Low-interest refinancing under the local development business loan program

Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended by adding at the end the following:

(8)

Temporary authority for debt refinancing of commercial real estate

(A)

In general

During the period beginning on the date of enactment of this paragraph and ending on September 30, 2012, notwithstanding paragraph (7), the Administrator may approve, for financing under this title, the refinancing of indebtedness that is secured by a lien on commercial real estate or equipment of a small business concern under such terms and conditions as the Administrator determines appropriate, except at a minimum such terms and conditions shall include the following: (i)The existing indebtedness is maturing not more than one year after the loan approval date. (ii)The proceeds of the existing indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment. (iii)The small business concern has been current on all payments due on the existing indebtedness for a period beginning on a date that is not less than 1 year before the date of refinancing and ending on the date of refinancing. (iv)At the time of refinancing, the lien shall be assigned or released in a manner that ensures that the financing under this title is in the same lien position as the existing indebtedness. (v)The existing indebtedness was incurred for the benefit of the small business concern. (vi)The financing under this title will be used only for refinancing existing indebtedness or costs relating to such refinancing. (vii)The amount being refinanced may not exceed 90 percent of the appraised value of the commercial real estate or equipment on the date of refinancing or 100 percent of the outstanding principal amount of the existing indebtedness, whichever is less, plus allowable closing costs as determined by the Administrator. (viii)Notwithstanding any other provision of this title, for a refinancing under this paragraph— (I)not less than 50 percent of the appraised value of the commercial real estate or equipment on the date of refinancing shall come from the institutions described in subclauses (I), (II) or (III) of paragraph (3)(B)(i): Provided, That if the indebtedness being refinanced pursuant to this paragraph is held by such an institution, or an affiliate thereof, that is providing funds for the refinancing, the institution shall contribute not less than 70 percent of such appraised value of the commercial real estate or equipment; and (II)the remaining funds needed for the refinancing (including closing costs) shall come from the development company. (ix)In addition to the other fees imposed under this title, the Administrator shall assess, collect, and retain such annual fees in amounts necessary to reduce to zero the cost (as that term is defined in section 502 of the Federal Credit Reform Act of 1990) to the Administrator of making guarantees under the authority of section 503(a) with respect to refinancings under this paragraph. (x)The temporary fee elimination authorized under section 501(b) of the American Recovery and Reinvestment Act of 2009, Public Law 111–5, shall not apply to any refinancing made under this paragraph. (xi)No fee reduction or elimination applicable to loans under this title shall apply to loans under this paragraph. (xii)No portion of the indebtedness may be subject to a guarantee by a Federal agency. (xiii)The development company may charge the small business concern a processing fee of up to 50 basis points more than the amount that the Administrator authorizes under section 120.971(a)(1) of title 13, Code of Federal Regulations, as in effect on January 1, 2010. (B)

Total amount of loans

The Administrator may provide not more than a total of $7,500,000,000 of financing under this paragraph for each fiscal year. (C)

Nondelegation

Notwithstanding section 508(e) of this title, the Administrator may not permit a premier certified lender to approve or disapprove an application for assistance under this paragraph. (D)

Term appointments

(i)To carry out the authority under this paragraph, the Administrator may authorize term appointments within the Administration under subchapter I of chapter 33 of title 5, United States Code, for a period of not less than 1 year and not more than 6 years. (ii)Notwithstanding chapter 33 of title 5, United States Code, or any other provision of law relating to the examination, certification, and appointment of individuals in the competitive service, the Administrator may convert an employee serving under a term appointment to a permanent appointment in the competitive service within the Administration without further competition if— (I)such individual was appointed under open, competitive examination under subchapter I of chapter 33 of title 5, United States Code, to the term position; (II)the announcement for the term appointment from which the conversion is made stated that there was potential for subsequent conversion to a career-conditional or career appointment; (III)the employee has completed at least 2 years of current continuous service under a term appointment in the competitive service; (IV)the employee’s performance under such term appointment was at least fully successful or equivalent; and (V)the position to which such employee is being converted under this section is in the same occupational series, is in the same geographic location, and provides no greater promotion potential than the term position for which the competitive examination was conducted. (iii)Notwithstanding chapter 33 of title 5, United States Code, or any other provision of law relating to the examination, certification, and appointment of individuals in the competitive service, the Administrator may convert an employee serving under a term appointment to a permanent appointment in the competitive service within the Administration through internal competitive promotion procedures if the conditions under subclauses (I) through (IV) of subparagraph (D)(ii) are met. (iv)An employee converted under this subparagraph becomes a career-conditional employee, unless the employee has otherwise completed the service requirements for career tenure. (v)An employee converted to career or career-conditional employment under this subparagraph acquires competitive status upon conversion. (E)

Elimination of pension offset for certain rehired federal retirees

(i)

In general

To carry out the authority under this paragraph, the Administrator may waive the application of section 8344 or 8468 of title 5, United States Code, on a case-by-case basis for employment of an annuitant. (ii)

Procedures

The Administrator shall prescribe procedures for the exercise of authority under this subparagraph, including— (I)criteria for any exercise of authority; and (II)procedures for a delegation of authority. (iii)

Effect of waiver

An employee as to whom a waiver under this subparagraph is in effect shall not be considered an employee for purposes of subchapter III of chapter 83, or chapter 84, of title 5, United States Code. (F)

Emergency rulemaking authority

(i)The Administrator shall— (I)not later than 90 days after the date of enactment of the Small Business Asset Investment and Modernization (AIM) Act of 2010, without providing notice or opportunity for comment, issue interim regulations implementing this paragraph; and (II)not later than 180 days after the date of enactment of the Small Business Asset Investment and Modernization (AIM) Act of 2010, after providing notice and opportunity for comment, issue final regulations implementing this paragraph. (ii)The interim regulations issued under clause (i)(I) shall cease to be effective on the date that the Administrator issues final regulations under clause (i)(II).