<enum>I</enum><header>Small Business Lending
Fund</header>
<section id="HCEE7531B27B24A67B8CA0F6DD6EEDB57" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This title may be cited as the
<quote><short-title>Small Business Lending Fund Act of
2010</short-title></quote>.</text>
</section><section id="H8534EC8273184FE7A058A05F3116B076"><enum>2.</enum><header>Purpose</header><text display-inline="no-display-inline">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.</text>
</section><section id="H7DE960EF427A43CD993CE6D652C7C97C"><enum>3.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title:</text>
<paragraph id="HB5E42E02728E411A8B1499267BAEF0C9"><enum>(1)</enum><header>Appropriate committees
of Congress</header><text>The term <quote>appropriate committees of
Congress</quote> means—</text>
<subparagraph id="H27EE16F564CE49EEBB0D5B5F16ED9732"><enum>(A)</enum><text>the Committee on Small
Business and Entrepreneurship, the Committee on Agriculture, Nutrition, and
Forestry, the Committee on Banking, Housing, and Urban Affairs, the Committee
on Finance, the Committee on the Budget, and the Committee on Appropriations of
the Senate; and</text>
</subparagraph><subparagraph id="HCFCCFFBDC10F4354A9CD0563861D9D69"><enum>(B)</enum><text>the Committee on Small
Business, the Committee on Agriculture, the Committee on Financial Services,
the Committee on Ways and Means, the Committee on the Budget, and the Committee
on Appropriations of the House of Representatives.</text>
</subparagraph></paragraph><paragraph id="H62329F2BB6F242F6A2679DD0345CFC1F"><enum>(2)</enum><header>Appropriate Federal
banking agency</header><text>The term <quote>appropriate Federal banking
agency</quote> has the meaning given such term under section 3(q) of the
Federal Deposit Insurance Act (12 U.S.C. 1813(q)).</text>
</paragraph><paragraph id="H773FA39810BF407D993B4CB2DC565EBD"><enum>(3)</enum><header>Bank holding
company</header><text>The term <quote>bank holding company</quote> has the
meaning given such term under section 2(a)(1) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841(2)(a)(1)).</text>
</paragraph><paragraph id="HAB56608463C4457B9C5C18A38D48C0D8"><enum>(4)</enum><header>Call
report</header><text>The term <quote>call report</quote> means—</text>
<subparagraph id="H7C3FDE61F6274D4DB6D93378DD19F9E4"><enum>(A)</enum><text>reports of Condition and
Income submitted to the Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, and the Federal Deposit Insurance
Corporation;</text>
</subparagraph><subparagraph id="H927ACDBA67AF45B9A911A1C754200C3E"><enum>(B)</enum><text>the Office of Thrift
Supervision Thrift Financial Report; and</text>
</subparagraph><subparagraph id="H38A1CFB3833F4E3FB817E4FFF79981F5"><enum>(C)</enum><text>any report that is
designated by the Office of the Comptroller of the Currency, the Board of
Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, or the Office of Thrift Supervision, as applicable, as a successor
to any report referred to in subparagraph (A) or (B).</text>
</subparagraph></paragraph><paragraph id="H3679AA04F2B24DED94A50FECBC16A76F"><enum>(5)</enum><header>CDCI</header><text>The
term <quote>CDCI</quote> means the Community Development Capital Initiative
created by the Secretary under the Troubled Asset Relief Program established by
the Emergency Economic Stabilization Act of 2008.</text>
</paragraph><paragraph id="HFCB895D168CB453396347732EF8B3589"><enum>(6)</enum><header>CDCI
investment</header><text>The term <quote>CDCI investment</quote> means, with
respect to any eligible institution, the principal amount of any investment
made by the Secretary in such eligible institution under the CDCI that has not
been repaid.</text>
</paragraph><paragraph id="H91824071AC6B483EB8B6286F334883B9"><enum>(7)</enum><header>CPP</header><text>The
term <quote>CPP</quote> means the Capital Purchase Program created by the
Secretary under the Troubled Asset Relief Program established by the Emergency
Economic Stabilization Act of 2008.</text>
</paragraph><paragraph id="H7774B14C68F847B09827130505E91D50"><enum>(8)</enum><header>CPP
investment</header><text>The term <quote>CPP investment</quote> means, with
respect to any eligible institution, the principal amount of any investment
made by the Secretary in such eligible institution under the CPP that has not
been repaid.</text>
</paragraph><paragraph id="HC456617AEA974028826049A8253F93A3"><enum>(9)</enum><header>Eligible
institution</header><text>The term <quote>eligible institution</quote>
means—</text>
<subparagraph id="HA010C353E45F4FD1ABD0F91B02B79E79"><enum>(A)</enum><text>any insured depository
institution, which—</text>
<clause id="H5301239E8BEB492DA0DFD1BD22DCC176"><enum>(i)</enum><text>is not controlled by a
bank holding company or savings and loan holding company that is also an
eligible institution;</text>
</clause><clause id="H79EB41030E9A4E0F985F0B2AFE4617A7"><enum>(ii)</enum><text>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</text>
</clause><clause id="H34134580FB694A1FBD9E66F519D68228"><enum>(iii)</enum><text>is not directly or
indirectly controlled by any company or other entity that has total
consolidated assets of more than $10,000,000,000, as so reported;</text>
</clause></subparagraph><subparagraph id="H41D10036AB7A42A3A75B9F912AC42EAF"><enum>(B)</enum><text display-inline="yes-display-inline">any bank holding company which has total
assets of equal to or less than $10,000,000,000; and</text>
</subparagraph><subparagraph id="H789A4E35734643A39754585E992EC231"><enum>(C)</enum><text>any savings and loan
holding company which has total assets of equal to or less than
$10,000,000,000.</text>
</subparagraph></paragraph><paragraph id="H62D0193E55E24603942328F9E15E41EA"><enum>(10)</enum><header>Fund</header><text>The
term <quote>Fund</quote> means the Small Business Lending Fund established by
section 4(a)(1) of this title.</text>
</paragraph><paragraph id="H2C13BCB7D91E40FBA1E4D6B07C368464"><enum>(11)</enum><header>Insured depository
institution</header><text>The term <quote>insured depository
institution</quote> has the meaning given such term under section 3(c)(2) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(c)(2)).</text>
</paragraph><paragraph id="H8E695B4DB18A425B89F4B12FDB6B2E7E"><enum>(12)</enum><header>Program</header><text>The
term <quote>Program</quote> means the Small Business Lending Fund Program
authorized by section 4(a)(2) of this title.</text>
</paragraph><paragraph id="HDC748F20B8864778AE017224BBB0A0E4"><enum>(13)</enum><header>Savings and loan
holding company</header><text>The term <quote>savings and loan holding
company</quote> has the meaning given such term under section 10(a)(1)(D) of
the Home Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(D)).</text>
</paragraph><paragraph id="HB53025917A4143C8BECC9C26A7DD190B"><enum>(14)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of the Treasury.</text>
</paragraph><paragraph id="HA979F19DDA6841D59CB144A85960BAB1"><enum>(15)</enum><header>Small business
lending</header>
<subparagraph id="HFEBA3DA7B729439893E7AD347D577371"><enum>(A)</enum><header>In
general</header><text>The term <quote>small business lending</quote> means
small business lending, as defined by and reported in an eligible institution’s
quarterly call report, of the following types:</text>
<clause id="HD3E2AAC89F7E4FEC847EA0CE710DDD8D"><enum>(i)</enum><text>Commercial and industrial
loans plus.</text>
</clause><clause id="H941B9FBF918D48B8919C5A9CF48FCC0C"><enum>(ii)</enum><text>Owner-occupied nonfarm,
nonresidential real estate loans.</text>
</clause><clause id="HADF698AF30164450A32C770DA5D31CB2"><enum>(iii)</enum><text>Loans to finance
agricultural production and other loans to farmers.</text>
</clause><clause id="H42207F5AE4034C10A6CB8BFF670D7302"><enum>(iv)</enum><text>Loans secured by
farmland.</text>
</clause></subparagraph><subparagraph id="H4A33E1A185CB4963BE18C267D8457448"><enum>(B)</enum><header>Treatment of holding
companies</header><text>In the case of eligible institutions that are bank
holding companies or savings and loan holding companies having one or more
insured depository institution subsidiaries, small business lending shall be
measured based on the combined small business lending reported in the call
report of the insured depository institution subsidiaries.</text>
</subparagraph></paragraph><paragraph id="H6830A1F443FF47779764768619F0A5F7"><enum>(16)</enum><header>Minority-owned and
women-owned business</header><text display-inline="yes-display-inline">The
terms <quote>minority-owned business</quote> and <quote>women-owned
business</quote> shall have the meaning given the terms <quote>minority-owned
business</quote> and <quote>women’s business</quote>, respectively, under
section 21A(r)(4) of the Federal Home Loan Bank Act (12 U.S.C.
1441A(r)(4)).</text>
</paragraph></section><section id="H5C437109E8F44C42B26FBF9911033DF2"><enum>4.</enum><header>Small Business Lending
Fund</header>
<subsection id="H047C4A9F8E9A42E7B961D7EE843D204F"><enum>(a)</enum><header>Fund and
program</header>
<paragraph id="H33898A3E60C74E41A02A3435E426BF4F"><enum>(1)</enum><header>Fund
established</header><text>There is established in the Treasury of the United
States a fund to be known as the <quote>Small Business Lending Fund</quote>,
which shall be administered by the Secretary.</text>
</paragraph><paragraph id="H37689B8AEC0943B4A1DF449714A083C4"><enum>(2)</enum><header>Programs
authorized</header><text>The Secretary is authorized to establish the Small
Business Lending Fund Program for using the Fund consistent with this
title.</text>
</paragraph></subsection><subsection id="H61B6A0D2649F4A758EC43143DF1CCF86"><enum>(b)</enum><header>Use of Fund</header>
<paragraph id="H8001BC90FA0A4AA3AEE42CDFC01D1598"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H4907393E319040E58F5861B72008F4E9"><enum>(2)</enum><header>Maximum purchase
limit</header><text>The aggregate amount of purchases (and commitments to
purchase) made pursuant to paragraph (1) may not exceed $30,000,000,000.</text>
</paragraph><paragraph id="HEE86D9AB11F9474184ED6B508B454D83"><enum>(3)</enum><header>Proceeds used to pay
down public debt</header><text display-inline="yes-display-inline">All funds
received by the Secretary in connection with purchases made pursuant to
paragraph (1), including interest payments, dividend payments, and proceeds
from the sale of any financial instrument, shall be paid into the general fund
of the Treasury for reduction of the public debt.</text>
</paragraph></subsection><subsection id="H0561BCFEA79643B3B37EABCC4B1D0203"><enum>(c)</enum><header>Credits to the
fund</header><text>There shall be credited to the Fund amounts made available
pursuant to section 9, to the extent provided by appropriations Acts.</text>
</subsection><subsection id="H5129A7B8B8EE4D7CB5436A8BB41242BC"><enum>(d)</enum><header>Terms</header>
<paragraph id="H02AA7ECB877342A5A680D0EBC1FA9CC9"><enum>(1)</enum><header>Application</header>
<subparagraph id="HDC15B58888114B20BFC5E544EEA01104"><enum>(A)</enum><header>Institutions with
assets of $1,000,000,000 or less</header><text>Eligible institutions having
total assets equal to or less than $1,000,000,000, as reported in a call report
as of the end of the fourth quarter of calendar year 2009, may apply to receive
a capital investment from the Fund in an amount not exceeding 5 percent of
risk-weighted assets, as reported in the call report immediately preceding the
date of application, less the amount of any CDCI investment and any CPP
investment.</text>
</subparagraph><subparagraph id="H3F2DA8BABC654A44900866C0E0EF9B2C"><enum>(B)</enum><header>Institutions with
assets of more than $1,000,000,000 and less than
$10,000,000,000</header><text>Eligible institutions having total assets of more
than $1,000,000,000 but less than $10,000,000,000, as of the end of the fourth
quarter of calendar year 2009, may apply to receive a capital investment from
the Fund in an amount not exceeding 3 percent of risk-weighted assets, as
reported in the call report immediately preceding the date of application, less
the amount of any CDCI investment and any CPP investment.</text>
</subparagraph><subparagraph id="HF460B386E33E44C9B3E248198760246C"><enum>(C)</enum><header>Treatment of holding
companies</header><text>In the case of an eligible institution that is a bank
holding company or a savings and loan holding company having one or more
insured depository institution subsidiaries, total assets shall be measured
based on the combined total assets reported in the call report of the insured
depository institution subsidiaries as of the end of the fourth quarter of
calendar year 2009 and risk-weighted assets shall be measured based on the
combined risk-weighted assets of the insured depository institution
subsidiaries as reported in the call report immediately preceding the date of
application.</text>
</subparagraph><subparagraph id="H7E1F7E501B264F189273117E2BF59FBC"><enum>(D)</enum><header>Treatment of applicants
that are institutions controlled by holding companies</header><text>If an
eligible institution that applies to receive a capital investment under the
Program is under the control of a bank holding company or a savings and loan
holding company, then the Secretary may use the Fund to purchase preferred
stock or other financial instruments from the top-tier bank holding company or
savings and loan holding company of such eligible institution, as applicable.
For purposes of this paragraph, the term <quote>control</quote> 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 <quote>control</quote> with respect to a savings and
loan holding company shall have the same meaning as in 10(a)(2) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(a)(2)).</text>
</subparagraph><subparagraph id="H866400CB152B4F3DADA56DC082846229"><enum>(E)</enum><header>Requirement to provide
a small business lending plan</header><text>At the time that an applicant
submits an application to the Secretary for a capital investment under the
Program, the applicant shall deliver to the appropriate Federal banking agency
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. This plan shall be confidential supervisory
information.</text>
</subparagraph></paragraph><paragraph id="H69D45159FCD84C7B8DF67BD607C338A3"><enum>(2)</enum><header>Consultation with
regulators</header><text>For each eligible institution that applies to receive
a capital investment under the Program, the Secretary shall consult with the
appropriate Federal banking agency for the eligible institution to determine
whether the eligible institution may receive such capital investment.</text>
</paragraph><paragraph display-inline="no-display-inline" id="H2A96FF84BC374576A40AA4D9F5ED7CD4"><enum>(3)</enum><header>Ineligibility of
institutions on FDIC problem bank list</header>
<subparagraph id="HC7D5CC2B6A814D92BA9327F9AC476993"><enum>(A)</enum><header>In
general</header><text>An eligible institution may not receive any capital
investment under the Program if—</text>
<clause id="HEB042E47B06F433A87D91CFD6826EFFE"><enum>(i)</enum><text>such institution is on
the FDIC problem bank list; or</text>
</clause><clause id="H47DF8C44E00D4B0BBDBB4891478B8C5D"><enum>(ii)</enum><text>such institution has
been removed from the FDIC problem bank list for less than 90 days.</text>
</clause></subparagraph><subparagraph id="H65AC6D4894614105B08327982C9F7985"><enum>(B)</enum><header>FDIC problem bank list
defined</header><text display-inline="yes-display-inline">For purposes of this
subparagraph, the term <quote>FDIC problem bank list</quote> 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.</text>
</subparagraph></paragraph><paragraph id="HC3C5DB7F0923483F8C967D9A0CCA1645"><enum>(4)</enum><header>Incentives to
lend</header>
<subparagraph id="H816CCE1E354D4F72AC4632344833EEAB"><enum>(A)</enum><header>Requirements on
preferred stock and other financial instruments</header><text>Any preferred
stock or other financial instrument issued to Treasury by an eligible
institution receiving a capital investment under the Program shall provide
that—</text>
<clause id="H8F134418AC9A450EBB3364FBECD0C96C"><enum>(i)</enum><text>the rate at which
dividends or interest are payable shall be 5 percent per annum
initially;</text>
</clause><clause id="H5AB6AC4E4908411B86D60FD778CBFD3E"><enum>(ii)</enum><text>within the first 2 years
after the date of the capital investment under the Program, the rate may be
adjusted based on the amount of an eligible institution’s small business
lending. Changes in the amount of small business lending shall be measured
against the amount of small business lending reported by the eligible
institution in its call report for the last quarter in calendar year 2009 or
the average amount of small business lending reported by the eligible
institution in all call reports for calendar year 2009, whichever is lower,
minus adjustments from each quarterly balance in respect of—</text>
<subclause id="H5D66FAE4A66E4DD29CE4BAC9AF2F047F"><enum>(I)</enum><text>net loan charge offs with
respect to small business lending; and</text>
</subclause><subclause id="H438EBE28E47248AAAB1952722E236B13"><enum>(II)</enum><text>gains realized by the
eligible institution resulting from mergers, acquisitions or purchases of loans
after origination and syndication; which adjustments shall be determined in
accordance with guidance promulgated by the Secretary; and</text>
</subclause></clause><clause id="HC2861169FF5246A9A5D4AEBF19EA3B56"><enum>(iii)</enum><text>during any calendar
quarter during the initial 2-year period referred to in clause (ii), an
institution’s rate shall be adjusted to reflect the following schedule, based
on that institution’s change in the amount of small business lending relative
to the baseline—</text>
<subclause id="HE86959B33E564FEE8977DFB006BF7436"><enum>(I)</enum><text>if the amount of small
business lending has increased by less than 2.5 percent, the dividend or
interest rate shall be 5 percent;</text>
</subclause><subclause id="HB07F3F36BFAD4CEF8843BD4CB48939E0"><enum>(II)</enum><text>if the amount of small
business lending has increased by 2.5 percent or greater, but by less than 5.0
percent, the dividend or interest rate shall be 4 percent;</text>
</subclause><subclause id="HA311CB998E69498F855086856157F7D6"><enum>(III)</enum><text>if the amount of small
business lending has increased by 5.0 percent or greater, but by less than 7.5
percent, the dividend or interest rate shall be 3 percent;</text>
</subclause><subclause id="H87F52468E1634959923DDF3B0CBE5235"><enum>(IV)</enum><text>if the amount of small
business lending has increased by 7.5 percent or greater, and but by less than
10.0 percent, the dividend or interest rate shall be 2 percent; or</text>
</subclause><subclause id="HC18FC98F29604298BBFC7AF0C0BD1378"><enum>(V)</enum><text>if the amount of small
business lending has increased by 10 percent or greater, the dividend or
interest rate shall be 1 percent.</text>
</subclause></clause></subparagraph><subparagraph id="H0DED158C30BC4D5A9709E409D2910FC8"><enum>(B)</enum><header>Basis of initial
rate</header><text>The initial dividend or interest rate shall be based on call
report data published in the quarter immediately preceding the date of the
capital investment under the Program.</text>
</subparagraph><subparagraph id="HC992E338C2BD4E8D8C3F693EC2E943B9"><enum>(C)</enum><header>Timing of rate
adjustments</header><text>Any rate adjustment shall occur in the calendar
quarter following the publication of call report data, such that the rate based
on call report data from any one calendar quarter, which is published in the
first following calendar quarter, shall be adjusted in that first following
calendar quarter and payable in the second following quarter.</text>
</subparagraph><subparagraph id="H3E46FF7FAC214F698595C7D3DDFD4551"><enum>(D)</enum><header>Rate following initial
2-year period</header><text>Generally, the rate based on call report data from
the eighth calendar quarter after the date of the capital investment under the
Program shall be payable until the expiration of the
4<fraction>½</fraction>-year period that begins on the date of the investment.
In the case where the amount of small business lending has remained the same or
decreased relative to the institution's baseline in the eighth quarter after
the date of the capital investment under the Program, the rate shall be 7
percent until the expiration of the 4<fraction>½</fraction>-year period that
begins on the date of the investment.</text>
</subparagraph><subparagraph id="H4E8017D3352144CA8C7B3633FA028FA4"><enum>(E)</enum><header>Rate following initial
4<fraction>½</fraction>-year period</header><text>The dividend or interest rate
paid on any preferred stock or other financial instrument issued by an eligible
institution that receives a capital investment under the Program shall increase
to 9 percent at the end of the 4<fraction>½</fraction>-year period that begins
on the date of the capital investment under the Program.</text>
</subparagraph><subparagraph id="HCC5647944FBF44E0B2C0D3D547B82BFD"><enum>(F)</enum><header>Limitation on rate
reductions with respect to certain amount</header><text>The reduction in the
dividend or interest rate payable to Treasury by any eligible institution shall
be limited such that the rate reduction shall not apply to a dollar amount of
the investment made by Treasury that is greater than the dollar amount increase
in the amount of small business lending realized under this program. The
Secretary may issue guidelines that will apply to new capital investments
limiting the amount of capital available to eligible institutions consistent
with this limitation.</text>
</subparagraph><subparagraph id="H6BF7ED5F17D143B1A90C3CE9896B441B"><enum>(G)</enum><header>Rate adjustments for S
corporation</header><text>Before making a capital investment in an eligible
institution that is an S corporation or a corporation organized on a mutual
basis, the Secretary may adjust the dividend or interest rate on the financial
instrument to be issued to the Secretary, from the dividend or interest rate
that would apply under subparagraphs (A) through (F), to take into account any
differential tax treatment of securities issued by such eligible institution.
For purpose of this subparagraph, the term <quote>S corporation</quote> has the
same meaning as in section 1361(a) of the Internal Revenue Code of 1986.</text>
</subparagraph><subparagraph id="H39C2EFD437BF48A5AE07897E261CE749"><enum>(H)</enum><header>Repayment
deadline</header><text>The capital investment received by an eligible
institution under the Program shall be repaid by the end of the 10-year period
that begins on the date of the capital investment under the Program.</text>
</subparagraph></paragraph><paragraph id="HF3E408DDE04E48C6A7155C2BA26D32B2"><enum>(5)</enum><header>Additional incentives
to repay</header><text>The Secretary may, by regulation or guidance issued
under section 5(9), 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.</text>
</paragraph><paragraph id="HC4569A0B98534CB1A4F929896CBCD9AD"><enum>(6)</enum><header>Capital purchase
program refinance</header>
<subparagraph id="HB28C9FD0719E458CB40A939B29495C02"><enum>(A)</enum><header>In
general</header><text>The Secretary shall, in a manner that the Secretary
determines to be consistent with the purposes of this 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.</text>
</subparagraph><subparagraph id="H3098376BB7D0430ABF0F26DB76070163"><enum>(B)</enum><header>Prohibition on
participation by non-paying CPP participants</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to any
eligible institution that has ever missed a dividend payment due under the
CPP.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H4ED45810B3264D519F8B14A14D7A8C72"><enum>(7)</enum><header>Minority
outreach</header><text display-inline="yes-display-inline">The Secretary shall
require eligible institutions receiving capital investments under the Program
to provide outreach and advertising in the appropriate language of 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 represent or
work within or are members of minority communities.</text>
</paragraph><paragraph id="H8DC20DA464474A59B57B250F62EE4FD6"><enum>(8)</enum><header>Additional
terms</header><text>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.</text>
</paragraph><paragraph id="H227CDEEF58CB4EC49362D523C0101CE1"><enum>(9)</enum><header>Minimum underwriting
standards</header><text>The appropriate Federal banking agency for an eligible
institution that receives funds under the Program shall within 60 days issue
regulations defining minimum underwriting standards that must be used for loans
made by the eligible institution using such funds.</text>
</paragraph></subsection></section><section id="H6DA004C466104E089791B7A8F82A1D2F"><enum>5.</enum><header>Additional authorities
of the Secretary</header><text display-inline="no-display-inline">The Secretary
may take such actions as the Secretary deems necessary to carry out the
authorities in this title, including, without limitation, the following:</text>
<paragraph id="HEF9EF32031A74EBBA6F9B533F3D0EBF4"><enum>(1)</enum><text>The Secretary may use the
services of any agency or instrumentality of the United States or component
thereof on a reimbursable basis, and any such agency or instrumentality or
component thereof is authorized to provide services as requested by the
Secretary using all authorities vested in or delegated to that agency,
instrumentality, or component.</text>
</paragraph><paragraph id="HDE343A2C61E34FB9BCD57A79473CDCBD"><enum>(2)</enum><text>The Secretary may enter
into contracts, including contracts for services authorized by section 3109 of
title 5, United States Code.</text>
</paragraph><paragraph id="HA11C407B707543F5B64F724A643C993B"><enum>(3)</enum><text>The Secretary may
designate any bank, savings association, trust company, security broker or
dealer, asset manager, or investment adviser as a financial agent of the
Federal Government and such institution shall perform all such reasonable
duties related to this 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.</text>
</paragraph><paragraph id="HBE1C424DE9184A90B2051FEBA8AAF82B"><enum>(4)</enum><text>The Secretary may
exercise any rights received in connection with any preferred stock or other
financial instruments or assets purchased or acquired pursuant to the
authorities granted under this title.</text>
</paragraph><paragraph id="HF4FE9439998F4E2DAEBA7E44969165CE"><enum>(5)</enum><text>Subject to section
4(b)(3), the Secretary may manage any assets purchased under this title,
including revenues and portfolio risks therefrom.</text>
</paragraph><paragraph id="H23DAEA6BF40246928B8FD0EE3BA24DC7"><enum>(6)</enum><text>The Secretary may sell,
dispose of, transfer, exchange or enter into securities loans, repurchase
transactions, or other financial transactions in regard to, any preferred stock
or other financial instrument or asset purchased or acquired under this title,
upon terms and conditions and at a price determined by the Secretary.</text>
</paragraph><paragraph id="H648978E271904466A7248256F7570815"><enum>(7)</enum><text>The Secretary may manage
or prohibit conflicts of interest that may arise in connection with the
administration and execution of the authorities provided under this
title.</text>
</paragraph><paragraph id="H92918B57384B4330A424B0593FB34C1B"><enum>(8)</enum><text>The Secretary may
establish and use vehicles, subject to supervision by the Secretary, to
purchase, hold, and sell preferred stock or other financial instruments and
issue obligations.</text>
</paragraph><paragraph id="H537362CCCECB48B0A740FA41C3465A28"><enum>(9)</enum><text>The Secretary may, in
consultation with the Administrator of the Small Business Administration, issue
such regulations and other guidance as may be necessary or appropriate to
define terms or carry out the authorities or purposes of this title.</text>
</paragraph></section><section id="HD7ED7B957DEA4C88B2875050B0E90876"><enum>6.</enum><header>Considerations</header><text display-inline="no-display-inline">In exercising the authorities granted in
this title, the Secretary shall take into consideration—</text>
<paragraph id="HB330B978878646AB8D6BB2600943B750"><enum>(1)</enum><text>increasing the
availability of credit for small businesses;</text>
</paragraph><paragraph display-inline="no-display-inline" id="H7C7B624C73C64774B7C0FE7FFEB78195"><enum>(2)</enum><text display-inline="yes-display-inline">providing funding to eligible institutions
that serve small businesses that are minority- and women-owned and that also
serve low- and moderate-income, minority, and other underserved or rural
communities;</text>
</paragraph><paragraph id="HCC98D2A7694D4AB4ACD85D581407AE69"><enum>(3)</enum><text>protecting and increasing
American jobs;</text>
</paragraph><paragraph id="H65D1A617ECC64DC9A057ABC8F30EB64E"><enum>(4)</enum><text>ensuring that all
eligible institutions may apply to participate in the program established under
this title, without discrimination based on geography;</text>
</paragraph><paragraph id="H89B689947EF34E00AC8566FEA3EB82D9"><enum>(5)</enum><text>providing transparency
with respect to use of funds provided under this title;</text>
</paragraph><paragraph id="HA9BEAB3DBC6D4121A24C193031405654"><enum>(6)</enum><text>minimizing the cost to
taxpayers of exercising the authorities; and</text>
</paragraph><paragraph id="H5C8D81C479364CFBAADE974944314B82"><enum>(7)</enum><text>promoting and engaging in
financial education to would-be borrowers.</text>
</paragraph></section><section id="HAD9B317189EB4363984A3616D30BA607"><enum>7.</enum><header>Reports</header><text display-inline="no-display-inline">The Secretary shall provide to the
appropriate committees of Congress—</text>
<paragraph id="H707D57BC67D14756ADE29A84966241F1"><enum>(1)</enum><text>within 7 days of the end
of each month commencing with the first month in which transactions are made
under the Program, a written report describing all of the transactions made
during the reporting period pursuant to the authorities granted under this
title;</text>
</paragraph><paragraph id="HE11091911A654FE3813DDADD1E2CFB96"><enum>(2)</enum><text display-inline="yes-display-inline">after the end of March and the end of
September, commencing September 30, 2010, a written report on all projected
costs and liabilities, all operating expenses, including compensation for
financial agents, and all transactions made by the Fund, which shall include
participating institutions and amounts each institution has received under the
Program; and</text>
</paragraph><paragraph id="H57DE8C625E2E456FAD9594CB11381A7A"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></section><section id="H10124275E3024216B34A4E82E388F7E0"><enum>8.</enum><header>Oversight and
audits</header>
<subsection id="HAB73D4A93B2B456FA94C34A9CD410D50"><enum>(a)</enum><header>Inspector General
oversight</header><text display-inline="yes-display-inline">The Inspector
General of the Department of the Treasury shall conduct, supervise, and
coordinate audits and investigations of the purchase (and commitments to
purchase) of preferred stock and other financial instruments under the
Program.</text>
</subsection><subsection id="H5EDCE59245644B1F97194E3E95BE2AF6"><enum>(b)</enum><header>GAO audit</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall perform an annual audit of the Program and issue a report to the
appropriate committees of Congress containing the results of such audit.</text>
</subsection></section><section id="HF8A672500CF546C59B4241EC479EE290"><enum>9.</enum><header>Credit reform;
Funding</header>
<subsection id="HF746EEE537BF49209B98CDC0DFCE8A03"><enum>(a)</enum><header>Credit
reform</header><text>The cost of purchases of preferred stock and other
financial instruments made as capital investments under this title shall be
determined as provided under the Federal Credit Reform Act of 1990 (2 U.S.C.
661 et seq.).</text>
</subsection><subsection id="HCEFDBD245E0047CABBB14CF326B6CE0C"><enum>(b)</enum><header>Funds made
available</header><text display-inline="yes-display-inline">There are hereby
authorized to be appropriated, out of funds in the Treasury not otherwise
appropriated, such sums as may be necessary to pay the costs of $30,000,000,000
of capital investments in eligible institutions, including the costs of
modifying such investments, and reasonable costs of administering the program
of making, holding, managing, and selling the capital investments.</text>
</subsection></section><section id="HDFF5CEF63A234947808A9140B9C70CE3"><enum>10.</enum><header>Termination and
continuation of authorities</header>
<subsection id="HA06A62D883D54553AEBB3C1A98BC65DA"><enum>(a)</enum><header>Termination of
investment authority</header><text>The authority to make capital investments in
eligible institutions, including commitments to purchase preferred stock or
other instruments, provided under this title shall terminate 1 year after the
date of enactment of this title.</text>
</subsection><subsection id="H8CBDB982F4424A35A8AB688AA5B29CDC"><enum>(b)</enum><header>Continuation of other
authorities</header><text>The authorities of the Secretary in section 5 shall
not be limited by the termination date in subsection (a).</text>
</subsection></section><section id="H42F71883FF4E4942B89C81C29BEE7007"><enum>11.</enum><header>Preservation of
authority</header><text display-inline="no-display-inline">Nothing in this
title may be construed to limit the authority of the Secretary under any other
provision of law.</text>
</section><section id="H0B58CC0F786A4FF9ADEDEE57EE518309"><enum>12.</enum><header>Assurances</header>
<subsection id="H33C9C85AE4A54DE69684FA4DA120A862"><enum>(a)</enum><header>Small Business Lending
Fund separate from TARP</header><text>The Small Business Lending Fund Program
is established as separate and distinct from the Troubled Asset Relief Program
established by the Emergency Economic Stabilization Act of 2008. An institution
shall not, by virtue of a capital investment under the Small Business Lending
Fund Program, be considered a recipient of the Troubled Asset Relief
Program.</text>
</subsection><subsection id="H7D38FAA1230F4B5BB1A86F598B09B2D2"><enum>(b)</enum><header>Change in
law</header><text>If, after a capital investment has been made in an eligible
institution under the Program, there is a change in law that modifies the terms
of the investment or program in a materially adverse respect for the eligible
institution, the eligible institution may, after consultation with the
appropriate Federal banking agency for the eligible institution, repay the
investment without impediment.</text>
</subsection></section><section id="HBA8CAA3F701C4C8784FFABB6A00C057C"><enum>13.</enum><header>Study and report with
respect to women-owned and minority-owned businesses</header>
<subsection id="H76EED2A20D234E0EB4286F74F811A034"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Secretary shall conduct a study to
determine the number of women-owned businesses and minority-owned businesses
that receive assistance as a result of the Program, including—</text>
<paragraph id="H4AEFC92056354A2095A7416BCF11B8A0"><enum>(1)</enum><text>efforts, including
technical assistance and outreach that institutions have employed under the
Program to provide loans to minority- and women-owned small businesses;</text>
</paragraph><paragraph id="HDFE17627DF8A4E5EA17D8DA2D0FC2C59"><enum>(2)</enum><text>loan applications
received;</text>
</paragraph><paragraph id="H0C8D51CE50D543EB9B6002899900903D"><enum>(3)</enum><text>loan applications
approved; and</text>
</paragraph><paragraph id="H1EEEA7F8DBDA41E5A0AD5DA8182A10AD"><enum>(4)</enum><text>and any other relevant
data related to such transactions to promote the purposes of the Program as the
Secretary may require.</text>
</paragraph></subsection><subsection id="HBC9BAE4D88D5454E87E5B4D74DE19B99"><enum>(b)</enum><header>Report</header><text>Not
later than one year after the date of enactment of this Act, the Secretary
shall submit to Congress a report on the results of the study conducted
pursuant to subsection (a).</text>
</subsection><subsection id="H1DC6B1810449413B926B837E535A5340"><enum>(c)</enum><header>Information provided to
the Secretary</header><text>Eligible institutions that participate in the
Program shall provide the Secretary with such information as the Secretary may
require to carry out the study required by this section.</text>
</subsection></section><enum>II</enum><header>State Small Business
Credit Initiative</header>
<section id="H7C7D8277F09447629B8EDB7026BE3766" section-type="subsequent-section"><enum>201.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>State Small Business Credit Initiative Act of
2010</quote>.</text>
</section><section id="H388FC96BEE0E420E996C7EC311CE3076"><enum>202.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this title, the following
definitions shall apply:</text>
<paragraph id="H2AB4B076DD8B4706A187A8958CF55F37"><enum>(1)</enum><header>Appropriate Federal
banking agency</header><text>The term <term>appropriate Federal banking
agency</term>—</text>
<subparagraph id="H62B85368521E4DBB9B107EB210F357BB"><enum>(A)</enum><text>has the same meaning as
in section 3 of the Federal Deposit Insurance Act; and</text>
</subparagraph><subparagraph id="H380AFB28FC514D2AA5E102EAC6F267AD"><enum>(B)</enum><text>includes the National
Credit Union Administration Board in the case of any credit union the deposits
of which are insured in accordance with the Federal Credit Union Act.</text>
</subparagraph></paragraph><paragraph id="H1A7B8FD823D844C39E66517FF6767206"><enum>(2)</enum><header>Enrolled
loan</header><text>The term <term>enrolled loan</term> means a loan made by a
financial institution lender that is enrolled by a participating State in an
approved State capital access program in accordance with this title.</text>
</paragraph><paragraph id="H7BEC05C7B2E942AABC1B7AE5D5240A60"><enum>(3)</enum><header>Federal
contribution</header><text>The term <term>Federal contribution</term> means the
portion of the contribution made by a participating State to, or for the
account of, an approved State program that is made with Federal funds allocated
to the State by the Secretary under section 203.</text>
</paragraph><paragraph id="HCDD24B5999364623B3985CD8E504BDD9"><enum>(4)</enum><header>Financial
institution</header><text>The term <term>financial institution</term> means any
insured depository institution, insured credit union, or community development
financial institution, as those terms are each defined in section 103 of the
Riegle Community Development and Regulatory Improvement Act of 1994.</text>
</paragraph><paragraph id="H5428E5D243754B36AE80F468AE6E684C"><enum>(5)</enum><header>Participating
state</header><text>The term <term>participating State</term> means any State
that has been approved for participation in the Program under section
204.</text>
</paragraph><paragraph id="HCF2D1480D3BF48F1A816BD4B62674E67"><enum>(6)</enum><header>Program</header><text>The
term <term>Program</term> means the State Small Business Credit Initiative
established under this title.</text>
</paragraph><paragraph id="H0DFD1BE9B080479687BE6E459E748BDB"><enum>(7)</enum><header>Qualifying loan or swap
funding facility</header><text>The term <term>qualifying loan or swap funding
facility</term> means a contractual arrangement between a participating State
and a private financial entity under which—</text>
<subparagraph id="H5DD4D32CFD4243AD970A8C6DD3345E81"><enum>(A)</enum><text>the participating State
delivers funds to the entity as collateral;</text>
</subparagraph><subparagraph id="H62C4C806DD08431F834460CF31AC1A81"><enum>(B)</enum><text>the entity provides
funding from the arrangement back to the participating State; and</text>
</subparagraph><subparagraph id="H342F70C73C7948EBAF56FC0A870B59FC"><enum>(C)</enum><text>the full amount of
resulting funding from the arrangement, less any fees and other costs of the
arrangement, is contributed to, or for the account of, an approved State
program.</text>
</subparagraph></paragraph><paragraph id="H37B08958D8A84556A61572702B3CE15E"><enum>(8)</enum><header>Reserve
fund</header><text>The term <term>reserve fund</term> means a fund, established
by a participating State, dedicated to a particular financial institution
lender, for the purposes of—</text>
<subparagraph id="H54F9C8FDD56D422B8D3D0E31751D37E1"><enum>(A)</enum><text>depositing all required
premium charges paid by the financial institution lender and by each borrower
receiving a loan under an approved State program from that financial
institution lender;</text>
</subparagraph><subparagraph id="HA31969A747584603B1E622114066A80E"><enum>(B)</enum><text>depositing contributions
made by the participating State, including State contributions made with
Federal contributions; and</text>
</subparagraph><subparagraph id="HA6A25C08D498492499B7907B738DBD81"><enum>(C)</enum><text>covering losses on
enrolled loans by disbursing accumulated funds.</text>
</subparagraph></paragraph><paragraph id="HA39D927C294441B391D4E7D5A1CA3B3E"><enum>(9)</enum><header>State</header><text>The
term <term>State</term> means—</text>
<subparagraph id="HAE96C3FF3AEB4046BFC64FE2D9F79353"><enum>(A)</enum><text>a State of the United
States;</text>
</subparagraph><subparagraph id="H8D6D3D6999614B6085FA50F081618F1E"><enum>(B)</enum><text display-inline="yes-display-inline">the District of Columbia, the Commonwealth
of Puerto Rico, the Commonwealth of Northern Mariana Islands, Guam, American
Samoa, and the United States Virgin Islands;</text>
</subparagraph><subparagraph id="HF58468F2BB2F4383800C2F9A225C9E3D"><enum>(C)</enum><text>when designated by a
State of the United States, a political subdivision of that State that the
Secretary determines has the capacity to participate in the Program; and</text>
</subparagraph><subparagraph id="H207CF1C98F114169869B3F6A429F56D6"><enum>(D)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="H9223B04D71774CD6B4244F03BCD36DCF"><enum>(10)</enum><header>State capital access
program</header><text>The term <term>State capital access program</term> means
a program of a State that—</text>
<subparagraph id="HDFEED74CE1674D01B76B78111B76BD3F"><enum>(A)</enum><text>uses public resources to
promote private access to credit; and</text>
</subparagraph><subparagraph id="H747C19ABA9E14EDD901A835FEB3B6228"><enum>(B)</enum><text>meets the eligibility
criteria in section 205(c).</text>
</subparagraph></paragraph><paragraph id="H99C7A08F77724393A9DF3175119A734C"><enum>(11)</enum><header>State other credit
support program</header><text>The term <term>State other credit support
program</term>—</text>
<subparagraph id="H893E12BC2E744C6DB9D4AEB20881D743"><enum>(A)</enum><text>means a program of a
State that—</text>
<clause id="H862957566AEB4964BDFA8976EDF80274"><enum>(i)</enum><text>uses public resources to
promote private access to credit;</text>
</clause><clause id="H689DAAB5D6E648A7894FE8CB5B73A0E8"><enum>(ii)</enum><text>is not a State capital
access program; and</text>
</clause><clause id="H6288273139CE4C1EB0A55B2C4D346F61"><enum>(iii)</enum><text>meets the eligibility
criteria in section 206(c); and</text>
</clause></subparagraph><subparagraph id="HF7EAD68F835645309872759A8866256D"><enum>(B)</enum><text>includes, collateral
support programs, loan participation programs, and credit guarantee
programs.</text>
</subparagraph></paragraph><paragraph id="H7DBFB6197FCA4020B10493E929F26038"><enum>(12)</enum><header>State
program</header><text>The term <term>State program</term> means a State capital
access program or a State other credit support program.</text>
</paragraph><paragraph id="H99EF840699A44B56AEB7D7EDDEB997BA"><enum>(13)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of the Treasury.</text>
</paragraph></section><section id="HF0F03ED9D8854BE7BF7790594C46F437"><enum>203.</enum><header>Federal funds
allocated to States</header>
<subsection id="HA165813378A24C8C9489749F05EE1E68"><enum>(a)</enum><header>Program established;
Purpose</header><text>There is established the State Small Business Credit
Initiative (hereinafter in this title referred to as the
<quote>Program</quote>), to be administered by the Secretary. Under the
Program, the Secretary shall allocate Federal funds to participating States and
make the allocated funds available to the participating States as provided in
this section for the uses described in this section.</text>
</subsection><subsection id="H1575E043F56C4606A660E8718B42BD3A"><enum>(b)</enum><header>Allocation
formula</header><text></text>
<paragraph id="H085723A683A44C1DAEF339883E9E3D8E"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="H0D728F72D83F4AEBB7521EEBEEA46D5A"><enum>(A)</enum><text>would receive under the
2009 allocation, as determined under paragraph (2); and</text>
</subparagraph><subparagraph id="HD6427C40D88849D8B8D34AB267C9CE80"><enum>(B)</enum><text>would receive under the
2010 allocation, as determined under paragraph (3).</text>
</subparagraph></paragraph><paragraph id="HB7FF6C56B0F24118B4A5D003B8E6D4C8"><enum>(2)</enum><header>2009 allocation
formula</header>
<subparagraph id="H905388D490CB40DA969DB309622E94F5"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
determine the 2009 allocation by allocating Federal funds among the States in
the proportion that each such State’s 2008 State employment decline bears to
the aggregate of the 2008 State employment declines for all States.</text>
</subparagraph><subparagraph id="HCB8726D98FB04362AAA08AB3CCD4F9CD"><enum>(B)</enum><header>Minimum
allocation</header><text display-inline="yes-display-inline">The Secretary
shall adjust the allocations under subparagraph (A) for each State to the
extent necessary to ensure that no State receives less than 0.9 percent of the
Federal funds.</text>
</subparagraph><subparagraph id="H82EA60E399254F41A3841A6585BE2347"><enum>(C)</enum><header>2008 State employment
decline defined</header><text>For purposes of this paragraph and with respect
to a State, the term <quote>2008 State employment decline</quote> means the
excess (if any) of—</text>
<clause id="HB49B8096A4A34A7EB9ECFB5430053518"><enum>(i)</enum><text display-inline="yes-display-inline">the number of individuals employed in such
State determined for December 2007; over</text>
</clause><clause id="HF83CADEDAF144FC38A9C88C92819F224"><enum>(ii)</enum><text>the number of
individuals employed in such State determined for December 2008.</text>
</clause></subparagraph></paragraph><paragraph id="HABA6802EC43B40BDBCC5A37AFB3E7217"><enum>(3)</enum><header>2010 allocation
formula</header>
<subparagraph id="H92BDBA78419C4EE79B13FAA5B426E759"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
determine the 2010 allocation by allocating Federal funds among the States in
the proportion that each such State’s 2009 unemployment number bears to the
aggregate of the 2009 unemployment numbers for all of the States.</text>
</subparagraph><subparagraph id="H853EF2CD967F4F5FA4A45C82436E1918"><enum>(B)</enum><header>Minimum
allocation</header><text>The Secretary shall adjust the allocations under
subparagraph (A) for each State to the extent necessary to ensure that no State
receives less than 0.9 percent of the Federal funds.</text>
</subparagraph><subparagraph id="HDAAF6235A919463EB0CE0F7F9772EFF7"><enum>(C)</enum><header>2009 unemployment
number defined</header><text>For purposes of this paragraph and with respect to
a State, the term <quote>2009 unemployment number</quote> means the number of
individuals within such State who were determined to be unemployed by the
Bureau of Labor Statistics for December 2009.</text>
</subparagraph></paragraph></subsection><subsection id="HC748D7D2DA5D4752BAA849ED67B07B2F"><enum>(c)</enum><header>Availability of
allocated amount</header><text>The amount allocated by the Secretary to each
participating State under subsection (b) shall be made available to the State
as follows:</text>
<paragraph id="H2DAF08D7C03E43288E5C286E8DBFC555"><enum>(1)</enum><header>Allocated amount
generally to be available to State in one-thirds</header>
<subparagraph id="H59D7AE8348674A2697DB6636E30C5BB0"><enum>(A)</enum><header>In
general</header><text>The Secretary shall—</text>
<clause id="HA0C055280F0E43B3B40DCF2D1D8C2D62"><enum>(i)</enum><text>apportion the
participating State’s allocated amount into one-thirds;</text>
</clause><clause id="H4B7D1495E3664614AEF524299FA8745A"><enum>(ii)</enum><text>transfer to the
participating State the first one-third when the Secretary approves the State
for participation under section 204; and</text>
</clause><clause id="H214527E9A052499897C9352B1896BCC8"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HEEDC6BE1AC704ED0A2EFB6D4A1FB2468"><enum>(B)</enum><header>Authority to withhold
pending audit</header><text>The Secretary may withhold the transfer of any
successive one-third pending results of a financial audit.</text>
</subparagraph><subparagraph id="HBA750C95A9654BE8AFB26846C026F59F"><enum>(C)</enum><header>Transfers contingent on
Inspector General audits</header>
<clause id="H4D8046885F014592A762400C16F22814"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</clause><clause id="H31D05C3E1A4040349A5BE24279AFAA0A"><enum>(ii)</enum><header>Penalty for
misstatement</header><text>Any participating State that is found to have
intentionally misstated any report issued to the Secretary under the Program
shall be ineligible to receive any additional funds under the Program. Funds
that had been allocated or that would otherwise have been allocated to such
participating State shall be paid into the general fund of the Treasury for
reduction of the public debt.</text>
</clause><clause id="H05B0B92BE325498BAB9DADA344151FE4"><enum>(iii)</enum><header>Municipalities</header><text>For
purposes of this subparagraph, the term <quote>participating State</quote>
shall include a municipality given special permission to participate in the
Program, pursuant to section 204(d).</text>
</clause></subparagraph></paragraph><paragraph id="HB7BDCE0DE5194AB9B509F159DC8D2B59"><enum>(2)</enum><header>Transferred
amounts</header><text>Each amount transferred to a participating State under
this section shall remain available to the State until used by the State as
permitted under paragraph (3).</text>
</paragraph><paragraph id="H2940B83F206F4EABAE39A8BBA61E8CFB"><enum>(3)</enum><header>Use of transferred
funds</header><text>Each participating State may use funds transferred to it
under this section only—</text>
<subparagraph id="H5F63E463701945588C186561EA836724"><enum>(A)</enum><text>for making Federal
contributions to, or for the account of, an approved State program;</text>
</subparagraph><subparagraph id="H1CDF8C7F17F247709DEA7E6C69A87345"><enum>(B)</enum><text>as collateral for a
qualifying loan or swap funding facility;</text>
</subparagraph><subparagraph id="H86115B8C5914446193678D4105CD9E64"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="H052A5BA2911840A78AC9D702674638AC"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H9503F5B3ACE54C50B83847E2198EE86B"><enum>(4)</enum><header>Termination of
availability of amounts not transferred within 2 years of
participation</header><text>Any portion of a participating State’s allocated
amount that has not been transferred to the State under this section by the end
of the 2-year period beginning on the date that the Secretary approves the
State for participation may be deemed by the Secretary to be no longer
allocated to the State and no longer available to the State and shall be
returned to the General Fund of the Treasury.</text>
</paragraph><paragraph id="HB8DAA9040CDB4EA5A9FAC9AB2BB2878D"><enum>(5)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<subparagraph id="H9158039E6AEF47EEA7358AE0E39F30C2"><enum>(A)</enum><text>the term <term>allocated
amount</term> means the total amount of Federal funds allocated by the
Secretary under subsection (b) to the participating State; and</text>
</subparagraph><subparagraph id="H162025AC84764632A963BE73A26CBDA6"><enum>(B)</enum><text>the term
<term>one-third</term> means—</text>
<clause id="H489442DBCA494D98AE9A308575E04DD6"><enum>(i)</enum><text>in the case of the first
and second one-thirds, an amount equal to 33 percent of a participating State’s
allocated amount; and</text>
</clause><clause id="HAAC54911636C476195525257CC20903A"><enum>(ii)</enum><text>in the case of the last
one-third, an amount equal to 34 percent of a participating State’s allocated
amount.</text>
</clause></subparagraph></paragraph></subsection></section><section id="H0A9A72930C5341D299EE17AEC6C37FCC"><enum>204.</enum><header>Approving States for
participation</header>
<subsection id="HC5ADE881ED484CFF9C8F6BF389978F44"><enum>(a)</enum><header>Application</header><text>Any
State may apply to the Secretary for approval to be a participating State under
the Program and to be eligible for an allocation of Federal funds under the
Program.</text>
</subsection><subsection id="H5CCF25304B194D1AA2DB01349B141C9F"><enum>(b)</enum><header>General approval
criteria</header><text>The Secretary shall approve a State to be a
participating State, if—</text>
<paragraph id="H8E4D703A3EBF42549F36A6AA0390D7CE"><enum>(1)</enum><text>a specific department,
agency, or political subdivision of the State has been designated to implement
a State program and participate in the Program;</text>
</paragraph><paragraph id="H0FD1BA22C07B44FE96B05ED52383CA5D"><enum>(2)</enum><text>all legal actions
necessary to enable such designated department, agency, or political
subdivision to implement a State program and participate in the Program have
been accomplished;</text>
</paragraph><paragraph id="H43AA8BA2E3B54245979B3CA252E089DC"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="HAC20F5ABC5E84C6E9427F80C51EC2F25"><enum>(4)</enum><text>the State and the
Secretary have executed an allocation agreement that—</text>
<subparagraph id="H595668D7145248A79EC8515C27C9DA41"><enum>(A)</enum><text>conforms to the
requirements of this title;</text>
</subparagraph><subparagraph id="H296DBE15A4B34050B68D271BB342AD17"><enum>(B)</enum><text>ensures that the State
program complies with such national standards as are established by the
Secretary under section 209(a)(2);</text>
</subparagraph><subparagraph id="H4D9F0ABB6D1E45EDB1AD0B78E779F594"><enum>(C)</enum><text>sets forth internal
control, compliance, and reporting requirements as established by the
Secretary, and such other terms and conditions necessary to carry out the
purposes of this title, including an agreement by the State to allow the
Secretary to audit State programs;</text>
</subparagraph><subparagraph id="H07612EAAD29C4D9591AAD64BBB110578"><enum>(D)</enum><text>requires that the State
program be fully positioned, within 90 days of the State’s execution of the
allocation agreement with the Secretary, to act on providing the kind of credit
support that the State program was established to provide; and</text>
</subparagraph><subparagraph id="HF98DED295B894A67BB2BCD815953FE07"><enum>(E)</enum><text>includes an agreement by
the State to deliver to the Secretary, and update annually, a schedule
describing how the State intends to apportion among its State programs the
Federal funds allocated to the State.</text>
</subparagraph></paragraph></subsection><subsection id="H2E7B101C292442149DB2E7AEB8E303BF"><enum>(c)</enum><header>Contractual
arrangements for implementation of State programs</header><text>A State may be
approved to be a participating State, and be eligible for an allocation of
Federal funds under the Program, if the State has contractual arrangements for
the implementation and administration of its State program with—</text>
<paragraph id="HDE7C0835CDC84185BB2363C488032C06"><enum>(1)</enum><text>an existing, approved
State program administered by another State; or</text>
</paragraph><paragraph id="H6716A6B9AEA84894B425ABF0DAABD2F8"><enum>(2)</enum><text>an authorized agent of,
or entity supervised by, the State, including for-profit and not-for-profit
entities.</text>
</paragraph></subsection><subsection id="H612CCD2388BB43F880E2AF0F5E657157"><enum>(d)</enum><header>Special
permission</header><text></text>
<paragraph id="HF9038A51C71A495BA733797683E7D424"><enum>(1)</enum><header>Circumstances when a
municipality may apply directly</header><text>If a State does not, within 60
days after the date of enactment of this 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.</text>
</paragraph><paragraph id="H73B0878EFB0E4CE58A8A9E067191C1F4"><enum>(2)</enum><header>Timing requirements
applicable to municipalities applying directly</header><text>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.</text>
</paragraph><paragraph id="H75FF45A5AE094A8C821D39FDD8E4B00D"><enum>(3)</enum><header>Notices of intent and
applications from more than 1 municipality</header><text>A municipality of a
State may combine with 1 or more other municipalities of that State to file a
joint notice of intent to file and a joint application.</text>
</paragraph><paragraph id="H363B5EBFAD5E452889DA58D7581B751E"><enum>(4)</enum><header>Approval
criteria</header><text>The general approval criteria in paragraphs (2) and (4)
shall apply.</text>
</paragraph><paragraph id="HB6237E9B9A6640E4BDA0B34F5D2E4B96"><enum>(5)</enum><header>Allocation to
municipalities</header><text></text>
<subparagraph id="H7504C0D841024EAEA8F7950F464487B6"><enum>(A)</enum><header>If more than
3</header><text>If more than 3 municipalities, or combination of municipalities
as provided in paragraph (3), of a State apply for approval by the Secretary to
be participating municipalities under this subsection, and the applications
meet the approval criteria in paragraph (4), the Secretary shall allocate
Federal funds to the 3 municipalities with the largest populations.</text>
</subparagraph><subparagraph id="H6490E525CB7C4037947D57B4220D33AB"><enum>(B)</enum><header>If 3 or
fewer</header><text>If 3 or fewer municipalities, or combination of
municipalities as provided in paragraph (3), of a State apply for approval by
the Secretary to be participating municipalities under this subsection, and the
applications meet the approval criteria in paragraph (4), the Secretary shall
allocate Federal funds to each applicant municipality or combination of
municipalities.</text>
</subparagraph></paragraph><paragraph id="H9F4851926D8040D6BB51866F16A20258"><enum>(6)</enum><header>Apportionment of
allocated amount among participating municipalities</header><text>If the
Secretary approves municipalities to be participating municipalities under this
subsection, the Secretary shall apportion the full amount of the Federal funds
that are allocated to that State to municipalities that are approved under this
subsection in amounts proportionate to the population of those municipalities,
based on the most recent available decennial census.</text>
</paragraph><paragraph id="H1D982C0C779C44F6905E2090ACAE0947"><enum>(7)</enum><header>Approving State
programs for municipalities</header><text>If the Secretary approves
municipalities to be participating municipalities under this subsection, the
Secretary shall take into account the additional considerations in section
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.</text>
</paragraph></subsection></section><section id="HA787A31B35F748D1BDCCB0D24DC5E7DF"><enum>205.</enum><header>Approving State
capital access programs</header>
<subsection id="H4A1AF6904ED040F8B95FF347FB029DCD"><enum>(a)</enum><header>Application</header><text>A
participating State that establishes a new, or has an existing, State capital
access program that meets the eligibility criteria in subsection (c) may apply
to Secretary to have the State capital access program approved as eligible for
Federal contributions to the reserve fund.</text>
</subsection><subsection id="H96119527CBC54E738453F48F6BC08D2E"><enum>(b)</enum><header>Approval</header><text>The
Secretary shall approve such State capital access program as eligible for
Federal contributions to the reserve fund if—</text>
<paragraph id="H9B4DA25042694CF6A6F42BB7E8264C49"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H6C936A7A6C0345EEA89077CB10C7D98C"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="H10A0E3C1A1E0486A83E6639469B71D36"><enum>(3)</enum><text>the State satisfies the
requirements of subsections (a) and (b) of section 204; and</text>
</paragraph><paragraph id="H0CB62AF27D3C4E39AE6980350F8C6345"><enum>(4)</enum><text>the State capital access
program meets the eligibility criteria in subsection (c).</text>
</paragraph></subsection><subsection id="H13E30288E4654D049767BB3022A8E317"><enum>(c)</enum><header>Eligibility criteria
for State capital access programs</header><text>For a State capital access
program to be approved under this section, it must be a program of the State
that—</text>
<paragraph id="HCD6AB960ACED4AB4A98215BEF04CF87A"><enum>(1)</enum><text>provides portfolio
insurance for business loans based on a separate loan-loss reserve fund for
each financial institution;</text>
</paragraph><paragraph id="H3D9E6D4DC5F34D81A736CD4E0769AE0F"><enum>(2)</enum><text>requires insurance
premiums to be paid by the financial institution lenders and by the business
borrowers to the reserve fund to have their loans enrolled in the reserve
fund;</text>
</paragraph><paragraph id="H157CE595806041F3A89426E802EEA3F4"><enum>(3)</enum><text>provides for
contributions to be made by the State to the reserve fund in amounts at least
equal to the sum of the amount of the insurance premium charges paid by the
borrower and the financial institution to the reserve fund for any newly
enrolled loan; and</text>
</paragraph><paragraph id="HD7D449CE3360442EB24022BFCB5161C2"><enum>(4)</enum><text>provides its portfolio
insurance solely for loans that meet both the following requirements:</text>
<subparagraph id="H2D5EC82AE32245C49D14606B05B30744"><enum>(A)</enum><text>The borrower has 500
employees or less at the time that the loan is enrolled in the Program.</text>
</subparagraph><subparagraph id="H07CA6F839B94486A9ED83AF6D171FFC7"><enum>(B)</enum><text>The loan amount does not
exceed $5,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="HF189A3827562468381A674B2C993E1D0"><enum>(d)</enum><header>Federal contributions
to approved State capital access programs</header><text>A State capital access
program approved under this section will be eligible for receiving Federal
contributions to the reserve fund in an amount equal to the sum of the amount
of the insurance premium charges paid by the borrowers and by the financial
institution to the reserve fund for loans that meet the requirements in
subsection (c)(4). A participating State may use the Federal contribution to
make its contribution to the reserve fund of an approved State capital access
program.</text>
</subsection><subsection id="H06EDAFA6744A417588BD234769BF7CA5"><enum>(e)</enum><header>Minimum program
requirements for State capital access programs</header><text>The Secretary
shall, by regulation or other guidance, prescribe Program requirements that
meet the following minimum requirements:</text>
<paragraph id="H85111C2D4D6247D7B68C1B67D5C00F91"><enum>(1)</enum><header>Experience and
capacity</header><text>The participating State shall determine for each
financial institution that participates in the State capital access program,
after consultation with the appropriate Federal banking agency or, in the case
of a financial institution that is a 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.</text>
</paragraph><paragraph id="HCC40D6D80319424992505836E3866AD2"><enum>(2)</enum><header>Investment
authority</header><text>Subject to applicable State law, the participating
State may invest, or cause to be invested, funds held in a reserve fund by
establishing a deposit account at the financial institution lender in the name
of the participating State. In the event that funds in the reserve fund are not
deposited in such an account, such funds shall be invested in a form that the
participating State determines is safe and liquid.</text>
</paragraph><paragraph id="H95A259FBCE214759B5293F99EA0F9EF0"><enum>(3)</enum><header>Loan terms and
conditions to be determined by agreement</header><text>A loan to be filed for
enrollment in an approved State capital access program may be made with such
interest rate, fees, and other terms and conditions, and the loan may be
enrolled in the approved State capital access program and claims may be filed
and paid, as agreed upon by the financial institution lender and the borrower,
consistent with applicable law.</text>
</paragraph><paragraph id="HE1FB6EE30F6448A5BDE1CEDDE2CB08D1"><enum>(4)</enum><header>Lender capital
at-risk</header><text>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.</text>
</paragraph><paragraph id="HCF21E6A678104874803876468803507B"><enum>(5)</enum><header>Premium charges minimum
and maximum amounts</header><text>The insurance premium charges payable to the
reserve fund by the borrower and the financial institution lender shall be
prescribed by the financial institution lender, within minimum and maximum
limits that require that the sum of the insurance premium charges paid in
connection with a loan by the borrower and the financial institution lender may
not be less than 2 percent nor more than 7 percent of the amount of the loan
enrolled in the approved State capital access program.</text>
</paragraph><paragraph id="H781C13FC89644EB89E436067EBB8CCB2"><enum>(6)</enum><header>State
contributions</header><text>In enrolling a loan in an approved State capital
access program, the participating State may make a contribution to the reserve
fund to supplement Federal contributions made under this Program.</text>
</paragraph><paragraph id="H8024B08578A34D1580B994405039C3CF"><enum>(7)</enum><header>Loan purpose</header>
<subparagraph id="HFED1AC4DD3C14583861833562466D2A8"><enum>(A)</enum><header>Particular loan purpose
requirements and prohibitions</header><text>In connection with the filing of a
loan for enrollment in an approved State capital access program, the financial
institution lender—</text>
<clause id="HB5372F88FF84410E81A28E45AAA98083"><enum>(i)</enum><text>shall obtain an assurance
from each borrower that—</text>
<subclause id="H7B0B981A52104DBD86EDDB2EC2D9CDE7"><enum>(I)</enum><text>the proceeds of the loan
will be used for a business purpose;</text>
</subclause><subclause id="H43B57BA773F54A2EBFF81B9945AE2D27"><enum>(II)</enum><text>the loan will not be
used to finance such business activities as the Secretary, by regulation, may
proscribe as prohibited loan purposes for enrollment in an approved State
capital access program; and</text>
</subclause><subclause id="H4D1118B021CF4F8F99C1939FC063C0C1"><enum>(III)</enum><text>the borrower is
not—</text>
<item id="HB24BBAF852C740C38759DE2EBB119DA8"><enum>(aa)</enum><text display-inline="yes-display-inline">an executive officer, director, or
principal shareholder of the financial institution lender;</text>
</item><item id="HC9EAE9A734834BFFBF963DBA6BC8971C"><enum>(bb)</enum><text>a member of the
immediate family of an executive officer, director, or principal shareholder of
the financial institution lender; or</text>
</item><item id="H287DB01D31B147A3BFCE77C7A45F5D8F"><enum>(cc)</enum><text>a related interest of
any such executive officer, director, principal shareholder, or member of the
immediate family;</text>
</item></subclause></clause><clause id="H2E7E5CBEFD6044538E9F65CF4DA5E54E"><enum>(ii)</enum><text>shall provide assurances
to the participating State that the loan has not been made in order to place
under the protection of the approved State capital access program prior debt
that is not covered under the approved State capital access program and that is
or was owed by the borrower to the financial institution lender or to an
affiliate of the financial institution lender;</text>
</clause><clause id="HDDFAA93E35384B4C8BB2CA62206E28AB"><enum>(iii)</enum><text>shall not allow the
enrollment of a loan to a borrower that is a refinancing of a loan previously
made to that borrower by the financial institution lender or an affiliate of
the financial institution lender; and</text>
</clause><clause id="H3837030AE5784DE5B81AF9ED8313106C"><enum>(iv)</enum><text>may include additional
restrictions on the eligibility of loans or borrowers that are not inconsistent
with the provisions and purposes of this title, including compliance with all
applicable Federal and State laws, regulations, ordinances, and Executive
orders.</text>
</clause></subparagraph><subparagraph id="H297EFAE63E9C42128F28DFCC0AD4C4BC"><enum>(B)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this subsection, the terms
<term>executive officer</term>, <term>director</term>, <term>principal
shareholder</term>, <term>immediate family</term>, and <quote>related
interest</quote> refer to the same relationship to a financial institution
lender as the relationship described in part 215 of title 12 of the Code of
Federal Regulations, or any successor to such part.</text>
</subparagraph></paragraph></subsection></section><section id="HD81DC5553EF94216A9F3AF50B8BC5FA0"><enum>206.</enum><header>Approving collateral
support and other innovative credit access and guarantee initiatives for small
businesses and manufacturers</header>
<subsection id="H8A16872140A445A99014AE46E9704D62"><enum>(a)</enum><header>Application</header><text>A
participating State that establishes a new, or has an existing, credit support
program that meets the eligibility criteria in subsection (c) may apply to the
Secretary to have the State other credit support program approved as eligible
for Federal contributions to, or for the account of, the State program.</text>
</subsection><subsection id="HD68707CF124F48AEA18B4BDE991F1974"><enum>(b)</enum><header>Approval</header><text>The
Secretary shall approve such State other credit support program as eligible for
Federal contributions to, or for the account of, the program if—</text>
<paragraph id="H655E7C34545A4885B794AD51DCB0C9A7"><enum>(1)</enum><text>the Secretary determines
that the State satisfies the requirements of paragraphs (1) through (3) of
section 205(b);</text>
</paragraph><paragraph id="H3051BF40A2C448AD8FE409B5F2D3D1FF"><enum>(2)</enum><text>the Secretary determines
that the State other credit support program meets the eligibility criteria in
subsection (c);</text>
</paragraph><paragraph id="H0C13F1AE838A4DFC845D9C28F883801B"><enum>(3)</enum><text>the Secretary determines
the State other credit support program to be eligible based on the additional
considerations in subsection (d); and</text>
</paragraph><paragraph id="H4C3AD2777A5A4F738F5F0DE131E5D56E"><enum>(4)</enum><text>within 9 months after the
date of enactment of this title, the State has filed with Treasury a complete
application for Treasury approval.</text>
</paragraph></subsection><subsection id="H09ABAE92B6C7425383FB55AF21F21861"><enum>(c)</enum><header>Eligibility criteria
for State other credit support programs</header><text>For a State other credit
support program to be approved under this section, it must be a program of the
State that—</text>
<paragraph id="H3514B7E52C234D89A75EBB69CA6DE147"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H6EDFFEF2B0BC44ACA38070B0D6BBE2D3"><enum>(2)</enum><text>can demonstrate a
reasonable expectation that, when considered with all other State programs of
the State, such State programs together have the ability to use amounts of new
Federal contributions to, or for the account of, all such programs in the State
to cause and result in amounts of new small business lending at least 10 times
the new Federal contribution amount;</text>
</paragraph><paragraph id="HD4985664DDB747DA80EBCFAF0958F6DC"><enum>(3)</enum><text>for those State other
credit support programs that provide their credit support through 1 or more
financial institution lenders, requires the financial institution lenders to
have a meaningful amount of their own capital resources at risk in their small
business lending; and</text>
</paragraph><paragraph id="H4348E77CF7AD48FA92372BE121BDBBF6"><enum>(4)</enum><text>extends credit support
that—</text>
<subparagraph id="H22AB7B2CA196421DBD2C95C02BF2074B"><enum>(A)</enum><text>targets an average
borrower size of 500 employees or less;</text>
</subparagraph><subparagraph id="HA452B5F5FEE14A09B809CA778107C955"><enum>(B)</enum><text>does not extend credit
support to borrowers that have more than 750 employees;</text>
</subparagraph><subparagraph id="HECBE1A6A3A334BA3A83AF186163373DC"><enum>(C)</enum><text>targets support towards
loans with an average principal amount of $5,000,000 or less; and</text>
</subparagraph><subparagraph id="H5B822FDA806A434590CA034D7AF3EA2A"><enum>(D)</enum><text>does not extend credit
support to loans that exceed a principal amount of $20,000,000.</text>
</subparagraph></paragraph></subsection><subsection id="H939234C97E824EC6BA3D9EECF6E9D204"><enum>(d)</enum><header>Additional
considerations</header><text>In making a determination that a State other
credit support program is eligible for Federal contributions to, or for the
account of, the State program, the Secretary shall take into account the
following additional considerations:</text>
<paragraph id="HCFADB687B8BA4A37A4D32C794410AB43"><enum>(1)</enum><text>The anticipated benefits
to the State, its businesses, and its residents to be derived from the Federal
contributions to, or for the account of, the approved State other credit
support program, including the extent to which resulting small business lending
will expand economic opportunities.</text>
</paragraph><paragraph id="HAE128F40719A4E839C7BB2AA06B98EB6"><enum>(2)</enum><text>The operational capacity,
skills, and experience of the management team of the State other credit support
program.</text>
</paragraph><paragraph id="H468DD87EFFC045519858BCFDB02BA333"><enum>(3)</enum><text>The capacity of the State
other credit support program to manage increases in the volume of its small
business lending.</text>
</paragraph><paragraph id="H0D6A39A2A7C943689432CD617EADFFB0"><enum>(4)</enum><text>The internal accounting
and administrative controls systems of the State other credit support program,
and the extent to which they can provide reasonable assurance that funds of the
State program are safeguarded against waste, loss, unauthorized use, or
misappropriation.</text>
</paragraph><paragraph id="HE16D94B215DF4C87832D613231D0BF4E"><enum>(5)</enum><text>The soundness of the
program design and implementation plan of the State other credit support
program.</text>
</paragraph></subsection><subsection id="HE845297176644FD2B29023B5A28CF6E6"><enum>(e)</enum><header>Federal contributions
to approved State other credit support programs</header><text>A State other
credit support program approved under this section will be eligible for
receiving Federal contributions to, or for the account of, the State program in
an amount consistent with the schedule describing the apportionment of
allocated Federal funds among State programs delivered by the State to the
Secretary under the allocation agreement.</text>
</subsection><subsection id="H0E17E1BAC93A4BC7A0726E3D4699D019"><enum>(f)</enum><header>Minimum program
requirements for State other credit support programs</header>
<paragraph id="HBEB0C6E5035D45F5A2BB53F7C6937D59"><enum>(1)</enum><header>Fund to
prescribe</header><text>The Secretary shall, by regulation or other guidance,
prescribe Program requirements for approved State other credit support
programs.</text>
</paragraph><paragraph id="HDA1321E692184DDFB877410F3866C691"><enum>(2)</enum><header>Considerations for
fund</header><text>In prescribing minimum Program requirements for approved
State other credit support programs, the Secretary shall take into
consideration, to the extent the Secretary determines applicable and
appropriate, the minimum Program requirements for approved State capital access
programs in section 205(e).</text>
</paragraph></subsection></section><section id="H9268697ABB69402583FE31545A3BE7A8"><enum>207.</enum><header>Reports</header>
<subsection id="H772E5614FA3B4777AD584F662DEB4242"><enum>(a)</enum><header>Quarterly use-of-funds
report</header>
<paragraph id="H99A5FB52B0CC43149579F80BACAA0B10"><enum>(1)</enum><header>In
general</header><text>Not later than 30 days after the beginning of each
calendar quarter, beginning after the first full calendar quarter to occur
after the date the Secretary approves a State for participation, the
participating State shall submit to the Secretary a report on the use of
Federal funding by the participating State during the previous calendar
quarter.</text>
</paragraph><paragraph id="HC3A7750C5440453E809A29E3139FA4D2"><enum>(2)</enum><header>Report
contents</header><text>The report shall—</text>
<subparagraph id="HF4F35EC82F4242FBB68B2C69DF14C393"><enum>(A)</enum><text>indicate the total amount
of Federal funding used by the participating State;</text>
</subparagraph><subparagraph id="H3D2AF8D4D467481384F9F2E9551CE7A1"><enum>(B)</enum><text>include a certification
by the participating State that—</text>
<clause id="H3C877101050B4DA6A57DF032482C087E"><enum>(i)</enum><text>the information provided
in accordance with subparagraph (A) is accurate;</text>
</clause><clause id="H85B2BF9E900542EC85386C7B62E83039"><enum>(ii)</enum><text>funds continue to be
available and legally committed to contributions by the State to, or for the
account of, approved State programs, less any amount that has been contributed
by the State to, or for the account of, approved State programs subsequent to
the State being approved for participation in the Program; and</text>
</clause><clause id="H49EAAEB860654E14A47E53A8373711B8"><enum>(iii)</enum><text>the participating State
is implementing its approved State program or programs in accordance with this
title and regulations issued pursuant to section 210.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HA7BA613F404F45CE82077CF55C9A2715"><enum>(b)</enum><header>Annual
report</header><text>Not later than March 31 of each year, beginning March 31,
2011, each participating State shall submit to the Secretary an annual report
that shall include the following information:</text>
<paragraph id="H949D62980C1A4F5F87C0C37D0E34633E"><enum>(1)</enum><text>The number of borrowers
that received new loans originated under the approved State program or programs
after the State program was approved as eligible for Federal
contributions.</text>
</paragraph><paragraph id="HC6AF179B603D4A109A31B4C07AFF19F9"><enum>(2)</enum><text>The total amount of such
new loans.</text>
</paragraph><paragraph id="HBCB6881B270B47C393D6CC431D087A93"><enum>(3)</enum><text>Breakdowns by industry
type, loan size, annual sales, and number of employees of the borrowers that
received such new loans.</text>
</paragraph><paragraph id="H8C28BA4589CE4299845AFF4B3E438191"><enum>(4)</enum><text>The zip code of each
borrower that received such a new loan.</text>
</paragraph><paragraph id="HB8B585054A5F40B4B2DFCCD91FA2AA1E"><enum>(5)</enum><text>Such other data as the
Secretary, in the Secretary’s sole discretion, may require to carry out the
purposes of the Program.</text>
</paragraph></subsection><subsection id="H742FEB16AE5E4C79A99DDB9BBBF5BBC4"><enum>(c)</enum><header>Form</header><text>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.</text>
</subsection><subsection id="H868E771B367945CEAC18D21E50FA2948"><enum>(d)</enum><header>Termination of
reporting requirements</header><text>The requirement to submit reports under
subsections (a) and (b) shall terminate for a participating State with the
submission of the completed reports due on the first March 31 to occur after 5
complete 12-month periods after the State is approved by the Secretary to be a
participating State.</text>
</subsection></section><section id="H6386D077625145D2AE8A128697575D2A"><enum>208.</enum><header>Remedies for State
program termination or failures</header>
<subsection id="HFC1C69F61A994462A54857BFB0AF7E26"><enum>(a)</enum><header>Remedies</header><text></text>
<paragraph id="H09C59FDD378A4919A39DF303BC0B2B21"><enum>(1)</enum><header>In
general</header><text>If any of the events listed in paragraph (2) occur, the
Secretary, in the Secretary’s discretion, may—</text>
<subparagraph id="H198F02FC73CF45AFA3499320F4C468D2"><enum>(A)</enum><text>reduce the amount of
Federal funds allocated to the State under the Program; or</text>
</subparagraph><subparagraph id="HDA27869D60834415BC1E35DBCFEE55E9"><enum>(B)</enum><text>terminate any further
transfers of allocated amounts that have not yet been transferred to the
State.</text>
</subparagraph></paragraph><paragraph id="HE41488DA595D413DB020ED60B9998F83"><enum>(2)</enum><header>Causal
events</header><text>The events referred to in paragraph (1) are—</text>
<subparagraph id="H079255871781439DAD656AA305E457D3"><enum>(A)</enum><text>termination by a
participating State of its participation in the Program;</text>
</subparagraph><subparagraph id="H9825FB8CA17041168AD43573650A7D53"><enum>(B)</enum><text>failure on the part of a
participating State to submit complete reports under section 207 on a timely
basis; or</text>
</subparagraph><subparagraph id="H0C4731019E804F99803A3B15FDAC3505"><enum>(C)</enum><text>noncompliance by the
State with the terms of the allocation agreement between the Secretary and the
State.</text>
</subparagraph></paragraph></subsection><subsection id="HF83C4275CF6B49EF86B60D43A5B34810"><enum>(b)</enum><header>Deallocated amounts to
be reallocated</header><text>If, after 13 months, any portion of the amount of
Federal funds allocated to a participating State is deemed by the Secretary to
be no longer allocated to the State after actions taken by the Secretary under
subsection (a)(1), the Secretary shall reallocate that portion among the
participating States, excluding the State whose allocated funds were deemed to
be no longer allocated, as provided in section 203(b).</text>
</subsection></section><section id="HFEC67D0776334207914878DB41CD467B"><enum>209.</enum><header>Implementation and
administration</header>
<subsection id="H10C248C347BB44C58CF4DEBB1B014DBB"><enum>(a)</enum><header>General authorities and
duties</header><text>The Secretary shall—</text>
<paragraph id="H3A12B8247A3A4F039F8AA22B0DFE2918"><enum>(1)</enum><text>consult with the
Administrator of the Small Business Administration and the appropriate Federal
banking agencies on the administration of the Program;</text>
</paragraph><paragraph id="HA71EF865FBE54E6AA5ADA7121603C2C8"><enum>(2)</enum><text>establish minimum
national standards for approved State programs;</text>
</paragraph><paragraph id="H982A61882C9C4E8CAF50D7350740E599"><enum>(3)</enum><text>provide technical
assistance to States for starting State programs and generally disseminate best
practices;</text>
</paragraph><paragraph id="H11F41B03480E4F078CD2C2A5D1E78E65"><enum>(4)</enum><text>manage, administer, and
perform necessary program integrity functions for the Program; and</text>
</paragraph><paragraph id="H598773CA63A1460A8AA290F50AC7D485"><enum>(5)</enum><text>ensure adequate oversight
of the approved State programs, including oversight of the cash flows,
performance, and compliance of each approved State program.</text>
</paragraph></subsection><subsection id="H4F591CE10A124798825DF6EC5FB3EBB0"><enum>(b)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be 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.</text>
</subsection><subsection id="HC751603A20EE43C8BBB3CA971E752EDF"><enum>(c)</enum><header>Termination of
secretary’s program administration functions</header><text>The authorities and
duties of the Secretary to implement and administer the Program shall terminate
at the end of the 7-year period beginning on the date of enactment of this
title.</text>
</subsection></section><section id="H3F08480E1D7C4FC1A552B0E6FA9D681E"><enum>210.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary, in consultation with the
Administrator of the Small Business Administration, shall issue such
regulations and other guidance as the Secretary determines necessary or
appropriate to implement this title including, 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.</text>
</section><section id="HE647F0176D5F4685B7A926C87AA89C92"><enum>211.</enum><header>Oversight and
audits</header>
<subsection id="HD92CCED862954128B0825ED23573AE94"><enum>(a)</enum><header>Inspector General
oversight</header><text display-inline="yes-display-inline">The Inspector
General of the Department of the Treasury shall conduct, supervise, and
coordinate audits and investigations of the use of funds made available under
the Program.</text>
</subsection><subsection id="HBA3902B900F9433899E81DA0C1F80670"><enum>(b)</enum><header>GAO audit</header><text display-inline="yes-display-inline">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.</text>
</subsection></section>
May 27, 2010
Reported with an amendment, committed to the Committee of
the Whole House on the State of the Union, and ordered to be
printed