participating investment company at the
same times and in the same amounts as any other investor in the company with a
similar interest. The investment company shall make allocations of income,
gain, loss, deduction, and credit to the Administrator with respect to the
grant interest as if the Administrator were an investor.</text>
</paragraph></subsection><subsection id="HA7FED666460A438BBB78C44184191F1D"><enum>(b)</enum><header>Manager
profits</header><text display-inline="yes-display-inline">As a condition of
receiving a grant under the program, the manager profits interest payable to
the managers of a participating investment company under the program shall not
exceed 20 percent of profits, exclusive of any profits that may accrue as a
result of the capital contributions of any such managers with respect to such
company. Any excess of this amount, less taxes payable thereon, shall be
returned by the managers and paid to the investors and the Administrator in
proportion to the capital contributions and grants paid in. No manager profits
interest (other than a tax distribution) shall be paid prior to the repayment
to the investors and the Administrator of all contributed capital and grants
made.</text>
</subsection><subsection id="H394739C4BDA143B18EE4538B5CE913DB"><enum>(c)</enum><header>Distribution
requirements</header><text>As a condition of receiving a grant under the
program, a participating investment company shall make all distributions to all
investors in cash and shall make distributions within a reasonable time after
exiting investments, including following a public offering or market sale of
underlying investments.</text>
</subsection></section><section id="HD4089D03A17D48BCBC18A370683A73EE"><enum>399I.</enum><header>Fund</header><text display-inline="no-display-inline">There is hereby created within the Treasury
a separate fund for grants which shall be available to the Administrator
subject to annual appropriations as a revolving fund to be used for the
purposes of the program. All amounts received by the Administrator, including
any moneys, property, or assets derived by the Administrator from operations in
connection with the program, shall be deposited in the fund. All expenses and
payments, excluding administrative expenses, pursuant to the operations of the
Administrator under the program shall be paid from the fund.</text>
</section><section id="H606C5A38383E4F17A121A3398C3C1EB5"><enum>399J.</enum><header>Application of
other sections</header><text display-inline="no-display-inline">To the extent
not inconsistent with requirements under this part, the Administrator may apply
sections 309, 311, 312, 313, and 314 to activities under this part and an
officer, director, employee, agent, or other participant in a participating
investment company shall be subject to the requirements under such
sections.</text>
</section><section id="H6E280962622D482F8C5FF55857FD725E"><enum>399K.</enum><header>Definitions</header><text display-inline="no-display-inline">In this part, the following definitions
apply:</text>
<paragraph id="H1B3ECD71D51B434B9551A0DDC8AA1138"><enum>(1)</enum><header>Early-stage
small business in a targeted industry</header><text>The term <term>early-stage
small business in a targeted industry</term> means a small business concern
that—</text>
<subparagraph id="H99E4C8DCF26D4A58BB67CFAC246A9019"><enum>(A)</enum><text>is domiciled in a
State;</text>
</subparagraph><subparagraph id="HCE94898EB695478E8DCC6A2068CE02AD"><enum>(B)</enum><text display-inline="yes-display-inline">has not generated gross annual sales
revenues exceeding $15,000,000 in any of the previous 3 years; and</text>
</subparagraph><subparagraph id="HE5C5C119F40B4F78A1A14D593304ADD3"><enum>(C)</enum><text>is engaged
primarily in researching, developing, manufacturing, producing, or bringing to
market goods, products, or services with respect to any of the following
business sectors:</text>
<clause id="HBC95D38F74D64402A8FCDF994CBD307B"><enum>(i)</enum><text>Agricultural
technology.</text>
</clause><clause id="H8EB456123A7146359961106A3EECE755"><enum>(ii)</enum><text>Energy
technology.</text>
</clause><clause id="HB1BDE011040844A6A08AEE56AB4FF9F3"><enum>(iii)</enum><text>Environmental
technology.</text>
</clause><clause id="HEEFB729887D644C78C96D6F6470B5BC2"><enum>(iv)</enum><text>Life
science.</text>
</clause><clause id="HCB7BB55BE89044E1BEA5E6CA9984DD59"><enum>(v)</enum><text>Information
technology.</text>
</clause><clause id="H197E9EE536D041FDACFF27B5B38D87B9"><enum>(vi)</enum><text>Digital
media.</text>
</clause><clause id="HD79268637F5446C381706B5128D5161A"><enum>(vii)</enum><text>Clean
technology.</text>
</clause><clause id="HF2D58D724DF447DA81F99E065AC73EFF"><enum>(viii)</enum><text>Defense
technology.</text>
</clause><clause id="HD0FDF218BAB245BB84CD3E522C589948"><enum>(ix)</enum><text>Photonics
technology.</text>
</clause></subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H347AE7A8F3254CB8BF823C940422728C"><enum>(2)</enum><header>Participating
investment company</header><text display-inline="yes-display-inline">The term
<term>participating investment company</term> means an applicant approved under
section 399D to participate in the program.</text>
</paragraph><paragraph id="H0D30F9BEF3B74847A338837FD57F8EE7"><enum>(3)</enum><header>Small business
concern</header><text>The term <term>small business concern</term> has the same
meaning given such term under section 3(a) of the Small Business Act (15 U.S.C.
632(a)).</text>
</paragraph></section><section id="H67052F75DB3E43DF9DFC809956F2F1C5"><enum>399L.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">There is
authorized to be appropriated to carry out the program $200,000,000 for the
first full fiscal year beginning after the date of the enactment of this
part.</text>
</section></part><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H72C9B845BADE4D95886CBA42FF954674"><enum>702.</enum><header>Prohibitions on
earmarks</header><text display-inline="no-display-inline">None of the funds
appropriated for the program established under part D of title III of the Small
Business Investment Act of 1958, as added by this title, may be used for a
Congressional earmark as defined in clause 9(d) of rule XXI of the Rules of the
House of Representatives.</text>
</section><enum>VIII</enum><header>SBA disaster
program reform</header>
<section commented="no" id="H890EEBAD12624460AD6F3E28C7904E4A"><enum>801.</enum><header>Revised
collateral requirements</header><text display-inline="no-display-inline">Section 7 of the Small Business Act (15
U.S.C. 636) is amended—</text>
<paragraph id="H9E368CD594D847828780B6ECD8AD717C"><enum>(1)</enum><text>by striking
<quote>(e) <header-in-text level="subsection" style="OLC">[RESERVED].</header-in-text></quote> and <quote>(f)
<header-in-text level="subsection" style="OLC">[RESERVED].</header-in-text></quote>; and</text>
</paragraph><paragraph id="H6120BCD970034059B570B238ED37239C"><enum>(2)</enum><text>in subsection (f),
as added by section 12068(a)(2) of the Small Business Disaster Response and
Loan Improvements Act of 2008 (subtitle B of title XII of the Food,
Conservation, and Energy Act of 2008; Public Law 110–246), by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H01DB9256A7524484B7AC90C17361F9E9" style="OLC">
<paragraph id="HA59BBA5976094B66A66F052544C0C513"><enum>(2)</enum><header>Revised
collateral requirements</header><text display-inline="yes-display-inline">In
making a loan with respect to a business under subsection (b), if the total
approved amount of such loan is less than or equal to $250,000, the
Administrator may not require the borrower to use the borrower’s home as
collateral.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="H715B34713DCC4F519E44EB83BF91F923"><enum>802.</enum><header>Increased
limits</header><text display-inline="no-display-inline">Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) is amended—</text>
<paragraph id="H81E2CF11EE3D46BEBB3979F4F6F4F4EC"><enum>(1)</enum><text>in paragraph
(3)(E) by striking <quote>$1,500,000</quote> each place it appears and
inserting <quote>$3,000,000</quote>; and</text>
</paragraph><paragraph id="H749E96DE1D7E462C8350E315C186E274"><enum>(2)</enum><text>in paragraph
(8)(A) by striking <quote>$2,000,000</quote> and inserting
<quote>$3,000,000</quote>.</text>
</paragraph></section><section commented="no" id="H8B9D5362D6074F058DB48360EC1EA0C8"><enum>803.</enum><header>Revised
repayment terms</header><text display-inline="no-display-inline">Section 7(f)
of the Small Business Act (15 U.S.C. 636(f)) is amended by adding at the end
the following:</text>
<quoted-block display-inline="no-display-inline" id="H0374DD39F5684B1496679BFFE4466895" style="OLC">
<paragraph id="H777375CC083B4C28867DAD3CD57B2A6C"><enum>(3)</enum><header>Revised
repayment terms</header><text>In making loans under subsection (b), the
Administrator—</text>
<subparagraph id="HECD72F36EF234132894AA56FA4396827"><enum>(A)</enum><text>may not require
repayment to begin until the date that is 12 months after the date on which the
final disbursement of approved amounts is made; and</text>
</subparagraph><subparagraph id="HE7BF4B7440F14B398B4EC6D70B0E8A0D"><enum>(B)</enum><text display-inline="yes-display-inline">shall calculate the amount of repayment
based solely on the amounts
disbursed.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="HCE1D4CD382F34F5EA4E688C66F5611CF"><enum>804.</enum><header>Revised
disbursement process</header><text display-inline="no-display-inline">Section
7(f) of the Small Business Act (15 U.S.C. 636(f)), as amended by this Act, is
further amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="H1898EEC3A33C44EFB81EA9F8DF4252D1" style="OLC">
<paragraph id="H67DE452F67064E909B97240EFF997E7A"><enum>(4)</enum><header>Revised
disbursement process</header><text>In making a loan under subsection (b), the
Administrator shall disburse loan amounts in accordance with the
following:</text>
<subparagraph id="HA700AE3A96344ACAA6CA211A452C1F58"><enum>(A)</enum><text>If the total
amount approved with respect to such loan is less than or equal to
$150,000—</text>
<clause id="HBF661E1797214EA7A7BB9F9E07E88D33"><enum>(i)</enum><text>the first
disbursement with respect to such loan shall consist of 40 percent of the total
loan amount, or a lesser percentage of the total loan amount if the
Administrator and the borrower agree on such a lesser percentage;</text>
</clause><clause id="H4F81FC247F3F4D478EC84C39F4710DA0"><enum>(ii)</enum><text>the second
disbursement shall consist of 50 percent of the loan amounts that remain after
the first disbursement, and shall be made when the borrower has produced
satisfactory receipts to demonstrate the proper use of 50 percent of the first
disbursement; and</text>
</clause><clause id="HDC2CA974B8174F54B7884ABE9B3D78DF"><enum>(iii)</enum><text>the third
disbursement shall consist of the loan amounts that remain after the preceding
disbursements, and shall be made when the borrower has produced satisfactory
receipts to demonstrate the proper use of the first disbursement and 50 percent
of the second disbursement.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H33306D34254748ABB4A2832CEFD8669F"><enum>(B)</enum><text>If the total
amount approved with respect to such loan is more than $150,000 but less than
or equal to $500,000—</text>
<clause id="H2B570F04D2834508A98FCDD0C0B7EE58"><enum>(i)</enum><text>the first
disbursement with respect to such loan shall consist of 20 percent of the total
loan amount, or a lesser percentage of the total loan amount if the
Administrator and the borrower agree on such a lesser percentage;</text>
</clause><clause id="H75A13D3F49F74C42960016C7A47A9090"><enum>(ii)</enum><text>the second
disbursement shall consist of 30 percent of the loan amounts that remain after
the first disbursement, and shall be made when the borrower has produced
satisfactory receipts to demonstrate the proper use of 50 percent of the first
disbursement;</text>
</clause><clause id="HAB9E031557A644179994303F107B09EE"><enum>(iii)</enum><text>the third
disbursement shall consist of 25 percent of the loan amounts that remain after
the first and second disbursements, and shall be made when the borrower has
produced satisfactory receipts to demonstrate the proper use of the first
disbursement and 50 percent of the second disbursement; and</text>
</clause><clause id="H9B834131D3834F68B25A6179BACDD01C"><enum>(iv)</enum><text>the fourth
disbursement shall consist of the loan amounts that remain after the preceding
disbursements, and shall be made when the borrower has produced satisfactory
receipts to demonstrate the proper use of the first and second disbursements
and 50 percent of the third disbursement.</text>
</clause></subparagraph><subparagraph id="HACA8CA7CA40B4750ABB1C70CE8BB5EC6"><enum>(C)</enum><text>If the total
amount approved with respect to such loan is more than $500,000—</text>
<clause id="H962E045DA0BD405997BCEAE094519052"><enum>(i)</enum><text display-inline="yes-display-inline">the first disbursement with respect to such
loan shall consist of at least $100,000, or a lesser amount if the
Administrator and the borrower agree on such a lesser amount; and</text>
</clause><clause id="HA98CE8834280466683890503E13F7A37"><enum>(ii)</enum><text>the number of
disbursements after the first, and the amount of each such disbursement, shall
be in the discretion of the Administrator, but the amount of each such
disbursement shall be at least
$100,000.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" id="HD3212DBC34004BB99C3617D5EE7B3EBF"><enum>805.</enum><header>Grant
program</header><text display-inline="no-display-inline">Section 7(b) of the
Small Business Act (15 U.S.C. 636(b)), as amended by this Act, is further
amended by inserting after paragraph (9) the following:</text>
<quoted-block id="H4C0FAD9C45FE4F9BBE92BFACE5ED6691">
<paragraph commented="no" id="H1A1A46B2A6734F4ABD4F15A3FD7EF1AC"><enum>(10)</enum><header>Grants to
disaster-affected small businesses</header>
<subparagraph commented="no" id="H47005AECF53A4908A7140798207D1058"><enum>(A)</enum><header>In
general</header><text>If the Administrator declares eligibility for additional
disaster assistance under paragraph (9), the Administrator may make a grant, in
an amount not exceeding $100,000, to a small business concern that—</text>
<clause id="H450F460A01D346DA85F0B6D19532DB81"><enum>(i)</enum><text display-inline="yes-display-inline">is located in an area affected by the
applicable major disaster;</text>
</clause><clause commented="no" id="H37940F9DE8524201920A3E8133DB0372"><enum>(ii)</enum><text display-inline="yes-display-inline">submits to the Administrator a
certification by the owner of the concern that such owner intends to
reestablish the concern in the same county in which the concern was originally
located;</text>
</clause><clause id="HE90B7731DE9040448C2DA2A0746DA3CC"><enum>(iii)</enum><text>has applied for,
and was rejected for, a conventional disaster assistance loan under this
subsection; and</text>
</clause><clause id="HF9B42BB558364D07B2D0612AEB437016"><enum>(iv)</enum><text>was in existence
for at least 2 years before the date on which the applicable disaster
declaration was made.</text>
</clause></subparagraph><subparagraph commented="no" id="H2AC104D65AAE4F8F926803FC01444B06"><enum>(B)</enum><header>Priority</header><text>In
making grants under this paragraph, the Administrator shall give priority to a
small business concern that the Administrator determines is economically viable
but unable to meet short-term financial obligations.</text>
</subparagraph><subparagraph id="HB622BDB149774B3493FFEF6C50854495"><enum>(C)</enum><header>Program level
and authorization of appropriations</header>
<clause id="H451682CA0AB34052A4BC83ACD792F259"><enum>(i)</enum><header>Program
level</header><text>The Administrator is authorized to make $100,000,000 in
grants under this paragraph for each of fiscal years 2010 and 2011.</text>
</clause><clause id="H0ABD68D505DB4B60AEC6A2F9635DC705"><enum>(ii)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to the
Administrator such sums as may be necessary to carry out this
paragraph.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAAB0A7603B6E475F8261559B327BB63C"><enum>806.</enum><header>Regional
disaster working groups</header><text display-inline="no-display-inline">Section 40 of the Small Business Act (15
U.S.C. 657l) is amended—</text>
<paragraph id="H615A1C1EBFD7460CAFEF46FF3045CF35"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (a), in the matter preceding
paragraph (1), by striking <quote>or</quote> and inserting
<quote>and</quote>;</text>
</paragraph><paragraph id="H29E7F0BBCD1B4B9E81EF62801B336D58"><enum>(2)</enum><text>by redesignating
subsection (d) as subsection (e); and</text>
</paragraph><paragraph id="H27D56F1134B7435F84EB0C1189D797B3"><enum>(3)</enum><text>by inserting after
subsection (c) the following:</text>
<quoted-block display-inline="no-display-inline" id="HEBE82D542DDD4BE8B1C29809F04D20E8" style="OLC">
<subsection id="H4FE85616A81F43359B2C9AF61F42293B"><enum>(d)</enum><header>Regional
disaster working groups</header><text display-inline="yes-display-inline">In
carrying out the responsibilities pertaining to loan making activities under
subsection (a), the Administrator, acting through the regional administrators
of the regional offices of the Administration, shall develop a disaster
preparedness and response plan for each region of the Administration. Each such
plan shall be developed in cooperation with Federal, State, and local emergency
response authorities and representatives of businesses located in the region to
which such plan applies. Each such plan shall identify and include a plan
relating to the 3 disasters, natural or manmade, most likely to occur in the
region to which such plan
applies.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H9DAE065F3A1242B088A4BE22B68B9C51"><enum>807.</enum><header>Outreach grants
for loan applicant assistance</header><text display-inline="no-display-inline">Section 7(b) of the Small Business Act (15
U.S.C. 636(b)), as amended by this Act, is further amended by inserting after
paragraph (10) the following:</text>
<quoted-block display-inline="no-display-inline" id="HE09C5B67818F4259A5EE1D66AC7FBCC7" style="OLC">
<paragraph id="H538945208B244F10967E92EB870E080D"><enum>(11)</enum><header>Outreach grants
for loan applicant assistance</header>
<subparagraph id="H9AC45D8827C4417DAB0655D35589AFA1"><enum>(A)</enum><header>In
general</header><text>From amounts made available for administrative expenses
relating to activities under this subsection, the Administrator is authorized
to make grants to the following:</text>
<clause id="H36E6F48EC19943798381978A9CD55E7F"><enum>(i)</enum><text>A
women’s business center in an area affected by a disaster.</text>
</clause><clause id="H76866D65FF67478D98F5F4789CD79374"><enum>(ii)</enum><text display-inline="yes-display-inline">A small business development center in an
area affected by a disaster.</text>
</clause><clause id="H859F4BAF3AD04E01AE18D5ED74256EF9"><enum>(iii)</enum><text>A Veteran
Business Outreach Center in an area affected by a disaster.</text>
</clause><clause id="HDDC0C79D3A884D0085B03F1BE152FA94"><enum>(iv)</enum><text>A
chamber of commerce in an area affected by a disaster.</text>
</clause></subparagraph><subparagraph id="HD47BF7C5024743CB8BDAFD4A75E1C5C0"><enum>(B)</enum><header>Use of
grant</header><text>An entity specified under subparagraph (A) shall use a
grant received under this paragraph to provide application preparation
assistance to applicants for a loan under this subsection.</text>
</subparagraph><subparagraph id="H8D1441499CCA42E9BF66C14593030577"><enum>(C)</enum><header>Program
level</header><text>The Administrator is authorized to make $50,000,000 in
grants under this paragraph for each of fiscal years 2010 and
2011.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section display-inline="no-display-inline" id="H70A25E103F814118BA6A89AF47B6DFB4"><enum>808.</enum><header>Homeowners
impacted by toxic drywall</header><text display-inline="no-display-inline">Section 7(b) of the Small Business Act (15
U.S.C. 636(b)), as amended by this Act, is further amended by inserting after
paragraph (11) the following:</text>
<quoted-block display-inline="no-display-inline" id="H6814B741ED884A34A3F8DB4DA9E2C8E4" style="OLC">
<paragraph id="HF13F9EA8788C4775AEC4D4CB2D990FFD"><enum>(12)</enum><header>Homeowners
impacted by toxic drywall</header><text display-inline="yes-display-inline">The
Administrator may make a loan under this subsection to any homeowner if the
primary residence of such homeowner has been adversely impacted by the
installation of toxic drywall manufactured in China. A loan under this
paragraph may be used only for the repair or replacement of such toxic
drywall.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HF4459239E20B4CCB9D70CE84F2A66067"><enum>809.</enum><header>Authorization
of appropriations</header><text display-inline="no-display-inline">Section 20
of the Small Business Act (15 U.S.C. 631 note), as amended by this Act, is
further amended—</text>
<paragraph id="H089C5FFDF0FC4A3F9D971D5705D3748B"><enum>(1)</enum><text>by redesignating
subsection (j) as subsection (k); and</text>
</paragraph><paragraph id="H73DA95093E394D20BB06673BA4E10FBA"><enum>(2)</enum><text>by inserting after
subsection (i) the following:</text>
<quoted-block display-inline="no-display-inline" id="HFC0A535B8FD844D0924089A32D9448CF" style="OLC">
<subsection id="H201C27B2CB414FFA8ED681DF08B94210"><enum>(j)</enum><header>Fiscal years
2010 and 2011 with respect to section
7<enum-in-header>(b)</enum-in-header></header><text display-inline="yes-display-inline">There is authorized to be appropriated such
sums as may be necessary for administrative expenses and loans under section
7(b).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>IX</enum><header>Regulations</header>
<section id="HDB5D624A7D5343A2917A18C40CD9EF5F"><enum>901.</enum><header>Regulations</header><text display-inline="no-display-inline">Except as otherwise provided in this Act or
in amendments made by this Act, after an opportunity for notice and comment,
but not later than 180 days after the date of the enactment of this Act, the
Administrator shall issue regulations to carry out this Act and the amendments
made by this Act.</text>
</section><enum>X</enum><header>Temporary employee
services franchises</header>
<section id="HBA0A2207AE524347912E726C4E781001"><enum>1001.</enum><header>Temporary
employee services franchises</header><text display-inline="no-display-inline">In determining whether a franchisee is
affiliated with a franchiser in the temporary employee services industry for
the purposes of Small Business Administration lending programs, the
Administrator of the Small Business Administration shall—</text>
<paragraph id="H96920FD894804795872BE8AB7FBBBB5F"><enum>(1)</enum><text>continue to apply
its historically-considered affiliation factors in determining whether a
business is affiliated with another business or the franchiser in the temporary
staffing industry;</text>
</paragraph><paragraph id="H1EFDD17FDBE34DED87FB028976466987"><enum>(2)</enum><text>promulgate such
other rules and regulations as necessary to determine affiliation within the
temporary employee services industry as the Administrator determines consistent
with the Small Business Act; and</text>
</paragraph><paragraph id="H6011D108181149A184658C684F470EAE"><enum>(3)</enum><text>consider the
processing of payroll and billing by a franchiser as customary and common
practice in the temporary employee services industry that does not provide
probative weight on affiliation, to the extent that the temporary staffing
personnel are interviewed, hired, trained, assigned, and subject to discharge
by the franchisee.</text>
</paragraph></section><enum>XI</enum><header>Study on private
sector lending</header>
<section id="HD14FFECEAED942839718D44D41408FD6"><enum>1101.</enum><header>Study on
private sector lending</header>
<subsection id="H8A3E9BF80A354F3D80401EAE4136F681"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 90
days after the date of the enactment of this Act, the Administrator of the
Small Business Administration shall submit to the Committee on Small Business
of the House of Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report that describes lending to small
business concerns by the private sector, including the following:</text>
<paragraph id="H6B796B27B36C42A3B9306B5BE15CD436"><enum>(1)</enum><text>The total amount
of lending to small business concerns by private sector financial institutions
during each of fiscal years 2006 through 2009.</text>
</paragraph><paragraph id="H1A86BA9832C64762BDDF5D7E0BEAA53F"><enum>(2)</enum><text>The total amount
of lending to small business concerns by the 10 largest private sector
financial institutions (as determined by the Administrator in terms of amounts
lent during fiscal year 2006) during each of fiscal years 2006 through
2009.</text>
</paragraph></subsection><subsection id="H0C45CE9A77FA4DB8B3C4A5E20FB19CE2"><enum>(b)</enum><header>Coordination</header><text>The
Administrator of the Small Business Administration shall, if necessary,
coordinate with the heads of other Federal departments and agencies to complete
the report under subsection (a).</text>
</subsection><subsection id="H1C293A4AB1C64A0BB856F976C7A1027B"><enum>(c)</enum><header>Small business
concerns defined</header><text>In this section, the term <quote>small business
concern</quote> has the meaning given such term under section 3(a) of the Small
Business Act (15 U.S.C. 632(a)).</text>
</subsection></section><enum>XII</enum><header>Study on
increases in certain caps</header>
<section id="H5CB300462EE24C81A6328157F4A3136F"><enum>1201.</enum><header>Study on
increases in certain caps</header><text display-inline="no-display-inline">Not
later than 90 days after the date of enactment of this Act, the Administrator
of the Small Business Administration shall submit to Congress a report that
describes the anticipated effects of the following potential changes to
programs, including whether such changes adequately meet the financing needs of
small businesses:</text>
<paragraph id="H83C17562567949668A107025B8DB18F1"><enum>(1)</enum><text display-inline="yes-display-inline">Increasing—</text>
<subparagraph id="HB1545CEE76654415B5A621C3132FEAD6"><enum>(A)</enum><text>the maximum amount
of a loan that may be guaranteed under section 7(a) of the Small Business Act
(15 U.S.C. 636(a)) to $3,000,000; and</text>
</subparagraph><subparagraph id="H81B7D420AFB947E18343689B4B5F1ACF"><enum>(B)</enum><text>participation by
the Administrator with regard to such a loan.</text>
</subparagraph></paragraph><paragraph id="HDD1DE8DE11D94C05956375D6205C6C2E"><enum>(2)</enum><text display-inline="yes-display-inline">Increasing—</text>
<subparagraph id="H7EEAB72C912A409C8688B5B1310B35B6"><enum>(A)</enum><text>the maximum amount
of a debenture that may be guaranteed under title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 et seq.); and</text>
</subparagraph><subparagraph id="H13568A4F2BF94C589268F6FD53885097"><enum>(B)</enum><text>the maximum amount
of a loan that may be made with the proceeds of such debenture.</text>
</subparagraph></paragraph><paragraph id="H44B2079F2886483AB591D70344D10B66"><enum>(3)</enum><text display-inline="yes-display-inline">Increasing the maximum amount of a
microloan that may be made under section 7(m) of the Small Business Act (15
U.S.C. 636(m)).</text>
</paragraph></section><enum>XIII</enum><header>Rural
outreach</header>
<section id="H335E9BD80369439F9D0BDDA873DBDD3F"><enum>1301.</enum><header>Rural
outreach</header><text display-inline="no-display-inline">The Small Business
Act (15 U.S.C. 631 et seq.), as amended by this Act, is further amended—</text>
<paragraph id="H8A5725CE81654FC982D41A3AA5BB6E45"><enum>(1)</enum><text>by redesignating
section 46 as section 47; and</text>
</paragraph><paragraph id="H067390B61F7848659019B9B0E605D6B3"><enum>(2)</enum><text>by inserting after
section 45 the following:</text>
<quoted-block display-inline="no-display-inline" id="H8E8446A558DA4D6FB5BD6DBF0A07E9B6" style="OLC">
<section id="HE62A21F74F9A4A0DA3B6083A3D7C1D84"><enum>46.</enum><header>Rural
outreach</header><text display-inline="no-display-inline">The Administrator
shall ensure that each district office of the Administration that includes a
rural area—</text>
<paragraph id="H9589597F126E4A25A91F54640D60307C"><enum>(1)</enum><text>establishes a plan
to provide small business concerns in rural areas with information on the
financing and investment programs of the Administration of use to such
concerns;</text>
</paragraph><paragraph id="H661D8AEB3C3940F9A02EF78A806A54E3"><enum>(2)</enum><text display-inline="yes-display-inline">designates an employee of the office as a
rural business financing outreach specialist, who is responsible for providing
advice concerning the lending and investment programs of the Administration to
small business concerns; and</text>
</paragraph><paragraph id="HB4C56CBE81FF418E881BCDBD71E30636"><enum>(3)</enum><text display-inline="yes-display-inline">hosts at least one outreach seminar in a
rural area each year to provide information described under paragraph (1) to
small business concerns in rural
areas.</text>
</paragraph></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>XIV</enum><header>Study relating
to medical technology </header>
<section id="HE3DBAF27138241EAA88C386751635BD2"><enum>1401.</enum><header>Study relating
to medical technology</header><text display-inline="no-display-inline">Not
later than one year after the date of the enactment of this Act, the
Administrator of the Small Business Administration shall submit to Congress a
report describing recommendations for and the feasibility of a program—</text>
<paragraph id="H7CF2CBF393614EA98668F11109C164BA"><enum>(1)</enum><text>to increase
investment in the research, development, and commercialization of medical
technology by small business concerns; and</text>
</paragraph><paragraph id="H29249726E4134CF6930A314E43F3A472"><enum>(2)</enum><text>that is
administered in a manner similar to the program under part C of title III of
the Small Business Investment Act of 1958 (15 U.S.C. 690 et seq.).</text>
</paragraph></section><enum>XV</enum><header>Study on
additional credit risk factors</header>
<section id="HBD17FA9F523349D488406035D0E066B8"><enum>1501.</enum><header>Study on
additional credit risk factors</header>
<subsection id="H54849969E1714800A7D3CF01E7D2836F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">With respect to loans
made under programs established or amended under this Act, the Administrator of
the Small Business Administration shall conduct a study on whether the failure
of such loans to achieve one or more of the public policy goals specified in
subsection (b) negatively impacts the ability of businesses receiving such
loans to make timely repayment of such loans.</text>
</subsection><subsection id="H73238C57CDA649B599069A58FE6A07F8"><enum>(b)</enum><header>Public policy
goals</header><text display-inline="yes-display-inline">The public policy goals
referred to in subsection (a) are the provision of adequate access to capital
to assist small business concerns with one or more of the following:</text>
<paragraph id="H38A5A6E2DE67457CB078B32F894A1650"><enum>(1)</enum><text>Offsetting the
costs to such concerns resulting from the imposition of a surtax on the income
of small business owners.</text>
</paragraph><paragraph id="H3526800A62264270BB99904237203A3B"><enum>(2)</enum><text display-inline="yes-display-inline">Offsetting the costs to such concerns
resulting from the enactment of a requirement that such concerns offer health
care of a minimum acceptable coverage level.</text>
</paragraph><paragraph id="H66466413B30446E99DC663795FAC1AFD"><enum>(3)</enum><text display-inline="yes-display-inline">Offsetting the costs to such concerns
resulting from an increase in the marginal tax rates of small business
owners.</text>
</paragraph><paragraph id="H8A029A83259C4D1BAEAFB3809AD46258"><enum>(4)</enum><text display-inline="yes-display-inline">Offsetting the reduction in capital
available for such concerns resulting from an increase in the tax on capital
gains.</text>
</paragraph><paragraph id="H4A2A5494002140BDBC8EE810EB8FEB1C"><enum>(5)</enum><text display-inline="yes-display-inline">Offsetting the reduction in capital
available for such concerns resulting from an increase in the taxes on carried
interest.</text>
</paragraph><paragraph id="H6F6E845605724936B07E8839757FEE12"><enum>(6)</enum><text>Offsetting the
increased energy costs for such concerns resulting from the enactment of a cap
on carbon dioxide emissions.</text>
</paragraph><paragraph id="HC7C97E420466450ABA20815859EA0D3A"><enum>(7)</enum><text display-inline="yes-display-inline">Offsetting the increased costs to such
concerns resulting from a change in Federal law that allows unions to be
organized through a card check process.</text>
</paragraph><paragraph id="H5C65F435B1764910BBCA665E234F63E7"><enum>(8)</enum><text display-inline="yes-display-inline">Offsetting the reduction in capital
available for such concerns resulting from new regulations on financial
products.</text>
</paragraph><paragraph id="H5F8B05911AD243EF9BB0E42E8E40C151"><enum>(9)</enum><text display-inline="yes-display-inline">Offsetting the increased costs to such
concerns resulting from the imposition of net neutrality rules on the
Internet.</text>
</paragraph></subsection><subsection id="HD94DF25FEDE84BA0AAAE357FF0E394B1"><enum>(c)</enum><header>Use of
Study</header><text display-inline="yes-display-inline">Not later than 180 days
after the date of the enactment of this Act, the Administrator of the Small
Business Administration shall submit to Congress a report on the results of the
study conducted under subsection (a) and shall use such results to evaluate and
adjust, as appropriate, the potential credit risk to the Government through the
provision of loans under programs established or amended under this Act.</text>
</subsection></section>
Passed the House of
Representatives October 29, 2009.
Lorraine C. Miller,
Clerk