[Congressional Record Volume 154, Number 176 (Wednesday, November 19, 2008)]
[Senate]
[Pages S10660-S10674]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mrs. FEINSTEIN (for herself and Ms. Snowe):
  S. 3698. A bill to prohibit any recipient of emergency Federal 
economic assistance from using such funds for lobbying expenditures or 
political contributions, to improve transparency, enhance 
accountability, encourage responsible corporate governance, and for 
other purposes; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mrs. FEINSTEIN. Mr. President, I rise today on behalf of myself and 
Senator Snowe to introduce legislation that will enhance transparency, 
strengthen oversight, and encourage responsible corporate governance 
for firms receiving financial lifelines from the Federal Government.
  Our bill--the Accountability for Economic Rescue Assistance Act--will 
achieve four essential objectives.
  It will prohibit firms receiving loans from the Federal Reserve or 
any of the $700 billion economic rescue funds from Treasury from using 
this money for lobbying expenditures or political contributions; 
require that firms receiving

[[Page S10661]]

government assistance provide detailed, publically available quarterly 
reports to Treasury outlining how taxpayer dollars have been used; 
establish corporate governance standards to ensure that firms receiving 
federal assistance do not waste money on unnecessary expenditures; and, 
create penalties of at least $100,000 per violation for firms that fail 
to meet the corporate governance standards established in the bill.
  The need for such legislation has become apparent in the weeks since 
Congress approved the economic rescue plan.
  Since then, news reports have uncovered multiple instances in which 
rescued firms have been caught making unnecessary and outrageous 
expenditures, which calls their assistance from taxpayers into 
question.
  Last week, Treasury Secretary Paulson announced that the $700 billion 
approved by Congress to stabilize financial markets would not be used 
to purchase illiquid assets but rather to make direct capital 
injections into financial institutions.
  Given this new mission, the need for additional transparency and 
disclosure is striking.
  We have learned that we cannot necessarily count on these firms and 
their executives to act sensibly and do what is right.
  The public needs to know that their tax dollars are being put to good 
use. A simple ``trust me'' from the bank executives is not enough.
  On October 16th, the Wall Street Journal reported that American 
Insurance Group, AIG, which received billions of dollars in Federal 
rescue funds, was continuing to lobby state regulators to delay 
implementation of strengthened licensing standards for mortgage brokers 
and lenders.
  AIG was lobbying against sensible standards created by the SAFE 
Mortgage Licensing Act of 2008. This bill, introduced by Senator 
Martinez and myself, established basic minimum regulations for the 
mortgage industry to ensure consumers were adequately protected.
  Before this bill, in some states virtually anyone--even those with 
criminal records--could go out and get a mortgage broker's license.
  Left unchecked, and with no regulations to stop them, unscrupulous 
mortgage brokers and lenders flooded the markets with subprime loans 
that they knew would never be paid back, and this served as one of the 
catalysts for our current economic predicament.
  Now AIG, having succumbed to bad investments and propped up by 
billions in government money, was lobbying against the strong 
enforcement of state laws that might have helped prevent this 
catastrophe in the first place.
  Senator Martinez and I wrote a letter to AIG and, to the company's 
credit, CEO Edward Liddy immediately suspended the company's lobbying 
operations.
  I find it completely unacceptable that taxpayer dollars intended to 
stabilize the economy could find their way into the bank accounts of 
lobbying firms. The legislation which I introduce today will make sure 
that doesn't happen.
  I do not mean to pick on AIG, but they have also been the poster 
child for wasteful spending by rescued firms.
  In September, just days after receiving an $85 billion federal 
lifeline, the management of AIG treated itself to a $444,000 spa 
weekend at the St. Regis resort in Monarch Beach, California. This 
included $200,000 for rooms, $150,000 for fine dining and $23,000 in 
spa charges.
  AIG executives spent the last two days of September on a golf outing 
at Mandalay Bay in Las Vegas at a cost of up to $500,000. They were 
planning to follow this with a few days at the Ritz Carlton in Half 
Moon Bay, but cancelled after it hit the news and drew fire from 
Congressional leaders.
  As news of these wasteful expenditures was making headlines, AIG 
received another $37.8 billion in emergency loans from the Federal 
Government. Shortly thereafter, the Associated Press reported that--
even as AIG was asking Congress for these loans--AIG executives were 
spending $86,000 on a pheasant hunting expedition in England. During 
the trip, they stayed at a 17th century manor.
  One AIG executive named Sebastian Preil was quoted as saying that: 
``The recession will go on until about 2011, but the shooting was great 
today and we are relaxing fine.''
  Once these lapses in judgment came to light, AIG chief executive 
Edward Liddy informed Congress that he was putting an end to all 
nonessential expenditures. Yet earlier this month, an undercover news 
crew caught AIG executives at the Hilton Squaw Peak Resort in Phoenix, 
hosting a seminar for financial planners complete with cocktails and 
limousines.
  One would think that a brush with collapse and total failure might 
have a sobering effect on some of these firms.
  But this penchant for wasteful junkets in the face of complete 
failure was not unique to AIG.
  The Wachovia Corporation was caught shipping its top brokers off to 
the Greek Isles on a cruise ship for an all-expenses paid luxury trip--
even as the company awaited a buyout potentially backed by taxpayers.
  Wachovia cancelled the trip due to the storm of criticism attracted 
by this stunning display of what the ancient Greeks called hubris.
  While the economic rescue legislation passed in September includes 
several oversight boards and accountability provisions to ensure that 
public funds are effectively distributed, the bill does not include any 
reporting requirements for firms that receive Federal dollars.
  This is a significant omission, especially given the amount of 
Federal money that some firms are receiving.
  The Treasury Department has already approved the purchase of $160 
billion of preferred stock in 30 financial institutions. We know that 
of these funds $125 billion was allocated to nine large national banks.
  It was also reported last week that AIG will receive an additional 
$40 billion, meaning that at least $165 billion of the economic rescue 
funding will be allocated to only 10 firms.
  When you add up all of the taxpayer dollars put on the line--from $30 
billion provided to Bear Stearns in March, $200 billion available to 
Fannie Mae and Freddie Mac, $150 billion to AIG, $700 billion in 
economic rescue funds, plus the direct lending programs at the Federal 
Reserve--we are talking about well over 1 trillion Federal dollars.
  I certainly don't think it is unreasonable for the public to know how 
their money is being spent.
  As the end of the year nears, we are approaching bonus time on Wall 
Street. Certainly Americans deserve assurances that struggling firms 
will not use public funds to pay higher bonuses.
  The same can be said for these funds going towards dividend payments, 
or mergers and acquisitions.
  Shining light on how firms use public dollars not only makes good 
sense, but it will also act as a deterrent to irresponsible behavior.
  My vote on the economic stabilization bill was one of the toughest I 
have taken during my time in the Senate.
  My office received more than 160,000 calls, letters, and e-mails from 
Californians concerned about this course of action.
  But, I decided to support the bill to ensure that action would be 
quickly taken to ease the flow of credit to consumers and businesses.
  Our economy continues to struggle today. The money approved by 
Congress must be used sensibly to ensure its maximum impact.
  Americans are struggling, and the pain in my State of California, 
where unemployment is 7.7 percent, and foreclosure filings exceed 
680,000 this year, is especially acute.
  This bill puts in place commonsense solutions to fix some of the 
deficiencies in the economic stabilization bill.
  This bill is significant and sorely needed. We must act soon to help 
restore confidence in this effort and shed light on how public funds 
are used. We promised the American people transparency and oversight, 
and this legislation will make good on that promise.
  I hope my colleagues will join me to ensure that taxpayer dollars are 
spent efficiently and responsibly.
                                 ______
                                 
      By Ms. SNOWE:
  S. 3699. A bill to direct the Administrator of the Small Business 
Administration to reform and improve the HUBZone program for small 
business concerns, and for other purposes; to the Committee on Small 
Business and Entrepreneurship.

[[Page S10662]]

  Ms. SNOWE. Mr. President, I rise today in support of the passage of 
the HUBZone Improvement Act of 2008. This vital legislation would 
address the Government Accountability Office's recent recommendations 
to improve the Small Business Administration's administration and 
oversight of the Historically Underutilized Business Zone, HUBZone, 
program and ensure that only eligible firms participate in this crucial 
program.
  As former chair and now ranking member of the Senate Committee on 
Small Business and Entrepreneurship, I have been a longstanding 
champion for small business programs such as the HUBZone program. The 
HUBZone program provides Federal contracting assistance to small firms 
located in economically distressed areas, with the intent of 
stimulating economic development. According to the GAO, as of February 
2008, 12,986 certified businesses have participated in the HUBZone 
program since its inception. And in fiscal year 2007, over 4,200 
HUBZone firms obtained approximately $8.1 billion in Federal contracts. 
In these troubling economic times, the HUBZone program is something our 
country needs now more than ever.
  The mechanisms that the SBA uses to certify and monitor HUBZone firms 
provide limited assurance that only eligible firms participate in the 
program. Unfortunately, according to a recent GAO report and analysis 
of 125 applications submitted in September of 2007, the SBA only 
requested supporting documentation, which helps to clarify the status 
of the business, for 36 percent of the applications and only conducted 
a single site visit for all 125 applicants. While the SBA's policies 
and procedures require program examinations, the agency only conducts 
them on 5 percent of certified HUBZone firms each year. This is a 
glaring lack of oversight that must be rectified.
  The legislation I introduce today, the HUBZone Improvement Act of 
2008, would take immediate steps to correct the lack of effective 
administrative oversight by requiring more routine and consistent 
supporting documentation during the program's application process. In 
its report, the GAO found that the SBA relies on Federal law to 
identify qualified HUBZone areas, but the map it uses to publicize 
HUBZone areas is inaccurate, and the economic characteristics of 
designated areas vary widely. My bill would require that the SBA take 
immediate steps to correct and update the map that the SBA uses to 
identify HUBZone areas and implement procedures to ensure that the map 
is updated with the most recently available data on a more frequent 
basis.
  The GAO also found that the mechanisms that SBA uses to certify and 
monitor firms provide limited assurance that only eligible firms 
participate in the program. The GAO found that more than 4,600 firms 
that had been in the program for at least 3 years went unmonitored. My 
legislation would require the SBA to develop and implement guidance to 
more routinely and consistently obtain supporting documentation upon 
application and conduct more frequent site visits, as appropriate, to 
ensure that firms applying for certification are eligible. These 
commonsense achievable steps would help to eliminate participant fraud 
and misrepresentation, and ensure that firms applying for HUBZone 
certification are truly lawful and eligible businesses.
  In its report, the GAO illustrates the SBA lack of a formal policy on 
how quickly it needs to make a final determination on decertifying 
firms that may no longer be eligible for the HUBZone program. According 
to the GAO, of the more than 3,600 firms proposed for decertification 
in fiscal years 2006 and 2007, more than 1,400 were not processed 
within 60 days--the SBA's targeted timeline. As a result of these 
weaknesses, there is an increased risk that ineligible firms have 
participated in the program and had opportunities to receive Federal 
contracts based on their HUBZone certification. My legislation would 
require the SBA to formalize and adhere to a specific timeframe for 
processing firms proposed for decertification in the future, as well as 
require further developed measures in assessing the effectiveness of 
the HUBZone program.
  Moreover, the Federal Government must strive to continue to provide 
additional contracting opportunities to those who are legitimate 
HUBZone firms. I am dismayed by the innumerable ways that government 
agencies have time and again egregiously failed to meet most of their 
small business contracting goals. I am alarmed that only one Federal 
small business contracting program--the small disadvantage business 
program--has met its statutory goal, and that the three other small 
business goaling programs have all fallen drastically short. For 
example, in fiscal year 2007, the HUBZone program met only 2.2 percent 
of its three percent government-wide goal. The Federal Government can 
and must provide more to our country's hardworking small businesses.
  In my home State of Maine, only 118 of 41,026 small businesses are 
qualified HUBZone businesses. HUBZones represent a tremendous tool for 
replacing lost jobs for our Nation's declining manufacturing and 
industrial sectors--clearly, this program should be better utilized.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3699

       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 ``HUBZone Improvement Act of 
     2008''.

     SEC. 2. DEFINITIONS.

       In this Act--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively;
       (2) the terms ``HUBZone'' and ``HUBZone small business 
     concern'' have the meanings given such terms in section 3 of 
     the Small Business Act (15 U.S.C. 632); and
       (3) the term ``recertification'' means determining whether 
     a business concern that was previously determined to be a 
     qualified HUBZone small business concern is a qualified 
     HUBZone small business concern under section 3(p)(5) of the 
     Small Business Act (15 U.S.C. 632(p)(5)).

     SEC. 3. PURPOSE; FINDINGS.

       (a) Purpose.--The purpose of this Act is to reform and 
     improve the HUBZone program of the Administration.
       (b) Findings.--Congress finds the following:
       (1) The HUBZone program was established under the HUBZone 
     Act of 1997 (Public Law 105-135; 111 Stat. 2627) to stimulate 
     economic development through increased employment and capital 
     investment by providing Federal contracting preferences to 
     small business concerns in economically distressed 
     communities or HUBZone areas.
       (2) According to the Government Accountability Office--
       (A) as of February 2008, 12,986 certified firms have 
     participated in the HUBZone program since its inception; and
       (B) in fiscal year 2007, over 4,200 HUBZone small business 
     concerns obtained approximately $8,100,000,000 in Federal 
     contracts.
       (3) The Government Accountability Office also identified 
     numerous concerns with the HUBZone program, including that--
       (A) the Administration verifies the information received by 
     the Administration from HUBZone small business concerns in 
     limited instances and has limited assurances that only 
     eligible firms participated in the HUBZone program;
       (B) by not obtaining documentation and conducting site 
     visits on a more routine basis during the certification 
     process, the Administration cannot be sure that only eligible 
     firms are part of the HUBZone program; and
       (C) although the examination process of the Administration 
     involves a more extensive review of documentation, the 
     examination process cannot be relied upon to ensure that only 
     eligible firms participate in the HUBZone program because the 
     examination process involves only 5 percent of firms in any 
     given year.

     SEC. 4. HUBZONE IMPROVEMENTS.

       The Administrator shall--
       (1) as soon as is practicable, correct and update the map 
     that is used by the Administration to identify HUBZones and 
     implement procedures to ensure that the map is updated with 
     the most recently available data on a more frequent basis;
       (2) develop and implement guidance for determining whether 
     an applicant is a qualified HUBZone small business concern 
     under section 3(p)(5) of the Small Business Act (15 U.S.C. 
     632(p)(5)), including more routinely and consistently 
     obtaining supporting documentation from an applicant and 
     conducting more frequent site visits, as appropriate;
       (3) establish a date by which the Administrator shall 
     eliminating the backlog of applications for recertification;
       (4) ensure that the Administration eliminates the backlog 
     described in paragraph (3) by the date established under 
     paragraph (3), using officers and employees of the 
     Administration or by entering into a contract with a private 
     entity;

[[Page S10663]]

       (5) establish and implement a time period for completing a 
     recertification; and
       (6) develop measures and implement plans to assess the 
     effectiveness of the HUBZone program that take into account--
       (A) the economic characteristics of the HUBZone; and
       (B) contracts being counted under multiple socioeconomic 
     subcategories.

     SEC. 5. REPORT.

       Not later than 2 years after the date of enactment of this 
     Act, the Comptroller General of the United States shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     the implementation of this Act.
                                 ______
                                 
      By Mr. KERRY (for himself, Mr. Specter, Mr. Lautenberg, Mr. 
        Inouye, Mr. Brown, Ms. Stabenow, Mrs. Feinstein, Mr. Dodd, Mr. 
        Casey, Mr. Lieberman, Mr. Whitehouse, Mrs. Clinton, Mr. 
        Schumer, Ms. Snowe, Mr. Menendez, and Mr. Carper):
  S. 3700. A bill to encourage and support the development of high-
speed passenger rail transportation in the United States, and for other 
purposes; to the Committee on Finance.
  Mr. KERRY. Mr. President, this has been a volatile time for our 
financial system and our economy. Hopefully, we will be able to agree 
on a short-term stimulus relief that will help families who are 
suffering and states meet their financial obligations.
  Next, we need to create new jobs by updating our infrastructure to 
help respond to the current challenges to our economy. I believe a 
first-rate American rail system is a critical part of the efforts to 
create jobs and expand our economy. It will also help make our air 
cleaner, ease traffic congestion, save families' money and time, and 
lessen our dependence on foreign oil.
  That is why today, Senator Specter and I are introducing the High-
Speed Rail for America Act of 2008. Senators Lautenberg, Inouye, Brown, 
Stabenow, Feinstein, Dodd, Casey, Lieberman, Whitehouse, Clinton, 
Schumer, Snowe, and Menendez are cosponsors. This legislation provides 
a bold new vision of how we approach transportation policy to expand 
our economy and keep up with changes in our society.
  The High-Speed Rail for America Act of 2008 builds upon the Passenger 
Rail Investment and Improvement Act of 2008 which reauthorizes Amtrak 
and authorizes $1.5 billion over a five-year period to finance the 
construction and equipment for 11 highspeed rail corridors. I want to 
thank Senator Lautenberg for his leadership on reauthorizing Amtrak and 
making investment in high-speed rail a priority.
  Today, Amtrak's Acela train on the Northeast Corridor is capable of 
reaching 150 miles per hour. However, due to a lack of infrastructure 
improvements, the Acela train only travels at 150 miles per hour on an 
18-mile stretch in Rhode Island and a 10-mile stretch in Massachusetts. 
We must make appropriate improvements to our railroad tracks and 
bridges to allow high speed rail to work properly.
  While the U.S. is investing heavily in other forms of transportation, 
our investment in world class rail is dwarfed by other countries. For 
example, Germany's federal government gives its states $8.9 billion a 
year for rail projects, France spends twenty times more per capita on 
rail than the U.S., and the Ministry of Railways in China invested 
$19.6 billion in rail in the first half of 2008 alone. That is why we 
need to provide a constant source of funding for investment in high-
speed rail. The High-Speed Rail for America Act of 2008 will take our 
outdated and underfunded passenger rail system and transform it into a 
world class system.
  The High-Speed Rail for America Act of 2008 builds on the 
authorization of highspeed rail grants by providing billions of dollars 
in both tax exempt and tax credit bonds. It provides assistance for 
rail projects of various speeds. The bill creates the Office of High-
Speed Passenger Rail to oversee the development of high-speed rail and 
provides a consistent source of funding. This office will ensure that 
we have the leadership to keep this mission on track.
  High-speed rail is often the fastest and most reliable way to get 
from downtown to downtown between most cities 100-500 miles apart. 
High-speed rail can save up to an hour per trip when compared to air 
travel and reduces trip time by more than 50 percent compared to 
driving. The legislation provides $8 billion over a 6-year period for 
tax-exempt bonds which finance high-speed rail projects which reach a 
speed of at least 110 miles per hour. This speed is often most 
practical for corridors of less than 100 miles or for less travelled 
routes which cannot justify the investment into world class high-speed 
rail traveling at 150 miles per hour.
  The High-Speed Rail for America Act of 2008 also creates a new 
category of tax-credit bonds: qualified rail bonds. There are two 
types: super high-speed intercity rail facility bond and rail 
infrastructure bond. Super high-speed rail intercity facility bonds 
will encourage the development of true high-speed rail. The legislation 
provides $10 billion for these bonds over a six-year period. Rail 
projects that reach a speed of at least 150 miles per hour will be 
eligible for these bonds. This would help finance projects including 
the proposed California corridor and make needed improvements to the 
Northeast corridor.
  Rail infrastructure bonds will fund projects approved by the U.S. 
Department of Transportation and be part of a State's official rail 
plan. The High-Speed Rail for America Act of 2008 provides $5.4 billion 
over a 6-year period for this type of bond. The Federal Rail 
Administration has already designated ten rail corridors that these 
bonds could help fund, including connecting the cities of the Midwest 
through Chicago, connecting the cities of the Northwest, connecting the 
major cities within Texas and Florida, and connecting all the cities up 
and down the East Coast. These are projects that are ready to go, but 
they need a source of financing.
  The need for a bold shift in the way we approach transportation is 
clear. Traffic congestion continues to worsen in cities across the 
country, creating a $78 billion drain on the U.S. economy with 4.2 
billion lost man hours of work and 2.8 billion gallons of wasted fuel. 
Last year, domestic flight delays cost the economy $41 billion and 
consumed about 740 million additional gallons of jet fuel waiting on 
the ground. Passenger rail reduces congestion and is an effective 
alternative to highway and air transportation. Americans want 
alternatives--and we can deliver them.
  We must focus on making the transportation sector part of the 
solution to global climate change. The transportation sector accounts 
for approximately one-third of U.S. CO2 emissions--and 
automobiles make up 60 percent of that. Public transportation is an 
essential part of the solution to global warming. According to the 
American Public Transportation Association, public transportation 
reduces CO2 emissions by 37 million metric tons annually and 
saves the average American household over $6,000 annually.
  The demand for alternative forms of transportation is only growing. 
The number of people riding Amtrak surged by more than 13 percent in 
July 2008 from a year earlier--the most passengers carried in any month 
during Amtrak's 37 year history. Amtrak ridership set an all-time 
record for fiscal year 2008, achieving growth of 11 percent.
  As we look towards economic stimulus legislation next year, we must 
rethink the approach we have taken towards mobility in this country. 
Countries around the world have realized the benefits of high-speed 
rail and continue to build out their systems as we fall farther and 
farther behind. For far too long, we have not made adequate investment 
in our infrastructure. We cannot let this pattern continue.
  We have all heard the skeptics and cynics dismiss the idea of high-
speed rail for decades, but due to high energy prices, increased 
passenger rail ridership, and the need to reduce greenhouse gasses, the 
time is ripe for a big change. Not only will this change create a 
modern and reliable transportation network in the Untied States, it 
will provide tens of thousands of good new jobs and help stimulate the 
sluggish economy.
  I pledge to continue fighting for the development of a modern high-
speed rail system connecting the major cities across America, and I ask 
all my colleagues to support making this vision a reality.
                                 ______
                                 
      By Mr. DODD (for himself and Mr. Hatch):

[[Page S10664]]

  S. 3701. A bill to provide assistance to Best Buddies to support the 
expansion and development of mentoring programs, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. DODD. Mr. President, I rise today to introduce with Senator Orrin 
Hatch the Best Buddies Empowerment for People with Intellectual 
Disabilities Act of 2008. The bill we are introducing would help to 
integrate individuals with intellectual disabilities into their 
communities, improve their quality of life and promote the 
extraordinary gifts of these individuals.
  I am proud to be introducing this bill with my good friend Senator 
Hatch. He has been a long time leader in this cause, and most recently 
worked with Senator Harkin, Senator Kennedy, myself and others to pass 
the Americans with Disabilities Act Amendments Act of 2008. We, as a 
society, have an obligation to do all we can to include individuals 
with disabilities and help them to reach their full potentials.
  Yet, as one study on teen attitudes notes: ``Legal mandates cannot, 
however, mandate acceptance by peers, neighbors, fellow employees, 
employers or any of the other groups of individuals who directly impact 
the lives of people with disabilities.'' People with intellectual 
disabilities have indeed gained many rights that have improved their 
lives; however, negative stereotypes abound. Social isolation, 
unfortunately, is the norm for people with intellectual disabilities.
  Early intervention, effective education, and appropriate support go a 
long way to helping someone with intellectual disabilities achieve at 
the best of his or her abilities and lead a meaningful life in the 
community. I would like to tell you about the accomplishments of Best 
Buddies, a remarkable non-profit organization that is dedicated to 
helping people with intellectual disabilities develop relationships 
that will provide the kind of support that will help them reach their 
potential.
  Founded in 1989, Best Buddies is the only national social and 
recreational program in the United States for people with intellectual 
disabilities. Best Buddies works to enhance the lives of people with 
intellectual disabilities by providing opportunities for friendship and 
integrated employment. Through more than 1,000 volunteer-run chapters 
at middle schools, high schools and colleges, students with and without 
intellectual disabilities are paired up in a one-to-one mentoring 
friendship. Best Buddies also facilitates an Internet pen pal program, 
an adult friendship program, and a supported employment program.
  Approximately 7 million people in the United States have an 
intellectual disability; every one of these individuals would benefit 
from the kind of relationships that the Best Buddies programs help to 
establish. The resulting friendships are mutually beneficial, 
increasing the self-esteem, confidence, and abilities of people both 
with and without intellectual disabilities.
  The legislation we are introducing today allows the Secretary of 
Education to award grants to promote the expansion of the Best Buddies 
programs and to increase participation in and public awareness about 
these programs. The bill authorizes $10 million for fiscal year 2009 
and such sums as necessary through fiscal year 2013. If passed, this 
legislation would allow Best Buddies to expand their work and offer 
programs in every state in America, helping to create a more inclusive 
society with a direct and positive impact on more than 1.2 million 
citizens.
  I thank my colleague Senator Hatch for working with me on this 
legislation. And I applaud Representatives Hoyer and Blunt, who have 
introduced a similar measure in the House. I urge my colleagues to join 
with me in supporting this important legislation that will make a 
positive--and needed--difference in the lives of individuals with 
intellectual disabilities and in the lives of those with whom they 
develop relationships.
  Mr. President, I ask unanimous consent that the text of this bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3701

       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 ``Best Buddies Empowerment for 
     People with Intellectual Disabilities Act of 2008''.

     SEC. 2. FINDINGS AND PURPOSE.

       (a) Findings.--Congress finds the following:
       (1) Best Buddies operates the first national social and 
     recreational program in the United States for people with 
     intellectual disabilities.
       (2) Best Buddies is dedicated to helping people with 
     intellectual disabilities become part of mainstream society.
       (3) Best Buddies is determined to end social isolation for 
     people with intellectual disabilities by establishing 
     meaningful friendships between them and their non-disabled 
     peers in order to help increase the self-esteem, confidence, 
     and abilities of people with and without intellectual 
     disabilities.
       (4) Since 1989, Best Buddies has enhanced the lives of 
     people with intellectual disabilities by providing 
     opportunities for 1-to-1 friendships and integrated 
     employment.
       (5) Best Buddies is an international organization spanning 
     1,300 middle school, high school, and college campuses.
       (6) Best Buddies implements programs that will positively 
     impact more than 350,000 individuals in 2008 and expects to 
     impact 500,000 people by 2010.
       (7) The Best Buddies Middle Schools program matches middle 
     school students with intellectual disabilities with other 
     middle school students and creates 1-to-1 friendships between 
     them.
       (8) The Best Buddies High Schools program matches high 
     school students with intellectual disabilities with other 
     high school students and creates 1-to-1 friendships between 
     them.
       (9) The Best Buddies Colleges program matches adults with 
     intellectual disabilities with college students and creates 
     1-to-1 friendships between them.
       (10) The Best Buddies e-Buddies program creates e-mail 
     friendships between people with and without intellectual 
     disabilities.
       (11) The Best Buddies Citizens program pairs adults with 
     intellectual disabilities in 1-to-1 friendships with other 
     individuals in the corporate and civic communities.
       (12) The Best Buddies Jobs program promotes the integration 
     of people with intellectual disabilities into the community 
     through supported employment.
       (b) Purpose.--The purposes of this Act are to--
       (1) provide support to Best Buddies to increase 
     participation in and public awareness about Best Buddies 
     programs that serve people with intellectual disabilities;
       (2) dispel negative stereotypes about people with 
     intellectual disabilities; and
       (3) promote the extraordinary gifts of people with 
     intellectual disabilities.

     SEC. 3. ASSISTANCE FOR BEST BUDDIES.

       (a) Education Activities.--The Secretary of Education may 
     award grants to, or enter into contracts or cooperative 
     agreements with, Best Buddies to carry out activities to 
     promote the expansion of Best Buddies, including activities 
     to increase the participation of people with intellectual 
     disabilities in social relationships and other aspects of 
     community life, including education and employment, within 
     the United States.
       (b) Limitations.--
       (1) In general.--Amounts appropriated to carry out this Act 
     may not be used for direct treatment of diseases, medical 
     conditions, or mental health conditions.
       (2) Administrative activities.--Not more than 5 percent of 
     amounts appropriated to carry out this Act for a fiscal year 
     may be used for administrative activities.
       (c) Rule of Construction.--Nothing in this Act shall be 
     construed to limit the use of non-Federal funds by Best 
     Buddies.

     SEC. 4. APPLICATION AND ANNUAL REPORT.

       (a) Application.--
       (1) In general.--To be eligible for a grant, contract, or 
     cooperative agreement under section 3(a), Best Buddies shall 
     submit an application at such time, in such manner, and 
     containing such information as the Secretary of Education may 
     require.
       (2) Content.--At a minimum, an application under this 
     subsection shall contain the following:
       (A) A description of activities to be carried out under the 
     grant, contract, or cooperative agreement.
       (B) Information on specific measurable goals and objectives 
     to be achieved through activities carried out under the 
     grant, contract, or cooperative agreement.
       (b) Annual Report.--
       (1) In general.--As a condition of receipt of any funds 
     under section 3(a), Best Buddies shall agree to submit an 
     annual report at such time, in such manner, and containing 
     such information as the Secretary of Education may require.
       (2) Content.--At a minimum, each annual report under this 
     subsection shall describe the degree to which progress has 
     been made toward meeting the specific measurable goals and 
     objectives described in the applications submitted under 
     subsection (a).

     SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary of 
     Education for grants, contracts, or cooperative agreements 
     under section 3(a), $10,000,000 for fiscal year 2009, and 
     such sums as may be necessary for each of the 4 succeeding 
     fiscal years.

[[Page S10665]]

                                 ______
                                 
      By Ms. SNOWE (for herself and Mr. Whitehouse):
  S. 3704. A bill to authorize additional Federal Bureau of 
Investigation field agents to investigate financial crimes; to the 
Committee on the Judiciary.
  Ms. SNOWE. Mr. President, I rise to introduce legislation with 
Senator WHITEHOUSE to extend the reach of the Federal Bureau of 
Investigation into financial crimes that may have helped precipitate 
the economic meltdown of the past several months.
  We must investigate and scrutinize this financial crisis as we would 
a terrorist attack in order to determine its causes and how to preempt 
another economic collapse in the United States.
  Following the September 11th attacks, the FBI re-directed 
approximately 1,000 agents to counterterrorism and counterintelligence 
activities. Without a doubt, there is no argument that our country has 
benefitted from the dedicated efforts of the men and women of the FBI 
who are performing this valuable work.
  Over a 10-year period, from fiscal year 1999 to fiscal year 2008, 
Congress has increased direct appropriations for the FBI from $2.993 
billion and 26,693 positions to $6.658 billion, 122 percent increase, 
and 30,211 positions, 13 percent increase. Most of these new resources 
were provided in the wake of the September llth terrorist attacks, as 
the FBI redirected its resources toward combating domestic and 
international terrorism by improving its intelligence gathering and 
processing capabilities. As a consequence, for fiscal year 2008, about 
60 percent of FBI funding and staffing is allocated to national 
security programs, including counterterrorism and counterintelligence.
  In view of the breadth and severity of the economic crisis brought on 
by events in U.S. financial markets, however, I am very concerned that 
criminal wrongdoing may have played a significant role in crippling 
some of America's largest companies. Criminal activity, such as fraud, 
misrepresentation, self-dealing, and insider trading may have 
instigated or exacerbated the financial industry upheaval of 2008.
  In order to augment FBI investigations of financial crimes, the FBI 
Priorities Act of 2008 authorizes $150 million for each of the fiscal 
years 2009 through 2013 to fund approximately 1,000 Federal Bureau of 
Investigation field agents in addition to the number of field agents 
serving on the date of enactment. It is my hope that this extra 
manpower will enable the FBI to develop leads on unlawful actions, dig 
deeply into those leads, and bring responsible parties to justice. The 
American public deserves no less.
                                 ______
                                 
      By Ms. SNOWE:
  S. 3705. A bill to amend the Small Business Act and the Small 
Business Investment Act of 1958 to stop the small business credit 
crunch, and for other purposes; to the Committee on Finance.
  Ms. SNOWE. Mr. President, I rise today to introduce the 10 Steps for 
a Main Street Economic Recovery Act of 2008, a measure that will take 
dramatic action to finance the growth of our Nation's small businesses, 
which represent 99.7 percent of all employers and create approximately 
75 percent of net jobs each year. Our country faces a financial crisis 
of unprecedented severity that is choking off economic growth and small 
business survival by denying all businesses, but especially small 
firms, access to the capital they need.
  As Ranking Member of the Senate Committee on Small Business and 
Entrepreneurship, it has long been my goal to expand access to capital 
for small businesses. One of the most valuable assets for realizing 
this goal are the Small Business Administration's, SBA's, core lending 
programs, including the 7(a) and 504 programs. Historically, when 
credit to small businesses has contracted, as is presently the case, 
banks have turned to the SBA in order to make loans to small business 
owners. Yet, regrettably, during these arduous economic times--we are 
not only seeing a significant drop in the amount of business loans made 
but we are also seeing credit lines completely shut down and commercial 
loans canceled.
  Our current economic downturn is drastically more dangerous than any 
threat to our financial system in decades. Banks are tightening their 
lending standards without a similar increase in the volume of SBA 
guaranteed loans to small businesses, creating a domino effect on small 
businesses' job creation ability. The Federal Reserve's November 2008 
Quarterly Loan Officer Survey finds that, in the last quarter, 75 
percent of banks state that they have tightened their lending standards 
for small firms. Not surprisingly, lending in the SBA's 7(a) and 504 
programs have declined dramatically. Over the past year, lending in the 
7(a) program has decreased by 55 percent while loan volume in the 504 
program is down 36 percent. Since the U.S. financial market turmoil 
began in September, overall SBA lending is down by 50 percent from the 
previous year.
  This is why I am introducing the 10 Steps for a Main Street Economic 
Recovery Act, which, as its title indicates, contains a series of 10 
achievable, commonsense steps that could be implemented immediately to 
help thaw out frozen credit markets so that small businesses--both in 
Maine and across the country--can continue to be the driving force of 
our Nation's economy. All of the provisions included in my legislation 
would directly address the credit crunch small firms are facing and 
help them get the capital necessary to finance business growth.
  First, my bill would improve the Small Business Administration's 
flagship lending program, the 7(a) program, by increasing the amount of 
financing, from $2 million to $3 million, that small firms can secure; 
allowing small firms to refinance their 7(a) loans if they can get 
better terms with another lender; and simplifying procedures for the 
loan poolers who bundle SBA loans in a secondary market that will 
generate additional liquidity for small firms and banks.
  As a second step, my bill would directly expand small firms' access 
to credit by making the SBA's Community Express lending program 
permanent. This year, as credit has contracted, demand for the SBA's 
Community Express program has increased dramatically. But, because this 
is a pilot program, its ability to meet this loan demand has been 
severely restricted, forcing lenders to turn borrowers away who qualify 
for Community Express loans.
  My legislation also seeks to bring in new and rural lenders, and 
teach them how to make SBA loans, by establishing an online loan 
underwriting guide to walk lenders through the process. This would 
increase the number of banks making SBA loans, from rural Maine to 
small towns in California, and ultimately promote small business 
owners' overall access to capital.
  As a third step, my bill would improve the SBA's 504 loan program by 
raising the loan limit from $2 million to $3 million. It would also 
permit borrowers to refinance some existing debts into a 504 loan, and 
expands the 504 program's ability to finance projects in low-income 
communities.
  Fourth, the 10 Steps for a Main Street Economic Recovery Act would 
rectify the current lack of liquidity in the 504 program by providing a 
new short-term guarantee on the first loans in the 504 loan package in 
order to encourage investors to buy these securities. Currently, 
without such a guarantee, investors are not purchasing the first loans 
in the 504 loan package. This is preventing Community Development 
Companies, CDCs, from making new 504 loans to small firms. The cost of 
this guarantee will be fully covered by participating 504 lenders. Once 
enacted into law, this temporary guarantee, which would expire at the 
end of fiscal year 2010, would increase investor confidence, encourage 
them to buy 504 investments and resurrect demand for 504 loans.

  Fifth, my legislation contains large, temporary fee reductions to 
defray the cost of borrowing for small business owners and SBA lenders. 
My proposal would reduce overall fees for 7(a) and 504 lenders and 
borrowers by $510 million dollars, a hefty sum considering that the 
SBA's fiscal year 2008 budget was only $663 million. When small firms 
lack access to capital, they are unable to buy new inventory, finance 
new expansions, or often even cover their payrolls. During these 
troubled times, the SBA should do everything within its power, 
including lowering lending fees, to help ensure that small

[[Page S10666]]

firms have access to the credit they require.
  Sixth, as small firms are being turned away from banks and are 
seeking credit through micro-lending organizations, my legislation 
recognizes that the credit crunch has increased the demand for SBA 
microloans. It dedicates $25 million so that SBA microloan providers 
can make additional loans and cover the costs of technical assistance 
associated with these microloans.
  As a seventh step, my bill would raise the maximum amount of 
government guaranteed capital a Small Business Investment Company, 
SBIC, can control, from $130.6 million to $150 million for a single 
SBIC and $225 million for a group of SBICs. This will enable SBICs to 
have additional funds to invest in start-up small businesses, which 
will be critical in driving economic recovery.
  Eighth, this legislation would direct the SBA to develop a nationwide 
advertising strategy to direct small firms to SBA lenders, and 
dedicates $5 million to pay for this strategy. Today, many local and 
community banks have credit they can extend to small firms. 
Unfortunately, many small businesses hear that there is a credit crunch 
and erroneously believe that no other lenders have financing options 
available. This vital advertising will guide small firms to find the 
available resources they need through SBA lenders.
  As a ninth step, my legislation recognizes that taxes 
disproportionately impact small firms' bottom lines. It would provide 
tax breaks that will spur small business growth by extending the 
increased $250,000 small business expensing limit through 2009. This 
will provide small businesses with incentives to invest in plants and 
equipment by reducing their cost of capital. Additionally, the bill 
would provide small firms with an immediate capital injection by 
allowing them to carryback their 2008 or 2009 net operating losses for 
5 years and provide business owners with a longer period over which to 
offset current losses. These measures will help small companies sustain 
operations and continue to employ workers.
  Finally, this legislation would clarify that 7(a) and 504 loans are 
eligible for the Treasury Department's Troubled Asset Relief Program, 
TARP. I have sent a letter, with Senator Kerry, directing the U.S. 
Treasury Department to immediately purchase illiquid 7(a) and 504 
securities from the secondary market in order to free these markets up 
and once again create liquidity for small businesses. Though the 
Treasury already has this authority under the TARP, this provision 
would clarify that authority so the Treasury can act promptly and 
decisively to address the credit crunch's impact on small firms.
  In developing this bill, my office reached out to a host of small 
businesses and lenders, and consulted with the National Association of 
Development Companies and National Association of Guaranteed Government 
Lenders.
  Given the dimensions of what is occurring in our economy, the SBA and 
the Administration must do everything possible to help credit worthy 
small businesses secure the loans they need to innovate, access new 
markets, hire new employees, and grow. Today, as banks are raising 
their credit requirements in order to avoid risk, it is becoming more 
and more difficult for small businesses to qualify for loans. The SBA's 
lending programs are critical to small businesses in this endeavor.
  By implementing the vital provisions contained in the 10 Steps for a 
Main Street Economic Recovery Act, we can increase the opportunities 
for our Nation's small businesses to not only survive during this 
downturn, but to be a catalyst for turning around and reinvigorating 
our economy. I encourage my colleagues to join me in supporting the 10 
Steps for a Main Street Recovery Act.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3705

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; DEFINITIONS.

       (a) Short Title.--This Act may be cited as the ``10 Steps 
     for a Main Street Economic Recovery Act of 2008''.
       (b) Definitions.--In this Act--
       (1) the term ``Administration'' means the Small Business 
     Administration;
       (2) the term ``Administrator'' means the Administrator of 
     the Small Business Administration; and
       (3) the term ``small business concern'' has the same 
     meaning as in section 3 of the Small Business Act (15 U.S.C. 
     632).

     SEC. 2. 7(A) LOANS.

       (a) Maximum Loan Amount.--Section 7(a)(3)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking 
     ``$1,500,000 (or if the gross loan amount would exceed 
     $2,000,000'' and inserting ``$2,500,000 (or if the gross loan 
     amount would exceed $3,000,000''.
       (b) Refinancing Existing Loans.--
       (1) In general.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636) is amended by adding at the end the following:
       ``(34) Refinancing existing loans.--A borrower that has 
     received a loan under this subsection may refinance the 
     balance of the loan by applying for a loan from the lender 
     that made the original loan or with another lender.''.
       (2) Technical amendment.--Section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)) is amended by striking ``(32) 
     Increased'' and inserting ``(33) Increased''.
       (c) Alternative Size Standard.--Section 3(a) of the Small 
     Business Act (15 U.S.C. 632(a)) is amended by adding at the 
     end the following:
       ``(5) Optional size standard.--
       ``(A) In general.--The Administrator shall establish an 
     optional size standard for business loan applicants under 
     section 7(a) and development company loan applicants under 
     title V of the Small Business Investment Act of 1958 (15 
     U.S.C. 695 et seq.) that uses maximum tangible net worth and 
     average net income as an alternative to the industry size 
     standard.
       ``(B) Interim rule.--Until the date on which the optional 
     size standards established under subparagraph (A) are in 
     effect, the alternative size standard in section 121.301(b) 
     of title 13, Code of Federal Regulations, or any successor 
     thereto, may be used by business loan applicants under 
     section 7(a).''.
       (d) Flexibility for Pooling of Large Loans.--Section 
     5(g)(1) of the Small Business Act (15 U.S.C. 634(g)(1)) is 
     amended by--
       (1) inserting ``(A)'' after ``(1)'';
       (2) striking the colon and inserting a period;
       (3) striking ``Provided'' and all that follows through 
     ``certificates'' and inserting the following:
       ``(B) A trust certificate issued under this paragraph''; 
     and
       (4) adding at the end the following:
       ``(C) For a loan of more than $500,000 that has been 
     guaranteed by the Administrator under this Act, the 
     Administrator shall, on the request of a loan pool assembler, 
     divide the amount of such loan into individual guarantees, no 
     1 of which may exceed $500,000. Not more than 1 portion of a 
     loan that has been divided under this subparagraph shall be 
     included in the same pool. Portions of more than 1 loan 
     divided under this subparagraph may be included in the same 
     pool.
       ``(D) A lender that makes or services a loan guaranteed 
     under section 7(a) may purchase or hold all or any part of a 
     loan pool that includes a loan made or serviced by the 
     lender.
       ``(E) A purchase or holding by a lender described in 
     subparagraph (D) shall not affect the guarantee under section 
     7(a) of a loan in a pool.''.

     SEC. 3. COMMUNITY EXPRESS AND RURAL LENDING.

       (a) Community Express Program Established.--Section 7(a) of 
     the Small Business Act (15 U.S.C. 636(a)), as amended by this 
     Act, is amended by adding at the end the following:
       ``(35) Community express program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `community express program' means the loan 
     program under this paragraph;
       ``(ii) the term `eligible small business concern' means--

       ``(I) a small business concern owned and controlled by 
     women, as defined in section 29(a)(3);
       ``(II) a small business concern owned by a qualified Indian 
     tribe;
       ``(III) a small business concern owned and controlled by a 
     socially or economically disadvantaged individual, as 
     determined by the Administrator;
       ``(IV) a small business concern owned and controlled by 
     veterans;
       ``(V) a small business concern owned and controlled by a 
     member of a reserve component of the Armed Forces, as defined 
     in section 101 of title 10, United States Code;
       ``(VI) a small business concern located in an area that the 
     Administrator determines to be a low-income or moderate-
     income area;
       ``(VII) a HUBZone small business concern; and
       ``(VIII) a small business concern located in a special 
     market initiative;

       ``(iii) the term `qualified private lender' means a private 
     lender that meets such requirements as the Administrator 
     shall establish; and
       ``(iv) the term `special market initiative' means a 
     community, market, or industry designated by the Director of 
     a district office of the Administration for economic 
     development purposes.

[[Page S10667]]

       ``(B) Loans of $150,000 or less.--
       ``(i) Authorization.--The Administrator may guarantee 
     timely payment of principal and interest, as scheduled, on a 
     loan of not more than $150,000 issued by a qualified private 
     lender to a small business concern.
       ``(ii) Guarantee percentage.--The Administrator may 
     guarantee not more than 85 percent of the amount of a loan 
     under this subparagraph.
       ``(C) Loans of more than $150,000.--
       ``(i) Authorization.--The Administrator may guarantee 
     timely payment of principal and interest, as scheduled, on a 
     loan of more than $150,000 and not more than $300,000 issued 
     by a qualified private lender to an eligible small business 
     concern under this subparagraph.
       ``(ii) Guarantee percentage.--The Administrator may 
     guarantee not more than 75 percent of a loan the amount of a 
     loan under this subparagraph.
       ``(D) Qualified private lender requirements.--
       ``(i) Technical assistance.--A qualified private lender 
     shall--

       ``(I) ensure that appropriate technical assistance is 
     provided to each borrower that receives a loan under the 
     community express program from the qualified private lender;
       ``(II) encourage a borrower that receives a loan under the 
     community express program from the qualified private lender 
     to use the business development programs of the 
     Administration for technical assistance; and
       ``(III) to the extent practicable, use the loan process to 
     work with a borrower that receives a loan under the community 
     express program from the qualified private lender, in order 
     to--

       ``(aa) develop a business plan, if appropriate;
       ``(bb) assess the strengths and weaknesses of the borrower 
     in management and other relevant areas; and
       ``(cc) provide technical assistance to address any assessed 
     weaknesses of the borrower.
       ``(ii) Collateral policy.--

       ``(I) In general.--The Administrator shall establish a 
     policy relating to collateral for loans under the community 
     express program, which shall permit a qualified private 
     lender to make a loan of not more than $15,000 without 
     collateral.
       ``(II) Limitation.--The policy established by the 
     Administrator may not limit the ability of a qualified 
     private lender to follow any internal procedure of the lender 
     related to collateral.

       ``(iii) Equity of borrowers.--Each qualified private lender 
     shall verify that a borrower receiving a loan under the 
     community express program has an equity stake of at least 10 
     percent in the business concern.
       ``(iv) Financial statements.--Each qualified private lender 
     shall obtain a financial statement from a borrower before 
     making a loan under the community express program.
       ``(v) Sale of loans.--A qualified private lender may not 
     sell more than 80 percent of the total dollar value of the 
     loans made by the qualified private lender under the 
     community express program to another person or entity.
       ``(E) Simplification of rules.--The Administrator shall 
     review the regulations and procedures relating to the 
     community express program to ensure that such regulations and 
     procedures are simple and clear and do not create barriers to 
     participation in the program.
       ``(F) Notice and comment.--The Administrator shall 
     establish policies relating to the community express 
     program--
       ``(i) after notice and the opportunity for comment; and
       ``(ii) not later than 1 year after the date of enactment of 
     this paragraph.''.
       (b) Rural Lender and New Lender Outreach Program.--Section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended 
     by this Act, is amended by adding at the end the following:
       ``(36) Rural lender and new lender outreach program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `new lender' means a lender that has not 
     made more than 20 loans guaranteed by the Administrator 
     during the 3-year period ending on the date on which the 
     applicable loan is submitted (including a lender that has not 
     made a loan guaranteed by the Administration);
       ``(ii) the term `rural area' has the meaning given that 
     term in subsection (m); and
       ``(iii) the term `rural lender' means a lender that--

       ``(I) is located in a rural area; and
       ``(II) made not more than 20 loans guaranteed by the 
     Administration during the 3-year period ending on the date on 
     which the applicable loan application is submitted (including 
     a lender that has not made a loan guaranteed by the 
     Administration).

       ``(B) Program.--The Administrator shall carry out a rural 
     lender and new lender outreach program, under which the 
     Administrator may guarantee timely payment of principal and 
     interest, as scheduled, on a loan to a small business concern 
     of not more than $500,000 made by a rural lender or a new 
     lender.
       ``(C) Loan processing.--
       ``(i) In general.--The Administrator shall establish, for 
     loans guaranteed under this paragraph--

       ``(I) streamlined application and documentation 
     requirements; and
       ``(II) minimum credit standards necessary to provide for a 
     reasonable assurance of repayment, in accordance with 
     paragraph (6).

       ``(ii) New lender training and certification.--The 
     Administrator may guarantee a loan made by a new lender under 
     this paragraph if the Administrator--

       ``(I) provides the new lender with training described in 
     subparagraph (D); and
       ``(II) determines that the new lender meets minimum 
     standards for program knowledge, borrower eligibility, and 
     underwriting standards.

       ``(iii) Approval or disapproval.--For a loan guaranteed 
     under this paragraph, the Administrator shall approve or 
     disapprove the loan in as expedited manner as practicable.
       ``(D) Training.--At regularly scheduled intervals and upon 
     request by a new lender or rural lender the Administrator 
     shall provide training for new lenders and rural lenders on 
     the loan guarantee program under this subsection.''.
       (c) Electronic Online Loan Underwriting Program Guide.--
       (1) Purpose.--The purpose of this subsection is to assist 
     rural lenders and new lenders in making more loans of good 
     underwriting quality to small business concerns.
       (2) Online underwriting guide.--The Administrator shall 
     establish an online underwriting program guide (in this 
     subsection referred to as the ``guide'') to develop the 
     lending capacity of rural lenders and new lenders (as such 
     terms are defined in paragraph (36) of section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)), as added by this Act).
       (3) Requirements.--The guide--
       (A) is not intended to replace the internal credit scoring 
     and loan approval process of a lender;
       (B) shall demonstrate the steps the Administrator expects a 
     lender to take in making a loan under a program of the 
     Administration;
       (C) shall assist a lender in using the internal credit 
     evaluation processes of the lender to make a loan under a 
     program of the Administration and build the capacity and 
     ability of the lender to make such loans;
       (D) shall provide simple steps to assist a lender that has 
     not made a loan guaranteed by the Administration through the 
     loan application process for a loan under section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a));
       (E) shall include information, guidance, sample 
     documentation, questions and answers, and any other 
     information necessary to guide a lender through the process 
     of making a loan guaranteed by the Administration in a 
     systematic and simple fashion; and
       (F) shall include information relating to--
       (i) loan application and preapproval;
       (ii) loan underwriting;
       (iii) requirements after loan approval;
       (iv) preparation for loan closing;
       (v) closing the loan; and
       (vi) servicing the loan.
       (4) Electronically submitted loans.--The Administrator 
     shall use the guide as a means to increase the number of 
     applications for loan guarantees submitted electronically for 
     approval from rural lenders and new lenders.

     SEC. 4. 504 LOANS.

       (a) Maximum Loan Amounts Under 504 Program.--Section 
     502(2)(A) of the Small Business Investment Act of 1958 (15 
     U.S.C. 696(2)(A)) is amended--
       (1) in clause (i), by striking ``$1,500,000'' and inserting 
     ``$2,250,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$3,000,000''; and
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''.
       (b) Businesses in Low-Income Communities.--
       (1) Goals.--Section 501(d)(3)(A) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 695(d)(3)(A)) is amended by 
     inserting after ``business district revitalization,'' the 
     following: ``or expansion of businesses in a low-income 
     community, as defined in section 45D(e) of the Internal 
     Revenue Code of 1986 and implementing regulations,''.
       (2) Additional incentives.--Section 502 of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696) is amended by 
     adding at the end the following:
       ``(7) Low-income communities.--
       ``(A) Loan amount.--Notwithstanding paragraph (2)(A)(ii), a 
     loan under this section for use in a low-income community 
     described in section 501(d)(3)(A) may not exceed $5,500,000.
       ``(B) Size standards.--For purposes of determining 
     eligibility for a loan under this section for use in a low-
     income community described in section 501(d)(3)(A), the size 
     standards established by the Administrator under section 3 of 
     the Small Business Act (15 U.S.C. 632) shall be increased by 
     25 percent.
       ``(C) Personal liquidity.--
       ``(i) In general.--For any loan under this section for use 
     in a low-income community described in section 501(d)(3)(A), 
     the amount of personal resources of an owner that are 
     excluded from the amount required to be provided to reduce 
     the portion of the project funded by the Administration shall 
     be not less than 25 percent more than that required for other 
     loans under this section.
       ``(ii) Definition.--In this subparagraph, the term `owner' 
     means any person that owns not less than 20 percent of the 
     equity of the small business concern applying for the 
     applicable loan.''.
       (c) Additional Equity Injections.--Section 502(3)(B)(ii) of 
     the Small Business Investment Act of 1958 (15 U.S.C. 
     696(3)(B)(ii)) is amended to read as follows:

[[Page S10668]]

       ``(ii) Funding from institutions.--If a small business 
     concern--

       ``(I) provides the minimum contribution required under 
     subparagraph (C), not less than 50 percent of the total cost 
     of any project financed under clause (i), (ii), or (iii) of 
     subparagraph (C) shall come from the institutions described 
     in subclauses (I), (II), and (III) of clause (i) of this 
     subparagraph; and
       ``(II) provides more than the minimum contribution required 
     under subparagraph (C), any excess contribution may be used 
     to reduce the amount required from the institutions described 
     in subclauses (I), (II), and (III) of clause (i) of this 
     subparagraph, except that the amount from such institutions 
     may not be reduced to an amount that is less than the amount 
     of the loan made by the Administrator.''.

       (d) Refinancing Under the Local Development Business Loan 
     Program.--Section 502 of the Small Business Investment Act of 
     1958 (15 U.S.C. 696), as amended by this Act, is amended by 
     adding at the end the following:
       ``(8) Permissible debt refinancing.--
       ``(A) In general.--Any financing approved under this title 
     may include a limited amount of debt refinancing.
       ``(B) Expansions.--If the project involves expansion of a 
     small business concern which has existing indebtedness 
     collateralized by fixed assets, any amount of existing 
     indebtedness that does not exceed \1/2\ of the project cost 
     of the expansion may be refinanced and added to the expansion 
     cost, if--
       ``(i) the proceeds of the indebtedness were used to acquire 
     land, including a building situated thereon, to construct a 
     building thereon, or to purchase equipment;
       ``(ii) the borrower has been current on all payments due on 
     the existing debt for not less than 1 year preceding the date 
     of refinancing; and
       ``(iii) the financing under section 504 will provide better 
     terms or rate of interest than exists on the debt at the time 
     of refinancing.''.
       (e) Job Creation Requirements.--Section 501(e) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 695(e)) is 
     amended--
       (1) in paragraph (1), by striking ``$50,000'' and inserting 
     ``$65,000''; and
       (2) in paragraph (2), by striking ``$50,000'' and inserting 
     ``$65,000''.

     SEC. 5. GUARANTEE AND SALE OF BANK FINANCINGS WITH 504 LOAN 
                   PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``pool assembler'' means a financial 
     institution that--
       (A) organizes and packages a loan pool by acquiring the 
     guaranteed portion of third party financings guaranteed by 
     the Administrator under subsection (b);
       (B) resells fractional interests in the loan pool to 
     registered holders; and
       (C) directs that the fiscal and transfer agent of the 
     Administrator to issue trust certificates; and
       (2) the term ``third party financing'' means a financing 
     described in section 502(3)(B)(ii) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 696(3)(B)(ii))--
       (A) made on or before the date of enactment of this Act;
       (B) that provides for the payment of interest at a fixed 
     rate or under a variable rate index (plus a spread) based 
     upon Prime rate, a London Interbank Offered Rate (or LIBOR), 
     a Federal Home Loan Bank rate, a United States Treasury rate, 
     or a generally accepted market index rate approved by the 
     Administrator;
       (C) that provides amortized payments with a maturity of not 
     more than 25 years; and
       (D) for which the borrower--
       (i) is current on all payments due on the loan on the date 
     on which the loan is guaranteed under subsection (b); and
       (ii) has not been more than 29 days past due on a payment 
     during the 12-month period ending on the date on which the 
     loan is guaranteed under subsection (b).
       (b) Loan Guarantee.--
       (1) In general.--To the extent amounts are provided in 
     advance in appropriations Acts, and in accordance with this 
     subsection, upon application of a pool assembler who has 
     acquired a third party financing, the Administrator shall 
     guarantee the timely repayment of principal and interest on 
     80 percent of the balance of the third party financing 
     outstanding on the date of the guarantee.
       (2) Lenders.--A lender that made a third party financing 
     guaranteed under paragraph (1)--
       (A) shall--
       (i) agree to hold and service the note issued as part of 
     the third party financing;
       (ii) comply with the reporting and payment remittance 
     requirements of the Administrator; and
       (iii) enter a secondary participation guaranty agreement 
     with the Administrator and the fiscal and transfer agent of 
     the Administrator; and
       (B) may collect and retain all of any applicable prepayment 
     penalties otherwise provided in the event the third party 
     financing is prepaid.
       (3) Guarantee fee.--To cover the costs of guarantees under 
     this subsection and the cost of issuing trust certificates 
     under subsection (c), a lender that made a third party 
     financing guaranteed under paragraph (1) shall pay to the 
     Administrator--
       (A) a one-time fee equal to 1 percent of the net amount of 
     the third party financing guaranteed by the Administration, 
     payable on the date on which the third party financing is 
     guaranteed; and
       (B) a monthly fee on the unpaid balance of the net amount 
     of the third party financing guarantee at the rate of 25 
     basis points per year.
       (4) Maximum amount.--The Administrator may guarantee a 
     total amount of not more than $6,000,000,000 in third party 
     financings under this subsection.
       (5) Termination of authority.--The authority of the 
     Administrator to guarantee a third party financing under this 
     subsection shall terminate on September 30, 2010.
       (6) Appropriation.--In addition to any other amounts 
     appropriated, there are appropriated for the fiscal year 
     ending September 30, 2009, for the ``Business Loans Program 
     Account'' of the Administration, out of any money in the 
     Treasury not otherwise appropriated, $1 for loan subsidies 
     and for loan modifications for guarantees authorized under 
     this subsection, to remain available until expended.
       (c) Trust Certificates.--
       (1) Issuance.--The Administrator may issue a trust 
     certificate representing ownership of all or a fractional 
     part of the guaranteed portion of 1 or more third party 
     financings that have been guaranteed by the Administrator 
     under subsection (b). A trust certificate issued under this 
     subsection shall be based on and backed by a trust or pool 
     approved by the Administrator and composed solely of the 
     entire guaranteed portion of third party financings 
     guaranteed by the Administrator under subsection (b).
       (2) Pooling requirements.--
       (A) Interest rate.--The interest rate on a trust 
     certificate issued under this subsection shall be the 
     weighted average interest rate of all third party financings 
     in the pool. There shall be no limit on the difference 
     between the highest and lowest note interest rates on third 
     party financings forming the pool.
       (B) Maturity.--
       (i) In general.--Each pool may include either--

       (I) third party financings with remaining terms to maturity 
     of 15 years or less; or
       (II) third party financings with remaining terms to 
     maturity of more than 15 years.

       (ii) No other limitations.--Except as provided in clause 
     (i), the Administrator may not limit the difference between 
     the remaining terms to maturity of the third party financings 
     forming a pool.
       (C) Size.--
       (i) In general.--If the amount of the guaranteed portion of 
     any third party financing exceeds $500,000, the Administrator 
     shall, upon request of the pool assembler, divide the amount 
     of the third party financing into individual guarantees no 1 
     of which exceeds $500,000.
       (ii) Divided financings.--Not more than 1 portion of a 
     third party financing that has been divided under this 
     subparagraph shall be included in the same pool. Portions of 
     more than 1 third party financing divided under this 
     subparagraph may be included in the same pool.
       (3) Timely payment.--
       (A) In general.--The Administrator may, upon such terms and 
     conditions as the Administrator determines appropriate, 
     guarantee the timely payment of principal and interest on a 
     trust certificate issued by the Administrator or an agent of 
     the Administrator under this subsection. A guarantee under 
     this paragraph shall be limited to the principal and interest 
     on the guaranteed portions of the third party financings that 
     comprise the trust or pool.
       (B) Prepayment.--If a third party financing in a trust or 
     pool guaranteed under this paragraph is prepaid, either 
     voluntarily or in the event of default, the guarantee of 
     timely payment of principal and interest on the trust 
     certificates shall be reduced in proportion to the amount of 
     principal and interest the prepaid third party financing 
     represents in the trust or pool. Interest on prepaid or 
     defaulted third party financings shall accrue and be 
     guaranteed by the Administrator only through the date of 
     payment on the guarantee. During the term of a trust 
     certificate issued under this subsection, the trust 
     certificate may be called for redemption due to prepayment or 
     default of all third party financings constituting the pool.
       (4) Full faith and credit.--The full faith and credit of 
     the United States is pledged to the payment of all amounts 
     that may be required to be paid under any guarantee of a 
     trust certificate issued by the Administrator or an agent of 
     the Administrator under this subsection.
       (5) Use of agent.--The Administrator shall negotiate an 
     amendment to the contract in effect on the date of enactment 
     of this Act with the agent for fee collection for trust 
     certificates issued under section 5(g) of the Small Business 
     Act (15 U.S.C. 634(g)) to collect the monthly fee under 
     subsection (b)(3)(B) of this section. The agent may receive, 
     as compensation for services, any interest earned on a fee 
     collected under this section while in the control of the 
     agent before the time at which the agent is contractually 
     required to remit the fee to the Administrator.
       (6) Claims.--In the event the Administrator pays a claim 
     under a guarantee issued under this subsection, it shall be 
     subrogated fully to the rights satisfied by such payment.
       (7) Ownership rights.--No State or local law, and no 
     Federal law, shall preclude or limit the exercise by the 
     Administrator of the ownership rights in the portions of 
     third party financings constituting the trust or pool against 
     which a trust certificate is issued under this subsection.

[[Page S10669]]

       (8) Central registration.--The Administrator--
       (A) shall provide for a central registration of all trust 
     certificates issued under this subsection;
       (B) shall negotiate an amendment to the contract in effect 
     on the date of enactment of this Act with the agent for 
     central registration of trust certificates issued pursuant to 
     section 5(h) of the Small Business Act (15 U.S.C. 634(h)) to 
     carry out on behalf of the Administrator the central 
     registration functions under this subsection and the issuance 
     of trust certificates to facilitate pooling, under which--
       (i) the agent may be compensated through any of the fees 
     collected under this section and any interest earned on any 
     funds collected by the agent while such funds are in the 
     control of the agent and before the time at which the agent 
     is contractually required to transfer such funds to the 
     Administrator or to the holders of the trust certificates, as 
     appropriate; and
       (ii) the agent shall provide a fidelity bond or insurance 
     in such amounts as the Administrator determines to be 
     necessary to fully protect the interest of the Government; 
     and
       (C) may--
       (i) use a book-entry or other electronic form of 
     registration for trust certificates issued under this 
     subsection; and
       (ii) with the consent of the Secretary of the Treasury, use 
     the book-entry system of the Federal Reserve System.
       (9) Sale.--The Administrator shall, before any sale of a 
     trust certificate issued under this subsection, require the 
     seller to disclose to the purchaser of the trust certificate 
     information on the terms, conditions, and yield of such 
     instrument.
       (10) Brokers and dealers.--The Administrator may issue 
     regulations relating to the brokering of and dealing in trust 
     certificates sold under this subsection.
       (11) Termination of authority.--The authority of the 
     Administrator to issue trust certificates under this 
     subsection shall terminate on September 30, 2010.
       (d) Implementation.--Not later than 30 days after the date 
     of enactment of this Act, the Administrator shall issue 
     interim final regulations to carry out this section.
       (e) Lender Purchase Eligibility.--
       (1) In general.--A lender that made or services a loan 
     guaranteed under section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) or a third party financing guaranteed under 
     subsection (b) of this section may purchase and hold all or 
     any part of a loan pool which includes a loan or third party 
     financing made or serviced by the lender.
       (2) No effect on guarantee.--A purchase described in 
     subparagraph (A) shall not affect the guarantee of a loan or 
     third party financing in a pool.

     SEC. 6. EMERGENCY SHORT TERM FEE REDUCTIONS.

       (a) Lender Oversight Fees.--
       (1) Temporary reduction in fees.--
       (A) In general.--To the extent amounts are provided in 
     advance in appropriations Acts, the Administrator shall, in 
     lieu of the fee otherwise applicable under section 5(b)(14) 
     of the Small Business Act (15 U.S.C. 634(b)(14)), collect no 
     fee.
       (B) Authorization of appropriations.--There are authorized 
     to be appropriated for salaries and expenses of the 
     Administration relating to examinations, reviews, and other 
     lender oversight activities relating to loans under section 7 
     of the Small Business Act (15 U.S.C. 636)--
       (i) $10,000,000 for each of fiscal years 2009 and 2010; and
       (ii) such sums as may be necessary for each fiscal year 
     thereafter.
       (2) Report on making fees contingent on performance.--Not 
     later than 6 months after the date of enactment of this Act, 
     the Administrator, in consultation with lenders that have 
     made loans guaranteed under section 7 of the Small Business 
     Act (15 U.S.C. 636), shall submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives a report 
     regarding the feasibility of assessing annual fees under 
     section 7(a)(23)(A) of the Small Business Act (15 U.S.C. 
     636(a)(23)(A)) in an amount that is contingent on the 
     performance of the lender, including consideration of the 
     meeting the requirement under section 7(a)(1) of that Act (15 
     U.S.C. 636(a)(1)) of providing credit to applicants than 
     cannot obtain credit elsewhere. The report under this 
     paragraph may include proposed legislation.
       (b) Fee Reductions.--
       (1) New 7(a) lender defined.--In this subsection the term 
     ``new 7(a) lender'' means a lender that has not made more 
     than 20 loans guaranteed by the Administrator under section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)) during the 
     3-year period ending on the date on which the Administrator 
     determines the fee under section 7(a)(23)(A) of that Act (15 
     U.S.C. 636(a)(23)(A)) for the lender.
       (2) 7(a) loan fee reductions.--
       (A) In general.--For fiscal years 2009 and 2010, and to the 
     extent the cost of such reduction in fees is offset by 
     appropriations, with respect to each loan guaranteed under 
     section 7(a) of Small Business Act (15 U.S.C. 636(a))--
       (i) the Administrator shall, in lieu of the fee otherwise 
     applicable under section 7(a)(23)(A) of the Small Business 
     Act (15 U.S.C. 636(a)(23)(A)), collect an annual fee in an 
     amount equal to--

       (I) 0.25 percent of the outstanding balance of the deferred 
     participation share of a loan made under section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)) to a small business 
     concern before the date of enactment of this Act; and
       (II) .20 percent of the outstanding balance of the deferred 
     participation share of a loan made by a new 7(a) lender to a 
     small business concern; and

       (ii) with respect to each loan guaranteed under section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)), the 
     Administrator shall, in lieu of the fee otherwise applicable 
     under section 7(a)(18)(A) of the Small Business Act (15 
     U.S.C. 636(a)(18)(A)), (including any additional fee under 
     clause (iv) of that section 7(a)(18)(A)) collect a guarantee 
     fee in an amount equal to--

       (I) 0.75 percent of the deferred participation share of a 
     total loan amount that is not more than $150,000;
       (II) 2 percent of the deferred participation share of a 
     total loan amount that is more than $150,000, and not more 
     than $700,000; and
       (III) 2.5 percent of the deferred participation share of a 
     total loan amount that is more than $700,000.

       (B) Implementation.--In carrying out this paragraph, the 
     Administrator shall reduce the fees for a loan guaranteed 
     under section 7(a) of the Small Business Act (15 U.S.C. 
     636(a)) to the maximum extent possible, subject to the 
     availability of appropriations.
       (C) Application of fee reductions.--If funds are made 
     available to carry out this paragraph, the Administrator 
     shall reduce the fees under subparagraph (A) for any loan 
     guarantee or project subject to such subparagraph for which 
     the application is pending approval on or after the date of 
     enactment of this Act, until the amount provided for such 
     purpose is expended.
       (D) Authorization of appropriations.--There are authorized 
     to be appropriated to the Administrator for each of fiscal 
     years 2009 and 2010--
       (i) $175,000,000 to carry out subparagraph (A)(i);
       (ii) $75,000,000 to carry out subparagraph (A)(ii).
       (3) 504 loan fee and rate reductions.--
       (A) Fee reductions.--
       (i) Fee reductions.--To the extent the cost of such 
     reduction in fees is offset by appropriations, for any loan 
     guarantee or project for which an application is closed on or 
     after the date of enactment of this Act--

       (I) with respect to an institution described in subclause 
     (I), (II), or (III) of section 502(3)(B)(i) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696(3)(B)(i)), the 
     Administrator shall, in lieu of the fees otherwise applicable 
     under section 503(d)(2) of the Small Business Investment Act 
     of 1958 (15 U.S.C. 697(d)(2)), collect no fee;
       (II) a development company shall, in lieu of the mandatory 
     0.625 servicing fee under section 120.971(a)(3) of title 13, 
     Code of Federal Regulations, (relating to fees paid by 
     borrowers), or any successor thereto, collect no fee; and
       (III) the Administrator shall, in lieu of the fee otherwise 
     applicable under section 503(d)(3) of the Small Business 
     Investment Act (15 U.S.C. 697(d)(3)), collect no fee.

       (ii) Reimbursement for waived fees.--

       (I) In general.--To the extent the cost of such payments is 
     offset by appropriations, the Administrator shall reimburse 
     each development company that does not collect a servicing 
     fee pursuant to clause (i)(II).
       (II) Amount.--The payment to a development company under 
     subclause (I) shall be in an amount equal to 0.5 percent of 
     the outstanding principal balance of any guaranteed debenture 
     for which the development company does not collect a 
     servicing fee pursuant to clause (i)(II).

       (iii) Authorization of appropriations.--There are 
     authorized to be appropriated to the Administrator for each 
     of fiscal years 2009 and 2010--

       (I) $50,000,000 for the elimination of fees under clause 
     (i)(I);
       (II) $40,000,000 for payments under clause (ii) to offset 
     the elimination of fees under clause (i)(II); and
       (III) $10,000,000 for the elimination of fees under clause 
     (i)(III).

       (B) Rate reduction.--
       (i) In general.--To the extent that the cost of making an 
     interest rate reduction is offset by appropriations, the 
     Administrator shall pay, on behalf of a small business 
     borrower, an amount equal to 100 basis points of the interest 
     rate required to be paid by the borrower on the amount of the 
     guarantee provided under title V of the Small Business 
     Investment Act of 1958 (15 U.S.C. 695 et seq.), if the loan 
     is closed on or after the date of enactment of this Act.
       (ii) Frequency of payment.--The Administrator shall make a 
     payment under clause (i) on a semiannual basis.
       (iii) Method of payment.--The Administrator may use a 
     central servicing agent to make a payment under clause (i).
       (iv) Notice to development company.--The Administrator 
     shall notify a development company that receives a payment 
     under clause (i) when funds are made available for the rate 
     reduction under clause (i).
       (v) Implementation.--A development company that receives a 
     payment under clause (i) shall--

       (I) use the payments solely for the purpose provided; and
       (II) adjust the amount of the monthly payment by the 
     borrower accordingly.

       (vi) Authorization of appropriations.--There is authorized 
     to be appropriated to the Administrator for each of fiscal 
     years 2009

[[Page S10670]]

     and 2010, $150,000,000 for payments made under clause (i).

     SEC. 7. MICROLENDING.

       In addition to any amounts otherwise authorized to be 
     appropriated for such purposes, there are authorized to be 
     appropriated to the Administrator for each of fiscal years 
     2009 and 2010--
       (1) $5,000,000 for direct loans under section 7(m) of the 
     Small Business Act (15 U.S.C. 636(m)); and
       (2) $20,000,000 for grants to intermediaries for marketing, 
     management, and technical assistance under section 7(m)(4) of 
     the Small Business Act (15 U.S.C. 636(m)(4)).

     SEC. 8. SMALL BUSINESS INVESTMENT COMPANIES.

       Section 303(b) of the Small Business Investment Act of 1958 
     (15 U.S.C. 683(b)) is amended--
       (1) by striking paragraph (2) and inserting the following:
       ``(2) Maximum leverage.--
       ``(A) In general.--The maximum amount of outstanding 
     leverage made available to any 1 company licensed under 
     section 301(c) may not exceed the lesser of--
       ``(i) 300 percent of the private capital of the company; or
       ``(ii) $150,000,000.
       ``(B) Multiple licenses under common control.--The maximum 
     amount of outstanding leverage made available to 2 or more 
     companies licensed under section 301(c) that are commonly 
     controlled (as determined by the Administrator) and the 
     private capital of which the Administrator determines meets 
     the requirements of subsection (e) may not exceed 
     $225,000,000.''; and
       (2) by striking paragraph (4).

     SEC. 9. EMERGENCY SMALL BUSINESS LENDING ADVERTISING 
                   STRATEGY.

       Section 4 of the Small Business Act (15 U.S.C. 633) is 
     amended by adding at the end the following:
       ``(i) Emergency Small Business Lending Advertising 
     Strategy.--
       ``(1) Purpose.--The purpose of this subsection is to ensure 
     that the Administrator provides information to the owners of 
     small business concerns regarding lenders in their areas that 
     participate in programs of the Administration and that will 
     allow small business concerns to access business capital 
     during a liquidity and capital lending shortage.
       ``(2) Lending advertising strategy.--The Administrator 
     shall develop an emergency small business lending advertising 
     strategy to inform small business concerns located throughout 
     the United States that loans under this Act are available 
     through lenders that participate in programs of the 
     Administration.
       ``(3) Media.--The Administrator shall use print, radio, 
     television, and Internet advertisement, where appropriate, to 
     carry out this subsection.
       ``(4) Effective date.--Not later than 30 days after the 
     date of enactment of this Act, the Administrator shall 
     implement the emergency small business lending advertising 
     strategy.
       ``(5) Authorization of appropriations.--There are 
     authorized to be appropriated to carry out this subsection--
       ``(A) $5,000,000 for each of fiscal years 2009 and 2010; 
     and
       ``(B) such sums as may be necessary for each fiscal year 
     thereafter.''.

     SEC. 10. TAX PROVISIONS.

       (a) Extension of Temporary Increase in Limitations on 
     Expensing of Certain Depreciable Business Assets.--
       (1) In general.--Paragraph (7) of section 179(b) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by inserting ``and 2009'' after ``2008'' in the 
     heading, and
       (B) by inserting ``or 2009'' after ``In the case of any 
     taxable year beginning in 2008''.
       (2) Effective date.--The amendments made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2008.
       (b) Carryback of Certain Net Operating Losses Allowed for 5 
     Years; Temporary Suspension of 90 Percent AMT Limit.--
       (1) In general.--Subparagraph (H) of section 172(b)(1) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(H) 5-year carryback of certain losses.--
       ``(i) Taxable years ending during 2001 and 2002.--In the 
     case of a net operating loss for any taxable year ending 
     during 2001 or 2002, subparagraph (A)(i) shall be applied by 
     substituting `5' for `2' and subparagraph (F) shall not 
     apply.
       ``(ii) Taxable years ending during 2008 and 2009.--In the 
     case of a net operating loss with respect to any eligible 
     taxpayer for any taxable year ending during 2008 or 2009--

       ``(I) subparagraph (A)(i) shall be applied by substituting 
     `5' for `2',
       ``(II) subparagraph (E)(ii) shall be applied by 
     substituting `4' for `2', and
       ``(III) subparagraph (F) shall not apply.

       ``(iii) Eligible taxpayer.--For purposes of clause (ii), 
     the term `eligible taxpayer' means a corporation or 
     partnership which meets the gross receipts test of section 
     448(c) (determined by substituting `$10,000,000' for 
     `$5,000,000' and `5-taxable-year period' for `3-taxable-year 
     period') for the taxable year in which the loss arose (or, in 
     the case of a sole proprietorship, which would meet such test 
     if such proprietorship were a corporation.''.
       (2) Temporary suspension of 90 percent limit on certain nol 
     carrybacks and carryovers.--
       (A) In general.--Section 56(d) of the of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new paragraph:
       ``(3) Additional adjustments.--For purposes of paragraph 
     (1)(A), in the case of an eligible taxpayer (as defined in 
     section 172(b)(1)(H)(iii)), the amount described in clause 
     (I) of paragraph (1)(A)(ii) shall be increased by the amount 
     of the net operating loss deduction allowable for the taxable 
     year under section 172 attributable to the sum of--
       ``(A) carrybacks of net operating losses from taxable years 
     ending during 2008 and 2009, and
       ``(B) carryovers of net operating losses to taxable years 
     ending during 2008 or 2009.''.
       (B) Conforming amendment.--Subclause (I) of section 
     56(d)(1)(A)(i) of such Code is amended by inserting ``amount 
     of such'' before ``deduction described in clause (ii)(I)''.
       (3) Anti-abuse rules.--The Secretary of Treasury or the 
     Secretary's designee shall prescribe such rules as are 
     necessary to prevent the abuse of the purposes of the 
     amendments made by this subsection, including anti-stuffing 
     rules, anti-churning rules (including rules relating to sale-
     leasebacks), and rules similar to the rules under section 
     1091 of the Internal Revenue Code of 1986 relating to losses 
     from wash sales.
       (4) Effective dates.--
       (A) Subsection (a).--The amendments made by paragraph (1) 
     shall apply to net operating losses arising in taxable years 
     ending in 2008 or 2009.
       (B) Subsection (b).--The amendments made by paragraph (2) 
     shall apply to taxable years ending after December 31, 2007.

     SEC. 11. TROUBLED ASSETS.

       Section 3(9) of the Emergency Economic Stabilization Act of 
     2008 (division A of Public Law 110-343) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (3) by inserting after subparagraph (A) the following:
       ``(B) a trust certificate issued by the Administrator of 
     the Small Business Administration under section 5(g) of the 
     Small Business Act (15 U.S.C. 634(g)), a loan guaranteed by 
     the Small Business Administration under section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)), and a trust 
     certificate issued under section 505 of the Small Business 
     Investment Act of 1958 (15 U.S.C. 697), including an 
     underlying debenture, the purchase of which the Secretary 
     determines promotes financial market stability; and''.
                                 ______
                                 
      By Mrs. CLINTON:
  S. 3706. A bill to amend part D of title IV of the Social Security 
Act to prohibit States from charging child support recipients for the 
collection of child support; to the Committee on Finance.
  Mrs. CLINTON. Mr. President, in a time of rising prices and historic 
economic turmoil, single parents deserve our support more than ever. 
That is why I am introducing the Elimination of the Single Parent Tax 
Act of 2008. I am proud to join my colleague Congresswoman Gillibrand 
in introducing this important legislation to help single parents by 
suspending State fees to fund child support enforcement.
  Many states, including New York, were forced to institute this fee 
after the Republican-lead Congress passed the Deficit Reduction Act of 
2005, which slashed funding for child support enforcement. The fee is 
expected to affect 170,000 families in New York alone. These single 
parents need every penny of their child support income to go towards 
food, medicine, and other important expenses. The Elimination of the 
Single Parent Tax Act ensures that hard-working single parents don't 
face an extra tax.
  In September, I joined my Senate colleagues in urging the Senate 
Appropriations Committee leadership to increase funding for child 
support enforcement to stave off these deep cuts. And today, I 
encourage my colleagues to join me in sponsoring this critical measure 
to support single parents.
  For too long, single-parent households have been ignored at a time 
when raising children has only become more of a struggle. Yet despite 
these challenges, single parents heroically soldier on. This bill is 
only a critical first step to a more comprehensive approach to 
supporting single parents raising children. I look forward to 
continuing to fight in the Senate to stand up for our most vulnerable 
children and our hardest-working families.
                                 ______
                                 
      By Mrs. CLINTON:
  S. 3707. A bill to recruit, train, and support principals for high-
need schools who are effective in improving student academic 
achievement; to the Committee on Health, Education, Labor, and 
Pensions.
  Mrs. CLINTON. Mr. President, I rise today to introduce legislation to 
address the urgent need of our underserved urban and rural school 
districts

[[Page S10671]]

by creating a corps of principals who are well-prepared, supported, and 
effective in improving student academic achievement in high-need 
schools and ensuring our schools are provided the leadership they need 
to prepare our children to compete in the 21st century.
  The U.S. Department of Labor estimates that nearly 40 percent of the 
90,000 principals in this country are nearing retirement, and over half 
the Nation's school districts are facing immediate administrator 
shortages. This problem is particularly prevalent in urban and rural 
districts with large concentrations of high-poverty schools, where 
turnover rates can reach as high as 20 percent per year, and academic 
achievement is persistently low.
  That is why I'm introducing the National Principal Recruitment, NPR, 
Act, which seeks to address the impending shortage by establishing a 
corps of principals who are well-prepared, supported, and effective in 
improving student achievement in high-need schools. This corps is 
created through the recruitment of results-oriented candidates who 
possess personal leadership and management skills, knowledge of 
effective instruction, and commit to serve in high-need schools for 
over 5 years. Once selected, these candidates would undergo a year-long 
principal residency program, and receive support and mentoring to help 
them develop and maintain a data-driven, professional learning 
community.
  This bill leverages non-Federal dollars with targeted funding to 
performance-based work done in partnership with school districts. It 
also includes an evaluation to capture knowledge and best practices and 
creates a prototype of a performance-based Federal education program by 
tying funding levels to an evaluation of student achievement results.
  An effective and capable school leader can make the difference in 
providing the tools and instructional support needed to foster the type 
of school environment conducive to student academic success. The NPR 
Act will ensure that our neediest schools have effective leaders, who 
are well-equipped and supported, to close the achievement gap and 
prepare our students to compete in a global economy.
  I am hopeful that my Senate colleagues from both sides of the aisle 
will join me today to move this legislation to the floor without delay.
                                 ______
                                 
      By Mrs. CLINTON:
  S. 3708. A bill to amend the Public Health Service Act with respect 
to health professions education, and for other purposes; to the 
Committee on Health, Education, Labor, and Pensions.
  Mrs. CLINTON. Mr. President, today, I am introducing the Health 
Professions and Primary Care Reinvestment Act in order to improve 
access to quality health care for all Americans. By significantly 
reinvesting in the training and education of our health professionals, 
we are reinvesting in our communities where care is most needed.
  This bill reinvests in health professional training in three ways--by 
expanding the training our health professionals receive, by improving 
our efforts to recruit and retain health professionals, and by 
increasing incentives for health professionals who are serving in 
community settings, particularly in rural and urban underserved areas.
  Most Americans prefer to get their health care through a personal 
physician operating as part of a team-based primary care practice, yet 
the number of health professional students entering these fields is 
decreasing. We need more workers in primary care at the front lines of 
the health care system. Primary care professionals can help to 
establish a ``medical home'' for patients, providing preventive care to 
help people stay healthy and provide coordination of care for those 
with multiple or chronic diseases. This bill would achieve this goal by 
providing incentives for training primary care professionals, by 
strengthening primary care departments at the school and community 
level, and by supporting improved infrastructure to assist those 
serving in primary care settings.
  Minorities, disadvantaged and rural students are underrepresented in 
our health professional workforce. We need to increase their numbers in 
the medical fields, and provide incentives for them to return to 
underserved areas to practice. As an example of what can be done, one 
program targeting rural students has returned eight times the usual 
number of trained family physicians to rural settings. We need to train 
people from all backgrounds--from underrepresented minorities, from 
disadvantaged backgrounds, from rural and urban underserved 
communities. This bill helps to achieve this goal by strengthening 
pipeline programs, expanding loans and scholarships, and by increasing 
the availability of care in underserved communities.
  We need health care where people live and work. Americans should be 
able to access care in communities that are located far from hospitals 
and medical centers, in the poorest neighborhoods of cities and 
isolated rural areas. We need to support the institutions that the most 
vulnerable rely on for care, like community health centers, local 
departments of health, and nursing homes. This bill supports new models 
of care for training, recruiting, supporting and retaining faculty to 
serve in underserved settings, and provides infrastructure support for 
training students in community settings outside of the hospital, where 
patients need care.
  In addition to addressing primary care, the legislation also works to 
address other health fields which are often inaccessible to patients. 
Dental care in the United States has become a luxury that is 
unaffordable to many people. Dentists are often unable to sustain 
careers by teaching in dental schools training the next generation of 
professionals, or to work in communities where the need is greatest. 
This bill provides support for dentists to pursue academic teaching 
careers and to provide general care to both adults and children. It 
targets underrepresented minority dentists and those who will serve in 
communities where the need is greatest.
  One impediment to good health for people with mental health problems 
is lack of care coordination. Too often the psychological problem goes 
undiagnosed or untreated, because our health care system operates in 
silos. Patients are often asked to go one place to meet physical health 
needs and another place to meet mental health needs. This bill provides 
support for training and care where the health professionals work 
together to co-manage mental health and physical health problems toward 
better overall health.
  We, as a nation, are getting older. As we age, our health concerns 
change. Many seniors take multiple medications which need to be 
coordinated by a team of doctors, pharmacists, and other caregivers. 
The Health Professions and Primary Care Reinvestment Act reinvests in 
our geriatric training programs by expanding opportunities for doctors, 
pharmacists, psychologists, dentists and others to work with patients 
in rehabilitation centers, at home, in nursing homes or other settings 
where people live or work.
  Our public health and preventive medicine professionals respond to 
crises like SARS, anthrax, and other infectious disease outbreaks. But 
they also work to educate the public about ways to stay healthy, and 
prevent chronic diseases. They contribute to the health care safety net 
with services like adult and childhood vaccinations. This bill helps to 
support these efforts by reinvestment in training for prevention. It 
links schools of public health with local and State departments of 
health in order to train professionals to work and serve in settings 
where they are most needed.
  Finally, and very importantly, we must better understand the demands 
that will be made upon our health professional workforce. This bill 
provides authorization for the formation of a national and multiple 
regional health workforce analysis centers, along with an advisory 
committee comprised of administrative and health professional 
leadership. These entities will assess, review and oversee health 
professional workforce needs so that we can plan and prepare a new 
generation of health professionals in our schools and communities.
  The Health Professions and Primary Care Reinvestment Act addresses 
the multiple challenges facing healthcare workforce development in our 
country.

[[Page S10672]]

It will invest in primary care, expand the number of health 
professionals truly representative of the communities they serve, and 
improve the availability of care in places where Americans need it 
most. I look forward to working with my colleagues in the Senate on the 
many issues of our health care workforce, and I would urge their 
support of this legislation.
  Multiple organizations, including Advocating for Family Medicine, 
American Academy of Family Physicians, American Academy of Physician 
Assistants, American Association of Colleges of Osteopathic Medicine, 
American College of Preventive Medicine, American Dental Association, 
American Dental Education Association, American Geriatrics Association, 
American Osteopathic Association, American Psychological Association, 
Association of Departments of Family Medicine, Association of Family 
Medicine Residency Directors, Association of Minority Health 
Professions Schools, Inc., Association of Schools of Public Health, 
Hospital Association of New York State, National AHEC Organization, 
National Council for Diversity in the Health Professions, North 
American Primary Care Research Group, Society of General Internal 
Medicine, and the Society of Teachers of Family Medicine have endorsed 
this legislation.
  Mr. President, I ask unanimous consent that letters of support be 
printed in the Record.
  There being no objection, the material was ordered to be placed in 
the Record, as follows:

                               Advocating for Family Medicine,

                                Washington, DC, November 18, 2008.
     Hon. Hillary Rodham Clinton,
     U.S. Senate,
     Washington, DC.
       Dear Senator Clinton: On behalf of the undersigned 
     organizations, we would like to thank you for introducing the 
     Health Professions and Primary Care Reinvestment Act. Health 
     professions programs, authorized under Title VII of the 
     Public Health Service Act, are vital to enhancing and 
     expanding our nation's health workforce. The Health 
     Professions and Primary Care Reinvestment Act reauthorizes, 
     improves, and revitalizes these programs.
       Within the primary care cluster (Section 747) we are very 
     pleased to see the following:
       Continued support for programs that have proven 
     successful--training in primary care and capacity building in 
     primary care.
       New recognition that an environmental scan of the community 
     and region is a necessary precursor to development of 
     creative training programs that will get primary care 
     physician training out into the community, rather than 
     training remain mostly within the academic health centers.
       Recognition that production of primary care physicians must 
     be increased.
       Recognition that funding for these programs must increase 
     in order to provide a well-prepared workforce for the 21st 
     century, particularly as we move to health care reform.
       In addition, within the scope of the bill as a whole, we 
     appreciate the modification of the statute so that all of the 
     programs authorized by the bill have similar goals and 
     expected outcomes.
       As the Senate begins its work on overall health care 
     reform, we support your efforts to have this bill serve as 
     one of the foundations of reform. True health reform in this 
     country will not be possible without including programs that 
     increase the number of well-trained health professionals. As 
     the Massachusetts experience clearly demonstrates, increasing 
     the number of insured individuals will not ensure increased 
     access to care if there are not enough doctors to treat the 
     newly insured.
       As you know, Title VII Health Professions Programs, 
     particularly those authorized under Section 747, are designed 
     to strengthen our primary care infrastructure. Studies have 
     shown that areas which depend more heavily on primary care 
     within their health care system spend less on health care and 
     have better health outcomes. For example, a study published 
     in Health Affairs from April, 2004 found, ``States with more 
     general practitioners use more effective care and have lower 
     spending, while those with more specialists have higher costs 
     and lower quality.'' (Baicker and Chandra) We know that 
     health reform has two goals: bettering the health of our 
     nation and keeping it as cost efficient as possible. 
     Increasing the proportion of primary care medicine is a major 
     step towards meeting both of these goals, and Title VII, 
     Section 747 programs are the only federal programs that aim 
     to increase the number of primary care physicians.
       Title VII programs have also demonstrated the ability to 
     produce physicians that serve in underserved areas. A recent 
     article in Annals of Family Medicine (Rittenhouse, et al 
     2008) shows that students and residents exposed to Title VII 
     funding are more likely to participate in the National Health 
     Service Corps or practice in a community health center upon 
     completing their training. Both of these programs 
     successfully place physicians where they are most needed.
       Thank you for all of your hard work on the Health 
     Professions and Primary Care Reinvestment Act and for your 
     continued leadership and dedication to health care throughout 
     your career. We urge you to ensure that this important piece 
     of legislation makes its way through the legislative process 
     and is passed as quickly as possible.
           Sincerely,
     Scott Fields, MD,
       President, Society of Teachers of Family Medicine.
     Eilssa Palmer, MD,
       President, Association of Family Medicine Residency 
     Directors.
     Michael K. Magill, MD,
       President, Association of Departments of Family Medicine.
     Ted Epperly, MD, FAAFP,
       President, American Academy of Family Physicians.
     Allen Dietrich, MD,
       President, North American Primary Care Research Group.
                                  ____

                                               American Academy of


                                         Physician Assistants,

                                Alexandria, VA, November 19, 2008.
     Hon. Hillary Rodham Clinton,
     U.S. Senate,
     Washington, DC.
       Dear Senator Clinton: On behalf of the nearly 75,000 
     clinically practicing physician assistants (PAs) in the 
     United States represented by the American Academy of 
     Physician Assistants (AAPA), I thank you for introducing the 
     Health Professions and Primary Care Reinvestment Act of 2008. 
     The reauthorization of the Public Health Service Act's Title 
     VII Health Professions Programs is a top priority of the 
     AAPA. Accordingly, AAPA is pleased to support this 
     legislation, and looks forward to working with you and your 
     colleagues in the Senate and House of Representatives to 
     secure the strongest possible investment in and reinforcement 
     of the nation's primary care workforce.
       The Title VII safety net programs are essential to the 
     development and training of primary health care professionals 
     and, in turn, provide increased access to care by promoting 
     health care delivery in medically underserved communities. 
     Title VII funding is especially important for PA programs as 
     it is the only federal funding available on a competitive 
     application basis to these programs.
       A review of PA graduates from 1990-2006 demonstrates that 
     PAs who have graduated from PA educational programs supported 
     by Title VII are 59 percent more likely to be from 
     underrepresented minority populations and 46 percent more 
     likely to work in a rural health clinic than graduates of 
     programs that were not supported by Title VII.
       The AAPA is very pleased to see included in this 
     legislation several very important updates and additions to 
     the Title VII statute related to physician assistant 
     training. Specifically, the updated definition of PA 
     education programs is long overdue and accurately reflects 
     the educational preparation of PAs, as well as the definition 
     and standards of the approximately 140 PA programs in the 
     U.S. Additionally, we strongly support the inclusion of a set 
     15 percent carve-out for PA programs within the primary care 
     medicine and dentistry cluster. Finally, we support the 
     inclusion of PA education programs within many new or 
     expanded programmatic sections of the bill, including 
     geriatric training centers and continuing education programs 
     for health professionals in underserved areas.
       The AAPA applauds your efforts to support and expand 
     America's primary care workforce through a clarified and 
     strengthened Title VII. We are pleased to work with you and 
     to support the Health Professions and Primary Care 
     Reinvestment Act of 2008.
           Sincerely yours,

                                         William F. Leinweber,

                                    Executive Vice President/Chief
     Executive Officer.
                                  ____

                                               American College of


                                          Preventive Medicine,

                                                November 18, 2008.
     Hon. Hillary R. Clinton,
      Russell Senate Office Building,
     Washington, DC.
       Dear Senator Clinton: On behalf of the American College of 
     Preventive Medicine I write to express our sincere 
     appreciation and thanks for your efforts to reauthorize the 
     Title VII health professions training programs at the Health 
     Resources and Services Administration, HRSA. As a result of 
     your steadfast commitment to bolstering our health care 
     safety net in underserved communities and extending the 
     reaches of preventive medicine physicians, health care 
     services--including important preventive services--will reach 
     the doorsteps of countless Americans who currently lack 
     access to a health care provider.
       With your legislation the time has now come to reinvigorate 
     and refinance the Title VII health professions training 
     programs at the necessary levels in order to protect access 
     to health care for vulnerable populations, improve disease 
     prevention and health promotion efforts, and maintain our 
     graduate medical education commitment to quality and 
     workforce diversity.

[[Page S10673]]

       While a limited number of preventive medicine residency 
     training programs in New York and other states have benefited 
     from Title VII funds, it is important that Congress act now 
     to expand the reaches of Title VII's mission to enhance the 
     supply, diversity, and distribution of the health care 
     workforce in all underserved communities across the country. 
     A key step toward addressing health system reform is ensuring 
     availability of services across all communities.
       We thank you for recognizing the importance of preventive 
     medicine physicians in securing our health care safety net 
     and promoting disease prevention and health promotion 
     programs. We look forward to our continued dialogue and thank 
     you for the opportunity to work with you and your staff to 
     address this very important issue.
           Sincerely,

                                     Michael D. Parkinson, MD,

                                                       MPH, FACPM,
     President.
                                  ____



                              ADA/American Dental Association,

                                Washington, DC, November 19, 2008.
     Senator Hillary Rodham Clinton,
     Russell Office Building,
     Washington, DC.
       Dear Senator Clinton: The American Dental Association, ADA, 
     which represents 156,000 dentists, congratulates you on 
     introducing the ``Health Professions and Primary Care 
     Reinvestment Act.'' The ADA greatly appreciates the attention 
     that you and your staff have given to the unique needs of 
     Title VII federal dental programs and believe that many of 
     the changes incorporated in this bill will help greatly to 
     advance these programs.
       We are especially pleased that your bill provides general 
     practice and pediatric dental residency programs with a 
     funding line. This acknowledgement underscores that oral 
     health care is as equally important as medical care and 
     should not be a subset of medical program funding. We believe 
     that by creating Section 748 Training in General and 
     Pediatric Dentistry that Congress will be better able to 
     effectively address dental education training needs.
       We also appreciate the inclusion of dentists in Section 9, 
     which focuses on geriatric training. The ADA has placed a 
     high priority on addressing the oral health needs of 
     ``vulnerable'' older adults--individuals over age 65 with 
     limited mobility and/or limited resources and/or complex 
     health status. Older adults face a variety of special oral 
     health challenges, including root and coronal caries, 
     periodontal disease, tooth wear, edentulousness, oral cancer, 
     complications from taking prescription and over-the-counter 
     medications and other medical concerns that affect oral 
     health. We recognize that a key component in addressing these 
     needs is to enhance the educational infrastructure and 
     dentist education and training. We believe that your bill has 
     opened the door to accomplish these goals.
       Addressing the oral health care needs of the older 
     generation often overlaps with providing care to children and 
     adults with intellectual and developmental disabilities. 
     While the bill does not include a new section to address the 
     training of dentists to work with these patients, we 
     understand the time constraints your staff faced in getting 
     this bill introduced this year. We look forward to continuing 
     to work with you on this issue and remain hopeful that we 
     will be able to include a provision dealing with this 
     important issue next year.
       Thank you and your staff, particularly Dr. Kathleen Klink, 
     for working with the American Dental Association to enhance 
     dental education programs. We believe that the ``Health 
     Professions and Primary Care Reinvestment Act'' will 
     contribute to the ADA's own efforts to improve dental 
     education programs and improve the oral health care of all 
     Americans.
           Sincerely,
                                          John S. Findley, D.D.S.,
     President.
                                  ____

         ADEA and AAPD,
                                                November 19, 2008.
     Hon. Hillary Clinton,
     U.S. Senate,
     Washington, DC.
       Dear Senator Clinton: The American Dental Education 
     Association (ADEA) and the American Academy of Pediatric 
     Dentistry (AAPD) are pleased to endorse the Health 
     Professions Primary Care Reinvestment Act. Our organizations 
     represent dental education and the practicing pediatric 
     dentists.
       The primary care dental provisions contained in the 
     legislation continue and enhance the cost-effective General 
     Dentistry and Pediatric Dentistry residency training 
     programs. The bill also authorizes support of dental loan 
     repayment for those who teach or conduct research in General 
     or Pediatric Dentistry residencies, which is particularly 
     important to maintaining a cadre of well-trained dentists to 
     meet the oral health care needs of the nation. Most 
     importantly, we are delighted with the language which allows 
     dental schools to apply for grants for faculty development 
     and academic administrative units. We applaud the decision to 
     provide a guideline authorization of $20 million for these 
     important programs.
       Our Associations appreciate the time and effort that you 
     and your staff made to consider our analysis of important 
     trends and needs in dental education, and to address our 
     concerns about the bill. The Health Professions Primary Care 
     Reinvestment Act is a significant improvement over 
     legislation in the last Congress in terms of provisions 
     affecting health workforce, information, evaluation and 
     analysis, and geriatric training. Your staff is to be 
     commended for drafting legislation that is performance-based 
     and ensures that important strides made to date will not be 
     diminished.
       Please contact our legislative representatives if we can be 
     of further assistance: Myla Moss at ADEA 202-289-7201 or 
     Scott Litch at AAPD 312-337-2169 ext. 29.
           Sincerely,
     Beverly Largent, D.M.D.,
       AAPD President.
     John S. Rutkauskas, D.D.S., M.B.A., CAE,
       AAPD Chief Executive Officer.
     Charles N. Bertalomi, D.D.S., D.M.Sc.,
       ADEA President.
     Richard W. Valachovic, D.M.D., M.P.H,
       ADEA Executive.
                                  ____

         Association of Minority Health Professions Schools, Inc.,


                            Washington, DC, November 19, 2008.

     Senator Hillary Rodham Clinton,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator Clinton: The Association of Minority Health 
     Professions Schools (AMHPS) applauds your introducing the 
     Health Professions and Primary Care Reinvestment Act. The 
     Title VII Health Professions programs help strengthen and 
     diversify our nation's primary care workforce. The Health 
     Professions and Primary Care Reinvestment Act reauthorizes 
     these vital programs while greatly improving them.
       AMHPS is particularly interested in your efforts to 
     continue to strengthen the diversity cluster of the Title VII 
     programs--Centers of Excellence (COI), Health Careers 
     Opportunities Program (HCOP), Faculty Loan Repayment, and 
     Scholarships for Disadvantaged Students (SDS). These programs 
     have been a tremendous federal government investment into the 
     institutions that focus on increasing the number of health 
     professionals and the diversity of the health professions. In 
     the November 2008 issue of Academic Medicine, the article 
     ``Funding the Diversity Programs of the Title VII Health 
     Professions Training Grants: An Urgent Need,'' written by two 
     AMHPS institution presidents--Dr. John Maupin of Morehouse 
     School of Medicine and Dr. Wayne Riley of Meharry Medical 
     College--confirms that your efforts making a tremendous 
     effort towards improving the health of all Americans.
       Again. thank you for introducing the Health Professions and 
     Primary Care Reinvestment Act. Your continued leadership and 
     dedication to health care is greatly appreciated. We urge you 
     to do all that you can to see that building a stronger 
     workforce of primary care professionals that is more diverse 
     is a top priority during the current health care debate. 
     Ensuring passage of your important bill would be a very good 
     first step,
           Sincerely,
     Wayne Harris, Ph.D.,
       Chairman, Board of Directors, Association of Minority 
     Health Professions Schools.
                                  ____

                                         Association of Schools of


                                                Public Health,

                                Washington, DC, November 18, 2008.
     Hon. Hillary Rodham Clinton,
     Russell Senate Office Building,
     Washington, DC.
       Dear Senator Clinton: On behalf of the Association of 
     Schools of Public Health (ASPH), I would like to thank you 
     for introducing the Health Professions and Primary Care 
     Reinvestment Act. Your leadership in introducing legislation 
     that would reauthorize Title VII of the Public Health Service 
     Act takes a vital step in providing support to the health 
     care delivery system, health care and public health 
     professionals.
       By 2012 over 100,000 public health workers are eligible to 
     retire (23 percent of the workforce). More importantly, in 
     order to have the same public health workforce to population 
     ratio in 2020 as existed in 1980, the public health workforce 
     would need to add an additional 250,000 workers. As Congress 
     begins to consider legislation that would overhaul the health 
     insurance system in this country, we hope that the Health 
     Professions and Primary Care Reinvestment Act will be 
     considered to ensure a well trained health care workforce 
     will be in place to meet the increased demand for basic 
     health care services.
       We would like to thank you for the inclusion of public 
     health in several sections of the bill including the Health 
     Professions Training for Diversity provisions of the 
     legislation. Expansion of the program to include training for 
     the next generation of researchers and educators is important 
     as public health researchers in the early stages of their 
     careers offer novel investigator-initiated research ideas 
     that could transform science and policy.
       We applaud the establishment of the Academic Health 
     Department (AHD) Program to establish partnerships between 
     accredited Schools of Public Health (SPH) and state or local 
     public health departments. This program has demonstrated 
     success in expanding SPH/health department partnerships with 
     the goal of developing models of collaboration in the areas 
     of teaching and service. The

[[Page S10674]]

     training programs offered by AHDs will provide learning 
     opportunities for public health professionals throughout 
     their careers. We also appreciate the continued support of 
     the existing Public Health and Preventive Medicine Program 
     which offers vital support to train health professionals in 
     this important area.
       Again, we would like to thank you for your leadership and 
     we look forward to working with you as you work to advance 
     this legislation. We are glad to see your commitment to 
     addressing workforce shortage issues in health care and offer 
     our support of the Health Professions and Primary Care 
     Reinvestment Act.
       Sincerely,
                                     Harrison C. Spencer, MD, MPH,
     President and CEO.
                                  ____



                                   National AHEC Organization,

                                                    Oak Creek, WI.
     Hon. Hillary Rodham Clinton,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator Clinton: On behalf of the National Area Health 
     Education Center Organization (NAO), I would like to offer 
     support for the Health Professions and Primary Care 
     Reinvestment Act legislation that includes AHEC 
     reauthorization.
       Your ongoing support of the National AHEC Organization and 
     the AHEC centers and programs that we represent across the 
     country are critical to the health professions pipeline, 
     quality education and training programs for health care 
     professionals, allied health professional and students across 
     the county.
       The Health Professions and Primary Care Reinvestment Act 
     will ensure the sustainability of the many critical programs 
     offered by AHEC's throughout the nation.
       Please feel free to call upon the NAO for additional 
     support as you move forward with your efforts and be assured 
     that our support and this letter may be used publicly to 
     advance the Health Professions and Primary Care Reinvestment 
     Act legislation.
           Sincerely,
                                                    Rose M. Yuhos,
     NAO President.
                                  ____

                                    National Council for Diversity


                                    in the Health Professions,

                                                November 19, 2008.
     Hon. Hillary Rodham Clinton,
     U.S. Senate, Russell Senate Office Building, Washington, DC.
       Dear Senator Clinton: The National Council on Diversity in 
     the Health Professions (NCDHP) applauds your introducing the 
     Health Professions and Primary Care Reinvestment Act. The 
     Title VII Health Professions programs help strengthen and 
     diversity our nation's primary care workforce. The Health 
     Professions and Primary Care Reinvestment Act reauthorizes 
     these vital programs while greatly improving them.
       NCDHP is interested in your efforts to continue to 
     strengthen the diversity cluster of the Title VII programs, 
     particularly the reauthorization of Centers of Excellence 
     (COE) and Health Careers Opportunities Program (HCOP). For 
     many years, these programs have demonstrated a tremendous 
     federal government investment into the institutions that 
     focus on increasing the number of health professionals and 
     the diversity of the health professions.
       Again, thank you for introducing the Health Professions and 
     Primary Care Reinvestment Act. Your continued leadership and 
     dedication to health care is greatly appreciated. We urge you 
     to do all that you can to see that building a stronger 
     workforce of primary care professionals that is more diverse 
     is a top priority during the current health care debate. 
     Ensuring passage of your important bill would be a very good 
     first step.
           Sincerely,
                                                Wanda D. Lipscomb,
     Chair.
                                  ____

                                                Socieiy of General


                                            Internal Medicine,

                                Washington, DC, November 17, 2008.
     Hon. Hillary Rodham Clinton,
     Russell Senate Office Building,
     Washington, DC.
       Dear Senator Clinton: On behalf of the Society of General 
     Internal Medicine, I want to applaud your leadership in 
     advancing national policies that promote improved patient 
     care for all Americans. In particular, I want to commend you 
     on the introduction of the Health Professions and Primary 
     Care Reinvestment Act.
       By any measure, primary care, including general internal 
     medicine, is the cornerstone of our nation's health care 
     system. Patients with primary care physicians have better 
     health status, longer life expectancy and lower health care 
     costs. Moreover, for the poor, the uninsured and the elderly, 
     primary care functions as a safety net, serving as the first 
     and often the only contact for care and treatment.
       For more than three decades, the Title VII Training in 
     Primary Care Medicine and Dentistry (TPCMD) program, in 
     particular, has contributed significantly to improving the 
     quality of education and training of the nation's primary 
     care workforce, with special emphasis on individuals from 
     disadvantaged backgrounds and underrepresented minorities. 
     But challenges remain. For example, forecasts are that the 
     demand for general internists will increase by 38 percent 
     within the next 15 years, while the number of new physicians 
     entering the field of general internal medicine continues to 
     decline.
       By strengthening and expanding the TPCMD program, your 
     legislation recognizes that primary care is the linchpin of 
     our health care system and that an adequate, well-trained 
     primary care workforce is critical to the success of any 
     health care reform measures Congress undertakes.
       In addition, your legislation calls for a more 
     comprehensive approach to addressing the systemic needs of 
     our health care system, including the creation of primary 
     care training institutes that will promote all-important 
     collaboration across all primary care disciplines, as well as 
     partnering with community health centers in a way that will 
     speed the translation of research into community practice. 
     Furthermore, the work of these institutes will help 
     contribute to better health outcomes by fostering the 
     development of the patient-centered medical home model.
       At a time when 47 million Americans lack health coverage, 
     when increasing numbers of elderly are entering the age of 
     highest risk of chronic disease, and when racial and ethnic 
     disparities persist, the Health Professions and Primary Care 
     Investment Act provides a solid framework for meeting these 
     challenges.
       Again, thank you for introducing this important 
     legislation. As in the past, our Society stands ready to 
     assist you in whatever way we can.
           Sincerely,
                                               Lisa V. Rubenstein,
     President.

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