[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1828 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1828

      To increase small business lending, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 8, 2011

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

_______________________________________________________________________

                                 A BILL


 
      To increase small business lending, and for other purposes.

    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 ``Increasing Small Business Lending 
Act of 2011''.

SEC. 2. SMALL BUSINESS LENDING MARKET STABILIZATION.

    (a) Fee Reductions and Loan Guarantees.--
            (1) Fee reductions.--Section 501 of the American Recovery 
        and Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 151) 
        is amended by striking ``March 4, 2011'' each place it appears 
        and inserting ``the date that is 1 year after the date of 
        enactment of the Increasing Small Business Lending Act of 
        2011''.
            (2) Loan guarantees.--Section 502(f) of division A of the 
        American Recovery and Reinvestment Act of 2009 (Public Law 111-
        5; 123 Stat. 153) is amended by striking ``March 4, 2011'' and 
        inserting ``the date that is 1 year after the date of enactment 
        of the Increasing Small Business Lending Act of 2011''.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the Administrator of the Small Business 
        Administration such sums as may be necessary to carry out 
        sections 501 and 502 of the American Recovery and Reinvestment 
        Act of 2009 (Public Law 111-5; 123 Stat. 151), as amended by 
        this subsection.
    (b) Main Street Incentives.--
            (1) In general.--Section 502 of the Small Business 
        Investment Act of 1958 (15 U.S.C. 696) is amended--
                    (A) by striking paragraphs (4) and (5) and 
                inserting the following:
            ``(4) Limitation on leasing.--If the use of a loan under 
        this section includes the acquisition of a facility or the 
        construction of a new facility, the small business concern 
        assisted--
                    ``(A) shall permanently occupy and use not less 
                than a total of 50 percent of the space in the 
                facility; and
                    ``(B) may, on a temporary or permanent basis, lease 
                to others not more than 50 percent of the space in the 
                facility.''; and
                    (B) by redesignating paragraphs (6) and (7) as 
                paragraphs (5) and (6), respectively.
            (2) Policy for 7(a) loans.--Section 7(a)(28) of the Small 
        Business Act (15 U.S.C. 636(a)(28)) is amended to read as 
        follows:
            ``(28) Limitation on leasing.--If the use of a loan under 
        this subsection includes the acquisition of a facility or the 
        construction of a new facility, the small business concern 
        assisted--
                    ``(A) shall permanently occupy and use not less 
                than a total of 50 percent of the space in the 
                facility; and
                    ``(B) may, on a temporary or permanent basis, lease 
                to others not more than 50 percent of the space in the 
                facility.''.
    (c) Loan Pooling.--Section 5(g)(1) of the Small Business Act (15 
U.S.C. 634(g)(1)) is amended--
            (1) by inserting ``(A)'' before ``The Administration'';
            (2) by striking the colon and all that follows and 
        inserting a period; and
            (3) by adding at the end the following:
    ``(B) A trust certificate issued under subparagraph (A) shall be 
based on, and backed by, a trust or pool approved by the Administrator 
and composed solely of the guaranteed portion of such loans.
    ``(C) The interest rate on a trust certificate issued under 
subparagraph (A) shall be either--
            ``(i) the lowest interest rate on any individual loan in 
        the pool; or
            ``(ii) the weighted average interest rate of all loans in 
        the pool, subject to such limited variations in loan 
        characteristics as the Administrator determines appropriate to 
        enhance marketability of the pool certificates.''.
    (d) Alternative Variable Interest Rate.--
            (1) In general.--Section 7(a)(4)(A) of the Small Business 
        Act (15 U.S.C. 636(a)(4)(A)) is amended by striking 
        ``prescribed by the Administration,'' and inserting: 
        ``prescribed by the Administration, including, on variable rate 
        loans, a nationally recognized prime rate of interest and at 
        least 1 other index as an alternative thereto at the option of 
        the participating lender,''.
            (2) Applicability.--Not later than 180 days after the date 
        of enactment of this Act, the Administrator of the Small 
        Business Administration shall select not less than 1 
        alternative index under section 7(a)(4)(A) of the Small 
        Business Act, as amended by paragraph (1) of this subsection, 
        and make such index available for use by participating lenders.
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