[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2474 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2474
To transfer funds to the Community Development Financial Institutions
Fund to increase the availability of credit for small businesses, to
improve the microenterprise technical assistance and capacity building
grant program, to establish an Office of Youth Entrepreneurship in the
Small Business Administration, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 20, 2013
Mr. Richmond (for himself, Ms. Brown of Florida, Ms. Jackson Lee, Mr.
Payne, Mr. Cardenas, Mr. Rush, Mr. Carson of Indiana, Mr. Enyart, Mr.
Thompson of Mississippi, Ms. Chu, Mr. Clay, Mr. Lewis, and Ms. Clarke)
introduced the following bill; which was referred to the Committee on
Financial Services, and in addition to the Committees on Small Business
and Education and the Workforce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To transfer funds to the Community Development Financial Institutions
Fund to increase the availability of credit for small businesses, to
improve the microenterprise technical assistance and capacity building
grant program, to establish an Office of Youth Entrepreneurship in the
Small Business Administration, 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 ``Community Lending and Small Business
Jobs Act of 2013''.
TITLE I--SMALL BUSINESS LEG-UP ACT OF 2013
SEC. 101. SHORT TITLE.
This title may be cited as the ``Small Business Lending to
Entrepreneurs for Growth in Underserved Populations Act of 2013'' or
the ``Small Business Leg-Up Act of 2013''.
SEC. 102. FINDINGS.
The Congress finds the following:
(1) Families and small businesses in under-served areas
have for generations been unable to access affordable credit.
(2) The financial crisis of 2008 only served to exacerbate
efforts by entrepreneurs to access capital for the purpose of
creating jobs and improving economic outcomes in the community.
(3) Small business investments revitalize communities by
creating jobs but also contributing to the local tax base,
which helps finance investments in schools, hospitals,
infrastructure, and public safety.
(4) The Community Development Financial Institutions Fund
is well placed to make careful, targeted investments in
community development financial institutions for the purposes
of improving economic outcomes for underserved families across
America.
(5) Providing the Community Development Financial
Institutions Fund with a robust capital infusion will make
efficient use of taxpayer dollars, by leveraging Federal
investment for the purpose of small business lending.
SEC. 103. TRANSFER OF FUNDS FROM SMALL BUSINESS LENDING FUND TO THE
CDFI FUND.
(a) Unobligated Funds.--On the date of the expiration of the
investment authority described under section 4109(a) of the Small
Business Jobs Act of 2010, the Secretary shall transfer all unobligated
funds in the Small Business Lending Fund to the Community Development
Financial Institutions Fund.
(b) Proceeds.--Section 4103(b)(3) of the Small Business Jobs Act of
2010 is amended to read as follows:
``(3) Proceeds transferred to cdfi fund.--All funds
received by the Secretary in connection with purchases made
pursuant to paragraph (1), including principal, interest
payments, dividend payments, and proceeds from the sale of any
financial instrument, shall be transferred to the Community
Development Financial Institutions Fund.''.
SEC. 104. SMALL BUSINESS CAPITAL INVESTMENT PROGRAM.
(a) In General.--The Riegle Community Development and Regulatory
Improvement Act of 1994 is amended by inserting after section 108 the
following:
``SEC. 108A. SMALL BUSINESS CAPITAL INVESTMENT PROGRAM TO INCREASE
CREDIT AVAILABILITY FOR SMALL BUSINESSES.
``(a) Small Business Revolving Loan Program.--
``(1) In general.--Using amounts described under subsection
(b), the Administrator shall carry out a Small Business Capital
Investment Program (`Program') to make capital investments in
eligible community development financial institutions in order
to increase the availability of credit for small businesses.
``(2) Structure of the program.--To the extent practicable,
the Administrator shall carry out the Program in the same
manner as the Small Business Lending Fund Program authorized
under section 4103(a)(2) of the Small Business Jobs Act of
2010, except that--
``(A) all funds received by the Administrator in
connection with purchases made under the Program,
including principal, interest payments, dividend
payments, and proceeds from the sale of any financial
instrument, shall be deposited into the Fund;
``(B) eligible community development financial
institutions may apply to receive a capital investment
from the Fund in an amount not exceeding 10 percent of
total assets, or such other percentage as the
Administrator determines to be appropriate; and
``(C) the authority to make capital investments in
eligible community development financial institutions
shall continue so long as amounts described under
subsection (b) are available to make such investments.
``(b) Funding.--
``(1) In general.--Notwithstanding any other provision of
this Act, amounts deposited into the Fund pursuant to section
4(a) of the Small Business Leg-Up Act of 2013, section
4103(b)(3) of the Small Business Jobs Act of 2010, or
subsection (a)(2)(A) shall only be available to carry out the
Program established under subsection (a).
``(2) Administration costs.--Interest payments received
under subsection (a)(2)(A) may be used to pay for the
administrative costs of carrying out the Program.
``(3) Authorization of appropriations.--There is authorized
to be appropriated to the Administrator $4,000,000 to carry out
the Program.
``(c) Rulemaking.--The Administrator may issue such regulations as
the Administrator determines to be appropriate to carry out this
section.
``(d) Eligible Community Development Financial Institution
Defined.--For purposes of this section, the term `eligible community
development financial institution' means a community development
financial institution with assets of $10,000,000,000 or less, as
reported in audited financial statements.''.
(b) Technical Amendment.--The table of contents for the Riegle
Community Development and Regulatory Improvement Act of 1994 is amended
by inserting after the item relating to section 108 the following new
item:
``Sec. 108A. Small Business Capital Investment Program to increase
credit availability for small
businesses.''.
TITLE II--MICROENTERPRISE AND YOUTH ENTREPRENEURSHIP DEVELOPMENT ACT OF
2013
SEC. 201. SHORT TITLE.
This title may be cited as the ``Microenterprise and Youth
Entrepreneurship Development Act of 2013''.
SEC. 202. MICROENTERPRISE TECHNICAL ASSISTANCE AND CAPACITY BUILDING
PROGRAM.
(a) Definitions.--Section 172(5) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6901(5))
is amended--
(1) in subparagraph (B) by striking ``or'' at the end;
(2) in subparagraph (C) by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(D) an entrepreneur that operates a business or
intends to operate a business in an investment area (as
such term is defined in section 103(16) of this
Act).''.
(b) Uses of Assistance.--Section 174 of the Riegle Community
Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6903) is
amended--
(1) in paragraph (3) by striking ``and'' at the end;
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
``(4) to advertise in print, electronic, and other media
the training and technical assistance provided under paragraph
(1); and''.
(c) Targeted Assistance.--Section 176(b) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6905(b))
is amended by striking ``50 percent'' and inserting ``60 percent''.
(d) Matching Requirements.--Section 177(c) of the Riegle Community
Development and Regulatory Improvement Act of 1994 (15 U.S.C. 6906(c))
is amended by adding at the end the following:
``(3) Consideration.--In determining whether to reduce or
eliminate matching requirements under paragraph (1), the
Administrator shall consider the impact of the economic crisis
of 2007 through 2009 on the geographic area in which an
applicant operates.''.
(e) Report.--Not later than 180 days after the date of enactment of
this Act, the Administrator of the Small Business Administration shall
submit to the Committee on Small Business of the House of
Representatives and the Committee on Small Business and
Entrepreneurship of the Senate a report describing recommendations for
improving the application and grant making process of the
microenterprise technical assistance and capacity building grant
program (carried out under subtitle C of title I of the Riegle
Community Development and Regulatory Improvement Act of 1994),
including recommendations, developed in consultation with stakeholders,
for streamlining the application and grant making process of that
program.
(f) Microenterprise Coordinator.--
(1) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Administrator shall establish in the
Small Business Administration the position of Microenterprise
Coordinator.
(2) Duties.--The Microenterprise Coordinator shall--
(A) work to ensure that the contributions of
microenterprises to the economy are maximized;
(B) work to enhance, support, and coordinate the
programs of the Federal Government providing assistance
to microenterprises, including Federal technical
assistance programs;
(C) work to ensure that underserved entrepreneurs
are included in the programs of the Federal Government
providing assistance to microenterprises;
(D) make available to the public annually a
comprehensive list and description of each Federal
program that provides assistance to microenterprises;
and
(E) encourage public-private partnerships that
support entrepreneurship.
(3) Microenterprise defined.--In this subsection, the term
``microenterprise'' has the meaning given that term in section
172(10) of the Riegle Community Development and Regulatory
Improvement Act of 1994 (15 U.S.C. 6901(10)).
SEC. 203. OFFICE OF YOUTH ENTREPRENEURSHIP.
(a) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Administrator of the Small Business
Administration shall establish an Office of Youth Entrepreneurship (in
this section referred to as the ``Office'') in the Small Business
Administration.
(b) Director.--The Administrator shall appoint a Director of Youth
Entrepreneurship (in this section referred to as the ``Director'') to
serve as the head of the Office.
(c) Duties.--The Director shall--
(1) carry out the youth entrepreneurship technical
assistance grant program described in subsection (d);
(2) carry out the youth entrepreneurship curriculum grant
program described in subsection (e);
(3) promote the growth of youth entrepreneurship by
establishing public-private partnerships and carrying out
advertising campaigns;
(4) sponsor and support State and national youth
entrepreneurship competitions that raise awareness of the
importance of small business development;
(5) study and promote Federal activities that support
entrepreneurship education; and
(6) support the establishment of public and private youth
entrepreneurship education and mentoring opportunities.
(d) Youth Entrepreneurship Technical Assistance Grant Program.--The
Director shall establish a program under which the Director may make
grants to assist entities, including nonprofit microenterprise
development organizations, to provide individuals under 25 years of age
with technical assistance related to entrepreneurship.
(e) Youth Entrepreneurship Curriculum Grant Program.--
(1) In general.--The Director shall establish a program
under which the Director may make grants to a covered entity to
assist the development, improvement, or implementation of a
youth entrepreneurship curriculum that includes information on
the topics of--
(A) securing capital and borrowing;
(B) business plan conception and drafting;
(C) accounting;
(D) management; and
(E) marketing.
(2) Application process.--To be eligible for a grant
described in paragraph (1), a covered entity shall submit to
the Director an application at such time, in such manner, and
containing such information as the Director may require, except
that the application shall include at least--
(A) a description of the curriculum to be
developed, improved, or implemented;
(B) a description of how grant funds will be used;
(C) a description of goals relating to the use of
grant funds and the curriculum to be developed,
improved, or implemented; and
(D) a description of how progress will be measured
with respect to the goals described in subparagraph
(C).
(3) Covered entity defined.--In this subsection, the term
``covered entity'' means a local educational agency in any of
the several States, the District of Columbia, or a territory or
possession of the United States and a local educational agency
of a federally recognized Indian tribe.
(f) Investment Areas.--
(1) In general.--The Director shall ensure that at least 25
percent of the amounts made available to carry out the Office
each fiscal year are used to assist youth in investment areas.
(2) Investment area defined.--In this subsection, the term
``investment area'' has the meaning given that term in section
103(16) of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4702(16)).
(g) Student Loan Assistance.--Not later than 180 days after the
date of enactment of this Act, the Director, in consultation with the
Secretary of Education, shall submit to Congress a report that includes
detailed recommendations for legislation--
(1) establishing a program to forgive student loans in a
manner that assists youth entrepreneurship by making available
capital for business formation; and
(2) establishing a program to defer student loan repayments
in a manner that assists youth entrepreneurship by making
available capital for business formation.
SEC. 204. GAO STUDY AND REPORT.
(a) Study.--The Comptroller General of the United States shall
conduct a study on--
(1) the economic impact of allowing youth entrepreneurs to
defer student loan repayments to make available capital for
business formation;
(2) the economic impact of increasing the participation of
individuals under 25 years of age in the microloan program of
the Small Business Administration (carried out under section
7(m) of the Small Business Act (15 U.S.C. 636(m)),
notwithstanding the limited collateral and formal business
experience of such individuals;
(3) alternative methods for measuring creditworthiness that
may assist youth entrepreneurship; and
(4) actions Congress should consider to promote youth
entrepreneurship.
(b) Report.--Not later than 180 days after the date of enactment of
this Act, the Comptroller General shall submit to the Committee on
Small Business of the House of Representatives and the Committee on
Small Business and Entrepreneurship of the Senate a report on the
results of the study conducted under subsection (a).
<all>