[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2780 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2780

     To amend the Small Business Act to establish a small business 
                  intermediary lending pilot program.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 17, 2009

   Mr. Levin introduced the following bill; which was read twice and 
    referred to the Committee on Small Business and Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
     To amend the Small Business Act to establish a small business 
                  intermediary lending pilot program.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Intermediary Lending 
Pilot Program Act of 2009''.

SEC. 2. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

    (a) In General.--Section 7 of the Small Business Act is amended by 
striking subsection (l) and inserting the following:
    ``(l) Small Business Intermediary Lending Pilot Program.--
            ``(1) Definitions.--In this subsection--
                    ``(A) the term `eligible intermediary'--
                            ``(i) means a private, nonprofit entity 
                        that--
                                    ``(I) seeks or has been awarded a 
                                loan from the Administrator to make 
                                loans to small business concerns under 
                                this subsection; and
                                    ``(II) has not less than 1 year of 
                                experience making loans to startup, 
                                newly established, or growing small 
                                business concerns; and
                            ``(ii) includes--
                                    ``(I) a private, nonprofit 
                                community development corporation;
                                    ``(II) a consortium of private, 
                                nonprofit organizations or nonprofit 
                                community development corporations; and
                                    ``(III) an agency of or nonprofit 
                                entity established by a Native American 
                                Tribal Government; and
                    ``(B) the term `Program' means the small business 
                intermediary lending pilot program established under 
                paragraph (2).
            ``(2) Establishment.--There is established a 3-year small 
        business intermediary lending pilot program, under which the 
        Administrator may make direct loans to eligible intermediaries, 
        for the purpose of making loans to startup, newly established, 
        and growing small business concerns.
            ``(3) Purposes.--The purposes of the Program are--
                    ``(A) to assist small business concerns in areas 
                suffering from a lack of credit due to poor economic 
                conditions or changes in the financial market; and
                    ``(B) to establish a loan program under which the 
                Administrator may provide loans to eligible 
                intermediaries to enable the eligible intermediaries to 
                provide loans to startup, newly established, and 
                growing small business concerns for working capital, 
                real estate, or the acquisition of materials, supplies, 
                or equipment.
            ``(4) Loans to eligible intermediaries.--
                    ``(A) Application.--Each eligible intermediary 
                desiring a loan under this subsection shall submit an 
                application to the Administrator that describes--
                            ``(i) the type of small business concerns 
                        to be assisted;
                            ``(ii) the size and range of loans to be 
                        made;
                            ``(iii) the interest rate and terms of 
                        loans to be made;
                            ``(iv) the geographic area to be served and 
                        the economic, poverty, and unemployment 
                        characteristics of the area;
                            ``(v) the status of small business concerns 
                        in the area to be served and an analysis of the 
                        availability of credit; and
                            ``(vi) the qualifications of the applicant 
                        to carry out this subsection.
                    ``(B) Loan limits.--No loan may be made to an 
                eligible intermediary under this subsection if the 
                total amount outstanding and committed to the eligible 
                intermediary by the Administrator would, as a result of 
                such loan, exceed $3,000,000 during the participation 
                of the eligible intermediary in the Program.
                    ``(C) Loan duration.--Loans made by the 
                Administrator under this subsection shall be for a term 
                of 20 years.
                    ``(D) Applicable interest rates.--Loans made by the 
                Administrator to an eligible intermediary under the 
                Program shall bear an annual interest rate equal to 
                1.00 percent.
                    ``(E) Fees; collateral.--The Administrator may not 
                charge any fees or require collateral with respect to 
                any loan made to an eligible intermediary under this 
                subsection.
                    ``(F) Delayed payments.--The Administrator shall 
                not require the repayment of principal or interest on a 
                loan made to an eligible intermediary under the Program 
                during the 2-year period beginning on the date of the 
                initial disbursement of funds under that loan.
                    ``(G) Maximum participants and amounts.--During 
                each of fiscal years 2010, 2011, and 2012, the 
                Administrator may make loans under the Program--
                            ``(i) to not more than 20 eligible 
                        intermediaries; and
                            ``(ii) in a total amount of not more than 
                        $60,000,000.
            ``(5) Loans to small business concerns.--
                    ``(A) In general.--The Administrator, through an 
                eligible intermediary, shall make loans to startup, 
                newly established, and growing small business concerns 
                for working capital, real estate, and the acquisition 
                of materials, supplies, furniture, fixtures, and 
                equipment.
                    ``(B) Maximum loan.--An eligible intermediary may 
                not make a loan under this subsection of more than 
                $200,000 to any 1 small business concern.
                    ``(C) Applicable interest rates.--A loan made by an 
                eligible intermediary to a small business concern under 
                this subsection, may have a fixed or a variable 
                interest rate, and shall bear an interest rate 
                specified by the eligible intermediary in the 
                application of the eligible intermediary for a loan 
                under this subsection.
                    ``(D) Review restrictions.--The Administrator may 
                not review individual loans made by an eligible 
                intermediary to a small business concern before 
                approval of the loan by the eligible intermediary.
            ``(6) Termination.--The authority of the Administrator to 
        make loans under the Program shall terminate 3 years after the 
        date of enactment of the Small Business Intermediary Lending 
        Pilot Program Act of 2009.''.
    (b) Rulemaking Authority.--Not later than 180 days after the date 
of enactment of this Act, the Administrator shall issue regulations to 
carry out section 7(l) of the Small Business Act, as amended by 
subsection (a).
    (c) Availability of Funds.--Any amounts provided to the 
Administrator for the purposes of carrying out section 7(l) of the 
Small Business Act, as amended by subsection (a), shall remain 
available until expended.
                                 <all>