[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5297 Placed on Calendar Senate (PCS)]
Calendar No. 435
111th CONGRESS
2d Session
H. R. 5297
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 18, 2010
Received and read the first time
June 21, 2010
Read the second time and placed on the calendar
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This title may be cited as the ``Small Business
Jobs and Credit Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--SMALL BUSINESS LENDING FUND
Sec. 101. Purpose.
Sec. 102. Definitions.
Sec. 103. Small Business Lending Fund.
Sec. 104. Additional authorities of the Secretary.
Sec. 105. Considerations.
Sec. 106. Reports.
Sec. 107. Oversight and audits.
Sec. 108. Credit reform; Funding.
Sec. 109. Termination and continuation of authorities.
Sec. 110. Preservation of authority.
Sec. 111. Assurances.
Sec. 112. Study and report with respect to women-owned, veteran-owned,
and minority-owned businesses.
Sec. 113. Temporary amortization authority.
Sec. 114. Sense of Congress.
TITLE II--STATE SMALL BUSINESS CREDIT INITIATIVE
Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Federal funds allocated to States.
Sec. 204. Approving States for participation.
Sec. 205. Approving State capital access programs.
Sec. 206. Approving collateral support and other innovative credit
access and guarantee initiatives for small
businesses and manufacturers.
Sec. 207. Reports.
Sec. 208. Remedies for State program termination or failures.
Sec. 209. Implementation and administration.
Sec. 210. Regulations.
Sec. 211. Oversight and audits.
TITLE III--SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM
Sec. 301. Short title.
Sec. 302. Small business early-stage investment program.
Sec. 303. Regulations.
Sec. 304. Prohibitions on earmarks.
TITLE IV--MISCELLANEOUS
Sec. 401. Budgetary effects.
TITLE V--TAX PROVISIONS
Sec. 500. Short title; etc.
Subtitle A--Small Business Tax Incentives
Part 1--General Provisions
Sec. 501. Temporary exclusion of 100 percent of gain on certain small
business stock.
Part 2--Limitations and Reporting on Certain Penalties
Sec. 511. Limitation on penalty for failure to disclose certain
information.
Sec. 512. Annual reports on penalties and certain other enforcement
actions.
Part 3--Other Provisions
Sec. 521. Increase in amount allowed as deduction for start-up
expenditures.
Sec. 522. Nonrecourse small business investment company loans from the
Small Business Administration treated as
amounts at risk.
Sec. 523. Benefits under the Small Business Borrower Assistance Program
excluded from gross income.
Subtitle B--Revenue Provisions
Sec. 531. Required minimum 10-year term, etc., for grantor retained
annuity trusts.
Sec. 532. Crude tall oil ineligible for cellulosic biofuel producer
credit.
Sec. 533. Time for payment of corporate estimated taxes.
TITLE VI--PLAIN WRITING ACT
Sec. 601. Short title.
Sec. 602. Purpose.
Sec. 603. Definitions.
Sec. 604. Responsibilities of Federal agencies.
Sec. 605. Reports to Congress.
TITLE VII--SENSE OF CONGRESS ON AGRICULTURE AND FARMING SMALL BUSINESS
LOANS
Sec. 701. Sense of Congress.
TITLE VIII--SMALL BUSINESS BORROWER ASSISTANCE PROGRAM
Sec. 801. Short title.
Sec. 802. Small Business Borrower Assistance Program.
TITLE I--SMALL BUSINESS LENDING FUND
SEC. 101. PURPOSE.
The purpose of this title 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.
SEC. 102. DEFINITIONS.
For purposes of this title:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) 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
(B) 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.
(2) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the meaning given
such term under section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(q)).
(3) Bank holding company.--The term ``bank holding
company'' 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)).
(4) Call report.--The term ``call report'' means--
(A) 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;
(B) the Office of Thrift Supervision Thrift
Financial Report;
(C) 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);
(D) standard reports of Condition and Income
submitted by Community Development Financial
Institution loan funds to the Community Development
Financial Institutions Fund; and
(E) with respect to an eligible institution for
which no report exists that is described under
subparagraph (A), (B), or (C), such other report or set
of information as the Secretary, in consultation with
the Administrator of the Small Business Administration,
may prescribe.
(5) CDCI.--The term ``CDCI'' 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.
(6) CDCI investment.--The term ``CDCI investment'' 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.
(7) CPP.--The term ``CPP'' means the Capital Purchase
Program created by the Secretary under the Troubled Asset
Relief Program established by the Emergency Economic
Stabilization Act of 2008.
(8) CPP investment.--The term ``CPP investment'' 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.
(9) Eligible institution.--The term ``eligible
institution'' means--
(A) any insured depository institution, which--
(i) is not controlled by a bank holding
company or savings and loan holding company
that is also an eligible institution;
(ii) has total assets of equal to or less
than $10,000,000,000, as reported in the call
report as of the end of the fourth quarter of
calendar year 2009; and
(iii) 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;
(B) any bank holding company which has total
consolidated assets of equal to or less than
$10,000,000,000;
(C) any savings and loan holding company which has
total consolidated assets of equal to or less than
$10,000,000,000;
(D) any community development financial institution
loan fund which has total assets of equal to or less
than $10,000,000,000; and
(E) any small business lending company that has
total assets of equal to or less than $10,000,000,000.
(10) Fund.--The term ``Fund'' means the Small Business
Lending Fund established by section 4(a)(1) of this title.
(11) Insured depository institution.--The term ``insured
depository institution'' has the meaning given such term under
section 3(c)(2) of the Federal Deposit Insurance Act (12 U.S.C.
1813(c)(2)).
(12) Program.--The term ``Program'' means the Small
Business Lending Fund Program authorized by section 4(a)(2) of
this title.
(13) Savings and loan holding company.--The term ``savings
and loan holding company'' 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)).
(14) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(15) Small business lending.--
(A) In general.--The term ``small business
lending'' means small business lending, as defined by
and reported in an eligible institution's quarterly
call report, where each loan comprising such lending is
made to a small business and is one of the following
types:
(i) Commercial and industrial loans.
(ii) Owner-occupied nonfarm, nonresidential
real estate loans.
(iii) Loans to finance agricultural
production and other loans to farmers.
(iv) Loans secured by farmland.
(v) Nonowner-occupied commercial real
estate loans.
(vi) Construction, land development, and
other land loans.--
(I) In general.--Loans secured by
real estate--
(aa) that are made to
finance--
(AA) land
development that is
preparatory to erecting
new structures,
including improving
land, laying sewers,
and laying water pipes;
or
(BB) the on-site
construction of
industrial, commercial,
residential, or farm
buildings;
(bb) that is vacant land,
except land known to be used or
usable for agricultural
purposes, such as crop and
livestock production;
(cc) the proceeds of which
are to be used to acquire and
improve developed or
undeveloped property; or
(dd) that are made under
title I or title X of the
National Housing Act.
(II) Construction industry
requirement.--Subclause (I) shall only
apply to loans that are extended to
small business concerns in the
construction industry, as such term is
defined by the Secretary in
consultation with the Administrator of
the Small Business Administration.
(III) Construction defined.--For
purposes of this clause, the term
``construction'' includes the
construction of new structures,
additions or alterations to existing
structures, and the demolition of
existing structures to make way for new
structures.
(B) Treatment of holding companies.--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.
(16) Minority-owned and women-owned business.--The terms
``minority-owned business'' and ``women-owned business'' shall
have the meaning given the terms ``minority-owned business''
and ``women's business'', respectively, under section 21A(r)(4)
of the Federal Home Loan Bank Act (12 U.S.C. 1441A(r)(4)).
(17) CDFI; community development financial institution.--
The terms ``CDFI'' and ``community development financial
institution'' have the meaning given the term ``community
development financial institution'' under the Riegle Community
Development and Regulatory Improvement Act of 1994.
(18) CDLF; community development loan fund.--The terms
``CDLF'' and ``community development loan fund'' mean any
entity that--
(A) is certified by the Department of the Treasury
as a community development financial institution loan
fund;
(B) is exempt from taxation under the Internal
Revenue Code of 1986; and
(C) has assets under $10,000,000,000 as of the
fourth quarter of calendar year 2009.
(19) Small business.--The term ``small business'' has the
meaning given the term ``small business concern'' under section
3 of the Small Business Act (15 U.S.C. 632).
(20) Small business lending company.--The term ``small
business lending company'' has the meaning given such term
under section 3(r)(1) of the Small Business Act (15 U.S.C.
632(r)(1)).
(21) Veteran-owned business.--
(A) The term ``veteran-owned business'' means a
business--
(i) more than 50 percent of the ownership
or control of which is held by 1 or more
veterans;
(ii) more than 50 percent of the net profit
or loss of which accrues to 1 or more veterans;
and
(iii) a significant percentage of senior
management positions of which are held by
veterans.
(B) For purposes of this paragraph, the term
``veteran'' has the meaning given such term in section
101(2) of title 38, United States Code.
SEC. 103. SMALL BUSINESS LENDING FUND.
(a) Fund and Program.--
(1) Fund established.--There is established in the Treasury
of the United States a fund to be known as the ``Small Business
Lending Fund'', which shall be administered by the Secretary.
(2) Programs authorized.--The Secretary is authorized to
establish the Small Business Lending Fund Program for using the
Fund consistent with this title.
(b) Use of Fund.--
(1) In general.--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 title. For
purposes of this paragraph and with respect to an eligible
institution, the term ``other financial instruments'' 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.
(2) Maximum purchase limit.--The aggregate amount of
purchases (and commitments to purchase) made pursuant to
paragraph (1) may not exceed $30,000,000,000.
(3) Proceeds used to pay down public debt.--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.
(4) Limitation on purchases from cdlfs.--
(A) In general.--Not more than 1 percent of the
value of purchases made by the Secretary in carrying
out the Program may be used to make purchases from
community development loan funds.
(B) Eligibility standards.--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 may include net asset ratio to total
assets, ratio of loan loss reserves to loans and leases
90 days or more delinquent (including loans sold with
full recourse), positive net income measured on a 3-
year rolling average, operating liquidity ratio, ratio
of loans and leases 90 days or more delinquent
(including loans sold with full recourse) to total
equity plus loan loss reserves or any other measures
deemed appropriate. In addition, CDLFs participating in
the Program shall submit audited financial statements
to the Secretary, have a clean audit opinion, and have
at least three years of operating experience.
(c) Credits to the Fund.--There shall be credited to the Fund
amounts made available pursuant to section 9, to the extent provided by
appropriations Acts.
(d) Terms.--
(1) Application.--
(A) Institutions with assets of $1,000,000,000 or
less.--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.
(B) Institutions with assets of more than
$1,000,000,000 and less than $10,000,000,000.--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.
(C) Treatment of holding companies.--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.
(D) Treatment of applicants that are institutions
controlled by holding companies.--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 paragraph, the term
``control'' 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 paragraph, the
term ``control'' 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)).
(E) Requirement to provide a small business lending
plan.--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. This plan
shall be confidential supervisory information.
(F) Treatment of applicants that are community
development loan funds.--Eligible institutions that are
community development loan funds may apply to receive a
capital investment from the Fund in an amount not
exceeding 10 percent of total assets, as reported in
the call report immediately preceding the date of
application.
(G) Election to include other nonfarm,
nonresidential real estate loans in amount of small
business lending.--At the time that an applicant
submits an application to the Secretary for a capital
investment under the Program, the applicant may notify
the Secretary that it elects to have included in the
determination of the amount of its small business
lending, for purposes of the computations made under
paragraph (4), the amount of lending reported as other
nonfarm, nonresidential real estate loans in its
quarterly call report, but for purposes of this
subparagraph, other nonfarm, nonresidential real estate
loans shall not include a loan having an original
amount greater than $10,000,000. If an applicant makes
the election under this subparagraph, the amount of
lending reported as other nonfarm, nonresidential real
estate loans shall be included in the determination of
the amount of its small business lending for purposes
of the computations made under paragraph (4).
(2) Consultation with regulators.--For each eligible
institution that applies to receive a capital investment under
the Program, the Secretary shall--
(A) consult with the appropriate Federal banking
agency or, in the case of an eligible institution that
is a non-depository 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;
(B) 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
(C) in the case of a community development
financial institution loan fund, consult with the
Community Development Financial Institution Fund.
(3) Ineligibility of institutions on fdic problem bank
list.--
(A) In general.--An eligible institution may not
receive any capital investment under the Program if--
(i) such institution is on the FDIC problem
bank list; or
(ii) such institution has been removed from
the FDIC problem bank list for less than 90
days.
(B) Construction.--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.
(C) FDIC problem bank list defined.--For purposes
of this subparagraph, the term ``FDIC problem bank
list'' means the list of institutions with 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.
(4) Incentives to lend.--
(A) Requirements on preferred stock and other
financial instruments.--Any preferred stock or other
financial instrument issued to Treasury by an eligible
institution receiving a capital investment under the
Program shall provide that--
(i) the rate at which dividends or interest
are payable shall be 5 percent per annum
initially;
(ii) 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 enactment of this
title, minus adjustments from each quarterly
balance in respect of--
(I) net loan charge offs with
respect to small business lending; and
(II) 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
(iii) 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--
(I) if the amount of small business
lending has increased by less than 2.5
percent, the dividend or interest rate
shall be 5 percent;
(II) 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;
(III) 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;
(IV) 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
(V) if the amount of small business
lending has increased by 10 percent or
greater, the dividend or interest rate
shall be 1 percent.
(B) Basis of initial rate.--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.
(C) Timing of rate adjustments.--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.
(D) Rate following initial 2-year period.--
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\1/2\-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\1/2\-year period that begins on
the date of the investment.
(E) Rate following initial 4\1/2\-year period.--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\1/2\-year period that begins on the date of the
capital investment under the Program.
(F) Limitation on rate reductions with respect to
certain amount.--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.
(G) Rate adjustments for s corporation.--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
``S corporation'' has the same meaning as in section
1361(a) of the Internal Revenue Code of 1986.
(H) Repayment deadline.--The capital investment
received by an eligible institution under the Program
shall be evidenced by preferred stock or other
financial instrument that--
(i) includes, as a term and condition, that
the capital investment will--
(I) be repaid not later than the
end of the 10-year period beginning on
the date of the capital investment
under the Program; or
(II) 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
(ii) 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).
(I) Requirements on financial instruments issued by
a community development financial institution loan
fund.--Any equity equivalent capital issued to the
Treasury by a Community Development Financial
Institution 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.
(J) Incentives contingent on an increase in the
number of loans made.--For any quarter during the first
4\1/2\-year period following the date on which an
eligible institution receives a capital investment
under the Program, other than the first such quarter,
in which the institution's change in the amount of
small business lending relative to the baseline is
positive, if the number of loans made by the
institution does not increase by 2.5 percent for each
2.5 percent increase of small business lending, then
the rate at which dividends and interest shall be
payable during the following quarter on preferred stock
or other financial instruments issued to the Treasury
by the eligible institution shall be--
(i) 5 percent, if such quarter is within
the 2-year period following the date on which
the eligible institution receives the capital
investment under the Program; or
(ii) 7 percent, if such quarter is after
such 2-year period.
(K) Alternative computation.--An eligible
institution may choose to compute their small business
lending amount by computing the amount of small
business lending, as if the definition of such term did
not require that the loans comprising such lending be
made to small business. Any eligible institution
choosing to compute their small business lending in
this manner shall certify that all lending included by
the institution for purposes of computing the increase
in lending under this paragraph was made to small
businesses.
(5) Additional incentives to repay.--The Secretary may, by
regulation or guidance issued under section 104(8), establish
repayment incentives in addition to the incentive in paragraph
(4)(E) that will apply to new capital investments in a manner
that the Secretary determines to be consistent with the
purposes of this title.
(6) Capital purchase program refinance.--
(A) In general.--The Secretary shall, in a manner
that the Secretary determines to be consistent with the
purposes of this title, 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.
(B) Prohibition on participation by non-paying cpp
participants.--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.
(7) Outreach to minorities, women, and veterans.--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--
(A) represent or work within or are members of
minority communities;
(B) represent or work with or are women; and
(C) represent or work with or are veterans.
(8) Additional terms.--The Secretary may, by regulation or
guidance issued under section 5(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 title.
(9) Minimum underwriting standards.--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. In the case of a community development financial
institution loan fund, the Community Development Financial
Institutions Fund shall within 60 days issue regulations
defining minimum underwriting standards that must be used for
loans made by the eligible institution using such funds.
(10) Reporting.--Each eligible institution receiving a
capital investment under the Program shall issue a quarterly
report to the Secretary detailing the percentage of new loans
to small businesses the institution makes that are--
(A) guaranteed by the Small Business
Administration;
(B) made to Small Business Investment Companies;
(C) other loans made to small business concerns (as
defined under the Small Business Act), if the internal
reporting of the concern distinguishes the size of
businesses to which loans are made; and
(D) other loans made to entities that the internal
reporting of the concern classifies as a small
business.
(e) Notification to Customers.--Any eligible institution receiving
funds under the Program shall--
(1) disclose on every applicable loan transaction that the
loan is being made possible by the Program; and
(2) if such institution has an established internet
website, such institution shall make available on its internet
website--
(A) the written reports made by the Secretary
pursuant to paragraphs (1) and (2) of section 7; and
(B) a statement that the institution, as a
participant in the Program, is seeking to make small
business loans to qualified borrowers and may not
discriminate on the basis of any factor prohibited
under the Equal Credit Opportunity Act, including the
race, color, religion, national origin, sex, marital
status, or age.
SEC. 104. ADDITIONAL AUTHORITIES OF THE SECRETARY.
The Secretary may take such actions as the Secretary deems
necessary to carry out the authorities in this title, including,
without limitation, the following:
(1) 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.
(2) 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 title 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 title, to perform reasonable duties
related to this title.
(3) 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 title.
(4) Subject to section 4(b)(3), the Secretary may manage
any assets purchased under this title, including revenues and
portfolio risks therefrom.
(5) 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 title, upon terms and conditions and at a price
determined by the Secretary.
(6) 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 title.
(7) 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.
(8) 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 title.
SEC. 105. CONSIDERATIONS.
In exercising the authorities granted in this title, the Secretary
shall take into consideration--
(1) increasing the availability of credit for small
businesses;
(2) 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;
(3) protecting and increasing American jobs;
(4) increasing the opportunity for small business
development in areas with high unemployment rates that exceed
the national average;
(5) ensuring that all eligible institutions may apply to
participate in the program established under this title,
without discrimination based on geography;
(6) providing transparency with respect to use of funds
provided under this title;
(7) minimizing the cost to taxpayers of exercising the
authorities;
(8) promoting and engaging in financial education to would-
be borrowers; and
(9) 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.
SEC. 106. REPORTS.
The Secretary shall provide to the appropriate committees of
Congress--
(1) 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 title;
(2) 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
(3) 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 detailing how eligible institutions
participating in the Program have used the funds such
institutions received under the Program.
SEC. 107. OVERSIGHT AND AUDITS.
(a) Inspector General Oversight.--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).
(b) Office of Small Business Lending Fund Program Oversight.--
(1) Establishment.--There is hereby established within the
Office of the Inspector General of the Department of the
Treasury a new office to be named the ``Office of Small
Business Lending Fund Program Oversight'' to provide oversight
of the Program.
(2) Leadership.--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.
(3) Reporting.--
(A) In general.--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.
(B) Recommendations.--With respect to any
deficiencies identified in a report under subparagraph
(A), the Secretary shall either--
(i) take actions to address such
deficiencies; or
(ii) certify to the appropriate committees
of Congress that no action is necessary or
appropriate.
(4) Coordination.--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.
(5) Termination.--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.
(6) Definitions.--For purposes of this subsection:
(A) Office.--The term ``Office'' means the Office
of Small Business Lending Fund Program Oversight
established under paragraph (1).
(B) Inspector general.--The term ``Inspector
General'' means the Inspector General of the Department
of the Treasury.
(c) GAO Audit.--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.
(d) Required Certifications.--
(1) Eligible institution certification.--Each eligible
institution that participate 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.
(2) Loan recipients.--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 title 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)).
(e) Prohibition on Pornography.--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.
SEC. 108. CREDIT REFORM; FUNDING.
(a) Credit Reform.--The cost of purchases of preferred stock and
other financial instruments made as capital investments under this
title shall be determined as provided under the Federal Credit Reform
Act of 1990 (2 U.S.C. 661 et seq.).
(b) Funds Made Available.--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.
SEC. 109. TERMINATION AND CONTINUATION OF AUTHORITIES.
(a) Termination of Investment Authority.--The authority to make
capital investments in eligible institutions, including commitments to
purchase preferred stock or other instruments, provided under this
title shall terminate 1 year after the date of enactment of this title.
(b) Continuation of Other Authorities.--The authorities of the
Secretary in section 104 shall not be limited by the termination date
in subsection (a).
SEC. 110. PRESERVATION OF AUTHORITY.
Nothing in this title may be construed to limit the authority of
the Secretary under any other provision of law.
SEC. 111. ASSURANCES.
(a) Small Business Lending Fund Separate From TARP.--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.
(b) Change in Law.--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.
SEC. 112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, VETERAN-OWNED,
AND MINORITY-OWNED BUSINESSES.
(a) Study.--The Secretary shall conduct a study to determine the
number of women-owned businesses, veteran-owned businesses, and
minority-owned businesses that receive assistance as a result of the
Program (including determining the percentage of the total number of
all businesses that receive assistance that such number represents),
including--
(1) efforts, including technical assistance and outreach
that institutions have employed under the Program to provide
loans to minority-, veteran-, and women-owned small businesses;
(2) loan applications received;
(3) loan applications approved; and
(4) and any other relevant data related to such
transactions to promote the purposes of the Program as the
Secretary may require.
(b) Report.--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.
(c) Information Provided to the Secretary.--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.
SEC. 113. TEMPORARY AMORTIZATION AUTHORITY.
(a) Purpose.--The purpose this section is to address the ongoing
effects of the financial crisis on small businesses by providing
temporary authority to amortize losses or write-downs in order to
increase the availability of credit for small businesses.
(b) In General.--For purposes of capital calculation under the
Financial Institutions Examination Council's Consolidated Reports of
Condition, an eligible institution may choose to amortize any loss or
write-down, on a quarterly straight line basis over a period determined
under subsection (c), beginning with the month in which such loss or
write-down occurs, resulting from the application of FASB Statement 114
or 144 to--
(1) other real estate owned (as defined under section 34.81
of title 12, Code of Federal Regulation), or
(2) an impared loan secured by real estate,
provided that the institution discloses the difference in the amount of
the institution's capital, when calculated taking into account the
temporary amortization, from the amount of the institution's capital
when calculated without taking into account the temporary amortization
on the Financial Institutions Examination Council's Consolidated
Reports of Condition.
(c) Amortization Requirements.--During the initial 2-year period
referred to in section 4(d)(4), an eligible institution's amortization
period shall be adjusted to reflect the following schedule based on the
institution's change in the amount of small business lending relative
to the baseline:
(1) If the amount of small business lending has increased
by less than 2.5 percent, the amortization period shall be 6
years.
(2) If the amount of small business lending has increased
by 2.5 percent or greater, but by less than 5.0 percent, the
amortization period shall be 7 years.
(3) If the amount of small business lending has increased
by 5.0 percent or greater, but by less than 7.5 percent, the
amortization period shall be 8 years.
(4) If the amount of small business lending has increased
by 7.5 percent or greater, but by less than 10.0 percent, the
amortization period shall be 9 years.
(5) If the amount of small business lending has increased
by 10 percent or greater, the amortization period shall be 10
years.
(d) Minimum Underwriting Standards.--The appropriate Federal
banking agency for an eligible institution that chooses to amortize any
loss or write-down as permitted under subsection (b) shall, within 60
days of the date of the enactment of this title, issue regulations
defining minimum underwriting standards that must be used for loans
made by the eligible institution.
(e) Effective Date.--The provisions of this section shall apply to
loan origination that occurred on or after January 1, 2003, and before
January 1, 2008.
SEC. 114. SENSE OF CONGRESS.
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.
TITLE II--STATE SMALL BUSINESS CREDIT INITIATIVE
SEC. 201. SHORT TITLE.
This title may be cited as the ``State Small Business Credit
Initiative Act of 2010''.
SEC. 202. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency''--
(A) has the same meaning as in section 3 of the
Federal Deposit Insurance Act; and
(B) 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.
(2) Enrolled loan.--The term ``enrolled loan'' 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.
(3) Federal contribution.--The term ``Federal
contribution'' 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 203.
(4) Financial institution.--The term ``financial
institution'' 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.
(5) Participating state.--The term ``participating State''
means any State that has been approved for participation in the
Program under section 204.
(6) Program.--The term ``Program'' means the State Small
Business Credit Initiative established under this title.
(7) Qualifying loan or swap funding facility.--The term
``qualifying loan or swap funding facility'' means a
contractual arrangement between a participating State and a
private financial entity under which--
(A) the participating State delivers funds to the
entity as collateral;
(B) the entity provides funding from the
arrangement back to the participating State; and
(C) 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.
(8) Reserve fund.--The term ``reserve fund'' means a fund,
established by a participating State, dedicated to a particular
financial institution lender, for the purposes of--
(A) 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;
(B) depositing contributions made by the
participating State, including State contributions made
with Federal contributions; and
(C) covering losses on enrolled loans by disbursing
accumulated funds.
(9) State.--The term ``State'' means--
(A) a State of the United States;
(B) the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of Northern Mariana
Islands, Guam, American Samoa, and the United States
Virgin Islands;
(C) 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
(D) under the circumstances described in section
204(d), a municipality of a State of the United States
to which the Secretary has given a special permission
under section 204(d).
(10) State capital access program.--The term ``State
capital access program'' means a program of a State that--
(A) uses public resources to promote private access
to credit; and
(B) meets the eligibility criteria in section
205(c).
(11) State other credit support program.--The term ``State
other credit support program''--
(A) means a program of a State that--
(i) uses public resources to promote
private access to credit;
(ii) is not a State capital access program;
and
(iii) meets the eligibility criteria in
section 206(c); and
(B) includes, collateral support programs, loan
participation programs, State-run venture capital fund
programs, and credit guarantee programs.
(12) State program.--The term ``State program'' means a
State capital access program or a State other credit support
program.
(13) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 203. FEDERAL FUNDS ALLOCATED TO STATES.
(a) Program Established; Purpose.--There is established the State
Small Business Credit Initiative (hereinafter in this title referred to
as the ``Program''), 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.
(b) Allocation Formula.--
(1) In general.--Not later than 30 days after the date of
enactment of this title, 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--
(A) would receive under the 2009 allocation, as
determined under paragraph (2); and
(B) would receive under the 2010 allocation, as
determined under paragraph (3).
(2) 2009 allocation formula.--
(A) In general.--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.
(B) Minimum allocation.--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.
(C) 2008 state employment decline defined.--For
purposes of this paragraph and with respect to a State,
the term ``2008 State employment decline'' means the
excess (if any) of--
(i) the number of individuals employed in
such State determined for December 2007; over
(ii) the number of individuals employed in
such State determined for December 2008.
(3) 2010 allocation formula.--
(A) In general.--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.
(B) Minimum allocation.--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.
(C) 2009 unemployment number defined.--For purposes
of this paragraph and with respect to a State, the term
``2009 unemployment number'' means the number of
individuals within such State who were determined to be
unemployed by the Bureau of Labor Statistics for
December 2009.
(c) Availability of Allocated Amount.--The amount allocated by the
Secretary to each participating State under subsection (b) shall be
made available to the State as follows:
(1) Allocated amount generally to be available to state in
one-thirds.--
(A) In general.--The Secretary shall--
(i) apportion the participating State's
allocated amount into one-thirds;
(ii) transfer to the participating State
the first one-third when the Secretary approves
the State for participation under section 204;
and
(iii) transfer to the participating State
each successive one-third when the State has
certified to the Secretary that it has
expended, transferred, or obligated 80 percent
of the last transferred one-third for Federal
contributions to, or for the account of, State
programs.
(B) Authority to withhold pending audit.--The
Secretary may withhold the transfer of any successive
one-third pending results of a financial audit.
(C) Transfers contingent on inspector general
audits.--
(i) In general.--Before a transfer to a
participating State of the second one-third or
the last one-third, the Inspector General of
the Department of the Treasury shall carry out
an audit of the participating State's use of
amounts already received.
(ii) Penalty for misstatement.--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.
(iii) Municipalities.--For purposes of this
subparagraph, the term ``participating State''
shall include a municipality given special
permission to participate in the Program,
pursuant to section 204(d).
(D) Exception.--
(i) In general.--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.
(ii) Recoupment triggered by intentional
misstatement.--If, in any audit of a report
issued by a participating State that receives a
single transfer pursuant to clause (i), the
Secretary or the Inspector General of the
Department of the Treasury determines that such
State intentionally misstated information in
such report, the participating State shall be
required to fully repay all amounts received by
the State under the Program, and such amounts
shall be paid into the general fund of the
Treasury for reduction of the public debt.
(2) Transferred amounts.--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).
(3) Use of transferred funds.--Each participating State may
use funds transferred to it under this section only--
(A) for making Federal contributions to, or for the
account of, an approved State program;
(B) as collateral for a qualifying loan or swap
funding facility;
(C) in the case of the first one-third 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 one-third; or
(D) in the case of each successive one-third
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
one-third.
(4) Termination of availability of amounts not transferred
within 2 years of participation.--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.
(5) Transferred amounts not assistance.--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.
(6) Definitions.--For purposes of this section--
(A) the term ``allocated amount'' means the total
amount of Federal funds allocated by the Secretary
under subsection (b) to the participating State; and
(B) the term ``one-third'' means--
(i) in the case of the first and second
one-thirds, an amount equal to 33 percent of a
participating State's allocated amount; and
(ii) in the case of the last one-third, an
amount equal to 34 percent of a participating
State's allocated amount.
SEC. 204. APPROVING STATES FOR PARTICIPATION.
(a) Application.--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.
(b) General Approval Criteria.--The Secretary shall approve a State
to be a participating State, if--
(1) a specific department, agency, or political subdivision
of the State has been designated to implement a State program
and participate in the Program;
(2) 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;
(3) the State has filed an application with the Secretary
for approval of a State capital access program under section
205 or approval as a State other credit support program under
section 206, in each case within the time period provided in
the respective section; and
(4) the State and the Secretary have executed an allocation
agreement that--
(A) conforms to the requirements of this title;
(B) ensures that the State program complies with
such national standards as are established by the
Secretary under section 209(a)(2);
(C) 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;
(D) 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
(E) 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.
(c) Contractual Arrangements for Implementation of State
Programs.--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--
(1) an existing, approved State program administered by
another State; or
(2) an authorized agent of, or entity supervised by, the
State, including for-profit and not-for-profit entities.
(d) Special Permission.--
(1) Circumstances when a municipality may apply directly.--
If a State does not, within 60 days after the date of enactment
of this title, 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 title, 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.
(2) Timing requirements applicable to municipalities
applying directly.--To qualify for the special permission, a
municipality of a State must, within 12 months after the date
of enactment of this title, file with the Secretary a complete
application for approval by the Secretary of a State program.
(3) Notices of intent and applications from more than 1
municipality.--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.
(4) Approval criteria.--The general approval criteria in
paragraphs (2) and (4) shall apply.
(5) Allocation to municipalities.--
(A) If more than 3.--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.
(B) If 3 or fewer.--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.
(6) Apportionment of allocated amount among participating
municipalities.--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.
(7) Approving state programs for municipalities.--If the
Secretary approves municipalities to be participating
municipalities under this subsection, the Secretary shall take
into account the additional considerations in section 206(d) in
making the determination under section 205 or 206 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.
SEC. 205. APPROVING STATE CAPITAL ACCESS PROGRAMS.
(a) Application.--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.
(b) Approval.--The Secretary shall approve such State capital
access program as eligible for Federal contributions to the reserve
fund if--
(1) within 60 days after the date of enactment of this
title, the State has filed with the Secretary a notice of
intent to apply for approval by the Secretary of a State
capital access program;
(2) within 9 months after the date of enactment of this
title, the State has filed with the Secretary a complete
application for approval by the Secretary of a capital access
program;
(3) the State satisfies the requirements of subsections (a)
and (b) of section 204; and
(4) the State capital access program meets the eligibility
criteria in subsection (c).
(c) Eligibility Criteria for State Capital Access Programs.--For a
State capital access program to be approved under this section, it must
be a program of the State that--
(1) provides portfolio insurance for business loans based
on a separate loan-loss reserve fund for each financial
institution;
(2) 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;
(3) 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
(4) provides its portfolio insurance solely for loans that
meet both the following requirements:
(A) The borrower has 500 employees or less at the
time that the loan is enrolled in the Program.
(B) The loan amount does not exceed $5,000,000.
(d) Federal Contributions to Approved State Capital Access
Programs.--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.
(e) Minimum Program Requirements for State Capital Access
Programs.--The Secretary shall, by regulation or other guidance,
prescribe Program requirements that meet the following minimum
requirements:
(1) Experience and capacity.--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 non depository 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.
(2) Investment authority.--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.
(3) Loan terms and conditions to be determined by
agreement.--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.
(4) Lender capital at-risk.--A loan to be filed for
enrollment in the State capital access program must require the
financial institution lender to have a meaningful amount of its
own capital resources at risk in the loan.
(5) Premium charges minimum and maximum amounts.--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.
(6) State contributions.--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.
(7) Loan purpose.--
(A) Particular loan purpose requirements and
prohibitions.--In connection with the filing of a loan
for enrollment in an approved State capital access
program, the financial institution lender--
(i) shall obtain an assurance from each
borrower that--
(I) the proceeds of the loan will
be used for a business purpose;
(II) 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
(III) the borrower is not--
(aa) an executive officer,
director, or principal
shareholder of the financial
institution lender;
(bb) a member of the
immediate family of an
executive officer, director, or
principal shareholder of the
financial institution lender;
or
(cc) a related interest of
any such executive officer,
director, principal
shareholder, or member of the
immediate family;
(ii) 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;
(iii) 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
(iv) 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.
(B) Definitions.--For purposes of this subsection,
the terms ``executive officer'', ``director'',
``principal shareholder'', ``immediate family'', and
``related interest'' 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.
(8) Capital access for small businesses in underserved
communities.--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.
SEC. 206. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE CREDIT
ACCESS AND GUARANTEE INITIATIVES FOR SMALL BUSINESSES AND
MANUFACTURERS.
(a) Application.--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.
(b) Approval.--The Secretary shall approve such State other credit
support program as eligible for Federal contributions to, or for the
account of, the program if--
(1) the Secretary determines that the State satisfies the
requirements of paragraphs (1) through (3) of section 205(b);
(2) the Secretary determines that the State other credit
support program meets the eligibility criteria in subsection
(c);
(3) the Secretary determines the State other credit support
program to be eligible based on the additional considerations
in subsection (d); and
(4) within 9 months after the date of enactment of this
title, the State has filed with Treasury a complete application
for Treasury approval.
(c) Eligibility Criteria for State Other Credit Support Programs.--
For a State other credit support program to be approved under this
section, it must be a program of the State that--
(1) can demonstrate that, at a minimum, 1 dollar of public
investment by the State program will cause and result in 1
dollar of new private credit;
(2) 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;
(3) 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
(4) uses Federal funds allocated under this title to extend
credit support that--
(A) targets an average borrower size of 500
employees or less;
(B) does not extend credit support to borrowers
that have more than 750 employees;
(C) targets support towards loans with an average
principal amount of $5,000,000 or less; and
(D) does not extend credit support to loans that
exceed a principal amount of $20,000,000.
(d) Additional Considerations.--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:
(1) 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.
(2) The operational capacity, skills, and experience of the
management team of the State other credit support program.
(3) The capacity of the State other credit support program
to manage increases in the volume of its small business
lending.
(4) 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.
(5) The soundness of the program design and implementation
plan of the State other credit support program.
(e) Federal Contributions to Approved State Other Credit Support
Programs.--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.
(f) Minimum Program Requirements for State Other Credit Support
Programs.--
(1) Fund to prescribe.--The Secretary shall, by regulation
or other guidance, prescribe Program requirements for approved
State other credit support programs.
(2) Considerations for fund.--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 205(e).
SEC. 207. REPORTS.
(a) Quarterly Use-of-funds Report.--
(1) In general.--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.
(2) Report contents.--The report shall--
(A) indicate the total amount of Federal funding
used by the participating State;
(B) include a certification by the participating
State that--
(i) the information provided in accordance
with subparagraph (A) is accurate;
(ii) 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
(iii) the participating State is
implementing its approved State program or
programs in accordance with this title and
regulations issued pursuant to section 210.
(b) Annual Report.--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:
(1) 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.
(2) The total amount of such new loans.
(3) Breakdowns by industry type, loan size, annual sales,
and number of employees of the borrowers that received such new
loans.
(4) The zip code of each borrower that received such a new
loan.
(5) Such other data as the Secretary, in the Secretary's
sole discretion, may require to carry out the purposes of the
Program.
(c) Form.--The reports and data filed pursuant to subsections (a)
and (b) shall be in such form as the Secretary, in the Secretary's sole
discretion, may require.
(d) Termination of Reporting Requirements.--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.
SEC. 208. REMEDIES FOR STATE PROGRAM TERMINATION OR FAILURES.
(a) Remedies.--
(1) In general.--If any of the events listed in paragraph
(2) occur, the Secretary, in the Secretary's discretion, may--
(A) reduce the amount of Federal funds allocated to
the State under the Program; or
(B) terminate any further transfers of allocated
amounts that have not yet been transferred to the
State.
(2) Causal events.--The events referred to in paragraph (1)
are--
(A) termination by a participating State of its
participation in the Program;
(B) failure on the part of a participating State to
submit complete reports under section 207 on a timely
basis; or
(C) noncompliance by the State with the terms of
the allocation agreement between the Secretary and the
State.
(b) Deallocated Amounts to Be Reallocated.--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 203(b).
SEC. 209. IMPLEMENTATION AND ADMINISTRATION.
(a) General Authorities and Duties.--The Secretary shall--
(1) consult with the Administrator of the Small Business
Administration and the appropriate Federal banking agencies on
the administration of the Program;
(2) establish minimum national standards for approved State
programs;
(3) provide technical assistance to States for starting
State programs and generally disseminate best practices;
(4) manage, administer, and perform necessary program
integrity functions for the Program; and
(5) ensure adequate oversight of the approved State
programs, including oversight of the cash flows, performance,
and compliance of each approved State program.
(b) Appropriations.--There is hereby appropriated to the Secretary,
out of funds in the Treasury not otherwise appropriated, $2,000,000,000
to carry out the Program, including to pay reasonable costs of
administering the Program.
(c) Termination of Secretary's Program Administration Functions.--
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 title.
SEC. 210. REGULATIONS.
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, but not limited to, to define terms, to
establish compliance and reporting requirements, and such other terms
and conditions necessary to carry out the purposes of this title.
SEC. 211. OVERSIGHT AND AUDITS.
(a) Inspector General Oversight.--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.
(b) GAO Audit.--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, as such term is defined under
section 3(1), containing the results of such audit.
(c) Required Certification.--
(1) Financial institutions certification.--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 title 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.
(2) Sex offense certification.--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 title 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)).
(d) Prohibition on Pornography.--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.
TITLE III--SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM
SEC. 301. SHORT TITLE.
This title may be cited as the ``Small Business Early-Stage
Investment Program Act of 2010''.
SEC. 302. SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM.
Title III of the Small Business Investment Act of 1958 (15 U.S.C.
681 et seq.) is amended by adding at the end the following:
``PART D--SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM
``SEC. 399A. ESTABLISHMENT OF PROGRAM.
``The Administrator shall establish and carry out an early-stage
investment program (hereinafter referred to in this part as the
`program') to provide equity investment financing to support early-
stage small businesses in accordance with this part.
``SEC. 399B. ADMINISTRATION OF PROGRAM.
``The program shall be administered by the Administrator acting
through the Associate Administrator described under section 201.
``SEC. 399C. APPLICATIONS.
``(a) In General.--Any existing or newly formed incorporated body,
limited liability company, or limited partnership organized and
chartered or otherwise existing under Federal or State law for the
purpose of performing the functions and conducting the activities
contemplated under the program and any manager of any small business
investment company may submit to the Administrator an application to
participate in the program.
``(b) Requirements for Application.--An application to participate
in the program shall include the following:
``(1) A business plan describing how the applicant intends
to make successful venture capital investments in early-stage
small businesses and direct capital to small business concerns
in targeted industries or other business sectors.
``(2) Information regarding the relevant venture capital
investment qualifications and backgrounds of the individuals
responsible for the management of the applicant.
``(3) A description of the extent to which the applicant
meets the selection criteria under section 399D.
``(c) Applications From Managers of Small Business Investment
Companies.--The Administrator shall establish an abbreviated
application process for applicants that are managers of small business
investment companies that are licensed under section 301 and that are
applying to participate in the program. Such abbreviated process shall
incorporate a presumption that such managers satisfactorily meet the
selection criteria under paragraphs (3) and (5) of section 399D(b).
``SEC. 399D. SELECTION OF PARTICIPATING INVESTMENT COMPANIES.
``(a) In General.--Not later than 90 days after the date on which
the Administrator receives an application from an applicant under
section 399C, the Administrator shall make a determination to
conditionally approve or disapprove such applicant to participate in
the program and shall transmit such determination to the applicant in
writing. A determination to conditionally approve an applicant shall
identify all conditions necessary for a final approval and shall
provide a period of not less than one year for satisfying such
conditions.
``(b) Selection Criteria.--In making a determination under
subsection (a), the Administrator shall consider each of the following:
``(1) The likelihood that the applicant will meet the goals
specified in the business plan of the applicant.
``(2) The likelihood that the investments of the applicant
will create or preserve jobs, both directly and indirectly.
``(3) The character and fitness of the management of the
applicant.
``(4) The experience and background of the management of
the applicant.
``(5) The extent to which the applicant will concentrate
investment activities on early-stage small businesses.
``(6) The likelihood that the applicant will achieve
profitability.
``(7) The experience of the management of the applicant
with respect to establishing a profitable investment track
record.
``(8) The extent to which the applicant will concentrate
investment activities on small business concerns in targeted
industries.
``(c) Final Approval.--For each applicant provided a conditional
approval under subsection (a), the Administrator shall provide final
approval to participate in the program not later than 90 days after the
date the applicant satisfies the conditions specified by the
Administrator under such subsection or, in the case of applicants whose
partnership or management agreements conform to models approved by the
Administrator, the Administrator shall provide final approval to
participate in the program not later than 30 days after the date the
applicant satisfies the conditions specified under such subsection. If
an applicant provided conditional approval under subsection (a) fails
to satisfy the conditions specified by the Administrator in the time
period designated under such subsection, the Administrator shall revoke
the conditional approval.
``SEC. 399E. EQUITY FINANCINGS.
``(a) In General.--The Administrator may make one or more equity
financings to a participating investment company.
``(b) Equity Financing Amounts.--
``(1) Non-federal capital.--An equity financing made to a
participating investment company under the program may not be
in an amount that exceeds the amount of the capital of such
company that is not from a Federal source and that is available
for investment on or before the date on which an equity
financing is drawn upon. Such capital may include legally
binding commitments with respect to capital for investment.
``(2) Limitation on aggregate amount.--The aggregate amount
of all equity financings made to a participating investment
company under the program may not exceed $100,000,000.
``(c) Equity Financing Process.--In making an equity financing
under the program, the Administrator shall commit an equity financing
amount to a participating investment company and the amount of each
such commitment shall remain available to be drawn upon by such
company--
``(1) for new-named investments during the 5-year period
beginning on the date on which each such commitment is first
drawn upon; and
``(2) for follow-on investments and management fees during
the 10-year period beginning on the date on which each such
commitment is first drawn upon, with not more than 2 additional
1-year periods available at the discretion of the
Administrator.
``(d) Commitment of Funds.--The Administrator shall make
commitments for equity financings not later than 2 years after the date
funds are appropriated for the program.
``SEC. 399F. INVESTMENTS IN EARLY-STAGE SMALL BUSINESSES.
``(a) In General.--As a condition of receiving an equity financing
under the program, a participating investment company shall make all of
the investments of such company in small business concerns, of which at
least 50 percent shall be early-stage small businesses.
``(b) Evaluation of Compliance.--With respect to an equity
financing amount committed to a participating investment company under
section 399E, the Administrator shall evaluate the compliance of such
company with the requirements under this section if such company has
drawn upon 50 percent of such commitment.
``SEC. 399G. PRO RATA INVESTMENT SHARES.
``Each investment made by a participating investment company under
the program shall be treated as comprised of capital from equity
financings under the program according to the ratio that capital from
equity financings under the program bears to all capital available to
such company for investment.
``SEC. 399H. EQUITY FINANCING INTEREST.
``(a) Equity Financing Interest.--
``(1) In general.--As a condition of receiving an equity
financing under the program, a participating investment company
shall convey an equity financing interest to the Administrator
in accordance with paragraph (2).
``(2) Effect of conveyance.--The equity financing interest
conveyed under paragraph (1) shall have all the rights and
attributes of other investors attributable to their interests
in the participating investment company, but shall not denote
control or voting rights to the Administrator. The equity
financing interest shall entitle the Administrator to a pro
rata portion of any distributions made by the participating
investment company equal to the percentage of capital in the
participating investment company that the equity financing
comprises. The Administrator shall receive distributions from
the participating investment company at the same times and in
the same amounts as any other investor in the company with a
similar interest. The investment company shall make allocations
of income, gain, loss, deduction, and credit to the
Administrator with respect to the equity financing interest as
if the Administrator were an investor.
``(b) Manager Profits.--As a condition of receiving an equity
financing under the program, the manager profits interest payable to
the managers of a participating investment company under the program
shall not exceed 20 percent of profits, exclusive of any profits that
may accrue as a result of the capital contributions of any such
managers with respect to such company. Any excess of this amount, less
taxes payable thereon, shall be returned by the managers and paid to
the investors and the Administrator in proportion to the capital
contributions and equity financings paid in. No manager profits
interest (other than a tax distribution) shall be paid prior to the
repayment to the investors and the Administrator of all contributed
capital and equity financings made.
``(c) Distribution Requirements.--As a condition of receiving an
equity financing under the program, a participating investment company
shall make all distributions to all investors in cash and shall make
distributions within a reasonable time after exiting investments,
including following a public offering or market sale of underlying
investments.
``SEC. 399I. FUND.
``There is hereby created within the Treasury a separate fund for
equity financings which shall be available to the Administrator subject
to annual appropriations as a revolving fund to be used for the
purposes of the program. All amounts received by the Administrator,
including any moneys, property, or assets derived by the Administrator
from operations in connection with the program, shall be deposited in
the fund. All expenses and payments, excluding administrative expenses,
pursuant to the operations of the Administrator under the program shall
be paid from the fund.
``SEC. 399J. APPLICATION OF OTHER SECTIONS.
``To the extent not inconsistent with requirements under this part,
the Administrator may apply sections 309, 311, 312, 313, and 314 to
activities under this part and an officer, director, employee, agent,
or other participant in a participating investment company shall be
subject to the requirements under such sections.
``SEC. 399K. ANNUAL REPORTING.
``The Administrator shall report on the performance of the program
in the annual performance report of the Administration.
``SEC. 399L. DEFINITIONS.
``In this part, the following definitions apply:
``(1) Early-stage small business.--The term `early-stage
small business' means a small business concern that--
``(A) is domiciled in a State; and
``(B) has not generated gross annual sales revenues
exceeding $15,000,000 in any of the previous 3 years.
``(2) Participating investment company.--The term
`participating investment company' means an applicant approved
under section 399D to participate in the program.
``(3) Targeted industries.--The term `targeted industries'
means any of the following business sectors:
``(A) Agricultural technology.
``(B) Energy technology.
``(C) Environmental technology.
``(D) Life science.
``(E) Information technology.
``(F) Digital media.
``(G) Clean technology.
``(H) Defense technology.
``(I) Photonics technology.
``SEC. 399M. APPROPRIATION.
``From funds not otherwise appropriated, there is hereby
appropriated $1,000,000,000 to carry out the program.
``SEC. 399N. CERTIFICATION.
``(a) Immigration Certification.--
``(1) Participating investment companies.--Each
participating investment company that receives an equity
financing under this part after the date of the enactment of
this part must, if applicable, certify that such company 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.
``(2) Early-stage small businesses.--Each early-stage small
business that receives funds from a participating investment
company that receives an equity financing under this part after
the date of the enactment of this part must, if applicable,
certify that such company 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.
``(b) Sex Offender Certification.--
``(1) Participating investment companies.--Each
participating investment company that receives an equity
financing under this part after the date of the enactment of
this part shall certify to the Administrator that the
principals of such company 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)).
``(2) Early-stage small businesses.--Each early-stage small
business that receives funds from a participating investment
company that receives an equity financing under this part after
the date of the enactment of this part shall certify to the
Administrator 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)).
``(c) Pornography Certification.--None of the funds made available
under this part may be used to pay the salary of any individual engaged
in activities related to the provisions of this part 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.''.
SEC. 303. REGULATIONS.
Not later than 180 days after the date of enactment of this Act,
the Administrator shall issue regulations to carry out this title and
the amendments made by this title.
SEC. 304. PROHIBITIONS ON EARMARKS.
None of the funds appropriated for the program established under
part D of title III of the Small Business Investment Act of 1958, as
added by this Act, may be used for a Congressional earmark as defined
in clause 9(e) of rule XXI of the Rules of the House of
Representatives.
TITLE IV--MISCELLANEOUS
SEC. 401. BUDGETARY EFFECTS.
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 ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the House Budget Committee, provided that
such statement has been submitted prior to the vote on passage.
TITLE V--TAX PROVISIONS
SEC. 500. SHORT TITLE; ETC.
(a) Short Title.--This title may be cited as the ``Small Business
Jobs Tax Relief Act of 2010''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.
Subtitle A--Small Business Tax Incentives
PART 1--GENERAL PROVISIONS
SEC. 501. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON CERTAIN SMALL
BUSINESS STOCK.
(a) In General.--Subsection (a) of section 1202 is amended by
adding at the end the following new paragraph:
``(4) Special 100 percent exclusion.--In the case of
qualified small business stock acquired after March 15, 2010,
and before January 1, 2012--
``(A) paragraph (1) shall be applied by
substituting `100 percent' for `50 percent',
``(B) paragraph (2) shall not apply, and
``(C) paragraph (7) of section 57(a) shall not
apply.''.
(b) Conforming Amendments.--Paragraph (3) of section 1202(a) is
amended--
(1) by striking ``after the date of the enactment of this
paragraph and before January 1, 2011'' and inserting ``after
February 17, 2009, and before March 16, 2010''; and
(2) by striking ``Special rules for 2009 and 2010'' in the
heading and inserting ``Special 75 percent exclusion''.
(c) Effective Date.--The amendments made by this section shall
apply to stock acquired after March 15, 2010.
PART 2--LIMITATIONS AND REPORTING ON CERTAIN PENALTIES
SEC. 511. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE CERTAIN
INFORMATION.
(a) In General.--Subsection (b) of section 6707A is amended to read
as follows:
``(b) Amount of Penalty.--
``(1) In general.--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).
``(2) Maximum penalty.--The amount of the penalty under
subsection (a) with respect to any reportable transaction for
any taxable year shall not exceed--
``(A) in the case of a listed transaction, $200,000
($100,000 in the case of a natural person), or
``(B) in the case of any other reportable
transaction, $50,000 ($10,000 in the case of a natural
person).
``(3) Minimum penalty.--The amount of the penalty under
subsection (a) with respect to any transaction for any taxable
year shall not be less than $10,000 ($5,000 in the case of a
natural person).''.
(b) Effective Date.--The amendment made by this section shall apply
to penalties assessed after December 31, 2006.
SEC. 512. ANNUAL REPORTS ON PENALTIES AND CERTAIN OTHER ENFORCEMENT
ACTIONS.
(a) In General.--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:
(1) Section 6662A (relating to accuracy-related penalty on
understatements with respect to reportable transactions).
(2) Section 6700(a) (relating to promoting abusive tax
shelters).
(3) Section 6707 (relating to failure to furnish
information regarding reportable transactions).
(4) Section 6707A (relating to failure to include
reportable transaction information with return).
(5) Section 6708 (relating to failure to maintain lists of
advisees with respect to reportable transactions).
(b) Additional Information.--The report required under subsection
(a) shall also include information on the following with respect to
each year:
(1) 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).
(2) 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.
(c) Date of Report.--The first report required under subsection (a)
shall be submitted not later than December 31, 2010.
PART 3--OTHER PROVISIONS
SEC. 521. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-UP
EXPENDITURES.
(a) In General.--Subsection (b) of section 195 is amended by adding
at the end the following new paragraph:
``(3) Increased limitation for taxable years beginning in
2010 or 2011.--In the case of any taxable year beginning in
2010 or 2011, paragraph (1)(A)(ii) shall be applied--
``(A) by substituting `$20,000' for `$5,000', and
``(B) by substituting `$75,000' for `$50,000'.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
SEC. 522. NONRECOURSE SMALL BUSINESS INVESTMENT COMPANY LOANS FROM THE
SMALL BUSINESS ADMINISTRATION TREATED AS AMOUNTS AT RISK.
(a) In General.--Subparagraph (B) of section 465(b)(6) is amended
to read as follows:
``(B) Qualified nonrecourse financing.--For
purposes of this paragraph--
``(i) In general.--The term `qualified
nonrecourse financing' means any financing--
``(I) which is qualified real
property financing or qualified SBIC
financing,
``(II) except to the extent
provided in regulations, with respect
to which no person is personally liable
for repayment, and
``(III) which is not convertible
debt.
``(ii) Qualified real property financing.--
The term `qualified real property financing'
means any financing which--
``(I) is borrowed by the taxpayer
with respect to the activity of holding
real property,
``(II) is secured by real property
used in such activity, and
``(III) is borrowed by the taxpayer
from a qualified person or represents a
loan from any Federal, State, or local
government or instrumentality thereof,
or is guaranteed by any Federal, State,
or local government.
``(iii) Qualified sbic financing.--The term
`qualified SBIC financing' means any financing
which--
``(I) is borrowed by a small
business investment company (within the
meaning of section 301 of the Small
Business Investment Act of 1958), and
``(II) is borrowed from, or
guaranteed by, the Small Business
Administration under the authority of
section 303(b) of such Act.''.
(b) Conforming Amendments.--Subparagraph (A) of section 465(b)(6)
is amended--
(1) by striking ``in the case of an activity of holding
real property,''; and
(2) by striking ``which is secured by real property used in
such activity''.
(c) Effective Date.--The amendments made by this section shall
apply to loans and guarantees made after the date of the enactment of
this Act.
SEC. 523. BENEFITS UNDER THE SMALL BUSINESS BORROWER ASSISTANCE PROGRAM
EXCLUDED FROM GROSS INCOME.
(a) In General.--Part III of subchapter B of chapter 1 is amended
by adding at the end the following new section:
``SEC. 139F. BENEFITS UNDER THE SMALL BUSINESS BORROWER ASSISTANCE
PROGRAM.
``(a) In General.--Gross income shall not include any amount paid
on behalf of a borrower by the Administrator of the Small Business
Administration under the Small Business Borrower Assistance program
established under section 402 of the Small Business Assistance Fund Act
of 2010 (as in effect immediately after the date of the enactment of
such Act).
``(b) Denial of Double Benefit.--Notwithstanding any other
provision of this subtitle, with respect to the person for whose
benefit a payment described in subsection (a) is made--
``(1) Interest.--No deduction shall be allowed for interest
to the extent the liability for such interest is covered by
such payment.
``(2) Payments of principal.--If any payment is applied to
reduce the principal of the loan to which such payment
relates--
``(A) Allocation among financed expenditures.--Such
payment shall be allocated pro rata among the
expenditures financed with such loan.
``(B) Credits and deductible expenses.--No
deduction or credit shall be allowed for, or by reason
of, any such expenditure to the extent of the amount of
the payment allocated to such expenditure under
subparagraph (A).
``(C) Adjustment of basis.--The adjusted basis of
any property acquired with such expenditure shall be
reduced to the extent of the amount of the payment
allocated to such expenditure under subparagraph
(A).''.
(b) Clerical Amendments.--The table of sections for part III of
subchapter B of chapter 1 is amended by adding at the end the following
new item:
``Sec. 139F. Benefits under the Small Business Borrower Assistance
Program.''.
(c) Effective Date.--The amendments made by this section shall
apply to payments made after the date of the enactment of this Act.
Subtitle B--Revenue Provisions
SEC. 531. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED
ANNUITY TRUSTS.
(a) In General.--Subsection (b) of section 2702 is amended--
(1) by redesignating paragraphs (1), (2) and (3) as
subparagraphs (A), (B), and (C), respectively, and by moving
such subparagraphs (as so redesignated) 2 ems to the right;
(2) by striking ``For purposes of'' and inserting the
following:
``(1) In general.--For purposes of'';
(3) by striking ``paragraph (1) or (2)'' in paragraph
(1)(C) (as so redesignated) and inserting ``subparagraph (A) or
(B)''; and
(4) by adding at the end the following new paragraph:
``(2) Additional requirements with respect to grantor
retained annuities.--For purposes of subsection (a), in the
case of an interest described in paragraph (1)(A) (determined
without regard to this paragraph) which is retained by the
transferor, such interest shall be treated as described in such
paragraph only if--
``(A) the right to receive the fixed amounts
referred to in such paragraph is for a term of not less
than 10 years,
``(B) such fixed amounts, when determined on an
annual basis, do not decrease relative to any prior
year during the first 10 years of the term referred to
in subparagraph (A), and
``(C) the remainder interest has a value greater
than zero determined as of the time of the transfer.''.
(b) Effective Date.--The amendments made by this section shall
apply to transfers made after the date of the enactment of this Act.
SEC. 532. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL PRODUCER
CREDIT.
(a) In General.--Clause (iii) of section 40(b)(6)(E) is amended--
(1) by striking ``or'' at the end of subclause (I),
(2) by striking the period at the end of subclause (II) and
inserting ``, or'',
(3) by adding at the end the following new subclause:
``(III) such fuel has an acid
number greater than 25.'', and
(4) by striking ``unprocessed'' in the heading and
inserting ``certain''.
(b) Effective Date.--The amendment made by this section shall apply
to fuels sold or used on or after January 1, 2010.
SEC. 533. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.
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 7.75 percentage points.
TITLE VI--PLAIN WRITING ACT
SEC. 601. SHORT TITLE.
This title may be cited as the ``Plain Writing Act of 2010''.
SEC. 602. PURPOSE.
The purpose of this title is to improve the effectiveness and
accountability of Federal agencies to the public by promoting clear
Government communication that the public can understand and use.
SEC. 603. DEFINITIONS.
In this title:
(1) Agency.--The term ``agency'' means the Department of
the Treasury and the Small Business Administration.
(2) Covered document.--The term ``covered document''--
(A) means any document that--
(i) is relevant to obtaining any Federal
Government benefit or service provided under
title I, II, or III;
(ii) provides information about any Federal
Government benefit or service provided under
title I, II, or III; or
(iii) explains to the public how to comply
with a requirement the Federal Government
administers or enforces under title I, II, or
III;
(B) includes (whether in paper or electronic form)
a letter, publication, form, notice, or instruction;
and
(C) does not include a regulation.
(3) Plain writing.--The term ``plain writing'' means
writing that the intended audience can readily understand and
use because that writing is clear, concise, well-organized, and
follows other best practices of plain writing.
SEC. 604. RESPONSIBILITIES OF FEDERAL AGENCIES.
(a) Preparation for Implementation of Plain Writing Requirements.--
(1) In general.--Not later than 9 months after the date of
enactment of this title, the head of each agency shall--
(A) designate 1 or more senior officials within the
agency to oversee the agency implementation of this
title;
(B) communicate the requirements of this title to
the employees of the agency;
(C) train employees of the agency in plain writing;
(D) establish a process for overseeing the ongoing
compliance of the agency with the requirements of this
title;
(E) create and maintain a plain writing section of
the agency's website that is accessible from the
homepage of the agency's website; and
(F) designate 1 or more agency points-of-contact to
receive and respond to public input on--
(i) agency implementation of this title;
and
(ii) the agency reports required under
section 605.
(2) Website.--The plain writing section described under
paragraph (1)(E) shall--
(A) inform the public of agency compliance with the
requirements of this title; and
(B) provide a mechanism for the agency to receive
and respond to public input on--
(i) agency implementation of this title;
and
(ii) the agency reports required under
section 605.
(b) Requirement to Use Plain Writing in New Documents.--Beginning
not later than 1 year after the date of enactment of this title, each
agency shall use plain writing in every covered document of the agency
that the agency issues or substantially revises.
(c) Guidance.--In carrying out the provisions of this title,
agencies may follow the guidance of--
(1) the writing guidelines developed by the Plain Language
Action and Information Network; or
(2) guidance provided by the head of the agency.
SEC. 605. REPORTS TO CONGRESS.
(a) Initial Report.--Not later than 9 months after the date of
enactment of this title, the head of each agency shall publish on the
plain writing section of the agency's website a report that describes
the agency plan for compliance with the requirements of this title.
(b) Annual Compliance Report.--Not later than 18 months after the
date of enactment of this title, and annually thereafter, the head of
each agency shall publish on the plain writing section of the agency's
website a report on agency compliance with the requirements of this
title.
TITLE VII--SENSE OF CONGRESS ON AGRICULTURE AND FARMING SMALL BUSINESS
LOANS
SEC. 701. SENSE OF CONGRESS.
It is the sense of the Congress that--
(1) agriculture operations, farms, and rural communities
should receive equal consideration through lending activities
for small businesses in this Act, particularly small- and mid-
size farms and agriculture operations; and
(2) attention should be given to ensuring there is adequate
small business credit and financing availability under this Act
in the agriculture and farming sectors.
TITLE VIII--SMALL BUSINESS BORROWER ASSISTANCE PROGRAM
SEC. 801. SHORT TITLE.
This title may be cited as the ``Small Business Assistance Fund Act
of 2010''.
SEC. 802. SMALL BUSINESS BORROWER ASSISTANCE PROGRAM.
(a) In General.--The Administrator shall carry out a program to be
called the ``Small Business Borrower Assistance Program'' to provide
payments of principal and interest on qualifying small business loans.
(b) Automatic Enrollment; Commitment of Funds.--
(1) In general.--To the extent funds are available under
the Program, each borrower that receives a qualifying small
business loan after the date on which the Administrator issues
regulations pursuant to subsection (e) shall be automatically
enrolled in the Program, unless the borrower requests
otherwise, and the Administrator shall commit an amount to each
borrower equal to 6 percent of the principal disbursed amount
of such borrower's qualifying small business loan.
(2) One year window for participating in program.--
Notwithstanding paragraph (1), a borrower may only be enrolled
in the Program if the borrower is approved for a qualifying
small business loan before the end of the 1-year period
following the date on which the Administrator issues final
regulations pursuant to subsection (e).
(3) Termination of participation in certain
circumstances.--In any instance in which the Administrator
determines that a borrower participating in the Program has
committed fraud or made a material misrepresentation related to
such participation, the Administrator may terminate such
borrower's participation in the Program and ban such borrower
from any future participation in the Program.
(c) Disbursement of Funds.--
(1) In general.--A borrower enrolled in the Program may
submit a request for the payment of committed funds by a method
to be developed by the Administrator.
(2) Multiple disbursements permitted.--A borrower enrolled
in the Program may request multiple payments under paragraph
(1), as long as the aggregate amount of such payments does not
exceed the amount committed to such borrower under subsection
(b).
(d) Terms.--
(1) Payments only to lender or servicer.--Payments made by
the Administrator under the Program shall only be made to the
lender or servicer of a qualifying small business loan to be
applied against outstanding principal or interest, and may not
be made to the borrower.
(2) Program participation only permitted during first 2
years.--
(A) In general.--Payments made by the Administrator
under the Program may only be made with respect to a
payment of interest or principal due on a qualifying
small business loan within the 2-year period following
the date on which such loan is disbursed.
(B) Unexpended committed funds.--
(i) In general.--With respect to any funds
committed to a borrower enrolled in the Program
that remain unexpended at the end of the 2-year
period described under subparagraph (A), such
funds shall be paid to the lender or servicer
of the borrower's loan and applied to the
principal of such loan.
(ii) Exception.--In any case in which the
amount of committed funds that remain
unexpended is greater than the remaining
principal of a borrower's loan, the amount of
any excess shall be returned to the Treasury.
(e) Rulemaking.--Not later than 180 days after the date of the
enactment of this section, the Administrator shall issue regulations
necessary to carry out this section.
(f) Contracting With Agents.--The Administrator may contract with
one or more entities as necessary to carry out the provisions of the
Program. The Secretary of the Treasury is authorized to designate
financial institutions, including any bank, savings association, or
trust company, as financial agents of the Federal Government to carry
out the authorities of this section, and such institutions shall
perform all such reasonable duties related to the Program as financial
agents of the Federal Government as the Secretary may require. In
engaging any such third parties to carry out the Program, the
Administrator or the Secretary shall seek to involve small businesses
in the provision of the core direct services required under the
engagement.
(g) Definitions.--For purposes of this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Small Business Administration.
(2) Program.--The term ``Program'' means the Small Business
Borrower Assistance Program established under subsection (a).
(3) Qualifying small business loan.--The term ``qualifying
small business loan'' means any loan, up to $300,000, made to a
small business concern and guaranteed under section 7(a) of the
Small Business Act (15 U.S.C. 636(a)), other than a loan made
pursuant to section 7(a)(31) of such Act, a revolving credit
line, or any other revolving loan.
(4) Small business concern.--The term ``small business
concern'' has the meaning given such term under section 3 of
the Small Business Act (15 U.S.C. 632).
(h) Authorization of Appropriations.--There is hereby authorized to
be appropriated to the Administrator $300,000,000 to carry out this
section.
Passed the House of Representatives June 17, 2010.
Attest:
LORRAINE C. MILLER,
Clerk.
Calendar No. 435
111th CONGRESS
2d Session
H. R. 5297
_______________________________________________________________________
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.
_______________________________________________________________________
June 21, 2010
Read the second time and placed on the calendar