II 111th CONGRESS 1st Session S. 2918 IN THE SENATE OF THE UNITED STATES December 21 (legislative day, December 20), 2009 Mr. Specter introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To make improvements to certain loan programs 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 Helping Small Business Succeed Act of 2009.

2.

Maximum loan amounts under 7(a) program

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 $4,875,000 (or if the gross loan amount would exceed $5,000,000.

3.

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

4.

Maximum loan limits under microloan program

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 that term appears and inserting $50,000; and (3)in paragraph (11)(B), by striking $35,000 and inserting $50,000.

5.

Maximum loan guarantee under 7(a) program

(a)

In general

(1)

Amendment

Section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)) is amended by striking equal to— and all that follows and inserting equal to 97.5 percent of the amount of the loan.. (2)

Prospective repeal

Effective October 3, 2011, section 7(a)(2)(A) of the Small Business Act (15 U.S.C. 636(a)(2)(A)) is amended by striking equal to 97.5 percent of the amount of the loan. and inserting “equal to— (i)75 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance exceeds $150,000; or (ii)85 percent of the balance of the financing outstanding at the time of disbursement of the loan, if such balance is less than or equal to $150,000. . (b)

Conforming amendment

Section 502(a) of title V of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 152) is amended by striking 90 percent and inserting 97.5 percent.

6.

Extension of fee reductions

(a)

Extension of fee reductions

Section 501 of title V of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 151) is amended by striking September 30, 2010 each place that term appears and inserting October 3, 2011. (b)

Availability of funds

The matter under the heading Business loans program account under the heading Small Business Administration in title V of division A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 151) is amended— (1)by striking to remain available until September 30, 2010 the second place it appears; (2)by inserting and shall remain available until October 3, 2011 after section 501 of this title; and (3)by inserting and shall remain available until September 30, 2010 after section 506 of this title.

7.

Economic disaster loans

(a)

Authority To make loans

The Administrator of the Small Business Administration may make a loan to a small business concern (as defined under section 3 of the Small Business Act (15 U.S.C. 632)) that is located in an economic disaster area under the same terms and conditions and for the same purposes as a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)). (b)

Economic disaster area

For purposes of this section, the term economic disaster area means a geographic area that the Administrator of the Small Business Administration determines has— (1)a per capital income of not more than 80 percent of the average per capita income in the United States, based on the most recent available data from the Bureau of Labor Statistics of the Department of Labor; (2)an average unemployment rate that is not less than 1 percentage point greater than the average unemployment rate in the United States, during the most recent 24-month period for which data from the Bureau of Labor Statistics of the Department of Labor are available; and (3)a special need. (c)

Sunset

The authority of the Administrator of the Small Business Administration to make a loan under subsection (a) shall terminate on October 3, 2011.

8.

Funding

(a)

Revenue from sale of troubled assets and warrants

Section 106(d) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5216(d)) is amended— (1)by striking Revenues of and inserting the following: (1)

In general

Except as provided in paragraph (2), revenues of ; and (2)by adding at the end the following: (2)

Transfer to Small Business Administration

From amounts received under paragraph (1), the Secretary shall transfer to the Administrator of the Small Business Administration such amounts as are necessary to carry out the Helping Small Business Succeed Act of 2009 and the amendments made by that Act. . (b)

Authorization of appropriations

In addition to any amounts transferred to the Administrator of the Small Business Administration under section 106(d) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5216(d)), as amended by this Act, there are authorized to be appropriated such sums as may be necessary to carry out this Act and the amendments made by this Act.