II 112th CONGRESS 1st Session S. 1828 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.

1.

Short title

This Act may be cited as the Increasing Small Business Lending Act of 2011.

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.