[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3681 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3681

 To clarify the collateral requirement for certain loans under section 
        7(d) of the Small Business Act, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                           December 13, 2012

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

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                                 A BILL


 
 To clarify the collateral requirement for certain loans under section 
        7(d) of the Small Business Act, 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. CLARIFICATION OF COLLATERAL REQUIREMENTS.

    Section 7(d)(6) of the Small Business Act (15 U.S.C. 636(d)(6)) is 
amended by inserting after ``which are made under paragraph (1) of 
subsection (b)'' the following: ``: Provided further, That the 
Administrator, in obtaining the best available collateral for a loan of 
not more than $200,000 under paragraph (1) or (2) of subsection (b) 
relating to damage to or destruction of the property of, or economic 
injury to, a small business concern, shall not require the owner of the 
small business concern to use the primary residence of the owner as 
collateral if the Administrator determines that the owner has other 
assets with a value equal to or greater than the amount of the loan 
that could be used as collateral for the loan: Provided further, That 
nothing in the preceding proviso may be construed to reduce the amount 
of collateral required by the Administrator in connection with a loan 
described in the preceding proviso or to modify the standards used to 
evaluate the quality (rather than the type) of such collateral''.
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