[Congressional Record Volume 155, Number 122 (Thursday, August 6, 2009)]
[Senate]
[Pages S9015-S9016]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE:
  S. 1615. 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 Small Business and 
Entrepreneurship.
  Ms. SNOWE. Mr. President, the state of small business lending in the 
United States is still dire, as was shown during CIT's recent close 
brush with bankruptcy. One area of lending which has historically 
helped small firms has been Small Business Administration backed 
lending, but while the SBA traditionally guarantees $20 billion in 
loans annually, before the passage of the stimulus, new lending this 
year was on track to fall below $10 billion. In fact, in the first 
quarter of fiscal year 2009, the number of SBA 7(a) loans dropped by 57 
percent when compared with the first quarter of fiscal year 2008.
  Last year, to help address the frozen credit market and the drop in 
SBA lending I introduced the 10 Steps for a Main Street Economic 
Recovery Act. Many of the provisions in 10 Steps were included in the 
American Recovery and Reinvestment Act and several have already been 
credited with helping to increase SBA volume. These include fee 
reductions for 7(a) and 504 loans and allowing for the refinancing of 
504 loans. To ensure that SBA lending remains a critical source of 
capital for small businesses, we must continue to bolster this program 
and help it to evolve and grow.
  In order to maintain this momentum we must take steps to further 
reform and improve SBA-backed lending. The legislation I am 
introducing, the Next Step, builds on the 10 Steps for a Main Street 
Economic Recovery Act and makes the SBA's lending programs more vital 
and responsive to the needs of today's small business borrower.
  The Next Step includes provisions that would allow borrowers to take 
out larger 7(a) and 504 loans up to $5 million. This bill would help 
satisfy the capital needs of small businesses, looking to start or 
expand their operations. The bill would also allow for the refinancing 
of 7(a) loans. Finally, SBA borrowers must have the ability to shop and 
compare SBA loan rates online. My legislation would establish an online 
platform through the SBA that would allow borrowers to compare SBA loan 
rates and make an informed choice, giving borrowers a chance to save 
time and money.
  These targeted reforms included in the Next Step for Main Street 
Credit Availability Act of 2009 will help bring SBA lending into the 
future, make the SBA's lending programs competitive with traditional 
small businesses' borrowing, and help to increase SBA lending volume.
  I urge my colleagues to support this critical legislation to help 
improve small business lending.
  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. 1615

       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 ``Next Step for Main Street 
     Credit Availability Act of 2009''.

     SEC. 2. MAXIMUM AMOUNTS FOR 7(A) LOANS.

       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 
     ``$4,000,000 (or if the gross loan amount would exceed 
     $5,000,000''.

     SEC. 3. REFINANCING EXISTING 7(A) LOANS.

       (a) In General.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) 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.''.
       (b) 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''.

     SEC. 4. 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 
     ``$4,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$5,000,000''; and
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''.

     SEC. 5. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended--
       (1) in paragraph (1)(B)(iii), by striking ``$35,000'' and 
     inserting ``$50,000'';
       (2) in paragraph (3)(E), by striking ``$35,000'' each place 
     it appears and inserting ``$50,000''; and
       (3) in paragraph (11)(B), by striking ``$35,000'' and 
     inserting ``$50,000''.

[[Page S9016]]

     SEC. 6. ONLINE LENDING PLATFORM.

       It is the sense of the Congress that the Administrator of 
     the Small Business Administration should establish a website 
     that--
       (1) lists each lender that makes loans guaranteed by the 
     Small Business Administration and provides information about 
     the loan rate of each such lender; and
       (2) allows prospective borrowers--
       (A) to compare rates on loans guaranteed by the Small 
     Business Administration; and
       (B) to apply online for loans guaranteed by the Small 
     Business Administration.
                                 ______