II 111th CONGRESS 1st Session S. 2855 IN THE SENATE OF THE UNITED STATES December 9, 2009 Mr. Menendez introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To reallocate a portion of the Troubled Asset Relief Program to increase lending to main street.

1.

Short title

This Act may be cited as the Credit Retains Employees And Triggers Economic Growth and Jobs Act of 2009 or the CREATE Growth and Jobs Act.

2.

Loans to creditworthy small business concerns

(a)

Definitions

In this section— (1)the term Administrator means the Administrator of the Small Business Administration; (2)the terms credit elsewhere and small business concern have the meanings given those terms under section 3 of the Small Business Act (15 U.S.C. 632); and (3)the term eligible small business concern means a small business concern that the Administrator determines— (A)is fiscally sound, including being creditworthy; and (B)is not able to obtain credit elsewhere. (b)

Authority

(1)

In general

The Administrator may make a loan to an eligible small business concern for the operation, acquisition, or expansion of an eligible small business concern. (2)

Terms and conditions

(A)

In general

Except as provided in this section, a loan made under paragraph (1) shall be made on the same terms and conditions as a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)). (B)

Terms

A loan under paragraph (1)— (i)shall be for not more than $1,500,000; (ii)shall have a rate of interest of not more than the prime rate of interest (as such prime rate is determined from time to time by at least 75 percent of the 30 largest depository institutions in the Nation) plus 475 basis points; and (iii)shall be for a period of not longer than 25 years. (c)

Maximum amount for program

The Administrator may not make more than a total of $10,000,000,000 in loans under this section in any fiscal year. (d)

Funding

Of amounts made available under section 115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225(a)) that are not otherwise obligated, $20,000,000,000 shall be made available to the Administrator to carry out this section. (e)

Termination of authority

The authority to make loans under this section shall terminate 2 years after the date of enactment of this Act.