II 111th CONGRESS 1st Session S. 1817 IN THE SENATE OF THE UNITED STATES October 20, 2009 Mr. Brown introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To temporarily raise the limits on certain loans under the Small Business Act and the Small Business Investment Act of 1958, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Emergency Loan Relief Act of 2009.

2.

Temporary increase in maximum loan amounts and use of refinances

(a)

In general

(1)

Maximum amounts for 7(a) loans

Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking $1,500,000 (or if the gross loan amount would exceed $2,000,000 and inserting $4,500,000 (or if the gross loan amount would exceed $5,000,000. (2)

Maximum loan amounts under 504 program

Section 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended— (A)in clause (i), by striking $1,500,000 and inserting $4,000,000; (B)in clause (ii), by striking $2,000,000 and inserting $5,000,000; (C)in clause (iii), by striking $4,000,000 and inserting $5,500,000; (D)in clause (iv), by striking $4,000,000 and inserting $5,500,000; and (E)in clause (v), by striking $4,000,000 and inserting $5,500,000. (3)

Maximum loan limits under microloan program

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended— (A)in paragraph (1)(B)(iii), by striking $35,000 and inserting $50,000; (B)in paragraph (3)(E), by striking $35,000 each place it appears and inserting $50,000; and (C)in paragraph (11)(B), by striking $35,000 and inserting $50,000. (4)

Low interest refinancing under the local development business loan program

Section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended— (A)in subparagraph (A), by inserting , including a financing that does not involve an expansion of a small business concern, after under this title; and (B)by adding at the end the following: (C)

Refinancing not involving expansions

If the project for which a financing is approved under this title does not involve the expansion of a small business concern, any amount of existing indebtedness may be refinanced and added to the project cost if— (i)the total amount of the financing is not more than 80 percent of the value of the collateral for the financing; (ii)the small business concern has been in operation for all of the 2-year period ending on the date of the financing; (iii)the existing indebtedness was not incurred during the 2-year period ending on the date of the financing; (iv)the existing indebtedness is not subject to a guarantee by any Federal agency; and (v)in any case in which the Administrator determines that there will be an additional cost for making a loan that includes the refinancing of the existing indebtedness, the borrower agrees to pay a fee in an amount equal to the anticipated additional cost. . (5)

Business stabilization program

Section 506(d) of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 157) is amended by striking $35,000 and inserting $50,000. (b)

Fees

During the period beginning on the date of enactment of this Act and ending on January 1, 2011— (1)with respect to each loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), the Administrator of the Small Business Administration (in this subsection referred to as the Administrator) shall, in lieu of the fees otherwise applicable under paragraphs (23)(A) and (18)(A) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), collect no fee; (2)the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(2) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(2)) for an institution described in subclause (I), (II), or (III) of section 502(3)(B)(i) of that Act (15 U.S.C. 696(3)(B)(i)), for any loan guarantee or project subject to such subsection, collect no fee; and (3)the Administrator shall, in lieu of the fee otherwise applicable under section 503(d)(3) of the Small Business Investment Act of 1958 (15 U.S.C. 697(d)(3)), collect no fee. (c)

Prospective repeal

(1)

In general

(A)

Maximum amounts for 7(a) loans

Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking $4,500,000 (or if the gross loan amount would exceed $5,000,000 and inserting $1,500,000 (or if the gross loan amount would exceed $2,000,000. (B)

Maximum loan amounts under 504 program

Section 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended— (i)in clause (i), by striking $4,000,000 and inserting $1,500,000; (ii)in clause (ii), by striking $5,000,000 and inserting $2,000,000; (iii)in clause (iii), by striking $5,500,000 and inserting $4,000,000; (iv)in clause (iv), by striking $5,500,000 and inserting $4,000,000; and (v)in clause (v), by striking $5,500,000 and inserting $4,000,000. (C)

Maximum loan limits under microloan program

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended— (i)in paragraph (1)(B)(iii), by striking $50,000 and inserting $35,000; (ii)in paragraph (3)(E), by striking $50,000 each place it appears and inserting $35,000; and (iii)in paragraph (11)(B), by striking $50,000 and inserting $35,000. (D)

Low interest refinancing under the local development business loan program

Section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended— (i)in subparagraph (A), by striking , including a financing that does not involve an expansion of a small business concern,; and (ii)by striking subparagraph (C). (2)

Effective date

The amendments made by paragraph (1) shall take effect on January 1, 2011.