Treasury loan guarantees and interest rate subsidies

(a)

Definitions

For purposes of this section, the following definitions shall apply: (1)

Secretary

The term Secretary means the Secretary of the Treasury. (2)

Successful small business

The term successful small business means any United States company or enterprise which the Secretary determines— (A)maintains a long-term United States growth plan that meets the criteria established by the Secretary under this section; (B)as of the time of the determination, is experiencing financial performance and achieving a balance sheet would have qualified such company or enterprise for a certain level of loan from primary lending sources of such company or enterprise as of June 1, 2008, on the basis of credit and underwriting criteria in effect on such date, but cannot get access to loans from such lending sources as of the date of such determination because of current tighter credit and underwriting criteria; and (C)in the most recent calendar year had an average of not fewer than 5 employees and not more than 500 employees. (b)

Establishment of criteria and procedures; regulations

The Secretary shall— (1)establish criteria for the establishment and maintenance of a long-term United States growth plan for any company or enterprise seeking incentives under this Act, including any applicable components of such plan, such as capital development, marketing and distribution within the United States, and expanded employment of United States workers; (2)establish criteria for United States expansion plans of successful small businesses that would qualify such companies for any incentives under this Act; (3)establish procedures for carrying out the parameters and components of the loan guarantee and interest rate subsidy programs under this section, a manner for allocating available amounts among qualified recipients, and the procedures for carrying out such programs; (4)establish procedures and forms for applying for loan guarantees and interest rate subsidies under this section; (5)establish an information program to rapidly disseminate information about the programs and such procedures to all companies and enterprises who may qualify for any such program and to the general public; and (6)take such other action and prescribe such regulations as the Secretary determines are appropriate to carry out this section. (c)

Loan guarantee program

The Secretary shall establish and maintain a program to provide loan guarantees, of not more than 80 percent of the amount of the principal of the loan to which the guarantee applies, to banks and other lenders that will allow such banks and lenders to provide loans at the lowest collateralized rate available to any successful small business for the purpose of facilitating the company’s United States expansion plans. (d)

Interest rate subsidy program

The Secretary shall establish an interest rate subsidy program under which the Secretary would pay 1 percentage point of interest on any loan made by any bank or other lender to any successful small business for the purpose of facilitating the company’s United States expansion plans to the extent the annual percentage rate on the loan does not exceed the lowest collateralized rate available from the bank or lender to any successful small business, minus the rate paid by the Secretary. (e)

Coordination

The Secretary— (1)shall consult with the Administrator of the Small Business Administration in establishing the programs under subsections (c) and (d); and (2)may make such arrangements with such Administrator as the Secretary determines to be appropriate to provide for the administration of such programs, or any aspect of such programs, by the Administrator. (f)

Sunset

No new loan guarantee or interest rate subsidy may be entered into under any program under this section after the end of the 5-year period beginning on the date of the enactment of this Act.