II 111th CONGRESS 1st Session S. 1832 IN THE SENATE OF THE UNITED STATES October 21, 2009 Ms. Landrieu (for herself, Mr. Kerry, Mrs. Shaheen, Mr. Casey, Mr. Cardin, and Mr. Harkin) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To increase loan limits for small business concerns, provide for low interest refinancing for small business concerns, and for other purposes.

1.

Short title

This Act may be cited as the Small Business Access to Capital Act of 2009.

2.

Section 7(a) business loans

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended— (1)in paragraph (2)(A)— (A)in clause (i), by striking 75 percent and inserting 90 percent; and (B)in clause (ii), by striking 85 percent and inserting 90 percent; and (2)in paragraph (3)(A), 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.

3.

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 by adding at the end the following: (C)

Refinancing not involving expansions

(i)

In general

A project that does not involve the expansion of a small business concern may include the refinancing of existing indebtedness if— (I)the 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)for a loan for which the Administrator determines 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. (ii)

No job creation goals

A financing may be approved under this subparagraph regardless of whether the project meets the job creation goals under subsection (d) or (e) of section 501. .

4.

Microloans

(a)

Marketing, management, and technical assistance grants

Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is amended— (1)in subparagraph (A)— (A)in the first sentence, by striking and subject to subparagraph (B); and (B)in the second sentence— (i)by striking each intermediary meeting the requirements of subparagraph (B) and inserting an intermediary; and (ii)by striking 25 percent and inserting 50 percent; (2)by striking subparagraph (B); and (3)by striking subparagraph (C)(iii). (b)

Microloan amounts

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended— (1)in paragraph (1)(B)(iii), by striking $35,000 and inserting $50,000; (2)in paragraph (3)(E), by striking $35,000 each place it appears and inserting $50,000; and (3)in paragraph (11)(B), by striking $35,000 and inserting $50,000.

5.

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— (1)in clause (i), by striking $1,500,000 and inserting $5,000,000; (2)in clause (ii), by striking $2,000,000 and inserting $5,000,000; and (3)in clause (iii), by striking $4,000,000 and inserting $5,500,000.

6.

New Markets Venture Capital company investment limitations

Section 355 of the Small Business Investment Act of 1958 (15 U.S.C. 689d) is amended by adding at the end the following: (e)

Investment limitations

(1)

Definition

In this subsection, the term covered New Markets Venture Capital company means a New Markets Venture Capital company— (A)granted final approval by the Administrator under section 354(e) on or after March 1, 2002; and (B)that has obtained a financing from the Administrator. (2)

Limitation

Except to the extent approved by the Administrator, a covered New Markets Venture Capital company may not acquire or issue commitments for securities under this title for any single enterprise in an aggregate amount equal to more than 10 percent of the sum of— (A)the regulatory capital of the covered New Markets Venture Capital company; and (B)the total amount of leverage projected in the participation agreement of the covered New Markets Venture Capital. .

7.

Extramural research and development budget of the National Institutes of Health

Title VIII of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 176) is amended in the matter under the heading Office of the Director under the heading National Institutes of Health under the heading Department of Health and Human Services, by inserting after 638(n)(1): the following: Provided further, That not later than September 30, 2010, of the amount appropriated under this heading, $150,000,000 shall be obligated to be expended with the programs of the National Institutes of Health described in the previous proviso:.

8.

Business stabilization program

Section 506(c) of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 157) is amended by striking but shall not include and all that follows through enactment of this Act.

9.

Prospective repeals

(a)

Amendments

(1)

Section 7(a) business loans

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended— (A)in paragraph (2)(A)— (i)in clause (i), by striking 90 percent and inserting 75 percent; and (ii)in clause (ii), by striking 90 percent and inserting 85 percent; and (B)in paragraph (3)(A), by striking $4,500,000 and inserting $3,750,000. (2)

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 by striking subparagraph (C). (b)

Effective date

The amendments made by this section shall take effect on October 1, 2010.