111th CONGRESS
2d Session
H.R. 5297
In the Senate of the United
States,
September 16, 2010.
Amendment:
That the bill from the House of Representatives
(H.R. 5297) entitled An Act to create the Small Business Lending Fund
Program to direct the Secretary of the Treasury to make capital investments in
eligible institutions in order to increase the availability of credit for small
businesses, to amend the Internal Revenue Code of 1986 to provide tax
incentives for small business job creation, and for other purposes.
, do
pass with the following
Strike all after
the enacting clause and insert the
following:
1.This Act may be cited as the
Small Business Jobs Act of
2010
.
2.The table of contents
for this Act is as follows:
Sec. 1. Short
title.
Sec. 2. Table of
contents.
TITLE I—Small
businesses
Sec. 1001.
Definitions.
Subtitle A—Small business
access to credit
Sec. 1101. Short
title.
PART I—Next Steps for Main Street
Credit Availability
Sec. 1111. Section
7(a) business loans.
Sec. 1112. Maximum loan amounts
under 504 program.
Sec. 1113. Maximum loan limits
under microloan program.
Sec. 1114. Loan guarantee
enhancement extensions.
Sec. 1115. New Markets Venture
Capital company investment limitations.
Sec. 1116. Alternative size
standards.
Sec. 1117. Sale of
7(a) loans in secondary market.
Sec. 1118. Online lending
platform.
Sec. 1119. SBA Secondary Market
Guarantee Authority.
PART II—Small Business Access to
Capital
Sec. 1122. Low-interest
refinancing under the local development business loan program.
PART III—Other matters
Sec. 1131. Small business
intermediary lending pilot program.
Sec. 1132. Public policy
goals.
Sec. 1133. Floor plan pilot
program extension.
Sec. 1134. Guarantees for bonds
and notes issued for community or economic development purposes.
Sec. 1135. Temporary express
loan enhancement.
Sec. 1136. Prohibition on using
TARP funds or tax increases.
Subtitle B—Small business
trade and exporting
Sec. 1201. Short
title.
Sec. 1202.
Definitions.
Sec. 1203. Office of
International Trade.
Sec. 1204. Duties of the Office
of International Trade.
Sec. 1205. Export assistance
centers.
Sec. 1206. International trade
finance programs.
Sec. 1207. State Trade and
Export Promotion Grant Program.
Sec. 1208. Rural export
promotion.
Sec. 1209. International trade
cooperation by small business development centers.
Subtitle C—Small business
contracting
PART I—Contract
bundling
Sec. 1311. Small Business
Act.
Sec. 1312. Leadership and
oversight.
Sec. 1313. Consolidation of
contract requirements.
Sec. 1314. Small business teams
pilot program.
PART II—Subcontracting
integrity
Sec. 1321. Subcontracting
misrepresentations.
Sec. 1322. Small business
subcontracting improvements.
PART III—Acquisition
process
Sec. 1331. Reservation of prime
contract awards for small businesses.
Sec. 1332. Micro-purchase
guidelines.
Sec. 1333. Agency
accountability.
Sec. 1334. Payment of
subcontractors.
Sec. 1335. Repeal of Small
Business Competitiveness Demonstration Program.
PART IV—Small business size and
status integrity
Sec. 1341. Policy and
presumptions.
Sec. 1342. Annual
certification.
Sec. 1343. Training for
contracting and enforcement personnel.
Sec. 1344. Updated size
standards.
Sec. 1345. Study and report on
the mentor-protege program.
Sec. 1346. Contracting goals
reports.
Sec. 1347. Small business
contracting parity.
Subtitle D—Small business
management and counseling assistance
Sec. 1401. Matching
requirements under small business programs.
Sec. 1402. Grants for
SBDCs.
Subtitle E—Disaster loan
improvement
Sec. 1501. Aquaculture business
disaster assistance.
Subtitle F—Small Business
Regulatory Relief
Sec. 1601. Requirements
providing for more detailed analyses.
Sec. 1602. Office of
advocacy.
Subtitle G—Appropriations
provisions
Sec. 1701. Salaries and
expenses.
Sec. 1702. Business loans
program account.
Sec. 1703. Community
Development Financial Institutions Fund program account.
Sec. 1704. Small business loan guarantee
enhancement extensions.
TITLE II—Tax
provisions
Sec. 2001. Short
title.
Subtitle A—Small business
relief
PART I—Providing access to
capital
Sec. 2011. Temporary exclusion
of 100 percent of gain on certain small business stock.
Sec. 2012. General business
credits of eligible small businesses for 2010 carried back 5 years.
Sec. 2013. General business
credits of eligible small businesses in 2010 not subject to alternative minimum
tax.
Sec. 2014. Temporary reduction
in recognition period for built-in gains tax.
PART II—Encouraging
investment
Sec. 2021. Increased expensing
limitations for 2010 and 2011; certain real property treated as section 179
property.
Sec. 2022. Additional
first-year depreciation for 50 percent of the basis of certain qualified
property.
Sec. 2023. Special rule for
long-term contract accounting.
PART III—Promoting
entrepreneurship
Sec. 2031. Increase in amount
allowed as deduction for start-up expenditures in 2010.
Sec. 2032. Authorization of
appropriations for the United States Trade Representative to develop market
access opportunities for United States small- and medium-sized businesses and
to enforce trade agreements.
PART IV—Promoting small business
fairness
Sec. 2041. Limitation on
penalty for failure to disclose reportable transactions based on resulting tax
benefits.
Sec. 2042. Deduction for health
insurance costs in computing self-employment taxes in 2010.
Sec. 2043. Removal of cellular
telephones and similar telecommunications equipment from listed
property.
Subtitle B—Revenue
provisions
PART I—Reducing the tax
gap
Sec. 2101. Information
reporting for rental property expense payments.
Sec. 2102. Increase in
information return penalties.
Sec. 2103. Report on tax
shelter penalties and certain other enforcement actions.
Sec. 2104. Application of
continuous levy to tax liabilities of certain Federal contractors.
PART II—Promoting retirement
preparation
Sec. 2111. Participants in
government section 457 plans allowed to treat
elective deferrals as Roth contributions.
Sec. 2112. Rollovers from
elective deferral plans to designated Roth accounts.
Sec. 2113. Special rules for
annuities received from only a portion of a contract.
PART III—Closing unintended
loopholes
Sec. 2121. Crude tall oil
ineligible for cellulosic biofuel producer credit.
Sec. 2122. Source rules for
income on guarantees.
PART IV—Time for payment of
corporate estimated taxes
Sec. 2131. Time for payment of
corporate estimated taxes.
TITLE III—State Small Business
Credit Initiative
Sec. 3001. Short
title.
Sec. 3002.
Definitions.
Sec. 3003. Federal funds
allocated to States.
Sec. 3004. Approving States for
participation.
Sec. 3005. Approving State
capital access programs.
Sec. 3006. Approving collateral
support and other innovative credit access and guarantee initiatives for small
businesses and manufacturers.
Sec. 3007. Reports.
Sec. 3008. Remedies for State
program termination or failures.
Sec. 3009. Implementation and
administration.
Sec. 3010.
Regulations.
Sec. 3011. Oversight and
audits.
TITLE IV—Additional small
business provisions
Subtitle A—Small Business
Lending Fund
Sec. 4101. Purpose.
Sec. 4102.
Definitions.
Sec. 4103. Small business
lending fund.
Sec. 4104. Additional
authorities of the Secretary.
Sec. 4105.
Considerations.
Sec. 4106. Reports.
Sec. 4107. Oversight and
audits.
Sec. 4108. Credit reform;
funding.
Sec. 4109. Termination and
continuation of authorities.
Sec. 4110. Preservation of
authority.
Sec. 4111.
Assurances.
Sec. 4112. Study and report
with respect to women-owned, veteran-owned, and minority-owned
businesses.
Sec. 4113. Sense of
Congress.
Subtitle B—Other
provisions
PART I—Small business export
promotion initiatives
Sec. 4221. Short
title.
Sec. 4222. Global business
development and promotion activities of the Department of Commerce.
Sec. 4223. Additional funding
to improve access to global markets for rural businesses.
Sec. 4224. Additional funding
for the ExporTech program.
Sec. 4225. Additional funding
for the market development cooperator program of the Department of
Commerce.
Sec. 4226. Hollings
Manufacturing Partnership Program; Technology Innovation Program.
Sec. 4227. Sense of the Senate
concerning Federal collaboration with States on export promotion
issues.
Sec. 4228. Report on tariff and
nontariff barriers.
PART II—Medicare fraud
Sec. 4241. Use of predictive
modeling and other analytics technologies to identify and prevent waste, fraud,
and abuse in the Medicare fee-for-service program.
TITLE V—Budgetary
provisions
Sec. 5001. Determination of
budgetary effects.
<enum>I</enum><header>Small businesses</header>
<section id="id4255AC42A5FD4CDDBECE055B323FB7FD"><enum>1001.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idAE20EBC72CAA424E823A8A3BA6988061"><enum>(1)</enum><text display-inline="yes-display-inline">the terms <term>Administration</term> and
<term>Administrator</term> mean the Small Business Administration and the
Administrator thereof, respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id346C0BAD570B40908514D4F4AE6A7FB5"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>small business
concern</term> has the meaning given that term under section 3 of the Small
Business Act (15 U.S.C. 632).</text>
</paragraph></section><subtitle id="idC5F6276B18754E6480433E61F7A710D5"><enum>A</enum><header>Small business access to
credit</header>
<section id="id0422E35937574023816F893ED28C7042" section-type="subsequent-section"><enum>1101.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote>Small Business Job Creation and Access to Capital Act of
2010</quote>.</text>
</section><part id="idDE515F3C263D4077BE38DECD612F0209"><enum>I</enum><header>Next Steps for Main
Street Credit Availability</header>
<section id="idEA9773BC5559486BB72F1BEB6F04AB90"><enum>1111.</enum><header>Section
7<enum-in-header>(a)</enum-in-header> business loans</header>
<subsection id="id9D6F0A9777E64C7FB82E22B62FB427C9"><enum>(a)</enum><header>Amendment</header><text display-inline="yes-display-inline">Section 7(a) of the Small Business Act (15
U.S.C. 636(a)) is amended—</text>
<paragraph id="id98B4A31A97BD479DBCF36BCC403E85A8"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)(A)—</text>
<subparagraph id="id8B39AC2546B5413F9FDDE96B21442679"><enum>(A)</enum><text>in clause (i), by
striking <quote>75 percent</quote> and inserting <quote>90 percent</quote>;
and</text>
</subparagraph><subparagraph id="id6CD37CFF408E4A33B1F27A579445C071"><enum>(B)</enum><text>in clause (ii), by
striking <quote>85 percent</quote> and inserting <quote>90 percent</quote>;
and</text>
</subparagraph></paragraph><paragraph id="id2B91F325AD1D4CB4B9BF6B018C629E57"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3)(A), by striking
<quote>$1,500,000 (or if the gross loan amount would exceed $2,000,000</quote>
and inserting <quote>$4,500,000 (or if the gross loan amount would exceed
$5,000,000</quote>.</text>
</paragraph></subsection><subsection id="id0CA3AEE729F94C98A7A0CA6626165C38"><enum>(b)</enum><header>Prospective
repeal</header><text display-inline="yes-display-inline">Effective January 1,
2011, section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is
amended—</text>
<paragraph id="idAC91F173036B4422BD60DEB1528AE699"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)(A)—</text>
<subparagraph id="id8CA5A28A25204FB7B577362D662D42E2"><enum>(A)</enum><text>in clause (i), by
striking <quote>90 percent</quote> and inserting <quote>75 percent</quote>;
and</text>
</subparagraph><subparagraph id="id3DE625B05318437CA11F220FE212A1E7"><enum>(B)</enum><text>in clause (ii), by
striking <quote>90 percent</quote> and inserting <quote>85 percent</quote>;
and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id52D68E75A69E406EB7EC7FAD464483EC"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (3)(A), by striking
<quote>$4,500,000</quote> and inserting <quote>$3,750,000</quote>.</text>
</paragraph></subsection></section><section id="id01C696B14E9841D8A2DC28BCBCB20EBB"><enum>1112.</enum><header>Maximum loan amounts
under 504 program</header><text display-inline="no-display-inline">Section
502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is
amended—</text>
<paragraph id="idF759E346C9324FECA7B487357A077353"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (i), by striking
<quote>$1,500,000</quote> and inserting <quote>$5,000,000</quote>;</text>
</paragraph><paragraph id="id3C72C7A0D93B445B88FEC8F4D6B8C411"><enum>(2)</enum><text>in clause (ii), by
striking <quote>$2,000,000</quote> and inserting
<quote>$5,000,000</quote>;</text>
</paragraph><paragraph id="id2EA89A4CE5F8400AAB56E48780DBCF88"><enum>(3)</enum><text>in clause (iii), by
striking <quote>$4,000,000</quote> and inserting
<quote>$5,500,000</quote>;</text>
</paragraph><paragraph id="ID71947a710a514bd5a80ba15a0ee90869"><enum>(4)</enum><text>in clause (iv), by
striking <quote>$4,000,000</quote> and inserting <quote>$5,500,000</quote>;
and</text>
</paragraph><paragraph id="IDa5bc6829306c454fb8de8b1e15c212fd"><enum>(5)</enum><text>in clause (v), by
striking <quote>$4,000,000</quote> and inserting
<quote>$5,500,000</quote>.</text>
</paragraph></section><section id="idC2C46E26A65F48F7A92172C7CC2859FF"><enum>1113.</enum><header>Maximum loan limits
under microloan program</header><text display-inline="no-display-inline">Section 7(m) of the Small Business Act (15
U.S.C. 636(m)) is amended—</text>
<paragraph id="id4D5581257B744A929B004CC1340F0DE5"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1)(B)(iii), by striking
<quote>$35,000</quote> and inserting <quote>$50,000</quote>;</text>
</paragraph><paragraph id="id266BB2655C4D401C93C03A063D71D725"><enum>(2)</enum><text>in paragraph (3)—</text>
<subparagraph id="idD62C485A29394E97A78BB09B3C5FE514"><enum>(A)</enum><text>in subparagraph (C), by
striking <quote>$3,500,000</quote> and inserting <quote>$5,000,000</quote>;
and</text>
</subparagraph><subparagraph id="idD004ED5BAD024879AD704115CB8FA4F8"><enum>(B)</enum><text>in subparagraph (E), by
striking <quote>$35,000</quote> each place that term appears and inserting
<quote>$50,000</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE3D30B0546ED42F5AABE37E561D06D61"><enum>(3)</enum><text>in paragraph (11)(B), by
striking <quote>$35,000</quote> and inserting <quote>$50,000</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id1B24AFD5858E45B59660C00BA949E043"><enum>1114.</enum><header>Loan guarantee
enhancement extensions</header>
<subsection commented="no" display-inline="no-display-inline" id="idFB577CB60D5C4E1EB801611B81DF8E12"><enum>(a)</enum><header>Fees</header><text display-inline="yes-display-inline">Section 501 of the American Recovery and
Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 151) is amended by
striking <quote>September 30, 2010</quote> each place that term appears and
inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="id22B56D3763414535961206CC35B5307F"><enum>(b)</enum><header>Loan
guarantees</header><text>Section 502(f) of division A of the American Recovery
and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 153) is amended by
striking <quote>May 31, 2010</quote> and inserting <quote>December 31,
2010</quote>.</text>
</subsection></section><section id="id231F4A1F9761444793D1F59DFA44E153"><enum>1115.</enum><header>New Markets Venture
Capital company investment limitations</header><text display-inline="no-display-inline">Section 355 of the Small Business Investment
Act of 1958 (15 U.S.C. 689d) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id384E49EEBFAC408281E8170CC0583BBC" reported-display-style="italic" style="OLC">
<subsection id="ID9b8c85d6ae1b4142a935fc84a5782ac1"><enum>(e)</enum><header>Investment
limitations</header>
<paragraph id="idD4D7436890814051B176BD5940244C75"><enum>(1)</enum><header>Definition</header><text>In
this subsection, the term <term>covered New Markets Venture Capital
company</term> means a New Markets Venture Capital company—</text>
<subparagraph id="id9C10B6BADA7642288B46BC07874C95C3"><enum>(A)</enum><text>granted final approval by
the Administrator under section 354(e) on or after March 1, 2002; and</text>
</subparagraph><subparagraph id="id9A4D82DC26AF4CAC9CD3F2D70B1A001F"><enum>(B)</enum><text>that has obtained a
financing from the Administrator.</text>
</subparagraph></paragraph><paragraph id="id52009A35758A4A4A96A39854126F02D1"><enum>(2)</enum><header>Limitation</header><text>Except
to the extent approved by the Administrator, a covered New Markets Venture
Capital company may not acquire or issue commitments for securities under this
title for any single enterprise in an aggregate amount equal to more than 10
percent of the sum of—</text>
<subparagraph id="ID4dfe85d525f94377b205c77905c6a5a6"><enum>(A)</enum><text>the regulatory capital of
the covered New Markets Venture Capital company; and</text>
</subparagraph><subparagraph id="ID5db39e98d08e4f7eb08752b4d91ff038"><enum>(B)</enum><text>the total amount of
leverage projected in the participation agreement of the covered New Markets
Venture
Capital.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID2C6D8A1766D5487B9F37D10195EF317F"><enum>1116.</enum><header>Alternative size
standards</header><text display-inline="no-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 changed="added" display-inline="no-display-inline" id="IDDB924E9645C54B089E843E886BB9507D" reported-display-style="italic" style="OLC">
<paragraph id="IDB88E42493A284BB3A88E28989ED2FE13" indent="up1"><enum>(5)</enum><header>Alternative size
standard</header>
<subparagraph id="IDD918AD720A5B45D184BB8EA3D18935A8"><enum>(A)</enum><header>In
general</header><text>The Administrator shall establish an alternative size
standard for applicants for business loans under section 7(a) and applicants
for development company loans under title V of the Small Business Investment
Act of 1958 (15 U.S.C. 695 et seq.), that uses maximum tangible net worth and
average net income as an alternative to the use of industry standards.</text>
</subparagraph><subparagraph id="IDF56EE87140564DDD9D1D56F59EE369D6"><enum>(B)</enum><header>Interim
rule</header><text>Until the date on which the alternative size standard
established under subparagraph (A) is in effect, an applicant for a business
loan under section 7(a) or an applicant for a development company loan under
title V of the Small Business Investment Act of 1958 may be eligible for such a
loan if—</text>
<clause id="id3EBCBC4DA6964D06AA405053CB101751"><enum>(i)</enum><text>the
maximum tangible net worth of the applicant is not more than $15,000,000;
and</text>
</clause><clause id="id5CE0C207E4B344838F664985EC3A9453"><enum>(ii)</enum><text>the average net income
after Federal income taxes (excluding any carry-over losses) of the applicant
for the 2 full fiscal years before the date of the application is not more than
$5,000,000.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="ID0efa98abeb54415e9505b0b88e49e46e"><enum>1117.</enum><header>Sale of
7<enum-in-header>(a)</enum-in-header> loans in secondary market</header><text display-inline="no-display-inline">Section 5(g) of the Small Business Act (15
U.S.C. 634(g)) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC929505279254299887D00D28B765A59" reported-display-style="italic" style="OLC">
<paragraph id="ID5129017c6065460b81fbf7cfe923993f" indent="up1"><enum>(6)</enum><text>If
the amount of the guaranteed portion of any loan under section 7(a) is more
than $500,000, the Administrator shall, upon request of a pool assembler,
divide the loan guarantee into increments of $500,000 and 1 increment of any
remaining amount less than $500,000, in order to permit the maximum amount of
any loan in a pool to be not more than $500,000. Only 1 increment of any loan
guarantee divided under this paragraph may be included in the same pool.
Increments of loan guarantees to different borrowers that are divided under
this paragraph may be included in the same
pool.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idD11D3C54172146F481DAB8D0FB02D3D6"><enum>1118.</enum><header>Online lending
platform</header><text display-inline="no-display-inline">It is the sense of
Congress that the Administrator of the Small Business Administration should
establish a website that—</text>
<paragraph id="idA415D6B09E97472B9C1BAF91F495C498"><enum>(1)</enum><text display-inline="yes-display-inline">lists each lender that makes loans
guaranteed by the Small Business Administration and provides information about
the loan rates of each such lender; and</text>
</paragraph><paragraph id="id47F43C11181249638E54E54D8AE9ED2F"><enum>(2)</enum><text display-inline="yes-display-inline">allows prospective borrowers to compare
rates on loans guaranteed by the Small Business Administration.</text>
</paragraph></section><section id="idEFDEE059A8B142DBB4F3509A8ED25528"><enum>1119.</enum><header>SBA Secondary Market
Guarantee Authority</header><text display-inline="no-display-inline">Section
503(f) of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111–5; 123 Stat. 155) is amended by striking <quote>on the date 2
years after the date of enactment of this section</quote> and inserting
<quote>2 years after the date of the first sale of a pool of first lien
position 504 loans guaranteed under this section to a third-party
investor</quote>.</text>
</section></part><part id="idFAE64C4A6ED4440C8F361CF182D14D55"><enum>II</enum><header>Small Business Access to
Capital</header>
<section id="idA9F9FAC007444EC7A303C340D3A6C021"><enum>1122.</enum><header>Low-interest
refinancing under the local development business loan program</header>
<subsection id="id8C379D245B3D453994059F3FCCF499EB"><enum>(a)</enum><header>Refinancing</header><text display-inline="yes-display-inline">Section 502(7) of the Small Business
Investment Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5BE17E12E5114AADA3F5A39F4A0EC14F" reported-display-style="italic" style="OLC">
<subparagraph id="id45A5CA0045EC4C94AAA3B9E7980FF9B3"><enum>(C)</enum><header>Refinancing not
involving expansions</header>
<clause id="idB9C636158B1A4AC399D9E931BB5F56FF"><enum>(i)</enum><header>Definitions</header><text>In
this subparagraph—</text>
<subclause id="idEBD8460443454E3D81585C3EC68494FD"><enum>(I)</enum><text>the term
<term>borrower</term> means a small business concern that submits an
application to a development company for financing under this
subparagraph;</text>
</subclause><subclause id="id590064BF6F5A40119BAD00E111D346F1"><enum>(II)</enum><text>the term <term>eligible
fixed asset</term> means tangible property relating to which the Administrator
may provide financing under this section; and</text>
</subclause><subclause id="id3999E864FC2E4FFA991E3BD8170364C1"><enum>(III)</enum><text>the term
<term>qualified debt</term> means indebtedness—</text>
<item id="idD8028166335643C89F5543376A94853B"><enum>(aa)</enum><text>that—</text>
<subitem id="idCE1DCA0823564C49BFB9AFD531E3302F"><enum>(AA)</enum><text>was incurred not less
than 2 years before the date of the application for assistance under this
subparagraph;</text>
</subitem><subitem id="idEB3CA8D761114D1EAA52977D197E2539"><enum>(BB)</enum><text>is a commercial
loan;</text>
</subitem><subitem id="id188D61B83A284DB0920CE38781809994"><enum>(CC)</enum><text>is not subject to a
guarantee by a Federal agency;</text>
</subitem><subitem id="idC25638F8798D423F9AD986086A506C3C"><enum>(DD)</enum><text>the proceeds of which
were used to acquire an eligible fixed asset;</text>
</subitem><subitem id="idFC6A0C1037094AE7AFEA25143D3875EE"><enum>(EE)</enum><text>was incurred for the
benefit of the small business concern; and</text>
</subitem><subitem id="id62AB2C39582A43D189E72ED5CA38EE58"><enum>(FF)</enum><text>is collateralized by
eligible fixed assets; and</text>
</subitem></item><item id="id54570E8A496C4F538C029D6F2E932772"><enum>(bb)</enum><text>for which the borrower
has been current on all payments for not less than 1 year before the date of
the application.</text>
</item></subclause></clause><clause id="ID5e57b42b789546ac904214133c0fb7db"><enum>(ii)</enum><header>Authority</header><text>A
project that does not involve the expansion of a small business concern may
include the refinancing of qualified debt if—</text>
<subclause id="ID052b2c072c844838ab1c076f386a3ae2"><enum>(I)</enum><text>the amount of the
financing is not more than 90 percent of the value of the collateral for the
financing, except that, if the appraised value of the eligible fixed assets
serving as collateral for the financing is less than the amount equal to 125
percent of the amount of the financing, the borrower may provide additional
cash or other collateral to eliminate any deficiency;</text>
</subclause><subclause id="IDe1499e706e6b4c929ccb2fe58f779a92"><enum>(II)</enum><text>the borrower has been in
operation for all of the 2-year period ending on the date of the loan;
and</text>
</subclause><subclause id="ID4800f2c63cf540fea60fcfb62f11f27a"><enum>(III)</enum><text>for a financing for
which the Administrator determines there will be an additional cost
attributable to the refinancing of the qualified debt, the borrower agrees to
pay a fee in an amount equal to the anticipated additional cost.</text>
</subclause></clause><clause id="ID4d84e3854e2e4246ad5f46f894099654"><enum>(iii)</enum><header>Financing for
business expenses</header>
<subclause id="id3C4E00CBF64A4BD09A6C8B628B8EE9DE"><enum>(I)</enum><header>Financing for business
expenses</header><text>The Administrator may provide financing to a borrower
that receives financing that includes a refinancing of qualified debt under
clause (ii), in addition to the refinancing under clause (ii), to be used
solely for the payment of business expenses.</text>
</subclause><subclause id="idD3FE978116934ECBB9D24E30652D8A26"><enum>(II)</enum><header>Application for
financing</header><text>An application for financing under subclause (I) shall
include—</text>
<item id="id393E7B2E33124212812D22FAC2AFABDB"><enum>(aa)</enum><text>a specific description
of the expenses for which the additional financing is requested; and</text>
</item><item id="idF9943650B1834AF49B10E9436D207481"><enum>(bb)</enum><text>an itemization of the
amount of each expense.</text>
</item></subclause><subclause id="id2AF09E16EDAC4EB5B35C08E53E42E829"><enum>(III)</enum><header>Condition on
additional financing</header><text>A borrower may not use any part of the
financing under this clause for non-business purposes.</text>
</subclause></clause><clause id="ID3381e0918d6e4555ab981fc80d5bdc0a"><enum>(iv)</enum><header>Loans based on
jobs</header>
<subclause id="id2E7CC28D29D946FE8C5E2184EF0C6EFB"><enum>(I)</enum><header>Job creation and
retention goals</header>
<item id="id41BC5CE92A864EE2BFA735523A99CEF1"><enum>(aa)</enum><header>In
general</header><text>The Administrator may provide financing under this
subparagraph for a borrower that meets the job creation goals under subsection
(d) or (e) of section 501.</text>
</item><item id="idF8FBB113ACA04AB5917441F92459E86D"><enum>(bb)</enum><header>Alternate job
retention goal</header><text>The Administrator may provide financing under this
subparagraph to a borrower that does not meet the goals described in item (aa)
in an amount that is not more than the product obtained by multiplying the
number of employees of the borrower by $65,000.</text>
</item></subclause><subclause id="idE4F1F6D635A84EC2AB75929F79410AAA"><enum>(II)</enum><header>Number of
employees</header><text>For purposes of subclause (I), the number of employees
of a borrower is equal to the sum of—</text>
<item id="idC10FBFA67D594806BEE29EBA426DFE4C"><enum>(aa)</enum><text>the number of full-time
employees of the borrower on the date on which the borrower applies for a loan
under this subparagraph; and</text>
</item><item id="idCB0C4E8FC1644A748036E5B5DE10050E"><enum>(bb)</enum><text>the product obtained by
multiplying—</text>
<subitem id="idC09BC13AD1384C3985BC576B78A10FF5"><enum>(AA)</enum><text>the number of part-time
employees of the borrower on the date on which the borrower applies for a loan
under this subparagraph; by</text>
</subitem><subitem id="id49EF7C4DCB9541B3B83B21D5B253A43B"><enum>(BB)</enum><text>the quotient obtained by
dividing the average number of hours each part time employee of the borrower
works each week by 40.</text>
</subitem></item></subclause></clause><clause id="ID3992ff78687d4149ac1ed746173411e6"><enum>(v)</enum><header>Nondelegation</header><text>Notwithstanding
section 508(e), the Administrator may not permit a premier certified lender to
approve or disapprove an application for assistance under this
subparagraph.</text>
</clause><clause id="ID5e1210fad43c4ab08e952841f3d7d7ec"><enum>(vi)</enum><header>Total amount of
loans</header><text>The Administrator may provide not more than a total of
$7,500,000,000 of financing under this subparagraph for each fiscal
year.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idD8C52A3951F2451EA7FC41B28C4AA1D9"><enum>(b)</enum><header>Prospective
repeal</header><text>Effective 2 years after the date of enactment of this Act,
section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7))
is amended by striking subparagraph (C).</text>
</subsection><subsection id="idF356B3E2240C472BAA5F4FA04E208454"><enum>(c)</enum><header>Technical
correction</header><text>Section 502(2)(A)(i) of the Small Business Investment
Act of 1958 (15 U.S.C. 696(2)(A)(i)) is amended by striking <quote>subparagraph
(B) or (C)</quote> and inserting <quote>clause (ii), (iii), (iv), or
(v)</quote>.</text>
</subsection></section></part><part id="id37D0AF1BF4EE48D099DCABE2D410CF33"><enum>III</enum><header>Other matters</header>
<section id="IDe821587423894790bcff3b374b6a1e54"><enum>1131.</enum><header>Small business
intermediary lending pilot program</header>
<subsection id="IDc36da0e32dae4d1db97e1f36dd472fb2"><enum>(a)</enum><header>In
general</header><text>Section 7 of the Small Business Act (15 U.S.C. 636) is
amended by striking subsection (l) and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE258B03C9F3A494A87E6BDBDED96ED66" reported-display-style="italic" style="OLC">
<subsection id="ID57cce03cef914827b93d5998cc2bc3b9"><enum>(l)</enum><header>Small Business
Intermediary Lending Pilot Program</header>
<paragraph id="ID6891c3e30f4648eebdb70e952a364dba"><enum>(1)</enum><header>Definitions</header><text>In
this subsection—</text>
<subparagraph id="ID7c4a206f83974ded94186df5d4a008a9"><enum>(A)</enum><text>the term <term>eligible
intermediary</term>—</text>
<clause id="idB6EEBEE7318C4652A2F852E031AF1BFD"><enum>(i)</enum><text>means a private,
nonprofit entity that—</text>
<subclause id="idC62D7D9A6ADD4110A510B2F1CC23EAF5"><enum>(I)</enum><text>seeks or has been awarded
a loan from the Administrator to make loans to small business concerns under
this subsection; and</text>
</subclause><subclause id="id9F39CE714775436B9693355E42CFCBE7"><enum>(II)</enum><text>has not less than 1 year
of experience making loans to startup, newly established, or growing small
business concerns; and</text>
</subclause></clause><clause id="id633707E349174D32BB7C07CC4A3C5925"><enum>(ii)</enum><text>includes—</text>
<subclause id="ID9c25f21cd17d40e98a3522292c34d4a0"><enum>(I)</enum><text>a private, nonprofit
community development corporation;</text>
</subclause><subclause id="IDe75c7d34b8ca41d481a0fe5ea8a39632"><enum>(II)</enum><text>a consortium of private,
nonprofit organizations or nonprofit community development corporations;
and</text>
</subclause><subclause id="IDec5eb79744ca40da95e5351e771d47e0"><enum>(III)</enum><text>an agency of or
nonprofit entity established by a Native American Tribal Government; and</text>
</subclause></clause></subparagraph><subparagraph id="ID2c3c8130a638409b9c8650ee8d689bb0"><enum>(B)</enum><text>the term
<term>Program</term> means the small business intermediary lending pilot
program established under paragraph (2).</text>
</subparagraph></paragraph><paragraph id="ID70c693a799cd4a22a2dcdba15c3c9bd3"><enum>(2)</enum><header>Establishment</header><text>There
is established a 3-year small business intermediary lending pilot program,
under which the Administrator may make direct loans to eligible intermediaries,
for the purpose of making loans to startup, newly established, and growing
small business concerns.</text>
</paragraph><paragraph id="ID07e4662efbd9478eafd332f92f86a1aa"><enum>(3)</enum><header>Purposes</header><text>The
purposes of the Program are—</text>
<subparagraph id="ID9f8a38f8fa2b43df9fe9c89600e466e4"><enum>(A)</enum><text>to assist small business
concerns in areas suffering from a lack of credit due to poor economic
conditions or changes in the financial market; and</text>
</subparagraph><subparagraph id="ID7291a155af404e8592bed28394d6605a"><enum>(B)</enum><text>to establish a loan
program under which the Administrator may provide loans to eligible
intermediaries to enable the eligible intermediaries to provide loans to
startup, newly established, and growing small business concerns for working
capital, real estate, or the acquisition of materials, supplies, or
equipment.</text>
</subparagraph></paragraph><paragraph id="ID2110f358c3be48d68feadaeeb7eee8b8"><enum>(4)</enum><header>Loans to eligible
intermediaries</header>
<subparagraph id="ID108b64c5362b4d11bd13a1203a13d249"><enum>(A)</enum><header>Application</header><text>Each
eligible intermediary desiring a loan under this subsection shall submit an
application to the Administrator that describes—</text>
<clause id="ID2e2c7948adad4cf5bf7d85647a71cea8"><enum>(i)</enum><text>the type of small
business concerns to be assisted;</text>
</clause><clause id="ID358f57054a4b422a9131dba45249d7ce"><enum>(ii)</enum><text>the size and range of
loans to be made;</text>
</clause><clause id="IDd7de2aaafba541c59f6a485e1cd3ea08"><enum>(iii)</enum><text>the interest rate and
terms of loans to be made;</text>
</clause><clause id="IDd6a0a2a411ed48cc9359c4fb5fe5ec65"><enum>(iv)</enum><text>the geographic area to
be served and the economic, poverty, and unemployment characteristics of the
area;</text>
</clause><clause id="IDaecf92a2a92548efbc12e45d494dff91"><enum>(v)</enum><text>the status of small
business concerns in the area to be served and an analysis of the availability
of credit; and</text>
</clause><clause id="IDeaf3e9a31f704ac0a89c83d73c48bbbc"><enum>(vi)</enum><text>the qualifications of
the applicant to carry out this subsection.</text>
</clause></subparagraph><subparagraph id="ID0a9fbf403323454b9d7c09ab4e1da950"><enum>(B)</enum><header>Loan
limits</header><text>No loan may be made to an eligible intermediary under this
subsection if the total amount outstanding and committed to the eligible
intermediary by the Administrator would, as a result of such loan, exceed
$1,000,000 during the participation of the eligible intermediary in the
Program.</text>
</subparagraph><subparagraph id="IDdb35d386f6f240a0bf84b48271c5bdef"><enum>(C)</enum><header>Loan
duration</header><text>Loans made by the Administrator under this subsection
shall be for a term of 20 years.</text>
</subparagraph><subparagraph id="ID78436c04d6624cc49e5585c1529e1c8c"><enum>(D)</enum><header>Applicable interest
rates</header><text>Loans made by the Administrator to an eligible intermediary
under the Program shall bear an annual interest rate equal to 1.00
percent.</text>
</subparagraph><subparagraph id="ID3a1dc4c2f1cf4e13b23ab70c84c6de68"><enum>(E)</enum><header>Fees;
collateral</header><text>The Administrator may not charge any fees or require
collateral with respect to any loan made to an eligible intermediary under this
subsection.</text>
</subparagraph><subparagraph id="IDd0784c915d464a6983f89828e56a716e"><enum>(F)</enum><header>Delayed
payments</header><text>The Administrator shall not require the repayment of
principal or interest on a loan made to an eligible intermediary under the
Program during the 2-year period beginning on the date of the initial
disbursement of funds under that loan.</text>
</subparagraph><subparagraph id="id0CF5EEDB103D446786D6270E7A044BE7"><enum>(G)</enum><header>Maximum participants
and amounts</header><text>During each of fiscal years 2011, 2012, and 2013, the
Administrator may make loans under the Program—</text>
<clause id="id64AB96AFF10746E1855618D726BD6915"><enum>(i)</enum><text>to not more than 20
eligible intermediaries; and</text>
</clause><clause id="id73A59A7D707842FFBA3C98EB909EAEF8"><enum>(ii)</enum><text>in a total amount of not
more than $20,000,000.</text>
</clause></subparagraph></paragraph><paragraph id="ID5244b6d1242a429181ef4af0129b6125"><enum>(5)</enum><header>Loans to small business
concerns</header>
<subparagraph id="IDf726f92c47e04beb8659636907ba87b2"><enum>(A)</enum><header>In
general</header><text>The Administrator, through an eligible intermediary,
shall make loans to startup, newly established, and growing small business
concerns for working capital, real estate, and the acquisition of materials,
supplies, furniture, fixtures, and equipment.</text>
</subparagraph><subparagraph id="ID5b472292f0fb4c30829638fd85311626"><enum>(B)</enum><header>Maximum
loan</header><text>An eligible intermediary may not make a loan under this
subsection of more than $200,000 to any 1 small business concern.</text>
</subparagraph><subparagraph id="IDe8974b9a5beb4a19803cc7b353a9b7d9"><enum>(C)</enum><header>Applicable interest
rates</header><text>A loan made by an eligible intermediary to a small business
concern under this subsection, may have a fixed or a variable interest rate,
and shall bear an interest rate specified by the eligible intermediary in the
application of the eligible intermediary for a loan under this
subsection.</text>
</subparagraph><subparagraph id="ID2e7acc27f92f4b3993f8446f787af419"><enum>(D)</enum><header>Review
restrictions</header><text>The Administrator may not review individual loans
made by an eligible intermediary to a small business concern before approval of
the loan by the eligible intermediary.</text>
</subparagraph></paragraph><paragraph id="id71045E6C0D214681913DBE34C9A3B90F"><enum>(6)</enum><header>Termination</header><text>The
authority of the Administrator to make loans under the Program shall terminate
3 years after the date of enactment of the Small Business Job Creation and
Access to Capital Act of
2010.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID53e06344701147f9a3d73d71d230e5b4"><enum>(b)</enum><header>Rulemaking
authority</header><text>Not later than 180 days after the date of enactment of
this Act, the Administrator shall issue regulations to carry out section 7(l)
of the Small Business Act, as amended by subsection (a).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID3efa4cf8ba404587a84c8619fa81aaed"><enum>(c)</enum><header>Availability of
funds</header><text>Any amounts provided to the Administrator for the purposes
of carrying out section 7(l) of the Small Business Act, as amended by
subsection (a), shall remain available until expended.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id515A7721B9BE48C9BC2E23E3701C63A3"><enum>1132.</enum><header>Public policy
goals</header><text display-inline="no-display-inline">Section 501(d)(3) of the
Small Business Investment Act of 1958 (15 U.S.C. 695(d)(3)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id2DFA4A6276534979B254FCE25B62FFB9"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (J), by striking
<quote>or</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6CE2AE7F9C484B0CB2394DFB8620CADD"><enum>(2)</enum><text>in subparagraph (K), by
striking the period at the end and inserting <quote>, or</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4229BB0218A54784897B6485B260510B"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8F94C127572F489EA86DC19F0D912827" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id78EAA9322F0F4A5880D2F7AE55213FDC"><enum>(L)</enum><text>reduction of rates of
unemployment in labor surplus areas, as such areas are determined by the
Secretary of
Labor.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idD892F44814BD41D797D39D5BA9686D09"><enum>1133.</enum><header>Floor plan pilot
program extension</header>
<subsection id="IDA8587C2E5B604C748865ABEDC8074341"><enum>(a)</enum><header>In
general</header><text>Section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended—</text>
<paragraph id="idFB8CF36B6E2F4684B860608E888537B0"><enum>(1)</enum><text>by redesignating
paragraph (32), relating to increased veteran participation, 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 commented="no" display-inline="no-display-inline" id="id416BB0CF24FB4688AC9C7105B2171C94"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id855B9AC3C8D342AE869EC5A336D746A6" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id9CC7E327C7FF436E9829B49DADA4E032"><enum>(34)</enum><header>Floor plan financing
program</header>
<subparagraph commented="no" display-inline="no-display-inline" id="idC0C6158516944CB6A4181D6DAFCD5F20"><enum>(A)</enum><header>Definition</header><text>In
this paragraph, the term <term>eligible retail good</term>—</text>
<clause commented="no" display-inline="no-display-inline" id="id3582F4A0DA9B4E1CB7C25D177CF65DBD"><enum>(i)</enum><text>means a good for which a
title may be obtained under State law; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id0213C3F0D9F64557810F72A8BC1A1099"><enum>(ii)</enum><text>includes an automobile,
recreational vehicle, boat, and manufactured home.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id30FAB6C0651A4FF9B9DB6660725D32FF"><enum>(B)</enum><header>Program</header><text>The
Administrator may guarantee the timely payment of an open-end extension of
credit to a small business concern, the proceeds of which may be used for the
purchase of eligible retail goods for resale.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id22ECCB48A8764342B7821A29D0B195CB"><enum>(C)</enum><header>Amount</header><text>An
open-end extension of credit guaranteed under this paragraph shall be in an
amount not less than $500,000 and not more than $5,000,000.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8DBF5E1EA5E249E0B587BAD30D06E987"><enum>(D)</enum><header>Term</header><text>An
open-end extension of credit guaranteed under this paragraph shall have a term
of not more than 5 years.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF7EF7F52F4F649669293872C61B53DE1"><enum>(E)</enum><header>Guarantee
percentage</header><text>The Administrator may guarantee—</text>
<clause commented="no" display-inline="no-display-inline" id="idE6FA9B7A4CD74BE489420C86566A0A83"><enum>(i)</enum><text>not less than 60 percent
of an open-end extension of credit under this paragraph; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id1E60B8D43C344F8CB085306CAE7703CF"><enum>(ii)</enum><text>not more than 75 percent
of an open-end extension of credit under this paragraph.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA1DCFB72865A4330B3100A4E1983F4AE"><enum>(F)</enum><header>Advance
rate</header><text>The lender for an open-end extension of credit guaranteed
under this paragraph may allow the borrower to draw funds on the line of credit
in an amount equal to not more than 100 percent of the value of the eligible
retail goods to be
purchased.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idF043886794FD491EB45980175E4A49C8"><enum>(b)</enum><header>Sunset</header><text>Effective
September 30, 2013, section 7(a) of the Small Business Act (15 U.S.C. 636(a))
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8FE8B74063C3416F9482FF47622B1654"><enum>(1)</enum><text>by striking paragraph
(34); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id604A7CC86C854F13A603E1A13FADF480"><enum>(2)</enum><text>by redesignating
paragraph (35), as added by section 1206 of this Act, as paragraph (34).</text>
</paragraph></subsection></section><section id="idB427BADDABC54E90B6A5CD1F9991C66C"><enum>1134.</enum><header>Guarantees for bonds
and notes issued for community or economic development purposes</header><text display-inline="no-display-inline">The Riegle Community Development and
Regulatory Improvement Act of 1994 (12 U.S.C. 4701 et seq.) is amended by
inserting after section 114 (12 U.S.C. 4713) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id39F77B42F3E14D30A2C246FC8E7200D2" reported-display-style="italic" style="OLC">
<section id="ID8683c6eb2b8d45ff8ed860593addb2bd"><enum>114A.</enum><header>Guarantees for bonds
and notes issued for community or economic development purposes</header>
<subsection id="ID967d9e6f5dbb41afae0520a2486db0cb"><enum>(a)</enum><header>Definitions</header><text>In
this section, the following definitions shall apply:</text>
<paragraph id="ID82664d3be8644032ba27e49752bdac47"><enum>(1)</enum><header>Eligible community
development financial institution</header><text>The term <term>eligible
community development financial institution</term> means a community
development financial institution (as described in section 1805.201 of title
12, Code of Federal Regulations, or any successor thereto) certified by the
Secretary that has applied to a qualified issuer for, or been granted by a
qualified issuer, a loan under the Program.</text>
</paragraph><paragraph id="id51AAACEE5F264B3A9BC91F6CEDA4C6AD"><enum>(2)</enum><header>Eligible community or
economic development purpose</header><text>The term <term>eligible community or
economic development purpose</term>—</text>
<subparagraph id="id80336DF642D744C393ABA89AFB550CFB"><enum>(A)</enum><text>means any purpose
described in section 108(b); and</text>
</subparagraph><subparagraph id="idC560342F570F49918FB9F8A3C53B5DDE"><enum>(B)</enum><text>includes the provision of
community or economic development in low-income or underserved rural
areas.</text>
</subparagraph></paragraph><paragraph id="ID9c8265292645490ab67b939967ffe04f"><enum>(3)</enum><header>Guarantee</header><text>The
term <term>guarantee</term> means a written agreement between the Secretary and
a qualified issuer (or trustee), pursuant to which the Secretary ensures
repayment of the verifiable losses of principal, interest, and call premium, if
any, on notes or bonds issued by a qualified issuer to finance or refinance
loans to eligible community development financial institutions.</text>
</paragraph><paragraph id="ID2e5698bb0660421b9495963be3859137"><enum>(4)</enum><header>Loan</header><text>The
term <term>loan</term> means any credit instrument that is extended under the
Program for any eligible community or economic development purpose.</text>
</paragraph><paragraph id="IDc1c288868dbf48e1bea6be0584bac06f"><enum>(5)</enum><header>Master
servicer</header>
<subparagraph id="idEBE1B9FA774249E186D608F970F1BBB5"><enum>(A)</enum><header>In
general</header><text>The term <term>master servicer</term> means any entity
approved by the Secretary in accordance with subparagraph (B) to oversee the
activities of servicers, as provided in subsection (f)(4).</text>
</subparagraph><subparagraph id="id57C1820558824A38BC4F9A9A42A4C807"><enum>(B)</enum><header>Approval criteria for
master servicers</header><text>The Secretary shall approve or deny any
application to become a master servicer under the Program not later than 90
days after the date on which all required information is submitted to the
Secretary, based on the capacity and experience of the applicant in—</text>
<clause id="IDb991e70b14bc46a68b579a51a18eaeb3"><enum>(i)</enum><text>loan administration,
servicing, and loan monitoring;</text>
</clause><clause id="ID86d4dea4cc924d8b847fbf10161e4888"><enum>(ii)</enum><text>managing regional or
national loan intake, processing, or servicing operational systems and
infrastructure;</text>
</clause><clause id="ID62c5518badc24f25877359271c420fbf"><enum>(iii)</enum><text>managing regional or
national originator communication systems and infrastructure;</text>
</clause><clause id="ID06e74c0391a64966a6ee05ef5f995bc5"><enum>(iv)</enum><text>developing and
implementing training and other risk management strategies on a regional or
national basis; and</text>
</clause><clause id="IDa4a54608b19347bfa0fa5a71858921c0"><enum>(v)</enum><text>compliance monitoring,
investor relations, and reporting.</text>
</clause></subparagraph></paragraph><paragraph id="ID213e46400b2a4dc2b314e0a6ada7546d"><enum>(6)</enum><header>Program</header><text>The
term <term>Program</term> means the guarantee Program for bonds and notes
issued for eligible community or economic development purposes established
under this section.</text>
</paragraph><paragraph id="ID7d72b422e29c4cbdbf2d47b839b9d08f"><enum>(7)</enum><header>Program
administrator</header><text>The term <term>Program administrator</term> means
an entity designated by the issuer to perform administrative duties, as
provided in subsection (f)(2).</text>
</paragraph><paragraph id="ID4e453eef3651462e96dd37826094a300"><enum>(8)</enum><header>Qualified
issuer</header>
<subparagraph id="ID4020b564e5954afaa5f66d672819d8c6"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified issuer</term> means a community
development financial institution (or any entity designated to issue notes or
bonds on behalf of such community development financial institution) that meets
the qualification requirements of this paragraph.</text>
</subparagraph><subparagraph id="ID0043d3484da647adb3f0f6464e084616"><enum>(B)</enum><header>Approval criteria for
qualified issuers</header>
<clause id="ID47d10e03af8a4054b1d6a6ea9c9cce20"><enum>(i)</enum><header>In
general</header><text>The Secretary shall approve a qualified issuer for a
guarantee under the Program in accordance with the requirements of this
paragraph, and such additional requirements as the Secretary may establish, by
regulation.</text>
</clause><clause id="ID1744f980b4de4d3e98ab2d7396cb8ef0"><enum>(ii)</enum><header>Terms and
qualifications</header><text>A qualified issuer shall—</text>
<subclause id="ID833b66bfa5714978ba920715c70903ca"><enum>(I)</enum><text>have appropriate
expertise, capacity, and experience, or otherwise be qualified to make loans
for eligible community or economic development purposes;</text>
</subclause><subclause id="ID8b57f5b1d86a48d2b13f1dcd6d04961a"><enum>(II)</enum><text>provide to the
Secretary—</text>
<item id="id32636B424FD5492088BFB3F59A86A7C4"><enum>(aa)</enum><text>an acceptable statement
of the proposed sources and uses of the funds; and</text>
</item><item id="idA3CE7BFF18CB407D8DC6C50FD8C0B6F4"><enum>(bb)</enum><text>a capital distribution
plan that meets the requirements of subsection (c)(1); and</text>
</item></subclause><subclause id="IDa596567fb9ef4889ad853933bec963a1"><enum>(III)</enum><text>certify to the
Secretary that the bonds or notes to be guaranteed are to be used for eligible
community or economic development purposes.</text>
</subclause></clause></subparagraph><subparagraph id="IDba36c1f5958940aabfc1454738ed732a"><enum>(C)</enum><header>Department opinion;
timing</header>
<clause id="id994EB83157D74B3CAF12A51614A8EC88"><enum>(i)</enum><header>Department
opinion</header><text>Not later than 30 days after the date of a request by a
qualified issuer for approval of a guarantee under the Program, the Secretary
shall provide an opinion regarding compliance by the issuer with the
requirements of the Program under this section.</text>
</clause><clause id="id7A9A9868E8FB473793F0A7F7CB91BB4A"><enum>(ii)</enum><header>Timing</header><text>The
Secretary shall approve or deny a guarantee under this section after
consideration of the opinion provided to the Secretary under clause (i), and in
no case later than 90 days after receipt of all required information by the
Secretary with respect to a request for such guarantee.</text>
</clause></subparagraph></paragraph><paragraph id="ID9c6c18fb64494e7e89abc4b1749fb1ea"><enum>(9)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="ID3fa523aaa1544693a7dee30673b671f3"><enum>(10)</enum><header>Servicer</header><text>The
term <term>servicer</term> means an entity designated by the issuer to perform
various servicing duties, as provided in subsection (f)(3).</text>
</paragraph></subsection><subsection id="ID4c9548a898474d4ea61d3395d9b0eab6"><enum>(b)</enum><header>Guarantees
authorized</header><text>The Secretary shall guarantee payments on bonds or
notes issued by any qualified issuer, if the proceeds of the bonds or notes are
used in accordance with this section to make loans to eligible community
development financial institutions—</text>
<paragraph id="id9BD651DDF4324C02BC20CB4D6E9064A1"><enum>(1)</enum><text>for eligible community or
economic development purposes; or</text>
</paragraph><paragraph id="idB0A425F55E704E7487B6A700FE2DA626"><enum>(2)</enum><text>to refinance loans or
notes issued for such purposes.</text>
</paragraph></subsection><subsection id="id300FC14FA4444134B76812F231777AF2"><enum>(c)</enum><header>General Program
requirements</header>
<paragraph id="IDca3a298f53fe4067874457c36b2e7755"><enum>(1)</enum><header>In
general</header><text>A capital distribution plan meets the requirements of
this subsection, if not less than 90 percent of the principal amount of
guaranteed bonds or notes (other than costs of issuance fees) are used to make
loans for any eligible community or economic development purpose, measured
annually, beginning at the end of the 1-year period beginning on the issuance
date of such guaranteed bonds or notes.</text>
</paragraph><paragraph id="ID09b5c2fef52b45428462701c9c88f4d8"><enum>(2)</enum><header>Relending
account</header><text>Not more than 10 percent of the principal amount of
guaranteed bonds or notes, multiplied by an amount equal to the outstanding
principal balance of issued notes or bonds, minus the risk-share pool amount
under subsection (d), may be held in a relending account and may be made
available for new eligible community or economic development purposes.</text>
</paragraph><paragraph id="ID1c98f2a6aa444e4c954ea18c5b9e6cb6"><enum>(3)</enum><header>Limitations on unpaid
principal balances</header><text>The proceeds of guaranteed bonds or notes
under the Program may not be used to pay fees (other than costs of issuance
fees), and shall be held in—</text>
<subparagraph id="IDd92ee871680548dfba4e057bf6434beb"><enum>(A)</enum><text>community or economic
development loans;</text>
</subparagraph><subparagraph id="ID8de313282d4343d1a8e04a0d62fd8f83"><enum>(B)</enum><text>a relending account, to
the extent authorized under paragraph (2); or</text>
</subparagraph><subparagraph id="ID7c3154b52ef14e8594a074e78c5f73c0"><enum>(C)</enum><text>a risk-share pool
established under subsection (d).</text>
</subparagraph></paragraph><paragraph id="ID0825ad76a42149968eeb49003d048faf"><enum>(4)</enum><header>Repayment</header><text>If
a qualified issuer fails to meet the requirements of paragraph (1) by the end
of the 90-day period beginning at the end of the annual measurement period,
repayment shall be made on that portion of bonds or notes necessary to bring
the bonds or notes that remain outstanding after such repayment into compliance
with the 90 percent requirement of paragraph (1).</text>
</paragraph><paragraph id="IDc0afc3cc378947c9b63962d19f89d5cf"><enum>(5)</enum><header>Prohibited
uses</header><text>The Secretary shall, by regulation—</text>
<subparagraph id="ID27248fa39da84692befc78d3543c13dc"><enum>(A)</enum><text>prohibit, as appropriate,
certain uses of amounts from the guarantee of a bond or note under the Program,
including the use of such funds for political activities, lobbying, outreach,
counseling services, or travel expenses; and</text>
</subparagraph><subparagraph id="IDa461f38b5e5e4daa8e36bc0199b7a662"><enum>(B)</enum><text>provide that the
guarantee of a bond or note under the Program may not be used for salaries or
other administrative costs of—</text>
<clause id="ID5e1e893be4664f4c819130f834b12067"><enum>(i)</enum><text>the qualified issuer;
or</text>
</clause><clause id="IDabcbd850a5cd4e8e86a85205249d5e97"><enum>(ii)</enum><text>any recipient of amounts
from the guarantee of a bond or note.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID501cdf9773144991862c8bf26a94dc41"><enum>(d)</enum><header>Risk-Share
pool</header><text>Each qualified issuer shall, during the term of a guarantee
provided under the Program, establish a risk-share pool, capitalized by
contributions from eligible community development financial institution
participants an amount equal to 3 percent of the guaranteed amount outstanding
on the subject notes and bonds.</text>
</subsection><subsection id="ID9051bdfe0b9340e497903869c4363422"><enum>(e)</enum><header>Guarantees</header>
<paragraph id="ID593a05cf5b524fcc9283f947c792332f"><enum>(1)</enum><header>In
general</header><text>A guarantee issued under the Program shall—</text>
<subparagraph id="ID5704e07f922d4a168cb60f409e280e33"><enum>(A)</enum><text>be for the full amount of
a bond or note, including the amount of principal, interest, and call
premiums;</text>
</subparagraph><subparagraph id="IDe86564017d0242db8b9277d8d98ac10b"><enum>(B)</enum><text>be fully assignable and
transferable to the capital market, on terms and conditions that are consistent
with comparable Government-guaranteed bonds, and satisfactory to the
Secretary;</text>
</subparagraph><subparagraph id="IDe7ba30e1cb6b4ee8844f3dde06b86779"><enum>(C)</enum><text>represent the full faith
and credit of the United States; and</text>
</subparagraph><subparagraph id="IDe0cda6ef30974ab68951b6c644a8cd0a"><enum>(D)</enum><text>not exceed 30
years.</text>
</subparagraph></paragraph><paragraph id="ID524f55d6e49a4cc6b8a2a298358da70a"><enum>(2)</enum><header>Limitations</header>
<subparagraph id="id9A77A4405D1D40C29BB97EA964A2463E"><enum>(A)</enum><header>Annual number of
guarantees</header><text>The Secretary shall issue not more than 10 guarantees
in any calendar year under the Program.</text>
</subparagraph><subparagraph id="id2F463BC8F7544D4EA5EE122E5AEA5DEE"><enum>(B)</enum><header>Guarantee
amount</header><text>The Secretary may not guarantee any amount under the
Program equal to less than $100,000,000, but the total of all such guarantees
in any fiscal year may not exceed $1,000,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="IDdb91821b556b40a2a6b226187ad20f51"><enum>(f)</enum><header>Servicing of
transactions</header>
<paragraph id="idEC09F2DE6C3648C0A0049E2C5AF3D30E"><enum>(1)</enum><header>In
general</header><text>To maximize efficiencies and minimize cost and interest
rates, loans made under this section may be serviced by qualified Program
administrators, bond servicers, and a master servicer.</text>
</paragraph><paragraph id="IDee94c7bc24f84a239e65a62b7f8fdb1a"><enum>(2)</enum><header>Duties of Program
administrator</header><text>The duties of a Program administrator shall
include—</text>
<subparagraph id="id534FA687CE554E2F8CAF0E6049955421"><enum>(A)</enum><text>approving and qualifying
eligible community development financial institution applications for
participation in the Program;</text>
</subparagraph><subparagraph id="id92DF22FD1D4A49D59041E20F20CD6584"><enum>(B)</enum><text>compliance
monitoring;</text>
</subparagraph><subparagraph id="id6AB84D38795646F0B609E7683EFB9CA9"><enum>(C)</enum><text>bond packaging in
connection with the Program; and</text>
</subparagraph><subparagraph id="idAAD6AEA5091A4AE9929F29D25308D479"><enum>(D)</enum><text>all other duties and
related services that are customarily expected of a Program
administrator.</text>
</subparagraph></paragraph><paragraph id="ID5db2ca67f8f14d2db6859cd9cd79c189"><enum>(3)</enum><header>Duties of
servicer</header><text>The duties of a servicer shall include—</text>
<subparagraph id="idD3BE4E24002A4F2CBA2F093C67138494"><enum>(A)</enum><text>billing and collecting
loan payments;</text>
</subparagraph><subparagraph id="id0E61F5E21F00455B99C2AD5CED65755E"><enum>(B)</enum><text>initiating collection
activities on past-due loans;</text>
</subparagraph><subparagraph id="id413B1DD9C49F43D4B92A8A9EBF50BD0A"><enum>(C)</enum><text>transferring loan
payments to the master servicing accounts;</text>
</subparagraph><subparagraph commented="no" id="id22E556277CC140508275952233612A8E"><enum>(D)</enum><text>loan administration and
servicing;</text>
</subparagraph><subparagraph id="idD4208DCC034545BFB0B951A952349B33"><enum>(E)</enum><text>systematic and timely
reporting of loan performance through remittance and servicing reports;</text>
</subparagraph><subparagraph id="id5D54BFC52F514A9085666E49C9A905EC"><enum>(F)</enum><text>proper measurement of
annual outstanding loan requirements; and</text>
</subparagraph><subparagraph id="idDBB304A50B8D4C7AAEE4AE02B4CB7E0D"><enum>(G)</enum><text>all other duties and
related services that are customarily expected of servicers.</text>
</subparagraph></paragraph><paragraph id="IDd6c7ddfa885f4c429d262b9980648e85"><enum>(4)</enum><header>Duties of master
servicer</header><text>The duties of a master servicer shall include—</text>
<subparagraph id="id9C85C42647244DBA929C31D4A2491AB4"><enum>(A)</enum><text>tracking the movement of
funds between the accounts of the master servicer and any other
servicer;</text>
</subparagraph><subparagraph id="id5E282790325F4E9A8A2AE68524DB3747"><enum>(B)</enum><text>ensuring orderly receipt
of the monthly remittance and servicing reports of the servicer;</text>
</subparagraph><subparagraph id="id93A56DDD98C549BFBE75C9BDFAF7BE89"><enum>(C)</enum><text>monitoring the collection
comments and foreclosure actions;</text>
</subparagraph><subparagraph id="id1C8C9CC62E99497889F0FA75C616E05B"><enum>(D)</enum><text>aggregating the reporting
and distribution of funds to trustees and investors;</text>
</subparagraph><subparagraph id="id7916CD60285F4424B966A5220420EFCF"><enum>(E)</enum><text>removing and replacing a
servicer, as necessary;</text>
</subparagraph><subparagraph commented="no" id="id4FB21C8516D94F41BC72B82E84076CD6"><enum>(F)</enum><text>loan administration and
servicing;</text>
</subparagraph><subparagraph id="id077CED16AD204E48B88F953CDB758980"><enum>(G)</enum><text>systematic and timely
reporting of loan performance compiled from all bond servicers’ reports;</text>
</subparagraph><subparagraph id="id2F2335F342104C8DB86CD988F45C0CC1"><enum>(H)</enum><text>proper distribution of
funds to investors; and</text>
</subparagraph><subparagraph id="id64E0981FAE6346FEBDCFE9C2B24B54E5"><enum>(I)</enum><text>all other duties and
related services that are customarily expected of a master servicer.</text>
</subparagraph></paragraph></subsection><subsection id="ID60e0781271f24d07920052a574f62262"><enum>(g)</enum><header>Fees</header>
<paragraph id="ID0e7c6938768043bf910aee48253b7b7f"><enum>(1)</enum><header>In
general</header><text>A qualified issuer that receives a guarantee issued under
this section on a bond or note shall pay a fee to the Secretary, in an amount
equal to 10 basis points of the amount of the unpaid principal of the bond or
note guaranteed.</text>
</paragraph><paragraph id="ID25d7e8977eb441cf96bccc9f97eb66c1"><enum>(2)</enum><header>Payment</header><text>A
qualified issuer shall pay the fee required under this subsection on an annual
basis.</text>
</paragraph><paragraph id="id6A649A6DB7C14D43B62105F8F8BB8F69"><enum>(3)</enum><header>Use of
fees</header><text>Fees collected by the Secretary under this subsection shall
be used to reimburse the Department of the Treasury for any administrative
costs incurred by the Department in implementing the Program established under
this section.</text>
</paragraph></subsection><subsection id="ID9bc114d589b841c18bf90fc3e3e9fbac"><enum>(h)</enum><header>Authorization of
appropriations</header>
<paragraph id="ID9a6941da7ed840b2b131d46b48b93e83"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated to the Secretary,
such sums as are necessary to carry out this section.</text>
</paragraph><paragraph id="IDb0078479c1214c6eaf52abcaaf6be20f"><enum>(2)</enum><header>Use of
fees</header><text>To the extent that the amount of funds appropriated for a
fiscal year under paragraph (1) are not sufficient to carry out this section,
the Secretary may use the fees collected under subsection (g) for the cost of
providing guarantees of bonds and notes under this section.</text>
</paragraph></subsection><subsection id="ID70ec666419cd40a1a17de5e051278c2c"><enum>(i)</enum><header>Investment in
guaranteed bonds ineligible for Community Reinvestment Act
purposes</header><text>Notwithstanding any other provision of law, any
investment by a financial institution in bonds or notes guaranteed under the
Program shall not be taken into account in assessing the record of such
institution for purposes of the Community Reinvestment Act of 1977 (12 U.S.C.
2901).</text>
</subsection><subsection id="ID2d37d502cd724b74917879da335f9fa9"><enum>(j)</enum><header>Administration</header>
<paragraph id="IDf4d48f7a8ba844f3b62b6295a193a6b2"><enum>(1)</enum><header>Regulations</header><text>Not
later than 1 year after the date of enactment of this section, the Secretary
shall promulgate regulations to carry out this section.</text>
</paragraph><paragraph id="ID0413afdbf72b463cb55a92c80a3aee52"><enum>(2)</enum><header>Implementation</header><text>Not
later than 2 years after the date of enactment of this section, the Secretary
shall implement this section.</text>
</paragraph></subsection><subsection id="IDb9166e9c81e54f4891de1aa5f28fe54b"><enum>(k)</enum><header>Termination</header><text>This
section is repealed, and the authority provided under this section shall
terminate, on September 30,
2014.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="IDd6fd9db3f00a44ed97df717ce22137f1"><enum>1135.</enum><header>Temporary express
loan enhancement</header>
<subsection id="idCA51B3C3504948F98670769E07866CD4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 7(a)(31)(D)
of the Small Business Act (15 U.S.C. 636(a)(31)(D)) is amended by striking
<quote>$350,000</quote> and inserting <quote>$1,000,000</quote>.</text>
</subsection><subsection id="idB5ECC8E843CE48DBA168A6DF6F5B551B"><enum>(b)</enum><header>Prospective
repeal</header><text display-inline="yes-display-inline">Effective 1 year after
the date of enactment of this Act, section 7(a)(31)(D) of the Small Business
Act (15 U.S.C. 636(a)(31)(D)) is amended by striking <quote>$1,000,000</quote>
and inserting <quote>$350,000</quote>.</text>
</subsection></section><section id="IDbcaf208490c2475f8cc5262c3e18df4a"><enum>1136.</enum><header>Prohibition on using
TARP funds or tax increases</header>
<subsection id="ID2dd205719f2e431382b1b5f634ae8488"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subsection (b), nothing in section 1111, 1112, 1113, 1114, 1115, 1116, 1117,
1118, 1122, or 1131, or an amendment made by such sections, shall be construed
to limit the ability of Congress to appropriate funds.</text>
</subsection><subsection id="IDb0088c0a282749d2a363ed303f0eb97c"><enum>(b)</enum><header>TARP funds and tax
increases</header>
<paragraph id="ID9e81cc7db25f44fea6d6af782b9b3902"><enum>(1)</enum><header>In
general</header><text>Any covered amounts may not be used to carry out section
1111, 1112, 1113, 1114, 1115, 1116, 1117, 1118, 1122, or 1131, or an amendment
made by such sections.</text>
</paragraph><paragraph id="IDd075a659d3434918a56ecac5c278fc02"><enum>(2)</enum><header>Definition</header><text>In
this subsection, the term <quote>covered amounts</quote> means—</text>
<subparagraph id="IDc9489bf673524a74bba3339f9ce6396b"><enum>(A)</enum><text>the amounts made
available to the Secretary of the Treasury under title I of the Emergency
Economic Stabilization Act of 2008 S.C. 5201 et seq.) to purchase (under
section 101) or guarantee (under section 102) assets under that Act; and</text>
</subparagraph><subparagraph id="IDbb886100bf264c1f9cfc822b8e8fa89b"><enum>(B)</enum><text>any revenue increase
attributable to any amendment to the Internal Revenue Code of 1986 made during
the period beginning on the date of enactment of this Act and ending on
December 31, 2010.</text>
</subparagraph></paragraph></subsection></section></part></subtitle><subtitle id="idBBC75A1D15B040AEA825F59543D0F8CB"><enum>B</enum><header>Small business trade and
exporting</header>
<section commented="no" display-inline="no-display-inline" id="id27DCA41AA19C4B00B3ECA0EC18EA1A55" section-type="subsequent-section"><enum>1201.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote>Small Business Export Enhancement and International Trade Act of
2010</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="idC9BFF91115524C3A90F781140D67AB11" section-type="subsequent-section"><enum>1202.</enum><header display-inline="yes-display-inline">Definitions</header>
<subsection commented="no" display-inline="no-display-inline" id="id5CBEBDC6C4C14452ABB56AB7CB7DB628"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this subtitle—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idD84D2EE3492643B99972429D024F0F76"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>Associate
Administrator</term> means the Associate Administrator for International Trade
appointed under section 22(a)(2) of the Small Business Act, as amended by this
subtitle;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id26A3217D3C6647B6B047C8DA7F2EB366"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>Export Assistance
Center</term> means a one-stop shop referred to in section 2301(b)(8) of the
Omnibus Trade and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB6C832BE7EBC428C9E8FC57B4AC5030F"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>rural small business
concern</term> means a small business concern located in a rural area, as that
term is defined in section 1393(a)(2) of the Internal Revenue Code of
1986.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1FE6F6837C184DDFA997C2E9498E9977"><enum>(b)</enum><header display-inline="yes-display-inline">Technical and conforming
amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1AF12579910044BC83A156CE20583288"><enum>(1)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">Section 3 of the Small Business Act (15
U.S.C. 632) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idFFEF4D7E696A40F7A64B011910B7BC49" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id5B8266F75F8F45AE846632E174C7E6F0"><enum>(t)</enum><header display-inline="yes-display-inline">Small business development
center</header><text display-inline="yes-display-inline">In this Act, the term
<term>small business development center</term> means a small business
development center described in section 21.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id461856EC929F4288A5F1A0EB6187E19C"><enum>(u)</enum><header display-inline="yes-display-inline">Region of the Administration</header><text display-inline="yes-display-inline">In this Act, the term <quote>region of the
Administration</quote> means the geographic area served by a regional office of
the Administration established under section
4(a).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3BBD07FAC23E40D5AD766810A3281376"><enum>(2)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">Section 4(b)(3)(B)(x) of the Small Business
Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by striking <quote>Administration
district and region</quote> and inserting <quote>district and region of the
Administration</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="IDf425bfb234764304ac0d6296c9f1a6c3" section-type="subsequent-section"><enum>1203.</enum><header display-inline="yes-display-inline">Office of International Trade</header>
<subsection commented="no" display-inline="no-display-inline" id="ID75ab5272b2864772975568ddd3b73eb7"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">Section 22 of the Small Business Act (15
U.S.C. 649) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID22af7c4e644d454b80df28035c5ae662"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="subsection" style="traditional">Sec. 22.</header-in-text> (a)
There</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB7496D1543A04D349E7C2D1B6C3E82FB" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="IDda057987d26641529918e81a0b36f5ea" section-type="subsequent-section"><enum>22.</enum><header display-inline="yes-display-inline">Office of International Trade</header>
<subsection commented="no" display-inline="no-display-inline" id="id7A0D319C4DA240548502759D13FD1023"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header>
<paragraph commented="no" display-inline="no-display-inline" id="idE813244C267D4C42AEB5B0B1EDFAAABC"><enum>(1)</enum><header display-inline="yes-display-inline">Office</header><text display-inline="yes-display-inline">There</text>
</paragraph></subsection></section><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id800D354EACCF491785AFCA8280329E63"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (a)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3A317BFCC8C64E068C5FE15C2F8BE536"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (1), as so designated, by
striking the period and inserting “for the primary purposes of
increasing—</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF2625B8ABD5C481487AD6B519559EE07" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id013B8A886EDB4428A2D663814D5C7F8C"><enum>(A)</enum><text display-inline="yes-display-inline">the number of small business concerns that
export; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB1FFA75A4CC04E07A78EEE3CA1411427"><enum>(B)</enum><text display-inline="yes-display-inline">the volume of exports by small business
concerns.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC07FDEA55E0B4319B00EA7CF449832A1"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6BC2A93E81E34DF692B5C5679DD7781C" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idB4ABA0C812A246F7A51C9D34A57FBC20"><enum>(2)</enum><header display-inline="yes-display-inline">Associate Administrator</header><text display-inline="yes-display-inline">The head of the Office shall be the
Associate Administrator for International Trade, who shall be responsible to
the
Administrator.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDcb2c2a78164842f49466916e7cfa2106"><enum>(b)</enum><header display-inline="yes-display-inline">Authority for Additional Associate
Administrator</header><text display-inline="yes-display-inline">Section 4(b)(1)
of the Small Business Act (15 U.S.C. 633(b)(1)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID81c276fe27314517ae25818c7148dffb"><enum>(1)</enum><text display-inline="yes-display-inline">in the fifth sentence, by striking
<quote>five Associate Administrators</quote> and inserting <quote>Associate
Administrators</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1382c03cf7654383a2a980f63e38186e"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:
<quote>One such Associate Administrator shall be the Associate Administrator
for International Trade, who shall be the head of the Office of International
Trade established under section 22.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDfc7e7893e2624bb0908180457f22c3b0"><enum>(c)</enum><header display-inline="yes-display-inline">Discharge of International Trade
Responsibilities of Administration</header><text display-inline="yes-display-inline">Section 22 of the Small Business Act (15
U.S.C. 649) is amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD879524745A7490BA664B97901C0AAFC" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="IDcac3138e6c4849dc849f4eb93932fc75"><enum>(h)</enum><header display-inline="yes-display-inline">Discharge of International Trade
Responsibilities of Administration</header><text display-inline="yes-display-inline">The Administrator shall ensure that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID1057c4f9b8674cf1898a64d992af95bc"><enum>(1)</enum><text display-inline="yes-display-inline">the responsibilities of the Administration
regarding international trade are carried out by the Associate
Administrator;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDcc9b114e37764f0c9c9976db71f48a48"><enum>(2)</enum><text display-inline="yes-display-inline">the Associate Administrator has sufficient
resources to carry out such responsibilities; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0619e2bb7316469e8856f03cac4c1f31"><enum>(3)</enum><text display-inline="yes-display-inline">the Associate Administrator has direct
supervision and control over—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id6AD60A41AE744F42A125CF41AF21A86E"><enum>(A)</enum><text display-inline="yes-display-inline">the staff of the Office; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id47E52B7D2EBA44B18F9785935C2621DC"><enum>(B)</enum><text display-inline="yes-display-inline">any employee of the Administration whose
principal duty station is an Export Assistance Center, or any successor
entity.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDab5ce1ead7074fedb62cc2bd7ce2b1ca"><enum>(d)</enum><header display-inline="yes-display-inline">Role of Associate Administrator in carrying
out international trade policy</header><text display-inline="yes-display-inline">Section 2(b)(1) of the Small Business Act
(15 U.S.C. 631(b)(1)) is amended in the matter preceding subparagraph
(A)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID03f2c910f0d9428498b6b25ebd90c4cc"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>the Administrator
of</quote> before <quote>the Small Business Administration</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID21abd79cd62b4194b203b972fa44ede1"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting <quote>through the Associate
Administrator for International Trade, and</quote> before <quote>in cooperation
with</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID922cb62006fd49208a0abb2bf4e2bf1e"><enum>(e)</enum><header display-inline="yes-display-inline">Implementation date</header><text display-inline="yes-display-inline">Not later than 90 days after the date of
enactment of this Act, the Administrator of the Small Business Administration
shall appoint an Associate Administrator for International Trade under section
22(a) of the Small Business Act (15 U.S.C. 649(a)), as added by this
section.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="IDc56c99be3ea04563ba814f5cac112802" section-type="subsequent-section"><enum>1204.</enum><header display-inline="yes-display-inline">Duties of the Office of International
Trade</header>
<subsection commented="no" display-inline="no-display-inline" id="id26B2A0873D9A4240B7AC00626A4440D5"><enum>(a)</enum><header display-inline="yes-display-inline">Amendments to section 22</header><text display-inline="yes-display-inline">Section 22 of the Small Business Act (15
U.S.C. 649) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID32e016cfcdc2471980828936aff0c5a0"><enum>(1)</enum><text display-inline="yes-display-inline">by striking subsection (b) and inserting
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id32240058E4DA4E6994A7E92D4D0BCB31" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID7915ac308f084772b797b86c19d723f3"><enum>(b)</enum><header display-inline="yes-display-inline">Trade distribution network</header><text display-inline="yes-display-inline">The Associate Administrator, working in
close cooperation with the Secretary of Commerce, the United States Trade
Representative, the Secretary of Agriculture, the Secretary of State, the
President of the Export-Import Bank of the United States, the President of the
Overseas Private Investment Corporation, Director of the United States Trade
and Development Agency, and other relevant Federal agencies, small business
development centers engaged in export promotion efforts, Export Assistance
Centers, regional and district offices of the Administration, the small
business community, and relevant State and local export promotion programs,
shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id3FC75578C9F64C119F3FD5379E907DD3"><enum>(1)</enum><text display-inline="yes-display-inline">maintain a distribution network, using
regional and district offices of the Administration, the small business
development center network, networks of women's business centers, the Service
Corps of Retired Executives authorized by section 8(b)(1), and Export
Assistance Centers, for programs relating to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID3a942e73d52f4d7ea5770bacc1414060"><enum>(A)</enum><text display-inline="yes-display-inline">trade promotion;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2011228ac39143c0bf454cb2da1e29d7"><enum>(B)</enum><text display-inline="yes-display-inline">trade finance;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0faf353822ed40cbbe1734dee18b5de2"><enum>(C)</enum><text display-inline="yes-display-inline">trade adjustment assistance;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID83e1de5ee64a4ef4926613b9e2e2bf98"><enum>(D)</enum><text display-inline="yes-display-inline">trade remedy assistance; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID3681f106a5404a3c972e934117a819fd"><enum>(E)</enum><text display-inline="yes-display-inline">trade data collection;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE5839FCC2F8F45BA8CBD883E9DE18CC1"><enum>(2)</enum><text display-inline="yes-display-inline">aggressively market the programs described
in paragraph (1) and disseminate information, including computerized marketing
data, to small business concerns on exporting trends, market-specific growth,
industry trends, and international prospects for exports;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0D7AEC6DFF2C4BF1A323567D98DFFBEC"><enum>(3)</enum><text display-inline="yes-display-inline">promote export assistance programs through
the district and regional offices of the Administration, the small business
development center network, Export Assistance Centers, the network of women's
business centers, chapters of the Service Corps of Retired Executives, State
and local export promotion programs, and partners in the private sector;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7BD2060AD7E94B3E9BA88A4FB53021B6"><enum>(4)</enum><text display-inline="yes-display-inline">give preference in hiring or approving the
transfer of any employee into the Office or to a position described in
subsection (c)(9) to otherwise qualified applicants who are fluent in a
language in addition to English, to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id4779CE030A53479B87BD4B631E587FE3"><enum>(A)</enum><text display-inline="yes-display-inline">accompany small business concerns on
foreign trade missions; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9C39B5852E764AD6A58682EC2CBF732A"><enum>(B)</enum><text display-inline="yes-display-inline">translate documents, interpret
conversations, and facilitate multilingual transactions, including by providing
referral lists for translation services, if
required.</text>
</subparagraph></paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID54d372ba63d4448a939a1f619e7fe4b1"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (c)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB14932FFF5E94ACBA9286A3716D3A161"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(c) The Office</quote>
and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id08D48C8D6AE94779A83B155EFF2B54AA" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id34A4075C8CC04E248FAF5BAB8C1A72A4"><enum>(c)</enum><header display-inline="yes-display-inline">Promotion of sales
opportunities</header><text display-inline="yes-display-inline">The Associate
Administrator</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9b1cf04e5b5a45af8ba3ae01174f9565"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) through (8)
as paragraphs (2) through (9), respectively;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID1321e32ec9ab45be84d20383647df98c"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting before paragraph (2), as so
redesignated, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9219DD5D86B349DB972334E342519258" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID7902fbf8c8d4410ebc07ed7340270abe"><enum>(1)</enum><text display-inline="yes-display-inline">establish annual goals for the Office
relating to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID8a2cc358674b4a91840be72e7db1a170"><enum>(A)</enum><text display-inline="yes-display-inline">enhancing the exporting capability of small
business concerns and small manufacturers;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6fb1cdebb96740e1834b5c93ecb91767"><enum>(B)</enum><text display-inline="yes-display-inline">facilitating technology transfers;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID801b4baddf4644f5b34bd0aef902da9f"><enum>(C)</enum><text display-inline="yes-display-inline">enhancing programs and services to assist
small business concerns and small manufacturers to compete effectively and
efficiently in foreign markets;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID7bb14f64b5ed4dc4b8062ff787e6a0b7"><enum>(D)</enum><text display-inline="yes-display-inline">increasing the ability of small business
concerns to access capital; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID014b770751c7451eb1a71bcf17788ea1"><enum>(E)</enum><text display-inline="yes-display-inline">disseminating information concerning
Federal, State, and private programs and
initiatives;</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0613389f2e834f918cf07875c4877bd7"><enum>(D)</enum><text display-inline="yes-display-inline">in paragraph (2), as so redesignated, by
striking <quote>mechanism for</quote> and all that follows through <quote>(D)
assisting</quote> and inserting the
following:</text>
<quoted-block changed="added" display-inline="yes-display-inline" id="id6C5BC2B7E9F849E39A936CC1E947E64C" reported-display-style="italic" style="OLC">
<text>mechanism
for—</text><subparagraph commented="no" display-inline="no-display-inline" id="ID4d572bf91609423491d3d6a0682f8cf0"><enum>(A)</enum><text display-inline="yes-display-inline">identifying subsectors of the small
business community with strong export potential;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID518e17e9254c4d4789e291a8ac50090f"><enum>(B)</enum><text display-inline="yes-display-inline">identifying areas of demand in foreign
markets;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6653280a846943118e156fa4dfbd1052"><enum>(C)</enum><text display-inline="yes-display-inline">prescreening foreign buyers for commercial
and credit purposes; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID2a93ecd958ec4e9db989f97bbd364520"><enum>(D)</enum><text display-inline="yes-display-inline">assisting</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id75534A04EB134243818FB1855034DBF2"><enum>(E)</enum><text display-inline="yes-display-inline">in paragraph (3), as so redesignated, by
striking <quote>assist small businesses in the formation and utilization
of</quote> and inserting <quote>assist small business concerns in forming and
using</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id43D8BB31BD43454B94477E8F20BB6F60"><enum>(F)</enum><text display-inline="yes-display-inline">in paragraph (4), as so
redesignated—</text>
<clause commented="no" display-inline="no-display-inline" id="id4E0C6A8C178E455BB6FDCD9198563D9E"><enum>(i)</enum><text display-inline="yes-display-inline">by striking <quote>local</quote> and
inserting <quote>district</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD12FBEBE5D664AAE95E4C1461F9B42F3"><enum>(ii)</enum><text display-inline="yes-display-inline">by striking <quote>existing</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id105F92EFE1074E70A2502A35604916A4"><enum>(iii)</enum><text display-inline="yes-display-inline">by striking <quote>Small Business
Development Center network</quote> and inserting <quote>small business
development center network</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id0032DB5B11B841DBA85B233870516242"><enum>(iv)</enum><text display-inline="yes-display-inline">by striking <quote>Small Business
Development Center Program</quote> and inserting <quote>small business
development center program</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAF411DCDB49A42789996F790AE04DA41"><enum>(G)</enum><text display-inline="yes-display-inline">in paragraph (5), as so
redesignated—</text>
<clause commented="no" display-inline="no-display-inline" id="id2EF629E26EE74E2ABD0F80172870CA79"><enum>(i)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Gross State Produce</quote> and inserting <quote>Gross State
Product</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id64123FBF65EC4636929D56A2A9A99286"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B), by striking
<quote>SIC</quote> each place it appears and inserting <quote>North American
Industry Classification System</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id71246B24881C465DAB3A783A7FA471C2"><enum>(iii)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking
<quote>small businesses</quote> and inserting <quote>small business
concerns</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0173021F82874401BA0E78C926BF2C39"><enum>(H)</enum><text display-inline="yes-display-inline">in paragraph (6), as so redesignated, by
striking the period at the end and inserting a semicolon;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id03D053C4782D4708A9D9A9FC5C0A7EAB"><enum>(I)</enum><text display-inline="yes-display-inline">in paragraph (7), as so
redesignated—</text>
<clause commented="no" display-inline="no-display-inline" id="id7E6E4391B00542BABEFEC1B5796718B2"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph
(A)—</text>
<subclause commented="no" display-inline="no-display-inline" id="idB2DEFBBE7300401393EF120421077538"><enum>(I)</enum><text display-inline="yes-display-inline">by inserting <quote>concerns</quote> after
<quote>small business</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id21625C4E465C4DE99FA41BC3863C82D4"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>current</quote> and
inserting <quote>up to date</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id5DDD8FA96989499CA03F8D12FBC557BB"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (A), by striking
<quote>Administration's regional offices</quote> and inserting <quote>regional
and district offices of the Administration</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idCA53E53898E0470AAE1B74E465FE68BB"><enum>(iii)</enum><text display-inline="yes-display-inline">in subparagraph (B) by striking
<quote>current</quote>;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idA42B5FBA338C4D518AA2C1709F127669"><enum>(iv)</enum><text display-inline="yes-display-inline">in subparagraph (C), by striking
<quote>current</quote>; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id818F3B8E3B3547688CE50346777CEADE"><enum>(v)</enum><text display-inline="yes-display-inline">by striking <quote>small businesses</quote>
each place that term appears and inserting <quote>small business
concerns</quote>;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD1C795000249405798A8EA725585BBFF"><enum>(J)</enum><text display-inline="yes-display-inline">in paragraph (8), as so redesignated, by
striking and at the end;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa78aa80954504cecb654cf5687f8660c"><enum>(K)</enum><text display-inline="yes-display-inline">in paragraph (9), as so
redesignated—</text>
<clause commented="no" display-inline="no-display-inline" id="idECCC021E36C54B91BC8C3A1F9AAAB370"><enum>(i)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph
(A)—</text>
<subclause commented="no" display-inline="no-display-inline" id="ID07827cd5bc09485a98ab46e267f9cbac"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>full-time export
development specialists to each Administration regional office and
assigning</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID332c03b0a32044259dabf8e74b770cf3"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>person in each district
office. Such specialists</quote> and inserting <quote>individual in each
district office and providing each Administration regional office with a
full-time export development specialist, who</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id900A008C74DC477F9653CA563051EB89"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<subclause commented="no" display-inline="no-display-inline" id="id6F9DB8D2D11E4689AA128CAA9F50325E"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>current</quote>;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id48D38AEE14D1477F88305C1B2F9A37AF"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>with</quote> and
inserting <quote>in</quote>;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDbb412155b65342cca2382bbd387ad637"><enum>(iii)</enum><text display-inline="yes-display-inline">in subparagraph (D)—</text>
<subclause commented="no" display-inline="no-display-inline" id="id18CCA8DDB57A471E9509FBC57630548D"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>Administration personnel
involved in granting</quote> and inserting <quote>personnel of the
Administration involved in making</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id3FF9FC130E934A40AB14720110ACDBAC"><enum>(II)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> at the
end;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDda5c1e5bfe1346e0804cdfaf9f858c40"><enum>(iv)</enum><text display-inline="yes-display-inline">in subparagraph (E)—</text>
<subclause commented="no" display-inline="no-display-inline" id="id7246360C800D42B487A4C05FC910B817"><enum>(I)</enum><text display-inline="yes-display-inline">by striking <quote>small businesses'
needs</quote> and inserting <quote>the needs of small business
concerns</quote>; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id29878B82786E4DE7A90C9EF0758C1C97"><enum>(II)</enum><text display-inline="yes-display-inline">by striking the period at the end and
inserting a semicolon;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="ID106da6cf85f04acfbddfa64a495bbf71"><enum>(v)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE50FAA16F16D4CF6A6AD6E6D6D5A966C" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="ID7a4c5bbd188343939860ea607b4a3621"><enum>(F)</enum><text display-inline="yes-display-inline">participate, jointly with employees of the
Office, in an annual training program that focuses on current small business
needs for exporting; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID93f466d0219e4a18b76d0fa8a83a0c12"><enum>(G)</enum><text display-inline="yes-display-inline">develop and conduct training programs for
exporters and lenders, in cooperation with the Export Assistance Centers, the
Department of Commerce, the Department of Agriculture, small business
development centers, women's business centers, the Export-Import Bank of the
United States, the Overseas Private Investment Corporation, and other relevant
Federal agencies;</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</clause><clause commented="no" display-inline="no-display-inline" id="id03D77C449E644BE49643B7DBC3DE8936"><enum>(vi)</enum><text display-inline="yes-display-inline">by striking <quote>small businesses</quote>
each place that term appears and inserting <quote>small business
concerns</quote>; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF5B6468F839C46C097CCA3EDCC0AC693"><enum>(L)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id69B2B9C42F524882AD830C1409A76697" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id9C49C64D08384E35B168707D56FA487F"><enum>(10)</enum><text display-inline="yes-display-inline">make available on the website of the
Administration the name and contact information of each individual described in
paragraph (9);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA118B94A769D439AA3FCEBD2AF74429F"><enum>(11)</enum><text display-inline="yes-display-inline">carry out a nationwide marketing effort
using technology, online resources, training, and other strategies to promote
exporting as a business development opportunity for small business
concerns;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5DC26D62C80B448293CFDC084694B048"><enum>(12)</enum><text display-inline="yes-display-inline">disseminate information to the small
business community through regional and district offices of the Administration,
the small business development center network, Export Assistance Centers, the
network of women's business centers, chapters of the Service Corps of Retired
Executives authorized by section 8(b)(1), State and local export promotion
programs, and partners in the private sector regarding exporting trends,
market-specific growth, industry trends, and prospects for exporting;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA315A2EC041E44E786C6E48C2D001E4D"><enum>(13)</enum><text display-inline="yes-display-inline">establish and carry out training programs
for the staff of the regional and district offices of the Administration and
resource partners of the Administration on export promotion and providing
assistance relating to
exports.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID8015ca327c244461ac9873e86b47fea5"><enum>(3)</enum><text display-inline="yes-display-inline">in subsection (d)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDa0bbd8e7f62645ce83fb6e46b83870ee"><enum>(A)</enum><text display-inline="yes-display-inline">by redesignating paragraphs (1) through (5)
as clauses (i) through (v), respectively, and adjusting the margins
accordingly;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa20cb07c6a014c03ac19556592766c3a"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>(d) The Office</quote>
and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF9FB5342BE4D4880B58E4F8FD67210BD" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id453B04FF268C4AA1BFAAA67F438024EC"><enum>(d)</enum><header display-inline="yes-display-inline">Export financing programs</header>
<paragraph commented="no" display-inline="no-display-inline" id="id263F342BBE41404F94D9D0D3A6096B7D"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Associate
Administrator</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID54b3444178a3484fb56b42a5d14bcf41"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>To accomplish this goal,
the Office shall work</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5C81D58FFCE04FF287A6E3220DC77C61" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id45ECFE8807754C35980407C34A4A2A11"><enum>(2)</enum><header display-inline="yes-display-inline">Trade finance specialist</header><text display-inline="yes-display-inline">To accomplish the goal established under
paragraph (1), the Associate Administrator shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDe197db93531a4e35963be8a676234033"><enum>(A)</enum><text display-inline="yes-display-inline">designate at least 1 individual within the
Administration as a trade finance specialist to oversee international loan
programs and assist Administration employees with trade finance issues;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDf6d122a41185446c87d3228730989126"><enum>(B)</enum><text display-inline="yes-display-inline">work</text>
</subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDdb6b9e256ef7410db9b2ff3add2721ec"><enum>(4)</enum><text display-inline="yes-display-inline">in subsection (e), by striking <quote>(e)
The Office</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id016818F3BAD44805A4A401196663A6B1" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id66DDD43040CA410DA830B169624EEC91"><enum>(e)</enum><header display-inline="yes-display-inline">Trade
Remedies</header><text display-inline="yes-display-inline">The Associate
Administrator</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb6568742f0154baf8758ea3e1de74d9a"><enum>(5)</enum><text display-inline="yes-display-inline">by amending subsection (f) to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idBCA150A041BB4F60B50B0C1B8500D709" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="ID7c23a8d914cb4da8970cf41467e3b377"><enum>(f)</enum><header display-inline="yes-display-inline">Reporting requirement</header><text display-inline="yes-display-inline">The Associate Administrator shall submit an
annual report to the Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business of the House of Representatives that
contains—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDd4be41934f1f4901b808015d0718d96d"><enum>(1)</enum><text display-inline="yes-display-inline">a description of the progress of the Office
in implementing the requirements of this section;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBC424E3F43434590AE87896512029436"><enum>(2)</enum><text display-inline="yes-display-inline">a detailed account of the results of export
growth activities of the Administration, including the activities of each
district and regional office of the Administration, based on the performance
measures described in subsection (i);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3259BB5216904E3FAF5EEF1F1D85827B"><enum>(3)</enum><text display-inline="yes-display-inline">an estimate of the total number of jobs
created or retained as a result of export assistance provided by the
Administration and resource partners of the Administration;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc947da1f98f44618b4f50c7299978d76"><enum>(4)</enum><text display-inline="yes-display-inline">for any travel by the staff of the Office,
the destination of such travel and the benefits to the Administration and to
small business concerns resulting from such travel; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6cdcdcf21b7a44a0a730f797a89651b5"><enum>(5)</enum><text display-inline="yes-display-inline">a description of the participation by the
Office in trade
negotiations.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDbf05a110e6424c7fadda14b82eba1952"><enum>(6)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>(g)
The Office</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF0EA1A409BDD4BCE80E8E1E5F1CE3AC9" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id0FD876F66EDC4A2094A7B98244639F3A"><enum>(g)</enum><header display-inline="yes-display-inline">Studies</header><text display-inline="yes-display-inline">The Associate
Administrator</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID52bf5ab84d7e4015854011a83e25a8eb"><enum>(7)</enum><text display-inline="yes-display-inline">by adding after subsection (h), as added by
section 1203 of this subtitle, the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6437ED87F63B475CA92191A040C91FE6" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idE4CB3B013ED047E4B4DD698BA1192E36"><enum>(i)</enum><header display-inline="yes-display-inline">Export and trade counseling</header>
<paragraph commented="no" display-inline="no-display-inline" id="idE052FC0E05A74AB4A2395B817EB0EBD6"><enum>(1)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">In this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id42103DAF306C4F8EA1C32B6B55C64511"><enum>(A)</enum><text display-inline="yes-display-inline">the term <term>lead small business
development center</term> means a small business development center that has
received a grant from the Administration; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD6B1C8D7BDB5408994643EFB808B79A4"><enum>(B)</enum><text display-inline="yes-display-inline">the term <term>lead women's business
center</term> means a women's business center that has received a grant from
the Administration.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3D78656E32C44AF084D985DE33BB2F45"><enum>(2)</enum><header display-inline="yes-display-inline">Certification program</header><text display-inline="yes-display-inline">The Administrator shall establish an export
and trade counseling certification program to certify employees of lead small
business development centers and lead women's business centers in providing
export assistance to small business concerns.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9341BE50E6134E6093CA394B8FA2E4A8"><enum>(3)</enum><header display-inline="yes-display-inline">Number of certified employees</header><text display-inline="yes-display-inline">The Administrator shall ensure that the
number of employees of each lead small business development center who are
certified in providing export assistance is not less than the lesser of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idDF703120C7964A1FBC1CE2D814E612A0"><enum>(A)</enum><text display-inline="yes-display-inline">5; or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD39B765D8A9D4C03ACC667453EE77E47"><enum>(B)</enum><text display-inline="yes-display-inline">10 percent of the total number of employees
of the lead small business development center.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC938DD0765F54783915DC2178A48E917"><enum>(4)</enum><header display-inline="yes-display-inline">Reimbursement for certification</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id0C6D8E86ADD44EBF955A1F837E0B2769"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subject to the availability of
appropriations, the Administrator shall reimburse a lead small business
development center or a lead women's business center for costs relating to the
certification of an employee of the lead small business center or lead women's
business center in providing export assistance under the program established
under paragraph (2).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id906DBE516FCB499CA273718816E5ED92"><enum>(B)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">The total amount reimbursed by the
Administrator under subparagraph (A) may not exceed $350,000 in any fiscal
year.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID87e29070bec94558b6a77c6bc0262ed2"><enum>(j)</enum><header display-inline="yes-display-inline">Performance measures</header>
<paragraph commented="no" display-inline="no-display-inline" id="idA6F0ACD3416D4283AA5F00A8CC6B3876"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Associate Administrator shall develop
performance measures for the Administration to support export growth goals for
the activities of the Office under this section that include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idA28B22EECCF64510B55584BB7ADE986F"><enum>(A)</enum><text display-inline="yes-display-inline">the number of small business concerns
that—</text>
<clause commented="no" display-inline="no-display-inline" id="idE4E1351AA264429D8FB9A22E32332AC9"><enum>(i)</enum><text display-inline="yes-display-inline">receive assistance from the
Administration;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id1D2A0047C73B4ACE8AE128FE844216A4"><enum>(ii)</enum><text display-inline="yes-display-inline">had not exported goods or services before
receiving the assistance described in clause (i); and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7B615C3F19064E3BA754194883F664BC"><enum>(iii)</enum><text display-inline="yes-display-inline">export goods or services;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8A1D075E6D1B46E3BDF55E9159590EB5"><enum>(B)</enum><text display-inline="yes-display-inline">the number of small business concerns
receiving assistance from the Administration that export goods or services to a
market outside the United States into which the small business concern did not
export before receiving the assistance;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE135956060E0438CB960ED5355A48DC4"><enum>(C)</enum><text display-inline="yes-display-inline">export revenues by small business concerns
assisted by programs of the Administration;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0AAA1CF20371495CB85A54E092A53392"><enum>(D)</enum><text display-inline="yes-display-inline">the number of small business concerns
referred to an Export Assistance Center or a small business development center
by the staff of the Office;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id668BF8320EC44017B442EAE78346C18B"><enum>(E)</enum><text display-inline="yes-display-inline">the number of small business concerns
referred to the Administration by an Export Assistance Center or a small
business development center; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE5B2764040FA4CA4B64320728E4D9160"><enum>(F)</enum><text display-inline="yes-display-inline">the number of small business concerns
referred to the Department of Commerce, the Department of Agriculture, the
Department of State, the Export-Import Bank of the United States, the Overseas
Private Investment Corporation, or the United States Trade and Development
Agency by the staff of the Office, an Export Assistance Center, or a small
business development center.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4D207CAEC0B84E328A17E8E519D5DF3D"><enum>(2)</enum><header display-inline="yes-display-inline">Joint performance measures</header><text display-inline="yes-display-inline">The Associate Administrator shall develop
joint performance measures for the district offices of the Administration and
the Export Assistance Centers that include the number of export loans made
under—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id53DB571826AE4A1D9F651FED8E19C82A"><enum>(A)</enum><text display-inline="yes-display-inline">section 7(a)(16);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA25A44EE641C4D88891A7CAD4A3F3081"><enum>(B)</enum><text display-inline="yes-display-inline">the Export Working Capital Program
established under section 7(a)(14);</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD880601E2196470694980BF9E4A78D98"><enum>(C)</enum><text display-inline="yes-display-inline">the Preferred Lenders Program, as defined
in section 7(a)(2)(C)(ii); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE7F5DD62D63540F8A69E5B27F008157B"><enum>(D)</enum><text display-inline="yes-display-inline">the export express program established
under section 7(a)(34).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id57A1B5C9F4EC4F1D9FFC8D075CD7E9BD"><enum>(3)</enum><header display-inline="yes-display-inline">Consistency of tracking</header><text display-inline="yes-display-inline">The Associate Administrator, in
coordination with the departments and agencies that are represented on the
Trade Promotion Coordinating Committee established under section 2312 of the
Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small business
development center network, shall develop a system to track exports by small
business concerns, including information relating to the performance measures
developed under paragraph (1), that is consistent with systems used by the
departments and agencies and the
network.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idE8F144FA3A5540B4B509B5ABF8FB0AFB"><enum>(b)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than 60 days after the date of
enactment of this Act, 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 on any travel by the staff of the
Office of International Trade of the Administration, during the period
beginning on October 1, 2004, and ending on the date of enactment of the Act,
including the destination of such travel and the benefits to the Administration
and to small business concerns resulting from such travel.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idA926520DE5C0473D99C7B17EFAA7C313" section-type="subsequent-section"><enum>1205.</enum><header display-inline="yes-display-inline">Export assistance centers</header>
<subsection commented="no" display-inline="no-display-inline" id="idB050C32F922843D19AAFAB6AB0A3D802"><enum>(a)</enum><header display-inline="yes-display-inline">Export assistance centers</header><text display-inline="yes-display-inline">Section 22 of the Small Business Act (15
U.S.C. 649), as amended by this subtitle, is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id461EB4EF578A47B8887E52FA51B76A47" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id69E6B6AF25654339BF1F02DB2B7856DA"><enum>(k)</enum><header display-inline="yes-display-inline">Export assistance centers</header>
<paragraph commented="no" display-inline="no-display-inline" id="idB79F37C22C2C45488CE59292B6E31B47"><enum>(1)</enum><header display-inline="yes-display-inline">Export finance specialists</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id4D4E946E4F474DA0880477080A4484E5"><enum>(A)</enum><header display-inline="yes-display-inline">Minimum number of export finance
specialists</header><text display-inline="yes-display-inline">On and after the
date that is 90 days after the date of enactment of this subsection, the
Administrator, in coordination with the Secretary of Commerce, shall ensure
that the number of export finance specialists is not less than the number of
such employees so assigned on January 1, 2003.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0C6AAAB4AC4A4EECB28D521DED8930BF"><enum>(B)</enum><header display-inline="yes-display-inline">Export finance specialists assigned to each
region of the Administration</header><text display-inline="yes-display-inline">On and after the date that is 2 years after
the date of enactment of this subsection, the Administrator, in coordination
with the Secretary of Commerce, shall ensure that there are not fewer than 3
export finance specialists in each region of the Administration.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID32db7392e64743db8cd58bbf83a81f09"><enum>(2)</enum><header display-inline="yes-display-inline">Placement of export finance
specialists</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id5363A5CE6A0449EB9BF77797D753D0CA"><enum>(A)</enum><header display-inline="yes-display-inline">Priority</header><text display-inline="yes-display-inline">The Administrator shall give priority, to
the maximum extent practicable, to placing employees of the Administration at
any Export Assistance Center that—</text>
<clause commented="no" display-inline="no-display-inline" id="idB10F2B1B5CEB4304BD9D9D5AC7BC3BAF"><enum>(i)</enum><text display-inline="yes-display-inline">had an Administration employee assigned to
the Export Assistance Center before January 2003; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id86D5E2D5B80A4895963301B872B32167"><enum>(ii)</enum><text display-inline="yes-display-inline">has not had an Administration employee
assigned to the Export Assistance Center during the period beginning January
2003, and ending on the date of enactment of this subsection, either through
retirement or reassignment.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDe76a588c832c4fed89790c37b9919cb4"><enum>(B)</enum><header display-inline="yes-display-inline">Needs of exporters</header><text display-inline="yes-display-inline">The Administrator shall, to the maximum
extent practicable, strategically assign Administration employees to Export
Assistance Centers, based on the needs of exporters.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id86F656D4780A42D8898F2858B3C77B93"><enum>(C)</enum><header display-inline="yes-display-inline">Rule of construction</header><text display-inline="yes-display-inline">Nothing in this subsection may be construed
to require the Administrator to reassign or remove an export finance specialist
who is assigned to an Export Assistance Center on the date of enactment of this
subsection.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id50C5182D3D9F40B9A3C6496A4B2F1EB5"><enum>(3)</enum><header display-inline="yes-display-inline">Goals</header><text display-inline="yes-display-inline">The Associate Administrator shall work with
the Department of Commerce, the Export-Import Bank of the United States, and
the Overseas Private Investment Corporation to establish shared annual goals
for the Export Assistance Centers.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID1164c58fb16a483fb23a9c37fde9d244"><enum>(4)</enum><header display-inline="yes-display-inline">Oversight</header><text display-inline="yes-display-inline">The Associate Administrator shall designate
an individual within the Administration to oversee all activities conducted by
Administration employees assigned to Export Assistance Centers.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5D918D6E447D42E690ECF337C77C0728"><enum>(l)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id0252B324B39249E5BF1D344B39787870"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>Associate
Administrator</term> means the Associate Administrator for International Trade
described in subsection (a)(2);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1DCD634AD9874B2787153757AB647357"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>Export Assistance
Center</term> means a one-stop shop for United States exporters established by
the United States and Foreign Commercial Service of the Department of Commerce
pursuant to section 2301(b)(8) of the Omnibus Trade and Competitiveness Act of
1988 (15 U.S.C. 4721(b)(8));</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id026999BF6C9E419DBA1627C3E20D848B"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>export finance
specialist</term> means a full-time equivalent employee of the Office assigned
to an Export Assistance Center to carry out the duties described in subsection
(e); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE49DCE8C710848E8BF2522C28742C3B1"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>Office</term> means the
Office of International Trade established under subsection
(a)(1).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id3CD7FFA2204A42EB8EEAE863BC91258C"><enum>(b)</enum><header display-inline="yes-display-inline">Study and report on filling gaps in
high-and-Low-Export volume areas</header>
<paragraph commented="no" display-inline="no-display-inline" id="id1AE3E588E8A14567B9CC6129FF47B7A1"><enum>(1)</enum><header display-inline="yes-display-inline">Study and report</header><text display-inline="yes-display-inline">Not later than 6 months after the date of
enactment of this Act, and every 2 years thereafter, the Administrator
shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idEE81F45C954F48CEBD749FB3A45830FC"><enum>(A)</enum><text display-inline="yes-display-inline">conduct a study of—</text>
<clause commented="no" display-inline="no-display-inline" id="idF0C849CD3E094DE3B07C43A2F4CA0464"><enum>(i)</enum><text display-inline="yes-display-inline">the volume of exports for each
State;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5F48FBB6CB8C440DAE46D40E0D0D6CC5"><enum>(ii)</enum><text display-inline="yes-display-inline">the availability of export finance
specialists in each State;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idEE8506F2DDB94F3299EAE3172E1337CB"><enum>(iii)</enum><text display-inline="yes-display-inline">the number of exporters in each State that
are small business concerns;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5C39EDEBC94A49C6B7C2C592D55A8386"><enum>(iv)</enum><text display-inline="yes-display-inline">the percentage of exporters in each State
that are small business concerns;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idB42DD78E967C45128D74810E181994AC"><enum>(v)</enum><text display-inline="yes-display-inline">the change, if any, in the number of
exporters that are small business concerns in each State—</text>
<subclause commented="no" display-inline="no-display-inline" id="id3CAB363CC50742A98043F341F2EDD3A4"><enum>(I)</enum><text display-inline="yes-display-inline">for the first study conducted under this
subparagraph, during the 10-year period ending on the date of enactment of this
Act; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id1E8384536F604EB28D65312B48E1ECD5"><enum>(II)</enum><text display-inline="yes-display-inline">for each subsequent study, during the
10-year period ending on the date the study is commenced;</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id088E6BEABF6F4E2FB095AFAB6B6BE4C4"><enum>(vi)</enum><text display-inline="yes-display-inline">the total value of the exports in each
State by small business concerns;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id3A307C7BE38D4010A4AA8E47EB0CA04E"><enum>(vii)</enum><text display-inline="yes-display-inline">the percentage of the total volume of
exports in each State that is attributable to small business concerns;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id90F90A9BE8274AE88F3E45C1A0014A69"><enum>(viii)</enum><text display-inline="yes-display-inline">the change, if any, in the percentage of
the total volume of exports in each State that is attributable to small
business concerns—</text>
<subclause commented="no" display-inline="no-display-inline" id="id95B918383AB940A48E83F824E84F7F3C"><enum>(I)</enum><text display-inline="yes-display-inline">for the first study conducted under this
subparagraph, during the 10-year period ending on the date of enactment of this
Act; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id7F6C2F1390484D3D97FC526427B139C2"><enum>(II)</enum><text display-inline="yes-display-inline">for each subsequent study, during the
10-year period ending on the date the study is commenced; and</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID5f30f948fd274909804890acf64afdd7"><enum>(B)</enum><text display-inline="yes-display-inline">submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business of the
House of Representatives a report containing—</text>
<clause commented="no" display-inline="no-display-inline" id="ID48bde34d23ec4f4b9f9752f733441612"><enum>(i)</enum><text display-inline="yes-display-inline">the results of the study under subparagraph
(A);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDe0eeb2dc0bfb4dc49b2d183f0a3d5ba9"><enum>(ii)</enum><text display-inline="yes-display-inline">to the extent practicable, a recommendation
regarding how to eliminate gaps between the supply of and demand for export
finance specialists in the 15 States that have the greatest volume of exports,
based upon the most recent data available from the Department of
Commerce;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDedbe1d1f4491401b8109df72c053b123"><enum>(iii)</enum><text display-inline="yes-display-inline">to the extent practicable, a recommendation
regarding how to eliminate gaps between the supply of and demand for export
finance specialists in the 15 States that have the lowest volume of exports,
based upon the most recent data available from the Department of Commerce;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID5138cbaa96534a22a64a701ee43b755e"><enum>(iv)</enum><text display-inline="yes-display-inline">such additional information as the
Administrator determines is appropriate.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEF64BB7699324767BFB08EBF1C18278B"><enum>(2)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">In this subsection, the term <term>export
finance specialist</term> has the meaning given that term in section 22(l) of
the Small Business Act, as added by this title.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idA93F642C39A34864B229B617B6E2520F" section-type="subsequent-section"><enum>1206.</enum><header display-inline="yes-display-inline">International trade finance
programs</header>
<subsection commented="no" display-inline="no-display-inline" id="idF513196112E846AF8F9C1CCDB39EDF65"><enum>(a)</enum><header display-inline="yes-display-inline">Loan limits</header>
<paragraph commented="no" display-inline="no-display-inline" id="idB65A067B1FA24E899E6FB66FEDA3C45B"><enum>(1)</enum><header display-inline="yes-display-inline">Total amount outstanding</header><text display-inline="yes-display-inline">Section 7(a)(3)(B) of the Small Business
Act (15 U.S.C. 636(a)(3)(B)) is amended by striking <quote>$1,750,000, of which
not more than $1,250,000</quote> and inserting <quote>$4,500,000 (or if the
gross loan amount would exceed $5,000,000), of which not more than
$4,000,000</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC0E12CAFF7E3428AA67B920E771928EF"><enum>(2)</enum><header display-inline="yes-display-inline">Participation</header><text display-inline="yes-display-inline">Section 7(a)(2) of the Small Business Act
(15 U.S.C. 636(a)(2)) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id04F20141FB874A1691A608FB81AB7E4D"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), in the matter
preceding clause (i), by striking <quote>subparagraph (B)</quote> and inserting
<quote>subparagraphs (B), (D), and (E)</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDB37C0539D6E4D44805C7A8A8775A8E1"><enum>(B)</enum><text display-inline="yes-display-inline">in subparagraph (D), by striking
<quote>Notwithstanding subparagraph (A), in</quote> and inserting
<quote>In</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id20CD03F4D9094C4F8F688DDB63626B50"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6557EE3ECDE947FCB080BEBB09348D28" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id7A10E796A67243E6916A028F605DE32A"><enum>(E)</enum><header display-inline="yes-display-inline">Participation in international trade
loan</header><text display-inline="yes-display-inline">In an agreement to
participate in a loan on a deferred basis under paragraph (16), the
participation by the Administration may not exceed 90
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC4B56307603B4B559B848626B64CF925"><enum>(b)</enum><header display-inline="yes-display-inline">Working capital</header><text display-inline="yes-display-inline">Section 7(a)(16)(A) of the Small Business
Act (15 U.S.C. 636(a)(16)(A)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDC578D8648054C5993F83D7E99C2A3EF"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding clause (i), by
striking <quote>in—</quote> and inserting <quote>—</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF7AACA6F1BCB498A988A14434B6C92FF"><enum>(2)</enum><text display-inline="yes-display-inline">in clause (i)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3BE4037E44724B578AA2D114DBB37739"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>in</quote> after
<quote>(i)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idBD22C340B9104CCAB45832FE33938721"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the
end;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1A9279E9C7D34166AE936577A62CAA48"><enum>(3)</enum><text display-inline="yes-display-inline">in clause (ii)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idA9C46D003E8F4EF29A8455DD021EB032"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>in</quote> after
<quote>(ii)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC9AAB5DAB6484A82A1BF9ECCAB2A9ECF"><enum>(B)</enum><text display-inline="yes-display-inline">by striking the period at the end and
inserting <quote>, including any debt that qualifies for refinancing under any
other provision of this subsection; or</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6FA7A0E23A584EDBA8EC6496855DE07C"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id764CD7BD72A14E4FAF90AF536F041862" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idAAF93464F86641DEB33AEB1AB9DD351D"><enum>(iii)</enum><text display-inline="yes-display-inline">by providing working
capital.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id35FA86C248614714A1DC0F5104803A5E"><enum>(c)</enum><header display-inline="yes-display-inline">Collateral</header><text display-inline="yes-display-inline">Section 7(a)(16)(B) of the Small Business
Act (15 U.S.C. 636(a)(16)(B)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id6C5AD33281894CFF9B3DD3F30172E37C"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>Each loan</quote> and
inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6E50BA8EBD164841A784320114D46682" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idF22C9631D1F8412A987B3841A6CAA4D2"><enum>(i)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in clause (ii), each
loan</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6F67B6223DD6499C97757045A8DB5D65"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0EC03FDAF36A427F8463472206893E2A" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idE5759B0BB6B64D8986CE3600BE348341"><enum>(ii)</enum><header display-inline="yes-display-inline">Exception</header><text display-inline="yes-display-inline">A loan under this paragraph may be secured
by a second lien position on the property or equipment financed by the loan or
on other assets of the small business concern, if the Administrator determines
the lien provides adequate assurance of the payment of the
loan.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id9B76D075AF2C4EFF82A7E61BD1BE32B0"><enum>(d)</enum><header display-inline="yes-display-inline">Export working capital
program</header><text display-inline="yes-display-inline">Section 7(a) of the
Small Business Act (15 U.S.C. 636(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idCB928DF15A8948EEAF97136C90F8B652"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)(D), by striking <quote>not
exceed</quote> and inserting <quote>be</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2A41E1722C714CC2A3029B79AC8D635E"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (14)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idA71E8306519342A2B26969B0765C2345"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>(A) The
Administration</quote> and inserting the following: “<header-in-text level="paragraph" style="OLC">Export working capital
program</header-in-text>.—</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1EA2338EF5FE4BD0BFE97F5B88AC38BB" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id269FF0A58DC441E097445DCD6AC981F1"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The
Administrator</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFF8B794AC7464148830890378F8186DE"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>(B) When
considering</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idAAFC38113DA5482395413731A717A793" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id1B52241BF6EE4567B9CF61A840E2E5E3"><enum>(C)</enum><header display-inline="yes-display-inline">Considerations</header><text display-inline="yes-display-inline">When
considering</text>
</subparagraph><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id578309475F1244CF820B626E37220949"><enum>(C)</enum><text display-inline="yes-display-inline">by striking <quote>(C) The
Administration</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE0BB64F9EDE846AC885CC933883BCD78" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id7E44EE1597864358A28DAF0C3244BC7F"><enum>(D)</enum><header display-inline="yes-display-inline">Marketing</header><text display-inline="yes-display-inline">The
Administrator</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id10B4052093DD4FE1AEA05C2DC343A5C4"><enum>(D)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (A) the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id04A37ABE23674890BEC5672FB3457A4E" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idFA6F872D6BF849EFA1C61E2CC8246B20"><enum>(B)</enum><header display-inline="yes-display-inline">Terms</header>
<clause commented="no" display-inline="no-display-inline" id="idBC79A4C1AFCA429FB6EE4FCCC455551D"><enum>(i)</enum><header display-inline="yes-display-inline">Loan amount</header><text display-inline="yes-display-inline">The Administrator may not guarantee a loan
under this paragraph of more than $5,000,000.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id4F703CDA27BE47468CA3F565047CF032"><enum>(ii)</enum><header display-inline="yes-display-inline">Fees</header>
<subclause commented="no" display-inline="no-display-inline" id="idC311101E5B02448C805E04E3CFC14954"><enum>(I)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For a loan under this paragraph, the
Administrator shall collect the fee assessed under paragraph (23) not more
frequently than once each year.</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id24E48DF34A46405C8B4C48D1860CEA55"><enum>(II)</enum><header display-inline="yes-display-inline">Untapped credit</header><text display-inline="yes-display-inline">The Administrator may not assess a fee on
capital that is not accessed by the small business
concern.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id8885E974219C49109DB84110B55C40D0"><enum>(e)</enum><header display-inline="yes-display-inline">Participation in Preferred Lenders
Program</header><text display-inline="yes-display-inline">Section 7(a)(2)(C) of
the Small Business Act (15 U.S.C. 636(a)(2)(C)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id02CA3D01DE4D491FA22C5E3B9961D667"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating clause (ii) as clause
(iii); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8AC4031267004C8EAE34617854D08CED"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after clause (i) the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8F89E6656B204171A6802896B151D555" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idC7637D3D785F41148FDA8208976AE84A"><enum>(ii)</enum><header display-inline="yes-display-inline">Export-Import Bank lenders</header><text display-inline="yes-display-inline">Any lender that is participating in the
Delegated Authority Lender Program of the Export-Import Bank of the United
States (or any successor to the Program) shall be eligible to participate in
the Preferred Lenders
Program.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idFE074DE63E3B40D5865CE80A89BC1C56"><enum>(f)</enum><header display-inline="yes-display-inline">Export Express Program</header><text display-inline="yes-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 changed="added" display-inline="no-display-inline" id="idE47435DC9B22429FB0CF6F4723790AA2" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idA9AAD97E61104FCD92A224042A1453F2"><enum>(35)</enum><header display-inline="yes-display-inline">Export Express Program</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id51C1B16828BA42D5A88E7C635378BC24"><enum>(A)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this paragraph—</text>
<clause commented="no" display-inline="no-display-inline" id="id25465C79DD5D4DABA04888AEDCD6EF1F"><enum>(i)</enum><text display-inline="yes-display-inline">the term <term>export development
activity</term> includes—</text>
<subclause commented="no" display-inline="no-display-inline" id="IDdf2759b2446142ee8993e47a8bd427ce"><enum>(I)</enum><text display-inline="yes-display-inline">obtaining a standby letter of credit when
required as a bid bond, performance bond, or advance payment guarantee;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID91847ec0ae2f4c0fae3e91159c96761e"><enum>(II)</enum><text display-inline="yes-display-inline">participation in a trade show that takes
place outside the United States;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID32b3024818b046f295b86d8e9eefce99"><enum>(III)</enum><text display-inline="yes-display-inline">translation of product brochures or
catalogues for use in markets outside the United States;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID87e5c308715e42ec8aa554de43a7126a"><enum>(IV)</enum><text display-inline="yes-display-inline">obtaining a general line of credit for
export purposes;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID65463fb5d7fc4d08a8214261dd178dc6"><enum>(V)</enum><text display-inline="yes-display-inline">performing a service contract from buyers
located outside the United States;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID00285af3aa5747e0a553e5484cda1561"><enum>(VI)</enum><text display-inline="yes-display-inline">obtaining transaction-specific financing
associated with completing export orders;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="IDea927d4736704e898317627083faf156"><enum>(VII)</enum><text display-inline="yes-display-inline">purchasing real estate or equipment to be
used in the production of goods or services for export;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID156b3d8489874f8589c1d22da22e7008"><enum>(VIII)</enum><text display-inline="yes-display-inline">providing term loans or other financing to
enable a small business concern, including an export trading company and an
export management company, to develop a market outside the United States;
and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="ID2bcc0c7332d44887b4f226be7369932e"><enum>(IX)</enum><text display-inline="yes-display-inline">acquiring, constructing, renovating,
modernizing, improving, or expanding a production facility or equipment to be
used in the United States in the production of goods or services for export;
and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="idBB50A370E053497088813EE796930A15"><enum>(ii)</enum><text display-inline="yes-display-inline">the term <term>express loan</term> means a
loan in which a lender uses to the maximum extent practicable the loan
analyses, procedures, and documentation of the lender to provide expedited
processing of the loan application.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7EEDB9654E5540EFB3DE72AD71470FB8"><enum>(B)</enum><header display-inline="yes-display-inline">Authority</header><text display-inline="yes-display-inline">The Administrator may guarantee the timely
payment of an express loan to a small business concern made for an export
development activity.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id969A9B2801BC4AA9B512C95A864E3A2B"><enum>(C)</enum><header display-inline="yes-display-inline">Level of participation</header>
<clause commented="no" display-inline="no-display-inline" id="id40E5328454F54EBEB94CDDF7CECD986F"><enum>(i)</enum><header display-inline="yes-display-inline">Maximum
amount</header><text display-inline="yes-display-inline">The maximum amount of
an express loan guaranteed under this paragraph shall be $500,000.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idA398A8D80A734779A30E195569FB0234"><enum>(ii)</enum><header display-inline="yes-display-inline">Percentage</header><text display-inline="yes-display-inline">For an express loan guaranteed under this
paragraph, the Administrator shall guarantee—</text>
<subclause commented="no" display-inline="no-display-inline" id="id52C6DB3CA7A64B5898F37E3303BD0924"><enum>(I)</enum><text display-inline="yes-display-inline">90 percent of a loan that is not more than
$350,000; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idD6D8388E24D64E21B61258F36AA96D6F"><enum>(II)</enum><text display-inline="yes-display-inline">75 percent of a loan that is more than
$350,000 and not more than
$500,000.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCA31D948143E44D9A0F2E559C883374B"><enum>(g)</enum><header display-inline="yes-display-inline">Annual listing of export finance
lenders</header><text display-inline="yes-display-inline">Section 7(a)(16) of
the Small Business Act (15 U.S.C. 636(a)(16)) is amended by adding at the end
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idAB4C3EA9E4E04C0F98F6FD561385278C" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id462197C40304471D9C668A0AA383FEAA"><enum>(F)</enum><header display-inline="yes-display-inline">List of export finance lenders</header>
<clause commented="no" display-inline="no-display-inline" id="ID98638b833fd94a14acff05cd61a7cc4b"><enum>(i)</enum><header display-inline="yes-display-inline">Publication of list required</header><text display-inline="yes-display-inline">The Administrator shall publish an annual
list of the banks and participating lending institutions that, during the
1-year period ending on the date of publication of the list, have made loans
guaranteed by the Administration under—</text>
<subclause commented="no" display-inline="no-display-inline" id="id292676BAE15C4140BF8AE433598B7632"><enum>(I)</enum><text display-inline="yes-display-inline">this paragraph;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idB4A157C1FDE9401FAB0F9EB3564902DD"><enum>(II)</enum><text display-inline="yes-display-inline">paragraph (14); or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idDE848935FE5C48499E213BC10C693F9E"><enum>(III)</enum><text display-inline="yes-display-inline">paragraph (34).</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="IDdaef3f91ff6b4f539b43bcb9b51f8328"><enum>(ii)</enum><header display-inline="yes-display-inline">Availability of list</header><text display-inline="yes-display-inline">The Administrator shall—</text>
<subclause commented="no" display-inline="no-display-inline" id="id5571F8AC4707486FB1974D5AB0EC21B4"><enum>(I)</enum><text display-inline="yes-display-inline">post the list published under clause (i) on
the website of the Administration; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id6B1100678F8D4D3F9CC345D427B4CB57"><enum>(II)</enum><text display-inline="yes-display-inline">make the list published under clause (i)
available, upon request, at each district office of the
Administration.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id13452986F96E48299DF460FF0E8A2583"><enum>(h)</enum><header display-inline="yes-display-inline">Applicability</header><text display-inline="yes-display-inline">The amendments made by subsections (a)
through (f) shall apply with respect to any loan made after the date of
enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id08F1AE31B5BE4B9AA6094CEF140CCDD3" section-type="subsequent-section"><enum>1207.</enum><header display-inline="yes-display-inline">State Trade and Export Promotion Grant
Program</header>
<subsection commented="no" display-inline="no-display-inline" id="ID56fad7eac57d44dd83d4790be2b35906"><enum>(a)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idEC0CA4E358ED4CA1BFC9F1906548B2A4"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>eligible small business
concern</term> means a small business concern that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID9645d2dc05564e75aef25a19a4fa3237"><enum>(A)</enum><text display-inline="yes-display-inline">has been in business for not less than the
1-year period ending on the date on which assistance is provided using a grant
under this section;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID172a833299664295980777c54f0be004"><enum>(B)</enum><text display-inline="yes-display-inline">is operating profitably, based on
operations in the United States;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDeb622b11dbd54715af46ff11c58f5e66"><enum>(C)</enum><text display-inline="yes-display-inline">has demonstrated understanding of the costs
associated with exporting and doing business with foreign purchasers, including
the costs of freight forwarding, customs brokers, packing and shipping, as
determined by the Associate Administrator; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDfadb98e5dbce472db292221b5ed0d593"><enum>(D)</enum><text display-inline="yes-display-inline">has in effect a strategic plan for
exporting;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id275D1B9FE580430AB08398A421A1087A"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>program</term> means the
State Trade and Export Promotion Grant Program established under subsection
(b);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id202B090DCC8942C1B1FEC9F7708E146D"><enum>(3)</enum><text display-inline="yes-display-inline">the term <term>small business concern owned
and controlled by women</term> has the meaning given that term in section 3 of
the Small Business Act (15 U.S.C. 632);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb4a8bc8836de4ab7b10a4a1265dba826"><enum>(4)</enum><text display-inline="yes-display-inline">the term <term>socially and economically
disadvantaged small business concern</term> has the meaning given that term in
section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 6537(a)(4)(A));
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6ae4d86eddf045cb89e92f84cdf827e2"><enum>(5)</enum><text display-inline="yes-display-inline">the term <term>State</term> means each of
the several States, the District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, Guam, and American Samoa.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID3dd5cf9960e14696a49ff38813c641cc"><enum>(b)</enum><header display-inline="yes-display-inline">Establishment of program</header><text display-inline="yes-display-inline">The Associate Administrator shall establish
a 3-year trade and export promotion pilot program to be known as the State
Trade and Export Promotion Grant Program, to make grants to States to carry out
export programs that assist eligible small business concerns in—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID9fef3eb242df479e8346b62ba6939bb8"><enum>(1)</enum><text display-inline="yes-display-inline">participation in a foreign trade
mission;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID49ffb07a96134406bcb12f1be5a5d51c"><enum>(2)</enum><text display-inline="yes-display-inline">a foreign market sales trip;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID28d1dd0a5e554eb8829e8dff4f339eef"><enum>(3)</enum><text display-inline="yes-display-inline">a subscription to services provided by the
Department of Commerce;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID24f0c640175f4b3980e46a5c1f1ad888"><enum>(4)</enum><text display-inline="yes-display-inline">the payment of website translation
fees;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0db8d1d5d3bd437683009747b2616017"><enum>(5)</enum><text display-inline="yes-display-inline">the design of international marketing
media;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDa972c7dbc4bb4d84bc834c0478ffd7f9"><enum>(6)</enum><text display-inline="yes-display-inline">a trade show exhibition;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc2c9b9b2c55e4bc8acaa6da9e2e179b5"><enum>(7)</enum><text display-inline="yes-display-inline">participation in training workshops;
or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3971a7a77b6e4655be6383da9dec8598"><enum>(8)</enum><text display-inline="yes-display-inline">any other export initiative determined
appropriate by the Associate Administrator.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID0c770c4e83d94d6bbab913d0f2b69e51"><enum>(c)</enum><header display-inline="yes-display-inline">Grants</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID924b99fa3a3f43998785a78f1b81dd25"><enum>(1)</enum><header display-inline="yes-display-inline">Joint review</header><text display-inline="yes-display-inline">In carrying out the program, the Associate
Administrator may make a grant to a State to increase the number of eligible
small business concerns in the State that export or to increase the value of
the exports by eligible small business concerns in the State.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID41198b6b9c264692a1fc3108c8b2f6b7"><enum>(2)</enum><header display-inline="yes-display-inline">Considerations</header><text display-inline="yes-display-inline">In making grants under this section, the
Associate Administrator may give priority to an application by a State that
proposes a program that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID9eb1e47d7b5546a39f3ca96357586f5e"><enum>(A)</enum><text display-inline="yes-display-inline">focuses on eligible small business concerns
as part of an export promotion program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID034f4c1a3ad94642a2638ff8acf61020"><enum>(B)</enum><text display-inline="yes-display-inline">demonstrates success in promoting exports
by—</text>
<clause commented="no" display-inline="no-display-inline" id="IDb98c05e8fda2409d9cfe03eca7d5200b"><enum>(i)</enum><text display-inline="yes-display-inline">socially and economically disadvantaged
small business concerns;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDf266ab06be1446d28d525d99e47dc677"><enum>(ii)</enum><text display-inline="yes-display-inline">small business concerns owned or controlled
by women; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="ID9d043374f99744529981923bda770f3e"><enum>(iii)</enum><text display-inline="yes-display-inline">rural small business concerns;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDab56b28d1f464963bc714e77196dfe14"><enum>(C)</enum><text display-inline="yes-display-inline">promotes exports from a State that is not 1
of the 10 States with the highest percentage of exporters that are small
business concerns, based upon the latest data available from the Department of
Commerce; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDfaf8fd6cf74f46638a3c31484d67cb6a"><enum>(D)</enum><text display-inline="yes-display-inline">promotes new-to-market export opportunities
to the People’s Republic of China for eligible small business concerns in the
United States.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDb14ca77df55047a589218d9ea720d787"><enum>(3)</enum><header display-inline="yes-display-inline">Limitations</header>
<subparagraph commented="no" display-inline="no-display-inline" id="ID0688f5b89075450bac8370305a262566"><enum>(A)</enum><header display-inline="yes-display-inline">Single application</header><text display-inline="yes-display-inline">A State may not submit more than 1
application for a grant under the program in any 1 fiscal year.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa8f9948d638b4a5b945bd984fa2b611e"><enum>(B)</enum><header display-inline="yes-display-inline">Proportion of amounts</header><text display-inline="yes-display-inline">The total value of grants under the program
made during a fiscal year to the 10 States with the highest number of exporters
that are small business concerns, based upon the latest data available from the
Department of Commerce, shall be not more than 40 percent of the amounts
appropriated for the program for that fiscal year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDd20b10cef4d94e739750a7a3216aa075"><enum>(4)</enum><header display-inline="yes-display-inline">Application</header><text display-inline="yes-display-inline">A State desiring a grant under the program
shall submit an application at such time, in such manner, and accompanied by
such information as the Associate Administrator may establish.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID1f08ba808dd944fdab05dbec370207ae"><enum>(d)</enum><header display-inline="yes-display-inline">Competitive basis</header><text display-inline="yes-display-inline">The Associate Administrator shall award
grants under the program on a competitive basis.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID62fad811755e406a8f8a800c6d7fc26e"><enum>(e)</enum><header display-inline="yes-display-inline">Federal share</header><text display-inline="yes-display-inline">The Federal share of the cost of an export
program carried out using a grant under the program shall be—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID3657b03fde154f4e8d9469e08477ac70"><enum>(1)</enum><text display-inline="yes-display-inline">for a State that has a high export volume,
as determined by the Associate Administrator, not more than 65 percent;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc6d9ad0866344b88a8c75b7bb832aeec"><enum>(2)</enum><text display-inline="yes-display-inline">for a State that does not have a high
export volume, as determined by the Associate Administrator, not more than 75
percent.</text>
</paragraph></subsection><subsection id="ID490cf5980b38418c853675b2b1a8e7c2"><enum>(f)</enum><header>Non-Federal
Share</header><text>The non-Federal share of the cost of an export program
carried using a grant under the program shall be comprised of not less than 50
percent cash and not more than 50 percent of indirect costs and in-kind
contributions, except that no such costs or contributions may be derived from
funds from any other Federal program.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDbd1c06f618944b44b8a228bb0ca839bc"><enum>(g)</enum><header display-inline="yes-display-inline">Reports</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID2cf21574671c4d9bafc598b62f59adc5"><enum>(1)</enum><header display-inline="yes-display-inline">Initial
report</header><text display-inline="yes-display-inline">Not later than 120
days after the date of enactment of this Act, the Associate Administrator shall
submit to the Committee on Small Business and Entrepreneurship of the Senate
and the Committee on Small Business of the House of Representatives a report,
which shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID3fa44056ea944270893077611c751e80"><enum>(A)</enum><text display-inline="yes-display-inline">a description of the structure of and
procedures for the program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDaae667f5af6b43888547f213b6fa0b54"><enum>(B)</enum><text display-inline="yes-display-inline">a management plan for the program;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDfd8adf34f9f44b5f8233e1f54b4502c2"><enum>(C)</enum><text display-inline="yes-display-inline">a description of the merit-based review
process to be used in the program.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9fcf5dcef2234e188dba62d53960753d"><enum>(2)</enum><header display-inline="yes-display-inline">Annual
reports</header><text display-inline="yes-display-inline">The Associate
Administrator shall submit an annual report to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business of the
House of Representatives regarding the program, which shall include—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="IDe715afbc2c324eb7bd0f172fe7f3e6b6"><enum>(A)</enum><text display-inline="yes-display-inline">the number and amount of grants made under
the program during the preceding year;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID6ffa46d0b3994f65941d87d9a0b3beed"><enum>(B)</enum><text display-inline="yes-display-inline">a list of the States receiving a grant
under the program during the preceding year, including the activities being
performed with grant; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDb3d05f46a1494934b592903ae3b60a50"><enum>(C)</enum><text display-inline="yes-display-inline">the effect of each grant on exports by
eligible small business concerns in the State receiving the grant.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDeb91ccde6835484d819f06634e526e70"><enum>(h)</enum><header display-inline="yes-display-inline">Reviews by inspector general</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID7e16b5c599c146bfa24849eacc2fb7a8"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Inspector General of the Administration
shall conduct a review of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID763eaff8a8cc4e5eb5e079948b14743a"><enum>(A)</enum><text display-inline="yes-display-inline">the extent to which recipients of grants
under the program are measuring the performance of the activities being
conducted and the results of the measurements; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID4f3a7828f4a14236a0b4a4d131f22f24"><enum>(B)</enum><text display-inline="yes-display-inline">the overall management and effectiveness of
the program.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID27e0a5b874f04cf29af76b3ed6672515"><enum>(2)</enum><header display-inline="yes-display-inline">Report</header><text display-inline="yes-display-inline">Not later than September 30, 2012, the
Inspector General of the Administration shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives a report regarding the review conducted under
paragraph (1).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id7B404519DBA34F6AA9A0E2B7E636AC0C"><enum>(i)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated to carry out the program $30,000,000 for each of
fiscal years 2011, 2012, and 2013.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id21BF7FC1D2754B76AB0ADE56DD7D27BD"><enum>(j)</enum><header display-inline="yes-display-inline">Termination</header><text display-inline="yes-display-inline">The authority to carry out the program
shall terminate 3 years after the date on which the Associate Administrator
establishes the program.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id06AF722A09C7441981048A353701747C" section-type="subsequent-section"><enum>1208.</enum><header display-inline="yes-display-inline">Rural export promotion</header><text display-inline="no-display-inline">Not later than 6 months after the date of
enactment of this Act, the Administrator, in consultation with the Secretary of
Agriculture and the Secretary of Commerce, shall submit to the Committee on
Small Business and Entrepreneurship of the Senate and the Committee on Small
Business of the House of Representatives a report that contains—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0e4d74172e764d68996869528b88158f"><enum>(1)</enum><text display-inline="yes-display-inline">a description of each program of the
Administration that promotes exports by rural small business concerns,
including—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID73264dd409994bceb7af78347e97f754"><enum>(A)</enum><text display-inline="yes-display-inline">the number of rural small business concerns
served by the program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID49d471218c134c75a3475cae12ec4c57"><enum>(B)</enum><text display-inline="yes-display-inline">the change, if any, in the number of rural
small business concerns as a result of participation in the program during the
10-year period ending on the date of enactment of this Act;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa93469dfc81a412dba96f5a8168b693e"><enum>(C)</enum><text display-inline="yes-display-inline">the volume of exports by rural small
business concerns that participate in the program; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID438bf5eafe214b30a20f9b4bdd2529a6"><enum>(D)</enum><text display-inline="yes-display-inline">the change, if any, in the volume of
exports by rural small businesses that participate in the program during the
10-year period ending on the date of enactment of this Act;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3702428307e74af188c91cb2c9dedc47"><enum>(2)</enum><text display-inline="yes-display-inline">a description of the coordination between
programs of the Administration and other Federal programs that promote exports
by rural small business concerns;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID89da493635834fff8fd6c82195c45566"><enum>(3)</enum><text display-inline="yes-display-inline">recommendations, if any, for improving the
coordination described in paragraph (2);</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID9abc4181dcd04359b312821b62ad4071"><enum>(4)</enum><text display-inline="yes-display-inline">a description of any plan by the
Administration to market the international trade financing programs of the
Administration through lenders that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id53FC98D50CAF4F989C1F952B5172910C"><enum>(A)</enum><text display-inline="yes-display-inline">serve rural small business concerns;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id90EDE54A1680454D82C0798C3922CC43"><enum>(B)</enum><text display-inline="yes-display-inline">are associated with financing programs of
the Department of Agriculture;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDaa9acc8cc16a460083746f9714f6be70"><enum>(5)</enum><text display-inline="yes-display-inline">recommendations, if any, for improving
coordination between the counseling programs and export financing programs of
the Administration, in order to increase the volume of exports by rural small
business concerns; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID6749209e90ad469d92b2dea570f203b8"><enum>(6)</enum><text display-inline="yes-display-inline">any additional information the
Administrator determines is necessary.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id59B0D1277A994098B5289A965728AA5D" section-type="subsequent-section"><enum>1209.</enum><header display-inline="yes-display-inline">International trade cooperation by small
business development centers</header><text display-inline="no-display-inline">Section 21(a) of the Small Business Act (15
U.S.C. 648(a)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idDBFD97B244EB43F791F774D81E401162"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>(2) The Small Business
Development Centers</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB5550D1F1B0D429B89B206355FD68399" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id1A06F5D321C34B62B3F62F3E17E307D2"><enum>(2)</enum><header display-inline="yes-display-inline">Cooperation to provide international trade
services</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id211B7516163148D3953944000E84681E"><enum>(A)</enum><header display-inline="yes-display-inline">Information and services</header><text display-inline="yes-display-inline">The small business development
centers</text>
</subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id83C03C8E604F4ECDB97B22ABD774A795"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id7D85A2F84917492791BF725CAA2C2E6A"><enum>(A)</enum><text display-inline="yes-display-inline">in subparagraph (A), as so designated, by
inserting <quote>(including State trade agencies),</quote> after <quote>local
agencies</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idED8BF03EFBDB494AA75589075808DD3F"><enum>(B)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9E5F0A051E9D4D2BB8C449E3FF87CBC1" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id3AFD5ABB46B5415CB7AB63DA41BB8603"><enum>(B)</enum><header display-inline="yes-display-inline">Cooperation with State trade agencies and
Export Assistance Centers</header><text display-inline="yes-display-inline">A
small business development center that counsels a small business concern on
issues relating to international trade shall—</text>
<clause commented="no" display-inline="no-display-inline" id="idEDBCADFE56664FF3B6CBE07B3A093D70"><enum>(i)</enum><text display-inline="yes-display-inline">consult with State trade agencies and
Export Assistance Centers to provide appropriate services to the small business
concern; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idA3B6FA952EA9416897F64166DA6F4E8D"><enum>(ii)</enum><text display-inline="yes-display-inline">as necessary, refer the small business
concern to a State trade agency or an Export Assistance Center for further
counseling or assistance.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id29CEFC0798324E57ACE860D55F1B47C0"><enum>(C)</enum><header display-inline="yes-display-inline">Definition</header><text display-inline="yes-display-inline">In this paragraph, the term <term>Export
Assistance Center</term> has the same meaning as in section
22.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section></subtitle><subtitle id="id8614323B9037404F85FF4A7425E8C751"><enum>C</enum><header>Small business
contracting</header>
<part id="id6A89F38E9B714638882A0ADB387F2935"><enum>I</enum><header>Contract
bundling</header>
<section id="idD876FEE226814985911097674A1A9C09"><enum>1311.</enum><header>Small Business
Act</header><text display-inline="no-display-inline">Section 3 of the Small
Business Act (15 U.S.C. 632), as amended by section 1202, is amended by adding
at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB4829CBC56B049C39CE0DA2F79C9FDB7" reported-display-style="italic" style="OLC">
<subsection id="id556A218290F346429885BBC131ED0481"><enum>(v)</enum><header>Multiple award
contract</header><text>In this Act, the term <term>multiple award
contract</term> means—</text>
<paragraph id="idAB0DB882522D437F913D38BE4062B459"><enum>(1)</enum><text>a multiple award task
order contract or delivery order contract that is entered into under the
authority of sections 303H through 303K of the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 253h through 253k); and</text>
</paragraph><paragraph id="id8D08F556455842AD8592D02E29B64C73"><enum>(2)</enum><text>any other indefinite
delivery, indefinite quantity contract that is entered into by the head of a
Federal agency with 2 or more sources pursuant to the same
solicitation.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9998CE1560344AE7BFDA329F2BE7ACC2"><enum>1312.</enum><header>Leadership and
oversight</header>
<subsection id="id191F5B4C5EC840D1BDF71A17DB9C1D3E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 15 of the
Small Business Act (15 U.S.C. 644) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idFB176F14C6ED4C65B80D75E77172AB58" reported-display-style="italic" style="OLC">
<subsection id="H0FCE8C38FC1249E58799A18B409140A6"><enum>(q)</enum><header>Bundling Accountability
Measures</header>
<paragraph id="H7CBCC2B984C24E41B2F7001197E982F6"><enum>(1)</enum><header>Teaming
requirements</header><text display-inline="yes-display-inline">Each Federal
agency shall include in each solicitation for any multiple award contract above
the substantial bundling threshold of the Federal agency a provision soliciting
bids from any responsible source, including responsible small business concerns
and teams or joint ventures of small business concerns.</text>
</paragraph><paragraph id="H8710F4C6E4A945C696DC42E6B5A22689"><enum>(2)</enum><header>Policies on Reduction
of Contract Bundling</header>
<subparagraph id="id4DDA02755AA84D6296B4DFF47A978D50"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than 1 year
after the date of enactment of this subsection, the Federal Acquisition
Regulatory Council established under section 25(a) of the Office of Federal
Procurement Policy Act (41 U.S.C. 4219(a)) shall amend the Federal Acquisition
Regulation issued under section 25 of such Act to—</text>
<clause id="ID5b26e98ed5e44e5e931c47a02e4a0895"><enum>(i)</enum><text>establish a
Government-wide policy regarding contract bundling, including regarding the
solicitation of teaming and joint ventures under paragraph (1); and</text>
</clause><clause id="IDe94ca7a4e17c4725b5bdb9a33c1a203a"><enum>(ii)</enum><text>require that the policy
established under clause (i) be published on the website of each Federal
agency.</text>
</clause></subparagraph><subparagraph id="id16B49D0619104D519242BEA5CD6AF548"><enum>(B)</enum><header>Rationale for contract
bundling</header><text display-inline="yes-display-inline">Not later than 30
days after the date on which the head of a Federal agency submits data
certifications to the Administrator for Federal Procurement Policy, the head of
the Federal agency shall publish on the website of the Federal agency a list
and rationale for any bundled contract for which the Federal agency solicited
bids or that was awarded by the Federal agency.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE48D2549A94347CDA96A6415BB8B0CE8"><enum>(3)</enum><header display-inline="yes-display-inline">Reporting</header><text>Not later than 90
days after the date of enactment of this subsection, and every 3 years
thereafter, the Administrator shall submit to the Committee on Small Business
and Entrepreneurship of the Senate and the Committee on Small Business of the
House of Representatives a report regarding procurement center representatives
and commercial market representatives, which shall—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD27FC372FB5146C5A4FFD6AAC1F73397"><enum>(A)</enum><text>identify each area for
which the Administration has assigned a procurement center representative or a
commercial market representative;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id179C7574E5504B61BEC68EDE3FE5433C"><enum>(B)</enum><text>explain why the
Administration selected the areas identified under subparagraph (A); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id17193C1C244440C8B0103BCBF474277A"><enum>(C)</enum><text>describe the activities
performed by procurement center representatives and commercial market
representatives.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id11B34F0F76D0479CB1D00792CC67F4BE"><enum>(b)</enum><header>Technical
correction</header><text>Section 15(g) of the Small Business Act (15 U.S.C.
644(g)) is amended by striking <quote>Administrator of the Office of Federal
Procurement Policy</quote> each place it appears and inserting
<quote>Administrator for Federal Procurement Policy</quote>.</text>
</subsection><subsection id="IDd4024a0d45a9466db49fbeeee312b2cf"><enum>(c)</enum><header>Report</header>
<paragraph id="idB90DA0FAFC1C42C6B4A7C2FC3FFADAF7"><enum>(1)</enum><header>In
general</header><text>Not later than 180 days after the date of enactment of
this Act, the Comptroller General of the United States shall submit to Congress
a report regarding the procurement center representative program of the
Administration.</text>
</paragraph><paragraph id="idD04865A90EA8416C884461C354D5C781"><enum>(2)</enum><header>Contents</header><text>The
report submitted under paragraph (1) shall—</text>
<subparagraph id="id43FA4D08A13C4C51A1EAFC944AA8AE0C"><enum>(A)</enum><text>address ways to improve
the effectiveness of the procurement center representative program in helping
small business concerns obtain Federal contracts;</text>
</subparagraph><subparagraph id="id5D561F96B7C7449C9069C6CB42B43095"><enum>(B)</enum><text>evaluate the
effectiveness of procurement center representatives and commercial marketing
representatives; and</text>
</subparagraph><subparagraph id="id2043A50331B54D61AD63483B301738A4"><enum>(C)</enum><text>include recommendations,
if any, on how to improve the procurement center representative program.</text>
</subparagraph></paragraph></subsection><subsection id="ID3df85eb9c1494b0d8e2b5686a9856c23"><enum>(d)</enum><header>Electronic procurement
center representative</header>
<paragraph id="id036BDC9691AB4ECBBCF9F99CA577751E"><enum>(1)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, the Administrator shall implement a 3-year pilot electronic procurement
center representative program.</text>
</paragraph><paragraph id="id0DA4F8157663415F925BFE71A4F4C4AE"><enum>(2)</enum><header>Report</header><text>Not
later than 30 days after the pilot program under paragraph (1) ends, the
Comptroller General of the United States shall submit to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee on Small Business
of the House of Representatives a report regarding the pilot program.</text>
</paragraph></subsection></section><section id="id7730D599B6DB4D58BFB56DF8F57BFCB8"><enum>1313.</enum><header>Consolidation of
contract requirements</header>
<subsection id="idF4587108457E482AA6FC3AEB574BC946"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Small Business
Act (15 U.S.C. 631 et seq.) is amended—</text>
<paragraph id="id61BF6F1E13AD4664B1CD4456166CDE60"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating section 44 as section 45;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFA00E9E5DF7346D9B108D49850EB099A"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after section 43 the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id3B0095C596734FAC98927039DD7BCBDA" reported-display-style="italic" style="OLC">
<section id="HBD593EB2489C4F9BC5DB88BAD33C3A4"><enum>44.</enum><header>Consolidation of
contract requirements</header>
<subsection id="id09BBF6C492FF43E58277A63DBEBB4794"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="id555F4E620E904E43B38C0810C0BE8146"><enum>(1)</enum><text>the term <term>Chief
Acquisition Officer</term> means the employee of a Federal agency designated as
the Chief Acquisition Officer for the Federal agency under section 16(a) of the
Office of Federal Procurement Policy Act (41 U.S.C. 414(a));</text>
</paragraph><paragraph id="idA8AD1580AD01446BB638E3977512A579"><enum>(2)</enum><text>the term
<term>consolidation of contract requirements</term>, with respect to contract
requirements of a Federal agency, means a use of a solicitation to obtain
offers for a single contract or a multiple award contract to satisfy 2 or more
requirements of the Federal agency for goods or services that have been
provided to or performed for the Federal agency under 2 or more separate
contracts lower in cost than the total cost of the contract for which the
offers are solicited; and</text>
</paragraph><paragraph id="idE3CDB00CD80F4F4BA2BA6BD6E1FE415D"><enum>(3)</enum><text>the term <term>senior
procurement executive</term> means an official designated under section 16(c)
of the Office of Federal Procurement Policy Act (41 U.S.C. 414(c)) as the
senior procurement executive for a Federal agency.</text>
</paragraph></subsection><subsection id="id063338B34DFB49A1ABC5C92D6A1B685C"><enum>(b)</enum><header>Policy</header><text>The
head of each Federal agency shall ensure that the decisions made by the Federal
agency regarding consolidation of contract requirements of the Federal agency
are made with a view to providing small business concerns with appropriate
opportunities to participate as prime contractors and subcontractors in the
procurements of the Federal agency.</text>
</subsection><subsection id="H2AFDA1BC49294581FE22709BBEA1B7E"><enum>(c)</enum><header>Limitation on use of
acquisition strategies involving consolidation</header>
<paragraph id="id3729031528B04EE696210986DE46465B"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (4), the head of a Federal agency
may not carry out an acquisition strategy that includes a consolidation of
contract requirements of the Federal agency with a total value of more than
$2,000,000, unless the senior procurement executive or Chief Acquisition
Officer for the Federal agency, before carrying out the acquisition
strategy—</text>
<subparagraph id="HD4CEE7A546DA0353A99ACD86B43EDFC"><enum>(A)</enum><text>conducts market
research;</text>
</subparagraph><subparagraph id="H48A3C4DD42F93EF42ED965B97CF0CFD"><enum>(B)</enum><text>identifies any
alternative contracting approaches that would involve a lesser degree of
consolidation of contract requirements;</text>
</subparagraph><subparagraph id="HD69779E8415491DA3AAC9DBCA49143B"><enum>(C)</enum><text>makes a written
determination that the consolidation of contract requirements is necessary and
justified;</text>
</subparagraph><subparagraph id="id8B75FB4436BC472CB10CF6C59806B5E9"><enum>(D)</enum><text>identifies any negative
impact by the acquisition strategy on contracting with small business concerns;
and</text>
</subparagraph><subparagraph id="ID0c45cfbfccd34e3ea1d30ede277a90f1"><enum>(E)</enum><text>certifies to the head of
the Federal agency that steps will be taken to include small business concerns
in the acquisition strategy.</text>
</subparagraph></paragraph><paragraph id="H4F706568436D910C62F7F4A5CFDE285"><enum>(2)</enum><header>Determination that
consolidation is necessary and justified</header>
<subparagraph id="idB914187C45244B808FBF121B413EBE68"><enum>(A)</enum><header>In
general</header><text>A senior procurement executive or Chief Acquisition
Officer may determine that an acquisition strategy involving a consolidation of
contract requirements is necessary and justified for the purposes of paragraph
(1)(C) if the benefits of the acquisition strategy substantially exceed the
benefits of each of the possible alternative contracting approaches identified
under paragraph (1)(B).</text>
</subparagraph><subparagraph id="idBFF04013EAD64208A16E395DEFB88859"><enum>(B)</enum><header>Savings in
administrative or personnel costs</header><text>For purposes of subparagraph
(A), savings in administrative or personnel costs alone do not constitute a
sufficient justification for a consolidation of contract requirements in a
procurement unless the expected total amount of the cost savings, as determined
by the senior procurement executive or Chief Acquisition Officer, is expected
to be substantial in relation to the total cost of the procurement.</text>
</subparagraph></paragraph><paragraph id="H3012ABA342B6BE728FC66CAAD1DAEDC"><enum>(3)</enum><header>Benefits to be
considered</header><text>The benefits considered for the purposes of paragraphs
(1) and (2) may include cost and, regardless of whether quantifiable in dollar
amounts—</text>
<subparagraph id="H495FCE6243A2F5C2251BFDB34B76FB7"><enum>(A)</enum><text>quality;</text>
</subparagraph><subparagraph id="H3907BA2C49C9D19BB7CB67A4FC8B60F"><enum>(B)</enum><text>acquisition cycle;</text>
</subparagraph><subparagraph id="HE3C27A4D4918D129A32A46B1AAF5BFC"><enum>(C)</enum><text>terms and conditions;
and</text>
</subparagraph><subparagraph id="HC2AD262F48BF52415E7C6DAC43D46A6"><enum>(D)</enum><text>any other benefit.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7F33A11004E74431BD9D7F9076E04517"><enum>(4)</enum><header display-inline="yes-display-inline">Department of Defense</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id803649AB59494230AE1469ECE20F3C27"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Department of Defense and each military
department shall comply with this section until after the date described in
subparagraph (C).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE34C157EE001436EA2048890A28BC85A"><enum>(B)</enum><header>Rule</header><text display-inline="yes-display-inline">After the date described in subparagraph
(C), contracting by the Department of Defense or a military department shall be
conducted in accordance with section 2382 of title 10, United States
Code.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id49A7B9E04AB4473499C363C75139C901"><enum>(C)</enum><header>Date</header><text display-inline="yes-display-inline">The date described in this subparagraph is
the date on which the Administrator determines the Department of Defense or a
military department is in compliance with the Government-wide contracting goals
under section
15.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDF1E3B32D1314E94A7854CE0F59D37D5"><enum>(b)</enum><header>Technical and
conforming amendment</header><text>Section 2382(b)(1) of title 10, United
States Code, is amended by striking <quote>An official</quote> and inserting
<quote>Subject to section 44(c)(4), an official</quote>.</text>
</subsection></section><section id="idCC85826E234B47DFA83D3B3CFD694CFB"><enum>1314.</enum><header>Small business teams
pilot program</header>
<subsection id="idDEE34AF18FD6457696A8E00FEA3EDB88"><enum>(a)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="idFC364614CCCD4CE69BE4993A30460E38"><enum>(1)</enum><text>the term <term>Pilot
Program</term> means the Small Business Teaming Pilot Program established under
subsection (b); and</text>
</paragraph><paragraph id="id91410373C24647378B343264C20CCF3D"><enum>(2)</enum><text>the term <term>eligible
organization</term> means a well-established national organization for small
business concerns with the capacity to provide assistance to small business
concerns (which may be provided with the assistance of the Administrator)
relating to—</text>
<subparagraph id="idBB0715D631824020B23BA2800F3C932E"><enum>(A)</enum><text>customer relations and
outreach;</text>
</subparagraph><subparagraph id="id1AFDCCD797CB473F827B5F2DA52C0724"><enum>(B)</enum><text>team relations and
outreach; and</text>
</subparagraph><subparagraph id="id15945E67A3E74EE2A3D32FD381B22F29"><enum>(C)</enum><text>performance measurement
and quality assurance.</text>
</subparagraph></paragraph></subsection><subsection id="id0E62BB6DD11F4B53805CDD50554D0C55"><enum>(b)</enum><header>Establishment</header><text>The
Administrator shall establish a Small Business Teaming Pilot Program for
teaming and joint ventures involving small business concerns.</text>
</subsection><subsection id="id5BDAD01835FD45C3842732ADFBEF44F4"><enum>(c)</enum><header>Grants</header><text>Under
the Pilot Program, the Administrator may make grants to eligible organizations
to provide assistance and guidance to teams of small business concerns seeking
to compete for larger procurement contracts.</text>
</subsection><subsection id="id4C29DEDBABFB4AEE901EA5C260615AA4"><enum>(d)</enum><header>Contracting
opportunities</header><text>The Administrator shall work with eligible
organizations receiving a grant under the Pilot Program to recommend
appropriate contracting opportunities for teams or joint ventures of small
business concerns.</text>
</subsection><subsection id="IDf01cea9a510346e5afa057cd8fb97cd7"><enum>(e)</enum><header>Report</header><text>Not
later than 1 year before the date on which the authority to carry out the Pilot
Program terminates under subsection (f), the Administrator shall submit 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
effectiveness of the Pilot Program.</text>
</subsection><subsection id="idE09F7C025F5E479D94DC223C49280D5E"><enum>(f)</enum><header>Termination</header><text>The
authority to carry out the Pilot Program shall terminate 5 years after the date
of enactment of this Act.</text>
</subsection><subsection id="id4713AB4E8BA84CC782F06DF7067BA64B"><enum>(g)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated for grants
under subsection (c) $5,000,000 for each of fiscal years 2010 through
2015.</text>
</subsection></section></part><part id="idAF92CBAD5FBA4EDF9446C978FD162C8E"><enum>II</enum><header>Subcontracting
integrity</header>
<section commented="no" id="H3A42D42FC95D4A3CBAEFDEB08B08412E"><enum>1321.</enum><header>Subcontracting
misrepresentations</header><text display-inline="no-display-inline">Not later
than 1 year after the date of enactment of this Act, the Administrator, in
consultation with the Administrator for Federal Procurement Policy, shall
promulgate regulations relating to, and the Federal Acquisition Regulatory
Council established under section 25(a) of the Office of Federal Procurement
Policy Act (41 U.S.C. 421(a)) shall amend the Federal Acquisition Regulation
issued under section 25 of such Act to establish a policy on, subcontracting
compliance relating to small business concerns, including assignment of
compliance responsibilities between contracting offices, small business
offices, and program offices and periodic oversight and review
activities.</text>
</section><section id="H90E9D304230243AF861171896BF2A93F"><enum>1322.</enum><header>Small business
subcontracting improvements</header><text display-inline="no-display-inline">Section 8(d)(6) of the Small Business Act
(15 U.S.C. 637(d)(6)) is amended—</text>
<paragraph id="HEC67F8F227A94AE1A574BAEEA0E007B6"><enum>(1)</enum><text>in subparagraph (E), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="HF13E779D00E24CFFA400E7C27FAC59BA"><enum>(2)</enum><text>in subparagraph (F), by
striking the period at the end and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph commented="no" id="HB5034909F74743118E103CC0E5D2B03C"><enum>(3)</enum><text>by adding at the end, the
following:</text>
<quoted-block changed="added" id="H3729B7FFE4A6426AAEDC4D28AE94B46" reported-display-style="italic" style="OLC">
<subparagraph commented="no" id="H55117FEC92454B43A9288E00F200E844"><enum>(G)</enum><text>a representation that the
offeror or bidder will—</text>
<clause commented="no" id="id63AC95DE697C4CAE8DBB966FAEAE0E80"><enum>(i)</enum><text>make a good faith effort
to acquire articles, equipment, supplies, services, or materials, or obtain the
performance of construction work from the small business concerns used in
preparing and submitting to the contracting agency the bid or proposal, in the
same amount and quality used in preparing and submitting the bid or proposal;
and</text>
</clause><clause commented="no" id="id3EF55FAA705F4B5C8FB9C98428341E86"><enum>(ii)</enum><text>provide to the
contracting officer a written explanation if the offeror or bidder fails to
acquire articles, equipment, supplies, services, or materials or obtain the
performance of construction work as described in clause
(i).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></part><part id="id531287334D724DBDB24A46C08D56E81F"><enum>III</enum><header>Acquisition
process</header>
<section id="idD69F39ABBE3C4BB18805C28AACAFF9A8"><enum>1331.</enum><header>Reservation of prime
contract awards for small businesses</header><text display-inline="no-display-inline">Section 15 of the Small Business Act (15
U.S.C. 644), as amended by this Act, is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id93DA21CED24344D8B6C7BD71D429C092" reported-display-style="italic" style="OLC">
<subsection id="idD6EE4FDF6D4B4687B52E7BD33A55E043"><enum>(r)</enum><header>Multiple award
contracts</header><text>Not later than 1 year after the date of enactment of
this subsection, the Administrator for Federal Procurement Policy and the
Administrator, in consultation with the Administrator of General Services,
shall, by regulation, establish guidance under which Federal agencies may, at
their discretion—</text>
<paragraph id="id17A1357C6D5946C58298114A5290FDAB"><enum>(1)</enum><text>set aside part or parts
of a multiple award contract for small business concerns, including the
subcategories of small business concerns identified in subsection
(g)(2);</text>
</paragraph><paragraph id="id27C414F4242D40239B627321F41F5A77"><enum>(2)</enum><text>notwithstanding the fair
opportunity requirements under section 2304c(b) of title 10, United States
Code, and section 303J(b) of the Federal Property and Administrative Services
Act of 1949 (41 U.S.C. 253j(b)), set aside orders placed against multiple award
contracts for small business concerns, including the subcategories of small
business concerns identified in subsection (g)(2); and</text>
</paragraph><paragraph id="id59C6C22CE1C343FB9DBF80F1EB33F7ED"><enum>(3)</enum><text>reserve 1 or more
contract awards for small business concerns under full and open multiple award
procurements, including the subcategories of small business concerns identified
in subsection
(g)(2).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id0A3C0E6D6AF74585A01C0F21838DF166"><enum>1332.</enum><header>Micro-purchase
guidelines</header><text display-inline="no-display-inline">Not later than 1
year after the date of enactment of this Act, the Director of the Office of
Management and Budget, in coordination with the Administrator of General
Services, shall issue guidelines regarding the analysis of purchase card
expenditures to identify opportunities for achieving and accurately measuring
fair participation of small business concerns in purchases in an amount not in
excess of the micro-purchase threshold, as defined in section 32 of the Office
of Federal Procurement Policy Act (41 U.S.C. 428) (in this section referred to
as <quote>micro-purchases</quote>), consistent with the national policy on
small business participation in Federal procurements set forth in sections 2(a)
and 15(g) of the Small Business Act (15 U.S.C. 631(a) and 644(g)), and
dissemination of best practices for participation of small business concerns in
micro-purchases.</text>
</section><section id="ID8A648E96582E47DE9F7195FA6EEAA817"><enum>1333.</enum><header>Agency
accountability</header><text display-inline="no-display-inline">Section
15(g)(2) of the <act-name parsable-cite="SBA">Small Business Act</act-name> (15
U.S.C. 644(g)(2)) is amended—</text>
<paragraph id="ID0C0912118EE44CCF9BCA1CD76582ACEE"><enum>(1)</enum><text>by inserting
<quote>(A)</quote> after <quote>(2)</quote>;</text>
</paragraph><paragraph id="ID06C1BFFA8A844788A8CE3999B1555312"><enum>(2)</enum><text>by striking “Goals
established” and inserting the following:</text>
<quoted-block changed="added" id="ID040675C6A5C64D1397D0CBC6C09B29D1" reported-display-style="italic" style="OLC">
<subparagraph id="IDB79030F5BE73498B966AFC1884F6B19C" indent="up2"><enum>(B)</enum><text>Goals
established</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDD739858B57024205AE134A763837757D"><enum>(3)</enum><text>by striking
<quote>Whenever</quote> and inserting the following:</text>
<quoted-block changed="added" id="ID82FE9C38173147B1AF7EEDF88DAD063C" reported-display-style="italic" style="OLC">
<subclause id="ID7D225352EE1D491E846593E3BEBD1388" indent="up4"><enum>(C)</enum><text>Whenever</text>
</subclause><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDFB1BD6C236874829AD57AB1CD3F5D6E1"><enum>(4)</enum><text>by striking <quote>For
the purpose of</quote> and inserting the following:</text>
<quoted-block changed="added" id="IDEFA20ACEF05C4865A1355591E72FCEB7" reported-display-style="italic" style="OLC">
<subparagraph id="IDB1D2173F825D4A7680C1036C0CA48094" indent="up2"><enum>(D)</enum><text>For
the purpose
of</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="id642DE447C8B34F639EFE539A9C54B7BC"><enum>(5)</enum><text>by striking <quote>The
head of each Federal agency, in attempting to attain such participation</quote>
and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC82D8484D4854E6E846A27EA8A869908" reported-display-style="italic" style="OLC">
<subparagraph id="id3EA97C6A99A04D5D8AFF5610009143B3" indent="up2"><enum>(E)</enum><text>The
head of each Federal agency, in attempting to attain the participation
described in subparagraph
(D)</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="IDE2246DCDC18848BF8638A5ECD51C59B4"><enum>(6)</enum><text>in subparagraph (E), as
so designated—</text>
<subparagraph id="ID2841967F00214DB7B8A197CE78088B5F"><enum>(A)</enum><text>by striking <quote>(A)
contracts</quote> and inserting <quote>(i) contracts</quote>; and</text>
</subparagraph><subparagraph id="IDDCDE090BCBD6431AB6AB293E4403B456"><enum>(B)</enum><text>by striking <quote>(B)
contracts</quote> and inserting <quote>(ii) contracts</quote>; and</text>
</subparagraph></paragraph><paragraph id="ID51AC0C6F06E2449FB84FD54AE2473A24"><enum>(7)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" id="ID27CDA1CBDC574685888BA961BF30CBCA" reported-display-style="italic" style="OLC">
<subparagraph id="ID03ACE6A61E604DE097314EE226D75AFF" indent="up2"><enum>(F)</enum><clause commented="no" display-inline="yes-display-inline" id="ID3B95D814A19E4CA59F41BC35CA4A73B0"><enum>(i)</enum><text>Each procurement
employee or program manager described in clause (ii) shall communicate to the
subordinates of the procurement employee or program manager the importance of
achieving small business goals.</text>
</clause><clause changed="added" id="IDC4B551D1CBE94B8CBF27E4EFBE1208EF" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>A
procurement employee or program manager described in this clause is a senior
procurement executive, senior program manager, or Director of Small and
Disadvantaged Business Utilization of a Federal agency having contracting
authority.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id0625892FFC584C6A8009EEF91F1224F4"><enum>1334.</enum><header>Payment of
subcontractors</header><text display-inline="no-display-inline">Section 8(d) of
the Small Business Act (15 U.S.C. 637(d)) is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5BF62ED86B414D8BA10C684241B060EC" reported-display-style="italic" style="OLC">
<paragraph id="id40F47970C37441ECAE14342AD057567C" indent="up1"><enum>(12)</enum><header>Payment of
subcontractors</header>
<subparagraph id="idF86357073EBF43B894AA275231950736"><enum>(A)</enum><header>Definition</header><text>In
this paragraph, the term <term>covered contract</term> means a contract
relating to which a prime contractor is required to develop a subcontracting
plan under paragraph (4) or (5).</text>
</subparagraph><subparagraph id="idFD39F302FCB94F99804EA3776C7818BC"><enum>(B)</enum><header>Notice</header>
<clause id="id1E5A1DED45DB49159FB216825C0769AA"><enum>(i)</enum><header>In
general</header><text>A prime contractor for a covered contract shall notify in
writing the contracting officer for the covered contract if the prime
contractor pays a reduced price to a subcontractor for goods and services upon
completion of the responsibilities of the subcontractor or the payment to a
subcontractor is more than 90 days past due for goods or services provided for
the covered contract for which the Federal agency has paid the prime
contractor.</text>
</clause><clause id="id70DCB97E0E584E3BB900E968D8E4F605"><enum>(ii)</enum><header>Contents</header><text>A
prime contractor shall include the reason for the reduction in a payment to or
failure to pay a subcontractor in any notice made under clause (i).</text>
</clause></subparagraph><subparagraph id="id90512ACFEDDC43178B1256DD5243FDEB"><enum>(C)</enum><header>Performance</header><text>A
contracting officer for a covered contract shall consider the unjustified
failure by a prime contractor to make a full or timely payment to a
subcontractor in evaluating the performance of the prime contractor.</text>
</subparagraph><subparagraph id="id724ED7565D36455B9210C88E2111F377"><enum>(D)</enum><header>Control of
funds</header><text>If the contracting officer for a covered contract
determines that a prime contractor has a history of unjustified, untimely
payments to contractors, the contracting officer shall record the identity of
the contractor in accordance with the regulations promulgated under
subparagraph (E).</text>
</subparagraph><subparagraph id="ID8e6c83dd967247f09a8d7be04f638d61"><enum>(E)</enum><header>Regulations</header><text>Not
later than 1 year after the date of enactment of this paragraph, the Federal
Acquisition Regulatory Council established under section 25(a) of the Office of
Federal Procurement Policy Act (41 U.S.C. 421(a)) shall amend the Federal
Acquisition Regulation issued under section 25 of such Act to—</text>
<clause id="idF99DF3C35B5D4B678726F3046F7393D0"><enum>(i)</enum><text>describe the
circumstances under which a contractor may be determined to have a history of
unjustified, untimely payments to subcontractors;</text>
</clause><clause id="idC2A139CE3A834FC98A7DD345AF163851"><enum>(ii)</enum><text>establish a process for
contracting officers to record the identity of a contractor described in clause
(i); and</text>
</clause><clause id="id7116E5F1CE08400EACD424751406D9CA"><enum>(iii)</enum><text>require the identity of
a contractor described in clause (i) to be incorporated in, and made publicly
available through, the Federal Awardee Performance and Integrity Information
System, or any successor
thereto.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id84E1A0AAC1ED46E39A49A0EC7C320CBC"><enum>1335.</enum><header>Repeal of Small
Business Competitiveness Demonstration Program</header>
<subsection id="id33A0D854AEC44A688A9917BED9553631"><enum>(a)</enum><header>In
general</header><text>The Business Opportunity Development Reform Act of 1988
(Public Law 100–656) is amended by striking title VII (15 U.S.C. 644
note).</text>
</subsection><subsection id="id08BB85127EB74EF9A56015E1DA28F042"><enum>(b)</enum><header>Effective date and
applicability</header><text>The amendment made by this section—</text>
<paragraph id="id38506D3E6146464BAE64FB8A170E5BE6"><enum>(1)</enum><text>shall take effect on the
date of enactment of this Act; and</text>
</paragraph><paragraph id="id13422657AA614C6D85EA991B88E8EE35"><enum>(2)</enum><text>apply to the first full
fiscal year after the date of enactment of this Act.</text>
</paragraph></subsection></section></part><part id="id2A4685DECD7743E98D47A4050B2D854A"><enum>IV</enum><header>Small business size and
status integrity</header>
<section id="id64ED1DCF9CE246F2992DEC054DCD4705" section-type="subsequent-section"><enum>1341.</enum><header>Policy and
presumptions</header><text display-inline="no-display-inline">Section 3 of the
Small Business Act (15 U.S.C. 632), as amended by section 1311, is amended by
adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF118493D07264DAEAEAEBF2CF30DA7CF" reported-display-style="italic" style="OLC">
<subsection id="id0BE36131C6BB44F197236C1346990786"><enum>(w)</enum><header>Presumption</header>
<paragraph id="idF023531C736F4CC8AD0F7EF08402B966"><enum>(1)</enum><header>In
general</header><text>In every contract, subcontract, cooperative agreement,
cooperative research and development agreement, or grant which is set aside,
reserved, or otherwise classified as intended for award to small business
concerns, there shall be a presumption of loss to the United States based on
the total amount expended on the contract, subcontract, cooperative agreement,
cooperative research and development agreement, or grant whenever it is
established that a business concern other than a small business concern
willfully sought and received the award by misrepresentation.</text>
</paragraph><paragraph id="ID2fc1a3901ece41239b63b16147cead47"><enum>(2)</enum><header>Deemed
certifications</header><text>The following actions shall be deemed affirmative,
willful, and intentional certifications of small business size and
status:</text>
<subparagraph id="ID182bf27565684ddbab423902fb88c827"><enum>(A)</enum><text>Submission of a bid or
proposal for a Federal grant, contract, subcontract, cooperative agreement, or
cooperative research and development agreement reserved, set aside, or
otherwise classified as intended for award to small business concerns.</text>
</subparagraph><subparagraph id="IDaa596e887b764e6c82f20e5ad9f421f1"><enum>(B)</enum><text>Submission of a bid or
proposal for a Federal grant, contract, subcontract, cooperative agreement, or
cooperative research and development agreement which in any way encourages a
Federal agency to classify the bid or proposal, if awarded, as an award to a
small business concern.</text>
</subparagraph><subparagraph id="IDedc2c80663364e17839d5c57cf08ca81"><enum>(C)</enum><text>Registration on any
Federal electronic database for the purpose of being considered for award of a
Federal grant, contract, subcontract, cooperative agreement, or cooperative
research agreement, as a small business concern.</text>
</subparagraph></paragraph><paragraph id="ID8ddce999edf84a199df654bb405b3d0b"><enum>(3)</enum><header>Certification by
signature of responsible official</header>
<subparagraph id="ID5c5bda3add564b8da993b8fd224ec20b"><enum>(A)</enum><header>In
general</header><text>Each solicitation, bid, or application for a Federal
contract, subcontract, or grant shall contain a certification concerning the
small business size and status of a business concern seeking the Federal
contract, subcontract, or grant.</text>
</subparagraph><subparagraph id="IDc1ec607303a84eefb5646f0cbfbca06a"><enum>(B)</enum><header>Content of
certifications</header><text>A certification that a business concern qualifies
as a small business concern of the exact size and status claimed by the
business concern for purposes of bidding on a Federal contract or subcontract,
or applying for a Federal grant, shall contain the signature of an authorized
official on the same page on which the certification is contained.</text>
</subparagraph></paragraph><paragraph id="ID04ad88ac0d7a470b939aec687e23d842"><enum>(4)</enum><header>Regulations</header><text>The
Administrator shall promulgate regulations to provide adequate protections to
individuals and business concerns from liability under this subsection in cases
of unintentional errors, technical malfunctions, and other similar
situations.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idB32756F0C11147719B8C6CE52512A527"><enum>1342.</enum><header>Annual
certification</header><text display-inline="no-display-inline">Section 3 of the
Small Business Act (15 U.S.C. 632), as amended by section 1341, is amended by
adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF034D0F260E845CC85DF4B73483A7046" reported-display-style="italic" style="OLC">
<subsection id="ID455ef438b3984799911e0c45fbba7baf"><enum>(x)</enum><header>Annual
certification</header>
<paragraph id="idDE4D269A113A4446B8C92108AF65C80A"><enum>(1)</enum><header>In
general</header><text>Each business certified as a small business concern under
this Act shall annually certify its small business size and, if appropriate,
its small business status, by means of a confirming entry on the Online
Representations and Certifications Application database of the Administration,
or any successor thereto.</text>
</paragraph><paragraph id="IDf27e99c187814feb8e35b55c6824ebe0"><enum>(2)</enum><header>Regulations</header><text>Not
later than 1 year after the date of enactment of this subsection, the
Administrator, in consultation with the Inspector General and the Chief Counsel
for Advocacy of the Administration, shall promulgate regulations to ensure
that—</text>
<subparagraph id="ID994d88627c0244f689779473139fbb24"><enum>(A)</enum><text>no business concern
continues to be certified as a small business concern on the Online
Representations and Certifications Application database of the Administration,
or any successor thereto, without fulfilling the requirements for annual
certification under this subsection; and</text>
</subparagraph><subparagraph id="ID034d2253c26f443f8b4995c410b68915"><enum>(B)</enum><text>the requirements of this
subsection are implemented in a manner presenting the least possible regulatory
burden on small business
concerns.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id7EA35B7A48FA460CB93B05976ACFC6D0"><enum>1343.</enum><header>Training for
contracting and enforcement personnel</header>
<subsection id="ID1f7b2c580f9f458090308a1f7a64d5e2"><enum>(a)</enum><header>In
general</header><text>Not later than 1 year after the date of enactment of this
Act, the Federal Acquisition Institute, in consultation with the Administrator
for Federal Procurement Policy, the Defense Acquisition University, and the
Administrator, shall develop courses for acquisition personnel concerning
proper classification of business concerns and small business size and status
for purposes of Federal contracts, subcontracts, grants, cooperative
agreements, and cooperative research and development agreements.</text>
</subsection><subsection id="ID4f5c4517a31144a09da6a9b70c756c8e"><enum>(b)</enum><header>Policy on prosecutions
of small business size and status fraud</header><text>Section 3 of the Small
Business Act (15 U.S.C. 632), as amended by section 1342, is amended by adding
at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id29B87B32B2294A77B6CE1D51359623D3" reported-display-style="italic" style="OLC">
<subsection id="idF8CA536DB1DC4019B8A34685B58396DC"><enum>(y)</enum><header>Policy on prosecutions
of small business size and status fraud</header><text>Not later than 1 year
after the date of enactment of this subsection, the Administrator, in
consultation with the Attorney General, shall issue a Government-wide policy on
prosecution of small business size and status fraud, which shall direct Federal
agencies to appropriately publicize the
policy.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="idB0B7E711365B4CE4A527C6F4A85A36ED"><enum>1344.</enum><header>Updated size
standards</header>
<subsection id="idEB665F8D1DC64FAE99BB601441DDB5F1"><enum>(a)</enum><header>Rolling review</header>
<paragraph id="id8DCBB59AE0E04DCB9F77020DA0D3315D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Administrator
shall—</text>
<subparagraph id="IDa65f6672790048748638c5c3a058a851"><enum>(A)</enum><text>during the 18-month
period beginning on the date of enactment of this Act, and during every
18-month period thereafter, conduct a detailed review of not less than
<fraction>1/3</fraction> of the size standards for small business concerns
established under section 3(a)(2) of the Small Business Act (15 U.S.C.
632(a)(2)), which shall include holding not less than 2 public forums located
in different geographic regions of the United States;</text>
</subparagraph><subparagraph id="IDb7308bb3d78946ef86ed513f4c2fb6de"><enum>(B)</enum><text>after completing each
review under subparagraph (A) make appropriate adjustments to the size
standards established under section 3(a)(2) of the Small Business Act to
reflect market conditions;</text>
</subparagraph><subparagraph id="IDd9d433deac114db7b445a325b32aa4a0"><enum>(C)</enum><text>make publicly
available—</text>
<clause id="ID1b1868f913da43fcaa35563f2843b387"><enum>(i)</enum><text>information regarding the
factors evaluated as part of each review conducted under subparagraph (A);
and</text>
</clause><clause id="ID22d57e8ee55847ef9476a9b3f3dc4510"><enum>(ii)</enum><text>information regarding
the criteria used for any revised size standards promulgated under subparagraph
(B); and</text>
</clause></subparagraph><subparagraph id="IDc32822cd2d324ce58ca42b67ca5ca076"><enum>(D)</enum><text>not later than 30 days
after the date on which the Administrator completes each review under
subparagraph (A), submit to the Committee on Small Business and
Entrepreneurship of the Senate and the Committee on Small Business of the House
of Representatives and make publicly available a report regarding the review,
including why the Administrator—</text>
<clause id="id847A9CD3BB86492C83C4C39D21607267"><enum>(i)</enum><text>used the factors and
criteria described in subparagraph (C); and</text>
</clause><clause id="idA2D85214E2824905A5B5D350059301F2"><enum>(ii)</enum><text>adjusted or did not
adjust each size standard that was reviewed under the review.</text>
</clause></subparagraph></paragraph><paragraph id="id9F95FF7D60EE49F1A98D829A7F042104"><enum>(2)</enum><header>Complete review of size
standards</header><text>The Administrator shall ensure that each size standard
for small business concerns established under section 3(a)(2) of the Small
Business Act (15 U.S.C. 632(a)(2)) is reviewed under paragraph (1) not less
frequently than once every 5 years.</text>
</paragraph></subsection><subsection id="id327F71552EDA4F2D864B46DC82C7BE71"><enum>(b)</enum><header>Rules</header><text>Not
later than 1 year after the date of enactment of this Act, the Administrator
shall promulgate rules for conducting the reviews required under subsection
(a).</text>
</subsection></section><section id="id8214CE8AF8454582B4C59A59E555E205"><enum>1345.</enum><header>Study and report on
the mentor-protege program</header>
<subsection id="ID7778b14d17e34dbbaa01f976859953d0"><enum>(a)</enum><header>In
general</header><text>The Comptroller General of the United States shall
conduct a study of the mentor-protege program of the Administration for small
business concerns participating in programs under section 8(a) of the Small
Business Act (15 U.S.C. 637(a)), and other relationships and strategic
alliances pairing a larger business and a small business concern partner to
gain access to Federal Government contracts, to determine whether the programs
and relationships are effectively supporting the goal of increasing the
participation of small business concerns in Government contracting.</text>
</subsection><subsection id="ID2d418b0ccee646849f08e8b06aef0fed"><enum>(b)</enum><header>Matters To Be
studied</header><text>The study conducted under this section shall
include—</text>
<paragraph id="id2A7418C289284878B1749EC8F25943D0"><enum>(1)</enum><text>a review of a broad
cross-section of industries; and</text>
</paragraph><paragraph id="id36540067E26B4A9997A85FB2138B9E0E"><enum>(2)</enum><text>an evaluation of—</text>
<subparagraph id="ID3333206aa85c4129a47ab1cc23af412b"><enum>(A)</enum><text>how each Federal agency
carrying out a program described in subsection (a) administers and monitors the
program;</text>
</subparagraph><subparagraph id="IDa8f146d67c244ff595a71fd1c5e34cb4"><enum>(B)</enum><text>whether there are systems
in place to ensure that the mentor-protege relationship, or similar
affiliation, promotes real gain to the protege, and is not just a mechanism to
enable participants that would not otherwise qualify under section 8(a) of the
Small Business Act (15 U.S.C. 637(a)) to receive contracts under that section;
and</text>
</subparagraph><subparagraph id="ID74dd415efd3a4485bdee8ae38adda59b"><enum>(C)</enum><text>the degree to which
protege businesses become able to compete for Federal contracts without the
assistance of a mentor.</text>
</subparagraph></paragraph></subsection><subsection id="IDa4fc2f7ed03b4953a55fd5cc486c0bb7"><enum>(c)</enum><header>Report to
Congress</header><text>Not later than 180 days after the date of enactment of
this Act, the Comptroller General shall submit 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 the study conducted
under this section.</text>
</subsection></section><section id="id0C4AEA8688544778A70B25B4454A4ECF"><enum>1346.</enum><header>Contracting goals
reports</header><text display-inline="no-display-inline">Section 15(h)(2) of
the Small Business Act (15 U.S.C. 644(h)(2)) is amended by striking
<quote>submit them</quote> and all that follows through <quote>the
following:</quote> and inserting <quote>submit to the President and the
Committee on Small Business and Entrepreneurship of the Senate and the
Committee on Small Business of the House of Representatives the compilation and
analysis, which shall include the following:</quote>.</text>
</section><section id="idD7C9B4CCDE464FE482222A300C6BE6CD"><enum>1347.</enum><header>Small business
contracting parity</header>
<subsection id="id488F074B8DB44D7D93ED481394AB5FB7"><enum>(a)</enum><header>Definitions</header><text display-inline="yes-display-inline">In this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id3AD575073ED5406CB5C3DCE9ED9C4616"><enum>(1)</enum><text display-inline="yes-display-inline">the terms <term>Administration</term> and
<term>Administrator</term> mean the Small Business Administration and the
Administrator thereof, respectively; and</text>
</paragraph><paragraph id="id09179C8F90334747AB472D2E372DB98A"><enum>(2)</enum><text>the terms <term>HUBZone
small business concern</term>, <term>small business concern </term>,
<term>small business concern owned and controlled by service-disabled
veterans</term>, and <term>small business concern owned and controlled by
women</term> have the same meanings as in section 3 of the Small Business Act
(15 U.S.C. 632).</text>
</paragraph></subsection><subsection id="idAE642F825D9E4F8E91F5A1C69BA7F87D"><enum>(b)</enum><header>Contracting
improvements</header>
<paragraph id="id71DB01ABA1934B119C23C4B056C8733F"><enum>(1)</enum><header>Contracting
opportunities</header><text>Section 31(b)(2)(B) of the Small Business Act (15
U.S.C. 657a(b)(2)(B)) is amended by striking <quote>shall</quote> and inserting
<quote>may</quote>.</text>
</paragraph><paragraph id="id0FF346E129E34763A8CB489BF9A269C6"><enum>(2)</enum><header>Contracting
goals</header><text>Section 15(g)(1) of the Small Business Act (15 U.S.C.
644(g)(1)) is amended in the fourth sentence by inserting <quote>and
subcontract</quote> after <quote>not less than 3 percent of the total value of
all prime contract</quote>.</text>
</paragraph><paragraph id="id266AC9F50DB440AD927A5707F684A419"><enum>(3)</enum><header>Mentor-protege
programs</header><text>The Administrator may establish mentor-protege programs
for small business concerns owned and controlled by service-disabled veterans,
small business concerns owned and controlled by women, and HUBZone small
business concerns modeled on the mentor-protege program of the Administration
for small business concerns participating in programs under section 8(a) of the
Small Business Act (15 U.S.C. 637(a)).</text>
</paragraph></subsection><subsection id="id79B0145324BB4F3CBE462109C1E8D295"><enum>(c)</enum><header>Small business
contracting programs parity</header><text display-inline="yes-display-inline">Section 31(b)(2) of the Small Business Act
(15 U.S.C. 657a(b)(2)) is amended—</text>
<paragraph id="idC45F3805148F47A3B72FDDA1A0BE13E7"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A),
by striking <quote>Notwithstanding any other provision of law—</quote>;</text>
</paragraph><paragraph id="idCDBB87BB6FC94D9AB2CB540337498722"><enum>(2)</enum><text>in subparagraph
(A)—</text>
<subparagraph id="id9596F748154C44DDBA630BF92DBFAA09"><enum>(A)</enum><text>in the matter preceding
clause (i), by striking <quote>a contracting</quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">Sole source
contracts</header-in-text>.—A contracting</quote>; and</text>
</subparagraph><subparagraph id="id3DF27BF0F0B7491D90CA1FFB8F1C0528"><enum>(B)</enum><text>in clause (iii), by
striking the semicolon at the end and inserting a period;</text>
</subparagraph></paragraph><paragraph id="id3D67EB30E9AF47FF87A0973364B069D7"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (B)—</text>
<subparagraph id="idEF59A8FD949B4061A46996A76A12A812"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>a contract opportunity
shall</quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Restricted competition</header-in-text>.—A contract opportunity
may</quote>; and</text>
</subparagraph><subparagraph id="idC39489931B3F4E8F8E2D99CB60BD41D5"><enum>(B)</enum><text>by striking <quote>;
and</quote> and inserting a period; and</text>
</subparagraph></paragraph><paragraph id="id08CA39D9B9704C18A1A8F4704D310586"><enum>(4)</enum><text>in subparagraph (C), by
striking <quote>not later</quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Appeals</header-in-text>.—Not
later</quote>.</text>
</paragraph></subsection></section></part></subtitle><subtitle id="id494C921A8930496DB553AF2CC47DEDD5"><enum>D</enum><header>Small business management
and counseling assistance</header>
<section id="id7475B65BB8444A178B9131B9B0474854"><enum>1401.</enum><header>Matching requirements
under small business programs</header>
<subsection id="id48C1C4FBC93640108C9ABC949A7261E0"><enum>(a)</enum><header>Microloan
program</header><text>Section 7(m) of the Small Business Act (15 U.S.C. 636(m))
is amended—</text>
<paragraph id="id8BF5AE96FC8240748231F867EEDABCFE"><enum>(1)</enum><text>in paragraph
(3)(B)—</text>
<subparagraph id="idE3B6940A22454F7EBB743DE76C553460"><enum>(A)</enum><text>by striking <quote>As a
condition</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE41DEA874ED24B0E887068698F1D4E4F" reported-display-style="italic" style="OLC">
<clause id="id296E144183374392B2B4702CF76F2FC3"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), as a
condition</text>
</clause><after-quoted-block>;
</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idDBFE34DBDCB34A0296EB0CD7EF5E163F"><enum>(B)</enum><text>by striking <quote>the
Administration</quote> and inserting <quote>the Administrator</quote>;
and</text>
</subparagraph><subparagraph id="idC4E690F6B1104298A3F0DBA05643F06E"><enum>(C)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id1D7B1885DAC64390BA28D44C04D2ED89" reported-display-style="italic" style="OLC">
<clause id="idB87D620898DF40D7B5F9AF725A469CAB"><enum>(ii)</enum><header>Waiver of non-Federal
share</header>
<subclause id="idE74170DCC5824CEBA7587C7B957636CD"><enum>(I)</enum><header>In
general</header><text>Upon request by an intermediary, and in accordance with
this clause, the Administrator may waive, in whole or in part, the requirement
to obtain non-Federal funds under clause (i) for a fiscal year. The
Administrator may waive the requirement to obtain non-Federal funds under this
clause for successive fiscal years.</text>
</subclause><subclause id="id31CA94961E334656A1D1AF3AF9FA2385"><enum>(II)</enum><header>Considerations</header><text>In
determining whether to waive the requirement to obtain non-Federal funds under
this clause, the Administrator shall consider—</text>
<item id="id986E88DD4FD64D55A06AB86A050A9E2A"><enum>(aa)</enum><text>the economic conditions
affecting the intermediary;</text>
</item><item id="id50BC515AABBF4E9189400BFBFA708608"><enum>(bb)</enum><text>the impact a waiver
under this clause would have on the credibility of the microloan program under
this subsection;</text>
</item><item id="idF9C7B5743BF94750A3C9F12AC3AE615B"><enum>(cc)</enum><text>the demonstrated ability
of the intermediary to raise non-Federal funds; and</text>
</item><item id="id898D400F11CF4457B98201D97EA570AC"><enum>(dd)</enum><text>the performance of the
intermediary.</text>
</item></subclause><subclause id="id36F0D9A8611D4A4AA8EE6F4CB6E521EE"><enum>(III)</enum><header>Limitations</header>
<item id="idE48BACF6E66D4D8CB3C015F6691D7C6B"><enum>(aa)</enum><header>In
general</header><text>The Administrator may not waive the requirement to obtain
non-Federal funds under this clause if granting the waiver would undermine the
credibility of the microloan program under this subsection.</text>
</item><item id="idA89596C33C524C64BBE8FD17BF8C6FE0"><enum>(bb)</enum><header>Sunset</header><text>The
Administrator may not waive the requirement to obtain non-Federal funds under
this clause for fiscal year 2013 or any fiscal year
thereafter.</text>
</item></subclause></clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="id759363FF0DFE44A497E9A347434D8723"><enum>(2)</enum><text>in paragraph
(4)(B)—</text>
<subparagraph id="id267BDD62B1D34472B0F52E9C1DFE3EA6"><enum>(A)</enum><text>by striking <quote>As a
condition</quote> and all that follows through <quote>the Administration shall
require</quote> and inserting the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id291BAC705D3E4D88901F6D4BF24B50AE" reported-display-style="italic" style="OLC">
<clause id="id30121A1A82D94BA1A2CC2B8403BD77EE"><enum>(i)</enum><header>In
general</header><text>Subject to clause (ii), as a condition of a grant made
under subparagraph (A), the Administrator shall
require</text>
</clause><after-quoted-block>;
and</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idE121255AEF294857A90CE1C4588E28C3"><enum>(B)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0AD6B3000DA740248E8DA15E11CE9340" reported-display-style="italic" style="OLC">
<clause id="ID80b5e91ec7a24b849ba53ebc11dcbfb0"><enum>(ii)</enum><header>Waiver of non-Federal
share</header>
<subclause id="idB9785776901946A5A23FE20096F05BDE"><enum>(I)</enum><header>In
general</header><text>Upon request by an intermediary, and in accordance with
this clause, the Administrator may waive, in whole or in part, the requirement
to obtain non-Federal funds under clause (i) for a fiscal year. The
Administrator may waive the requirement to obtain non-Federal funds under this
clause for successive fiscal years.</text>
</subclause><subclause id="id55DDBA235C534A2A88A26C729BAAD4E4"><enum>(II)</enum><header>Considerations</header><text>In
determining whether to waive the requirement to obtain non-Federal funds under
this clause, the Administrator shall consider—</text>
<item id="ID1d0e4bf21c1d4982bea0b3237b677b42"><enum>(aa)</enum><text>the economic conditions
affecting the intermediary;</text>
</item><item id="IDb97a08bed20f43149d2a89f8764af960"><enum>(bb)</enum><text>the impact a waiver
under this clause would have on the credibility of the microloan program under
this subsection;</text>
</item><item id="ID1cb18c07d62745589a9b3c3e04247874"><enum>(cc)</enum><text>the demonstrated ability
of the intermediary to raise non-Federal funds; and</text>
</item><item id="IDc66d40c144d74555b63f35e164f3e4e5"><enum>(dd)</enum><text>the performance of the
intermediary.</text>
</item></subclause><subclause id="id44458A85B64C45C783A11F906E5E1031"><enum>(III)</enum><header>Limitations</header>
<item id="id233BD01A8A244953B5A63679A6980758"><enum>(aa)</enum><header>In
general</header><text>The Administrator may not waive the requirement to obtain
non-Federal funds under this clause if granting the waiver would undermine the
credibility of the microloan program under this subsection.</text>
</item><item commented="no" display-inline="no-display-inline" id="id6C18E17090B74684AEB0A42B050DD59D"><enum>(bb)</enum><header display-inline="yes-display-inline">Sunset</header><text display-inline="yes-display-inline">The Administrator may not waive the
requirement to obtain non-Federal funds under this clause for fiscal year 2013
or any fiscal year
thereafter.</text>
</item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="id0A5F35E64F5941928DA29015123A0A55"><enum>(b)</enum><header>Women's business center
program</header><text>Section 29(c) of the Small Business Act (15 U.S.C.
656(c)) is amended—</text>
<paragraph id="idA7CFAAF7DE674C67B8278D21EBFF22A5"><enum>(1)</enum><text>in paragraph (1), by
striking <quote>As a condition</quote> and inserting <quote>Subject to
paragraph (5), as a condition</quote>; and</text>
</paragraph><paragraph id="id10389790E7F545ACA6A4E4F6068AECBE"><enum>(2)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id59EE1DF4C2844857ACC414BE87D79CEB" reported-display-style="italic" style="OLC">
<paragraph id="idB36F60C8E04A4AD0B039C29901D932EB"><enum>(5)</enum><header>Waiver of non-Federal
share relating to technical assistance and counseling</header>
<subparagraph id="idF2AC02525D4C4E208BA566662F7F73E7"><enum>(A)</enum><header>In
general</header><text>Upon request by a recipient organization, and in
accordance with this paragraph, the Administrator may waive, in whole or in
part, the requirement to obtain non-Federal funds under this subsection for the
technical assistance and counseling activities of the recipient organization
carried out using financial assistance under this section for a fiscal year.
The Administrator may waive the requirement to obtain non-Federal funds under
this paragraph for successive fiscal years.</text>
</subparagraph><subparagraph id="id962743ABE7854F5C91CDA9DD62519BF5"><enum>(B)</enum><header>Considerations</header><text>In
determining whether to waive the requirement to obtain non-Federal funds under
this paragraph, the Administrator shall consider—</text>
<clause id="id36700392A7EF4FFDA09380A663F0BCE4"><enum>(i)</enum><text>the economic conditions
affecting the recipient organization;</text>
</clause><clause id="idD438B9C714AC4D3A8AE9E76313C9F40C"><enum>(ii)</enum><text>the impact a waiver
under this clause would have on the credibility of the women's business center
program under this section;</text>
</clause><clause id="id2CA772ABCE1546219A27C306D9DD681A"><enum>(iii)</enum><text>the demonstrated
ability of the recipient organization to raise non-Federal funds; and</text>
</clause><clause id="id050BBA395AD643C5B12DF8575082C0A7"><enum>(iv)</enum><text>the performance of the
recipient organization.</text>
</clause></subparagraph><subparagraph id="idDAE6E37625374B1B884452D8C0C27BA6"><enum>(C)</enum><header>Limitations</header>
<clause id="id57C15D8017A44A4FAC4B802FC9933964"><enum>(i)</enum><header>In
general</header><text>The Administrator may not waive the requirement to obtain
non-Federal funds under this paragraph if granting the waiver would undermine
the credibility of the women's business center program under this
section.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id3658337FB68D4AAF8EAB4B89A85C918D"><enum>(ii)</enum><header display-inline="yes-display-inline">Sunset</header><text display-inline="yes-display-inline">The Administrator may not waive the
requirement to obtain non-Federal funds under this paragraph for fiscal year
2013 or any fiscal year
thereafter.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id700DA8A2978A4B25B58149ECEDFF6AA8"><enum>(c)</enum><header>Prospective
repeals</header><text>Effective October 1, 2012, the Small Business Act (15
U.S.C. 631 et seq.) is amended—</text>
<paragraph id="id79DB5107F25B40DD9CA1BC8C84F0EA73"><enum>(1)</enum><text>in section 7(m) (15
U.S.C. 636(m))—</text>
<subparagraph id="idF453D817FB064A04BD45E9C4D042ACC4"><enum>(A)</enum><text>in paragraph
(3)(B)—</text>
<clause id="idBA9BF7725CAD4BBD93AE577292C6A850"><enum>(i)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">Intermediary
contribution</header-in-text>.—</quote> and all that follows through
<quote>Subject to clause (ii), as</quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">Intermediary
contribution</header-in-text>.—As</quote>; and</text>
</clause><clause id="idDA275192E67247939A39CF741CCB4DEF"><enum>(ii)</enum><text>by striking clause (ii);
and</text>
</clause></subparagraph><subparagraph id="idE316A5AF666548F887AFBC1C4DA997EB"><enum>(B)</enum><text>in paragraph
(4)(B)—</text>
<clause id="idAF7C43FB2E20404BB95352DE24EF1EDF"><enum>(i)</enum><text>by striking
<quote><header-in-text level="subparagraph" style="OLC">Contribution</header-in-text>.—</quote> and all that follows
through <quote>Subject to clause (ii), as</quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">Contribution</header-in-text>.—As</quote>; and</text>
</clause><clause id="idB34EF37B9C3648C484226C9A517A91E7"><enum>(ii)</enum><text>by striking clause (ii);
and</text>
</clause></subparagraph></paragraph><paragraph id="id492943223A954715934694DE80F4375B"><enum>(2)</enum><text>in section 29(c) (15
U.S.C. 656(c))—</text>
<subparagraph id="id497A1A41C5FB458BA772E6903EF76104"><enum>(A)</enum><text>in paragraph (1), by
striking <quote>Subject to paragraph (5), as</quote> and inserting
<quote>As</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7695EC44EBD845778E91435D864D324D"><enum>(B)</enum><text>by striking paragraph
(5).</text>
</subparagraph></paragraph></subsection></section><section commented="no" id="idF4C785A7E6A9492C8D60DACDF9C90CA9"><enum>1402.</enum><header>Grants for
SBDCs</header>
<subsection commented="no" id="id477981E42C644C829D60B86E0C46673F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Administrator may
make grants to small business development centers under section 21 of the Small
Business Act (15 U.S.C. 648) to provide targeted technical assistance to small
business concerns seeking access to capital or credit, Federal procurement
opportunities, energy efficiency audits to reduce energy bills, opportunities
to export products or provide services to foreign customers, adopting, making
innovations in, and using broadband technologies, or other assistance.</text>
</subsection><subsection commented="no" id="id88A38929CFF442A6A70586B6E454ECAC"><enum>(b)</enum><header>Allocation</header>
<paragraph commented="no" id="idC6232C18E51B422AB3C181A831458326"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Subject to paragraph
(2), and notwithstanding the requirements of section 21(a)(4)(C)(iii) of the
Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the amount appropriated to
carry out this section shall be allocated under the formula under section
21(a)(4)(C)(i) of that Act.</text>
</paragraph><paragraph commented="no" id="idBE54F0B9772447F29AB32773C3945DD7"><enum>(2)</enum><header>Minimum
funding</header><text display-inline="yes-display-inline">The amount made
available under this section to each State shall be not less than
$325,000.</text>
</paragraph><paragraph commented="no" id="id1E7A92EFED2B499B9756F96F27720FB4"><enum>(3)</enum><header>Types of
uses</header><text>Of the total amount of the grants awarded by the
Administrator under this section—</text>
<subparagraph commented="no" id="id51A5BB643A8146599E616E2AC674C5B7"><enum>(A)</enum><text>not less than 80 percent
shall be used for counseling of small business concerns; and</text>
</subparagraph><subparagraph commented="no" id="id0E628D9E45A04D489293AD35B3B59647"><enum>(B)</enum><text>not more than 20 percent
may be used for classes or seminars.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id79E26150B8F4476981430E8A6950C590"><enum>(c)</enum><header>No non-Federal share
required</header><text>Notwithstanding section 21(a)(4)(A) of the Small
Business Act (15 U.S.C. 648(a)(4)(A)), the recipient of a grant made under this
section shall not be required to provide non-Federal matching funds.</text>
</subsection><subsection commented="no" id="idA6553D877D2A4C8C9C2C9BD3C7C80F2C"><enum>(d)</enum><header>Distribution</header><text>Not
later than 30 days after the date on which amounts are appropriated to carry
out this section, the Administrator shall disburse the total amount
appropriated.</text>
</subsection><subsection commented="no" id="id1A3271A9295440E2B94F6C7211F116AF"><enum>(e)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to the
Administrator $50,000,000 to carry out this section.</text>
</subsection></section></subtitle><subtitle id="idCB59DD5187634ECD8FBC0116605C4964"><enum>E</enum><header>Disaster loan
improvement</header>
<section id="ID966a53bdb5e4459bb15fe6b6a3e8c3f7"><enum>1501.</enum><header>Aquaculture business
disaster assistance</header><text display-inline="no-display-inline">Section 3
of the Small Business Act (15 U.S.C. 632), as amended by section 1343, is
amended by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5313960F28784773B27DFBEE90737A80" reported-display-style="italic" style="OLC">
<subsection id="ID3b192ad12e4b4d6f948cada87c75fc4f"><enum>(z)</enum><header>Aquaculture business
disaster assistance</header><text>Subject to section 18(a) and notwithstanding
section 18(b)(1), the Administrator may provide disaster assistance under
section 7(b)(2) to aquaculture enterprises that are small
businesses.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="idBAF9DD97BA6343BA9F0415C772377D49"><enum>F</enum><header>Small Business Regulatory
Relief</header>
<section id="ID9fea0eb51f384f25b021e665c5625dc7"><enum>1601.</enum><header>Requirements
providing for more detailed analyses</header><text display-inline="no-display-inline">Section 604(a) of title 5, United States
Code, is amended—</text>
<paragraph id="ID97a0ed79eb7b460f9d71748ae1c8c43e"><enum>(1)</enum><text>in paragraph (1), by
striking <quote>succinct</quote>;</text>
</paragraph><paragraph id="ID8e4430db349e4eaa96f45cff19ee5082"><enum>(2)</enum><text>in paragraph (2), by
striking <quote>summary</quote> each place it appears and inserting
<quote>statement</quote>;</text>
</paragraph><paragraph id="IDd45347dd5a00427084b372f5639539fb"><enum>(3)</enum><text>by redesignating
paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively;
and</text>
</paragraph><paragraph id="ID3a5f8957fbaa4db9ab37f1a26fc2cf77"><enum>(4)</enum><text>by inserting after
paragraph (2) the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id3644AC1E231C42389533EF3ACAFBFC82" reported-display-style="italic" style="OLC">
<paragraph id="ID52f41a664be4408682889c61a45e3ddc"><enum>(3)</enum><text>the response of the
agency to any comments filed by the Chief Counsel for Advocacy of the Small
Business Administration in response to the proposed rule, and a detailed
statement of any change made to the proposed rule in the final rule as a result
of the
comments;</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="ID658e5725cd2443a2bbc54cbcf1f6920d"><enum>1602.</enum><header>Office of
advocacy</header>
<subsection id="ID47f1bab87a364a3180c6139c231c7a1a"><enum>(a)</enum><header>In
General</header><text>Section 203 of Public Law 94–305 (15 U.S.C. 634c) is
amended—</text>
<paragraph id="IDccc8227267d24fec9a01f1fa199cb943"><enum>(1)</enum><text>in paragraph (4), by
striking <quote>and</quote> at the end;</text>
</paragraph><paragraph id="IDabe51c174c7e4b47ab4570ba4666f6d5"><enum>(2)</enum><text>in paragraph (5), by
striking the period and inserting <quote>; and</quote>; and</text>
</paragraph><paragraph id="ID9bb521554380449f8660971c3faf18c2"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8181407F5AF343788CF6A25A1E4CD8C0" reported-display-style="italic" style="OLC">
<paragraph id="ID62a7abec00114a9f863259a3fe1da883"><enum>(6)</enum><text>carry out the
responsibilities of the Office of Advocacy under chapter 6 of title 5, United
States
Code.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="IDcda2b6b89f9747c682ae50dc2d0f050e"><enum>(b)</enum><header>Budgetary Line Item and
Authorization of Appropriations</header><text>Title II of Public Law 94–305 (15
U.S.C. 634a et seq.) is amended by striking section 207 and inserting the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id47C9CDB3CDBD48B4945A8BCC1FC993C2" reported-display-style="italic" style="OLC">
<section id="ID67cf54b2503344ab9371d05a43855a6a"><enum>207.</enum><header>Budgetary line item
and authorization of appropriations</header>
<subsection id="ID2c147c6d0d7c4bb9b9968f0ac9452089"><enum>(a)</enum><header>Appropriation
Requests</header><text>Each budget of the United States Government submitted by
the President under section 1105 of title 31, United States Code, shall include
a separate statement of the amount of appropriations requested for the Office
of Advocacy of the Small Business Administration, which shall be designated in
a separate account in the General Fund of the Treasury.</text>
</subsection><subsection id="ID02eabeb9bebc4001bf8fdfe7169fd4ab"><enum>(b)</enum><header>Administrative
Operations</header><text>The Administrator of the Small Business Administration
shall provide the Office of Advocacy with appropriate and adequate office space
at central and field office locations, together with such equipment, operating
budget, and communications facilities and services as may be necessary, and
shall provide necessary maintenance services for such offices and the equipment
and facilities located in such offices.</text>
</subsection><subsection id="IDdac575d307714321ae33678a730a9a28"><enum>(c)</enum><header>Authorization of
Appropriations</header><text>There are authorized to be appropriated such sums
as are necessary to carry out this title. Any amount appropriated under this
subsection shall remain available, without fiscal year limitation, until
expended.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section></subtitle><subtitle id="id7545D1E3EBE54A53B47FC0486459EA32"><enum>G</enum><header>Appropriations
provisions</header>
<section id="id61FDF359365441EF868528A5CBD28915"><enum>1701.</enum><header>Salaries and
expenses</header>
<subsection id="id5F95D32037A54F1BB1D2B9B7EC6223D8"><enum>(a)</enum><header>Appropriation</header><text>There
is appropriated, out of any money in the Treasury not otherwise appropriated,
for the fiscal year ending September 30, 2010, $150,000,000, to remain
available until September 30, 2012, for an additional amount for the
appropriations account appropriated under the heading <quote><header-in-text level="appropriations-small" style="OLC">salaries and
expenses</header-in-text></quote> under the heading <quote><header-in-text level="appropriations-intermediate" style="OLC">Small Business
Administration</header-in-text></quote>, of which—</text>
<paragraph id="idBF8E70ABAEFC45A4A294A81ECFA6467E"><enum>(1)</enum><text>$50,000,000 is for grants
to small business development centers authorized under section 1402;</text>
</paragraph><paragraph id="id24569CD3CD0D4F8A99BE5D2B938DA783"><enum>(2)</enum><text>$1,000,000 is for the
costs of administering grants authorized under section 1402;</text>
</paragraph><paragraph id="id72528358AE874D4D80DC0B571289687D"><enum>(3)</enum><text>$30,000,000 is for grants
to States for fiscal year 2011 to carry out export programs that assist small
business concerns authorized under section 1207;</text>
</paragraph><paragraph id="id8B31B63624F94E5CA001B44F8B4B323F"><enum>(4)</enum><text>$30,000,000 is for grants
to States for fiscal year 2012 to carry out export programs that assist small
business concerns authorized under section 1207;</text>
</paragraph><paragraph id="idA3765CB114BC412B82DFD367DF4F0A29"><enum>(5)</enum><text>$2,500,000 is for the
costs of administering grants authorized under section 1207;</text>
</paragraph><paragraph id="idAB9F8FF30700459BB1C48740DCFC1118"><enum>(6)</enum><text>$5,000,000 is for grants
for fiscal year 2011 under the Small Business Teaming Pilot Program under
section 1314; and</text>
</paragraph><paragraph id="id8B939115C11E426BBCF80FAA783B1379"><enum>(7)</enum><text>$5,000,000 is for grants
for fiscal year 2012 under the Small Business Teaming Pilot Program under
section 1314.</text>
</paragraph></subsection><subsection id="id5F0384AC37A84513975939FB7CB0D4FF"><enum>(b)</enum><header>Report</header><text>Not
later than 60 days after the date of enactment of this Act, the Administrator
shall submit to the Committee on Appropriations of the Senate and the Committee
on Appropriations of the House of Representatives a detailed expenditure plan
for using the funds provided under subsection (a).</text>
</subsection></section><section id="ID806e6bcdf0b14316a2d84ece1a6e35cd"><enum>1702.</enum><header>Business loans
program account</header>
<subsection id="id091C72C317884ACCBAAE5C95437D9C6C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">There is
appropriated, out of any money in the Treasury not otherwise appropriated, for
the fiscal year ending September 30, 2010, for an additional amount for the
appropriations account appropriated under the heading <quote><header-in-text level="appropriations-small" style="OLC">business loans program
account</header-in-text></quote> under the heading <quote><header-in-text level="appropriations-intermediate" style="OLC">Small Business Administration</header-in-text></quote>—</text>
<paragraph id="idA9C261DD88134E86BC9D9C29333ADCF0"><enum>(1)</enum><text display-inline="yes-display-inline">$8,000,000, to remain available until
September 30, 2012, for fiscal year 2011 for the cost of direct loans
authorized under section 7(l) of the Small Business Act, as added by section
1131 of this title, including the cost of modifying the loans;</text>
</paragraph><paragraph id="idB2EC112CB61E43C6A6A5A9B287F5776C"><enum>(2)</enum><text display-inline="yes-display-inline">$8,000,000, to remain available until
September 30, 2012, for fiscal year 2012 for the cost of direct loans
authorized under section 7(l) of the Small Business Act, as added by section
1131 of this title, including the cost of modifying the loans;</text>
</paragraph><paragraph id="IDa407f8b6ddd049088837ec2208c3efdb"><enum>(3)</enum><text>$6,500,000, to remain
available until September 30, 2012, for administrative expenses to carry out
the direct loan program authorized under section 7(l) of the Small Business
Act, as added by section 1131 of this title, which may be transferred to and
merged with the appropriations account appropriated under the heading
<quote><header-in-text level="appropriations-small" style="OLC">salaries and
expenses</header-in-text></quote> under the heading <quote><header-in-text level="appropriations-intermediate" style="OLC">Small Business
Administration</header-in-text></quote>; and</text>
</paragraph><paragraph id="IDad46842a88e545c39592094988fc1661"><enum>(4)</enum><text>$15,000,000, to remain
available until September 30, 2011, for the cost of guaranteed loans as
authorized under section 7(a) of the Small Business Act, including the cost of
modifying the loans.</text>
</paragraph></subsection><subsection id="id845FF8A102384F74ACF4F77B7AFC4068"><enum>(b)</enum><header>Definition</header><text>In
this section, the term <term>cost</term> has the meaning given that term in
section 502 of the Congressional Budget Act of 1974.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idAFA53DB6B0884A7E8AB434421E8FB540" section-type="subsequent-section"><enum>1703.</enum><header display-inline="yes-display-inline">Community Development Financial
Institutions Fund program account</header><text display-inline="no-display-inline">There is appropriated, out of any money in
the Treasury not otherwise appropriated, for the fiscal year ending September
30, 2010, for an additional amount for the appropriations account appropriated
under the heading <quote><header-in-text level="appropriations-small" style="OLC">Community Development Financial Institutions Fund program
account</header-in-text></quote> under the heading <quote><header-in-text level="subsection" style="OLC">DEPARTMENT OF THE TREASURY</header-in-text></quote>, $13,500,000,
to remain available until September 30, 2012, for the costs of administering
guarantees for bonds and notes as authorized under section 114A of the Riegle
Community Development and Regulatory Improvement Act of 1994, as added by
section 1134 of this Act.</text>
</section><section id="S1" section-type="subsequent-section"><enum>1704.</enum><header>Small business loan
guarantee enhancement extensions</header>
<subsection id="id332F06558D044FD3B6EC21569F928ECB"><enum>(a)</enum><header>Extension of
programs</header>
<paragraph id="id6C50007B948C43EA92339075C49F532D"><enum>(1)</enum><header>In
general</header><text>There is appropriated, out of any funds in the Treasury
not otherwise appropriated, for an additional amount for <quote>Small Business
Administration—Business Loans Program Account</quote>, $505,000,000, to remain
available through December 31, 2010, for the cost of—</text>
<subparagraph id="id33A35AB9EAC241E4841C04EB649208A2"><enum>(A)</enum><text>fee reductions and
eliminations under section 501 of division A of the American Recovery and
Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 151), as amended by this
Act; and</text>
</subparagraph><subparagraph id="idAA655858A4EF46BE9AD1889031D17BDC"><enum>(B)</enum><text>loan guarantees under
section 502 of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111–5; 123 Stat. 152), as amended by this Act.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6C60D87B66224EDDA21E52FD19AA034E"><enum>(2)</enum><header>Cost</header><text>For
purposes of this subsection, the term <term>cost</term> has the same meaning as
in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H325A60B0FCE04045A8F7CC8A7C157B5E"><enum>(b)</enum><header>Administrative
expenses</header><text display-inline="yes-display-inline">There is
appropriated for an additional amount, out of any funds in the Treasury not
otherwise appropriated, for administrative expenses to carry out sections 501
and 502 of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111–5), $5,000,000, to remain available until expended, which may
be transferred and merged with the appropriation for <quote>Small Business
Administration—Salaries and Expenses</quote>.</text>
</subsection></section></subtitle><enum>II</enum><header>Tax provisions</header>
<section id="id351B642DB9FC41679E3583EF8D04F656"><enum>2001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Creating Small Business Jobs Act of 2010</quote>.</text>
</section><subtitle id="id643A95ECB7E045C7B427DE6A1130CDAF"><enum>A</enum><header>Small business
relief</header>
<part id="id2B0045BD55504C66BA42D88C38638CAE"><enum>I</enum><header>Providing access to
capital</header>
<section id="HD58268F5BA0042BEB8EC8487786F2380" section-type="subsequent-section"><enum>2011.</enum><header>Temporary exclusion
of 100 percent of gain on certain small business stock</header>
<subsection id="HBD339DB56E91495C8D184C0452BD5FCF"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 1202 of the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H837B179F87334079930EA93410B893E9" reported-display-style="italic" style="OLC">
<paragraph id="HE00F5B2A7FE94286AE5EA062F956426E"><enum>(4)</enum><header>100 percent exclusion
for stock acquired during certain periods in 2010</header><text display-inline="yes-display-inline">In the case of qualified small business
stock acquired after the date of the enactment of the Creating Small Business
Jobs Act of 2010 and before January 1, 2011—</text>
<subparagraph id="H52DD1ED7074340998F594571F6407942"><enum>(A)</enum><text>paragraph (1) shall be
applied by substituting <quote>100 percent</quote> for <quote>50
percent</quote>,</text>
</subparagraph><subparagraph id="H7448EBF88C8A4E79AC90B1B61764BC4E"><enum>(B)</enum><text>paragraph (2) shall not
apply, and</text>
</subparagraph><subparagraph id="H1D44D13B7CD64F47948AAB327EAB5682"><enum>(C)</enum><text display-inline="yes-display-inline">paragraph (7) of section 57(a) shall not
apply.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H516AE0F9837C4F5B9759048418467602"><enum>(b)</enum><header>Conforming
amendment</header><text>Paragraph (3) of section 1202(a) of the Internal
Revenue Code of 1986 is amended—</text>
<paragraph id="H9094BE65DF544C049E8D39DACEC44FBD"><enum>(1)</enum><text>by inserting
<quote><header-in-text level="paragraph" style="OLC">certain periods
in</header-in-text></quote> before <quote><header-in-text level="paragraph" style="OLC">2010</header-in-text></quote> in the heading, and</text>
</paragraph><paragraph id="HB51EDA52F14042CF94E12EBCCA4BC791"><enum>(2)</enum><text>by striking <quote>before
January 1, 2011</quote> and inserting <quote>on or before the date of the
enactment of the Creating Small Business Jobs Act of 2010</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCFED0E6A5E254F7F857838FC80D7B983"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to stock
acquired after the date of the enactment of this Act.</text>
</subsection></section><section id="id47151C6E56ED4254A321D030973B8C34"><enum>2012.</enum><header>General business
credits of eligible small businesses for 2010 carried back 5 years</header>
<subsection id="id41569644277F4F168AD1FA495BA14341"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 39(a) of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id72C61C72B89D483BA01696C58CC02E20" reported-display-style="italic" style="OLC">
<paragraph id="idB3D35CE668FF48E4BC9C64C9A4C7CF95"><enum>(4)</enum><header>5-year carryback for
eligible small business credits</header>
<subparagraph id="id2A22973A3BDE47BD81B74A82D68698F7"><enum>(A)</enum><header>In
general</header><text>Notwithstanding subsection (d), in the case of eligible
small business credits determined in the first taxable year of the taxpayer
beginning in 2010—</text>
<clause id="id85536ED7E8684E21997FAAAEA8B511F8"><enum>(i)</enum><text>paragraph (1) shall be
applied by substituting <quote>each of the 5 taxable years</quote> for
<quote>the taxable year</quote> in subparagraph (A) thereof, and</text>
</clause><clause id="idE5B3E4EB53E34AA1B2A1E4D1F687DC48"><enum>(ii)</enum><text>paragraph (2) shall be
applied—</text>
<subclause id="id7447A703D84347438531645BBE252815"><enum>(I)</enum><text>by substituting <quote>25
taxable years</quote> for <quote>21 taxable years</quote> in subparagraph (A)
thereof, and</text>
</subclause><subclause id="id515D88DBE85D4954AF5812810EE5DE63"><enum>(II)</enum><text>by substituting
<quote>24 taxable years</quote> for <quote>20 taxable years</quote> in
subparagraph (B) thereof.</text>
</subclause></clause></subparagraph><subparagraph id="id7A3BF5B7F9B34F5AA7097EB9D40471EA"><enum>(B)</enum><header>Eligible small business
credits</header><text>For purposes of this subsection, the term <term>eligible
small business credits</term> has the meaning given such term by section
38(c)(5)(B).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idEBDBAE3170844EF992CB177181257E4D"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 39(a)(3)(A) of the Internal Revenue Code of
1986 is amended by inserting <quote>or the eligible small business
credits</quote> after <quote>credit)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id75F2BBDEB0FE4AE7A0193053DDF8EEB8"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to credits
determined in taxable years beginning after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id093BF4C8D55C42E3B6C1C794B3592C2B"><enum>2013.</enum><header>General business
credits of eligible small businesses in 2010 not subject to alternative minimum
tax</header>
<subsection commented="no" display-inline="no-display-inline" id="id6E938AED32C24D4ABB4BA305B695550B"><enum>(a)</enum><header>In
general</header><text>Section 38(c) of the Internal Revenue Code of 1986 is
amended by redesignating paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC1A4F7685E1D4C3EAD99809FC8C71086" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id3CAAE2EDDCF74FCCA9123C3FEFAE7E56"><enum>(5)</enum><header>Special rules for
eligible small business credits in 2010</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id765103B6177C46D9B017FEE36FD29C08"><enum>(A)</enum><header>In
general</header><text>In the case of eligible small business credits determined
in taxable years beginning in 2010—</text>
<clause commented="no" display-inline="no-display-inline" id="id448227732D5C42658197F7A7BC329C44"><enum>(i)</enum><text>this section and section
39 shall be applied separately with respect to such credits, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idC4E94573AF4B4A2D9F4D5CBA54EF906F"><enum>(ii)</enum><text>in applying paragraph
(1) to such credits—</text>
<subclause commented="no" display-inline="no-display-inline" id="id48A7747959CE47569AB7C7083B1988E0"><enum>(I)</enum><text>the tentative minimum tax
shall be treated as being zero, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id3BEA2F2C9FE443B7844B1597F7AA4564"><enum>(II)</enum><text>the limitation under
paragraph (1) (as modified by subclause (I)) shall be reduced by the credit
allowed under subsection (a) for the taxable year (other than the eligible
small business credits).</text>
</subclause></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id770B02726779402F95B0C6650286BF00"><enum>(B)</enum><header>Eligible small business
credits</header><text>For purposes of this subsection, the term <term>eligible
small business credits</term> means the sum of the credits listed in subsection
(b) which are determined for the taxable year with respect to an eligible small
business. Such credits shall not be taken into account under paragraph (2),
(3), or (4).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id799CED965AA04D7AA25AF06C3D90019B"><enum>(C)</enum><header>Eligible small
business</header><text>For purposes of this subsection, the term <term>eligible
small business</term> means, with respect to any taxable year—</text>
<clause commented="no" display-inline="no-display-inline" id="id8E5BC0AD5B23412AB92D8062CE138AE0"><enum>(i)</enum><text>a corporation the stock
of which is not publicly traded,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id61CA0D4C473D49A9AF77DD3ED3B08FD3"><enum>(ii)</enum><text>a partnership, or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id532E98C5CA6B40B88A9AE7C63A51A60E"><enum>(iii)</enum><text>a sole
proprietorship,</text>
</clause><continuation-text continuation-text-level="subparagraph">if the average annual gross receipts of
such corporation, partnership, or sole proprietorship for the 3-taxable-year
period preceding such taxable year does not exceed $50,000,000. For purposes of
applying the test under the preceding sentence, rules similar to the rules of
paragraphs (2) and (3) of section 448(c) shall apply.</continuation-text></subparagraph><subparagraph id="id1DCBA9A688F24DF29F3E00551B306289"><enum>(D)</enum><header>Treatment of partners
and S corporation shareholders</header><text>Credits determined with respect to
a partnership or S corporation shall not be treated as eligible small business
credits by any partner or shareholder unless such partner or shareholder meets
the gross receipts test under subparagraph (C) for the taxable year in which
such credits are treated as current year business
credits.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idD006F654DEEB456B9AD8696A350C9990"><enum>(b)</enum><header>Technical
amendment</header><text>Section 55(e)(5) of the Internal Revenue Code of 1986
is amended by striking <quote>38(c)(3)(B)</quote> and inserting
<quote>38(c)(6)(B)</quote>.</text>
</subsection><subsection id="id01FB8D1E6AB546279D3404E94B018DA1"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="idBE6E4E68A72A4336A5A7F64FB204F44E"><enum>(1)</enum><text>Subclause (II) of section
38(c)(2)(A)(ii) of the Internal Revenue Code of 1986 is amended by inserting
<quote>the eligible small business credits,</quote> after <quote>the New York
Liberty Zone business employee credit,</quote>.</text>
</paragraph><paragraph id="id10C80E3C1C0D46239C9928868FD380F6"><enum>(2)</enum><text>Subclause (II) of section
38(c)(3)(A)(ii) of such Code is amended by inserting <quote>, the eligible
small business credits,</quote> after <quote>the New York Liberty Zone business
employee credit</quote>.</text>
</paragraph><paragraph id="idFAEC1D9DFF274FC5A92D8A6F35D37FDC"><enum>(3)</enum><text>Subclause (II) of section
38(c)(4)(A)(ii) of such Code is amended by inserting <quote>the eligible small
business credits and</quote> before <quote>the specified
credits</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id18BDCE2FDE55465793FA5BDA0EA06F87"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply to credits
determined in taxable years beginning after December 31, 2009, and to
carrybacks of such credits.</text>
</subsection></section><section id="idD5B47799175243C9AA399ADBC278692E"><enum>2014.</enum><header>Temporary reduction
in recognition period for built-in gains tax</header>
<subsection id="id66916F446BB747D19ED812D41A209504"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 1374(d)(7) of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block act-name="" changed="added" id="id8736E015A41243E7B4F23677AED836E5" reported-display-style="italic" style="OLC">
<subparagraph id="idB1C3C4FB16C54DC890A56CF21B4D83C1"><enum>(B)</enum><header>Special rules for 2009,
2010, and 2011</header><text>No tax shall be imposed on the net recognized
built-in gain of an S corporation—</text>
<clause id="idE07FCF7044304440AEEC4DAB8D0F11A5"><enum>(i)</enum><text>in the case of any
taxable year beginning in 2009 or 2010, if the 7th taxable year in the
recognition period preceded such taxable year, or</text>
</clause><clause id="idBE57AC63396243B7A4F80134B737D231"><enum>(ii)</enum><text>in the case of any
taxable year beginning in 2011, if the 5th year in the recognition period
preceded such taxable year.</text>
</clause><continuation-text continuation-text-level="subparagraph">The preceding sentence shall be applied
separately with respect to any asset to which paragraph (8)
applies.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id084F2AAC48DF4C78AFBC544F9782C0FF"><enum>(b)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to taxable years beginning after December 31,
2010.</text>
</subsection></section></part><part id="id923FA973666C48F38A3B3D6A15FF036A"><enum>II</enum><header>Encouraging
investment</header>
<section id="id84B5B85573B5439FA0B678A0F5047C3F"><enum>2021.</enum><header>Increased expensing
limitations for 2010 and 2011; certain real property treated as section 179
property</header>
<subsection commented="no" display-inline="no-display-inline" id="id5D40D7CF656648858037B22F104E1143"><enum>(a)</enum><header>Increased
limitations</header><text>Subsection (b) of section 179 of the Internal Revenue
Code of 1986 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id9FD996AA853940589FA09EA29E219FD2"><enum>(1)</enum><text>by striking <quote>shall
not exceed</quote> and all that follows in paragraph (1) and inserting “shall
not exceed—</text>
<quoted-block act-name="" changed="added" id="idE727760418F64BDFA753DF8A684451FA" reported-display-style="italic" style="OLC">
<subparagraph id="idB881614BC652485D80832D76F93A3C25"><enum>(A)</enum><text>$250,000 in the case of
taxable years beginning after 2007 and before 2010,</text>
</subparagraph><subparagraph id="id4DA8FF09DD2542309E4DD53C1C3EFC11"><enum>(B)</enum><text>$500,000 in the case of
taxable years beginning in 2010 or 2011, and</text>
</subparagraph><subparagraph id="id70766494617940DBA669FE47477585C9"><enum>(C)</enum><text>$25,000 in the case of
taxable years beginning after 2011.</text>
</subparagraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3F7F71E959764DE6B074EF85B2B2B911"><enum>(2)</enum><text>by striking
<quote>exceeds</quote> and all that follows in paragraph (2) and inserting
“exceeds—</text>
<quoted-block act-name="" changed="added" id="id988477B7D784426ABE62DF49E7EF2C54" reported-display-style="italic" style="OLC">
<subparagraph id="id83608BB814C042FE93CD0E4962014564"><enum>(A)</enum><text>$800,000 in the case of
taxable years beginning after 2007 and before 2010,</text>
</subparagraph><subparagraph id="id70BC5B9E65764292BC05557E17726AFB"><enum>(B)</enum><text>$2,000,000 in the case of
taxable years beginning in 2010 or 2011, and</text>
</subparagraph><subparagraph id="id152EDC39370E4BE9AF58D439B9CF7005"><enum>(C)</enum><text>$200,000 in the case of
taxable years beginning after
2011.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDE2B4931371C408F995A375FEA682364"><enum>(b)</enum><header>Inclusion of certain
real property</header><text>Section 179 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:</text>
<quoted-block act-name="" changed="added" id="id4E3A74A3D2624E9F9FBE0367282A74C1" reported-display-style="italic" style="OLC">
<subsection id="id7DA40E43B4DF403798BBB96F6070A74F"><enum>(f)</enum><header>Special rules for
qualified real property</header>
<paragraph id="idDE6C67E72C7A4867A6DFE401CCE99F1C"><enum>(1)</enum><header>In
general</header><text>If a taxpayer elects the application of this subsection
for any taxable year beginning in 2010 or 2011, the term <term>section 179
property</term> shall include any qualified real property which is—</text>
<subparagraph id="id28401A11A98349FF98DEEF595CEA9694"><enum>(A)</enum><text>of a character subject to
an allowance for depreciation,</text>
</subparagraph><subparagraph id="id4BBDBC2B6DB5455F8B59263E666A0E78"><enum>(B)</enum><text>acquired by purchase for
use in the active conduct of a trade or business, and</text>
</subparagraph><subparagraph id="idEE349B9084A84CF0B9F1A9494AF3820F"><enum>(C)</enum><text>not described in the last
sentence of subsection (d)(1).</text>
</subparagraph></paragraph><paragraph id="idC91D00043339489398A664180C499098"><enum>(2)</enum><header>Qualified real
property</header><text>For purposes of this subsection, the term
<term>qualified real property</term> means—</text>
<subparagraph id="id89A7EBCAF88F4535A87BD11AA4F70364"><enum>(A)</enum><text>qualified leasehold
improvement property described in section 168(e)(6),</text>
</subparagraph><subparagraph id="idFAD296559FD2421DA2A5BC7BF12EC867"><enum>(B)</enum><text>qualified restaurant
property described in section 168(e)(7) (without regard to the dates specified
in subparagraph (A)(i) thereof), and</text>
</subparagraph><subparagraph id="id47A3AEFD2A87499FAF253C22D02E035F"><enum>(C)</enum><text>qualified retail
improvement property described in section 168(e)(8) (without regard to
subparagraph (E) thereof).</text>
</subparagraph></paragraph><paragraph id="id01E483CEC7654953A62A935E92DBD1CE"><enum>(3)</enum><header>Limitation</header><text>For
purposes of applying the limitation under subsection (b)(1)(B), not more than
$250,000 of the aggregate cost which is taken into account under subsection (a)
for any taxable year may be attributable to qualified real property.</text>
</paragraph><paragraph id="idA40853702E094052AD541A352D0C852F"><enum>(4)</enum><header>Carryover
limitation</header>
<subparagraph id="idE3EEFA9F00B84A5391FC06CF1829BC4F"><enum>(A)</enum><header>In
general</header><text>Notwithstanding subsection (b)(3)(B), no amount
attributable to qualified real property may be carried over to a taxable year
beginning after 2011.</text>
</subparagraph><subparagraph id="id4A68AD2935724AA3B653E9C4266FC551"><enum>(B)</enum><header>Treatment of disallowed
amounts</header><text>Except as provided in subparagraph (C), to the extent
that any amount is not allowed to be carried over to a taxable year beginning
after 2011 by reason of subparagraph (A), this title shall be applied as if no
election under this section had been made with respect to such amount.</text>
</subparagraph><subparagraph id="idD2A97F216BDA48E293ACD2F3AF72299B"><enum>(C)</enum><header>Amounts carried over
from 2010</header><text>If subparagraph (B) applies to any amount (or portion
of an amount) which is carried over from a taxable year other than the
taxpayer's last taxable year beginning in 2011, such amount (or portion of an
amount) shall be treated for purposes of this title as attributable to property
placed in service on the first day of the taxpayer's last taxable year
beginning in 2011.</text>
</subparagraph><subparagraph id="id5FFAF4913EA244959FC3336D637D0B01"><enum>(D)</enum><header>Allocation of
amounts</header><text>For purposes of applying this paragraph and subsection
(b)(3)(B) to any taxable year, the amount which is disallowed under subsection
(b)(3)(A) for such taxable year which is attributed to qualified real property
shall be the amount which bears the same ratio to the total amount so
disallowed as—</text>
<clause id="idCEDC8060E9364F59A35F12AF3CADCAF3"><enum>(i)</enum><text>the aggregate amount
attributable to qualified real property placed in service during such taxable
year, increased by the portion of any amount carried over to such taxable year
from a prior taxable year which is attributable to such property, bears
to</text>
</clause><clause id="idC213BEF61A7F49A3961FD19EE1D81109"><enum>(ii)</enum><text>the total amount of
section 179 property placed in service during such taxable year, increased by
the aggregate amount carried over to such taxable year from any prior taxable
year.</text>
</clause><continuation-text continuation-text-level="subparagraph">For purposes of the preceding sentence,
only section 179 property with respect to which an election was made under
subsection (c)(1) (determined without regard to subparagraph (B) of this
paragraph) shall be taken into
account.</continuation-text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idF206548E8F364785BD9F0FF484D36084"><enum>(c)</enum><header>Revocability of
election</header><text>Paragraph (2) of section 179(c) of the Internal Revenue
Code of 1986 is amended by striking <quote>2011</quote> and inserting
<quote>2012</quote>.</text>
</subsection><subsection id="idDB64EDDC0094425991AE90F4BBF9C7FE"><enum>(d)</enum><header>Computer software
treated as 179 property</header><text>Clause (ii) of section 179(d)(1)(A) is
amended by striking <quote>2011</quote> and inserting
<quote>2012</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idAE01FD4D841B486EB268F409F6D61183"><enum>(e)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="idAB4C776D24AE40ECB7838FCD1015BD45"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to property placed in service after December 31,
2009, in taxable years beginning after such date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1F41FA88B1C54BEA944B7FF34033F807"><enum>(2)</enum><header>Extensions</header><text>The
amendments made by subsections (c) and (d) shall apply to taxable years
beginning after December 31, 2010.</text>
</paragraph></subsection></section><section id="id1DF86E124F5B48EEA6D588E6BCF1A861"><enum>2022.</enum><header>Additional first-year
depreciation for 50 percent of the basis of certain qualified property</header>
<subsection id="id2C9E79EDE8924DD9BBE69CB657A3FC5C"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (2) of
section 168(k) of the Internal Revenue Code of 1986 is amended—</text>
<paragraph commented="no" id="idB877ADD3FAB5411BB5710981794083CC"><enum>(1)</enum><text>by striking
<quote>January 1, 2011</quote> in subparagraph (A)(iv) and inserting
<quote>January 1, 2012</quote>, and</text>
</paragraph><paragraph id="id7619A2357F944E3DB07044B4785C2682"><enum>(2)</enum><text>by striking
<quote>January 1, 2010</quote> each place it appears and inserting
<quote>January 1, 2011</quote>.</text>
</paragraph></subsection><subsection id="idE85F875AF5CA42BBB1436580652EAB3C"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="idF4EB6E0BCB3E45D4BD2D2B7E06A723DD"><enum>(1)</enum><text>The heading for
subsection (k) of section 168 of the Internal Revenue Code of 1986 is amended
by striking <quote><header-in-text level="subsection" style="OLC">January 1,
2010</header-in-text></quote> and inserting <quote><header-in-text level="subsection" style="OLC">January 1, 2011</header-in-text></quote>.</text>
</paragraph><paragraph id="id0A8D94107F7C4C25A80B61FDF3AE7417"><enum>(2)</enum><text>The heading for clause
(ii) of section 168(k)(2)(B) of such Code is amended by striking
<quote><header-in-text level="clause" style="OLC">Pre-January 1,
2010</header-in-text></quote> and inserting <quote><header-in-text level="clause" style="OLC">Pre-January 1, 2011</header-in-text></quote>.</text>
</paragraph><paragraph id="idCAB6E8989144421EB8C6CED220D516D3"><enum>(3)</enum><text>Subparagraph (D) of
section 168(k)(4) of such Code is amended by striking <quote>and</quote> at the
end of clause (ii), by striking the period at the end of clause (iii) and
inserting a comma, and by adding at the end the following new clauses:</text>
<quoted-block act-name="" changed="added" id="idB7FD776D010E40A091FDF550B234C457" reported-display-style="italic" style="OLC">
<clause id="id48DE7CC371A54BCE87C809324781BCCA"><enum>(iv)</enum><text><quote>January 1,
2011</quote> shall be substituted for <quote>January 1, 2012</quote> in
subparagraph (A)(iv) thereof, and</text>
</clause><clause id="idE9A0B26E5CC841F190A6E5387028B5AF"><enum>(v)</enum><text><quote>January 1,
2010</quote> shall be substituted for <quote>January 1, 2011</quote> each place
it appears in subparagraph (A)
thereof.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5FBEE529CA714A4EB132413FA09F0CB0"><enum>(4)</enum><text>Subparagraph (B) of
section 168(l)(5) of such Code is amended by striking <quote>January 1,
2010</quote> and inserting <quote>January 1, 2011</quote>.</text>
</paragraph><paragraph id="idFA8A84F0E6414B7CBC1F06E3F93265EC"><enum>(5)</enum><text>Subparagraph (C) of
section 168(n)(2) of such Code is amended by striking <quote>January 1,
2010</quote> and inserting <quote>January 1, 2011</quote>.</text>
</paragraph><paragraph id="idC1D7EF46F2E64D93A36E7BDCC38B173C"><enum>(6)</enum><text>Subparagraph (D) of
section 1400L(b)(2) of such Code is amended by striking <quote>January 1,
2010</quote> and inserting <quote>January 1, 2011</quote>.</text>
</paragraph><paragraph id="id3268BCF449B94317A4FB721F1B89F55E"><enum>(7)</enum><text>Subparagraph (B) of
section 1400N(d)(3) of such Code is amended by striking <quote>January 1,
2010</quote> and inserting <quote>January 1, 2011</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDECBD6AF92F94C778C6A8A1E1A6ED8F3"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2009, in taxable years ending after such
date.</text>
</subsection></section><section id="ID508e40a791e44d5b89de2d5b59968e48"><enum>2023.</enum><header>Special rule for
long-term contract accounting</header>
<subsection id="idE3497427301F4295925993A071AFD581"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 460(c) of the
Internal Revenue Code of 1986 is amended by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id95283C3F96A24E23BB7AB617F7441EE8" reported-display-style="italic" style="OLC">
<paragraph id="ID1e42b730c7de462bb6393a4f46c20dc9"><enum>(6)</enum><header>Special rule for
allocation of bonus depreciation with respect to certain property</header>
<subparagraph id="idC7F59E29F74249BFB70E8063F1FE1866"><enum>(A)</enum><header>In
general</header><text>Solely for purposes of determining the percentage of
completion under subsection (b)(1)(A), the cost of qualified property shall be
taken into account as a cost allocated to the contract as if subsection (k) of
section 168 had not been enacted.</text>
</subparagraph><subparagraph id="idB40CC377773E43758DC0ECBEC6C32CD3"><enum>(B)</enum><header>Qualified
property</header><text>For purposes of this paragraph, the term <term>qualified
property</term> means property described in section 168(k)(2) which—</text>
<clause id="id70520BEA1157404185BFAC95F321453F"><enum>(i)</enum><text>has a recovery period of
7 years or less, and</text>
</clause><clause id="id083F7EF8F88E440D9038C0AF88B3A242"><enum>(ii)</enum><text>is placed in service
after December 31, 2009, and before January 1, 2011 (January 1, 2012, in the
case of property described in section
168(k)(2)(B)).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idD4285742A16442FCA0DD3E8FE201A1C0"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2009.</text>
</subsection></section></part><part id="id6382E9D88D0D4C309B863FA87780BBAB"><enum>III</enum><header>Promoting
entrepreneurship</header>
<section id="H13412524E6D4497E976A8B0992138493" section-type="subsequent-section"><enum>2031.</enum><header>Increase in amount
allowed as deduction for start-up expenditures in 2010</header>
<subsection id="HCD69F43D5D974EACBB549859DDA5F558"><enum>(a)</enum><header>Start-up
expenditures</header><text display-inline="yes-display-inline">Subsection (b)
of section 195 of the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4C1EDBAEB3FB4D64A0FA4BC70E5FDD20" reported-display-style="italic" style="OLC">
<paragraph id="H5082B7ACAF534D3182035FA2CFA1380B"><enum>(3)</enum><header>Special rule for
taxable years beginning in 2010</header><text display-inline="yes-display-inline">In the case of a taxable year beginning in
2010, paragraph (1)(A)(ii) shall be applied—</text>
<subparagraph id="H7DBA11327BB149558247A035AB370992"><enum>(A)</enum><text>by substituting
<quote>$10,000</quote> for <quote>$5,000</quote>, and</text>
</subparagraph><subparagraph id="HBAEEB23B4D4F41FFA42DC5E0B913AFAA"><enum>(B)</enum><text>by substituting
<quote>$60,000</quote> for
<quote>$50,000</quote>.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBF6602A7DA0F4D2FB7AFA7BB662F2505"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to amounts
paid or incurred in taxable years beginning after December 31, 2009.</text>
</subsection></section><section id="id9BC3C788CA6040D384D5C756F0C48E87" section-type="subsequent-section"><enum>2032.</enum><header>Authorization of
appropriations for the United States Trade Representative to develop market
access opportunities for United States small- and medium-sized businesses and
to enforce trade agreements</header>
<subsection id="IDae756089bc0d4af1a99a115aec9b174c"><enum>(a)</enum><header>In
general</header><text>There are authorized to be appropriated to the Office of
the United States Trade Representative $5,230,000, to remain available until
expended, for—</text>
<paragraph id="IDd5fa7ed99c6948199723553404e3efe2"><enum>(1)</enum><text>analyzing and developing
opportunities for businesses in the United States to access the markets of
foreign countries; and</text>
</paragraph><paragraph id="ID01ea48a84e574ccf901e59b643f8421b"><enum>(2)</enum><text>enforcing trade
agreements to which the United States is a party.</text>
</paragraph></subsection><subsection id="ID1dc2453ec01f453993579b8199877a3c"><enum>(b)</enum><header>Requirements</header><text>In
obligating and expending the funds authorized to be appropriated under
subsection (a), the United States Trade Representative shall—</text>
<paragraph id="IDdb7cce6f4cfd4774a704ca31d39852ed"><enum>(1)</enum><text>give preference to those
initiatives that the United States Trade Representative determines will create
or sustain the greatest number of jobs in the United States or result in the
greatest benefit to the economy of the United States; and</text>
</paragraph><paragraph id="ID4de42008616e4740b77b743ff0cfcd12"><enum>(2)</enum><text>consider the needs of
small- and medium-sized businesses in the United States with respect to—</text>
<subparagraph id="id6EA183B06F7D4DFDA94BE03174CB6769"><enum>(A)</enum><text>accessing the markets of
foreign countries; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC8725054C8C14474A450322837BDF3C9"><enum>(B)</enum><text>the enforcement of trade
agreements to which the United States is a party.</text>
</subparagraph></paragraph></subsection></section></part><part id="id52EB0650DC8449E4A50F551AC69F2F7A"><enum>IV</enum><header>Promoting small business
fairness</header>
<section commented="no" display-inline="no-display-inline" id="HF142D55FF1044A1DB46F147EC92F9D2C" section-type="subsequent-section"><enum>2041.</enum><header display-inline="yes-display-inline">Limitation on penalty for failure to
disclose reportable transactions based on resulting tax benefits</header>
<subsection commented="no" display-inline="no-display-inline" id="H58F2131E0F714629B94BC9B1E6986306"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (b) of section 6707A of the
Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H82CED96E1CC04BF5AD765CAE9F4C2E36" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H6200EBFDCA724C729168CF0D997F04D2"><enum>(b)</enum><header display-inline="yes-display-inline">Amount of penalty</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4E61EC676BBD40B39AA41AE0EE91C335"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this
subsection, the amount of the penalty under subsection (a) with respect to any
reportable transaction shall be 75 percent of the decrease in tax shown on the
return as a result of such transaction (or which would have resulted from such
transaction if such transaction were respected for Federal tax
purposes).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA8B2736D5D1E46239A7F98CD527D411D"><enum>(2)</enum><header display-inline="yes-display-inline">Maximum penalty</header><text display-inline="yes-display-inline">The amount of the penalty under subsection
(a) with respect to any reportable transaction shall not exceed—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H15039E86B7EF482EA27EE976C3D6F2BC"><enum>(A)</enum><text display-inline="yes-display-inline">in the case of a listed transaction,
$200,000 ($100,000 in the case of a natural person), or</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H080E9919D6ED4FB598C6181A21A020D0"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of any other reportable
transaction, $50,000 ($10,000 in the case of a natural person).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4BD6F4FB875946B990D020A3537C5DE0"><enum>(3)</enum><header display-inline="yes-display-inline">Minimum penalty</header><text display-inline="yes-display-inline">The amount of the penalty under subsection
(a) with respect to any transaction shall not be less than $10,000 ($5,000 in
the case of a natural
person).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2910D5A01A08440CA1CB8E904034F087"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendment made by
this section shall apply to penalties assessed after December 31, 2006.</text>
</subsection></section><section id="IDf1795cc19a5041ddaafad3d002aba159"><enum>2042.</enum><header>Deduction for health
insurance costs in computing self-employment taxes in 2010</header>
<subsection id="IDb6b9ccc147524a2493473c862f67f374"><enum>(a)</enum><header>In
general</header><text>Paragraph (4) of section 162(l) of the Internal Revenue
Code of 1986 is amended by inserting <quote>for taxable years beginning before
January 1, 2010, or after December 31, 2010</quote> before the period.</text>
</subsection><subsection id="ID5b82181f7c124ac79b259d87cacccadc"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section id="idB92194B3FB8D47F180D823495823284B"><enum>2043.</enum><header>Removal of cellular
telephones and similar telecommunications equipment from listed
property</header>
<subsection id="id0D685B20D5134DB6816BD1F465189EA4"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 280F(d)(4) of the Internal
Revenue Code of 1986 (defining listed property) is amended by adding
<quote>‘and</quote>’ at the end of clause (iv), by striking clause (v), and by
redesignating clause (vi) as clause (v).</text>
</subsection><subsection id="id1B01D3BA3959475BA2D93869DDCB4B62"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section></part></subtitle><subtitle id="id622CE353866B480FAEFC7BE9AE0FF05D"><enum>B</enum><header>Revenue
provisions</header>
<part id="id45D655EBA3E14C9AB09A7047CE1D4542"><enum>I</enum><header>Reducing the tax
gap</header>
<section id="id36F5785EB80D405DB20294A0F0D20972"><enum>2101.</enum><header>Information reporting
for rental property expense payments</header>
<subsection id="id2F3DA90AE436453DAFFE8FA2EABF7F6D"><enum>(a)</enum><header>In
general</header><text>Section 6041 of the Internal Revenue Code of 1986, as
amended by section 9006 of the Patient Protection and Affordable Care Act, is
amended by redesignating subsections (h) and (i) as subsections (i) and (j),
respectively, and by inserting after subsection (g) the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDD2CD03CB7474858BAB377774CD04780" reported-display-style="italic" style="OLC">
<subsection id="idB526DA4191D44F5797A69DF5EA715FD8"><enum>(h)</enum><header>Treatment of rental
property expense payments</header>
<paragraph id="id45D093651C4A425A86AF945CAD79A0B1"><enum>(1)</enum><header>In
general</header><text>Solely for purposes of subsection (a) and except as
provided in paragraph (2), a person receiving rental income from real estate
shall be considered to be engaged in a trade or business of renting
property.</text>
</paragraph><paragraph commented="no" id="id7F761B6741274009A948F7CAC73E2D59"><enum>(2)</enum><header>Exceptions</header><text>Paragraph
(1) shall not apply to—</text>
<subparagraph commented="no" id="id77BF9C65096C459298895AA9102D0A4D"><enum>(A)</enum><text>any individual, including
any individual who is an active member of the uniformed services or an employee
of the intelligence community (as defined in section 121(d)(9)(C)(iv)), if
substantially all rental income is derived from renting the principal residence
(within the meaning of section 121) of such individual on a temporary
basis,</text>
</subparagraph><subparagraph commented="no" id="id908F6946B08D4288B793D5595EF78546"><enum>(B)</enum><text>any individual who
receives rental income of not more than the minimal amount, as determined under
regulations prescribed by the Secretary, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6C7F6A87978441979B97708FCFA73D13"><enum>(C)</enum><text>any other individual for
whom the requirements of this section would cause hardship, as determined under
regulations prescribed by the
Secretary.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD27A3B4C6CCD4E5D8B66E9EAA136CB29"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall apply to
payments made after December 31, 2010.</text>
</subsection></section><section display-inline="no-display-inline" id="H7C8E49AE58E542EAA6D2AB54C612F78D" section-type="subsequent-section"><enum>2102.</enum><header>Increase in
information return penalties</header>
<subsection id="HA57CD54DD7534E2F8B134E7674E2CA1C"><enum>(a)</enum><header>Failure To file correct
information returns</header>
<paragraph id="H3B5CAB83C52D498F86D814DB47BA38EF"><enum>(1)</enum><header>In
general</header><text>Subsections (a)(1), (b)(1)(A), and (b)(2)(A) of section
6721 of the Internal Revenue Code of 1986 are each amended by striking
<quote>$50</quote> and inserting <quote>$100</quote>.</text>
</paragraph><paragraph id="H12B8E98253E943C8AFB67C82E388CA25"><enum>(2)</enum><header>Aggregate annual
limitation</header><text display-inline="yes-display-inline">Subsections
(a)(1), (d)(1)(A), and (e)(3)(A) of section 6721 of such Code are each amended
by striking <quote>$250,000</quote> and inserting
<quote>$1,500,000</quote>.</text>
</paragraph></subsection><subsection id="HF286FF85BAF4420280457259847BC9A5"><enum>(b)</enum><header>Reduction where
correction within 30 days</header>
<paragraph id="H20CD6D167F4348ABA300BBBB71A60980"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 6721(b)(1) of the Internal
Revenue Code of 1986 is amended by striking <quote>$15</quote> and inserting
<quote>$30</quote>.</text>
</paragraph><paragraph id="H5400D15538A64BCF817F27A02417FF38"><enum>(2)</enum><header>Aggregate annual
limitation</header><text>Subsections (b)(1)(B) and (d)(1)(B) of section 6721 of
such Code are each amended by striking <quote>$75,000</quote> and inserting
<quote>$250,000</quote>.</text>
</paragraph></subsection><subsection id="H44B670139EA246FB85DE54F3DE006B4E"><enum>(c)</enum><header>Reduction where
correction on or before August 1</header>
<paragraph id="H1ABAE45F800243A7BFAFDFB21459A436"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 6721(b)(2) of the Internal
Revenue Code of 1986 is amended by striking <quote>$30</quote> and inserting
<quote>$60</quote>.</text>
</paragraph><paragraph id="H69386AD5C60D47ACB67B8625780021A9"><enum>(2)</enum><header>Aggregate annual
limitation</header><text display-inline="yes-display-inline">Subsections
(b)(2)(B) and (d)(1)(C) of section 6721 of such Code are each amended by
striking <quote>$150,000</quote> and inserting <quote>$500,000</quote>.</text>
</paragraph></subsection><subsection id="H505DBB6B156D497B8EFFD48411851E80"><enum>(d)</enum><header>Aggregate annual
limitations for persons with gross receipts of not more than
$5,000,000</header>
<paragraph id="id75FED32A22B14881971006999C9F0B95"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 6721(d) of the Internal Revenue Code of 1986 is amended—</text>
<subparagraph id="HAB13D393A6A84D8980F8AA27436B8838"><enum>(A)</enum><text>by striking
<quote>$100,000</quote> in subparagraph (A) and inserting
<quote>$500,000</quote>,</text>
</subparagraph><subparagraph id="H95AA5DC0140E4D41ACFC534D66FEEDDD"><enum>(B)</enum><text>by striking
<quote>$25,000</quote> in subparagraph (B) and inserting
<quote>$75,000</quote>, and</text>
</subparagraph><subparagraph id="H10C1E71F6B234B5DAC5F8BC4A8642500"><enum>(C)</enum><text>by striking
<quote>$50,000</quote> in subparagraph (C) and inserting
<quote>$200,000</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="idFC2E0BCA596244E595EC9999D71D39F7"><enum>(2)</enum><header>Technical
amendment</header><text>Paragraph (1) of section 6721(d) of such Code is
amended by striking <quote>such taxable year</quote> and inserting <quote>such
calendar year</quote>.</text>
</paragraph></subsection><subsection id="H610D92F8966C445EB97CBA14D9F30C6"><enum>(e)</enum><header>Penalty in case of
intentional disregard</header><text display-inline="yes-display-inline">Paragraph (2) of section 6721(e) of the
Internal Revenue Code of 1986 is amended by striking <quote>$100</quote> and
inserting <quote>$250</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id181ECA22492E41CFA42D9A46B5B8C2D5"><enum>(f)</enum><header>Adjustment for
inflation</header><text>Section 6721 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id9ADC636D9B194E5FB1324AFD6005DA76" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H806AD36A090E445F9E32F36529DE4E31"><enum>(f)</enum><header display-inline="yes-display-inline">Adjustment for inflation</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBE83E7ACAC9D40679278A6011C184E5E"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a), (b), (d) (other
than paragraph (2)(A) thereof), and (e) shall be increased by such dollar
amount multiplied by the cost-of-living adjustment determined under section
1(f)(3) determined by substituting <quote>calendar year 2011</quote> for
<quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id02AFEEF5703542C0819975A7135B481C"><enum>(2)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If any amount adjusted under paragraph
(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8DA2CB2AE0A74570BF55C014C1B83B9F"><enum>(A)</enum><text display-inline="yes-display-inline">is not less than $75,000 and is not a
multiple of $500, such amount shall be rounded to the next lowest multiple of
$500, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idCB255949EF8948B9BA24C400DF5C8D81"><enum>(B)</enum><text display-inline="yes-display-inline">is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to the next lowest multiple
of
$10.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id539DD01C9A804CDF8AF2A2253D7FCAC1"><enum>(g)</enum><header>Failure To furnish
correct payee statements</header><text>Section 6722 of the Internal Revenue
Code of 1986 is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id098F93C790E7447687F0589C2034C1B2" reported-display-style="italic" style="OLC">
<section id="id0CD80E44D9B5453A8EF60DCF69B72B07"><enum>6722.</enum><header>Failure to furnish
correct payee statements</header>
<subsection id="id30094E91EF004A238D73818E11BF2752"><enum>(a)</enum><header>Imposition of
penalty</header>
<paragraph id="id13172F73C99F4DDFB6367D84F4A1CFF7"><enum>(1)</enum><header>General
rule</header><text>In the case of each failure described in paragraph (2) by
any person with respect to a payee statement, such person shall pay a penalty
of $100 for each statement with respect to which such a failure occurs, but the
total amount imposed on such person for all such failures during any calendar
year shall not exceed $1,500,000.</text>
</paragraph><paragraph id="id19BE4FACB0844C9F8E1930673259015B"><enum>(2)</enum><header>Failures subject to
penalty</header><text>For purposes of paragraph (1), the failures described in
this paragraph are—</text>
<subparagraph id="id4EA0F2B0F3D4445BBB3DAF3B98D44520"><enum>(A)</enum><text>any failure to furnish a
payee statement on or before the date prescribed therefor to the person to whom
such statement is required to be furnished, and</text>
</subparagraph><subparagraph id="id308ED983831A48EF9AE0F019D066DDC0"><enum>(B)</enum><text>any failure to include
all of the information required to be shown on a payee statement or the
inclusion of incorrect information.</text>
</subparagraph></paragraph></subsection><subsection id="idD52781A78D144823BD6469283073F5A5"><enum>(b)</enum><header>Reduction where
correction in specified period</header>
<paragraph id="id2F570301F292404491BA3CB659DAAA88"><enum>(1)</enum><header>Correction within 30
days</header><text>If any failure described in subsection (a)(2) is corrected
on or before the day 30 days after the required filing date—</text>
<subparagraph id="id9AC1BCE042DE401F8AA8DDBFEE04DFBB"><enum>(A)</enum><text>the penalty imposed by
subsection (a) shall be $30 in lieu of $100, and</text>
</subparagraph><subparagraph id="id8F2389AC6A084F2E8BC3A6005B977858"><enum>(B)</enum><text>the total amount imposed
on the person for all such failures during any calendar year which are so
corrected shall not exceed $250,000.</text>
</subparagraph></paragraph><paragraph id="id2DE02691E0C24BD294B551F58847B475"><enum>(2)</enum><header>Failures corrected on
or before August 1</header><text>If any failure described in subsection (a)(2)
is corrected after the 30th day referred to in paragraph (1) but on or before
August 1 of the calendar year in which the required filing date occurs—</text>
<subparagraph id="idF737EA7F97E044E29247551C99811D84"><enum>(A)</enum><text>the penalty imposed by
subsection (a) shall be $60 in lieu of $100, and</text>
</subparagraph><subparagraph id="id8A2A899DA4384A5DAF8ECD93FA5143E1"><enum>(B)</enum><text>the total amount imposed
on the person for all such failures during the calendar year which are so
corrected shall not exceed $500,000.</text>
</subparagraph></paragraph></subsection><subsection id="id5713BE16EE0046898F347AE61B403068"><enum>(c)</enum><header>Exception for de
minimis failures</header>
<paragraph id="P29D804CB141446DEA010D9CCE1497544"><enum>(1)</enum><header>In
general</header><text>If—</text>
<subparagraph id="P7FB47E0304764DA2B95E23FC82320DCD"><enum>(A)</enum><text>a payee statement is
furnished to the person to whom such statement is required to be
furnished,</text>
</subparagraph><subparagraph id="PBB05F51AC0A94F97A3DF32859E66F3C3"><enum>(B)</enum><text>there is a failure
described in subsection (a)(2)(B) (determined after the application of section
6724(a)) with respect to such statement, and</text>
</subparagraph><subparagraph id="P3C99131C6E7E4A52BD44D393B64C4712"><enum>(C)</enum><text>such failure is corrected
on or before August 1 of the calendar year in which the required filing date
occurs,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">for purposes of this section, such
statement shall be treated as having been furnished with all of the correct
required information.</continuation-text></paragraph><paragraph id="PB74CF88CF3B84C959D7F42E2EC13F7D7"><enum>(2)</enum><header>Limitation</header><text>The
number of payee statements to which paragraph (1) applies for any calendar year
shall not exceed the greater of—</text>
<subparagraph id="PDD77FABD80894B5E95438E2D12A0F104"><enum>(A)</enum><text>10, or</text>
</subparagraph><subparagraph id="P36198E81511A494BB0B76E039EF37F80"><enum>(B)</enum><text>one-half of 1 percent of
the total number of payee statements required to be filed by the person during
the calendar year.</text>
</subparagraph></paragraph></subsection><subsection id="idD58423E906BA43D09AE803FF301E681A"><enum>(d)</enum><header>Lower limitations for
persons with gross receipts of not more than $5,000,000</header>
<paragraph id="idEB24071F72BB47859B59E31D87560D79"><enum>(1)</enum><header>In
general</header><text>If any person meets the gross receipts test of paragraph
(2) with respect to any calendar year, with respect to failures during such
calendar year—</text>
<subparagraph id="id9544759389174CAEBFF0215099B4DDC3"><enum>(A)</enum><text>subsection (a)(1) shall
be applied by substituting <quote>$500,000</quote> for
<quote>$1,500,000</quote>,</text>
</subparagraph><subparagraph id="idF20C932E8FDB484EAA87097D6540FB2F"><enum>(B)</enum><text>subsection (b)(1)(B)
shall be applied by substituting <quote>$75,000</quote> for
<quote>$250,000</quote>, and</text>
</subparagraph><subparagraph id="idAEA287E1E9CD48519B4DB2F4563221FC"><enum>(C)</enum><text>subsection (b)(2)(B)
shall be applied by substituting <quote>$200,000</quote> for
<quote>$500,000</quote>.</text>
</subparagraph></paragraph><paragraph id="id4047EC5E5B2A4F5982FAEA1575DFE901"><enum>(2)</enum><header>Gross receipts
test</header><text>A person meets the gross receipts test of this paragraph if
such person meets the gross receipts test of section 6721(d)(2).</text>
</paragraph></subsection><subsection id="id23FB3195E7AE4D0FB5FA70D36A6A1B60"><enum>(e)</enum><header>Penalty in case of
intentional disregard</header><text>If 1 or more failures to which subsection
(a) applies are due to intentional disregard of the requirement to furnish a
payee statement (or the correct information reporting requirement), then, with
respect to each such failure—</text>
<paragraph id="id83761569999C41C9BA88DEF8650C3F01"><enum>(1)</enum><text>subsections (b), (c), and
(d) shall not apply,</text>
</paragraph><paragraph id="idC90FD8D7212F4CEA9F72D2F1295CEC04"><enum>(2)</enum><text>the penalty imposed under
subsection (a)(1) shall be $250, or, if greater—</text>
<subparagraph id="id7A888FEDCC53411B891257043330D377"><enum>(A)</enum><text>in the case of a payee
statement other than a statement required under section 6045(b), 6041A(e) (in
respect of a return required under section 6041A(b)), 6050H(d), 6050J(e),
6050K(b), or 6050L(c), 10 percent of the aggregate amount of the items required
to be reported correctly, or</text>
</subparagraph><subparagraph id="id41B965F6C50645D18D1A6C8E004829BC"><enum>(B)</enum><text>in the case of a payee
statement required under section 6045(b), 6050K(b), or 6050L(c), 5 percent of
the aggregate amount of the items required to be reported correctly, and</text>
</subparagraph></paragraph><paragraph id="id3148F6B614094EB5BD86CEDDEE0824D2"><enum>(3)</enum><text>in the case of any
penalty determined under paragraph (2)—</text>
<subparagraph id="id85EDD27C762740CBAFCF5F64C68CD90F"><enum>(A)</enum><text>the $1,500,000 limitation
under subsection (a) shall not apply, and</text>
</subparagraph><subparagraph id="id39BD67B5433940359166757D15B6A651"><enum>(B)</enum><text>such penalty shall not be
taken into account in applying such limitation to penalties not determined
under paragraph (2).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6E21D1371FEB4EF0B53C5F4DC0401044"><enum>(f)</enum><header display-inline="yes-display-inline">Adjustment for inflation</header>
<paragraph commented="no" display-inline="no-display-inline" id="idF6B78D566C934D5FAAB3C8CCD5EFA287"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">For each fifth calendar year beginning
after 2012, each of the dollar amounts under subsections (a), (b), (d)(1), and
(e) shall be increased by such dollar amount multiplied by the cost-of-living
adjustment determined under section 1(f)(3) determined by substituting
<quote>calendar year 2011</quote> for <quote>calendar year 1992</quote> in
subparagraph (B) thereof.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id17A8AA009CDD4C9686275C65470DB279"><enum>(2)</enum><header display-inline="yes-display-inline">Rounding</header><text display-inline="yes-display-inline">If any amount adjusted under paragraph
(1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD661F72BC1544743A062956F7D5BD90C"><enum>(A)</enum><text display-inline="yes-display-inline">is not less than $75,000 and is not a
multiple of $500, such amount shall be rounded to the next lowest multiple of
$500, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id69C011BC64254E89829DAC6AE1664493"><enum>(B)</enum><text display-inline="yes-display-inline">is not described in subparagraph (A) and is
not a multiple of $10, such amount shall be rounded to the next lowest multiple
of
$10.</text>
</subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE81F054D43944E06942E0014CF12A2B8"><enum>(h)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply with respect
to information returns required to be filed on or after January 1, 2011.</text>
</subsection></section><section id="idD89B61A5EBF444C39208D5FCFA6388FE"><enum>2103.</enum><header>Report on tax shelter
penalties and certain other enforcement actions</header>
<subsection id="id7BB5F86C471041A1ACBEEA8F63052F24"><enum>(a)</enum><header>In
general</header><text>The Commissioner of Internal Revenue, in consultation
with the Secretary of the Treasury, shall submit to the Committee on Ways and
Means of the House of Representatives and the Committee on Finance of the
Senate an annual report on the penalties assessed by the Internal Revenue
Service during the preceding year under each of the following provisions of the
Internal Revenue Code of 1986:</text>
<paragraph id="idCA5ECD950DCB41E3A9E26297725B9915"><enum>(1)</enum><text>Section 6662A (relating
to accuracy-related penalty on understatements with respect to reportable
transactions).</text>
</paragraph><paragraph id="id5C8F53B0841F40A088B170C24AC4F443"><enum>(2)</enum><text>Section 6700(a) (relating
to promoting abusive tax shelters).</text>
</paragraph><paragraph id="idC650537D665F44AC93EFB00BE8246B2C"><enum>(3)</enum><text>Section 6707 (relating to
failure to furnish information regarding reportable transactions).</text>
</paragraph><paragraph id="id4461833E48D14444B00BAD557EDE95B3"><enum>(4)</enum><text>Section 6707A (relating
to failure to include reportable transaction information with return).</text>
</paragraph><paragraph id="id16D5EA50D54949B08FDEE677B04DDB91"><enum>(5)</enum><text>Section 6708 (relating to
failure to maintain lists of advisees with respect to reportable
transactions).</text>
</paragraph></subsection><subsection id="id562265DC806B4D5587BEBCA54684EB4E"><enum>(b)</enum><header>Additional
information</header><text>The report required under subsection (a) shall also
include information on the following with respect to each year:</text>
<paragraph id="idB926ACD6EA194DF58CAAB05F080B1707"><enum>(1)</enum><text>Any action taken under
section 330(b) of title 31, United States Code, with respect to any reportable
transaction (as defined in section 6707A(c) of the Internal Revenue Code of
1986).</text>
</paragraph><paragraph id="id39B9E2B97D6340C984D4974412FE99AD"><enum>(2)</enum><text>Any extension of the time
for assessment of tax enforced, or assessment of any amount under such an
extension, under paragraph (10) of section 6501(c) of the Internal Revenue Code
of 1986.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0208A7320C08443D81DCB959EBB9D75B"><enum>(c)</enum><header>Date of
report</header><text>The first report required under subsection (a) shall be
submitted not later than December 31, 2010.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H4B80ABE1B2ED494FB0ADC8DED22FC767" section-type="subsequent-section"><enum>2104.</enum><header display-inline="yes-display-inline">Application of continuous levy to tax
liabilities of certain Federal contractors</header>
<subsection commented="no" display-inline="no-display-inline" id="H63F76737BB45486A9CF3B6450F30E73C"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (f) of
<external-xref legal-doc="usc" parsable-cite="usc/26/6330">section
6330</external-xref> of the Internal Revenue Code of 1986 is amended by
striking <quote>or</quote> at the end of paragraph (2), by inserting
<quote>or</quote> at the end of paragraph (3), and by inserting after paragraph
(3) the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HEE9438380C6A4A3D8A4D77EE524F0CC5" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HC585C3E12E4F4BDD829318E7F15782F4"><enum>(4)</enum><text display-inline="yes-display-inline">the Secretary has served a Federal
contractor
levy,</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H11F1A310C82B49A6B79FF590DFC7E56F"><enum>(b)</enum><header display-inline="yes-display-inline">Federal contractor levy</header><text display-inline="yes-display-inline">Subsection (h) of
<external-xref legal-doc="usc" parsable-cite="usc/26/6330">section
6330</external-xref> of the Internal Revenue Code of 1986 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H32F2E44B84DA4047939B14D550FEFDEA"><enum>(1)</enum><text display-inline="yes-display-inline">by striking all that precedes <quote>any
levy in connection with the collection</quote> and inserting the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HE0987780FA744B09BE01AA3579BEB02B" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HA023F17C889E41D7A6A9A75DD029F986"><enum>(h)</enum><header display-inline="yes-display-inline">Definitions related to
exceptions</header><text display-inline="yes-display-inline">For purposes of
subsection (f)—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HE3DFCDC844FC4AF7BF5B780536912CAC"><enum>(1)</enum><header display-inline="yes-display-inline">Disqualified employment tax
levy</header><text display-inline="yes-display-inline">A disqualified
employment tax levy is</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1CF4FF55DB543C49EE0E9E70A3152E8"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H9C703F610DEB40AFB049742AA49910A3" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HDB6E4962E65747AB97112692473B1B48"><enum>(2)</enum><header display-inline="yes-display-inline">Federal contractor levy</header><text display-inline="yes-display-inline">A Federal contractor levy is any levy if
the person whose property is subject to the levy (or any predecessor thereof)
is a Federal
contractor.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H78013BA7A2A547F7913E08F3B4AFD92B"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendment</header><text display-inline="yes-display-inline">The heading of subsection (f) of
<external-xref legal-doc="usc" parsable-cite="usc/26/6330">section
6330</external-xref> of the Internal Revenue Code of 1986 is amended by
striking <quote><header-in-text level="subsection" style="OLC">Jeopardy and
State refund collection</header-in-text></quote> and inserting
<quote><header-in-text level="subsection" style="OLC">Exceptions</header-in-text></quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HBC5088B3CB4645DE80461C5EFC01F8B2"><enum>(d)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to levies issued after the date of the enactment of
this Act.</text>
</subsection></section></part><part id="id175E51E834D74B53B58EAEAA7BA781FB"><enum>II</enum><header>Promoting retirement
preparation</header>
<section id="ID1A2DD41F698A48898371CABD48B31757"><enum>2111.</enum><header>Participants in
government section <enum-in-header>457</enum-in-header> plans allowed to treat
elective deferrals as Roth contributions</header>
<subsection id="ID70457ED36BA04BFAB5D1E5C681F29595"><enum>(a)</enum><header>In
general</header><text>Section 402A(e)(1) of the Internal Revenue Code of 1986
is amended by striking <quote>and</quote> at the end of subparagraph (A), by
striking the period at the end of subparagraph (B) and inserting <quote>,
and</quote>, and by adding at the end the following:</text>
<quoted-block changed="added" id="ID5945F431379F4C199076F9F8AF499FEF" reported-display-style="italic" style="OLC">
<subparagraph id="ID5F4D4A30CD064BF9BBF5A82AF177223A"><enum>(C)</enum><text>an eligible deferred
compensation plan (as defined in section 457(b)) of an eligible employer
described in section
457(e)(1)(A).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID2AD854B310B34D328437D30B79080C92"><enum>(b)</enum><header>Elective
deferrals</header><text>Section 402A(e)(2) of the Internal Revenue Code of 1986
is amended to read as follows:</text>
<quoted-block changed="added" id="ID12B79075925245D0994CCB7A1AFEF950" reported-display-style="italic" style="OLC">
<paragraph id="ID5EFC2AADCEB34C73915ED6BDD9421BC9"><enum>(2)</enum><header>Elective
deferral</header><text>The term <term>elective deferral</term> means—</text>
<subparagraph id="IDA67D51D203D24FDE9312951EC0AE5466"><enum>(A)</enum><text>any elective deferral
described in subparagraph (A) or (C) of section 402(g)(3), and</text>
</subparagraph><subparagraph id="IDE7BCFBC4336B4C9FA3DF7C908253EE7A"><enum>(B)</enum><text>any elective deferral of
compensation by an individual under an eligible deferred compensation plan (as
defined in section 457(b)) of an eligible employer described in section
457(e)(1)(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="ID256AE764BD124156BBA68B480EB17C6B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.</text>
</subsection></section><section id="id0D139D9DF1B147B2B5C3D309D54875C5"><enum>2112.</enum><header>Rollovers from
elective deferral plans to designated Roth accounts</header>
<subsection id="id71FA696A33A4411E84F412A7480650C9"><enum>(a)</enum><header>In
general</header><text>Section 402A(c) of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id5C02847AE9664433B2812E826B6AC18F" reported-display-style="italic" style="OLC">
<paragraph id="id5D75811926A3477C801F46B88DDE1945"><enum>(4)</enum><header>Taxable rollovers to
designated Roth accounts</header>
<subparagraph id="id904C7E77BC0542258A56D43283085B52"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding
sections 402(c), 403(b)(8), and 457(e)(16), in the case of any distribution to
which this paragraph applies—</text>
<clause commented="no" display-inline="no-display-inline" id="PDAE32B3016A54417BE2C5F002375F6DA"><enum>(i)</enum><text>there shall be included
in gross income any amount which would be includible were it not part of a
qualified rollover contribution,</text>
</clause><clause commented="no" display-inline="no-display-inline" id="PEC71EF1488354E13BB123811CB8BC908"><enum>(ii)</enum><text>section 72(t) shall not
apply, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="PB323C88745984005816E39B9A4695C67"><enum>(iii)</enum><text>unless the taxpayer
elects not to have this clause apply, any amount required to be included in
gross income for any taxable year beginning in 2010 by reason of this paragraph
shall be so included ratably over the 2-taxable-year period beginning with the
first taxable year beginning in 2011.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">Any election under clause (iii) for any
distributions during a taxable year may not be changed after the due date for
such taxable year.</continuation-text></subparagraph><subparagraph id="id76902FFC488C4055A43DA4234356C750"><enum>(B)</enum><header>Distributions to which
paragraph applies</header><text>In the case of an applicable retirement plan
which includes a qualified Roth contribution program, this paragraph shall
apply to a distribution from such plan other than from a designated Roth
account which is contributed in a qualified rollover contribution (within the
meaning of section 408A(e)) to the designated Roth account maintained under
such plan for the benefit of the individual to whom the distribution is
made.</text>
</subparagraph><subparagraph id="id061E9CD5834549E19814AB028C03C902"><enum>(C)</enum><header>Coordination with
limit</header><text>Any distribution to which this paragraph applies shall not
be taken into account for purposes of paragraph (1).</text>
</subparagraph><subparagraph id="id202C726BED834E63B95EACC1704DB4A6"><enum>(D)</enum><header>Other
rules</header><text>The rules of subparagraphs (D), (E), and (F) of section
408A(d)(3) (as in effect for taxable years beginning after 2009) shall apply
for purposes of this
paragraph.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idFEB979C1775D4D2FBD36753DA7996A90"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
distributions after the date of the enactment of this Act.</text>
</subsection></section><section id="idCFDEFA2B0B014071A1A1C93C50366E42"><enum>2113.</enum><header>Special rules for
annuities received from only a portion of a contract</header>
<subsection id="H616763E4BF124FE3BC2CBCDE16EC00C4"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 72 of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H391705F7E89742A9AA4BCE05A7490045" reported-display-style="italic" style="OLC">
<subsection id="HBAD8942111DF4D4793DA7C94225D8800"><enum>(a)</enum><header>General rules for
annuities</header>
<paragraph id="id5337EAC2C0694FD991672D75B093A194"><enum>(1)</enum><header>Income
inclusion</header><text display-inline="yes-display-inline">Except as otherwise
provided in this chapter, gross income includes any amount received as an
annuity (whether for a period certain or during one or more lives) under an
annuity, endowment, or life insurance contract.</text>
</paragraph><paragraph id="id15BBC7B5BC8E4A12AE7FE7324ED5533D"><enum>(2)</enum><header>Partial
annuitization</header><text display-inline="yes-display-inline">If any amount
is received as an annuity for a period of 10 years or more or during one or
more lives under any portion of an annuity, endowment, or life insurance
contract—</text>
<subparagraph id="HD29FB4AE76A544279BE5EA7BE87426D6"><enum>(A)</enum><text display-inline="yes-display-inline">such portion shall be treated as a separate
contract for purposes of this section,</text>
</subparagraph><subparagraph id="H8DBB9FA94A764CF3AD84F19D65D63646"><enum>(B)</enum><text>for purposes of applying
subsections (b), (c), and (e), the investment in the contract shall be
allocated pro rata between each portion of the contract from which amounts are
received as an annuity and the portion of the contract from which amounts are
not received as an annuity, and</text>
</subparagraph><subparagraph id="HC992199F52A04094AB876059B801D293"><enum>(C)</enum><text>a separate annuity
starting date under subsection (c)(4) shall be determined with respect to each
portion of the contract from which amounts are received as an
annuity.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H307739F32A5D4607A260A39E87EEDBBA"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to amounts
received in taxable years beginning after December 31, 2010.</text>
</subsection></section></part><part id="idD57445DD19AF4EC9A07B9AE59E6F5DE4"><enum>III</enum><header>Closing unintended
loopholes</header>
<section commented="no" display-inline="no-display-inline" id="HA910DD2F1F1143D0A67FFC47756F3090" section-type="subsequent-section"><enum>2121.</enum><header display-inline="yes-display-inline">Crude tall oil ineligible for cellulosic
biofuel producer credit</header>
<subsection commented="no" display-inline="no-display-inline" id="HCE1E1CBF80364FC0A6A754A91E171395"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Clause (iii) of s<external-xref legal-doc="usc" parsable-cite="usc/26/40">ection 40(b)(6)(E)</external-xref> of
the Internal Revenue Code of 1986, as added by the Health Care and Education
Reconciliation Act of 2010, is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id92C9C1FBA6024F43B1CB66601CF8ED7D"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the end of
subclause (I),</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id36CFC7FBD6EC482DA2A4218590A66EDD"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the period at the end of
subclause (II) and inserting <quote>, or</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1C69305B951949339603CE0EBDD7F6EE"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subclause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id8986FD14360340F58435DF5582FFAF80" reported-display-style="italic" style="OLC">
<subclause commented="no" display-inline="no-display-inline" id="id8B434CD6A93A4FE8BB6FEAAC9302366B"><enum>(III)</enum><text display-inline="yes-display-inline">such fuel has an acid number greater than
25.</text>
</subclause><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF4AAD2A17F264A889CC42C979DFEAA69"><enum>(4)</enum><text display-inline="yes-display-inline">by striking <quote><header-in-text level="clause" style="OLC">unprocessed</header-in-text></quote> in the heading
and inserting <quote><header-in-text level="clause" style="OLC">certain</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HCE2EE13D231641649912F2F8A3541C89"><enum>(b)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to fuels sold or used on or after January 1,
2010.</text>
</subsection></section><section id="H244B261AB9A848AF9B11157E1DA4B8B1"><enum>2122.</enum><header>Source rules for
income on guarantees</header>
<subsection id="H7329999116B24C5D90AF945E6A2BA346"><enum>(a)</enum><header>Amounts sourced within
the United States</header><text display-inline="yes-display-inline">Subsection
(a) of section 861 of the Internal Revenue Code of 1986 is amended by adding at
the end the following new paragraph:</text>
<quoted-block act-name="" changed="added" id="idD2311EEA96514C209654222759799C22" reported-display-style="italic" style="OLC">
<paragraph id="id39381E2D19634407B2A8F53D28CBE7F8"><enum>(9)</enum><header>Guarantees</header><text>Amounts
received, directly or indirectly, from—</text>
<subparagraph id="idD6B0B94D0C264970B2F9F63F37D2C68A"><enum>(A)</enum><text>a noncorporate resident
or domestic corporation for the provision of a guarantee of any indebtedness of
such resident or corporation, or</text>
</subparagraph><subparagraph id="id9F2DE5C258F24180AB44478F7FD2E568"><enum>(B)</enum><text>any foreign person for
the provision of a guarantee of any indebtedness of such person, if such amount
is connected with income which is effectively connected (or treated as
effectively connected) with the conduct of a trade or business in the United
States.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H9F058AE210E94A74B48995A8615A9EB3"><enum>(b)</enum><header>Amounts sourced without
the United States</header><text>Subsection (a) of section 862 of the Internal
Revenue Code of 1986 is amended by striking <quote>and</quote> at the end of
paragraph (7), by striking the period at the end of paragraph (8) and inserting
<quote>; and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H0C09F0F142714A9FAB4B2992B26064B4" reported-display-style="italic" style="OLC">
<paragraph id="H9884F1EEB58648688E410A59C50AD862"><enum>(9)</enum><text display-inline="yes-display-inline">amounts received, directly or indirectly,
from a foreign person for the provision of a guarantee of indebtedness of such
person other than amounts which are derived from sources within the United
States as provided in section
861(a)(9).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFB1D5D9A523449C3BCF771F191CD6685"><enum>(c)</enum><header>Conforming
amendment</header><text>Clause (ii) of section 864(c)(4)(B) of the Internal
Revenue Code of 1986 is amended by striking <quote>dividends or
interest</quote> and inserting <quote>dividends, interest, or amounts received
for the provision of guarantees of indebtedness</quote>.</text>
</subsection><subsection id="HF54CD66E41EA4437A1381B276F0F2BCF"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
guarantees issued after the date of the enactment of this Act.</text>
</subsection></section></part><part id="idDD2B7EB8A8CF4E8CA3D9C85DA8102CF4"><enum>IV</enum><header>Time for payment of
corporate estimated taxes</header>
<section commented="no" display-inline="no-display-inline" id="id5673C435272E40CA8F93030683940ACF"><enum>2131.</enum><header>Time for payment of
corporate estimated taxes</header><text display-inline="no-display-inline">The
percentage under paragraph (2) of section 561 of the Hiring Incentives to
Restore Employment Act in effect on the date of the enactment of this Act is
increased by 36 percentage points.</text>
</section></part></subtitle><enum>III</enum><header>State Small Business
Credit Initiative</header>
<section id="IDc6d2c85a6cfd4e1399816abcf10c3098"><enum>3001.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>State Small Business Credit Initiative Act of
2010</quote>.</text>
</section><section id="ID154d3abba2194a8696a38421251df4c3"><enum>3002.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title, the following definitions
shall apply:</text>
<paragraph id="id181E5187B526490E921E09E043B928ED"><enum>(1)</enum><header>Appropriate committees
of Congress</header><text>The term <term>appropriate committees of
Congress</term> means—</text>
<subparagraph id="id32C3E898C1984037A0F3A7394C3F08AC"><enum>(A)</enum><text>the Committee on Small
Business and Entrepreneurship, the Committee on Agriculture, Nutrition, and
Forestry, the Committee on Banking, Housing, and Urban Affairs, the Committee
on Finance, the Committee on the Budget, and the Committee on Appropriations of
the Senate; and</text>
</subparagraph><subparagraph id="idF5610ACBD81A49689D811662068C77F2"><enum>(B)</enum><text>the Committee on Small
Business, the Committee on Agriculture, the Committee on Financial Services,
the Committee on Ways and Means, the Committee on the Budget, and the Committee
on Appropriations of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="ID983c6880993d4f4b8f7d21b58c09d4b1"><enum>(2)</enum><header>Appropriate Federal
banking agency</header><text>The term <term>appropriate Federal banking
agency</term>—</text>
<subparagraph id="ID534dc0f0db904aeb8d08b669cb683639"><enum>(A)</enum><text>has the same meaning as
in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q));
and</text>
</subparagraph><subparagraph id="IDa679ceb472764f1cbfa5011c908ec0e3"><enum>(B)</enum><text>includes the National
Credit Union Administration Board in the case of any credit union the deposits
of which are insured in accordance with the Federal Credit Union Act.</text>
</subparagraph></paragraph><paragraph id="ID1f4407df9e8d420f95504d8ae077ea24"><enum>(3)</enum><header>Enrolled
loan</header><text>The term <term>enrolled loan</term> means a loan made by a
financial institution lender that is enrolled by a participating State in an
approved State capital access program in accordance with this title.</text>
</paragraph><paragraph id="IDc47182f482414a0c8019c162f3a7ae21"><enum>(4)</enum><header>Federal
contribution</header><text>The term <term>Federal contribution</term> means the
portion of the contribution made by a participating State to, or for the
account of, an approved State program that is made with Federal funds allocated
to the State by the Secretary under section 3003.</text>
</paragraph><paragraph id="IDa3f738293dbd4af78087298dd06542f7"><enum>(5)</enum><header>Financial
institution</header><text>The term <term>financial institution</term> means any
insured depository institution, insured credit union, or community development
financial institution, as those terms are each defined in section 103 of the
Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C.
4702).</text>
</paragraph><paragraph id="IDeef00f6fed3f4c0c9eed207206b3840c"><enum>(6)</enum><header>Participating
State</header><text>The term <term>participating State</term> means any State
that has been approved for participation in the Program under section
3004.</text>
</paragraph><paragraph id="IDa9b893820d5147dc9ecc8b6a0079c2ba"><enum>(7)</enum><header>Program</header><text>The
term <term>Program</term> means the State Small Business Credit Initiative
established under this title.</text>
</paragraph><paragraph id="IDce188a0ea81b4eda84f1c158fa027fdb"><enum>(8)</enum><header>Qualifying loan or swap
funding facility</header><text>The term <term>qualifying loan or swap funding
facility</term> means a contractual arrangement between a participating State
and a private financial entity under which—</text>
<subparagraph id="ID1f0a775c619e452786e908b494244f66"><enum>(A)</enum><text>the participating State
delivers funds to the entity as collateral;</text>
</subparagraph><subparagraph id="ID4f04b39a186f450b9d8ed99f8a4ee07b"><enum>(B)</enum><text>the entity provides
funding from the arrangement back to the participating State; and</text>
</subparagraph><subparagraph id="ID4e9e619b778441d68b584b576c8fd91a"><enum>(C)</enum><text>the full amount of
resulting funding from the arrangement, less any fees and other costs of the
arrangement, is contributed to, or for the account of, an approved State
program.</text>
</subparagraph></paragraph><paragraph id="IDc11c244935b649d4a4c1827bd56a2d18"><enum>(9)</enum><header>Reserve
fund</header><text>The term <term>reserve fund</term> means a fund, established
by a participating State, dedicated to a particular financial institution
lender, for the purposes of—</text>
<subparagraph id="ID404c2356cdf348fb9d00937686132cb3"><enum>(A)</enum><text>depositing all required
premium charges paid by the financial institution lender and by each borrower
receiving a loan under an approved State program from that financial
institution lender;</text>
</subparagraph><subparagraph id="IDc5e89f100ed740eeb2235350bf5d185d"><enum>(B)</enum><text>depositing contributions
made by the participating State, including State contributions made with
Federal contributions; and</text>
</subparagraph><subparagraph id="ID4c7c68dd53b64ff29db88f7fcca9389a"><enum>(C)</enum><text>covering losses on
enrolled loans by disbursing accumulated funds.</text>
</subparagraph></paragraph><paragraph id="IDd7a4e921e60d4774926b373ab3ec209f"><enum>(10)</enum><header>State</header><text>The
term <term>State</term> means—</text>
<subparagraph id="ID29ad9144af2248a7bb670c1972d5243b"><enum>(A)</enum><text>a State of the United
States;</text>
</subparagraph><subparagraph id="ID5bce7b07626c4c4f9bde2cba6460d8a1"><enum>(B)</enum><text>the District of Columbia,
the Commonwealth of Puerto Rico, the Commonwealth of Northern Mariana Islands,
Guam, American Samoa, and the United States Virgin Islands;</text>
</subparagraph><subparagraph id="IDdf3d23c76216454097c7c72fd1372fa8"><enum>(C)</enum><text>when designated by a
State of the United States, a political subdivision of that State that the
Secretary determines has the capacity to participate in the Program; and</text>
</subparagraph><subparagraph id="ID31fe46134e14408481ab2b794030aba4"><enum>(D)</enum><text>under the circumstances
described in section 3004(d), a municipality of a State of the United States to
which the Secretary has given a special permission under section
3004(d).</text>
</subparagraph></paragraph><paragraph id="ID24e30f8ba1a4440f9dcdf660415aaa7f"><enum>(11)</enum><header>State capital access
program</header><text>The term <term>State capital access program</term> means
a program of a State that—</text>
<subparagraph id="IDcde7587368634a7bae36554e50686468"><enum>(A)</enum><text>uses public resources to
promote private access to credit; and</text>
</subparagraph><subparagraph id="IDb140b7582b8143aeb2e674864922b07d"><enum>(B)</enum><text>meets the eligibility
criteria in section 3005(c).</text>
</subparagraph></paragraph><paragraph id="ID02c8156a8bf74be4adcdc4f29424b309"><enum>(12)</enum><header>State other credit
support program</header><text>The term <term>State other credit support
program</term>—</text>
<subparagraph id="IDa396c381a7864b95bfee143b97793872"><enum>(A)</enum><text>means a program of a
State that—</text>
<clause id="ID70d89488ea4646d888a0dd4be0c227c1"><enum>(i)</enum><text>uses public resources to
promote private access to credit;</text>
</clause><clause id="ID1c3fbfbb04aa4b4a91b752c8c2b83154"><enum>(ii)</enum><text>is not a State capital
access program; and</text>
</clause><clause id="IDd68b5177a58748d39b23ff628f78f963"><enum>(iii)</enum><text>meets the eligibility
criteria in section 3006(c); and</text>
</clause></subparagraph><subparagraph id="ID6ea005baed65473c84f2ed03a3831a7b"><enum>(B)</enum><text>includes, collateral
support programs, loan participation programs, State-run venture capital fund
programs, and credit guarantee programs.</text>
</subparagraph></paragraph><paragraph id="ID00e6cfa335534c5298364a15dba06f28"><enum>(13)</enum><header>State
program</header><text>The term <term>State program</term> means a State capital
access program or a State other credit support program.</text>
</paragraph><paragraph id="ID37319eb429334a87a3be3632f2ffc1b1"><enum>(14)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Treasury.</text>
</paragraph></section><section id="IDa290b8fbdc3f4d9ab0d5b8982f8df733"><enum>3003.</enum><header>Federal funds
allocated to States</header>
<subsection id="ID2fbd2fa52e8b4e8a899dc315beb69739"><enum>(a)</enum><header>Program established;
purpose</header><text>There is established the State Small Business Credit
Initiative, to be administered by the Secretary. Under the Program, the
Secretary shall allocate Federal funds to participating States and make the
allocated funds available to the participating States as provided in this
section for the uses described in this section.</text>
</subsection><subsection id="IDff256a87927545cc8fb71764f2244318"><enum>(b)</enum><header>Allocation
formula</header>
<paragraph id="ID65a59a4d7ef443ccb77d5254b7052ebe"><enum>(1)</enum><header>In
general</header><text>Not later than 30 days after the date of enactment of
this Act, the Secretary shall allocate Federal funds to participating States so
that each State is eligible to receive an amount equal to the average of the
respective amounts that the State—</text>
<subparagraph id="ID190d344a3e61499298b5847f5c475b8b"><enum>(A)</enum><text>would receive under the
2009 allocation, as determined under paragraph (2); and</text>
</subparagraph><subparagraph id="ID00f5c3cf94b84499a5b9d3cd23c0d106"><enum>(B)</enum><text>would receive under the
2010 allocation, as determined under paragraph (3).</text>
</subparagraph></paragraph><paragraph id="ID5092226075fe4bf8a1b931787b70a79e"><enum>(2)</enum><header>2009 allocation
formula</header>
<subparagraph id="IDbf9932cf116345bab5eee7f96ca36e21"><enum>(A)</enum><header>In
general</header><text>The Secretary shall determine the 2009 allocation by
allocating Federal funds among the States in the proportion that each such
State's 2008 State employment decline bears to the aggregate of the 2008 State
employment declines for all States.</text>
</subparagraph><subparagraph id="ID3c035aeef6b74c1988895ae7129291d1"><enum>(B)</enum><header>Minimum
allocation</header><text>The Secretary shall adjust the allocations under
subparagraph (A) for each State to the extent necessary to ensure that no State
receives less than 0.9 percent of the Federal funds.</text>
</subparagraph><subparagraph id="ID8ae01f322cec475d9a4b4094b7b6b64f"><enum>(C)</enum><header>2008 State employment
decline defined</header><text>In this paragraph and with respect to a State,
the term <term>2008 State employment decline</term> means the excess (if any)
of—</text>
<clause id="ID01d83046258d4ef2bb5e42b8c137fb09"><enum>(i)</enum><text>the number of individuals
employed in such State determined for December 2007; over</text>
</clause><clause id="ID827048a4d23946618a15455bca684e34"><enum>(ii)</enum><text>the number of
individuals employed in such State determined for December 2008.</text>
</clause></subparagraph></paragraph><paragraph id="IDf4c067388e844c448e365121efc3f040"><enum>(3)</enum><header>2010 allocation
formula</header>
<subparagraph id="ID2a1e6248bc0548d5b490fa21fa18ac11"><enum>(A)</enum><header>In
general</header><text>The Secretary shall determine the 2010 allocation by
allocating Federal funds among the States in the proportion that each such
State's 2009 unemployment number bears to the aggregate of the 2009
unemployment numbers for all of the States.</text>
</subparagraph><subparagraph id="ID821b1dd50df641baac5916e0aa723843"><enum>(B)</enum><header>Minimum
allocation</header><text>The Secretary shall adjust the allocations under
subparagraph (A) for each State to the extent necessary to ensure that no State
receives less than 0.9 percent of the Federal funds.</text>
</subparagraph><subparagraph id="ID08c80cd4a37e4237a2a3b60d57531c16"><enum>(C)</enum><header>2009 Unemployment
number defined</header><text>In this paragraph and with respect to a State, the
term <term>2009 unemployment number</term> means the number of individuals
within such State who were determined to be unemployed by the Bureau of Labor
Statistics for December 2009.</text>
</subparagraph></paragraph></subsection><subsection id="ID357616b3c67b437fbca78cb10732926a"><enum>(c)</enum><header>Availability of
allocated amount</header><text>The amount allocated by the Secretary to each
participating State under subsection (b) shall be made available to the State
as follows:</text>
<paragraph id="IDfa5b245b3b224fe7affc643a7414a63e"><enum>(1)</enum><header>Allocated amount
generally to be available to State in one-thirds</header>
<subparagraph id="ID66f2ca193ca84108876c4542316bcfc2"><enum>(A)</enum><header>In
general</header><text>The Secretary shall—</text>
<clause id="ID92f4d4c2c9a24129af3833e1778f7a47"><enum>(i)</enum><text>apportion the
participating State's allocated amount into thirds;</text>
</clause><clause id="IDe3c1d2e92a9243048e4af3d6be44af9f"><enum>(ii)</enum><text>transfer to the
participating State the first <fraction>1/3</fraction> when the Secretary
approves the State for participation under section 3004; and</text>
</clause><clause id="ID925dad4dea8a473d875dd6a87a24a969"><enum>(iii)</enum><text>transfer to the
participating State each successive <fraction>1/3</fraction> when the State has
certified to the Secretary that it has expended, transferred, or obligated 80
percent of the last transferred <fraction>1/3</fraction> for Federal
contributions to, or for the account of, State programs.</text>
</clause></subparagraph><subparagraph id="ID43f3ecdb5cda4d2e86b47beb3fef7ca6"><enum>(B)</enum><header>Authority to withhold
pending audit</header><text>The Secretary may withhold the transfer of any
successive <fraction>1/3</fraction> pending results of a financial
audit.</text>
</subparagraph><subparagraph id="ID349df1226e5f47929eaa1a9cc1e4b85d"><enum>(C)</enum><header>Inspector General
audits</header>
<clause id="IDcf8ba09dac0c4ec2b91e9203139c44f0"><enum>(i)</enum><header>In
general</header><text>The Inspector General of the Department of the Treasury
shall carry out an audit of the participating State's use of allocated Federal
funds transferred to the State.</text>
</clause><clause id="id90B8AEF494E54513908285E6DC9C949A"><enum>(ii)</enum><header>Recoupment of misused
transferred funds required</header><text>The allocation agreement between the
Secretary and the participating State shall provide that the Secretary shall
recoup any allocated Federal funds transferred to the participating State if
the results of the an audit include a finding that there was an intentional or
reckless misuse of transferred funds by the State.</text>
</clause><clause id="ID19d3c097923447e692057aa846511ddf"><enum>(iii)</enum><header>Penalty for
misstatement</header><text>Any participating State that is found to have
intentionally misstated any report issued to the Secretary under the Program
shall be ineligible to receive any additional funds under the Program. Funds
that had been allocated or that would otherwise have been allocated to such
participating State shall be paid into the general fund of the Treasury for
reduction of the public debt.</text>
</clause><clause id="ID63503eac6537447b9871a52700ef1070"><enum>(iv)</enum><header>Municipalities</header><text>In
this subparagraph, the term <term>participating State</term> shall include a
municipality given special permission to participate in the Program, under
section 3004(d).</text>
</clause></subparagraph><subparagraph id="IDee61be288a6b4ae2a389050eff4226f9"><enum>(D)</enum><header>Exception</header><text>The
Secretary may, in the Secretary's discretion, transfer the full amount of the
participating State's allocated amount to the State in a single transfer if the
participating State applies to the Secretary for approval to use the full
amount of the allocation as collateral for a qualifying loan or swap funding
facility.</text>
</subparagraph></paragraph><paragraph id="IDc35776c440f441289eab5954250018dd"><enum>(2)</enum><header>Transferred
amounts</header><text>Each amount transferred to a participating State under
this section shall remain available to the State until used by the State as
permitted under paragraph (3).</text>
</paragraph><paragraph id="ID90e70549686e4f26825409bd9be856e5"><enum>(3)</enum><header>Use of transferred
funds</header><text>Each participating State may use funds transferred to it
under this section only—</text>
<subparagraph id="IDbdb449dd54f548e9ba2f095e480abbfc"><enum>(A)</enum><text>for making Federal
contributions to, or for the account of, an approved State program;</text>
</subparagraph><subparagraph id="ID8f40757c2a914ef4b7e084294d17e047"><enum>(B)</enum><text>as collateral for a
qualifying loan or swap funding facility;</text>
</subparagraph><subparagraph id="IDe432cefd566f48a8870fd1013d22a683"><enum>(C)</enum><text>in the case of the first
<fraction>1/3</fraction> transferred, for paying administrative costs incurred
by the State in implementing an approved State program in an amount not to
exceed 5 percent of that first <fraction>1/3</fraction>; or</text>
</subparagraph><subparagraph id="ID8957e26262414dd1a62e1348a6881730"><enum>(D)</enum><text>in the case of each
successive <fraction>1/3</fraction> transferred, for paying administrative
costs incurred by the State in implementing an approved State program in an
amount not to exceed 3 percent of that successive
<fraction>1/3</fraction>.</text>
</subparagraph></paragraph><paragraph id="IDabc65af1b3cd48cf93b95f46800bcc97"><enum>(4)</enum><header>Termination of
availability of amounts not transferred within 2 years of
participation</header><text>Any portion of a participating State's allocated
amount that has not been transferred to the State under this section by the end
of the 2-year period beginning on the date that the Secretary approves the
State for participation may be deemed by the Secretary to be no longer
allocated to the State and no longer available to the State and shall be
returned to the General Fund of the Treasury.</text>
</paragraph><paragraph id="ID8ef5123f31834a9f8cd094e754f181a0"><enum>(5)</enum><header>Transferred amounts not
assistance</header><text>The amounts transferred to a participating State under
this section shall not be considered assistance for purposes of subtitle V of
title 31, United States Code.</text>
</paragraph><paragraph id="IDd423ff61ae344a7893d6fb06df9db80e"><enum>(6)</enum><header>Definitions</header><text>In
this section—</text>
<subparagraph id="IDb632b49590be4eb3a0a5aaa506b6e8d4"><enum>(A)</enum><text>the term <term>allocated
amount</term> means the total amount of Federal funds allocated by the
Secretary under subsection (b) to the participating State; and</text>
</subparagraph><subparagraph id="ID83d242c3851b4a0788db004cf7cd42ae"><enum>(B)</enum><text>the term
<term><fraction>1/3</fraction></term> means—</text>
<clause id="IDea11b334b5184ba686ab6ec6b68be51f"><enum>(i)</enum><text>in the case of the first
<fraction>1/3</fraction> and second <fraction>1/3</fraction>, an amount equal
to 33 percent of a participating State's allocated amount; and</text>
</clause><clause id="ID1de0ad626d3b46d48674dacbf9dd6602"><enum>(ii)</enum><text>in the case of the last
<fraction>1/3</fraction>, an amount equal to 34 percent of a participating
State's allocated amount.</text>
</clause></subparagraph></paragraph></subsection></section><section id="ID7e215ec3f960489d96c68be5ebfdf060"><enum>3004.</enum><header>Approving States for
participation</header>
<subsection id="ID3d9cfab8ad214264a70723d11a94cbd1"><enum>(a)</enum><header>Application</header><text>Any
State may apply to the Secretary for approval to be a participating State under
the Program and to be eligible for an allocation of Federal funds under the
Program.</text>
</subsection><subsection id="ID463cd448b07f421590cf787847d1f2a1"><enum>(b)</enum><header>General approval
criteria</header><text>The Secretary shall approve a State to be a
participating State, if—</text>
<paragraph id="IDe53252029d9d4a1c9d804228aaf4cf84"><enum>(1)</enum><text>a specific department,
agency, or political subdivision of the State has been designated to implement
a State program and participate in the Program;</text>
</paragraph><paragraph id="IDd20817cdc24c40a588c34088fd714d8a"><enum>(2)</enum><text>all legal actions
necessary to enable such designated department, agency, or political
subdivision to implement a State program and participate in the Program have
been accomplished;</text>
</paragraph><paragraph id="ID9ad03ea549f247acb142fc3058a8f168"><enum>(3)</enum><text>the State has filed an
application with the Secretary for approval of a State capital access program
under section 3005 or approval as a State other credit support program under
section 3006, in each case within the time period provided in the respective
section; and</text>
</paragraph><paragraph id="IDb92ada63b79843b280a112b93d15adb8"><enum>(4)</enum><text>the State and the
Secretary have executed an allocation agreement that—</text>
<subparagraph id="ID6ded79b5ded64464804bee3e8f9bf811"><enum>(A)</enum><text>conforms to the
requirements of this title;</text>
</subparagraph><subparagraph id="ID9cecafd985ca402996006ae56574db70"><enum>(B)</enum><text>ensures that the State
program complies with such national standards as are established by the
Secretary under section 3009(a)(2);</text>
</subparagraph><subparagraph id="ID735e0f3f811341d79c7832aa687d6323"><enum>(C)</enum><text>sets forth internal
control, compliance, and reporting requirements as established by the
Secretary, and such other terms and conditions necessary to carry out the
purposes of this title, including an agreement by the State to allow the
Secretary to audit State programs;</text>
</subparagraph><subparagraph id="IDaae9d24cff764e61b3101c778a890bca"><enum>(D)</enum><text>requires that the State
program be fully positioned, within 90 days of the State's execution of the
allocation agreement with the Secretary, to act on providing the kind of credit
support that the State program was established to provide; and</text>
</subparagraph><subparagraph id="IDce82f5805a804ceea732964fc8796b4e"><enum>(E)</enum><text>includes an agreement by
the State to deliver to the Secretary, and update annually, a schedule
describing how the State intends to apportion among its State programs the
Federal funds allocated to the State.</text>
</subparagraph></paragraph></subsection><subsection id="ID50862b35f8f74fa0947e4c8dd5746525"><enum>(c)</enum><header>Contractual
arrangements for implementation of State programs</header><text>A State may be
approved to be a participating State, and be eligible for an allocation of
Federal funds under the Program, if the State has contractual arrangements for
the implementation and administration of its State program with—</text>
<paragraph id="ID9238a9a9097a4aac9f0488cbaf40c66e"><enum>(1)</enum><text>an existing, approved
State program administered by another State; or</text>
</paragraph><paragraph id="IDd58efb4d437a40418a4520198970ec4a"><enum>(2)</enum><text>an authorized agent of,
or entity supervised by, the State, including for-profit and not-for-profit
entities.</text>
</paragraph></subsection><subsection id="ID770e53916b58496c828ac99059660850"><enum>(d)</enum><header>Special
permission</header>
<paragraph id="IDaa5127213a5444b0b7b78b26ce9387c6"><enum>(1)</enum><header>Circumstances when a
municipality may apply directly</header><text>If a State does not, within 60
days after the date of enactment of this Act, file with the Secretary a notice
of its intent to apply for approval by the Secretary of a State program or
within 9 months after the date of enactment of this Act, file with the
Secretary a complete application for approval of a State program, the Secretary
may grant to municipalities of that State a special permission that will allow
them to apply directly to the Secretary without the State for approval to be
participating municipalities.</text>
</paragraph><paragraph id="ID877bf1466a444f549f239cca3ba4c8de"><enum>(2)</enum><header>Timing requirements
applicable to municipalities applying directly</header><text>To qualify for the
special permission, a municipality of a State shall be required, within 12
months after the date of enactment of this Act, to file with the Secretary a
complete application for approval by the Secretary of a State program.</text>
</paragraph><paragraph id="IDd6b615ecd9f04d19896ad8d012d8fa94"><enum>(3)</enum><header>Notices of intent and
applications from more than 1 municipality</header><text>A municipality of a
State may combine with 1 or more other municipalities of that State to file a
joint notice of intent to file and a joint application.</text>
</paragraph><paragraph id="ID5ff80a26d47d43428280aeec04e417ca"><enum>(4)</enum><header>Approval
criteria</header><text>The general approval criteria in paragraphs (2) and (4)
shall apply.</text>
</paragraph><paragraph id="ID3ae052f6fcc14430b70e57216343bbe9"><enum>(5)</enum><header>Allocation to
municipalities</header>
<subparagraph id="ID0b34dcc70a914c48856c7f3c04a2173a"><enum>(A)</enum><header>If more than
3</header><text>If more than 3 municipalities, or combination of municipalities
as provided in paragraph (3), of a State apply for approval by the Secretary to
be participating municipalities under this subsection, and the applications
meet the approval criteria in paragraph (4), the Secretary shall allocate
Federal funds to the 3 municipalities with the largest populations.</text>
</subparagraph><subparagraph id="IDf8a9f7c14f9a4c85a56ffaa7c293f50d"><enum>(B)</enum><header>If 3 or
fewer</header><text>If 3 or fewer municipalities, or combination of
municipalities as provided in paragraph (3), of a State apply for approval by
the Secretary to be participating municipalities under this subsection, and the
applications meet the approval criteria in paragraph (4), the Secretary shall
allocate Federal funds to each applicant municipality or combination of
municipalities.</text>
</subparagraph></paragraph><paragraph id="ID4819834ba0c44e839010030b0e1c8e2e"><enum>(6)</enum><header>Apportionment of
allocated amount among participating municipalities</header><text>If the
Secretary approves municipalities to be participating municipalities under this
subsection, the Secretary shall apportion the full amount of the Federal funds
that are allocated to that State to municipalities that are approved under this
subsection in amounts proportionate to the population of those municipalities,
based on the most recent available decennial census.</text>
</paragraph><paragraph id="ID69ab184994d144c4abd703e4eee21ded"><enum>(7)</enum><header>Approving State
programs for municipalities</header><text>If the Secretary approves
municipalities to be participating municipalities under this subsection, the
Secretary shall take into account the additional considerations in section
3006(d) in making the determination under section 3005 or 3006 that the State
program or programs to be implemented by the participating municipalities,
including a State capital access program, is eligible for Federal contributions
to, or for the account of, the State program.</text>
</paragraph></subsection></section><section id="ID7378edbe2b85408b8af7be4d361e45cd"><enum>3005.</enum><header>Approving State
capital access programs</header>
<subsection id="ID4861a511785b4094b9e6b40f813e139d"><enum>(a)</enum><header>Application</header><text>A
participating State that establishes a new, or has an existing, State capital
access program that meets the eligibility criteria in subsection (c) may apply
to Secretary to have the State capital access program approved as eligible for
Federal contributions to the reserve fund.</text>
</subsection><subsection id="ID68533877836a4093a6521d762081e966"><enum>(b)</enum><header>Approval</header><text>The
Secretary shall approve such State capital access program as eligible for
Federal contributions to the reserve fund if—</text>
<paragraph id="ID175e10e2589b4fcf890cf9832c7b1c35"><enum>(1)</enum><text>within 60 days after the
date of enactment of this Act, the State has filed with the Secretary a notice
of intent to apply for approval by the Secretary of a State capital access
program;</text>
</paragraph><paragraph id="ID3f387648a08f4aa59315f7e2e3a1d712"><enum>(2)</enum><text>within 9 months after the
date of enactment of this Act, the State has filed with the Secretary a
complete application for approval by the Secretary of a capital access
program;</text>
</paragraph><paragraph id="ID0e2c020932a844ad9e75e62f07d64b09"><enum>(3)</enum><text>the State satisfies the
requirements of subsections (a) and (b) of section 3004; and</text>
</paragraph><paragraph id="IDf9894637816a40938211163b4a5675d1"><enum>(4)</enum><text>the State capital access
program meets the eligibility criteria in subsection (c).</text>
</paragraph></subsection><subsection id="ID69d01da0789d49359a999354ddd64ebf"><enum>(c)</enum><header>Eligibility criteria
for State capital access programs</header><text>For a State capital access
program to be approved under this section, that program shall be required to be
a program of the State that—</text>
<paragraph id="ID8a9ea0bef0b4409e93ff11fe99e1f8ca"><enum>(1)</enum><text>provides portfolio
insurance for business loans based on a separate loan-loss reserve fund for
each financial institution;</text>
</paragraph><paragraph id="IDf938237749a840898219904f8e2ab344"><enum>(2)</enum><text>requires insurance
premiums to be paid by the financial institution lenders and by the business
borrowers to the reserve fund to have their loans enrolled in the reserve
fund;</text>
</paragraph><paragraph id="IDc1e2a6d3375e4b00a4f46178699bf8ea"><enum>(3)</enum><text>provides for
contributions to be made by the State to the reserve fund in amounts at least
equal to the sum of the amount of the insurance premium charges paid by the
borrower and the financial institution to the reserve fund for any newly
enrolled loan; and</text>
</paragraph><paragraph id="ID226dcd326e77431f806c3e42629f8399"><enum>(4)</enum><text>provides its portfolio
insurance solely for loans that meet both the following requirements:</text>
<subparagraph id="ID7b26fecb463b401686901cc4331b7c0b"><enum>(A)</enum><text>The borrower has 500
employees or less at the time that the loan is enrolled in the Program.</text>
</subparagraph><subparagraph id="ID9f58b06a933d42998754a6a9e3ad8a32"><enum>(B)</enum><text>The loan amount does not
exceed $5,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="ID0c76c44d6b5b446a9078299b8e2ce394"><enum>(d)</enum><header>Federal contributions
to approved State capital access programs</header><text>A State capital access
program approved under this section will be eligible for receiving Federal
contributions to the reserve fund in an amount equal to the sum of the amount
of the insurance premium charges paid by the borrowers and by the financial
institution to the reserve fund for loans that meet the requirements in
subsection (c)(4). A participating State may use the Federal contribution to
make its contribution to the reserve fund of an approved State capital access
program.</text>
</subsection><subsection id="ID831713b8074c4aa884d335658da9912e"><enum>(e)</enum><header>Minimum program
requirements for State capital access programs</header><text>The Secretary
shall, by regulation or other guidance, prescribe Program requirements that
meet the following minimum requirements:</text>
<paragraph id="IDed0b0b66e00d43e297d168cd8c6e6edd"><enum>(1)</enum><header>Experience and
capacity</header><text>The participating State shall determine for each
financial institution that participates in the State capital access program,
after consultation with the appropriate Federal banking agency or, in the case
of a financial institution that is a nondepository community development
financial institution, the Community Development Financial Institution Fund,
that the financial institution has sufficient commercial lending experience and
financial and managerial capacity to participate in the approved State capital
access program. The determination by the State shall not be reviewable by the
Secretary.</text>
</paragraph><paragraph id="ID1feb50889c564330bd10eb7189bd1850"><enum>(2)</enum><header>Investment
authority</header><text>Subject to applicable State law, the participating
State may invest, or cause to be invested, funds held in a reserve fund by
establishing a deposit account at the financial institution lender in the name
of the participating State. In the event that funds in the reserve fund are not
deposited in such an account, such funds shall be invested in a form that the
participating State determines is safe and liquid.</text>
</paragraph><paragraph id="ID55c6a7b07cf04312859ff6aacd09abc1"><enum>(3)</enum><header>Loan terms and
conditions to be determined by agreement</header><text>A loan to be filed for
enrollment in an approved State capital access program may be made with such
interest rate, fees, and other terms and conditions, and the loan may be
enrolled in the approved State capital access program and claims may be filed
and paid, as agreed upon by the financial institution lender and the borrower,
consistent with applicable law.</text>
</paragraph><paragraph id="ID13cfac0858904414b85e5e3960e10061"><enum>(4)</enum><header>Lender capital
at-risk</header><text>A loan to be filed for enrollment in the State capital
access program shall require the financial institution lender to have a
meaningful amount of its own capital resources at risk in the loan.</text>
</paragraph><paragraph id="ID2ef6bbbe3c104d7fbdd1ae02bdfbcbf3"><enum>(5)</enum><header>Premium charges minimum
and maximum amounts</header><text>The insurance premium charges payable to the
reserve fund by the borrower and the financial institution lender shall be
prescribed by the financial institution lender, within minimum and maximum
limits that require that the sum of the insurance premium charges paid in
connection with a loan by the borrower and the financial institution lender may
not be less than 2 percent nor more than 7 percent of the amount of the loan
enrolled in the approved State capital access program.</text>
</paragraph><paragraph id="ID1b5c7bae0ca94cda983aa6842830653b"><enum>(6)</enum><header>State
contributions</header><text>In enrolling a loan in an approved State capital
access program, the participating State may make a contribution to the reserve
fund to supplement Federal contributions made under this Program.</text>
</paragraph><paragraph id="IDc3b52474735c4cffae3475b9ef0ab7c4"><enum>(7)</enum><header>Loan purpose</header>
<subparagraph id="ID994f96bec96343ec98fb17c9188e899a"><enum>(A)</enum><header>Particular loan purpose
requirements and prohibitions</header><text>In connection with the filing of a
loan for enrollment in an approved State capital access program, the financial
institution lender—</text>
<clause id="ID08b8a0f90009451f9f9b04bbc647f3b3"><enum>(i)</enum><text>shall obtain an assurance
from each borrower that—</text>
<subclause id="ID61ed39736363490ea46455e1eec72b27"><enum>(I)</enum><text>the proceeds of the loan
will be used for a business purpose;</text>
</subclause><subclause id="ID82721ea2e9754accb1a3bb86c6381831"><enum>(II)</enum><text>the loan will not be
used to finance such business activities as the Secretary, by regulation, may
proscribe as prohibited loan purposes for enrollment in an approved State
capital access program; and</text>
</subclause><subclause id="ID1756482984834229925d112eb2b9e7e0"><enum>(III)</enum><text>the borrower is
not—</text>
<item id="ID967fb36b3a6744918831162eef01d99d"><enum>(aa)</enum><text>an executive officer,
director, or principal shareholder of the financial institution lender;</text>
</item><item id="ID5d7b39a151ef4827bc36ab323c8ad447"><enum>(bb)</enum><text>a member of the
immediate family of an executive officer, director, or principal shareholder of
the financial institution lender; or</text>
</item><item id="ID6707a791dfcd4b45b7e266795491731b"><enum>(cc)</enum><text>a related interest of
any such executive officer, director, principal shareholder, or member of the
immediate family;</text>
</item></subclause></clause><clause id="IDcea3486669744d769646dec9bfd43bb9"><enum>(ii)</enum><text>shall provide assurances
to the participating State that the loan has not been made in order to place
under the protection of the approved State capital access program prior debt
that is not covered under the approved State capital access program and that is
or was owed by the borrower to the financial institution lender or to an
affiliate of the financial institution lender;</text>
</clause><clause id="IDb0a9296411b44c6b8d776d3f04b8f761"><enum>(iii)</enum><text>shall not allow the
enrollment of a loan to a borrower that is a refinancing of a loan previously
made to that borrower by the financial institution lender or an affiliate of
the financial institution lender; and</text>
</clause><clause id="ID1ae03af44d944a739b2e3a6818abd5c0"><enum>(iv)</enum><text>may include additional
restrictions on the eligibility of loans or borrowers that are not inconsistent
with the provisions and purposes of this title, including compliance with all
applicable Federal and State laws, regulations, ordinances, and Executive
orders.</text>
</clause></subparagraph><subparagraph id="IDf9c1587755714fb2acfa42a0a6cb0bdc"><enum>(B)</enum><header>Definitions</header><text>In
this paragraph, the terms <term>executive officer</term>,
<term>director</term>, <term>principal shareholder</term>, <term>immediate
family</term>, and <term>related interest</term> refer to the same relationship
to a financial institution lender as the relationship described in part 215 of
title 12 of the Code of Federal Regulations, or any successor to such
part.</text>
</subparagraph></paragraph><paragraph id="ID6b564a678fbe4aa3a4f4258791394f4d"><enum>(8)</enum><header>Capital access for
small businesses in underserved communities</header><text>At the time that a
State applies to the Secretary to have the State capital access program
approved as eligible for Federal contributions, the State shall deliver to the
Secretary a report stating how the State plans to use the Federal contributions
to the reserve fund to provide access to capital for small businesses in low-
and moderate-income, minority, and other underserved communities, including
women- and minority-owned small businesses.</text>
</paragraph></subsection></section><section id="ID73a6e4bcc5b1460b8921ef08ed519d6b"><enum>3006.</enum><header>Approving collateral
support and other innovative credit access and guarantee initiatives for small
businesses and manufacturers</header>
<subsection id="ID7f6b10dd55c149e3b73de093d005eadb"><enum>(a)</enum><header>Application</header><text>A
participating State that establishes a new, or has an existing, credit support
program that meets the eligibility criteria in subsection (c) may apply to the
Secretary to have the State other credit support program approved as eligible
for Federal contributions to, or for the account of, the State program.</text>
</subsection><subsection id="ID9ab3225dc9384eca9ba4b7cdcbdd0007"><enum>(b)</enum><header>Approval</header><text>The
Secretary shall approve such State other credit support program as eligible for
Federal contributions to, or for the account of, the program if—</text>
<paragraph id="ID0138c2fd45674c56827db8693eeb0784"><enum>(1)</enum><text>the Secretary determines
that the State satisfies the requirements of paragraphs (1) through (3) of
section 3005(b);</text>
</paragraph><paragraph id="IDab873700a1f44827b030e3870b5e2caa"><enum>(2)</enum><text>the Secretary determines
that the State other credit support program meets the eligibility criteria in
subsection (c);</text>
</paragraph><paragraph id="IDd1a0b63d39154f098b3472169e7da9f4"><enum>(3)</enum><text>the Secretary determines
the State other credit support program to be eligible based on the additional
considerations in subsection (d); and</text>
</paragraph><paragraph id="ID385b18f8ddbd41c6b946b2ca9d7a3ba6"><enum>(4)</enum><text>within 9 months after the
date of enactment of this Act, the State has filed with Treasury a complete
application for Treasury approval.</text>
</paragraph></subsection><subsection id="IDd2502cb08de74b4f878764c3a2867cd2"><enum>(c)</enum><header>Eligibility criteria
for State other credit support programs</header><text>For a State other credit
support program to be approved under this section, that program shall be
required to be a program of the State that—</text>
<paragraph id="IDccd2f30a49b24ec78ba102cb751a4465"><enum>(1)</enum><text>can demonstrate that, at
a minimum, $1 of public investment by the State program will cause and result
in $1 of new private credit;</text>
</paragraph><paragraph id="ID08b632e74b2d43e293a51fade151774c"><enum>(2)</enum><text>can demonstrate a
reasonable expectation that, when considered with all other State programs of
the State, such State programs together have the ability to use amounts of new
Federal contributions to, or for the account of, all such programs in the State
to cause and result in amounts of new small business lending at least 10 times
the new Federal contribution amount;</text>
</paragraph><paragraph id="ID2033106e547e4cf2b691560df6534c20"><enum>(3)</enum><text>for those State other
credit support programs that provide their credit support through 1 or more
financial institution lenders, requires the financial institution lenders to
have a meaningful amount of their own capital resources at risk in their small
business lending; and</text>
</paragraph><paragraph id="ID8abb95b27cbe427885e0703fb8838c1c"><enum>(4)</enum><text>uses Federal funds
allocated under this title to extend credit support that—</text>
<subparagraph id="IDfc3d26f8ecfa411b99f6ba6471f6100a"><enum>(A)</enum><text>targets an average
borrower size of 500 employees or less;</text>
</subparagraph><subparagraph id="ID979e364e4f1548d48527559c53abceee"><enum>(B)</enum><text>does not extend credit
support to borrowers that have more than 750 employees;</text>
</subparagraph><subparagraph id="ID308358af40694015b8ec1557b3b77d89"><enum>(C)</enum><text>targets support towards
loans with an average principal amount of $5,000,000 or less; and</text>
</subparagraph><subparagraph id="ID064bb72ae2824a22b51b0bafad59b209"><enum>(D)</enum><text>does not extend credit
support to loans that exceed a principal amount of $20,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="ID212c7354700f49bab570517bf2cc6359"><enum>(d)</enum><header>Additional
considerations</header><text>In making a determination that a State other
credit support program is eligible for Federal contributions to, or for the
account of, the State program, the Secretary shall take into account the
following additional considerations:</text>
<paragraph id="ID94595e43a9b042c683b8ff7c7d60d077"><enum>(1)</enum><text>The anticipated benefits
to the State, its businesses, and its residents to be derived from the Federal
contributions to, or for the account of, the approved State other credit
support program, including the extent to which resulting small business lending
will expand economic opportunities.</text>
</paragraph><paragraph id="ID72ffe308bd7b4b2188e6ff2f10f02df9"><enum>(2)</enum><text>The operational capacity,
skills, and experience of the management team of the State other credit support
program.</text>
</paragraph><paragraph id="ID178f2fa2a707486288600adf37d85fd2"><enum>(3)</enum><text>The capacity of the State
other credit support program to manage increases in the volume of its small
business lending.</text>
</paragraph><paragraph id="ID7b0f1c4895064f51806c30f8caba79e8"><enum>(4)</enum><text>The internal accounting
and administrative controls systems of the State other credit support program,
and the extent to which they can provide reasonable assurance that funds of the
State program are safeguarded against waste, loss, unauthorized use, or
misappropriation.</text>
</paragraph><paragraph id="IDac92c08da0884022887a2629be9aa7ac"><enum>(5)</enum><text>The soundness of the
program design and implementation plan of the State other credit support
program.</text>
</paragraph></subsection><subsection id="IDf704430a296a43d1a168b37db15e1ff2"><enum>(e)</enum><header>Federal contributions
to approved State other credit support programs</header><text>A State other
credit support program approved under this section will be eligible for
receiving Federal contributions to, or for the account of, the State program in
an amount consistent with the schedule describing the apportionment of
allocated Federal funds among State programs delivered by the State to the
Secretary under the allocation agreement.</text>
</subsection><subsection id="IDf66195a288164235b241ac90a3c9d3f9"><enum>(f)</enum><header>Minimum program
requirements for State other credit support programs</header>
<paragraph id="IDd74a61018b5e467d88c030a72698f927"><enum>(1)</enum><header>Fund to
prescribe</header><text>The Secretary shall, by regulation or other guidance,
prescribe Program requirements for approved State other credit support
programs.</text>
</paragraph><paragraph id="ID1235dda44efc4be28165cc82e6ffff56"><enum>(2)</enum><header>Considerations for
fund</header><text>In prescribing minimum Program requirements for approved
State other credit support programs, the Secretary shall take into
consideration, to the extent the Secretary determines applicable and
appropriate, the minimum Program requirements for approved State capital access
programs in section 3005(e).</text>
</paragraph></subsection></section><section id="ID0750bac73c9b4670ab7ce287627f3524"><enum>3007.</enum><header>Reports</header>
<subsection id="IDd2918c46c8b349b382646ed83d2d4176"><enum>(a)</enum><header>Quarterly use-of-funds
report</header>
<paragraph id="ID5bd2be3b8829461fa6f676756e16cde9"><enum>(1)</enum><header>In
general</header><text>Not later than 30 days after the beginning of each
calendar quarter, beginning after the first full calendar quarter to occur
after the date the Secretary approves a State for participation, the
participating State shall submit to the Secretary a report on the use of
Federal funding by the participating State during the previous calendar
quarter.</text>
</paragraph><paragraph id="IDa627b39e784246219cf678af495fd115"><enum>(2)</enum><header>Report
contents</header><text>Each report under this subsection shall—</text>
<subparagraph id="ID68ac101fef264d40827cc7f13e3469bb"><enum>(A)</enum><text>indicate the total amount
of Federal funding used by the participating State; and</text>
</subparagraph><subparagraph id="ID4af51d79a99349f68a4ca5dab5274c10"><enum>(B)</enum><text>include a certification
by the participating State that—</text>
<clause id="ID46396b7347fe49b6866055be0c7dc23d"><enum>(i)</enum><text>the information provided
in accordance with subparagraph (A) is accurate;</text>
</clause><clause id="ID4ed53c5eace241ce9da082784f9e1588"><enum>(ii)</enum><text>funds continue to be
available and legally committed to contributions by the State to, or for the
account of, approved State programs, less any amount that has been contributed
by the State to, or for the account of, approved State programs subsequent to
the State being approved for participation in the Program; and</text>
</clause><clause id="ID41d6dbeb7e5242fe8bcc773590249146"><enum>(iii)</enum><text>the participating State
is implementing its approved State program or programs in accordance with this
title and regulations issued under section 3010.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID07bcf6c89c1848dc9beac361bbb5b44e"><enum>(b)</enum><header>Annual
report</header><text>Not later than March 31 of each year, beginning March 31,
2011, each participating State shall submit to the Secretary an annual report
that shall include the following information:</text>
<paragraph id="ID60f9b4bbe65a44be9bf070c3c0eb1694"><enum>(1)</enum><text>The number of borrowers
that received new loans originated under the approved State program or programs
after the State program was approved as eligible for Federal
contributions.</text>
</paragraph><paragraph id="ID83e2bdac661541eeaf766bfb42db9032"><enum>(2)</enum><text>The total amount of such
new loans.</text>
</paragraph><paragraph id="IDba14b3fa5d724d868a9c4141195b31b4"><enum>(3)</enum><text>Breakdowns by industry
type, loan size, annual sales, and number of employees of the borrowers that
received such new loans.</text>
</paragraph><paragraph id="ID39469ffc839a45caa5e6303a524374b0"><enum>(4)</enum><text>The zip code of each
borrower that received such a new loan.</text>
</paragraph><paragraph id="ID22e63d2d32fa45639481114e249ea913"><enum>(5)</enum><text>Such other data as the
Secretary, in the Secretary's sole discretion, may require to carry out the
purposes of the Program.</text>
</paragraph></subsection><subsection id="ID977b507bf84c4e87929400ecb8dd53a6"><enum>(c)</enum><header>Form</header><text>The
reports and data filed under subsections (a) and (b) shall be in such form as
the Secretary, in the Secretary's sole discretion, may require.</text>
</subsection><subsection id="IDf68f8193f2294670a75d949c690f1e9d"><enum>(d)</enum><header>Termination of
reporting requirements</header><text>The requirement to submit reports under
subsections (a) and (b) shall terminate for a participating State with the
submission of the completed reports due on the first March 31 to occur after 5
complete 12-month periods after the State is approved by the Secretary to be a
participating State.</text>
</subsection></section><section id="ID77e44f5c95e64f27812afe8a8d81c501"><enum>3008.</enum><header>Remedies for State
program termination or failures</header>
<subsection id="ID6d9214e6d1264587823af8885abe59f9"><enum>(a)</enum><header>Remedies</header>
<paragraph id="ID12d8cbcd09dd47149eea73ee8ee37e21"><enum>(1)</enum><header>In
general</header><text>If any of the events listed in paragraph (2) occur, the
Secretary, in the Secretary's discretion, may—</text>
<subparagraph id="ID8990727fff9446a89d23242f0c93866d"><enum>(A)</enum><text>reduce the amount of
Federal funds allocated to the State under the Program; or</text>
</subparagraph><subparagraph id="IDb95271235692406b96ca4bdfd2b00470"><enum>(B)</enum><text>terminate any further
transfers of allocated amounts that have not yet been transferred to the
State.</text>
</subparagraph></paragraph><paragraph id="ID266efe8ad9124b7f8e3756ad917b1c7e"><enum>(2)</enum><header>Causal
events</header><text>The events referred to in paragraph (1) are—</text>
<subparagraph id="IDdccfaf1a1c164ac4840fc0fa6221890f"><enum>(A)</enum><text>termination by a
participating State of its participation in the Program;</text>
</subparagraph><subparagraph id="IDd971309504e749b0bdf297b19a7ce3e8"><enum>(B)</enum><text>failure on the part of a
participating State to submit complete reports under section 3007 on a timely
basis; or</text>
</subparagraph><subparagraph id="IDd06c0071d8a9440086e253db586ebbcd"><enum>(C)</enum><text>noncompliance by the
State with the terms of the allocation agreement between the Secretary and the
State.</text>
</subparagraph></paragraph></subsection><subsection id="IDa7069d48116f400f8f9d78cc074d09d2"><enum>(b)</enum><header>Deallocated amounts To
Be reallocated</header><text>If, after 13 months, any portion of the amount of
Federal funds allocated to a participating State is deemed by the Secretary to
be no longer allocated to the State after actions taken by the Secretary under
subsection (a)(1), the Secretary shall reallocate that portion among the
participating States, excluding the State whose allocated funds were deemed to
be no longer allocated, as provided in section 3003(b).</text>
</subsection></section><section id="ID366c7b8dff634f50900a70843a76d18d"><enum>3009.</enum><header>Implementation and
administration</header>
<subsection id="ID969f9262446e4dc08859666a67368640"><enum>(a)</enum><header>General authorities and
duties</header><text>The Secretary shall—</text>
<paragraph id="IDa00d4644b13d4e9eafdbd3086ee8a036"><enum>(1)</enum><text>consult with the
Administrator of the Small Business Administration and the appropriate Federal
banking agencies on the administration of the Program;</text>
</paragraph><paragraph id="ID3a5ad714fa3c4e9b8503a5a30485992e"><enum>(2)</enum><text>establish minimum
national standards for approved State programs;</text>
</paragraph><paragraph id="IDf5b3c64546df44f1abca4275dece86f2"><enum>(3)</enum><text>provide technical
assistance to States for starting State programs and generally disseminate best
practices;</text>
</paragraph><paragraph id="IDa3efaf302f4348bd9ca74e24fe2f6861"><enum>(4)</enum><text>manage, administer, and
perform necessary program integrity functions for the Program; and</text>
</paragraph><paragraph id="IDaeb5838905f74b21927734a47cfa2bda"><enum>(5)</enum><text>ensure adequate oversight
of the approved State programs, including oversight of the cash flows,
performance, and compliance of each approved State program.</text>
</paragraph></subsection><subsection id="ID97f80f7ec0644eeaa19712ca8817cd4a"><enum>(b)</enum><header>Appropriations</header><text>There
is hereby appropriated to the Secretary, out of funds in the Treasury not
otherwise appropriated, $1,500,000,000 to carry out the Program, including to
pay reasonable costs of administering the Program.</text>
</subsection><subsection id="IDa7fc1b3fc4c74d0f86798e75b3d301e1"><enum>(c)</enum><header>Termination of
Secretary's program administration functions</header><text>The authorities and
duties of the Secretary to implement and administer the Program shall terminate
at the end of the 7-year period beginning on the date of enactment of this
Act.</text>
</subsection><subsection id="IDdcea584771ba4dfcb04e3b35ccf82614"><enum>(d)</enum><header>Expedited
contracting</header><text>During the 1-year period beginning on the date of
enactment of this Act, the Secretary may enter into contracts without regard to
any other provision of law regarding public contracts, for purposes of carrying
out this title.</text>
</subsection></section><section id="ID2ea06ab4eff44b43b4f2915e3294bb6d"><enum>3010.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary, in consultation with the
Administrator of the Small Business Administration, shall issue such
regulations and other guidance as the Secretary determines necessary or
appropriate to implement this title including to define terms, to establish
compliance and reporting requirements, and such other terms and conditions
necessary to carry out the purposes of this title.</text>
</section><section id="ID5f59294da2d14cc18e98ddf58f2f7810"><enum>3011.</enum><header>Oversight and
audits</header>
<subsection id="IDaf94c15ef609455bb050e95e8cc58135"><enum>(a)</enum><header>Inspector General
oversight</header><text>The Inspector General of the Department of the Treasury
shall conduct, supervise, and coordinate audits and investigations of the use
of funds made available under the Program.</text>
</subsection><subsection id="IDdfc5d9fd53dd40e1a34286f83a6a981d"><enum>(b)</enum><header>GAO
audit</header><text>The Comptroller General of the United States shall perform
an annual audit of the Program and issue a report to the appropriate committees
of Congress containing the results of such audit.</text>
</subsection><subsection id="IDcb6779067c9a4b08ac5a3335ee1c9c3a"><enum>(c)</enum><header>Required
certification</header>
<paragraph id="ID995c4b53f118499db3d58da0893f65b1"><enum>(1)</enum><header>Financial institutions
certification</header><text>With respect to funds received by a participating
State under the Program, any financial institution that receives a loan, a loan
guarantee, or other financial assistance using such funds after the date of the
enactment of this Act shall certify that such institution is in compliance with
the requirements of section 103.121 of title 31, Code of Federal Regulations, a
regulation that, at a minimum, requires financial institutions, as that term is
defined in section 5312 (a)(2) and (c)(1)(A) of title 31, United States Code,
to implement reasonable procedures to verify the identity of any person seeking
to open an account, to the extent reasonable and practicable, maintain records
of the information used to verify the person's identity, and determine whether
the person appears on any lists of known or suspected terrorists or terrorist
organizations provided to the financial institution by any government
agency.</text>
</paragraph><paragraph id="ID677cb9da5b7947079b2b42a13fc20565"><enum>(2)</enum><header>Sex offense
certification</header><text>With respect to funds received by a participating
State under the Program, any private entity that receives a loan, a loan
guarantee, or other financial assistance using such funds after the date of the
enactment of this Act shall certify to the participating State that the
principals of such entity have not been convicted of a sex offense against a
minor (as such terms are defined in section 111 of the Sex Offender
Registration and Notification Act (42 U.S.C. 16911)).</text>
</paragraph></subsection><subsection id="ID0344f65c2e394f399849eb68798db421"><enum>(d)</enum><header>Prohibition on
pornography</header><text>None of the funds made available under this title may
be used to pay the salary of any individual engaged in activities related to
the Program who has been officially disciplined for violations of subpart G of
the Standards of Ethical Conduct for Employees of the Executive Branch for
viewing, downloading, or exchanging pornography, including child pornography,
on a Federal Government computer or while performing official Federal
Government duties.</text>
</subsection></section><enum>IV</enum><header>Additional small
business provisions</header>
<subtitle id="idA0B115591F9A43EA82ED05F365BD3D17"><enum>A</enum><header>Small Business Lending
Fund</header>
<section id="ID035feb876db544c4a54e045a31bbdc19"><enum>4101.</enum><header>Purpose</header><text display-inline="no-display-inline">The purpose of this subtitle is to address
the ongoing effects of the financial crisis on small businesses by providing
temporary authority to the Secretary of the Treasury to make capital
investments in eligible institutions in order to increase the availability of
credit for small businesses.</text>
</section><section id="ID285b8c22ef694457a2f9ebe922c7bf21"><enum>4102.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle:</text>
<paragraph id="ID1ed3f8b2fa9d413db68992d572ec52a8"><enum>(1)</enum><header>Appropriate committees
of Congress</header><text>The term <term>appropriate committees of
Congress</term> means—</text>
<subparagraph id="IDee0081a9cfce43bf8e5797ea634c8435"><enum>(A)</enum><text>the Committee on Small
Business and Entrepreneurship, the Committee on Agriculture, Nutrition, and
Forestry, the Committee on Banking, Housing, and Urban Affairs, the Committee
on Finance, the Committee on the Budget, and the Committee on Appropriations of
the Senate; and</text>
</subparagraph><subparagraph id="ID702b26dd7ac44759b903b515d6216788"><enum>(B)</enum><text>the Committee on Small
Business, the Committee on Agriculture, the Committee on Financial Services,
the Committee on Ways and Means, the Committee on the Budget, and the Committee
on Appropriations of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="IDdb06988b85f542dbb5a9a122770dd0e1"><enum>(2)</enum><header>Appropriate Federal
banking agency</header><text>The term <term>appropriate Federal banking
agency</term> has the meaning given such term under section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q)).</text>
</paragraph><paragraph id="IDd3cf34fb343e418eadec11df40c359c8"><enum>(3)</enum><header>Bank holding
company</header><text>The term <term>bank holding company</term> has the
meaning given such term under section 2(a)(1) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841(2)(a)(1)).</text>
</paragraph><paragraph id="IDf97749cc469f416d8f9cabeed219446c"><enum>(4)</enum><header>Call
report</header><text>The term <term>call report</term> means—</text>
<subparagraph id="ID2e75502b315644128bf3d429d28747c1"><enum>(A)</enum><text>reports of Condition and
Income submitted to the Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit Insurance
Corporation;</text>
</subparagraph><subparagraph id="ID2e3a20af992443d7ae92af7e7228c0b7"><enum>(B)</enum><text>the Office of Thrift
Supervision Thrift Financial Report;</text>
</subparagraph><subparagraph id="ID33c5a9fa66f0489d82a73f290c79e7be"><enum>(C)</enum><text>any report that is
designated by the Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, or the Office of Thrift Supervision, as applicable, as a successor
to any report referred to in subparagraph (A) or (B);</text>
</subparagraph><subparagraph id="ID517e74ad8a1442a9b0c1af806c59db1f"><enum>(D)</enum><text>reports of Condition and
Income as designated through guidance developed by the Secretary, in
consultation with the Director of the Community Development Financial
Institutions Fund; and</text>
</subparagraph><subparagraph id="id68E5A848BD5443A8B437B1471C01F428"><enum>(E)</enum><text>with respect to an
eligible institution for which no report exists that is described under
subparagraph (A), (B), (C), or (D), such other report or set of information as
the Secretary, in consultation with the Administrator of the Small Business
Administration, may prescribe.</text>
</subparagraph></paragraph><paragraph id="IDbf56ebb0cf1940f58daba0bc9c00072c"><enum>(5)</enum><header>CDCI</header><text>The
term <term>CDCI</term> means the Community Development Capital Initiative
created by the Secretary under the Troubled Asset Relief Program established by
the Emergency Economic Stabilization Act of 2008.</text>
</paragraph><paragraph id="ID9357d36796f4447c8c0a32e5a8726151"><enum>(6)</enum><header>CDCI
investment</header><text>The term <term>CDCI investment</term> means, with
respect to any eligible institution, the principal amount of any investment
made by the Secretary in such eligible institution under the CDCI that has not
been repaid.</text>
</paragraph><paragraph id="ID49081cc67a9944c4b94e7912d1927008"><enum>(7)</enum><header>CDFI; community
development financial institution</header><text>The terms <term>CDFI</term> and
<term>community development financial institution</term> have the meaning given
the term <term>community development financial institution</term> under the
Riegle Community Development and Regulatory Improvement Act of 1994.</text>
</paragraph><paragraph id="ID67de5021533f44f881ddaa078861279f"><enum>(8)</enum><header>CDLF; community
development loan fund</header><text>The terms <term>CDLF</term> and
<term>community development loan fund</term> mean any entity that—</text>
<subparagraph id="ID20cc90acb5db4b2693bf865fe5f27a4e"><enum>(A)</enum><text>is certified by the
Department of the Treasury as a community development financial institution
loan fund;</text>
</subparagraph><subparagraph id="ID02f375c2043e4990ad568c91aa87ec7b"><enum>(B)</enum><text>is exempt from taxation
under the Internal Revenue Code of 1986; and</text>
</subparagraph><subparagraph id="IDf0bdf25036d34a2cae2de522e146b8b8"><enum>(C)</enum><text>had assets less than or
equal to $10,000,000,000 as of the end of the fourth quarter of calendar year
2009.</text>
</subparagraph></paragraph><paragraph id="ID26a31650402847afa7deab5491f71ee7"><enum>(9)</enum><header>CPP</header><text>The
term <term>CPP</term> means the Capital Purchase Program created by the
Secretary under the Troubled Asset Relief Program established by the Emergency
Economic Stabilization Act of 2008.</text>
</paragraph><paragraph id="IDec9b67527261411a943138aa3e5634c1"><enum>(10)</enum><header>CPP
investment</header><text>The term <term>CPP investment</term> means, with
respect to any eligible institution, the principal amount of any investment
made by the Secretary in such eligible institution under the CPP that has not
been repaid.</text>
</paragraph><paragraph id="ID761c98c9d380409b8927c50182826a33"><enum>(11)</enum><header>Eligible
institution</header><text>The term <term>eligible institution</term>
means—</text>
<subparagraph id="ID97adb704c221452cb30d7745369872cd"><enum>(A)</enum><text>any insured depository
institution, which—</text>
<clause id="IDc7a03f83ac174ce8b48b50f8064d8b86"><enum>(i)</enum><text>is not controlled by a
bank holding company or savings and loan holding company that is also an
eligible institution;</text>
</clause><clause id="IDdc457067098e47c8a37faad1d3ffb03f"><enum>(ii)</enum><text>has total assets of
equal to or less than $10,000,000,000, as reported in the call report of the
insured depository institution as of the end of the fourth quarter of calendar
year 2009; and</text>
</clause><clause id="ID528a255f6e0e4fe48abc3f9bfdd6ac7b"><enum>(iii)</enum><text>is not directly or
indirectly controlled by any company or other entity that has total
consolidated assets of more than $10,000,000,000, as so reported;</text>
</clause></subparagraph><subparagraph id="IDd01c40f30c5447489437d486f62414bf"><enum>(B)</enum><text>any bank holding company
which has total consolidated assets of equal to or less than $10,000,000,000,
as reported in the call report of the bank holding company as of the end of the
fourth quarter of calendar year 2009;</text>
</subparagraph><subparagraph id="IDaf9213cdca764211be1fbe0500c5f22d"><enum>(C)</enum><text>any savings and loan
holding company which has total consolidated assets of equal to or less than
$10,000,000,000, as reported in the call report of the savings and loan holding
company as of the end of the fourth quarter of calendar year 2009; and</text>
</subparagraph><subparagraph id="ID060dde99d15e470db339789035b6ef1a"><enum>(D)</enum><text>any community development
financial institution loan fund which has total assets of equal to or less than
$10,000,000,000, as reported in audited financial statements for the fiscal
year of the community development financial institution loan fund that ends in
calendar year 2009.</text>
</subparagraph></paragraph><paragraph id="IDed3d88f739cd4c68b4ede48f0d1fd500"><enum>(12)</enum><header>Fund</header><text>The
term <term>Fund</term> means the Small Business Lending Fund established under
section 4103(a)(1).</text>
</paragraph><paragraph id="ID8f53a9762a46449d98f9b902a80b9a42"><enum>(13)</enum><header>Insured depository
institution</header><text>The term <term>insured depository institution</term>
has the meaning given such term under section 3(c)(2) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(c)(2)).</text>
</paragraph><paragraph id="ID7cc072624bdc49c3949f3da2650074cb"><enum>(14)</enum><header>Minority-owned and
women-owned business</header><text>The terms <term>minority-owned
business</term> and <term>women-owned business</term> shall have the meaning
given the terms <term>minority-owned business</term> and <term>women's
business</term>, respectively, under section 21A(r)(4) of the Federal Home Loan
Bank Act (12 U.S.C. 1441A(r)(4)).</text>
</paragraph><paragraph id="ID189d6a92a0ea4ceda82e8b492877e2c0"><enum>(15)</enum><header>Program</header><text>The
term <term>Program</term> means the Small Business Lending Fund Program
authorized under section 4103(a)(2).</text>
</paragraph><paragraph id="ID0c4f29484f7c42ae91c0dd4a73322199"><enum>(16)</enum><header>Savings and loan
holding company</header><text>The term <term>savings and loan holding
company</term> has the meaning given such term under section 10(a)(1)(D) of the
Home Owners' Loan Act (12 U.S.C. 1467a(a)(1)(D)).</text>
</paragraph><paragraph id="ID13ea83b2b9b54f0e967589eedf5d17d0"><enum>(17)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="IDc0ce175a13fb46778b110c64dc09f4d0"><enum>(18)</enum><header>Small business
lending</header>
<subparagraph id="ID15e33e6b0a7a416c87e8d65ee4c1c4e5"><enum>(A)</enum><header>In
general</header><text>The term <term>small business lending</term> means
lending, as defined by and reported in an eligible institutions' quarterly call
report, where each loan comprising such lending is one of the following
types:</text>
<clause id="IDb59cbf850c2648688cbb4184b7976f5d"><enum>(i)</enum><text>Commercial and industrial
loans.</text>
</clause><clause id="ID18e34480668b4d3fb5d3a620e0c61840"><enum>(ii)</enum><text>Owner-occupied nonfarm,
nonresidential real estate loans.</text>
</clause><clause id="ID8cecc1cfa3974b599ee15408e155f4a0"><enum>(iii)</enum><text>Loans to finance
agricultural production and other loans to farmers.</text>
</clause><clause id="ID37d86a964bfc40db8d5d29faf6783c3d"><enum>(iv)</enum><text>Loans secured by
farmland.</text>
</clause></subparagraph><subparagraph id="ID2c092685147d4c8792ec01cc83ee849a"><enum>(B)</enum><header>Exclusion</header><text>No
loan that has an original amount greater than $10,000,000 or that goes to a
business with more than $50,000,000 in revenues shall be included in the
measure.</text>
</subparagraph><subparagraph id="IDe75cd46e548b45a9b8746f109d19334e"><enum>(C)</enum><header>Treatment of holding
companies</header><text>In the case of eligible institutions that are bank
holding companies or savings and loan holding companies having one or more
insured depository institution subsidiaries, small business lending shall be
measured based on the combined small business lending reported in the call
report of the insured depository institution subsidiaries.</text>
</subparagraph></paragraph><paragraph id="IDa1aeb633d15d4ad4bea04ff23f5a3205"><enum>(19)</enum><header>Veteran-owned
business</header>
<subparagraph id="IDcfc8d24b9c594e83b338e5abe9148663"><enum>(A)</enum><text>The term
<term>veteran-owned business</term> means a business—</text>
<clause id="ID50bf9603a2e14afb8fa0875cd1ecee1d"><enum>(i)</enum><text>more than 50 percent of
the ownership or control of which is held by 1 or more veterans;</text>
</clause><clause id="ID96804a6af2ac4820a9fcbcfa0933f7f0"><enum>(ii)</enum><text>more than 50 percent of
the net profit or loss of which accrues to 1 or more veterans; and</text>
</clause><clause id="ID308d6b3914464191a9dbc1f9af3ca644"><enum>(iii)</enum><text>a significant
percentage of senior management positions of which are held by veterans.</text>
</clause></subparagraph><subparagraph id="ID62177d27905849ef89a22386348d436a"><enum>(B)</enum><text>For purposes of this
paragraph, the term <term>veteran</term> has the meaning given such term in
section 101(2) of title 38, United States Code.</text>
</subparagraph></paragraph></section><section id="IDe81d52d543b949f79ed9b46aed77ff84"><enum>4103.</enum><header>Small business
lending fund</header>
<subsection id="ID2d3679f0bb2c419b8d70e6d621f18ac7"><enum>(a)</enum><header>Fund and
program</header>
<paragraph id="ID437b1926166b4a5193daa5ece2fdcb5f"><enum>(1)</enum><header>Fund
established</header><text>There is established in the Treasury of the United
States a fund to be known as the <quote>Small Business Lending Fund</quote>,
which shall be administered by the Secretary.</text>
</paragraph><paragraph id="ID0e2973d7b0b44474b9196a9cb5d0c22d"><enum>(2)</enum><header>Programs
authorized</header><text>The Secretary is authorized to establish the Small
Business Lending Fund Program for using the Fund consistent with this
subtitle.</text>
</paragraph></subsection><subsection id="ID582af07b31f74e598e8939a01839a4ec"><enum>(b)</enum><header>Use of fund</header>
<paragraph id="IDe8a3184f26634436bedfbbd8310ec572"><enum>(1)</enum><header>In
general</header><text>Subject to paragraph (2), the Fund shall be available to
the Secretary, without further appropriation or fiscal year limitation, for the
costs of purchases (including commitments to purchase), and modifications of
such purchases, of preferred stock and other financial instruments from
eligible institutions on such terms and conditions as are determined by the
Secretary in accordance with this subtitle. For purposes of this paragraph and
with respect to an eligible institution, the term <term>other financial
instruments</term> shall include only debt instruments for which such eligible
institution is fully liable or equity equivalent capital of the eligible
institution. Such debt instruments may be subordinated to the claims of other
creditors of the eligible institution.</text>
</paragraph><paragraph id="ID0f32b5336eb547c2b095c1712f3d0f97"><enum>(2)</enum><header>Maximum purchase
limit</header><text>The aggregate amount of purchases (and commitments to
purchase) made pursuant to paragraph (1) may not exceed $30,000,000,000.</text>
</paragraph><paragraph id="ID337f76c2d78b490db5aae74da8a094f6"><enum>(3)</enum><header>Proceeds used to pay
down public debt</header><text>All funds received by the Secretary in
connection with purchases made pursuant to paragraph (1), including interest
payments, dividend payments, and proceeds from the sale of any financial
instrument, shall be paid into the general fund of the Treasury for reduction
of the public debt.</text>
</paragraph><paragraph id="IDb1b983e77dc2428eb2a16248eafdb040"><enum>(4)</enum><header>Limitation on purchases
from CDLFs</header>
<subparagraph id="IDa3003d9043cb4e6ea26ffb7802b1eb58"><enum>(A)</enum><header>In
general</header><text>Not more than 1 percent of the maximum purchase limit of
the Program, pursuant to paragraph (2), may be used to make purchases from
community development loan funds.</text>
</subparagraph><subparagraph id="IDa3dd725f1e134549b87192cf4b33ee0d"><enum>(B)</enum><header>Eligibility
standards</header><text>The Secretary, in consultation with the Community
Development Financial Institutions Fund, shall develop eligibility criteria to
determine the financial ability of a CDLF to participate in the Program and
repay the investment. Such criteria shall include the following:</text>
<clause id="ID47343bdde58549698e89292dfb0604f1"><enum>(i)</enum><text>Ratio of net assets to
total assets is at least 20 percent.</text>
</clause><clause id="IDfff6d861486a455f8617377debc5e2c7"><enum>(ii)</enum><text>Ratio of loan loss
reserves to loans and leases 90 days or more delinquent (including loans sold
with full recourse) is at least 30 percent.</text>
</clause><clause id="IDcda4692d3b98450bab5dc7044df8d93f"><enum>(iii)</enum><text>Positive net income
measured on a 3-year rolling average.</text>
</clause><clause id="ID01cf0d03ca0c4d0ea378d957c6e4c60b"><enum>(iv)</enum><text>Operating liquidity
ratio of at least 1.0 for the 4 most recent quarters and for one or both of the
two preceding years.</text>
</clause><clause id="IDb89239e2a85e49a39b582136297052db"><enum>(v)</enum><text>Ratio of loans and leases
90 days or more delinquent (including loans sold with full recourse) to total
equity plus loan loss reserves is less than 40 percent.</text>
</clause></subparagraph><subparagraph id="ID848ac060d9ff401fa468e165e2a15dad"><enum>(C)</enum><header>Requirement to submit
audited financial statements</header><text>CDLFs participating in the Program
shall submit audited financial statements to the Secretary, have a clean audit
opinion, and have at least 3 years of operating experience.</text>
</subparagraph></paragraph></subsection><subsection id="ID9e4ec89bbe454b86be63986510f21483"><enum>(c)</enum><header>Credits to the
fund</header><text>There shall be credited to the Fund amounts made available
pursuant to section 4108, to the extent provided by appropriations Acts.</text>
</subsection><subsection id="ID4e433a60b2c844c0a334fd659a9a03dc"><enum>(d)</enum><header>Terms</header>
<paragraph id="IDdb96ab6e170d43e696482e2e690a4ee4"><enum>(1)</enum><header>Application</header>
<subparagraph id="ID4afd6e06761d47dba20003d7aeb4ccc7"><enum>(A)</enum><header>Institutions with
assets of $1,000,000,000 or less</header><text>Eligible institutions having
total assets equal to or less than $1,000,000,000, as reported in a call report
as of the end of the fourth quarter of calendar year 2009, may apply to receive
a capital investment from the Fund in an amount not exceeding 5 percent of
risk-weighted assets, as reported in the call report immediately preceding the
date of application, less the amount of any CDCI investment and any CPP
investment.</text>
</subparagraph><subparagraph id="ID867cce0745ac4589964c5a984891a329"><enum>(B)</enum><header>Institutions with
assets of more than $1,000,000,000 and less than or equal to
$10,000,000,000</header><text>Eligible institutions having total assets of more
than $1,000,000,000 but less than $10,000,000,000, as of the end of the fourth
quarter of calendar year 2009, may apply to receive a capital investment from
the Fund in an amount not exceeding 3 percent of risk-weighted assets, as
reported in the call report immediately preceding the date of application, less
the amount of any CDCI investment and any CPP investment.</text>
</subparagraph><subparagraph id="ID82bb494707874d5f8ca87dcba7865eeb"><enum>(C)</enum><header>Treatment of holding
companies</header><text>In the case of an eligible institution that is a bank
holding company or a savings and loan holding company having one or more
insured depository institution subsidiaries, total assets shall be measured
based on the combined total assets reported in the call report of the insured
depository institution subsidiaries as of the end of the fourth quarter of
calendar year 2009 and risk-weighted assets shall be measured based on the
combined risk-weighted assets of the insured depository institution
subsidiaries as reported in the call report immediately preceding the date of
application.</text>
</subparagraph><subparagraph id="IDd8a00a1af8b648b2b97e11c67bdd5251"><enum>(D)</enum><header>Treatment of applicants
that are institutions controlled by holding companies</header><text>If an
eligible institution that applies to receive a capital investment under the
Program is under the control of a bank holding company or a savings and loan
holding company, then the Secretary may use the Fund to purchase preferred
stock or other financial instruments from the top-tier bank holding company or
savings and loan holding company of such eligible institution, as applicable.
For purposes of this subparagraph, the term <term>control</term> with respect
to a bank holding company shall have the same meaning as in section 2(a)(2) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1841(2)(a)(2)). For purposes of
this subparagraph, the term <term>control</term> with respect to a savings and
loan holding company shall have the same meaning as in 10(a)(2) of the Home
Owners' Loan Act (12 U.S.C. 1467a(a)(2)).</text>
</subparagraph><subparagraph id="ID03a3ff7a72734677a18bfcd0215d63f6"><enum>(E)</enum><header>Requirement to provide
a small business lending plan</header><text>At the time that an applicant
submits an application to the Secretary for a capital investment under the
Program, the applicant shall deliver to the appropriate Federal banking agency,
and, for applicants that are State-chartered banks, to the appropriate State
banking regulator, a small business lending plan describing how the applicant's
business strategy and operating goals will allow it to address the needs of
small businesses in the areas it serves, as well as a plan to provide
linguistically and culturally appropriate outreach, where appropriate. In the
case of eligible institutions that are community development loan funds, this
plan shall be submitted to the Secretary. This plan shall be confidential
supervisory information.</text>
</subparagraph><subparagraph id="ID96d7c3adb284491fb9a8173f43760b64"><enum>(F)</enum><header>Treatment of applicants
that are community development loan funds</header><text>Eligible institutions
that are community development loan funds may apply to receive a capital
investment from the Fund in an amount not exceeding 5 percent of total assets,
as reported in the audited financial statements for the fiscal year of the
eligible institution that ends in calendar year 2009.</text>
</subparagraph></paragraph><paragraph id="idDA592F7DC2C04A898A88F9F785F9157B"><enum>(2)</enum><header>Consultation with
regulators</header><text>For each eligible institution that applies to receive
a capital investment under the Program, the Secretary shall—</text>
<subparagraph id="ID385a3f55978b4c86a83ebe62d9b37142"><enum>(A)</enum><text>consult with the
appropriate Federal banking agency or, in the case of an eligible institution
that is a nondepository community development financial institution, the
Community Development Financial Institution Fund, for the eligible institution,
to determine whether the eligible institution may receive such capital
investment;</text>
</subparagraph><subparagraph id="ID9feb2fa5268e436f8fb38f2e3eb03c07"><enum>(B)</enum><text>in the case of an
eligible institution that is a State-chartered bank, consider any views
received from the State banking regulator of the State of the eligible
institution regarding the financial condition of the eligible institution;
and</text>
</subparagraph><subparagraph id="IDbbc31104645249cbaff65ec51bdd387f"><enum>(C)</enum><text>in the case of a
community development financial institution loan fund, consult with the
Community Development Financial Institution Fund.</text>
</subparagraph></paragraph><paragraph id="IDd721ad8f3f2447a7b6758076f6ce7044"><enum>(3)</enum><header>Consideration of
matched private investments</header>
<subparagraph id="idD9F974064C7A476987431A9E47DFEB0F"><enum>(A)</enum><header>In
general</header><text>For an eligible institution that applies to receive a
capital investment under the Program, if the entity to be consulted under
paragraph (2) would not otherwise recommend the eligible institution to receive
the capital investment, the Secretary, in consultation with the entity to be so
consulted, may consider whether the entity to be consulted would recommend the
eligible institution to receive a capital investment based on the financial
condition of the institution if the conditions in subparagraph (B) are
satisfied.</text>
</subparagraph><subparagraph id="id02F4F0B391C340E6A791DE0F6B66786D"><enum>(B)</enum><header>Conditions</header><text>The
conditions referred to in subparagraph (A) are as follows:</text>
<clause id="ID66ea9b2d37934feeaec42c245621dc13"><enum>(i)</enum><header>Capital
sources</header><text>The eligible institution shall receive capital both under
the Program and from private, nongovernment investors.</text>
</clause><clause id="ID2162e7f96e634143a5262ebfa9bd7876"><enum>(ii)</enum><header>Amount of
capital</header><text>The amount of capital to be received under the Program
shall not exceed 3 percent of risk-weighted assets, as reported in the call
report immediately preceding the date of application, less the amount of any
CDCI investment and any CPP investment.</text>
</clause><clause id="ID0419a2ea95094e0c982a95e9c172e245"><enum>(iii)</enum><header>Terms</header><text>The
amount of capital to be received from private, nongovernment investors shall
be—</text>
<subclause id="idF66AE729FE3C4B6C9E1BD1976FBA9CA6"><enum>(I)</enum><text>equal to or greater than
100 percent of the capital to be received under the Program; and</text>
</subclause><subclause id="ID95aac5f4916b419499320b98d18b6dd9"><enum>(II)</enum><text>subordinate to the
capital investment made by the Secretary under the Program.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="ID5267fa8bc6504bbeb50fa2467dc8cc52"><enum>(4)</enum><header>Ineligibility of
institutions on FDIC problem bank list</header>
<subparagraph id="IDb671272dd40740eca733a7732a2740c7"><enum>(A)</enum><header>In
general</header><text>An eligible institution may not receive any capital
investment under the Program, if—</text>
<clause id="IDd609343f285e42eb80056a909558d2ae"><enum>(i)</enum><text>such institution is on
the FDIC problem bank list; or</text>
</clause><clause id="IDfda84f28950e442bbc2b58bdf6a8dc02"><enum>(ii)</enum><text>such institution has
been removed from the FDIC problem bank list for less than 90 days.</text>
</clause></subparagraph><subparagraph id="IDacb94637138748ab9621b95ebd05a33a"><enum>(B)</enum><header>Construction</header><text>Nothing
in subparagraph (A) shall be construed as limiting the discretion of the
Secretary to deny the application of an eligible institution that is not on the
FDIC problem bank list.</text>
</subparagraph><subparagraph id="ID7a7466eed90a46388c34380283a57f19"><enum>(C)</enum><header>FDIC problem bank list
defined</header><text>For purposes of this paragraph, the term <term>FDIC
problem bank list</term> means the list of depository institutions having a
current rating of 4 or 5 under the Uniform Financial Institutions Rating
System, or such other list designated by the Federal Deposit Insurance
Corporation.</text>
</subparagraph></paragraph><paragraph id="ID8b481d53832a4bb7a4baceb02eda3473"><enum>(5)</enum><header>Incentives to
lend</header>
<subparagraph id="IDa5f425dead77457b9314ecb007f8ecf9"><enum>(A)</enum><header>Requirements on
preferred stock and other financial instruments</header><text>Any preferred
stock or other financial instrument issued to Treasury by an eligible
institution receiving a capital investment under the Program shall provide
that—</text>
<clause id="ID59d2a29f609041e09a0990c903a3fef2"><enum>(i)</enum><text>the rate at which
dividends or interest are payable shall be 5 percent per annum
initially;</text>
</clause><clause id="IDf69e65e2e6824c5c90ee05c625ea659a"><enum>(ii)</enum><text>within the first 2 years
after the date of the capital investment under the Program, the rate may be
adjusted based on the amount of an eligible institution's small business
lending. Changes in the amount of small business lending shall be measured
against the average amount of small business lending reported by the eligible
institution in its call reports for the 4 full quarters immediately preceding
the date of enactment of this Act, minus adjustments from each quarterly
balance in respect of—</text>
<subclause id="ID88a606012129491d9dc1570964beb2cf"><enum>(I)</enum><text>net loan charge offs with
respect to small business lending; and</text>
</subclause><subclause id="ID128513622552498e93f443256eb98356"><enum>(II)</enum><text>gains realized by the
eligible institution resulting from mergers, acquisitions or purchases of loans
after origination and syndication; which adjustments shall be determined in
accordance with guidance promulgated by the Secretary; and</text>
</subclause></clause><clause id="ID3c515321ab1d46c4ac534d215603a3a3"><enum>(iii)</enum><text>during any calendar
quarter during the initial 2-year period referred to in clause (ii), an
institution's rate shall be adjusted to reflect the following schedule, based
on that institution's change in the amount of small business lending relative
to the baseline—</text>
<subclause id="IDb2394e7c21f549c6bd6f7358deb97690"><enum>(I)</enum><text>if the amount of small
business lending has increased by less than 2.5 percent, the dividend or
interest rate shall be 5 percent;</text>
</subclause><subclause id="ID9d20876c55df4d6685f3d1967352338b"><enum>(II)</enum><text>if the amount of small
business lending has increased by 2.5 percent or greater, but by less than 5.0
percent, the dividend or interest rate shall be 4 percent;</text>
</subclause><subclause id="ID414de450c8a94250872dcb31f0d18811"><enum>(III)</enum><text>if the amount of small
business lending has increased by 5.0 percent or greater, but by less than 7.5
percent, the dividend or interest rate shall be 3 percent;</text>
</subclause><subclause id="IDcb8f5d257ccb4929829882c942d5ad13"><enum>(IV)</enum><text>if the amount of small
business lending has increased by 7.5 percent or greater, and but by less than
10.0 percent, the dividend or interest rate shall be 2 percent; or</text>
</subclause><subclause id="ID00d5360121f048d18294d41edc768737"><enum>(V)</enum><text>if the amount of small
business lending has increased by 10 percent or greater, the dividend or
interest rate shall be 1 percent.</text>
</subclause></clause></subparagraph><subparagraph id="ID13005bfce2d84e52ac1b0eea515c2f08"><enum>(B)</enum><header>Basis of initial
rate</header><text>The initial dividend or interest rate shall be based on call
report data published in the quarter immediately preceding the date of the
capital investment under the Program.</text>
</subparagraph><subparagraph id="IDc2570487bd9648e08e8d1b8861dc477e"><enum>(C)</enum><header>Timing of rate
adjustments</header><text>Any rate adjustment shall occur in the calendar
quarter following the publication of call report data, such that the rate based
on call report data from any one calendar quarter, which is published in the
first following calendar quarter, shall be adjusted in that first following
calendar quarter and payable in the second following quarter.</text>
</subparagraph><subparagraph id="ID679adae9a07949909c38493ae5c58c42"><enum>(D)</enum><header>Rate following initial
2-year period</header><text>Generally, the rate based on call report data from
the eighth calendar quarter after the date of the capital investment under the
Program shall be payable until the expiration of the
4<fraction>1/2</fraction>-year period that begins on the date of the
investment. In the case where the amount of small business lending has remained
the same or decreased relative to the institution's baseline in the eighth
quarter after the date of the capital investment under the Program, the rate
shall be 7 percent until the expiration of the 4<fraction>1/2</fraction>-year
period that begins on the date of the investment.</text>
</subparagraph><subparagraph id="ID67ccdaa19f064eafa28f12d4c875cef2"><enum>(E)</enum><header>Rate following initial
4<fraction>1/2</fraction> -year period</header><text>The dividend or interest
rate paid on any preferred stock or other financial instrument issued by an
eligible institution that receives a capital investment under the Program shall
increase to 9 percent at the end of the 4<fraction>1/2</fraction>-year period
that begins on the date of the capital investment under the Program.</text>
</subparagraph><subparagraph id="IDd4d3a908c01b436d8f1b0926ecf3ba21"><enum>(F)</enum><header>Limitation on rate
reductions with respect to certain amount</header><text>The reduction in the
dividend or interest rate payable to Treasury by any eligible institution shall
be limited such that the rate reduction shall not apply to a dollar amount of
the investment made by Treasury that is greater than the dollar amount increase
in the amount of small business lending realized under this program. The
Secretary may issue guidelines that will apply to new capital investments
limiting the amount of capital available to eligible institutions consistent
with this limitation.</text>
</subparagraph><subparagraph id="ID8da6175fd32f443491f5481d9ace8484"><enum>(G)</enum><header>Rate adjustments for s
corporation</header><text>Before making a capital investment in an eligible
institution that is an S corporation or a corporation organized on a mutual
basis, the Secretary may adjust the dividend or interest rate on the financial
instrument to be issued to the Secretary, from the dividend or interest rate
that would apply under subparagraphs (A) through (F), to take into account any
differential tax treatment of securities issued by such eligible institution.
For purpose of this subparagraph, the term <term>S corporation</term> has the
same meaning as in section 1361(a) of the Internal Revenue Code of 1986.</text>
</subparagraph><subparagraph id="ID835e5130d904411c816b1f23db43f280"><enum>(H)</enum><header>Repayment
deadline</header><text>The capital investment received by an eligible
institution under the Program shall be evidenced by preferred stock or other
financial instrument that—</text>
<clause id="ID903f214a1a964ac4a1c38adc27deb6c8"><enum>(i)</enum><text>includes, as a term and
condition, that the capital investment will—</text>
<subclause id="IDa30b30d83a014114a04bdd321d1577ec"><enum>(I)</enum><text>be repaid not later than
the end of the 10-year period beginning on the date of the capital investment
under the Program; or</text>
</subclause><subclause id="ID810277a26f184706b052ac8605b1e686"><enum>(II)</enum><text>at the end of such
10-year period, be subject to such additional terms as the Secretary shall
prescribe, which shall include a requirement that the stock or instrument shall
carry the highest dividend or interest rate payable; and</text>
</subclause></clause><clause id="IDc407981476b744a9a80abd175e4c2e63"><enum>(ii)</enum><text>provides that the term
and condition described under clause (i) shall not apply if the application of
that term and condition would adversely affect the capital treatment of the
stock or financial instrument under current or successor applicable capital
provisions compared to a capital instrument with identical terms other than the
term and condition described under clause (i).</text>
</clause></subparagraph><subparagraph id="ID46cbe8fd30ef4dcc939acb93610f564d"><enum>(I)</enum><header>Requirements on
financial instruments issued by a community development financial institution
loan fund</header><text>Any equity equivalent capital issued to the Treasury by
a community development loan fund receiving a capital investment under the
Program shall provide that the rate at which interest is payable shall be 2
percent per annum for 8 years. After 8 years, the rate at which interest is
payable shall be 9 percent.</text>
</subparagraph></paragraph><paragraph id="ID630fd71ce98a424daac5cec7d2c92628"><enum>(6)</enum><header>Additional incentives
to repay</header><text>The Secretary may, by regulation or guidance issued
under section 4104(9), establish repayment incentives in addition to the
incentive in paragraph (5)(E) that will apply to new capital investments in a
manner that the Secretary determines to be consistent with the purposes of this
subtitle.</text>
</paragraph><paragraph id="ID45e28974685449619521d26571880a1d"><enum>(7)</enum><header>Capital purchase
program refinance</header>
<subparagraph id="IDe4dc3522022e4f55aedd9d56c419f66a"><enum>(A)</enum><header>In
general</header><text>The Secretary shall, in a manner that the Secretary
determines to be consistent with the purposes of this subtitle, issue
regulations and other guidance to permit eligible institutions to refinance
securities issued to Treasury under the CDCI and the CPP for securities to be
issued under the Program.</text>
</subparagraph><subparagraph id="IDc581ffdab9104a009aa9781b276ede6a"><enum>(B)</enum><header>Prohibition on
participation by non-paying cpp participants</header><text>Subparagraph (A)
shall not apply to any eligible institution that has missed more than one
dividend payment due under the CPP. For purposes of this subparagraph, a CPP
dividend payment that is submitted within 60 days of the due date of such
payment shall not be considered a missed dividend payment.</text>
</subparagraph></paragraph><paragraph id="ID56dfe06bd2c143ddb3c4c2af382a52ef"><enum>(8)</enum><header>Outreach to minorities,
women, and veterans</header><text>The Secretary shall require eligible
institutions receiving capital investments under the Program to provide
linguistically and culturally appropriate outreach and advertising in the
applicant pool describing the availability and application process of receiving
loans from the eligible institution that are made possible by the Program
through the use of print, radio, television or electronic media outlets which
target organizations, trade associations, and individuals that—</text>
<subparagraph id="ID53585023cba84dc8830d7f5591412d18"><enum>(A)</enum><text>represent or work within
or are members of minority communities;</text>
</subparagraph><subparagraph id="IDc10612533bd74f92b96f02af83f789df"><enum>(B)</enum><text>represent or work with or
are women; and</text>
</subparagraph><subparagraph id="ID21d51499da6d4b7ea1a22f4e5dd79489"><enum>(C)</enum><text>represent or work with or
are veterans.</text>
</subparagraph></paragraph><paragraph id="ID39d2810387634bac9e78ef9548645a0a"><enum>(9)</enum><header>Additional
terms</header><text>The Secretary may, by regulation or guidance issued under
section 4104(9), make modifications that will apply to new capital investments
in order to manage risks associated with the administration of the Fund in a
manner consistent with the purposes of this subtitle.</text>
</paragraph><paragraph id="IDaa0bef84f7534ff881702719b4a36476"><enum>(10)</enum><header>Minimum underwriting
standards</header><text>The appropriate Federal banking agency for an eligible
institution that receives funds under the Program shall within 60 days issue
guidance regarding prudent underwriting standards that must be used for loans
made by the eligible institution using such funds.</text>
</paragraph></subsection></section><section id="ID672f72727e0f4719b5f86b20b20049cd"><enum>4104.</enum><header>Additional
authorities of the Secretary</header><text display-inline="no-display-inline">The Secretary may take such actions as the
Secretary deems necessary to carry out the authorities in this subtitle,
including, without limitation, the following:</text>
<paragraph id="IDa70ddf8ecaa3475cb5c7fe9c1397d3a2"><enum>(1)</enum><text>The Secretary may use the
services of any agency or instrumentality of the United States or component
thereof on a reimbursable basis, and any such agency or instrumentality or
component thereof is authorized to provide services as requested by the
Secretary using all authorities vested in or delegated to that agency,
instrumentality, or component.</text>
</paragraph><paragraph id="ID1d8f54c71ebf4979be0400739106e9a1"><enum>(2)</enum><text>The Secretary may enter
into contracts, including contracts for services authorized by section 3109 of
title 5, United States Code.</text>
</paragraph><paragraph id="ID9b74d978e27a4549a767ede8fe33b3c6"><enum>(3)</enum><text>The Secretary may
designate any bank, savings association, trust company, security broker or
dealer, asset manager, or investment adviser as a financial agent of the
Federal Government and such institution shall perform all such reasonable
duties related to this subtitle as financial agent of the Federal Government as
may be required. The Secretary shall have authority to amend existing
agreements with financial agents, entered into during the 2-year period before
the date of enactment of this Act, to perform reasonable duties related to this
subtitle.</text>
</paragraph><paragraph id="IDc82c27f861084648af532576c2849d36"><enum>(4)</enum><text>The Secretary may
exercise any rights received in connection with any preferred stock or other
financial instruments or assets purchased or acquired pursuant to the
authorities granted under this subtitle.</text>
</paragraph><paragraph id="ID7338543b41eb4bc184070bef0152c81f"><enum>(5)</enum><text>Subject to section
4103(b)(3), the Secretary may manage any assets purchased under this subtitle,
including revenues and portfolio risks therefrom.</text>
</paragraph><paragraph id="IDfd48f009a6534a20ad364453f93aae5e"><enum>(6)</enum><text>The Secretary may sell,
dispose of, transfer, exchange or enter into securities loans, repurchase
transactions, or other financial transactions in regard to, any preferred stock
or other financial instrument or asset purchased or acquired under this
subtitle, upon terms and conditions and at a price determined by the
Secretary.</text>
</paragraph><paragraph id="ID6b1732d6582643f599e89714daa1cf7e"><enum>(7)</enum><text>The Secretary may manage
or prohibit conflicts of interest that may arise in connection with the
administration and execution of the authorities provided under this
subtitle.</text>
</paragraph><paragraph id="ID9fe323e655c14b86929da42733c8bb49"><enum>(8)</enum><text>The Secretary may
establish and use vehicles, subject to supervision by the Secretary, to
purchase, hold, and sell preferred stock or other financial instruments and
issue obligations.</text>
</paragraph><paragraph id="ID9c42286b7d754cc69a66cd0817eb3188"><enum>(9)</enum><text>The Secretary may, in
consultation with the Administrator of the Small Business Administration, issue
such regulations and other guidance as may be necessary or appropriate to
define terms or carry out the authorities or purposes of this subtitle.</text>
</paragraph></section><section id="ID69a7bd8de5e743e5b83adf0055de68ee"><enum>4105.</enum><header>Considerations</header><text display-inline="no-display-inline">In exercising the authorities granted in
this subtitle, the Secretary shall take into consideration—</text>
<paragraph id="IDb5d588de59a14431ba521abfd5956529"><enum>(1)</enum><text>increasing the
availability of credit for small businesses;</text>
</paragraph><paragraph id="IDc530904bfcea4559a9cd250efed4f8b7"><enum>(2)</enum><text>providing funding to
minority-owned eligible institutions and other eligible institutions that serve
small businesses that are minority-, veteran-, and women-owned and that also
serve low- and moderate-income, minority, and other underserved or rural
communities;</text>
</paragraph><paragraph id="IDb04ec97ea2164cdc87b0a6e18de14de7"><enum>(3)</enum><text>protecting and increasing
American jobs;</text>
</paragraph><paragraph id="ID3cbcc7858b464978bb7e6676a0148b22"><enum>(4)</enum><text>increasing the
opportunity for small business development in areas with high unemployment
rates that exceed the national average;</text>
</paragraph><paragraph id="ID57ed33994b054cf49378992f67c67f58"><enum>(5)</enum><text>ensuring that all
eligible institutions may apply to participate in the program established under
this subtitle, without discrimination based on geography;</text>
</paragraph><paragraph id="IDd4ab37c06a24411d81b7edd04a4a9763"><enum>(6)</enum><text>providing transparency
with respect to use of funds provided under this subtitle;</text>
</paragraph><paragraph id="ID21af6148ce804e51ae9246fb40991bd8"><enum>(7)</enum><text>minimizing the cost to
taxpayers of exercising the authorities;</text>
</paragraph><paragraph id="ID6acc0c379e874193b15dcf735a663a6d"><enum>(8)</enum><text>promoting and engaging in
financial education to would-be borrowers; and</text>
</paragraph><paragraph id="IDff6084df1d8047edb115577ee0b04190"><enum>(9)</enum><text>providing funding to
eligible institutions that serve small businesses directly affected by the
discharge of oil arising from the explosion on and sinking of the mobile
offshore drilling unit Deepwater Horizon and small businesses in communities
that have suffered negative economic effects as a result of that discharge with
particular consideration to States along the coast of the Gulf of
Mexico.</text>
</paragraph></section><section id="IDbdb28f065811473984f6fa7e6e575f96"><enum>4106.</enum><header>Reports</header><text display-inline="no-display-inline">The Secretary shall provide to the
appropriate committees of Congress—</text>
<paragraph id="ID8f2526e01ace42ed90d338e8168dd229"><enum>(1)</enum><text>within 7 days of the end
of each month commencing with the first month in which transactions are made
under the Program, a written report describing all of the transactions made
during the reporting period pursuant to the authorities granted under this
subtitle;</text>
</paragraph><paragraph id="IDad51bef4d2d24e378150a3ab1f0820dc"><enum>(2)</enum><text>after the end of March
and the end of September, commencing September 30, 2010, a written report on
all projected costs and liabilities, all operating expenses, including
compensation for financial agents, and all transactions made by the Fund, which
shall include participating institutions and amounts each institution has
received under the Program; and</text>
</paragraph><paragraph id="IDb0461ff1dc65469bbfc0a43b0512703f"><enum>(3)</enum><text>within 7 days of the end
of each calendar quarter commencing with the first calendar quarter in which
transactions are made under the Program, a written report detailing how
eligible institutions participating in the Program have used the funds such
institutions received under the Program.</text>
</paragraph></section><section id="ID7126feea1120471cbcdb7e55fb273664"><enum>4107.</enum><header>Oversight and
audits</header>
<subsection id="IDefede518ca034f508d8bd86357febeaa"><enum>(a)</enum><header>Inspector General
Oversight</header><text>The Inspector General of the Department of the Treasury
shall conduct, supervise, and coordinate audits and investigations of the
Program through the Office of Small Business Lending Fund Program Oversight
established under subsection (b).</text>
</subsection><subsection id="ID25c48f29d28647089e15de9f4cc288d4"><enum>(b)</enum><header>Office of small
business lending fund program oversight</header>
<paragraph id="IDe1f2b24572d8430492d0d1d794b75c1a"><enum>(1)</enum><header>Establishment</header><text>There
is hereby established within the Office of the Inspector General of the
Department of the Treasury a new office to be named the <quote>Office of Small
Business Lending Fund Program Oversight</quote> to provide oversight of the
Program.</text>
</paragraph><paragraph id="ID58e827c861e24dc380a106b8ff9ecb3b"><enum>(2)</enum><header>Leadership</header><text>The
Inspector General shall appoint a Special Deputy Inspector General for SBLF
Program Oversight to lead the Office, with commensurate staff, who shall report
directly to the Inspector General and who shall be responsible for the
performance of all auditing and investigative activities relating to the
Program.</text>
</paragraph><paragraph id="ID3bb066665f3348d1997d5ac2e1a8a9ad"><enum>(3)</enum><header>Reporting</header>
<subparagraph id="IDa830d73fe3384821b8350d382105449f"><enum>(A)</enum><header>In
general</header><text>The Inspector General shall issue a report no less than
two times a year to the Congress and the Secretary devoted to the oversight
provided by the Office, including any recommendations for improvements to the
Program.</text>
</subparagraph><subparagraph id="IDb3419183a8cc46b49a49bf61ab1974fb"><enum>(B)</enum><header>Recommendations</header><text>With
respect to any deficiencies identified in a report under subparagraph (A), the
Secretary shall either—</text>
<clause id="IDcabbc97fb6f84f42a0142d30b74a7d4c"><enum>(i)</enum><text>take actions to address
such deficiencies; or</text>
</clause><clause id="ID7dae0aa03dfa4d91a4964e5cd50d4336"><enum>(ii)</enum><text>certify to the
appropriate committees of Congress that no action is necessary or
appropriate.</text>
</clause></subparagraph></paragraph><paragraph id="ID5bc87303da4f4929b3603f6cac456626"><enum>(4)</enum><header>Coordination</header><text>The
Inspector General, in maximizing the effectiveness of the Office, shall work
with other Offices of Inspector General, as appropriate, to minimize
duplication of effort and ensure comprehensive oversight of the Program.</text>
</paragraph><paragraph id="IDcd368dc089354eacb945a5b447c15e24"><enum>(5)</enum><header>Termination</header><text>The
Office shall terminate at the end of the 6-month period beginning on the date
on which all capital investments are repaid under the Program or the date on
which the Secretary determines that any remaining capital investments will not
be repaid.</text>
</paragraph><paragraph id="ID4f6716bffcf84583b98aeceee33f1e65"><enum>(6)</enum><header>Definitions</header><text>For
purposes of this subsection:</text>
<subparagraph id="ID4adb21915573499090de8277d884091e"><enum>(A)</enum><header>Office</header><text>The
term <term>Office</term> means the Office of Small Business Lending Fund
Program Oversight established under paragraph (1).</text>
</subparagraph><subparagraph id="IDa6f4a35d4b9a409cb0a3733dc8a4cb99"><enum>(B)</enum><header>Inspector
general</header><text>The term <term>Inspector General</term> means the
Inspector General of the Department of the Treasury.</text>
</subparagraph></paragraph></subsection><subsection id="ID770976a644f1424aa088567044bfc91e"><enum>(c)</enum><header>GAO
Audit</header><text>The Comptroller General of the United States shall perform
an annual audit of the Program and issue a report to the appropriate committees
of Congress containing the results of such audit.</text>
</subsection><subsection id="ID93260ee772c2451a8b857a1eb8962906"><enum>(d)</enum><header>Required
Certifications</header>
<paragraph id="ID0cedac22c5c64b92aae397132119eb78"><enum>(1)</enum><header>Eligible institution
certification</header><text>Each eligible institution that participates in the
Program must certify that such institution is in compliance with the
requirements of section 103.121 of title 31, Code of Federal Regulations, a
regulation that, at a minimum, requires financial institutions, as that term is
defined in 31 U.S.C. 5312(a)(2) and (c)(1)(A), to implement reasonable
procedures to verify the identity of any person seeking to open an account, to
the extent reasonable and practicable, maintain records of the information used
to verify the person's identity, and determine whether the person appears on
any lists of known or suspected terrorists or terrorist organizations provided
to the financial institution by any government agency.</text>
</paragraph><paragraph id="ID5c9e94c480004955b9bc9f4e3f941506"><enum>(2)</enum><header>Loan
recipients</header><text>With respect to funds received by an eligible
institution under the Program, any business receiving a loan from the eligible
institution using such funds after the date of the enactment of this Act shall
certify to such eligible institution that the principals of such business have
not been convicted of a sex offense against a minor (as such terms are defined
in section 111 of the Sex Offender Registration and Notification Act (42 U.S.C.
16911)).</text>
</paragraph></subsection><subsection id="ID2d07ad5bb43546c6965fd565171198f6"><enum>(e)</enum><header>Prohibition on
Pornography</header><text>None of the funds made available under this subtitle
may be used to pay the salary of any individual engaged in activities related
to the Program who has been officially disciplined for violations of subpart G
of the Standards of Ethical Conduct for Employees of the Executive Branch for
viewing, downloading, or exchanging pornography, including child pornography,
on a Federal Government computer or while performing official Federal
Government duties.</text>
</subsection></section><section id="IDc502b03e58844b8eafccc82087dc333d"><enum>4108.</enum><header>Credit reform;
funding</header>
<subsection id="IDdf6bef3d9d6c47c7888ac55be80baa4b"><enum>(a)</enum><header>Credit
Reform</header><text>The cost of purchases of preferred stock and other
financial instruments made as capital investments under this subtitle shall be
determined as provided under the Federal Credit Reform Act of 1990 (2 U.S.C.
661 et seq.).</text>
</subsection><subsection id="ID29ecce1204814b0ca87d01dbb7e7eea9"><enum>(b)</enum><header>Funds Made
Available</header><text>There are hereby appropriated, out of funds in the
Treasury not otherwise appropriated, such sums as may be necessary to pay the
costs of $30,000,000,000 of capital investments in eligible institutions,
including the costs of modifying such investments, and reasonable costs of
administering the program of making, holding, managing, and selling the capital
investments.</text>
</subsection></section><section id="IDd358f2525bda4f63bfd29a611690e7b1"><enum>4109.</enum><header>Termination and
continuation of authorities</header>
<subsection id="IDd136f407c4cd4b179f7d2262ec78cbba"><enum>(a)</enum><header>Termination of
Investment Authority</header><text>The authority to make capital investments in
eligible institutions, including commitments to purchase preferred stock or
other instruments, provided under this subtitle shall terminate 1 year after
the date of enactment of this Act.</text>
</subsection><subsection id="IDc79c1e6dd77245039169e7a881b7c353"><enum>(b)</enum><header>Continuation of Other
Authorities</header><text>The authorities of the Secretary under section 4104
shall not be limited by the termination date in subsection (a).</text>
</subsection></section><section id="ID920ac236fde64838bd80ff9dd15cef7f"><enum>4110.</enum><header>Preservation of
authority</header><text display-inline="no-display-inline">Nothing in this
subtitle may be construed to limit the authority of the Secretary under any
other provision of law.</text>
</section><section id="ID65df3fc7dd1c483d98a8cb662b60ff16"><enum>4111.</enum><header>Assurances</header>
<subsection id="ID75a94d106a4e43d0937ab9830828a8e2"><enum>(a)</enum><header>Small Business Lending
Fund Separate From TARP</header><text>The Small Business Lending Fund Program
is established as separate and distinct from the Troubled Asset Relief Program
established by the Emergency Economic Stabilization Act of 2008. An institution
shall not, by virtue of a capital investment under the Small Business Lending
Fund Program, be considered a recipient of the Troubled Asset Relief
Program.</text>
</subsection><subsection id="ID5b0b6a568df14da093e79b2b43e06123"><enum>(b)</enum><header>Change in
Law</header><text>If, after a capital investment has been made in an eligible
institution under the Program, there is a change in law that modifies the terms
of the investment or program in a materially adverse respect for the eligible
institution, the eligible institution may, after consultation with the
appropriate Federal banking agency for the eligible institution, repay the
investment without impediment.</text>
</subsection></section><section id="ID21d09f031a2842e6ab5c386569267c5f"><enum>4112.</enum><header>Study and report with
respect to women-owned, veteran-owned, and minority-owned businesses</header>
<subsection id="ID6de5ace770bb47f285bedfdc0adf1cd3"><enum>(a)</enum><header>Study</header><text>The
Secretary shall conduct a study of the impact of the Program on women-owned
businesses, veteran-owned businesses, and minority-owned businesses.</text>
</subsection><subsection id="ID5fc50faefe4b41f98c6774effbff33b0"><enum>(b)</enum><header>Report</header><text>Not
later than one year after the date of enactment of this Act, the Secretary
shall submit to Congress a report on the results of the study conducted
pursuant to subsection (a). To the extent possible, the Secretary shall
disaggregate the results of such study by ethnic group and gender.</text>
</subsection><subsection id="IDf608c3c4fba346d790ce070959f0dac6"><enum>(c)</enum><header>Information Provided to
the Secretary</header><text>Eligible institutions that participate in the
Program shall provide the Secretary with such information as the Secretary may
require to carry out the study required by this section.</text>
</subsection></section><section id="ID5fc4de7fae534496a00c0b7046a152f5"><enum>4113.</enum><header>Sense of
congress</header><text display-inline="no-display-inline">It is the sense of
Congress that the Federal Deposit Insurance Corporation and other bank
regulators are sending mixed messages to banks regarding regulatory capital
requirements and lending standards, which is a contributing cause of decreased
small business lending and increased regulatory uncertainty at community
banks.</text>
</section></subtitle><subtitle id="idBD18BDF1A8BA4F4FAD842897BF8C8149"><enum>B</enum><header>Other provisions</header>
<part id="id13CF21AAFD4A4FAE93F077FEABF653CF"><enum>I</enum><header>Small business export
promotion initiatives</header>
<section id="idC98AEC19B6E642E6B5281973F183F861"><enum>4221.</enum><header>Short
title</header><text display-inline="no-display-inline">This part may be cited
as the <quote>Export Promotion Act of 2010</quote>.</text>
</section><section id="idFC5A3447D4BF4844AE24CCDC2E48A17A"><enum>4222.</enum><header>Global business
development and promotion activities of the Department of Commerce</header>
<subsection id="id75515A84540344C885CDEF0A89F86C12"><enum>(a)</enum><header>Increase in employees
with responsibility for global business development and promotion
activities</header>
<paragraph id="id61E2CC882F4E4CD9A13B71147FFBD4C6"><enum>(1)</enum><header>In
general</header><text>During the 24-month period beginning on the date of the
enactment of this Act, the Secretary of Commerce shall increase the number of
full-time departmental employees whose primary responsibilities involve
promoting or facilitating participation by United States businesses in the
global marketplace and facilitating the entry into, or expansion of, such
participation by United States businesses. In carrying out this subsection, the
Secretary shall ensure that—</text>
<subparagraph id="idED6DB8CB84404F7D8B9FD5C7536D0E1D"><enum>(A)</enum><text>the cohort of such
employees is increased by not less than 80 persons; and</text>
</subparagraph><subparagraph id="idA01EB6FB1E61426AB8558A4A6589F882"><enum>(B)</enum><text>a substantial portion of
the increased cohort is stationed outside the United States.</text>
</subparagraph></paragraph><paragraph id="id83324F631DA44F99B8AFF471E12E386E"><enum>(2)</enum><header>Enhanced focus on
United States small- and medium-sized businesses</header><text>In carrying out
this subsection, the Secretary shall take such action as may be necessary to
ensure that the activities of the Department of Commerce relating to promoting
and facilitating participation by United States businesses in the global
marketplace include promoting and facilitating such participation by small and
medium-sized businesses in the United States.</text>
</paragraph><paragraph id="ID93ccac33a92a4826b6b2860b13b64ae7"><enum>(3)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Secretary for each of the fiscal years 2011 and 2012 such sums as may be
necessary to carry out this section.</text>
</paragraph></subsection><subsection id="ID6cd975092ea6498488ecfa54f892dd3e"><enum>(b)</enum><header>Additional funding for
global business development and promotion activities of the Department of
Commerce</header>
<paragraph id="IDdbb9a64819be4ac884d8ac608081fe66"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated to the Secretary
of Commerce for the period beginning on the date of the enactment of this Act
and ending 18 months thereafter, $30,000,000 to promote or facilitate
participation by United States businesses in the global marketplace and
facilitating the entry into, or expansion of, such participation by United
States businesses.</text>
</paragraph><paragraph id="ID4bbb2337a0bc4cc8a064086fae77e01c"><enum>(2)</enum><header>Requirements</header><text>In
obligating and expending the funds authorized to be appropriated by paragraph
(1), the Secretary of Commerce shall give preference to activities that—</text>
<subparagraph id="IDf28a546142354f658a3f46582c95baa4"><enum>(A)</enum><text>assist small- and
medium-sized businesses in the United States; and</text>
</subparagraph><subparagraph id="IDb63dcbffeb4943de8ad3875abaaa4a30"><enum>(B)</enum><text>the Secretary determines
will create or sustain the greatest number of jobs in the United States and
obtain the maximum return on investment.</text>
</subparagraph></paragraph></subsection></section><section id="ID56db5c4e181748da92bc281454a1a533"><enum>4223.</enum><header>Additional funding to
improve access to global markets for rural businesses</header>
<subsection id="ID3f1842e9e23c4fff975789daebefc28e"><enum>(a)</enum><header>In
general</header><text>There are authorized to be appropriated to the Secretary
of Commerce $5,000,000 for each of the fiscal years 2011 and 2012 for improving
access to the global marketplace for goods and services provided by rural
businesses in the United States.</text>
</subsection><subsection id="ID314a85e2455c4fb996c918ad4e88189a"><enum>(b)</enum><header>Requirements</header><text>In
obligating and expending the funds authorized to be appropriated by subsection
(a), the Secretary of Commerce shall give preference to activities that—</text>
<paragraph id="ID5bc218b6f3ad405c873fdca63f7ef4a0"><enum>(1)</enum><text>assist small- and
medium-sized businesses in the United States; and</text>
</paragraph><paragraph id="ID7bc0bb9f635c4118b2fdff0f6938742e"><enum>(2)</enum><text>the Secretary determines
will create or sustain the greatest number of jobs in the United States and
obtain the maximum return on investment.</text>
</paragraph></subsection></section><section id="ID13cde38ba31e415eb4b5ba1bff578d74"><enum>4224.</enum><header>Additional funding
for the ExporTech program</header>
<subsection id="ID013e7ca1bb5e40988a951bdf3a129ea7"><enum>(a)</enum><header>In
general</header><text>There are authorized to be appropriated to the Secretary
of Commerce $11,000,000 for the period beginning on the date of the enactment
of this Act and ending 18 months thereafter, to expand ExporTech, a joint
program of the Hollings Manufacturing Partnership Program and the Export
Assistance Centers of the Department of Commerce.</text>
</subsection><subsection id="IDaeb018848e7e43e6a9ef724b8ac0479d"><enum>(b)</enum><header>Requirements</header><text>In
obligating and expending the funds authorized to be appropriated by subsection
(a), the Secretary of Commerce shall give preference to activities that—</text>
<paragraph id="IDd5034c1d20664126b514c7c211fbadd5"><enum>(1)</enum><text>assist small- and
medium-sized businesses in the United States; and</text>
</paragraph><paragraph id="ID1f88217404544c76875e96c4fe672706"><enum>(2)</enum><text>the Secretary determines
will create or sustain the greatest number of jobs in the United States and
obtain the maximum return on investment.</text>
</paragraph></subsection></section><section id="ID2e19b1f28b2a475d81f89a6f8c0c33b6"><enum>4225.</enum><header>Additional funding
for the market development cooperator program of the department of
commerce</header>
<subsection id="ID9abe34852c6543879a0e87c682cbeb8e"><enum>(a)</enum><header>In
general</header><text>There are authorized to be appropriated to the Secretary
of Commerce for the period beginning on the date of the enactment of this Act
and ending 18 months thereafter, $15,000,000 for the Manufacturing and Services
unit of the International Trade Administration—</text>
<paragraph id="IDc570845c4c174ce78e70fc9a556aeade"><enum>(1)</enum><text>to establish
public-private partnerships under the Market Development Cooperator Program of
the International Trade Administration; and</text>
</paragraph><paragraph id="ID1cc0dd1e1d4246cd9b0cdacd36b9aff0"><enum>(2)</enum><text>to underwrite a portion
of the start-up costs for new projects carried out under that Program to
strengthen the competitiveness and market share of United States industry, not
to exceed, for each such project, the lesser of—</text>
<subparagraph id="IDe707f96c925e466f8c88cbad29b5d0ab"><enum>(A)</enum><text><fraction>1/3</fraction>
of the total start-up costs for the project; or</text>
</subparagraph><subparagraph id="ID584e48a966864ec1a5dd8c96b87e0a01"><enum>(B)</enum><text>$500,000.</text>
</subparagraph></paragraph></subsection><subsection id="IDcd4264c19802485182bfb08610d8b3e1"><enum>(b)</enum><header>Requirements</header><text>In
obligating and expending the funds authorized to be appropriated by subsection
(a), the Secretary of Commerce shall give preference to activities that—</text>
<paragraph id="ID5acb2d2f030f41c0b399e67549e04dac"><enum>(1)</enum><text>assist small- and
medium-sized businesses in the United States; and</text>
</paragraph><paragraph id="ID2dfc356e22d74b6987cd4dd9022ad81b"><enum>(2)</enum><text>the Secretary determines
will create or sustain the greatest number of jobs in the United States and
obtain the maximum return on investment.</text>
</paragraph></subsection></section><section id="ID3e13032aba7343e3b78f769ad80b13f7"><enum>4226.</enum><header>Hollings
Manufacturing Partnership Program; Technology Innovation Program</header>
<subsection id="IDcceb7b541b4b47a9b7edbbcaeea41f96"><enum>(a)</enum><header>Hollings manufacturing
partnership program</header><text>Section 25(f) of the National Institute of
Standards and Technology Act (15 U.S.C. 278k(f)) is amended by adding at the
end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4B7D29ED172249B9A483FA1D3F2D9D6C" reported-display-style="italic" style="OLC">
<paragraph id="ID7b21fe7f2c4d42cda7825a6aa7c365e6"><enum>(7)</enum><header>Global marketplace
projects</header><text>In making awards under this subsection, the Director, in
consultation with the Manufacturing Extension Partnership Advisory Board and
the Secretary of Commerce, may—</text>
<subparagraph id="idDDFD23E6A1024C09A1C881DED62E860D"><enum>(A)</enum><text>take into consideration
whether an application has significant potential for enhancing the
competitiveness of small and medium-sized United States manufacturers in the
global marketplace; and</text>
</subparagraph><subparagraph id="id9776CC0839F44DDC848143AB55D2957F"><enum>(B)</enum><text>give a preference to
applications for such projects to the extent the Director deems appropriate,
taking into account the broader purposes of this
subsection.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="ID3e155a060d12433ba43cb2d55b51f358"><enum>(b)</enum><header>Technology innovation
program</header><text>In awarding grants, cooperative agreements, or contracts
under section 28 of the National Institute of Standards and Technology Act (15
U.S.C. 278n), in addition to the award criteria set forth in subsection (c) of
that section, the Director of the National Institute of Standards and
Technology may take into consideration whether an application has significant
potential for enhancing the competitiveness of small- and medium-sized
businesses in the United States in the global marketplace. The Director shall
consult with the Technology Innovation Program Advisory Board and the Secretary
of Commerce in implementing this subsection.</text>
</subsection></section><section id="ID9e7458505a294393974c7fc928ea7f28"><enum>4227.</enum><header>Sense of the Senate
concerning Federal collaboration with States on export promotion
issues</header><text display-inline="no-display-inline">It is the sense of the
Senate that the Secretary of Commerce should enhance Federal collaboration with
the States on export promotion issues by—</text>
<paragraph id="ID7089b731958d41f4a48f6f861aa53c62"><enum>(1)</enum><text>providing the necessary
training to the staff at State international trade agencies to enable them to
assist the United States and Foreign Commercial Service (established by section
2301 of the Export Enhancement Act of 1988 (15 U.S.C. 4721)) in providing
counseling and other export services to businesses in their communities;
and</text>
</paragraph><paragraph id="id8A9B64CC30354A2DA4C45DA57A32FC31"><enum>(2)</enum><text>entering into agreements
with State international trade agencies for those agencies to deliver export
promotion services in their local communities in order to extend the outreach
of United States and Foreign Commercial Service programs.</text>
</paragraph></section><section id="IDa71fe511009343cd81f84cc5c33419b8"><enum>4228.</enum><header>Report on tariff and
nontariff barriers</header><text display-inline="no-display-inline">Not later
than 90 days after the date of the enactment of this Act, the Secretary of
Commerce, in consultation with the United States Trade Representative and other
appropriate entities, shall report to Congress on the tariff and nontariff
barriers imposed by Colombia, the Republic of Korea, and Panama with respect to
exports of articles from the United States, including articles exported or
produced by small- and medium-sized businesses in the United States.</text>
</section></part><part id="id017878EF799940B8BA64950AAB588B6F"><enum>II</enum><header>Medicare fraud</header>
<section id="idBC0F3A3A562D4A9CA41CDE628F800F6A"><enum>4241.</enum><header>Use of predictive
modeling and other analytics technologies to identify and prevent waste, fraud,
and abuse in the Medicare fee-for-service program</header>
<subsection id="id9E474F62AA554A6A8D902F54230DD51E"><enum>(a)</enum><header>Use in the Medicare
fee-for-service program</header><text>The Secretary shall use predictive
modeling and other analytics technologies (in this section referred to as
<quote>predictive analytics technologies</quote>) to identify improper claims
for reimbursement and to prevent the payment of such claims under the Medicare
fee-for-service program.</text>
</subsection><subsection id="IDd69782556d2043d4aa0ddfe1bb870bc0"><enum>(b)</enum><header>Predictive analytics
technologies requirements</header><text>The predictive analytics technologies
used by the Secretary shall—</text>
<paragraph id="ID7cfc95d1365e4ea0846b70f176058c83"><enum>(1)</enum><text>capture Medicare provider
and Medicare beneficiary activities across the Medicare fee-for-service program
to provide a comprehensive view across all providers, beneficiaries, and
geographies within such program in order to—</text>
<subparagraph id="IDd8724a1193014a048eff62e538bdf47e"><enum>(A)</enum><text>identify and analyze
Medicare provider networks, provider billing patterns, and beneficiary
utilization patterns; and</text>
</subparagraph><subparagraph id="ID12e553e3e8ca47f2bb1990e6eb99a98e"><enum>(B)</enum><text>identify and detect any
such patterns and networks that represent a high risk of fraudulent
activity;</text>
</subparagraph></paragraph><paragraph id="ID1a668dcf9594400f95f485b3c64ab64e"><enum>(2)</enum><text>be integrated into the
existing Medicare fee-for-service program claims flow with minimal effort and
maximum efficiency;</text>
</paragraph><paragraph id="IDaf5cd365253442a2a54db89169f788f6"><enum>(3)</enum><text>be able to—</text>
<subparagraph id="ID7033b7a9c04a4cdfbd8f5969e44d9c1d"><enum>(A)</enum><text>analyze large data sets
for unusual or suspicious patterns or anomalies or contain other factors that
are linked to the occurrence of waste, fraud, or abuse;</text>
</subparagraph><subparagraph id="IDa2fef99e3c7e41128c8d1d70d28feb0f"><enum>(B)</enum><text>undertake such analysis
before payment is made; and</text>
</subparagraph><subparagraph id="ID8368d6f208b548cda6b0e10ac046fb86"><enum>(C)</enum><text>prioritize such
identified transactions for additional review before payment is made in terms
of the likelihood of potential waste, fraud, and abuse to more efficiently
utilize investigative resources;</text>
</subparagraph></paragraph><paragraph id="IDff8c1bdea92645d9a3f9f9a8fce9314c"><enum>(4)</enum><text>capture outcome
information on adjudicated claims for reimbursement to allow for refinement and
enhancement of the predictive analytics technologies on the basis of such
outcome information, including post-payment information about the eventual
status of a claim; and</text>
</paragraph><paragraph id="ID7ca6d4a0ccd54f6a968d7e047536235d"><enum>(5)</enum><text>prevent the payment of
claims for reimbursement that have been identified as potentially wasteful,
fraudulent, or abusive until such time as the claims have been verified as
valid.</text>
</paragraph></subsection><subsection id="IDc88fef9cacac4e87a05bbd872724b26e"><enum>(c)</enum><header>Implementation
requirements</header>
<paragraph id="id4F41E81C604743399EC73DEA3B01CA79"><enum>(1)</enum><header>Request for
proposals</header><text>Not later than January 1, 2011, the Secretary shall
issue a request for proposals to carry out this section during the first year
of implementation. To the extent the Secretary determines appropriate—</text>
<subparagraph id="id599B0EF67596492AA28EDA6249AD0902"><enum>(A)</enum><text>the initial request for
proposals may include subsequent implementation years; and</text>
</subparagraph><subparagraph id="id017DCF1964C74530816528FC20A7D8AF"><enum>(B)</enum><text>the Secretary may issue
additional requests for proposals with respect to subsequent implementation
years.</text>
</subparagraph></paragraph><paragraph id="id18ABFF1BFFD545E982CCF141779CC3DF"><enum>(2)</enum><header>First implementation
year</header><text>The initial request for proposals issued under paragraph (1)
shall require the contractors selected to commence using predictive analytics
technologies on July 1, 2011, in the 10 States identified by the Secretary as
having the highest risk of waste, fraud, or abuse in the Medicare
fee-for-service program.</text>
</paragraph><paragraph id="id49E790A21C30419AB2047BE92E26F39D"><enum>(3)</enum><header>Second implementation
year</header><text>Based on the results of the report and recommendation
required under subsection (e)(1)(B), the Secretary shall expand the use of
predictive analytics technologies on October 1, 2012, to apply to an additional
10 States identified by the Secretary as having the highest risk of waste,
fraud, or abuse in the Medicare fee-for-service program, after the States
identified under paragraph (2).</text>
</paragraph><paragraph id="id3ADD73D0422549279026D61BFA31596D"><enum>(4)</enum><header>Third implementation
year</header><text>Based on the results of the report and recommendation
required under subsection (e)(2), the Secretary shall expand the use of
predictive analytics technologies on January 1, 2014, to apply to the Medicare
fee-for-service program in any State not identified under paragraph (2) or (3)
and the commonwealths and territories.</text>
</paragraph><paragraph id="id86301ED08D0B4D8A92741CF43142D1AA"><enum>(5)</enum><header>Fourth implementation
year</header><text>Based on the results of the report and recommendation
required under subsection (e)(3), the Secretary shall expand the use of
predictive analytics technologies, beginning April 1, 2015, to apply to
Medicaid and CHIP. To the extent the Secretary determines appropriate, such
expansion may be made on a phased-in basis.</text>
</paragraph><paragraph id="idA0C19072828645F09AB4D9C58041937D"><enum>(6)</enum><header>Option for refinement
and evaluation</header><text>If, with respect to the first, second, or third
implementation year, the Inspector General of the Department of Health and
Human Services certifies as part of the report required under subsection (e)
for that year no or only nominal actual savings to the Medicare fee-for-service
program, the Secretary may impose a moratorium, not to exceed 12 months, on the
expansion of the use of predictive analytics technologies under this section
for the succeeding year in order to refine the use of predictive analytics
technologies to achieve more than nominal savings before further expansion. If
a moratorium is imposed in accordance with this paragraph, the implementation
dates applicable for the succeeding year or years shall be adjusted to reflect
the length of the moratorium period.</text>
</paragraph></subsection><subsection id="ID6f0a325abd4348a4acb11e5c7665d7b6"><enum>(d)</enum><header>Contractor selection,
qualifications, and data access requirements</header>
<paragraph id="IDa5473a10478643a2a411c33bc4195537"><enum>(1)</enum><header>Selection</header>
<subparagraph id="ID80183f9d278942798dbdf1fc9d1c6778"><enum>(A)</enum><header>In
general</header><text>The Secretary shall select contractors to carry out this
section using competitive procedures as provided for in the Federal Acquisition
Regulation.</text>
</subparagraph><subparagraph id="ID4477b8783f114045ba21655d29b25137"><enum>(B)</enum><header>Number of
contractors</header><text>The Secretary shall select at least 2 contractors to
carry out this section with respect to any year.</text>
</subparagraph></paragraph><paragraph id="ID76336fecbba44238828d79e67dc4e15a"><enum>(2)</enum><header>Qualifications</header>
<subparagraph id="IDf46b0e203b444ff09ce98860cfe5b4ce"><enum>(A)</enum><header>In
general</header><text>The Secretary shall enter into a contract under this
section with an entity only if the entity—</text>
<clause id="ID281102555ce647c2a56e9d6cbb6873b0"><enum>(i)</enum><text>has leadership and staff
who—</text>
<subclause id="ID6944b03976e6410890360af21aa7e3ef"><enum>(I)</enum><text>have the appropriate
clinical knowledge of, and experience with, the payment rules and regulations
under the Medicare fee-for-service program; and</text>
</subclause><subclause id="IDd4ce46fc46564e119f172c81f3d63166"><enum>(II)</enum><text>have direct management
experience and proficiency utilizing predictive analytics technologies
necessary to carry out the requirements under subsection (b); or</text>
</subclause></clause><clause id="ID32d6a2884c9f4ccab5fe1e9ce23004b9"><enum>(ii)</enum><text>has a contract, or will
enter into a contract, with another entity that has leadership and staff
meeting the criteria described in clause (i).</text>
</clause></subparagraph><subparagraph id="IDf146c8898f9b47c59b8914b66c2fa9b4"><enum>(B)</enum><header>Conflict of
interest</header><text>The Secretary may only enter into a contract under this
section with an entity to the extent that the entity complies with such
conflict of interest standards as are generally applicable to Federal
acquisition and procurement.</text>
</subparagraph></paragraph><paragraph commented="no" id="ID8ff772312cfa4b85b00e35404546ffd8"><enum>(3)</enum><header>Data
access</header><text>The Secretary shall provide entities with a contract under
this section with appropriate access to data necessary for the entity to use
predictive analytics technologies in accordance with the contract.</text>
</paragraph></subsection><subsection id="ID7b662c558122484fb6742a8e5898a1c1"><enum>(e)</enum><header>Reporting
requirements</header>
<paragraph id="IDd4351e2aa25d48a18858101ac4c98490"><enum>(1)</enum><header>First implementation
year report</header><text>Not later than 3 months after the completion of the
first implementation year under this section, the Secretary shall submit to the
appropriate committees of Congress and make available to the public a report
that includes the following:</text>
<subparagraph id="ID8c073136b6ce4f5aaee2126e1dd3fdd4"><enum>(A)</enum><text>A description of the
implementation of the use of predictive analytics technologies during the
year.</text>
</subparagraph><subparagraph id="IDe9f9a3284cb4410daba2bbbb7477871c"><enum>(B)</enum><text>A certification of the
Inspector General of the Department of Health and Human Services that—</text>
<clause id="id8573433530D94EA3B1747368111809D8"><enum>(i)</enum><text>specifies the actual and
projected savings to the Medicare fee-for-service program as a result of the
use of predictive analytics technologies, including estimates of the amounts of
such savings with respect to both improper payments recovered and improper
payments avoided;</text>
</clause><clause id="idA67EE68DCC204A70AE0DF4C9FED32DBE"><enum>(ii)</enum><text>the actual and projected
savings to the Medicare fee-for-service program as a result of such use of
predictive analytics technologies relative to the return on investment for the
use of such technologies and in comparison to other strategies or technologies
used to prevent and detect fraud, waste, and abuse in the Medicare
fee-for-service program; and</text>
</clause><clause id="id31A3473F7A7D4AF9A3A959C02A3A2F80"><enum>(iii)</enum><text>includes
recommendations regarding—</text>
<subclause id="id793720C7B8F84348BE11246A035CC773"><enum>(I)</enum><text>whether the Secretary
should continue to use predictive analytics technologies;</text>
</subclause><subclause id="idAD2DB4A5B0F543368965811740D0A468"><enum>(II)</enum><text>whether the use of such
technologies should be expanded in accordance with the requirements of
subsection (c); and</text>
</subclause><subclause id="id32FB78C9BF584B499FC155DE8F5D6C30"><enum>(III)</enum><text>any modifications or
refinements that should be made to increase the amount of actual or projected
savings or mitigate any adverse impact on Medicare beneficiaries or
providers.</text>
</subclause></clause></subparagraph><subparagraph id="idCF42D4E8CF544B0C8C7C1D6FBB67A0EF"><enum>(C)</enum><text>An analysis of the extent
to which the use of predictive analytics technologies successfully prevented
and detected waste, fraud, or abuse in the Medicare fee-for-service
program.</text>
</subparagraph><subparagraph id="id8DD705DE8B3C4BD695EA5BA4E64FE6FA"><enum>(D)</enum><text>A review of whether the
predictive analytics technologies affected access to, or the quality of, items
and services furnished to Medicare beneficiaries.</text>
</subparagraph><subparagraph id="ID4657faf72a9c49cdac0be05c44ef4070"><enum>(E)</enum><text>A review of what effect,
if any, the use of predictive analytics technologies had on Medicare
providers.</text>
</subparagraph><subparagraph id="id59BDED4E0D5B432DBF1AB3D12097BDA2"><enum>(F)</enum><text>Any other items
determined appropriate by the Secretary.</text>
</subparagraph></paragraph><paragraph id="id9632C5FA4C6147EDB8C5E94B951BF146"><enum>(2)</enum><header>Second year
implementation report</header><text>Not later than 3 months after the
completion of the second implementation year under this section, the Secretary
shall submit to the appropriate committees of Congress and make available to
the public a report that includes, with respect to such year, the items
required under paragraph (1) as well as any other additional items determined
appropriate by the Secretary with respect to the report for such year.</text>
</paragraph><paragraph id="idC2D32E98E7A74D11A5157F016389C5C4"><enum>(3)</enum><header>Third year
implementation report</header><text>Not later than 3 months after the
completion of the third implementation year under this section, the Secretary
shall submit to the appropriate committees of Congress, and make available to
the public, a report that includes with respect to such year, the items
required under paragraph (1), as well as any other additional items determined
appropriate by the Secretary with respect to the report for such year, and the
following:</text>
<subparagraph id="IDd62420dbd4c54518adf00939ebb46c36"><enum>(A)</enum><text>An analysis of the
cost-effectiveness and feasibility of expanding the use of predictive analytics
technologies to Medicaid and CHIP.</text>
</subparagraph><subparagraph id="ID89593b4c82bf4b299ec2da15f23b125a"><enum>(B)</enum><text>An analysis of the
effect, if any, the application of predictive analytics technologies to claims
under Medicaid and CHIP would have on States and the commonwealths and
territories.</text>
</subparagraph><subparagraph id="IDdacec77f5481440b89939acf316df682"><enum>(C)</enum><text>Recommendations regarding
the extent to which technical assistance may be necessary to expand the
application of predictive analytics technologies to claims under Medicaid and
CHIP, and the type of any such assistance.</text>
</subparagraph></paragraph></subsection><subsection id="ID5ad6563f25274c87bbd6bac120e32f4a"><enum>(f)</enum><header>Independent evaluation
and report</header>
<paragraph id="id378C950E96404C28AC1D41DAA1CDA963"><enum>(1)</enum><header>Evaluation</header><text>Upon
completion of the first year in which predictive analytics technologies are
used with respect to claims under Medicaid and CHIP, the Secretary shall, by
grant, contract, or interagency agreement, conduct an independent evaluation of
the use of predictive analytics technologies under the Medicare fee-for-service
program and Medicaid and CHIP. The evaluation shall include an analysis with
respect to each such program of the items required for the third year
implementation report under subsection (e)(3).</text>
</paragraph><paragraph id="idB04FE91339AB4F89B83525134C410F02"><enum>(2)</enum><header>Report</header><text>Not
later than 18 months after the evaluation required under paragraph (1) is
initiated, the Secretary shall submit a report to Congress on the evaluation
that shall include the results of the evaluation, the Secretary's response to
such results and, to the extent the Secretary determines appropriate,
recommendations for legislation or administrative actions.</text>
</paragraph></subsection><subsection id="ID9a872465878e4da4b660154dad91a75e"><enum>(g)</enum><header>Waiver
authority</header><text>The Secretary may waive such provisions of titles XI,
XVIII, XIX, and XXI of the Social Security Act, including applicable prompt
payment requirements under titles XVIII and XIX of such Act, as the Secretary
determines to be appropriate to carry out this section.</text>
</subsection><subsection commented="no" id="id1E2080F97C8D4E16AC64890951680007"><enum>(h)</enum><header>Funding</header>
<paragraph commented="no" id="id66B3CB9174B54332B3BD29D8A3FC5B80"><enum>(1)</enum><header>Appropriation</header><text>Out
of any funds in the Treasury not otherwise appropriated, there is appropriated
to the Secretary to carry out this section, $100,000,000 for the period
beginning January 1, 2011, to remain available until expended.</text>
</paragraph><paragraph id="id98EAC0DD5AE54700994B6B6B20833F7A"><enum>(2)</enum><header>Reservations</header>
<subparagraph id="idB4CECF5019924146AC2493B0FE17D3B3"><enum>(A)</enum><header>Independent
evaluation</header><text>The Secretary shall reserve not more than 5 percent of
the funds appropriated under paragraph (1) for purposes of conducting the
independent evaluation required under subsection (f).</text>
</subparagraph><subparagraph id="id210C7ACE6735457698D7C06AF9C3BBA0"><enum>(B)</enum><header>Application to medicaid
and chip</header><text>The Secretary shall reserve such portion of the funds
appropriated under paragraph (1) as the Secretary determines appropriate for
purposes of providing assistance to States for administrative expenses in the
event of the expansion of predictive analytics technologies to claims under
Medicaid and CHIP.</text>
</subparagraph></paragraph></subsection><subsection id="idCE1385CB027B47568DB1B831A39BE5FD"><enum>(i)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="id5A0B7EFD35704183A723C98ADC831B38"><enum>(1)</enum><header>Commonwealths and
territories</header><text>The term <term>commonwealth and territories</term>
includes the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana Islands, and any other
territory or possession of the United States in which the Medicare
fee-for-service program, Medicaid, or CHIP operates.</text>
</paragraph><paragraph id="id00088AB6A07848B3B4A821C40AB4AF56"><enum>(2)</enum><header>CHIP</header><text>The
term <term>CHIP</term> means the Children's Health Insurance Program
established under title XXI of the Social Security Act (42 U.S.C. 1397aa et
seq.).</text>
</paragraph><paragraph id="id0E826B47D9EA4E3E992D271735C656B6"><enum>(3)</enum><header>Medicaid</header><text>The
term <term>Medicaid</term> means the program to provide grants to States for
medical assistance programs established under title XIX of the Social Security
Act (42 U.S.C. 1396 et seq.).</text>
</paragraph><paragraph id="id37FB68E49F4B491CB61F1B0A34FF054F"><enum>(4)</enum><header>Medicare
beneficiary</header><text>The term <term>Medicare beneficiary</term> means an
individual enrolled in the Medicare fee-for-service program.</text>
</paragraph><paragraph id="idE07277F4E9374BE380F5A81A023B68A7"><enum>(5)</enum><header>Medicare
fee-for-service program</header><text>The term <quote>Medicare fee-for-service
program</quote> means the original medicare fee-for-service program under parts
A and B of title XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.).</text>
</paragraph><paragraph id="id04E288F912BE4F51B5F9FBC5D52D8A26"><enum>(6)</enum><header>Medicare
provider</header><text>The term <quote>Medicare provider</quote> means a
provider of services (as defined in subsection (u) of section 1861 of the
Social Security Act (42 U.S.C. 1395x)) and a supplier (as defined in subsection
(d) of such section).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBF9CCCB6092A48438261F54047D541D5"><enum>(7)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Health and Human Services,
acting through the Administrator of the Centers for Medicare & Medicaid
Services.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEDB41B6768494AB8A6CCDF5A4421CA23"><enum>(8)</enum><header>State</header><text>The
term <quote>State</quote> means each of the 50 States and the District of
Columbia.</text>
</paragraph></subsection></section></part></subtitle><enum>V</enum><header>Budgetary
provisions</header>
<section id="id13369A979D864BFD90B274ABA6A1071A"><enum>5001.</enum><header>Determination of
budgetary effects</header><text display-inline="no-display-inline">The
budgetary effects of this Act, for the purpose of complying with the Statutory
Pay-As-You-Go-Act of 2010, shall be determined by reference to the latest
statement titled <quote>Budgetary Effects of PAYGO Legislation</quote> for this
Act, submitted for printing in the Congressional Record by the Chairman of the
Senate Budget Committee, provided that such statement has been submitted prior
to the vote on passage.</text>
</section>
Secretary