Direct lending program for small business concerns

(a)

Establishment

The Administrator of the Small Business Administration shall establish and carry out a loan program (in this section referred to as the program) under which the Administrator is authorized to make loans directly to eligible small business concerns. (b)

Loan amount

Each loan made to an eligible small business concern under the program shall be in an amount not exceeding the lesser of— (1)10 percent of the annual revenues of such concern (as determined by the Administrator of the Small Business Administration); or (2)$500,000. (c)

Loan interest rate

The interest rate of a loan made under the program shall be equal to the discount window primary credit interest rate most recently published in the Federal Reserve Statistical Release on selected interest rates (daily or weekly), and commonly referred to as the H.15 release (or any successor publication), in the week preceding the making of such loan. (d)

Payments on principal

A small business concern may not be required to make payments on the principal of a loan under the program during the 2-year period beginning on the date on which such loan is made. (e)

Definitions

In this section, the following definitions apply: (1)

Eligible small business concern

The term eligible small business concern means a small business concern that has been operating as a small business concern for at least 2 years prior to the receipt by the Administrator of an application from such concern for a loan under the program. (2)

Small business concern

The term small business concern has the meaning given such term under section 3(a) of the Small Business Act (15 U.S.C. 632(a)).