[Congressional Record Volume 156, Number 99 (Tuesday, June 29, 2010)]
[Senate]
[Pages S5546-S5628]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 4401. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 115, between lines 6 and 7, insert the following:

     SEC. 702. BUSINESS AND INDUSTRY DIRECT AND GUARANTEED LOANS.

       (a) Tangible Equity Requirements.--Section 310B(d) of the 
     Consolidated Farm and Rural Development Act (7 U.S.C. 
     1932(d)) is amended by striking paragraph (6) and inserting 
     the following:
       ``(6) Equity.--In the case of direct or guaranteed loans 
     under this section, the Secretary shall use commercial 
     lending standards in determining any equity requirement.''.
       (b) General Terms.--Section 310B(g) of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 1932(g)) is amended 
     by adding at the end the following:
       ``(10) General terms.--
       ``(A) Maximum loan guarantee amount.--
       ``(i) In general.--Notwithstanding any other provision of 
     this Act, during the period beginning on the date of 
     enactment of this paragraph and ending on December 31, 2011, 
     the Secretary shall guarantee up to 90 percent of a business 
     and industry loan in an amount of up to $10,000,000 that is a 
     high priority project, as determined based on published 
     criteria of the Secretary that includes rural economic 
     factors.
       ``(ii) Subsequent fiscal years.--Notwithstanding any other 
     provision of this Act, beginning on January 1, 2012, the 
     Secretary may guarantee up to 80 or 90 percent (as determined 
     by the Secretary) of a business and industry loan in an 
     amount of up to $10,000,000 that is a high priority project, 
     as determined based on criteria described in clause (i).
       ``(B) Line-of-credit loans.--In guaranteeing business and 
     industry loans, the Secretary shall guarantee line-of-credit 
     loans in accordance with section 316(c).
       ``(C) Refinancing.--
       ``(i) In general.--A business and industry loan may be used 
     by a small business to refinance debt in existence as of the 
     day before the date on which the loan was made or guaranteed, 
     if--

       ``(I) the project for which the debt was incurred is viable 
     and will create or save jobs, as determined by the Secretary; 
     and
       ``(II) as of the date of application for refinancing--

       ``(aa) the underlying loan has been current for at least 1 
     year; and
       ``(bb) the lender is providing better rates and longer 
     terms than under the original loan.
       ``(ii) Subordinated owner debt.--Subordinated owner debt 
     shall not be eligible for inclusion in debt described in 
     clause (i).
       ``(D) Audit standards.--Notwithstanding any other provision 
     of law, the Secretary--
       ``(i) shall not require audited financial statements 
     consistent with generally accepted accounting principles for 
     business and industry loans of less than $3,000,000; and
       ``(ii) may waive any requirement for audited financial 
     statements consistent with generally accepted accounting 
     principles for business and industry loans of at least 
     $3,000,000.
       ``(E) Calculation of delinquency rates.--To allow accurate 
     comparison of delinquency rates among Federal agencies, in 
     calculating the delinquency rate for business and industry 
     loans, the Secretary shall use the calculation method used by 
     the Administrator of the Small Business Administration.''.
       (c) Sense of Congress Relating to the Rural 
     Microentrepreneur Assistance Program.--It is the sense of 
     Congress that in allocating discretionary funds of the 
     Secretary of Agriculture, the Secretary of Agriculture should 
     give priority to the rural microentrepreneur assistance 
     program established under section 379E of the Consolidated 
     Farm and Rural Development Act (7 U.S.C. 2008s).
                                 ______
                                 
  SA 4402. Mr. REID (for Mr. Baucus) proposed an amendment to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; 
which was ordered to lie on the table; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Jobs Act of 
     2010''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                       TITLE I--SMALL BUSINESSES

Sec. 1001. Definitions.

              Subtitle A--Small Business Access to Credit

Sec. 1101. Short title.

         PART I--Next Steps for Main Street Credit Availability

Sec. 1111. Section 7(a) business loans.
Sec. 1112. Maximum loan amounts under 504 program.
Sec. 1113. Maximum loan limits under microloan program.
Sec. 1114. Temporary fee reductions.
Sec. 1115. New Markets Venture Capital company investment limitations.
Sec. 1116. Alternative size standards.
Sec. 1117. Sale of 7(a) loans in secondary market.
Sec. 1118. Online lending platform.
Sec. 1119. SBA Secondary Market Guarantee Authority.

               PART II--Small Business Access to Capital

Sec. 1122. Low-interest refinancing under the local development 
              business loan program.

                        PART III--Other Matters

Sec. 1131. Small business intermediary lending pilot program.
Sec. 1132. Public policy goals.
Sec. 1133. Draft floor plan pilot program extension.
Sec. 1134. Guarantees for bonds and notes issued for community or 
              economic development purposes.
Sec. 1135. Temporary express loan enhancement.
Sec. 1136. Prohibition on using TARP funds or tax in creases.

             Subtitle B--Small Business Trade and Exporting

Sec. 1201. Short title.
Sec. 1202. Definitions.
Sec. 1203. Office of International Trade.
Sec. 1204. Duties of the Office of International Trade.
Sec. 1205. Export assistance centers.
Sec. 1206. International trade finance programs.
Sec. 1207. State Trade and Export Promotion Grant Program.
Sec. 1208. Rural export promotion.
Sec. 1209. International trade cooperation by small business 
              development centers.

                 Subtitle C--Small Business Contracting

                       PART I--Contract Bundling

Sec. 1311. Small Business Act.
Sec. 1312. Leadership and oversight.
Sec. 1313. Consolidation of contract requirements.
Sec. 1314. Small business teams pilot program.

                   PART II--Subcontracting Integrity

Sec. 1321. Subcontracting misrepresentations.
Sec. 1322. Small business subcontracting improvements.

                     PART III--Acquisition Process

Sec. 1331. Reservation of prime contract awards for small businesses.
Sec. 1332. Micro-purchase guidelines.
Sec. 1333. Agency accountability.
Sec. 1334. Payment of subcontractors.
Sec. 1335. Repeal of Small Business Competitiveness Demonstration 
              Program.

           PART IV--Small Business Size and Status Integrity

Sec. 1341. Policy and presumptions.
Sec. 1342. Annual certification.
Sec. 1343. Training for contracting and enforcement personnel.
Sec. 1344. Updated size standards.
Sec. 1345. Study and report on the mentor-protege program.
Sec. 1346. Contracting goals reports.
Sec. 1347. Small business contracting parity.

    Subtitle D--Small Business Management and Counseling Assistance

Sec. 1401. Matching requirements under small business programs.
Sec. 1402. Grants for SBDCs.

                 Subtitle E--Disaster Loan Improvement

Sec. 1501. Aquaculture business disaster assistance.

              Subtitle F--Small Business Regulatory Relief

Sec. 1601. Requirements providing for more detailed analyses.
Sec. 1602. Office of advocacy.

                 Subtitle G--Appropriations Provisions

Sec. 1701. Salaries and expenses.

[[Page S5547]]

Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program 
              account.

                        TITLE II--TAX PROVISIONS

Sec. 2001. Short title.

                   Subtitle A--Small Business Relief

                  PART I--Providing Access to Capital

Sec. 2011. Temporary exclusion of 100 percent of gain on certain small 
              business stock.
Sec. 2012. General business credits of eligible small businesses for 
              2010 carried back 5 years.
Sec. 2013. General business credits of eligible small businesses in 
              2010 not subject to alternative minimum tax.
Sec. 2014. Temporary reduction in recognition period for built-in gains 
              tax.

                    PART II--Encouraging Investment

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain 
              real property treated as section 179 property.
Sec. 2022. Additional first-year depreciation for 50 percent of the 
              basis of certain qualified property.

                  PART III--Promoting Entrepreneurship

Sec. 2031. Increase in amount allowed as deduction for start-up 
              expenditures in 2010.
Sec. 2032. Authorization of appropriations for the United States Trade 
              Representative to develop market access opportunities for 
              United States small- and medium-sized businesses and to 
              enforce trade agreements.

               PART IV--Promoting Small Business Fairness

Sec. 2041. Limitation on penalty for failure to disclose reportable 
              transactions based on resulting tax benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
              employment taxes in 2010.

                     Subtitle B--Revenue Provisions

                      PART I--Reducing the Tax Gap

Sec. 2101. Information reporting for rental property expense payments.
Sec. 2102. Increase in information return penalties.
Sec. 2103. Report on tax shelter penalties and certain other 
              enforcement actions.
Sec. 2104. Application of levy to payments to Federal vendors relating 
              to property.
Sec. 2105. Application of continuous levy to tax liabilities of certain 
              Federal contractors.
Sec. 2106. Application of bad checks penalty to electronic payments.

               PART II--Promoting Retirement Preparation

Sec. 2111. Participants in government section 457 plans allowed to 
              treat elective deferrals as Roth contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth 
              accounts.

                 PART III--Closing Unintended Loopholes

Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer 
              credit.

         PART IV--Time for Payment of Corporate Estimated Taxes

Sec. 2131. Time for payment of corporate estimated taxes.

                   TITLE III--SMALL BUSINESS LENDING

                Subtitle A--Small Business Lending Fund

Sec. 3101. Purpose.
Sec. 3102. Definitions.
Sec. 3103. Small business lending fund.
Sec. 3104. Additional authorities of the Secretary.
Sec. 3105. Considerations.
Sec. 3106. Reports.
Sec. 3107. Oversight and audits.
Sec. 3108. Credit reform; funding.
Sec. 3109. Termination and continuation of authorities.
Sec. 3110. Preservation of authority.
Sec. 3111. Assurances.
Sec. 3112. Study and report with respect to women-owned, veteran-owned, 
              and minority-owned businesses.
Sec. 3113. Sense of congress.

           Subtitle B--State Small Business Credit Initiative

Sec. 3201. Short title.
Sec. 3202. Definitions.
Sec. 3203. Federal funds allocated to States.
Sec. 3204. Approving States for participation.
Sec. 3205. Approving State capital access programs.
Sec. 3206. Approving collateral support and other innovative credit 
              access and guarantee initiatives for small businesses and 
              manufacturers.
Sec. 3207. Reports.
Sec. 3208. Remedies for State program termination or failures.
Sec. 3209. Implementation and administration.
Sec. 3210. Regulations.
Sec. 3211. Oversight and audits.

                     TITLE IV--BUDGETARY PROVISIONS

Sec. 4001. Determination of budgetary effects.

                       TITLE I--SMALL BUSINESSES

     SEC. 1001. DEFINITIONS.

       In this title--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the term ``small business concern'' has the meaning 
     given that term under section 3 of the Small Business Act (15 
     U.S.C. 632).

              Subtitle A--Small Business Access to Credit

     SEC. 1101. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Job 
     Creation and Access to Capital Act of 2010''.

         PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

     SEC. 1111. SECTION 7(A) BUSINESS LOANS.

       (a) Amendment.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``75 percent'' and inserting 
     ``90 percent''; and
       (B) in clause (ii), by striking ``85 percent'' and 
     inserting ``90 percent''; and
       (2) in paragraph (3)(A), by striking ``$1,500,000 (or if 
     the gross loan amount would exceed $2,000,000'' and inserting 
     ``$4,500,000 (or if the gross loan amount would exceed 
     $5,000,000''.
       (b) Prospective Repeal.--Effective January 1, 2011, section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``90 percent'' and inserting 
     ``75 percent''; and
       (B) in clause (ii), by striking ``90 percent'' and 
     inserting ``85 percent''; and
       (2) in paragraph (3)(A), by striking ``$4,500,000'' and 
     inserting ``$3,750,000''.

     SEC. 1112. 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 
     ``$5,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$5,000,000'';
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000'';
       (4) in clause (iv), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''; and
       (5) in clause (v), by striking ``$4,000,000'' and inserting 
     ``$5,500,000''.

     SEC. 1113. 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)--
       (A) in subparagraph (C), by striking ``$3,500,000'' and 
     inserting ``$5,000,000''; and
       (B) in subparagraph (E), by striking ``$35,000'' each place 
     that term appears and inserting ``$50,000''; and
       (3) in paragraph (11)(B), by striking ``$35,000'' and 
     inserting ``$50,000''.

     SEC. 1114. TEMPORARY FEE REDUCTIONS.

       Section 501 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5; 123 Stat. 151) is amended by 
     striking ``September 30, 2010'' each place that term appears 
     and inserting ``December 31, 2010''.

     SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT 
                   LIMITATIONS.

       Section 355 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689d) is amended by adding at the end the 
     following:
       ``(e) Investment Limitations.--
       ``(1) Definition.--In this subsection, the term `covered 
     New Markets Venture Capital company' means a New Markets 
     Venture Capital company--
       ``(A) granted final approval by the Administrator under 
     section 354(e) on or after March 1, 2002; and
       ``(B) that has obtained a financing from the Administrator.
       ``(2) Limitation.--Except to the extent approved by the 
     Administrator, a covered New Markets Venture Capital company 
     may not acquire or issue commitments for securities under 
     this title for any single enterprise in an aggregate amount 
     equal to more than 10 percent of the sum of--
       ``(A) the regulatory capital of the covered New Markets 
     Venture Capital company; and
       ``(B) the total amount of leverage projected in the 
     participation agreement of the covered New Markets Venture 
     Capital.''.

     SEC. 1116. ALTERNATIVE SIZE STANDARDS.

       Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
     is amended by adding at the end the following:
       ``(5) Alternative Size Standard.--
       ``(A) In general.--The Administrator shall establish an 
     alternative size standard for applicants for business loans 
     under section 7(a) and applicants for development company 
     loans 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 use of 
     industry standards.
       ``(B) Interim rule.--Until the date on which the 
     alternative size standard established under subparagraph (A) 
     is in effect, an applicant for a business loan under section 
     7(a) or an applicant for a development company loan under 
     title V of the Small Business Investment Act of 1958 may be 
     eligible for such a loan if--
       ``(i) the maximum tangible net worth of the applicant is 
     not more than $15,000,000; and
       ``(ii) the average net income after Federal income taxes 
     (excluding any carry-over losses) of the applicant for the 2 
     full fiscal years before the date of the application is not 
     more than $5,000,000.''.

[[Page S5548]]

     SEC. 1117. SALE OF 7(A) LOANS IN SECONDARY MARKET.

       Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) 
     is amended by adding at the end the following:
       ``(6) If the amount of the guaranteed portion of any loan 
     under section 7(a) is more than $500,000, the Administrator 
     shall, upon request of a pool assembler, divide the loan 
     guarantee into increments of $500,000 and 1 increment of any 
     remaining amount less than $500,000, in order to permit the 
     maximum amount of any loan in a pool to be not more than 
     $500,000. Only 1 increment of any loan guarantee divided 
     under this paragraph may be included in the same pool. 
     Increments of loan guarantees to different borrowers that are 
     divided under this paragraph may be included in the same 
     pool.''.

     SEC. 1118. ONLINE LENDING PLATFORM.

       It is the sense of 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 rates of each such lender; and
       (2) allows prospective borrowers to compare rates on loans 
     guaranteed by the Small Business Administration.

     SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.

       Section 503(f) of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 155) is 
     amended by striking ``on the date 2 years after the date of 
     enactment of this section'' and inserting ``2 years after the 
     date of the first sale of a pool of first lien position 504 
     loans guaranteed under this section to a third-party 
     investor''.

               PART II--SMALL BUSINESS ACCESS TO CAPITAL

     SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL 
                   DEVELOPMENT BUSINESS LOAN PROGRAM.

       (a) Refinancing.--Section 502(7) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 696(7)) is amended by 
     adding at the end the following:
       ``(C) Refinancing not involving expansions.--
       ``(i) Definitions.--In this subparagraph--

       ``(I) the term `borrower' means a small business concern 
     that submits an application to a development company for 
     financing under this subparagraph;
       ``(II) the term `eligible fixed asset' means tangible 
     property relating to which the Administrator may provide 
     financing under this section; and
       ``(III) the term `qualified debt' means indebtedness--

       ``(aa) that--
       ``(AA) was incurred not less than 2 years before the date 
     of the application for assistance under this subparagraph;
       ``(BB) is a commercial loan;
       ``(CC) is not subject to a guarantee by a Federal agency;
       ``(DD) the proceeds of which were used to acquire an 
     eligible fixed asset;
       ``(EE) was incurred for the benefit of the small business 
     concern; and
       ``(FF) is collateralized by eligible fixed assets; and
       ``(bb) for which the borrower has been current on all 
     payments for not less than 1 year before the date of the 
     application.
       ``(ii) Authority.--A project that does not involve the 
     expansion of a small business concern may include the 
     refinancing of qualified debt if--

       ``(I) the amount of the financing is not more than 90 
     percent of the value of the collateral for the financing, 
     except that, if the appraised value of the eligible fixed 
     assets serving as collateral for the financing is less than 
     the amount equal to 125 percent of the amount of the 
     financing, the borrower may provide additional cash or other 
     collateral to eliminate any deficiency;
       ``(II) the borrower has been in operation for all of the 2-
     year period ending on the date of the loan; and
       ``(III) for a financing for which the Administrator 
     determines there will be an additional cost attributable to 
     the refinancing of the qualified debt, the borrower agrees to 
     pay a fee in an amount equal to the anticipated additional 
     cost.

       ``(iii) Financing for business expenses.--

       ``(I) Financing for business expenses.--The Administrator 
     may provide financing to a borrower that receives financing 
     that includes a refinancing of qualified debt under clause 
     (ii), in addition to the refinancing under clause (ii), to be 
     used solely for the payment of business expenses.
       ``(II) Application for financing.--An application for 
     financing under subclause (I) shall include--

       ``(aa) a specific description of the expenses for which the 
     additional financing is requested; and
       ``(bb) an itemization of the amount of each expense.

       ``(III) Condition on additional financing.--A borrower may 
     not use any part of the financing under this clause for non-
     business purposes.

       ``(iv) Loans based on jobs.--

       ``(I) Job creation and retention goals.--

       ``(aa) In general.--The Administrator may provide financing 
     under this subparagraph for a borrower that meets the job 
     creation goals under subsection (d) or (e) of section 501.
       ``(bb) Alternate job retention goal.--The Administrator may 
     provide financing under this subparagraph to a borrower that 
     does not meet the goals described in item (aa) in an amount 
     that is not more than the product obtained by multiplying the 
     number of employees of the borrower by $65,000.

       ``(II) Number of employees.--For purposes of subclause (I), 
     the number of employees of a borrower is equal to the sum 
     of--

       ``(aa) the number of full-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; and
       ``(bb) the product obtained by multiplying--
       ``(AA) the number of part-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; by
       ``(BB) the quotient obtained by dividing the average number 
     of hours each part time employee of the borrower works each 
     week by 40.
       ``(v) Nondelegation.--Notwithstanding section 508(e), the 
     Administrator may not permit a premier certified lender to 
     approve or disapprove an application for assistance under 
     this subparagraph.
       ``(vi) Total amount of loans.--The Administrator may 
     provide not more than a total of $7,500,000,000 of financing 
     under this subparagraph for each fiscal year.''.
       (b) Prospective Repeal.--Effective 2 years after the date 
     of enactment of this Act, section 502(7) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended 
     by striking subparagraph (C).
       (c) Technical Correction.--Section 502(2)(A)(i) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 
     696(2)(A)(i)) is amended by striking ``subparagraph (B) or 
     (C)'' and inserting ``clause (ii), (iii), (iv), or (v)''.

                        PART III--OTHER MATTERS

     SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

       (a) In General.--Section 7 of the Small Business Act (15 
     U.S.C. 636) is amended by striking subsection (l) and 
     inserting the following:
       ``(l) Small Business Intermediary Lending Pilot Program.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `eligible intermediary'--
       ``(i) means a private, nonprofit entity that--

       ``(I) seeks or has been awarded a loan from the 
     Administrator to make loans to small business concerns under 
     this subsection; and
       ``(II) has not less than 1 year of experience making loans 
     to startup, newly established, or growing small business 
     concerns; and

       ``(ii) includes--

       ``(I) a private, nonprofit community development 
     corporation;
       ``(II) a consortium of private, nonprofit organizations or 
     nonprofit community development corporations; and
       ``(III) an agency of or nonprofit entity established by a 
     Native American Tribal Government; and

       ``(B) the term `Program' means the small business 
     intermediary lending pilot program established under 
     paragraph (2).
       ``(2) Establishment.--There is established a 3-year small 
     business intermediary lending pilot program, under which the 
     Administrator may make direct loans to eligible 
     intermediaries, for the purpose of making loans to startup, 
     newly established, and growing small business concerns.
       ``(3) Purposes.--The purposes of the Program are--
       ``(A) to assist small business concerns in areas suffering 
     from a lack of credit due to poor economic conditions or 
     changes in the financial market; and
       ``(B) to establish a loan program under which the 
     Administrator may provide loans to eligible intermediaries to 
     enable the eligible intermediaries to provide loans to 
     startup, newly established, and growing small business 
     concerns for working capital, real estate, or the acquisition 
     of materials, supplies, or equipment.
       ``(4) Loans to eligible intermediaries.--
       ``(A) Application.--Each eligible intermediary desiring a 
     loan under this subsection shall submit an application to the 
     Administrator that describes--
       ``(i) the type of small business concerns to be assisted;
       ``(ii) the size and range of loans to be made;
       ``(iii) the interest rate and terms of loans to be made;
       ``(iv) the geographic area to be served and the economic, 
     poverty, and unemployment characteristics of the area;
       ``(v) the status of small business concerns in the area to 
     be served and an analysis of the availability of credit; and
       ``(vi) the qualifications of the applicant to carry out 
     this subsection.
       ``(B) Loan limits.--No loan may be made to an eligible 
     intermediary under this subsection if the total amount 
     outstanding and committed to the eligible intermediary by the 
     Administrator would, as a result of such loan, exceed 
     $1,000,000 during the participation of the eligible 
     intermediary in the Program.
       ``(C) Loan duration.--Loans made by the Administrator under 
     this subsection shall be for a term of 20 years.
       ``(D) Applicable interest rates.--Loans made by the 
     Administrator to an eligible intermediary under the Program 
     shall bear an annual interest rate equal to 1.00 percent.
       ``(E) Fees; collateral.--The Administrator may not charge 
     any fees or require

[[Page S5549]]

     collateral with respect to any loan made to an eligible 
     intermediary under this subsection.
       ``(F) Delayed payments.--The Administrator shall not 
     require the repayment of principal or interest on a loan made 
     to an eligible intermediary under the Program during the 2-
     year period beginning on the date of the initial disbursement 
     of funds under that loan.
       ``(G) Maximum participants and amounts.--During each of 
     fiscal years 2011, 2012, and 2013, the Administrator may make 
     loans under the Program--
       ``(i) to not more than 20 eligible intermediaries; and
       ``(ii) in a total amount of not more than $20,000,000.
       ``(5) Loans to small business concerns.--
       ``(A) In general.--The Administrator, through an eligible 
     intermediary, shall make loans to startup, newly established, 
     and growing small business concerns for working capital, real 
     estate, and the acquisition of materials, supplies, 
     furniture, fixtures, and equipment.
       ``(B) Maximum loan.--An eligible intermediary may not make 
     a loan under this subsection of more than $200,000 to any 1 
     small business concern.
       ``(C) Applicable interest rates.--A loan made by an 
     eligible intermediary to a small business concern under this 
     subsection, may have a fixed or a variable interest rate, and 
     shall bear an interest rate specified by the eligible 
     intermediary in the application of the eligible intermediary 
     for a loan under this subsection.
       ``(D) Review restrictions.--The Administrator may not 
     review individual loans made by an eligible intermediary to a 
     small business concern before approval of the loan by the 
     eligible intermediary.
       ``(6) Termination.--The authority of the Administrator to 
     make loans under the Program shall terminate 3 years after 
     the date of enactment of the Small Business Job Creation and 
     Access to Capital Act of 2010.''.
       (b) Rulemaking Authority.--Not later than 180 days after 
     the date of enactment of this Act, the Administrator shall 
     issue regulations to carry out section 7(l) of the Small 
     Business Act, as amended by subsection (a).
       (c) Availability of Funds.--Any amounts provided to the 
     Administrator for the purposes of carrying out section 7(l) 
     of the Small Business Act, as amended by subsection (a), 
     shall remain available until expended.

     SEC. 1132. PUBLIC POLICY GOALS.

       Section 501(d)(3) of the Small Business Investment Act of 
     1958 (15 U.S.C. 695(d)(3)) is amended--
       (1) in subparagraph (J), by striking ``or'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``, or''; and
       (3) by adding at the end the following:
       ``(L) reduction of rates of unemployment in labor surplus 
     areas, as such areas are determined by the Secretary of 
     Labor.''.

     SEC. 1133. DRAFT FLOOR PLAN PILOT PROGRAM EXTENSION.

       (a) In General.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) by redesignating paragraph (32), relating to increased 
     veteran participation, as added by section 208 of the 
     Military Reservist and Veteran Small Business Reauthorization 
     and Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 
     631), as paragraph (33); and
       (2) by adding at the end the following:
       ``(34) Dealer floor plan financing program.--
       ``(A) Definition.--In this paragraph, the term `eligible 
     retail good'--
       ``(i) means a good for which a title may be obtained under 
     State law; and
       ``(ii) includes an automobile, recreational vehicle, boat, 
     and manufactured home.
       ``(B) Program.--The Administrator may guarantee the timely 
     payment of an open-end extension of credit to a small 
     business concern, the proceeds of which may be used for the 
     purchase of eligible retail goods for resale.
       ``(C) Amount.--An open-end extension of credit guaranteed 
     under this paragraph shall be in an amount not less than 
     $500,000 and not more than $5,000,000.
       ``(D) Term.--An open-end extension of credit guaranteed 
     under this paragraph shall have a term of not more than 5 
     years.
       ``(E) Guarantee percentage.--The Administrator may 
     guarantee--
       ``(i) not less than 60 percent of an open-end extension of 
     credit under this paragraph; and
       ``(ii) not more than 75 percent of an open-end extension of 
     credit under this paragraph.
       ``(F) Advance rate.--The lender for an open-end extension 
     of credit guaranteed under this paragraph may allow the 
     borrower to draw funds on the line of credit in an amount 
     equal to not more than 100 percent of the value of the 
     eligible retail goods to be purchased.''.
       (b) Sunset.--Effective September 30, 2013, section 7(a) of 
     the Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) by striking paragraph (34); and
       (2) by redesignating paragraph (35), as added by section 
     1206 of this Act, as paragraph (34).

     SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       The Riegle Community Development and Regulatory Improvement 
     Act of 1994 (12 U.S.C. 4701 et seq.) is amended by inserting 
     after section 114 (12 U.S.C. 4713) the following:

     ``SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Eligible community development financial 
     institution.--The term `eligible community development 
     financial institution' means a community development 
     financial institution (as described in section 1805.201 of 
     title 12, Code of Federal Regulations, or any successor 
     thereto) certified by the Secretary that has applied to a 
     qualified issuer for, or been granted by a qualified issuer, 
     a loan under the Program.
       ``(2) Eligible community or economic development purpose.--
     The term `eligible community or economic development 
     purpose'--
       ``(A) means any purpose described in section 108(b); and
       ``(B) includes the provision of community or economic 
     development in low-income or underserved rural areas.
       ``(3) Guarantee.--The term `guarantee' means a written 
     agreement between the Secretary and a qualified issuer (or 
     trustee), pursuant to which the Secretary ensures repayment 
     of the verifiable losses of principal, interest, and call 
     premium, if any, on notes or bonds issued by a qualified 
     issuer to finance or refinance loans to eligible community 
     development financial institutions.
       ``(4) Loan.--The term `loan' means any credit instrument 
     that is extended under the Program for any eligible community 
     or economic development purpose.
       ``(5) Master servicer.--
       ``(A) In general.--The term `master servicer' means any 
     entity approved by the Secretary in accordance with 
     subparagraph (B) to oversee the activities of servicers, as 
     provided in subsection (f)(4).
       ``(B) Approval criteria for master servicers.--The 
     Secretary shall approve or deny any application to become a 
     master servicer under the Program not later than 90 days 
     after the date on which all required information is submitted 
     to the Secretary, based on the capacity and experience of the 
     applicant in--
       ``(i) loan administration, servicing, and loan monitoring;
       ``(ii) managing regional or national loan intake, 
     processing, or servicing operational systems and 
     infrastructure;
       ``(iii) managing regional or national originator 
     communication systems and infrastructure;
       ``(iv) developing and implementing training and other risk 
     management strategies on a regional or national basis; and
       ``(v) compliance monitoring, investor relations, and 
     reporting.
       ``(6) Program.--The term `Program' means the guarantee 
     Program for bonds and notes issued for eligible community or 
     economic development purposes established under this section.
       ``(7) Program administrator.--The term `Program 
     administrator' means an entity designated by the issuer to 
     perform administrative duties, as provided in subsection 
     (f)(2).
       ``(8) Qualified issuer.--
       ``(A) In general.--The term `qualified issuer' means a 
     community development financial institution (or any entity 
     designated to issue notes or bonds on behalf of such 
     community development financial institution) that meets the 
     qualification requirements of this paragraph.
       ``(B) Approval criteria for qualified issuers.--
       ``(i) In general.--The Secretary shall approve a qualified 
     issuer for a guarantee under the Program in accordance with 
     the requirements of this paragraph, and such additional 
     requirements as the Secretary may establish, by regulation.
       ``(ii) Terms and qualifications.--A qualified issuer 
     shall--

       ``(I) have appropriate expertise, capacity, and experience, 
     or otherwise be qualified to make loans for eligible 
     community or economic development purposes;
       ``(II) provide to the Secretary--

       ``(aa) an acceptable statement of the proposed sources and 
     uses of the funds; and
       ``(bb) a capital distribution plan that meets the 
     requirements of subsection (c)(1); and

       ``(III) certify to the Secretary that the bonds or notes to 
     be guaranteed are to be used for eligible community or 
     economic development purposes.

       ``(C) Department opinion; timing.--
       ``(i) Department opinion.--Not later than 30 days after the 
     date of a request by a qualified issuer for approval of a 
     guarantee under the Program, the Secretary shall provide an 
     opinion regarding compliance by the issuer with the 
     requirements of the Program under this section.
       ``(ii) Timing.--The Secretary shall approve or deny a 
     guarantee under this section after consideration of the 
     opinion provided to the Secretary under clause (i), and in no 
     case later than 90 days after receipt of all required 
     information by the Secretary with respect to a request for 
     such guarantee.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(10) Servicer.--The term `servicer' means an entity 
     designated by the issuer to perform various servicing duties, 
     as provided in subsection (f)(3).
       ``(b) Guarantees Authorized.--The Secretary shall guarantee 
     payments on bonds or notes issued by any qualified issuer, if 
     the proceeds of the bonds or notes are used in accordance 
     with this section to make loans to

[[Page S5550]]

     eligible community development financial institutions--
       ``(1) for eligible community or economic development 
     purposes; or
       ``(2) to refinance loans or notes issued for such purposes.
       ``(c) General Program Requirements.--
       ``(1) In general.--A capital distribution plan meets the 
     requirements of this subsection, if not less than 90 percent 
     of the principal amount of guaranteed bonds or notes (other 
     than costs of issuance fees) are used to make loans for any 
     eligible community or economic development purpose, measured 
     annually, beginning at the end of the 1-year period beginning 
     on the issuance date of such guaranteed bonds or notes.
       ``(2) Relending account.--Not more than 10 percent of the 
     principal amount of guaranteed bonds or notes, multiplied by 
     an amount equal to the outstanding principal balance of 
     issued notes or bonds, minus the risk-share pool amount under 
     subsection (d), may be held in a relending account and may be 
     made available for new eligible community or economic 
     development purposes.
       ``(3) Limitations on unpaid principal balances.--The 
     proceeds of guaranteed bonds or notes under the Program may 
     not be used to pay fees (other than costs of issuance fees), 
     and shall be held in--
       ``(A) community or economic development loans;
       ``(B) a relending account, to the extent authorized under 
     paragraph (2); or
       ``(C) a risk-share pool established under subsection (d).
       ``(4) Repayment.--If a qualified issuer fails to meet the 
     requirements of paragraph (1) by the end of the 90-day period 
     beginning at the end of the annual measurement period, 
     repayment shall be made on that portion of bonds or notes 
     necessary to bring the bonds or notes that remain outstanding 
     after such repayment into compliance with the 90 percent 
     requirement of paragraph (1).
       ``(5) Prohibited uses.--The Secretary shall, by 
     regulation--
       ``(A) prohibit, as appropriate, certain uses of amounts 
     from the guarantee of a bond or note under the Program, 
     including the use of such funds for political activities, 
     lobbying, outreach, counseling services, or travel expenses; 
     and
       ``(B) provide that the guarantee of a bond or note under 
     the Program may not be used for salaries or other 
     administrative costs of--
       ``(i) the qualified issuer; or
       ``(ii) any recipient of amounts from the guarantee of a 
     bond or note.
       ``(d) Risk-Share Pool.--Each qualified issuer shall, during 
     the term of a guarantee provided under the Program, establish 
     a risk-share pool, capitalized by contributions from eligible 
     community development financial institution participants an 
     amount equal to 3 percent of the guaranteed amount 
     outstanding on the subject notes and bonds.
       ``(e) Guarantees.--
       ``(1) In general.--A guarantee issued under the Program 
     shall--
       ``(A) be for the full amount of a bond or note, including 
     the amount of principal, interest, and call premiums;
       ``(B) be fully assignable and transferable to the capital 
     market, on terms and conditions that are consistent with 
     comparable Government-guaranteed bonds, and satisfactory to 
     the Secretary;
       ``(C) represent the full faith and credit of the United 
     States; and
       ``(D) not exceed 30 years.
       ``(2) Limitations.--
       ``(A) Annual number of guarantees.--The Secretary shall 
     issue not more than 10 guarantees in any calendar year under 
     the Program.
       ``(B) Guarantee amount.--The Secretary may not guarantee 
     any amount under the Program equal to less than $100,000,000, 
     but the total of all such guarantees in any fiscal year may 
     not exceed $1,000,000,000.
       ``(f) Servicing of Transactions.--
       ``(1) In general.--To maximize efficiencies and minimize 
     cost and interest rates, loans made under this section may be 
     serviced by qualified Program administrators, bond servicers, 
     and a master servicer.
       ``(2) Duties of program administrator.--The duties of a 
     Program administrator shall include--
       ``(A) approving and qualifying eligible community 
     development financial institution applications for 
     participation in the Program;
       ``(B) compliance monitoring;
       ``(C) bond packaging in connection with the Program; and
       ``(D) all other duties and related services that are 
     customarily expected of a Program administrator.
       ``(3) Duties of servicer.--The duties of a servicer shall 
     include--
       ``(A) billing and collecting loan payments;
       ``(B) initiating collection activities on past-due loans;
       ``(C) transferring loan payments to the master servicing 
     accounts;
       ``(D) loan administration and servicing;
       ``(E) systematic and timely reporting of loan performance 
     through remittance and servicing reports;
       ``(F) proper measurement of annual outstanding loan 
     requirements; and
       ``(G) all other duties and related services that are 
     customarily expected of servicers.
       ``(4) Duties of master servicer.--The duties of a master 
     servicer shall include--
       ``(A) tracking the movement of funds between the accounts 
     of the master servicer and any other servicer;
       ``(B) ensuring orderly receipt of the monthly remittance 
     and servicing reports of the servicer;
       ``(C) monitoring the collection comments and foreclosure 
     actions;
       ``(D) aggregating the reporting and distribution of funds 
     to trustees and investors;
       ``(E) removing and replacing a servicer, as necessary;
       ``(F) loan administration and servicing;
       ``(G) systematic and timely reporting of loan performance 
     compiled from all bond servicers' reports;
       ``(H) proper distribution of funds to investors; and
       ``(I) all other duties and related services that are 
     customarily expected of a master servicer.
       ``(g) Fees.--
       ``(1) In general.--A qualified issuer that receives a 
     guarantee issued under this section on a bond or note shall 
     pay a fee to the Secretary, in an amount equal to 10 basis 
     points of the amount of the unpaid principal of the bond or 
     note guaranteed.
       ``(2) Payment.--A qualified issuer shall pay the fee 
     required under this subsection on an annual basis.
       ``(3) Use of fees.--Fees collected by the Secretary under 
     this subsection shall be used to reimburse the Department of 
     the Treasury for any administrative costs incurred by the 
     Department in implementing the Program established under this 
     section.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Secretary, such sums as are necessary to carry out 
     this section.
       ``(2) Use of fees.--To the extent that the amount of funds 
     appropriated for a fiscal year under paragraph (1) are not 
     sufficient to carry out this section, the Secretary may use 
     the fees collected under subsection (g) for the cost of 
     providing guarantees of bonds and notes under this section.
       ``(i) Investment in Guaranteed Bonds Ineligible for 
     Community Reinvestment Act Purposes.--Notwithstanding any 
     other provision of law, any investment by a financial 
     institution in bonds or notes guaranteed under the Program 
     shall not be taken into account in assessing the record of 
     such institution for purposes of the Community Reinvestment 
     Act of 1977 (12 U.S.C. 2901).
       ``(j) Administration.--
       ``(1) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall promulgate 
     regulations to carry out this section.
       ``(2) Implementation.--Not later than 2 years after the 
     date of enactment of this section, the Secretary shall 
     implement this section.
       ``(k) Termination.--This section is repealed, and the 
     authority provided under this section shall terminate, on 
     September 30, 2014.''.

     SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.

       (a) In General.--Section 7(a)(31)(D) of the Small Business 
     Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$350,000'' and inserting ``$1,000,000''.
       (b) Prospective Repeal.--Effective 1 year after the date of 
     enactment of this Act, section 7(a)(31)(D) of the Small 
     Business Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$1,000,000'' and inserting ``$350,000''.

     SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX IN CREASES.

       (a) In General.--Except as provided in subsection (b), 
     nothing in section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections, 
     shall be construed to limit the ability of Congress to 
     appropriate funds.
       (b) TARP Funds and Tax Increases.--
       (1) In general.--Any covered amounts may not be used to 
     carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections.
       (2) Definition.--In this subsection, the term ``covered 
     amounts'' means--
       (A) the amounts made available to the Secretary of the 
     Treasury under title I of the Emergency Economic 
     Stabilization Act of 2008 S.C. 5201 et seq.) to purchase 
     (under section 101) or guarantee (under section 102) assets 
     under that Act; and
       (B) any revenue increase attributable to any amendment to 
     the Internal Revenue Code of 1986 made during the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2010.

             Subtitle B--Small Business Trade and Exporting

     SEC. 1201. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Export 
     Enhancement and International Trade Act of 2010''.

     SEC. 1202. DEFINITIONS.

       (a) Definitions.--In this subtitle--
       (1) the term ``Associate Administrator'' means the 
     Associate Administrator for International Trade appointed 
     under section 22(a)(2) of the Small Business Act, as amended 
     by this subtitle;
       (2) the term ``Export Assistance Center'' means a one-stop 
     shop referred to in section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); and
       (3) the term ``rural small business concern'' means a small 
     business concern located in a rural area, as that term is 
     defined in section 1393(a)(2) of the Internal Revenue Code of 
     1986.
       (b) Technical and Conforming Amendments.--
       (1) Definitions.--Section 3 of the Small Business Act (15 
     U.S.C. 632) is amended by adding at the end the following:

[[Page S5551]]

       ``(t) Small Business Development Center.--In this Act, the 
     term `small business development center' means a small 
     business development center described in section 21.
       ``(u) Region of the Administration.--In this Act, the term 
     `region of the Administration' means the geographic area 
     served by a regional office of the Administration established 
     under section 4(a).''.
       (2) Conforming amendment.--Section 4(b)(3)(B)(x) of the 
     Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by 
     striking ``Administration district and region'' and inserting 
     ``district and region of the Administration''.

     SEC. 1203. OFFICE OF INTERNATIONAL TRADE.

       (a) Establishment.--Section 22 of the Small Business Act 
     (15 U.S.C. 649) is amended--
       (1) by striking ``Sec. 22. (a) There'' and inserting the 
     following:

     ``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

       ``(a) Establishment.--
       ``(1) Office.--There''; and
       (2) in subsection (a)--
       (A) in paragraph (1), as so designated, by striking the 
     period and inserting ``for the primary purposes of 
     increasing--
       ``(A) the number of small business concerns that export; 
     and
       ``(B) the volume of exports by small business concerns.''; 
     and
       (B) by adding at the end the following:
       ``(2) Associate administrator.--The head of the Office 
     shall be the Associate Administrator for International Trade, 
     who shall be responsible to the Administrator.''.
       (b) Authority for Additional Associate Administrator.--
     Section 4(b)(1) of the Small Business Act (15 U.S.C. 
     633(b)(1)) is amended--
       (1) in the fifth sentence, by striking ``five Associate 
     Administrators'' and inserting ``Associate Administrators''; 
     and
       (2) by adding at the end the following: ``One such 
     Associate Administrator shall be the Associate Administrator 
     for International Trade, who shall be the head of the Office 
     of International Trade established under section 22.''.
       (c) Discharge of International Trade Responsibilities of 
     Administration.--Section 22 of the Small Business Act (15 
     U.S.C. 649) is amended by adding at the end the following:
       ``(h) Discharge of International Trade Responsibilities of 
     Administration.--The Administrator shall ensure that--
       ``(1) the responsibilities of the Administration regarding 
     international trade are carried out by the Associate 
     Administrator;
       ``(2) the Associate Administrator has sufficient resources 
     to carry out such responsibilities; and
       ``(3) the Associate Administrator has direct supervision 
     and control over--
       ``(A) the staff of the Office; and
       ``(B) any employee of the Administration whose principal 
     duty station is an Export Assistance Center, or any successor 
     entity.''.
       (d) Role of Associate Administrator in Carrying Out 
     International Trade Policy.--Section 2(b)(1) of the Small 
     Business Act (15 U.S.C. 631(b)(1)) is amended in the matter 
     preceding subparagraph (A)--
       (1) by inserting ``the Administrator of'' before ``the 
     Small Business Administration''; and
       (2) by inserting ``through the Associate Administrator for 
     International Trade, and'' before ``in cooperation with''.
       (e) Implementation Date.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator of the Small 
     Business Administration shall appoint an Associate 
     Administrator for International Trade under section 22(a) of 
     the Small Business Act (15 U.S.C. 649(a)), as added by this 
     section.

     SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.

       (a) Amendments to Section 22.--Section 22 of the Small 
     Business Act (15 U.S.C. 649) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Trade Distribution Network.--The Associate 
     Administrator, working in close cooperation with the 
     Secretary of Commerce, the United States Trade 
     Representative, the Secretary of Agriculture, the Secretary 
     of State, the President of the Export-Import Bank of the 
     United States, the President of the Overseas Private 
     Investment Corporation, Director of the United States Trade 
     and Development Agency, and other relevant Federal agencies, 
     small business development centers engaged in export 
     promotion efforts, Export Assistance Centers, regional and 
     district offices of the Administration, the small business 
     community, and relevant State and local export promotion 
     programs, shall--
       ``(1) maintain a distribution network, using regional and 
     district offices of the Administration, the small business 
     development center network, networks of women's business 
     centers, the Service Corps of Retired Executives authorized 
     by section 8(b)(1), and Export Assistance Centers, for 
     programs relating to--
       ``(A) trade promotion;
       ``(B) trade finance;
       ``(C) trade adjustment assistance;
       ``(D) trade remedy assistance; and
       ``(E) trade data collection;
       ``(2) aggressively market the programs described in 
     paragraph (1) and disseminate information, including 
     computerized marketing data, to small business concerns on 
     exporting trends, market-specific growth, industry trends, 
     and international prospects for exports;
       ``(3) promote export assistance programs through the 
     district and regional offices of the Administration, the 
     small business development center network, Export Assistance 
     Centers, the network of women's business centers, chapters of 
     the Service Corps of Retired Executives, State and local 
     export promotion programs, and partners in the private 
     sector; and
       ``(4) give preference in hiring or approving the transfer 
     of any employee into the Office or to a position described in 
     subsection (c)(9) to otherwise qualified applicants who are 
     fluent in a language in addition to English, to--
       ``(A) accompany small business concerns on foreign trade 
     missions; and
       ``(B) translate documents, interpret conversations, and 
     facilitate multilingual transactions, including by providing 
     referral lists for translation services, if required.'';
       (2) in subsection (c)--
       (A) by striking ``(c) The Office'' and inserting the 
     following:
       ``(c) Promotion of Sales Opportunities.--The Associate 
     Administrator'';
       (B) by redesignating paragraphs (1) through (8) as 
     paragraphs (2) through (9), respectively;
       (C) by inserting before paragraph (2), as so redesignated, 
     the following:
       ``(1) establish annual goals for the Office relating to--
       ``(A) enhancing the exporting capability of small business 
     concerns and small manufacturers;
       ``(B) facilitating technology transfers;
       ``(C) enhancing programs and services to assist small 
     business concerns and small manufacturers to compete 
     effectively and efficiently against foreign entities;
       ``(D) increasing the ability of small business concerns to 
     access capital; and
       ``(E) disseminating information concerning Federal, State, 
     and private programs and initiatives;'';
       (D) in paragraph (2), as so redesignated, by striking 
     ``mechanism for'' and all that follows through ``(D) 
     assisting'' and inserting the following: ``mechanism for--
       ``(A) identifying subsectors of the small business 
     community with strong export potential;
       ``(B) identifying areas of demand in foreign markets;
       ``(C) prescreening foreign buyers for commercial and credit 
     purposes; and
       ``(D) assisting'';
       (E) in paragraph (3), as so redesignated, by striking 
     ``assist small businesses in the formation and utilization 
     of'' and inserting ``assist small business concerns in 
     forming and using'';
       (F) in paragraph (4), as so redesignated--
       (i) by striking ``local'' and inserting ``district'';
       (ii) by striking ``existing'';
       (iii) by striking ``Small Business Development Center 
     network'' and inserting ``small business development center 
     network''; and
       (iv) by striking ``Small Business Development Center 
     Program'' and inserting ``small business development center 
     program'';
       (G) in paragraph (5), as so redesignated--
       (i) in subparagraph (A), by striking ``Gross State 
     Produce'' and inserting ``Gross State Product'';
       (ii) in subparagraph (B), by striking ``SIC'' each place it 
     appears and inserting ``North American Industry 
     Classification System''; and
       (iii) in subparagraph (C), by striking ``small businesses'' 
     and inserting ``small business concerns'';
       (H) in paragraph (6), as so redesignated, by striking the 
     period at the end and inserting a semicolon;
       (I) in paragraph (7), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by inserting ``concerns'' after ``small business''; and
       (II) by striking ``current'' and inserting ``up to date'';

       (ii) in subparagraph (A), by striking ``Administration's 
     regional offices'' and inserting ``regional and district 
     offices of the Administration'';
       (iii) in subparagraph (B) by striking ``current'';
       (iv) in subparagraph (C), by striking ``current''; and
       (v) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns'';
       (J) in paragraph (8), as so redesignated, by striking and 
     at the end;
       (K) in paragraph (9), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``full-time export development specialists 
     to each Administration regional office and assigning''; and
       (II) by striking ``person in each district office. Such 
     specialists'' and inserting ``individual in each district 
     office and providing each Administration regional office with 
     a full-time export development specialist, who'';

       (ii) in subparagraph (B)--

       (I) by striking ``current''; and
       (II) by striking ``with'' and inserting ``in'';

       (iii) in subparagraph (D)--

       (I) by striking ``Administration personnel involved in 
     granting'' and inserting ``personnel of the Administration 
     involved in making''; and
       (II) by striking ``and'' at the end;

       (iv) in subparagraph (E)--

[[Page S5552]]

       (I) by striking ``small businesses' needs'' and inserting 
     ``the needs of small business concerns''; and
       (II) by striking the period at the end and inserting a 
     semicolon;

       (v) by adding at the end the following:
       ``(F) participate, jointly with employees of the Office, in 
     an annual training program that focuses on current small 
     business needs for exporting; and
       ``(G) develop and conduct training programs for exporters 
     and lenders, in cooperation with the Export Assistance 
     Centers, the Department of Commerce, the Department of 
     Agriculture, small business development centers, women's 
     business centers, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, and 
     other relevant Federal agencies;''; and
       (vi) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns''; and
       (L) by adding at the end the following:
       ``(10) make available on the website of the Administration 
     the name and contact information of each individual described 
     in paragraph (9);
       ``(11) carry out a nationwide marketing effort using 
     technology, online resources, training, and other strategies 
     to promote exporting as a business development opportunity 
     for small business concerns;
       ``(12) disseminate information to the small business 
     community through regional and district offices of the 
     Administration, the small business development center 
     network, Export Assistance Centers, the network of women's 
     business centers, chapters of the Service Corps of Retired 
     Executives authorized by section 8(b)(1), State and local 
     export promotion programs, and partners in the private sector 
     regarding exporting trends, market-specific growth, industry 
     trends, and prospects for exporting; and
       ``(13) establish and carry out training programs for the 
     staff of the regional and district offices of the 
     Administration and resource partners of the Administration on 
     export promotion and providing assistance relating to 
     exports.'';
       (3) in subsection (d)--
       (A) by redesignating paragraphs (1) through (5) as clauses 
     (i) through (v), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``(d) The Office'' and inserting the 
     following:
       ``(d) Export Financing Programs.--
       ``(1) In general.--The Associate Administrator''; and
       (C) by striking ``To accomplish this goal, the Office shall 
     work'' and inserting the following:
       ``(2) Trade finance specialist.--To accomplish the goal 
     established under paragraph (1), the Associate Administrator 
     shall--
       ``(A) designate at least 1 individual within the 
     Administration as a trade finance specialist to oversee 
     international loan programs and assist Administration 
     employees with trade finance issues; and
       ``(B) work'';
       (4) in subsection (e), by striking ``(e) The Office'' and 
     inserting the following:
       ``(e) Trade Remedies.--The Associate Administrator'';
       (5) by amending subsection (f) to read as follows:
       ``(f) Reporting Requirement.--The Associate Administrator 
     shall submit an annual report to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives that 
     contains--
       ``(1) a description of the progress of the Office in 
     implementing the requirements of this section;
       ``(2) a detailed account of the results of export growth 
     activities of the Administration, including the activities of 
     each district and regional office of the Administration, 
     based on the performance measures described in subsection 
     (i);
       ``(3) an estimate of the total number of jobs created or 
     retained as a result of export assistance provided by the 
     Administration and resource partners of the Administration;
       ``(4) for any travel by the staff of the Office, the 
     destination of such travel and the benefits to the 
     Administration and to small business concerns resulting from 
     such travel; and
       ``(5) a description of the participation by the Office in 
     trade negotiations.'';
       (6) in subsection (g), by striking ``(g) The Office'' and 
     inserting the following:
       ``(g) Studies.--The Associate Administrator''; and
       (7) by adding after subsection (h), as added by section 
     1203 of this subtitle, the following:
       ``(i) Export and Trade Counseling.--
       ``(1) Definition.--In this subsection--
       ``(A) the term `lead small business development center' 
     means a small business development center that has received a 
     grant from the Administration; and
       ``(B) the term `lead women's business center' means a 
     women's business center that has received a grant from the 
     Administration.
       ``(2) Certification program.--The Administrator shall 
     establish an export and trade counseling certification 
     program to certify employees of lead small business 
     development centers and lead women's business centers in 
     providing export assistance to small business concerns.
       ``(3) Number of certified employees.--The Administrator 
     shall ensure that the number of employees of each lead small 
     business development center who are certified in providing 
     export assistance is not less than the lesser of--
       ``(A) 5; or
       ``(B) 10 percent of the total number of employees of the 
     lead small business development center.
       ``(4) Reimbursement for certification.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Administrator shall reimburse a lead 
     small business development center or a lead women's business 
     center for costs relating to the certification of an employee 
     of the lead small business center or lead women's business 
     center in providing export assistance under the program 
     established under paragraph (2).
       ``(B) Limitation.--The total amount reimbursed by the 
     Administrator under subparagraph (A) may not exceed $350,000 
     in any fiscal year.
       ``(j) Performance Measures.--
       ``(1) In general.--The Associate Administrator shall 
     develop performance measures for the Administration to 
     support export growth goals for the activities of the Office 
     under this section that include--
       ``(A) the number of small business concerns that--
       ``(i) receive assistance from the Administration;
       ``(ii) had not exported goods or services before receiving 
     the assistance described in clause (i); and
       ``(iii) export goods or services;
       ``(B) the number of small business concerns receiving 
     assistance from the Administration that export goods or 
     services to a market outside the United States into which the 
     small business concern did not export before receiving the 
     assistance;
       ``(C) export revenues by small business concerns assisted 
     by programs of the Administration;
       ``(D) the number of small business concerns referred to an 
     Export Assistance Center or a small business development 
     center by the staff of the Office;
       ``(E) the number of small business concerns referred to the 
     Administration by an Export Assistance Center or a small 
     business development center; and
       ``(F) the number of small business concerns referred to the 
     Department of Commerce, the Department of Agriculture, the 
     Department of State, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, or the 
     United States Trade and Development Agency by the staff of 
     the Office, an Export Assistance Center, or a small business 
     development center.
       ``(2) Joint performance measures.--The Associate 
     Administrator shall develop joint performance measures for 
     the district offices of the Administration and the Export 
     Assistance Centers that include the number of export loans 
     made under--
       ``(A) section 7(a)(16);
       ``(B) the Export Working Capital Program established under 
     section 7(a)(14);
       ``(C) the Preferred Lenders Program, as defined in section 
     7(a)(2)(C)(ii); and
       ``(D) the export express program established under section 
     7(a)(34).
       ``(3) Consistency of tracking.--The Associate 
     Administrator, in coordination with the departments and 
     agencies that are represented on the Trade Promotion 
     Coordinating Committee established under section 2312 of the 
     Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small 
     business development center network, shall develop a system 
     to track exports by small business concerns, including 
     information relating to the performance measures developed 
     under paragraph (1), that is consistent with systems used by 
     the departments and agencies and the network.''.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives on any travel by the 
     staff of the Office of International Trade of the 
     Administration, during the period beginning on October 1, 
     2004, and ending on the date of enactment of the Act, 
     including the destination of such travel and the benefits to 
     the Administration and to small business concerns resulting 
     from such travel.

     SEC. 1205. EXPORT ASSISTANCE CENTERS.

       (a) Export Assistance Centers.--Section 22 of the Small 
     Business Act (15 U.S.C. 649), as amended by this subtitle, is 
     amended by adding at the end the following:
       ``(k) Export Assistance Centers.--
       ``(1) Export finance specialists.--
       ``(A) Minimum number of export finance specialists.--On and 
     after the date that is 90 days after the date of enactment of 
     this subsection, the Administrator, in coordination with the 
     Secretary of Commerce, shall ensure that the number of export 
     finance specialists is not less than the number of such 
     employees so assigned on January 1, 2003.
       ``(B) Export finance specialists assigned to each region of 
     the administration.--On and after the date that is 2 years 
     after the date of enactment of this subsection, the 
     Administrator, in coordination with the Secretary of 
     Commerce, shall ensure that there are not fewer than 3 export 
     finance specialists in each region of the Administration.
       ``(2) Placement of export finance specialists.--
       ``(A) Priority.--The Administrator shall give priority, to 
     the maximum extent practicable, to placing employees of the 
     Administration at any Export Assistance Center that--

[[Page S5553]]

       ``(i) had an Administration employee assigned to the Export 
     Assistance Center before January 2003; and
       ``(ii) has not had an Administration employee assigned to 
     the Export Assistance Center during the period beginning 
     January 2003, and ending on the date of enactment of this 
     subsection, either through retirement or reassignment.
       ``(B) Needs of exporters.--The Administrator shall, to the 
     maximum extent practicable, strategically assign 
     Administration employees to Export Assistance Centers, based 
     on the needs of exporters.
       ``(C) Rule of construction.--Nothing in this subsection may 
     be construed to require the Administrator to reassign or 
     remove an export finance specialist who is assigned to an 
     Export Assistance Center on the date of enactment of this 
     subsection.
       ``(3) Goals.--The Associate Administrator shall work with 
     the Department of Commerce, the Export-Import Bank of the 
     United States, and the Overseas Private Investment 
     Corporation to establish shared annual goals for the Export 
     Assistance Centers.
       ``(4) Oversight.--The Associate Administrator shall 
     designate an individual within the Administration to oversee 
     all activities conducted by Administration employees assigned 
     to Export Assistance Centers.
       ``(l) Definitions.--In this section--
       ``(1) the term `Associate Administrator' means the 
     Associate Administrator for International Trade described in 
     subsection (a)(2);
       ``(2) the term `Export Assistance Center' means a one-stop 
     shop for United States exporters established by the United 
     States and Foreign Commercial Service of the Department of 
     Commerce pursuant to section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
       ``(3) the term `export finance specialist' means a full-
     time equivalent employee of the Office assigned to an Export 
     Assistance Center to carry out the duties described in 
     subsection (e); and
       ``(4) the term `Office' means the Office of International 
     Trade established under subsection (a)(1).''.
       (b) Study and Report on Filling Gaps in High-and-Low-Export 
     Volume Areas.--
       (1) Study and report.--Not later than 6 months after the 
     date of enactment of this Act, and every 2 years thereafter, 
     the Administrator shall--
       (A) conduct a study of--
       (i) the volume of exports for each State;
       (ii) the availability of export finance specialists in each 
     State;
       (iii) the number of exporters in each State that are small 
     business concerns;
       (iv) the percentage of exporters in each State that are 
     small business concerns;
       (v) the change, if any, in the number of exporters that are 
     small business concerns in each State--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced;

       (vi) the total value of the exports in each State by small 
     business concerns;
       (vii) the percentage of the total volume of exports in each 
     State that is attributable to small business concerns; and
       (viii) the change, if any, in the percentage of the total 
     volume of exports in each State that is attributable to small 
     business concerns--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced; and

       (B) 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 
     containing--
       (i) the results of the study under subparagraph (A);
       (ii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     greatest volume of exports, based upon the most recent data 
     available from the Department of Commerce;
       (iii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     lowest volume of exports, based upon the most recent data 
     available from the Department of Commerce; and
       (iv) such additional information as the Administrator 
     determines is appropriate.
       (2) Definition.--In this subsection, the term ``export 
     finance specialist'' has the meaning given that term in 
     section 22(l) of the Small Business Act, as added by this 
     title.

     SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.

       (a) Loan Limits.--
       (1) Total amount outstanding.--Section 7(a)(3)(B) of the 
     Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by 
     striking ``$1,750,000, of which not more than $1,250,000'' 
     and inserting ``$4,500,000 (or if the gross loan amount would 
     exceed $5,000,000), of which not more than $4,000,000''.
       (2) Participation.--Section 7(a)(2) of the Small Business 
     Act (15 U.S.C. 636(a)(2)) is amended--
       (A) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``subparagraph (B)'' and inserting 
     ``subparagraphs (B), (D), and (E)'';
       (B) in subparagraph (D), by striking ``Notwithstanding 
     subparagraph (A), in'' and inserting ``In''; and
       (C) by adding at the end the following:
       ``(E) Participation in international trade loan.--In an 
     agreement to participate in a loan on a deferred basis under 
     paragraph (16), the participation by the Administration may 
     not exceed 90 percent.''.
       (b) Working Capital.--Section 7(a)(16)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(16)(A)) is amended--
       (1) in the matter preceding clause (i), by striking ``in--
     '' and inserting ``--'';
       (2) in clause (i)--
       (A) by inserting ``in'' after ``(i)''; and
       (B) by striking ``or'' at the end;
       (3) in clause (ii)--
       (A) by inserting ``in'' after ``(ii)''; and
       (B) by striking the period at the end and inserting ``, 
     including any debt that qualifies for refinancing under any 
     other provision of this subsection; or''; and
       (4) by adding at the end the following:
       ``(iii) by providing working capital.''.
       (c) Collateral.--Section 7(a)(16)(B) of the Small Business 
     Act (15 U.S.C. 636(a)(16)(B)) is amended--
       (1) by striking ``Each loan'' and inserting the following:
       ``(i) In general.--Except as provided in clause (ii), each 
     loan''; and
       (2) by adding at the end the following:
       ``(ii) Exception.--A loan under this paragraph may be 
     secured by a second lien position on the property or 
     equipment financed by the loan or on other assets of the 
     small business concern, if the Administrator determines the 
     lien provides adequate assurance of the payment of the 
     loan.''.
       (d) Export Working Capital Program.--Section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(D), by striking ``not exceed'' and 
     inserting ``be''; and
       (2) in paragraph (14)--
       (A) by striking ``(A) The Administration'' and inserting 
     the following: ``Export working capital program.--
       ``(A) In general.--The Administrator'';
       (B) by striking ``(B) When considering'' and inserting the 
     following:
       ``(C) Considerations.--When considering'';
       (C) by striking ``(C) The Administration'' and inserting 
     the following:
       ``(D) Marketing.--The Administrator''; and
       (D) by inserting after subparagraph (A) the following:
       ``(B) Terms.--
       ``(i) Loan amount.--The Administrator may not guarantee a 
     loan under this paragraph of more than $5,000,000.
       ``(ii) Fees.--

       ``(I) In general.--For a loan under this paragraph, the 
     Administrator shall collect the fee assessed under paragraph 
     (23) not more frequently than once each year.
       ``(II) Untapped credit.--The Administrator may not assess a 
     fee on capital that is not accessed by the small business 
     concern.''.

       (e) Participation in Preferred Lenders Program.--Section 
     7(a)(2)(C) of the Small Business Act (15 U.S.C. 636(a)(2)(C)) 
     is amended--
       (1) by redesignating clause (ii) as clause (iii); and
       (2) by inserting after clause (i) the following:
       ``(ii) Export-import bank lenders.--Any lender that is 
     participating in the Delegated Authority Lender Program of 
     the Export-Import Bank of the United States (or any successor 
     to the Program) shall be eligible to participate in the 
     Preferred Lenders Program.''.
       (f) Export Express Program.--Section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)) is amended by adding at the 
     end the following:
       ``(35) Export express program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `export development activity' includes--

       ``(I) obtaining a standby letter of credit when required as 
     a bid bond, performance bond, or advance payment guarantee;
       ``(II) participation in a trade show that takes place 
     outside the United States;
       ``(III) translation of product brochures or catalogues for 
     use in markets outside the United States;
       ``(IV) obtaining a general line of credit for export 
     purposes;
       ``(V) performing a service contract from buyers located 
     outside the United States;
       ``(VI) obtaining transaction-specific financing associated 
     with completing export orders;
       ``(VII) purchasing real estate or equipment to be used in 
     the production of goods or services for export;
       ``(VIII) providing term loans or other financing to enable 
     a small business concern, including an export trading company 
     and an export management company, to develop a market outside 
     the United States; and
       ``(IX) acquiring, constructing, renovating, modernizing, 
     improving, or expanding a production facility or equipment to 
     be used in the United States in the production of goods or 
     services for export; and

       ``(ii) the term `express loan' means a loan in which a 
     lender uses to the maximum extent practicable the loan 
     analyses, procedures, and documentation of the lender to

[[Page S5554]]

     provide expedited processing of the loan application.
       ``(B) Authority.--The Administrator may guarantee the 
     timely payment of an express loan to a small business concern 
     made for an export development activity.
       ``(C) Level of participation.--
       ``(i) Maximum amount.--The maximum amount of an express 
     loan guaranteed under this paragraph shall be $500,000.
       ``(ii) Percentage.--For an express loan guaranteed under 
     this paragraph, the Administrator shall guarantee--

       ``(I) 90 percent of a loan that is not more than $350,000; 
     and
       ``(II) 75 percent of a loan that is more than $350,000 and 
     not more than $500,000.''.

       (g) Annual Listing of Export Finance Lenders.--Section 
     7(a)(16) of the Small Business Act (15 U.S.C. 636(a)(16)) is 
     amended by adding at the end the following:
       ``(F) List of export finance lenders.--
       ``(i) Publication of list required.--The Administrator 
     shall publish an annual list of the banks and participating 
     lending institutions that, during the 1-year period ending on 
     the date of publication of the list, have made loans 
     guaranteed by the Administration under--

       ``(I) this paragraph;
       ``(II) paragraph (14); or
       ``(III) paragraph (34).

       ``(ii) Availability of list.--The Administrator shall--

       ``(I) post the list published under clause (i) on the 
     website of the Administration; and
       ``(II) make the list published under clause (i) available, 
     upon request, at each district office of the 
     Administration.''.

       (h) Applicability.--The amendments made by subsections (a) 
     through (f) shall apply with respect to any loan made after 
     the date of enactment of this Act.

     SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``eligible small business concern'' means a 
     small business concern that--
       (A) has been in business for not less than the 1-year 
     period ending on the date on which assistance is provided 
     using a grant under this section;
       (B) is operating profitably, based on operations in the 
     United States;
       (C) has demonstrated understanding of the costs associated 
     with exporting and doing business with foreign purchasers, 
     including the costs of freight forwarding, customs brokers, 
     packing and shipping, as determined by the Associate 
     Administrator; and
       (D) has in effect a strategic plan for exporting;
       (2) the term ``program'' means the State Trade and Export 
     Promotion Grant Program established under subsection (b);
       (3) the term ``small business concern owned and controlled 
     by women'' has the meaning given that term in section 3 of 
     the Small Business Act (15 U.S.C. 632);
       (4) the term ``socially and economically disadvantaged 
     small business concern'' has the meaning given that term in 
     section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
     6537(a)(4)(A)); and
       (5) the term ``State'' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, and American Samoa.
       (b) Establishment of Program.--The Associate Administrator 
     shall establish a 3-year trade and export promotion pilot 
     program to be known as the State Trade and Export Promotion 
     Grant Program, to make grants to States to carry out export 
     programs that assist eligible small business concerns in--
       (1) participation in a foreign trade mission;
       (2) a foreign market sales trip;
       (3) a subscription to services provided by the Department 
     of Commerce;
       (4) the payment of website translation fees;
       (5) the design of international marketing media;
       (6) a trade show exhibition;
       (7) participation in training workshops; or
       (8) any other export initiative determined appropriate by 
     the Associate Administrator.
       (c) Grants.--
       (1) Joint review.--In carrying out the program, the 
     Associate Administrator may make a grant to a State to 
     increase the number of eligible small business concerns in 
     the State that export or to increase the value of the exports 
     by eligible small business concerns in the State.
       (2) Considerations.--In making grants under this section, 
     the Associate Administrator may give priority to an 
     application by a State that proposes a program that--
       (A) focuses on eligible small business concerns as part of 
     an export promotion program;
       (B) demonstrates success in promoting exports by--
       (i) socially and economically disadvantaged small business 
     concerns;
       (ii) small business concerns owned or controlled by women; 
     and
       (iii) rural small business concerns;
       (C) promotes exports from a State that is not 1 of the 10 
     States with the highest percentage of exporters that are 
     small business concerns, based upon the latest data available 
     from the Department of Commerce; and
       (D) promotes new-to-market export opportunities to the 
     People's Republic of China for eligible small business 
     concerns in the United States.
       (3) Limitations.--
       (A) Single application.--A State may not submit more than 1 
     application for a grant under the program in any 1 fiscal 
     year.
       (B) Proportion of amounts.--The total value of grants under 
     the program made during a fiscal year to the 10 States with 
     the highest number of exporters that are small business 
     concerns, based upon the latest data available from the 
     Department of Commerce, shall be not more than 40 percent of 
     the amounts appropriated for the program for that fiscal 
     year.
       (4) Application.--A State desiring a grant under the 
     program shall submit an application at such time, in such 
     manner, and accompanied by such information as the Associate 
     Administrator may establish.
       (d) Competitive Basis.--The Associate Administrator shall 
     award grants under the program on a competitive basis.
       (e) Federal Share.--The Federal share of the cost of an 
     export program carried out using a grant under the program 
     shall be--
       (1) for a State that has a high export volume, as 
     determined by the Associate Administrator, not more than 65 
     percent; and
       (2) for a State that does not have a high export volume, as 
     determined by the Associate Administrator, not more than 75 
     percent.
       (f) Non-Federal Share.--The non-Federal share of the cost 
     of an export program carried using a grant under the program 
     shall be comprised of not less than 50 percent cash and not 
     more than 50 percent of indirect costs and in-kind 
     contributions, except that no such costs or contributions may 
     be derived from funds from any other Federal program.
       (g) Reports.--
       (1) Initial report.--Not later than 120 days after the date 
     of enactment of this Act, the Associate Administrator 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, which 
     shall include--
       (A) a description of the structure of and procedures for 
     the program;
       (B) a management plan for the program; and
       (C) a description of the merit-based review process to be 
     used in the program.
       (2) Annual reports.--The Associate Administrator shall 
     submit an annual report to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives regarding the 
     program, which shall include--
       (A) the number and amount of grants made under the program 
     during the preceding year;
       (B) a list of the States receiving a grant under the 
     program during the preceding year, including the activities 
     being performed with grant; and
       (C) the effect of each grant on exports by eligible small 
     business concerns in the State receiving the grant.
       (h) Reviews by Inspector General.--
       (1) In general.--The Inspector General of the 
     Administration shall conduct a review of--
       (A) the extent to which recipients of grants under the 
     program are measuring the performance of the activities being 
     conducted and the results of the measurements; and
       (B) the overall management and effectiveness of the 
     program.
       (2) Report.--Not later than September 30, 2012, the 
     Inspector General of the Administration 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 review conducted under 
     paragraph (1).
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the program $30,000,000 for 
     each of fiscal years 2011, 2012, and 2013.
       (j) Termination.--The authority to carry out the program 
     shall terminate 3 years after the date on which the Associate 
     Administrator establishes the program.

     SEC. 1208. RURAL EXPORT PROMOTION.

       Not later than 6 months after the date of enactment of this 
     Act, the Administrator, in consultation with the Secretary of 
     Agriculture and the Secretary of Commerce, 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 that contains--
       (1) a description of each program of the Administration 
     that promotes exports by rural small business concerns, 
     including--
       (A) the number of rural small business concerns served by 
     the program;
       (B) the change, if any, in the number of rural small 
     business concerns as a result of participation in the program 
     during the 10-year period ending on the date of enactment of 
     this Act;
       (C) the volume of exports by rural small business concerns 
     that participate in the program; and
       (D) the change, if any, in the volume of exports by rural 
     small businesses that participate in the program during the 
     10-year period ending on the date of enactment of this Act;
       (2) a description of the coordination between programs of 
     the Administration and other Federal programs that promote 
     exports by rural small business concerns;
       (3) recommendations, if any, for improving the coordination 
     described in paragraph (2);
       (4) a description of any plan by the Administration to 
     market the international trade financing programs of the 
     Administration through lenders that--

[[Page S5555]]

       (A) serve rural small business concerns; and
       (B) are associated with financing programs of the 
     Department of Agriculture;
       (5) recommendations, if any, for improving coordination 
     between the counseling programs and export financing programs 
     of the Administration, in order to increase the volume of 
     exports by rural small business concerns; and
       (6) any additional information the Administrator determines 
     is necessary.

     SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS 
                   DEVELOPMENT CENTERS.

       Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) 
     is amended--
       (1) by striking ``(2) The Small Business Development 
     Centers'' and inserting the following:
       ``(2) Cooperation to provide international trade 
     services.--
       ``(A) Information and services.--The small business 
     development centers''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), as so designated, by inserting 
     ``(including State trade agencies),'' after ``local 
     agencies''; and
       (B) by adding at the end the following:
       ``(B) Cooperation with state trade agencies and export 
     assistance centers.--A small business development center that 
     counsels a small business concern on issues relating to 
     international trade shall--
       ``(i) consult with State trade agencies and Export 
     Assistance Centers to provide appropriate services to the 
     small business concern; and
       ``(ii) as necessary, refer the small business concern to a 
     State trade agency or an Export Assistance Center for further 
     counseling or assistance.
       ``(C) Definition.--In this paragraph, the term `Export 
     Assistance Center' has the same meaning as in section 22.''.

                 Subtitle C--Small Business Contracting

                       PART I--CONTRACT BUNDLING

     SEC. 1311. SMALL BUSINESS ACT.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1202, is amended by adding at the end the 
     following:
       ``(v) Multiple Award Contract.--In this Act, the term 
     `multiple award contract' means--
       ``(1) a multiple award task order contract or delivery 
     order contract that is entered into under the authority of 
     sections 303H through 303K of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253h through 
     253k); and
       ``(2) any other indefinite delivery, indefinite quantity 
     contract that is entered into by the head of a Federal agency 
     with 2 or more sources pursuant to the same solicitation.''.

     SEC. 1312. LEADERSHIP AND OVERSIGHT.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by adding at the end the following:
       ``(q) Bundling Accountability Measures.--
       ``(1) Teaming requirements.--Each Federal agency shall 
     include in each solicitation for any multiple award contract 
     above the substantial bundling threshold of the Federal 
     agency a provision soliciting bids from any responsible 
     source, including responsible small business concerns and 
     teams or joint ventures of small business concerns.
       ``(2) Policies on reduction of contract bundling.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 4219(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) establish a Government-wide policy regarding contract 
     bundling, including regarding the solicitation of teaming and 
     joint ventures under paragraph (1); and
       ``(ii) require that the policy established under clause (i) 
     be published on the website of each Federal agency.
       ``(B) Rationale for contract bundling.--Not later than 30 
     days after the date on which the head of a Federal agency 
     submits data certifications to the Administrator for Federal 
     Procurement Policy, the head of the Federal agency shall 
     publish on the website of the Federal agency a list and 
     rationale for any bundled contract for which the Federal 
     agency solicited bids or that was awarded by the Federal 
     agency.
       ``(3) Reporting.--Not later than 90 days after the date of 
     enactment of this subsection, and every 3 years thereafter, 
     the Administrator 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 procurement center representatives and commercial 
     market representatives, which shall--
       ``(A) identify each area for which the Administration has 
     assigned a procurement center representative or a commercial 
     market representative;
       ``(B) explain why the Administration selected the areas 
     identified under subparagraph (A); and
       ``(C) describe the activities performed by procurement 
     center representatives and commercial market 
     representatives.''.
       (b) Technical Correction.--Section 15(g) of the Small 
     Business Act (15 U.S.C. 644(g)) is amended by striking 
     ``Administrator of the Office of Federal Procurement Policy'' 
     each place it appears and inserting ``Administrator for 
     Federal Procurement Policy''.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report regarding the 
     procurement center representative program of the 
     Administration.
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) address ways to improve the effectiveness of the 
     procurement center representative program in helping small 
     business concerns obtain Federal contracts;
       (B) evaluate the effectiveness of procurement center 
     representatives and commercial marketing representatives; and
       (C) include recommendations, if any, on how to improve the 
     procurement center representative program.
       (d) Electronic Procurement Center Representative.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall implement a 3-
     year pilot electronic procurement center representative 
     program.
       (2) Report.--Not later than 30 days after the pilot program 
     under paragraph (1) ends, 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 pilot program.

     SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 44 as section 45; and
       (2) by inserting after section 43 the following:

     ``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       ``(a) Definitions.--In this section--
       ``(1) the term `Chief Acquisition Officer' means the 
     employee of a Federal agency designated as the Chief 
     Acquisition Officer for the Federal agency under section 
     16(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 414(a));
       ``(2) the term `consolidation of contract requirements', 
     with respect to contract requirements of a Federal agency, 
     means a use of a solicitation to obtain offers for a single 
     contract or a multiple award contract to satisfy 2 or more 
     requirements of the Federal agency for goods or services that 
     have been provided to or performed for the Federal agency 
     under 2 or more separate contracts lower in cost than the 
     total cost of the contract for which the offers are 
     solicited; and
       ``(3) the term `senior procurement executive' means an 
     official designated under section 16(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 414(c)) as the 
     senior procurement executive for a Federal agency.
       ``(b) Policy.--The head of each Federal agency shall ensure 
     that the decisions made by the Federal agency regarding 
     consolidation of contract requirements of the Federal agency 
     are made with a view to providing small business concerns 
     with appropriate opportunities to participate as prime 
     contractors and subcontractors in the procurements of the 
     Federal agency.
       ``(c) Limitation on Use of Acquisition Strategies Involving 
     Consolidation.--
       ``(1) In general.--Subject to paragraph (4), the head of a 
     Federal agency may not carry out an acquisition strategy that 
     includes a consolidation of contract requirements of the 
     Federal agency with a total value of more than $2,000,000, 
     unless the senior procurement executive or Chief Acquisition 
     Officer for the Federal agency, before carrying out the 
     acquisition strategy--
       ``(A) conducts market research;
       ``(B) identifies any alternative contracting approaches 
     that would involve a lesser degree of consolidation of 
     contract requirements;
       ``(C) makes a written determination that the consolidation 
     of contract requirements is necessary and justified;
       ``(D) identifies any negative impact by the acquisition 
     strategy on contracting with small business concerns; and
       ``(E) certifies to the head of the Federal agency that 
     steps will be taken to include small business concerns in the 
     acquisition strategy.
       ``(2) Determination that consolidation is necessary and 
     justified.--
       ``(A) In general.--A senior procurement executive or Chief 
     Acquisition Officer may determine that an acquisition 
     strategy involving a consolidation of contract requirements 
     is necessary and justified for the purposes of paragraph 
     (1)(C) if the benefits of the acquisition strategy 
     substantially exceed the benefits of each of the possible 
     alternative contracting approaches identified under paragraph 
     (1)(B).
       ``(B) Savings in administrative or personnel costs.--For 
     purposes of subparagraph (A), savings in administrative or 
     personnel costs alone do not constitute a sufficient 
     justification for a consolidation of contract requirements in 
     a procurement unless the expected total amount of the cost 
     savings, as determined by the senior procurement executive or 
     Chief Acquisition Officer, is expected to be substantial in 
     relation to the total cost of the procurement.

[[Page S5556]]

       ``(3) Benefits to be considered.--The benefits considered 
     for the purposes of paragraphs (1) and (2) may include cost 
     and, regardless of whether quantifiable in dollar amounts--
       ``(A) quality;
       ``(B) acquisition cycle;
       ``(C) terms and conditions; and
       ``(D) any other benefit.
       ``(4) Department of defense.--
       ``(A) In general.--The Department of Defense and each 
     military department shall comply with this section until 
     after the date described in subparagraph (C).
       ``(B) Rule.--After the date described in subparagraph (C), 
     contracting by the Department of Defense or a military 
     department shall be conducted in accordance with section 2382 
     of title 10, United States Code.
       ``(C) Date.--The date described in this subparagraph is the 
     date on which the Administrator determines the Department of 
     Defense or a military department is in compliance with the 
     Government-wide contracting goals under section 15.''.
       (b) Technical and Conforming Amendment.--Section 2382(b)(1) 
     of title 10, United States Code, is amended by striking ``An 
     official'' and inserting ``Subject to section 44(c)(4), an 
     official''.

     SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``Pilot Program'' means the Small Business 
     Teaming Pilot Program established under subsection (b); and
       (2) the term ``eligible organization'' means a well-
     established national organization for small business concerns 
     with the capacity to provide assistance to small business 
     concerns (which may be provided with the assistance of the 
     Administrator) relating to--
       (A) customer relations and outreach;
       (B) team relations and outreach; and
       (C) performance measurement and quality assurance.
       (b) Establishment.--The Administrator shall establish a 
     Small Business Teaming Pilot Program for teaming and joint 
     ventures involving small business concerns.
       (c) Grants.--Under the Pilot Program, the Administrator may 
     make grants to eligible organizations to provide assistance 
     and guidance to teams of small business concerns seeking to 
     compete for larger procurement contracts.
       (d) Contracting Opportunities.--The Administrator shall 
     work with eligible organizations receiving a grant under the 
     Pilot Program to recommend appropriate contracting 
     opportunities for teams or joint ventures of small business 
     concerns.
       (e) Report.--Not later than 1 year before the date on which 
     the authority to carry out the Pilot Program terminates under 
     subsection (f), the Administrator 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 on the effectiveness of the Pilot 
     Program.
       (f) Termination.--The authority to carry out the Pilot 
     Program shall terminate 5 years after the date of enactment 
     of this Act.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated for grants under subsection (c) $5,000,000 
     for each of fiscal years 2010 through 2015.

                   PART II--SUBCONTRACTING INTEGRITY

     SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS.

       Not later than 1 year after the date of enactment of this 
     Act, the Administrator, in consultation with the 
     Administrator for Federal Procurement Policy, shall 
     promulgate regulations relating to, and the Federal 
     Acquisition Regulatory Council established under section 
     25(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 421(a)) shall amend the Federal Acquisition Regulation 
     issued under section 25 of such Act to establish a policy on, 
     subcontracting compliance relating to small business 
     concerns, including assignment of compliance responsibilities 
     between contracting offices, small business offices, and 
     program offices and periodic oversight and review activities.

     SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

       Section 8(d)(6) of the Small Business Act (15 U.S.C. 
     637(d)(6)) is amended--
       (1) in subparagraph (E), by striking ``and'' at the end;
       (2) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end, the following:
       ``(G) a representation that the offeror or bidder will--
       ``(i) make a good faith effort to acquire articles, 
     equipment, supplies, services, or materials, or obtain the 
     performance of construction work from the small business 
     concerns used in preparing and submitting to the contracting 
     agency the bid or proposal, in the same amount and quality 
     used in preparing and submitting the bid or proposal; and
       ``(ii) provide to the contracting officer a written 
     explanation if the offeror or bidder fails to acquire 
     articles, equipment, supplies, services, or materials or 
     obtain the performance of construction work as described in 
     clause (i).''.

                     PART III--ACQUISITION PROCESS

     SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
                   BUSINESSES.

       Section 15 of the Small Business Act (15 U.S.C. 644), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(r) Multiple Award Contracts.--Not later than 1 year 
     after the date of enactment of this subsection, the 
     Administrator for Federal Procurement Policy and the 
     Administrator, in consultation with the Administrator of 
     General Services, shall, by regulation, establish guidance 
     under which Federal agencies may, at their discretion--
       ``(1) set aside part or parts of a multiple award contract 
     for small business concerns, including the subcategories of 
     small business concerns identified in subsection (g)(2);
       ``(2) notwithstanding the fair opportunity requirements 
     under section 2304c(b) of title 10, United States Code, and 
     section 303J(b) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders 
     placed against multiple award contracts for small business 
     concerns, including the subcategories of small business 
     concerns identified in subsection (g)(2); and
       ``(3) reserve 1 or more contract awards for small business 
     concerns under full and open multiple award procurements, 
     including the subcategories of small business concerns 
     identified in subsection (g)(2).''.

     SEC. 1332. MICRO-PURCHASE GUIDELINES.

       Not later than 1 year after the date of enactment of this 
     Act, the Director of the Office of Management and Budget, in 
     coordination with the Administrator of General Services, 
     shall issue guidelines regarding the analysis of purchase 
     card expenditures to identify opportunities for achieving and 
     accurately measuring fair participation of small business 
     concerns in purchases in an amount not in excess of the 
     micro-purchase threshold, as defined in section 32 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 428) (in 
     this section referred to as ``micro-purchases''), consistent 
     with the national policy on small business participation in 
     Federal procurements set forth in sections 2(a) and 15(g) of 
     the Small Business Act (15 U.S.C. 631(a) and 644(g)), and 
     dissemination of best practices for participation of small 
     business concerns in micro-purchases.

     SEC. 1333. AGENCY ACCOUNTABILITY.

       Section 15(g)(2) of the Small Business Act (15 U.S.C. 
     644(g)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) by striking ``Goals established'' and inserting the 
     following:
       ``(B) Goals established'';
       (3) by striking ``Whenever'' and inserting the following:
       ``(C) Whenever'';
       (4) by striking ``For the purpose of'' and inserting the 
     following:
       ``(D) For the purpose of'';
       (5) by striking ``The head of each Federal agency, in 
     attempting to attain such participation'' and inserting the 
     following:
       ``(E) The head of each Federal agency, in attempting to 
     attain the participation described in subparagraph (D)''.
       (6) in subparagraph (E), as so designated--
       (A) by striking ``(A) contracts'' and inserting ``(i) 
     contracts''; and
       (B) by striking ``(B) contracts'' and inserting ``(ii) 
     contracts''; and
       (7) by adding at the end the following:
       ``(F)(i) Each procurement employee or program manager 
     described in clause (ii) shall communicate to the 
     subordinates of the procurement employee or program manager 
     the importance of achieving small business goals.
       ``(ii) A procurement employee or program manager described 
     in this clause is a senior procurement executive, senior 
     program manager, or Director of Small and Disadvantaged 
     Business Utilization of a Federal agency having contracting 
     authority.''.

     SEC. 1334. PAYMENT OF SUBCONTRACTORS.

       Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     is amended by adding at the end the following:
       ``(12) Payment of Subcontractors.--
       ``(A) Definition.--In this paragraph, the term `covered 
     contract' means a contract relating to which a prime 
     contractor is required to develop a subcontracting plan under 
     paragraph (4) or (5).
       ``(B) Notice.--
       ``(i) In general.--A prime contractor for a covered 
     contract shall notify in writing the contracting officer for 
     the covered contract if the prime contractor pays a reduced 
     price to a subcontractor for goods and services upon 
     completion of the responsibilities of the subcontractor or 
     the payment to a subcontractor is more than 90 days past due 
     for goods or services provided for the covered contract for 
     which the Federal agency has paid the prime contractor.
       ``(ii) Contents.--A prime contractor shall include the 
     reason for the reduction in a payment to or failure to pay a 
     subcontractor in any notice made under clause (i).
       ``(C) Performance.--A contracting officer for a covered 
     contract shall consider the unjustified failure by a prime 
     contractor to make a full or timely payment to a 
     subcontractor in evaluating the performance of the prime 
     contractor.
       ``(D) Control of funds.--If the contracting officer for a 
     covered contract determines that a prime contractor has a 
     history of unjustified, untimely payments to contractors, the 
     contracting officer shall record the identity of the 
     contractor in accordance with the regulations promulgated 
     under subparagraph (E).
       ``(E) Regulations.--Not later than 1 year after the date of 
     enactment of this paragraph, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--

[[Page S5557]]

       ``(i) describe the circumstances under which a contractor 
     may be determined to have a history of unjustified, untimely 
     payments to subcontractors;
       ``(ii) establish a process for contracting officers to 
     record the identity of a contractor described in clause (i); 
     and
       ``(iii) require the identity of a contractor described in 
     clause (i) to be incorporated in, and made publicly available 
     through, the Federal Awardee Performance and Integrity 
     Information System, or any successor thereto.''.

     SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS 
                   DEMONSTRATION PROGRAM.

       (a) In General.--The Business Opportunity Development 
     Reform Act of 1988 (Public Law 100-656) is amended by 
     striking title VII (15 U.S.C. 644 note).
       (b) Effective Date and Applicability.--The amendment made 
     by this section--
       (1) shall take effect on the date of enactment of this Act; 
     and
       (2) apply to the first full fiscal year after the date of 
     enactment of this Act.

           PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

     SEC. 1341. POLICY AND PRESUMPTIONS.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1311, is amended by adding at the end the 
     following:
       ``(w) Presumption.--
       ``(1) In general.--In every contract, subcontract, 
     cooperative agreement, cooperative research and development 
     agreement, or grant which is set aside, reserved, or 
     otherwise classified as intended for award to small business 
     concerns, there shall be a presumption of loss to the United 
     States based on the total amount expended on the contract, 
     subcontract, cooperative agreement, cooperative research and 
     development agreement, or grant whenever it is established 
     that a business concern other than a small business concern 
     willfully sought and received the award by misrepresentation.
       ``(2) Deemed certifications.--The following actions shall 
     be deemed affirmative, willful, and intentional 
     certifications of small business size and status:
       ``(A) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement reserved, set aside, or 
     otherwise classified as intended for award to small business 
     concerns.
       ``(B) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement which in any way 
     encourages a Federal agency to classify the bid or proposal, 
     if awarded, as an award to a small business concern.
       ``(C) Registration on any Federal electronic database for 
     the purpose of being considered for award of a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research agreement, as a small business concern.
       ``(3) Certification by signature of responsible official.--
       ``(A) In general.--Each solicitation, bid, or application 
     for a Federal contract, subcontract, or grant shall contain a 
     certification concerning the small business size and status 
     of a business concern seeking the Federal contract, 
     subcontract, or grant.
       ``(B) Content of certifications.--A certification that a 
     business concern qualifies as a small business concern of the 
     exact size and status claimed by the business concern for 
     purposes of bidding on a Federal contract or subcontract, or 
     applying for a Federal grant, shall contain the signature of 
     an authorized official on the same page on which the 
     certification is contained.
       ``(4) Regulations.--The Administrator shall promulgate 
     regulations to provide adequate protections to individuals 
     and business concerns from liability under this subsection in 
     cases of unintentional errors, technical malfunctions, and 
     other similar situations.''.

     SEC. 1342. ANNUAL CERTIFICATION.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1341, is amended by adding at the end the 
     following:
       ``(x) Annual Certification.--
       ``(1) In general.--Each business certified as a small 
     business concern under this Act shall annually certify its 
     small business size and, if appropriate, its small business 
     status, by means of a confirming entry on the Online 
     Representations and Certifications Application database of 
     the Administration, or any successor thereto.
       ``(2) Regulations.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Inspector General and the Chief Counsel 
     for Advocacy of the Administration, shall promulgate 
     regulations to ensure that--
       ``(A) no business concern continues to be certified as a 
     small business concern on the Online Representations and 
     Certifications Application database of the Administration, or 
     any successor thereto, without fulfilling the requirements 
     for annual certification under this subsection; and
       ``(B) the requirements of this subsection are implemented 
     in a manner presenting the least possible regulatory burden 
     on small business concerns.''.

     SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT 
                   PERSONNEL.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Federal Acquisition Institute, in 
     consultation with the Administrator for Federal Procurement 
     Policy, the Defense Acquisition University, and the 
     Administrator, shall develop courses for acquisition 
     personnel concerning proper classification of business 
     concerns and small business size and status for purposes of 
     Federal contracts, subcontracts, grants, cooperative 
     agreements, and cooperative research and development 
     agreements.
       (b) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Section 3 of the Small Business Act (15 U.S.C. 
     632), as amended by section 1342, is amended by adding at the 
     end the following:
       ``(y) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Attorney General, shall issue a 
     Government-wide policy on prosecution of small business size 
     and status fraud, which shall direct Federal agencies to 
     appropriately publicize the policy.''.

     SEC. 1344. UPDATED SIZE STANDARDS.

       (a) Rolling Review.--
       (1) In general.--The Administrator shall--
       (A) during the 18-month period beginning on the date of 
     enactment of this Act, and during every 18-month period 
     thereafter, conduct a detailed review of not less than \1/3\ 
     of the size standards for small business concerns established 
     under section 3(a)(2) of the Small Business Act (15 U.S.C. 
     632(a)(2)), which shall include holding not less than 2 
     public forums located in different geographic regions of the 
     United States;
       (B) after completing each review under subparagraph (A) 
     make appropriate adjustments to the size standards 
     established under section 3(a)(2) of the Small Business Act 
     to reflect market conditions;
       (C) make publicly available--
       (i) information regarding the factors evaluated as part of 
     each review conducted under subparagraph (A); and
       (ii) information regarding the criteria used for any 
     revised size standards promulgated under subparagraph (B); 
     and
       (D) not later than 30 days after the date on which the 
     Administrator completes each review under subparagraph (A), 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives and make publicly 
     available a report regarding the review, including why the 
     Administrator--
       (i) used the factors and criteria described in subparagraph 
     (C); and
       (ii) adjusted or did not adjust each size standard that was 
     reviewed under the review.
       (2) Complete review of size standards.--The Administrator 
     shall ensure that each size standard for small business 
     concerns established under section 3(a)(2) of the Small 
     Business Act (15 U.S.C. 632(a)(2)) is reviewed under 
     paragraph (1) not less frequently than once every 5 years.
       (b) Rules.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     rules for conducting the reviews required under subsection 
     (a).

     SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the mentor-protege program of 
     the Administration for small business concerns participating 
     in programs under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)), and other relationships and strategic 
     alliances pairing a larger business and a small business 
     concern partner to gain access to Federal Government 
     contracts, to determine whether the programs and 
     relationships are effectively supporting the goal of 
     increasing the participation of small business concerns in 
     Government contracting.
       (b) Matters To Be Studied.--The study conducted under this 
     section shall include--
       (1) a review of a broad cross-section of industries; and
       (2) an evaluation of--
       (A) how each Federal agency carrying out a program 
     described in subsection (a) administers and monitors the 
     program;
       (B) whether there are systems in place to ensure that the 
     mentor-protege relationship, or similar affiliation, promotes 
     real gain to the protege, and is not just a mechanism to 
     enable participants that would not otherwise qualify under 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a)) to 
     receive contracts under that section; and
       (C) the degree to which protege businesses become able to 
     compete for Federal contracts without the assistance of a 
     mentor.
       (c) Report to Congress.--Not later than 180 days after the 
     date of enactment of this Act, the Comptroller General 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 on the 
     results of the study conducted under this section.

     SEC. 1346. CONTRACTING GOALS REPORTS.

       Section 15(h)(2) of the Small Business Act (15 U.S.C. 
     644(h)(2)) is amended by striking ``submit them'' and all 
     that follows through ``the following:'' and inserting 
     ``submit to the President and the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives the compilation and 
     analysis, which shall include the following:''.

     SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.

       (a) Definitions.--In this section--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and

[[Page S5558]]

       (2) the terms ``HUBZone small business concern'', ``small 
     business concern'', ``small business concern owned and 
     controlled by service-disabled veterans'', and ``small 
     business concern owned and controlled by women'' have the 
     same meanings as in section 3 of the Small Business Act (15 
     U.S.C. 632).
       (b) Contracting Improvements.--
       (1) Contracting opportunities.--Section 31(b)(2)(B) of the 
     Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended by 
     striking ``shall'' and inserting ``may''.
       (2) Contracting goals.--Section 15(g)(1) of the Small 
     Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth 
     sentence by inserting ``and subcontract'' after ``not less 
     than 3 percent of the total value of all prime contract''.
       (3) Mentor-protege programs.--The Administrator may 
     establish mentor-protege programs for small business concerns 
     owned and controlled by service-disabled veterans, small 
     business concerns owned and controlled by women, and HUBZone 
     small business concerns modeled on the mentor-protege program 
     of the Administration for small business concerns 
     participating in programs under section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)).
       (c) Small Business Contracting Programs Parity.--Section 
     31(b)(2) of the Small Business Act (15 U.S.C. 657a(b)(2)) is 
     amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``Notwithstanding any other provision of law--'';
       (2) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking ``a 
     contracting'' and inserting ``Sole source contracts.--A 
     contracting''; and
       (B) in clause (iii), by striking the semicolon at the end 
     and inserting a period;
       (3) in subparagraph (B)--
       (A) by striking ``a contract opportunity shall'' and 
     inserting ``Restricted competition.--A contract opportunity 
     may''; and
       (B) by striking ``; and'' and inserting a period; and
       (4) in subparagraph (C), by striking ``not later'' and 
     inserting ``Appeals.--Not later''.

    Subtitle D--Small Business Management and Counseling Assistance

     SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS 
                   PROGRAMS.

       (a) Microloan Program.--Section 7(m) of the Small Business 
     Act (15 U.S.C. 636(m)) is amended--
       (1) in paragraph (3)(B)--
       (A) by striking ``As a condition'' and inserting the 
     following:
       ``(i) In general.--Subject to clause (ii), as a 
     condition'';
       (B) by striking ``the Administration'' and inserting ``the 
     Administrator''; and
       (C) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''; and
       (2) in paragraph (4)(B)--
       (A) by striking ``As a condition'' and all that follows 
     through ``the Administration shall require'' and inserting 
     the following:
       ``(i) In general.--Subject to clause (ii), as a condition 
     of a grant made under subparagraph (A), the Administrator 
     shall require''; and
       (B) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''.
       (b) Women's Business Center Program.--Section 29(c) of the 
     Small Business Act (15 U.S.C. 656(c)) is amended--
       (1) in paragraph (1), by striking ``As a condition'' and 
     inserting ``Subject to paragraph (5), as a condition''; and
       (2) by adding at the end the following:
       ``(5) Waiver of non-federal share relating to technical 
     assistance and counseling.--
       ``(A) In general.--Upon request by a recipient 
     organization, and in accordance with this paragraph, the 
     Administrator may waive, in whole or in part, the requirement 
     to obtain non-Federal funds under this subsection for the 
     technical assistance and counseling activities of the 
     recipient organization carried out using financial assistance 
     under this section for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     paragraph for successive fiscal years.
       ``(B) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this paragraph, 
     the Administrator shall consider--
       ``(i) the economic conditions affecting the recipient 
     organization;
       ``(ii) the impact a waiver under this clause would have on 
     the credibility of the women's business center program under 
     this section;
       ``(iii) the demonstrated ability of the recipient 
     organization to raise non-Federal funds; and
       ``(iv) the performance of the recipient organization.
       ``(C) Limitations.--
       ``(i) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     if granting the waiver would undermine the credibility of the 
     women's business center program under this section.
       ``(ii) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     for fiscal year 2013 or any fiscal year thereafter.''.
       (c) Prospective Repeals.--Effective October 1, 2012, the 
     Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 7(m) (15 U.S.C. 636(m))--
       (A) in paragraph (3)(B)--
       (i) by striking ``Intermediary contribution.--'' and all 
     that follows through ``Subject to clause (ii), as'' and 
     inserting ``Intermediary contribution.--As''; and
       (ii) by striking clause (ii); and
       (B) in paragraph (4)(B)--
       (i) by striking ``Contribution.--'' and all that follows 
     through ``Subject to clause (ii), as'' and inserting 
     ``Contribution.--As''; and
       (ii) by striking clause (ii); and
       (2) in section 29(c) (15 U.S.C. 656(c))--
       (A) in paragraph (1), by striking ``Subject to paragraph 
     (5), as'' and inserting ``As''; and
       (B) by striking paragraph (5).

     SEC. 1402. GRANTS FOR SBDCS.

       (a) In General.--The Administrator may make grants to small 
     business development centers under section 21 of the Small 
     Business Act (15 U.S.C. 648) to provide targeted technical 
     assistance to small business concerns seeking access to 
     capital or credit, Federal procurement opportunities, energy 
     efficiency audits to reduce energy bills, opportunities to 
     export products or provide services to foreign customers, 
     adopting, making innovations in, and using broadband 
     technologies, or other assistance.
       (b) Allocation.--
       (1) In general.--Subject to paragraph (2), and 
     notwithstanding the requirements of section 21(a)(4)(C)(iii) 
     of the Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the 
     amount appropriated to carry out this section shall be 
     allocated under the formula under section 21(a)(4)(C)(i) of 
     that Act.
       (2) Minimum funding.--The amount made available under this 
     section to each State shall be not less than $325,000.
       (3) Types of uses.--Of the total amount of the grants 
     awarded by the Administrator under this section--
       (A) not less than 80 percent shall be used for counseling 
     of small business concerns; and
       (B) not more than 20 percent may be used for classes or 
     seminars.
       (c) No Non-Federal Share Required.--Notwithstanding section 
     21(a)(4)(A) of the Small Business Act (15 U.S.C. 
     648(a)(4)(A)), the recipient of a grant made under this 
     section shall not be required to provide non-Federal matching 
     funds.
       (d) Distribution.--Not later than 30 days after the date on 
     which amounts are appropriated to carry out this section, the 
     Administrator shall disburse the total amount appropriated.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator $50,000,000 to carry 
     out this section.

                 Subtitle E--Disaster Loan Improvement

     SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1343, is amended by adding at the end the 
     following:

[[Page S5559]]

       ``(z) Aquaculture Business Disaster Assistance.--Subject to 
     section 18(a) and notwithstanding section 18(b)(1), the 
     Administrator may provide disaster assistance under section 
     7(b)(2) to aquaculture enterprises that are small 
     businesses.''.

              Subtitle F--Small Business Regulatory Relief

     SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.

       Section 604(a) of title 5, United States Code, is amended--
       (1) in paragraph (1), by striking ``succinct'';
       (2) in paragraph (2), by striking ``summary'' each place it 
     appears and inserting ``statement'';
       (3) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (4) by inserting after paragraph (2) the following:
       ``(3) the response of the agency to any comments filed by 
     the Chief Counsel for Advocacy of the Small Business 
     Administration in response to the proposed rule, and a 
     detailed statement of any change made to the proposed rule in 
     the final rule as a result of the comments;''.

     SEC. 1602. OFFICE OF ADVOCACY.

       (a) In General.--Section 203 of Public Law 94-305 (15 
     U.S.C. 634c) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(6) carry out the responsibilities of the Office of 
     Advocacy under chapter 6 of title 5, United States Code.''.
       (b) Budgetary Line Item and Authorization of 
     Appropriations.--Title II of Public Law 94-305 (15 U.S.C. 
     634a et seq.) is amended by striking section 207 and 
     inserting the following:

     ``SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF 
                   APPROPRIATIONS.

       ``(a) Appropriation Requests.--Each budget of the United 
     States Government submitted by the President under section 
     1105 of title 31, United States Code, shall include a 
     separate statement of the amount of appropriations requested 
     for the Office of Advocacy of the Small Business 
     Administration, which shall be designated in a separate 
     account in the General Fund of the Treasury.
       ``(b) Administrative Operations.--The Administrator of the 
     Small Business Administration shall provide the Office of 
     Advocacy with appropriate and adequate office space at 
     central and field office locations, together with such 
     equipment, operating budget, and communications facilities 
     and services as may be necessary, and shall provide necessary 
     maintenance services for such offices and the equipment and 
     facilities located in such offices.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this title. Any amount appropriated under this 
     subsection shall remain available, without fiscal year 
     limitation, until expended.''.

                 Subtitle G--Appropriations Provisions

     SEC. 1701. SALARIES AND EXPENSES.

       (a) Appropriation.--There is appropriated, out of any money 
     in the Treasury not otherwise appropriated, for the fiscal 
     year ending September 30, 2010, $150,000,000, to remain 
     available until September 30, 2012, for an additional amount 
     for the appropriations account appropriated under the heading 
     ``salaries and expenses'' under the heading ``Small Business 
     Administration'', of which--
       (1) $50,000,000 is for grants to small business development 
     centers authorized under section 1402;
       (2) $1,000,000 is for the costs of administering grants 
     authorized under section 1402;
       (3) $30,000,000 is for grants to States for fiscal year 
     2011 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (4) $30,000,000 is for grants to States for fiscal year 
     2012 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (5) $2,500,000 is for the costs of administering grants 
     authorized under section 1207;
       (6) $5,000,000 is for grants for fiscal year 2011 under the 
     Small Business Teaming Pilot Program under section 1314; and
       (7) $5,000,000 is for grants for fiscal year 2012 under the 
     Small Business Teaming Pilot Program under section 1314.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Appropriations of the Senate and the Committee 
     on Appropriations of the House of Representatives a detailed 
     expenditure plan for using the funds provided under 
     subsection (a).

     SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.

       (a) In General.--There is appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2010, for an additional amount for the 
     appropriations account appropriated under the heading 
     ``business loans program account'' under the heading ``Small 
     Business Administration''--
       (1) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2011 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (2) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2012 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (3) $6,500,000, to remain available until September 30, 
     2012, for administrative expenses to carry out the direct 
     loan program authorized under section 7(l) of the Small 
     Business Act, as added by section 1131 of this title, which 
     may be transferred to and merged with the appropriations 
     account appropriated under the heading ``salaries and 
     expenses'' under the heading ``Small Business 
     Administration''; and
       (4) $15,000,000, to remain available until September 30, 
     2011, for the cost of guaranteed loans as authorized under 
     section 7(a) of the Small Business Act, including the cost of 
     modifying the loans.
       (b) Definition.--In this section, the term ``cost'' has the 
     meaning given that term in section 502 of the Congressional 
     Budget Act of 1974.

     SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND 
                   PROGRAM ACCOUNT.

       There is appropriated, out of any money in the Treasury not 
     otherwise appropriated, for the fiscal year ending September 
     30, 2010, for an additional amount for the appropriations 
     account appropriated under the heading ``community 
     development financial institutions fund program account'' 
     under the heading ``DEPARTMENT OF THE TREASURY'', 
     $13,500,000, to remain available until September 30, 2012, 
     for the costs of administering guarantees for bonds and notes 
     as authorized under section 114A of the Riegle Community 
     Development and Regulatory Improvement Act of 1994, as added 
     by section 1134 of this Act.

                        TITLE II--TAX PROVISIONS

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``Creating Small Business 
     Jobs Act of 2010''.

                   Subtitle A--Small Business Relief

                  PART I--PROVIDING ACCESS TO CAPITAL

     SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
                   CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Subsection (a) of section 1202 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(4) 100 percent exclusion for stock acquired during 
     certain periods in 2010.--In the case of qualified small 
     business stock acquired after the date of the enactment of 
     the Creating Small Business Jobs Act of 2010 and before 
     January 1, 2011--
       ``(A) paragraph (1) shall be applied by substituting `100 
     percent' for `50 percent',
       ``(B) paragraph (2) shall not apply, and
       ``(C) paragraph (7) of section 57(a) shall not apply.''.
       (b) Conforming Amendment.--Paragraph (3) of section 1202(a) 
     of the Internal Revenue Code of 1986 is amended--
       (1) by inserting ``certain periods in'' before ``2010'' in 
     the heading, and
       (2) by striking ``before January 1, 2011'' and inserting 
     ``on or before the date of the enactment of the Creating 
     Small Business Jobs Act of 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after the date of the enactment 
     of this Act.

     SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES FOR 2010 CARRIED BACK 5 YEARS.

       (a) In General.--Section 39(a) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(4) 5-year carryback for eligible small business 
     credits.--
       ``(A) In general.--Notwithstanding subsection (d), in the 
     case of eligible small business credits determined in the 
     first taxable year of the taxpayer beginning in 2010--
       ``(i) paragraph (1) shall be applied by substituting `each 
     of the 5 taxable years' for `the taxable year' in 
     subparagraph (A) thereof, and
       ``(ii) paragraph (2) shall be applied--

       ``(I) by substituting `25 taxable years' for `21 taxable 
     years' in subparagraph (A) thereof, and
       ``(II) by substituting `24 taxable years' for `20 taxable 
     years' in subparagraph (B) thereof.

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     has the meaning given such term by section 38(c)(5)(B).''.
       (b) Conforming Amendment.--Section 39(a)(3)(A) of the 
     Internal Revenue Code of 1986 is amended by inserting ``or 
     the eligible small business credits'' after ``credit)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009.

     SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES IN 2010 NOT SUBJECT TO ALTERNATIVE 
                   MINIMUM TAX.

       (a) In General.--Section 38(c) of the Internal Revenue Code 
     of 1986 is amended by redesignating paragraph (5) as 
     paragraph (6) and by inserting after paragraph (4) the 
     following new paragraph:
       ``(5) Special rules for eligible small business credits in 
     2010.--
       ``(A) In general.--In the case of eligible small business 
     credits determined in taxable years beginning in 2010--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credits, and
       ``(ii) in applying paragraph (1) to such credits--

[[Page S5560]]

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the eligible 
     small business credits).

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     means the sum of the credits listed in subsection (b) which 
     are determined for the taxable year with respect to an 
     eligible small business. Such credits shall not be taken into 
     account under paragraph (2), (3), or (4).
       ``(C) Eligible small business.--For purposes of this 
     subsection, the term `eligible small business' means, with 
     respect to any taxable year--
       ``(i) a corporation the stock of which is not publicly 
     traded,
       ``(ii) a partnership, or
       ``(iii) a sole proprietorship,
     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.''.
       (b) Technical Amendment.--Section 55(e)(5) of the Internal 
     Revenue Code of 1986 is amended by striking ``38(c)(3)(B)'' 
     and inserting ``38(c)(4)(B)''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009, and to carrybacks of such credits.

     SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 
                   BUILT-IN GAINS TAX.

       (a) In General.--Subparagraph (B) of section 1374(d)(7) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) Special rules for 2009, 2010, and 2011.--No tax shall 
     be imposed on the net recognized built-in gain of an S 
     corporation--
       ``(i) in the case of any taxable year beginning in 2009 or 
     2010, if the 7th taxable year in the recognition period 
     preceded such taxable year, or
       ``(ii) in the case of any taxable year beginning in 2011, 
     if the 5th year in the recognition period preceded such 
     taxable year.
     The preceding sentence shall be applied separately with 
     respect to any asset to which paragraph (8) applies.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                    PART II--ENCOURAGING INVESTMENT

     SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; 
                   CERTAIN REAL PROPERTY TREATED AS SECTION 179 
                   PROPERTY.

       (a) Increased Limitations.--Subsection (b) of section 179 
     of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``shall not exceed'' and all that follows 
     in paragraph (1) and inserting ``shall not exceed--
       ``(A) $250,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $500,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $25,000 in the case of taxable years beginning after 
     2011.'', and
       (2) by striking ``exceeds'' and all that follows in 
     paragraph (2) and inserting ``exceeds--
       ``(A) $800,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $2,000,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $200,000 in the case of taxable years beginning after 
     2011.''.
       (b) Inclusion of Certain Real Property.--Section 179 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subsection:
       ``(f) Special Rules for Qualified Real Property.--
       ``(1) In general.--If a taxpayer elects the application of 
     this subsection for any taxable year beginning in 2010 or 
     2011, the term `section 179 property' shall include any 
     qualified real property which is--
       ``(A) of a character subject to an allowance for 
     depreciation,
       ``(B) acquired by purchase for use in the active conduct of 
     a trade or business, and
       ``(C) not described in the last sentence of subsection 
     (d)(1).
       ``(2) Qualified real property.--For purposes of this 
     subsection, the term `qualified real property' means--
       ``(A) qualified leasehold improvement property described in 
     section 168(e)(6),
       ``(B) qualified restaurant property described in section 
     168(e)(7) (without regard to the dates specified in 
     subparagraph (A)(i) thereof), and
       ``(C) qualified retail improvement property described in 
     section 168(e)(8) (without regard to subparagraph (E) 
     thereof).
       ``(3) Limitation.--For purposes of applying the limitation 
     under subsection (b)(1)(B), not more than $250,000 of the 
     aggregate cost which is taken into account under subsection 
     (a) for any taxable year may be attributable to qualified 
     real property.
       ``(4) Carryover limitation.--
       ``(A) In general.--Notwithstanding subsection (b)(3)(B), no 
     amount attributable to qualified real property may be carried 
     over to a taxable year beginning after 2011.
       ``(B) Treatment of disallowed amounts.--Except as provided 
     in subparagraph (C), to the extent that any amount is not 
     allowed to be carried over to a taxable year beginning after 
     2011 by reason of subparagraph (A), this title shall be 
     applied as if no election under this section had been made 
     with respect to such amount.
       ``(C) Amounts carried over from 2010.--If subparagraph (B) 
     applies to any amount (or portion of an amount) which is 
     carried over from a taxable year other than the taxpayer's 
     last taxable year beginning in 2011, such amount (or portion 
     of an amount) shall be treated for purposes of this title as 
     attributable to property placed in service on the first day 
     of the taxpayer's last taxable year beginning in 2011.
       ``(D) Allocation of amounts.--For purposes of applying this 
     paragraph and subsection (b)(3)(B) to any taxable year, the 
     amount which is disallowed under subsection (b)(3)(A) for 
     such taxable year which is attributed to qualified real 
     property shall be the amount which bears the same ratio to 
     the total amount so disallowed as--
       ``(i) the aggregate amount attributable to qualified real 
     property placed in service during such taxable year, 
     increased by the portion of any amount carried over to such 
     taxable year from a prior taxable year which is attributable 
     to such property, bears to
       ``(ii) the total amount of section 179 property placed in 
     service during such taxable year, increased by the aggregate 
     amount carried over to such taxable year from any prior 
     taxable year.

     For purposes of the preceding sentence, only section 179 
     property with respect to which an election was made under 
     subsection (c)(1) (determined without regard to subparagraph 
     (B) of this paragraph) shall be taken into account.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years beginning after such date.

     SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT 
                   OF THE BASIS OF CERTAIN QUALIFIED PROPERTY.

       (a) In General.--Paragraph (2) of section 168(k) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``January 1, 2011'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2012'', and
       (2) by striking ``January 1, 2010'' each place it appears 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``January 1, 2010'' and inserting ``January 1, 2011''.
       (2) The heading for clause (ii) of section 168(k)(2)(B) of 
     such Code is amended by striking ``Pre-january 1, 2010'' and 
     inserting ``Pre-january 1, 2011''.
       (3) Subparagraph (D) of section 168(k)(4) of such Code is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     a comma, and by adding at the end the following new clauses:
       ``(iv) `January 1, 2011' shall be substituted for `January 
     1, 2012' in subparagraph (A)(iv) thereof, and
       ``(v) `January 1, 2010' shall be substituted for `January 
     1, 2011' each place it appears in subparagraph (A) 
     thereof.''.
       (4) Subparagraph (B) of section 168(l)(5) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (5) Subparagraph (C) of section 168(n)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (6) Subparagraph (D) of section 1400L(b)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (7) Subparagraph (B) of section 1400N(d)(3) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years beginning after such date.

                  PART III--PROMOTING ENTREPRENEURSHIP

     SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-
                   UP EXPENDITURES IN 2010.

       (a) Start-up Expenditures.--Subsection (b) of section 195 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new paragraph:
       ``(3) Special rule for taxable years beginning in 2010.--In 
     the case of a taxable year beginning in 2010, paragraph 
     (1)(A)(ii) shall be applied--
       ``(A) by substituting `$10,000' for `$5,000', and
       ``(B) by substituting `$60,000' for `$50,000'.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED 
                   STATES TRADE REPRESENTATIVE TO DEVELOP MARKET 
                   ACCESS OPPORTUNITIES FOR UNITED STATES SMALL- 
                   AND MEDIUM-SIZED BUSINESSES AND TO ENFORCE 
                   TRADE AGREEMENTS.

       (a) In General.--There are authorized to be appropriated to 
     the Office of the United States Trade Representative 
     $5,230,000, to remain available until expended, for--
       (1) analyzing and developing opportunities for businesses 
     in the United States to access the markets of foreign 
     countries; and
       (2) enforcing trade agreements to which the United States 
     is a party.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated under subsection (a), the 
     United States Trade Representative shall--

[[Page S5561]]

       (1) give preference to those initiatives that the United 
     States Trade Representative determines will create or sustain 
     the greatest number of jobs in the United States or result in 
     the greatest benefit to the economy of the United States; and
       (2) consider the needs of small- and medium-sized 
     businesses in the United States with respect to--
       (A) accessing the markets of foreign countries; and
       (B) the enforcement of trade agreements to which the United 
     States is a party.

               PART IV--PROMOTING SMALL BUSINESS FAIRNESS

     SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE 
                   REPORTABLE TRANSACTIONS BASED ON RESULTING TAX 
                   BENEFITS.

       (a) In General.--Subsection (b) of section 6707A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the amount of the penalty under subsection (a) 
     with respect to any reportable transaction shall be 75 
     percent of the decrease in tax shown on the return as a 
     result of such transaction (or which would have resulted from 
     such transaction if such transaction were respected for 
     Federal tax purposes).
       ``(2) Maximum penalty.--The amount of the penalty under 
     subsection (a) with respect to any reportable transaction 
     shall not exceed--
       ``(A) in the case of a listed transaction, $200,000 
     ($100,000 in the case of a natural person), or
       ``(B) in the case of any other reportable transaction, 
     $50,000 ($10,000 in the case of a natural person).
       ``(3) Minimum penalty.--The amount of the penalty under 
     subsection (a) with respect to any transaction shall not be 
     less than $10,000 ($5,000 in the case of a natural 
     person).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after December 31, 2006.

     SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING 
                   SELF-EMPLOYMENT TAXES IN 2010.

       (a) In General.--Paragraph (4) of section 162(l) of the 
     Internal Revenue Code of 1986 is amended by inserting ``for 
     taxable years beginning before January 1, 2010, or after 
     December 31, 2010'' before the period.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                     Subtitle B--Revenue Provisions

                      PART I--REDUCING THE TAX GAP

     SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE 
                   PAYMENTS.

       (a) In General.--Section 6041 of the Internal Revenue Code 
     of 1986, as amended by section 9006 of the Patient Protection 
     and Affordable Care Act, is amended by redesignating 
     subsections (h) and (i) as subsections (i) and (j), 
     respectively, and by inserting after subsection (g) the 
     following new subsection:
       ``(h) Treatment of Rental Property Expense Payments.--
       ``(1) In general.--Solely for purposes of subsection (a) 
     and except as provided in paragraph (2), a person receiving 
     rental income from real estate shall be considered to be 
     engaged in a trade or business of renting property.
       ``(2) Exceptions.--Paragraph (1) shall not apply to--
       ``(A) any individual, including any individual who is an 
     active member of the uniformed services or an employee of the 
     intelligence community (as defined in section 
     121(d)(9)(C)(iv)), if substantially all rental income is 
     derived from renting the principal residence (within the 
     meaning of section 121) of such individual on a temporary 
     basis,
       ``(B) any individual who receives rental income of not more 
     than the minimal amount, as determined under regulations 
     prescribed by the Secretary, and
       ``(C) any other individual for whom the requirements of 
     this section would cause hardship, as determined under 
     regulations prescribed by the Secretary.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to payments made after December 31, 2010.

     SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.

       (a) Failure To File Correct Information Returns.--
       (1) In general.--Subsections (a)(1), (b)(1)(A), and 
     (b)(2)(A) of section 6721 of the Internal Revenue Code of 
     1986 are each amended by striking ``$50'' and inserting 
     ``$100''.
       (2) Aggregate annual limitation.--Subsections (a)(1), 
     (d)(1)(A), and (e)(3)(A) of section 6721 of such Code are 
     each amended by striking ``$250,000'' and inserting 
     ``$1,500,000''.
       (b) Reduction Where Correction Within 30 Days.--
       (1) In general.--Subparagraph (A) of section 6721(b)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$15'' and inserting ``$30''.
       (2) Aggregate annual limitation.--Subsections (b)(1)(B) and 
     (d)(1)(B) of section 6721 of such Code are each amended by 
     striking ``$75,000'' and inserting ``$250,000''.
       (c) Reduction Where Correction on or Before August 1.--
       (1) In general.--Subparagraph (A) of section 6721(b)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$30'' and inserting ``$60''.
       (2) Aggregate annual limitation.--Subsections (b)(2)(B) and 
     (d)(1)(C) of section 6721 of such Code are each amended by 
     striking ``$150,000'' and inserting ``$500,000''.
       (d) Aggregate Annual Limitations for Persons With Gross 
     Receipts of Not More Than $5,000,000.--
       (1) In general.--Paragraph (1) of section 6721(d) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``$100,000'' in subparagraph (A) and 
     inserting ``$500,000'',
       (B) by striking ``$25,000'' in subparagraph (B) and 
     inserting ``$75,000'', and
       (C) by striking ``$50,000'' in subparagraph (C) and 
     inserting ``$200,000''.
       (2) Technical amendment.--Paragraph (1) of section 6721(d) 
     of such Code is amended by striking ``such taxable year'' and 
     inserting ``such calendar year''.
       (e) Penalty in Case of Intentional Disregard.--Paragraph 
     (2) of section 6721(e) of the Internal Revenue Code of 1986 
     is amended by striking ``$100'' and inserting ``$250''.
       (f) Adjustment for Inflation.--Section 6721 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d) (other than paragraph (2)(A) thereof), and (e) shall 
     be increased by such dollar amount multiplied by the cost-of-
     living adjustment determined under section 1(f)(3) determined 
     by substituting `calendar year 2011' for `calendar year 1992' 
     in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (g) Failure to Furnish Correct Payee Statements.--Section 
     6722 of the Internal Revenue Code of 1986 is amended to read 
     as follows:

     ``SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATEMENTS.

       ``(a) Imposition of Penalty.--
       ``(1) General rule.--In the case of each failure described 
     in paragraph (2) by any person with respect to a payee 
     statement, such person shall pay a penalty of $100 for each 
     statement with respect to which such a failure occurs, but 
     the total amount imposed on such person for all such failures 
     during any calendar year shall not exceed $1,500,000.
       ``(2) Failures subject to penalty.--For purposes of 
     paragraph (1), the failures described in this paragraph are--
       ``(A) any failure to furnish a payee statement on or before 
     the date prescribed therefor to the person to whom such 
     statement is required to be furnished, and
       ``(B) any failure to include all of the information 
     required to be shown on a payee statement or the inclusion of 
     incorrect information.
       ``(b) Reduction Where Correction in Specified Period.--
       ``(1) Correction within 30 days.--If any failure described 
     in subsection (a)(2) is corrected on or before the day 30 
     days after the required filing date--
       ``(A) the penalty imposed by subsection (a) shall be $30 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during any calendar year which are so corrected 
     shall not exceed $250,000.
       ``(2) Failures corrected on or before august 1.--If any 
     failure described in subsection (a)(2) is corrected after the 
     30th day referred to in paragraph (1) but on or before August 
     1 of the calendar year in which the required filing date 
     occurs--
       ``(A) the penalty imposed by subsection (a) shall be $60 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during the calendar year which are so corrected 
     shall not exceed $500,000.
       ``(c) Exception for De Minimis Failures.--
       ``(1) In general.--If--
       ``(A) a payee statement is furnished to the person to whom 
     such statement is required to be furnished,
       ``(B) there is a failure described in subsection (a)(2)(B) 
     (determined after the application of section 6724(a)) with 
     respect to such statement, and
       ``(C) such failure is corrected on or before August 1 of 
     the calendar year in which the required filing date occurs,
     for purposes of this section, such statement shall be treated 
     as having been furnished with all of the correct required 
     information.
       ``(2) Limitation.--The number of payee statements to which 
     paragraph (1) applies for any calendar year shall not exceed 
     the greater of--
       ``(A) 10, or
       ``(B) one-half of 1 percent of the total number of payee 
     statements required to be filed by the person during the 
     calendar year.
       ``(d) Lower Limitations for Persons With Gross Receipts of 
     Not More Than $5,000,000.--
       ``(1) In general.--If any person meets the gross receipts 
     test of paragraph (2) with respect to any calendar year, with 
     respect to failures during such calendar year--
       ``(A) subsection (a)(1) shall be applied by substituting 
     `$500,000' for `$1,500,000',
       ``(B) subsection (b)(1)(B) shall be applied by substituting 
     `$75,000' for `$250,000', and

[[Page S5562]]

       ``(C) subsection (b)(2)(B) shall be applied by substituting 
     `$200,000' for `$500,000'.
       ``(2) Gross receipts test.--A person meets the gross 
     receipts test of this paragraph if such person meets the 
     gross receipts test of section 6721(d)(2).
       ``(e) Penalty in Case of Intentional Disregard.--If 1 or 
     more failures to which subsection (a) applies are due to 
     intentional disregard of the requirement to furnish a payee 
     statement (or the correct information reporting requirement), 
     then, with respect to each such failure--
       ``(1) subsections (b), (c), and (d) shall not apply,
       ``(2) the penalty imposed under subsection (a)(1) shall be 
     $250, or, if greater--
       ``(A) in the case of a payee statement other than a 
     statement required under section 6045(b), 6041A(e) (in 
     respect of a return required under section 6041A(b)), 
     6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of the 
     aggregate amount of the items required to be reported 
     correctly, or
       ``(B) in the case of a payee statement required under 
     section 6045(b), 6050K(b), or 6050L(c), 5 percent of the 
     aggregate amount of the items required to be reported 
     correctly, and
       ``(3) in the case of any penalty determined under paragraph 
     (2)--
       ``(A) the $1,500,000 limitation under subsection (a) shall 
     not apply, and
       ``(B) such penalty shall not be taken into account in 
     applying such limitation to penalties not determined under 
     paragraph (2).
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d)(1), and (e) shall be increased by such dollar amount 
     multiplied by the cost-of-living adjustment determined under 
     section 1(f)(3) determined by substituting `calendar year 
     2011' for `calendar year 1992' in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply with respect to information returns required to 
     be filed on or after January 1, 2011.

     SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER 
                   ENFORCEMENT ACTIONS.

       (a) In General.--The Commissioner of Internal Revenue, in 
     consultation with the Secretary of the Treasury, shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate an 
     annual report on the penalties assessed by the Internal 
     Revenue Service during the preceding year under each of the 
     following provisions of the Internal Revenue Code of 1986:
       (1) Section 6662A (relating to accuracy-related penalty on 
     understatements with respect to reportable transactions).
       (2) Section 6700(a) (relating to promoting abusive tax 
     shelters).
       (3) Section 6707 (relating to failure to furnish 
     information regarding reportable transactions).
       (4) Section 6707A (relating to failure to include 
     reportable transaction information with return).
       (5) Section 6708 (relating to failure to maintain lists of 
     advisees with respect to reportable transactions).
       (b) Additional Information.--The report required under 
     subsection (a) shall also include information on the 
     following with respect to each year:
       (1) Any action taken under section 330(b) of title 31, 
     United States Code, with respect to any reportable 
     transaction (as defined in section 6707A(c) of the Internal 
     Revenue Code of 1986).
       (2) Any extension of the time for assessment of tax 
     enforced, or assessment of any amount under such an 
     extension, under paragraph (10) of section 6501(c) of the 
     Internal Revenue Code of 1986.
       (c) Date of Report.--The first report required under 
     subsection (a) shall be submitted not later than December 31, 
     2010.

     SEC. 2104. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS 
                   RELATING TO PROPERTY.

       (a) In General.--Section 6331(h)(3) of the Internal Revenue 
     Code of 1986 is amended by striking ``goods or services'' and 
     inserting ``property, goods, or services''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to levies issued after the date of the enactment 
     of this Act.

     SEC. 2105. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES 
                   OF CERTAIN FEDERAL CONTRACTORS.

       (a) In General.--Subsection (f) of section 6330 of the 
     Internal Revenue Code of 1986 is amended by striking ``or'' 
     at the end of paragraph (2), by inserting ``or'' at the end 
     of paragraph (3), and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) the Secretary has served a Federal contractor 
     levy,''.
       (b) Federal Contractor Levy.--Subsection (h) of section 
     6330 of the Internal Revenue Code of 1986 is amended--
       (1) by striking all that precedes ``any levy in connection 
     with the collection'' and inserting the following:
       ``(h) Definitions Related to Exceptions.--For purposes of 
     subsection (f)--
       ``(1) Disqualified employment tax levy.--A disqualified 
     employment tax levy is''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Federal contractor levy.--A Federal contractor levy 
     is any levy if the person whose property is subject to the 
     levy (or any predecessor thereof) is a Federal contractor.''.
       (c) Conforming Amendment.--The heading of subsection (f) of 
     section 6330 of the Internal Revenue Code of 1986 is amended 
     by striking ``Jeopardy and State Refund Collection'' and 
     inserting ``Exceptions''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to levies issued after the date of the enactment 
     of this Act.

     SEC. 2106. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC 
                   PAYMENTS.

       (a) In General.--Section 6657 of the Internal Revenue Code 
     of 1986 is amended--
       (1) by striking ``If any check or money order in payment of 
     any amount'' and inserting ``If any instrument in payment, by 
     any commercially acceptable means, of any amount'', and
       (2) by striking ``such check'' each place it appears and 
     inserting ``such instrument''.
       (b) Effective Dates.--The amendments made by this section 
     shall apply to instruments tendered after the date of the 
     enactment of this Act.

               PART II--PROMOTING RETIREMENT PREPARATION

     SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS 
                   ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH 
                   CONTRIBUTIONS.

       (a) In General.--Section 402A(e)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following:
       ``(C) an eligible deferred compensation plan (as defined in 
     section 457(b)) of an eligible employer described in section 
     457(e)(1)(A).''.
       (b) Elective Deferrals.--Section 402A(e)(2) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(2) Elective deferral.--The term `elective deferral' 
     means--
       ``(A) any elective deferral described in subparagraph (A) 
     or (C) of section 402(g)(3), and
       ``(B) any elective deferral of compensation by an 
     individual under an eligible deferred compensation plan (as 
     defined in section 457(b)) of an eligible employer described 
     in section 457(e)(1)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO 
                   DESIGNATED ROTH ACCOUNTS.

       (a) In General.--Section 402A(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(4) Taxable rollovers to designated roth accounts.--
       ``(A) In general.--Notwithstanding sections 402(c), 
     403(b)(8), and 457(e)(16), in the case of any distribution to 
     which this paragraph applies--
       ``(i) there shall be included in gross income any amount 
     which would be includible were it not part of a qualified 
     rollover contribution,
       ``(ii) section 72(t) shall not apply, and
       ``(iii) unless the taxpayer elects not to have this clause 
     apply, any amount required to be included in gross income for 
     any taxable year beginning in 2010 by reason of this 
     paragraph shall be so included ratably over the 2-taxable-
     year period beginning with the first taxable year beginning 
     in 2011.

     Any election under clause (iii) for any distributions during 
     a taxable year may not be changed after the due date for such 
     taxable year.
       ``(B) Distributions to which paragraph applies.--In the 
     case of an applicable retirement plan which includes a 
     qualified Roth contribution program, this paragraph shall 
     apply to a distribution from such plan other than from a 
     designated Roth account which is contributed in a qualified 
     rollover contribution (within the meaning of section 408A(e)) 
     to the designated Roth account maintained under such plan for 
     the benefit of the individual to whom the distribution is 
     made.
       ``(C) Coordination with limit.--Any distribution to which 
     this paragraph applies shall not be taken into account for 
     purposes of paragraph (1).
       ``(D) Other rules.--The rules of subparagraphs (D), (E), 
     and (F) of section 408A(d)(3) (as in effect for taxable years 
     beginning after 2009) shall apply for purposes of this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions after the date of the enactment 
     of this Act.

                 PART III--CLOSING UNINTENDED LOOPHOLES

     SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL 
                   PRODUCER CREDIT.

       (a) In General.--Clause (iii) of section 40(b)(6)(E) of the 
     Internal Revenue Code of 1986, as added by the Health Care 
     and Education Reconciliation Act of 2010, is amended--
       (1) by striking ``or'' at the end of subclause (I),

[[Page S5563]]

       (2) by striking the period at the end of subclause (II) and 
     inserting ``, or'',
       (3) by adding at the end the following new subclause:

       ``(III) such fuel has an acid number greater than 25.'', 
     and

       (4) by striking ``unprocessed'' in the heading and 
     inserting ``certain''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuels sold or used on or after January 1, 
     2010.

         PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

     SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under paragraph (2) of section 561 of the 
     Hiring Incentives to Restore Employment Act in effect on the 
     date of the enactment of this Act is increased by 36 
     percentage points.

                   TITLE III--SMALL BUSINESS LENDING

                Subtitle A--Small Business Lending Fund

     SEC. 3101. PURPOSE.

       The purpose of this subtitle is to address the ongoing 
     effects of the financial crisis on small businesses by 
     providing temporary authority to the Secretary of the 
     Treasury to make capital investments in eligible institutions 
     in order to increase the availability of credit for small 
     businesses.

     SEC. 3102. DEFINITIONS.

       For purposes of this subtitle:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the meaning given 
     such term under section 3(q) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(q)).
       (3) Bank holding company.--The term ``bank holding 
     company'' has the meaning given such term under section 
     2(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841(2)(a)(1)).
       (4) Call report.--The term ``call report'' means--
       (A) reports of Condition and Income submitted to the Office 
     of the Comptroller of the Currency, the Board of Governors of 
     the Federal Reserve System, and the Federal Deposit Insurance 
     Corporation;
       (B) the Office of Thrift Supervision Thrift Financial 
     Report;
       (C) any report that is designated by the Office of the 
     Comptroller of the Currency, the Board of Governors of the 
     Federal Reserve System, the Federal Deposit Insurance 
     Corporation, or the Office of Thrift Supervision, as 
     applicable, as a successor to any report referred to in 
     subparagraph (A) or (B);
       (D) reports of Condition and Income as designated through 
     guidance developed by the Secretary, in consultation with the 
     Director of the Community Development Financial Institutions 
     Fund; and
       (E) with respect to an eligible institution for which no 
     report exists that is described under subparagraph (A), (B), 
     (C), or (D), such other report or set of information as the 
     Secretary, in consultation with the Administrator of the 
     Small Business Administration, may prescribe.
       (5) CDCI.--The term ``CDCI'' means the Community 
     Development Capital Initiative created by the Secretary under 
     the Troubled Asset Relief Program established by the 
     Emergency Economic Stabilization Act of 2008.
       (6) CDCI investment.--The term ``CDCI investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CDCI that has not been repaid.
       (7) CDFI; community development financial institution.--The 
     terms ``CDFI'' and ``community development financial 
     institution'' have the meaning given the term ``community 
     development financial institution'' under the Riegle 
     Community Development and Regulatory Improvement Act of 1994.
       (8) CDLF; community development loan fund.--The terms 
     ``CDLF'' and ``community development loan fund'' mean any 
     entity that--
       (A) is certified by the Department of the Treasury as a 
     community development financial institution loan fund;
       (B) is exempt from taxation under the Internal Revenue Code 
     of 1986; and
       (C) had assets less than or equal to $10,000,000,000 as of 
     the end of the fourth quarter of calendar year 2009.
       (9) CPP.--The term ``CPP'' means the Capital Purchase 
     Program created by the Secretary under the Troubled Asset 
     Relief Program established by the Emergency Economic 
     Stabilization Act of 2008.
       (10) CPP investment.--The term ``CPP investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CPP that has not been repaid.
       (11) Eligible institution.--The term ``eligible 
     institution'' means--
       (A) any insured depository institution, which--
       (i) is not controlled by a bank holding company or savings 
     and loan holding company that is also an eligible 
     institution;
       (ii) has total assets of equal to or less than 
     $10,000,000,000, as reported in the call report of the 
     insured depository institution as of the end of the fourth 
     quarter of calendar year 2009; and
       (iii) is not directly or indirectly controlled by any 
     company or other entity that has total consolidated assets of 
     more than $10,000,000,000, as so reported;
       (B) any bank holding company which has total consolidated 
     assets of equal to or less than $10,000,000,000, as reported 
     in the call report of the bank holding company as of the end 
     of the fourth quarter of calendar year 2009;
       (C) any savings and loan holding company which has total 
     consolidated assets of equal to or less than $10,000,000,000, 
     as reported in the call report of the savings and loan 
     holding company as of the end of the fourth quarter of 
     calendar year 2009; and
       (D) any community development financial institution loan 
     fund which has total assets of equal to or less than 
     $10,000,000,000, as reported in audited financial statements 
     for the fiscal year of the community development financial 
     institution loan fund that ends in calendar year 2009.
       (12) Fund.--The term ``Fund'' means the Small Business 
     Lending Fund established under section 3103(a)(1).
       (13) Insured depository institution.--The term ``insured 
     depository institution'' has the meaning given such term 
     under section 3(c)(2) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1813(c)(2)).
       (14) Minority-owned and women-owned business.--The terms 
     ``minority-owned business'' and ``women-owned business'' 
     shall have the meaning given the terms ``minority-owned 
     business'' and ``women's business'', respectively, under 
     section 21A(r)(4) of the Federal Home Loan Bank Act (12 
     U.S.C. 1441A(r)(4)).
       (15) Program.--The term ``Program'' means the Small 
     Business Lending Fund Program authorized under section 
     3103(a)(2).
       (16) Savings and loan holding company.--The term ``savings 
     and loan holding company'' has the meaning given such term 
     under section 10(a)(1)(D) of the Home Owners' Loan Act (12 
     U.S.C. 1467a(a)(1)(D)).
       (17) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (18) Small business lending.--
       (A) In general.--The term ``small business lending'' means 
     lending, as defined by and reported in an eligible 
     institutions' quarterly call report, where each loan 
     comprising such lending is one of the following types:
       (i) Commercial and industrial loans.
       (ii) Owner-occupied nonfarm, nonresidential real estate 
     loans.
       (iii) Loans to finance agricultural production and other 
     loans to farmers.
       (iv) Loans secured by farmland.
       (B) Exclusion.--No loan that has an original amount greater 
     than $10,000,000 or that goes to a business with more than 
     $50,000,000 in revenues shall be included in the measure.
       (C) Treatment of holding companies.--In the case of 
     eligible institutions that are bank holding companies or 
     savings and loan holding companies having one or more insured 
     depository institution subsidiaries, small business lending 
     shall be measured based on the combined small business 
     lending reported in the call report of the insured depository 
     institution subsidiaries.
       (19) Veteran-owned business.--
       (A) The term ``veteran-owned business'' means a business--
       (i) more than 50 percent of the ownership or control of 
     which is held by 1 or more veterans;
       (ii) more than 50 percent of the net profit or loss of 
     which accrues to 1 or more veterans; and
       (iii) a significant percentage of senior management 
     positions of which are held by veterans.
       (B) For purposes of this paragraph, the term ``veteran'' 
     has the meaning given such term in section 101(2) of title 
     38, United States Code.

     SEC. 3103. SMALL BUSINESS LENDING FUND.

       (a) Fund and Program.--
       (1) Fund established.--There is established in the Treasury 
     of the United States a fund to be known as the ``Small 
     Business Lending Fund'', which shall be administered by the 
     Secretary.
       (2) Programs authorized.--The Secretary is authorized to 
     establish the Small Business Lending Fund Program for using 
     the Fund consistent with this subtitle.
       (b) Use of Fund.--
       (1) In general.--Subject to paragraph (2), the Fund shall 
     be available to the Secretary, without further appropriation 
     or fiscal year limitation, for the costs of purchases 
     (including commitments to purchase), and modifications of 
     such purchases, of preferred stock and other financial 
     instruments from eligible institutions on such terms and 
     conditions as are determined by the Secretary in accordance 
     with this subtitle. For purposes of this paragraph and with 
     respect to an eligible institution, the term ``other 
     financial instruments'' shall include only debt instruments 
     for which such eligible institution is fully liable or equity 
     equivalent capital of the eligible institution. Such debt 
     instruments may be subordinated to the claims of other 
     creditors of the eligible institution.

[[Page S5564]]

       (2) Maximum purchase limit.--The aggregate amount of 
     purchases (and commitments to purchase) made pursuant to 
     paragraph (1) may not exceed $30,000,000,000.
       (3) Proceeds used to pay down public debt.--All funds 
     received by the Secretary in connection with purchases made 
     pursuant to paragraph (1), including interest payments, 
     dividend payments, and proceeds from the sale of any 
     financial instrument, shall be paid into the general fund of 
     the Treasury for reduction of the public debt.
       (4) Limitation on purchases from cdlfs.--
       (A) In general.--Not more than 1 percent of the maximum 
     purchase limit of the Program, pursuant to paragraph (2), may 
     be used to make purchases from community development loan 
     funds.
       (B) Eligibility standards.--The Secretary, in consultation 
     with the Community Development Financial Institutions Fund, 
     shall develop eligibility criteria to determine the financial 
     ability of a CDLF to participate in the Program and repay the 
     investment. Such criteria shall include the following:
       (i) Ratio of net assets to total assets is at least 20 
     percent.
       (ii) Ratio of loan loss reserves to loans and leases 90 
     days or more delinquent (including loans sold with full 
     recourse) is at least 30 percent.
       (iii) Positive net income measured on a 3-year rolling 
     average.
       (iv) Operating liquidity ratio of at least 1.0 for the 4 
     most recent quarters and for one or both of the two preceding 
     years.
       (v) Ratio of loans and leases 90 days or more delinquent 
     (including loans sold with full recourse) to total equity 
     plus loan loss reserves is less than 40 percent.
       (C) Requirement to submit audited financial statements.--
     CDLFs participating in the Program shall submit audited 
     financial statements to the Secretary, have a clean audit 
     opinion, and have at least 3 years of operating experience.
       (c) Credits to the Fund.--There shall be credited to the 
     Fund amounts made available pursuant to section 3108, to the 
     extent provided by appropriations Acts.
       (d) Terms.--
       (1) Application.--
       (A) Institutions with assets of $1,000,000,000 or less.--
     Eligible institutions having total assets equal to or less 
     than $1,000,000,000, as reported in a call report as of the 
     end of the fourth quarter of calendar year 2009, may apply to 
     receive a capital investment from the Fund in an amount not 
     exceeding 5 percent of risk-weighted assets, as reported in 
     the call report immediately preceding the date of 
     application, less the amount of any CDCI investment and any 
     CPP investment.
       (B) Institutions with assets of more than $1,000,000,000 
     and less than or equal to $10,000,000,000.--Eligible 
     institutions having total assets of more than $1,000,000,000 
     but less than $10,000,000,000, as of the end of the fourth 
     quarter of calendar year 2009, may apply to receive a capital 
     investment from the Fund in an amount not exceeding 3 percent 
     of risk-weighted assets, as reported in the call report 
     immediately preceding the date of application, less the 
     amount of any CDCI investment and any CPP investment.
       (C) Treatment of holding companies.--In the case of an 
     eligible institution that is a bank holding company or a 
     savings and loan holding company having one or more insured 
     depository institution subsidiaries, total assets shall be 
     measured based on the combined total assets reported in the 
     call report of the insured depository institution 
     subsidiaries as of the end of the fourth quarter of calendar 
     year 2009 and risk-weighted assets shall be measured based on 
     the combined risk-weighted assets of the insured depository 
     institution subsidiaries as reported in the call report 
     immediately preceding the date of application.
       (D) Treatment of applicants that are institutions 
     controlled by holding companies.--If an eligible institution 
     that applies to receive a capital investment under the 
     Program is under the control of a bank holding company or a 
     savings and loan holding company, then the Secretary may use 
     the Fund to purchase preferred stock or other financial 
     instruments from the top-tier bank holding company or savings 
     and loan holding company of such eligible institution, as 
     applicable. For purposes of this subparagraph, the term 
     ``control'' with respect to a bank holding company shall have 
     the same meaning as in section 2(a)(2) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841(2)(a)(2)). For purposes 
     of this subparagraph, the term ``control'' with respect to a 
     savings and loan holding company shall have the same meaning 
     as in 10(a)(2) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(a)(2)).
       (E) Requirement to provide a small business lending plan.--
     At the time that an applicant submits an application to the 
     Secretary for a capital investment under the Program, the 
     applicant shall deliver to the appropriate Federal banking 
     agency, and, for applicants that are State-chartered banks, 
     to the appropriate State banking regulator, a small business 
     lending plan describing how the applicant's business strategy 
     and operating goals will allow it to address the needs of 
     small businesses in the areas it serves, as well as a plan to 
     provide linguistically and culturally appropriate outreach, 
     where appropriate. In the case of eligible institutions that 
     are community development loan funds, this plan shall be 
     submitted to the Secretary. This plan shall be confidential 
     supervisory information.
       (F) Treatment of applicants that are community development 
     loan funds.--Eligible institutions that are community 
     development loan funds may apply to receive a capital 
     investment from the Fund in an amount not exceeding 5 percent 
     of total assets, as reported in the audited financial 
     statements for the fiscal year of the eligible institution 
     that ends in calendar year 2009.
       (2) Consultation with regulators.--For each eligible 
     institution that applies to receive a capital investment 
     under the Program, the Secretary shall--
       (A) consult with the appropriate Federal banking agency or, 
     in the case of an eligible institution that is a non-
     depository community development financial institution, the 
     Community Development Financial Institution Fund, for the 
     eligible institution to determine whether the eligible 
     institution may receive such capital investment;
       (B) in the case of an eligible institution that is a State-
     chartered bank, consider any views received from the State 
     banking regulator of the State of the eligible institution 
     regarding the financial condition of the eligible 
     institution; and
       (C) in the case of a community development financial 
     institution loan fund, consult with the Community Development 
     Financial Institution Fund.
       (3) Ineligibility of institutions on fdic problem bank 
     list.--
       (A) In general.--An eligible institution may not receive 
     any capital investment under the Program if--
       (i) such institution is on the FDIC problem bank list; or
       (ii) such institution has been removed from the FDIC 
     problem bank list for less than 90 days.
       (B) Construction.--Nothing in subparagraph (A) shall be 
     construed as limiting the discretion of the Secretary to deny 
     the application of an eligible institution that is not on the 
     FDIC problem bank list.
       (C) Fdic problem bank list defined.--For purposes of this 
     subparagraph, the term ``FDIC problem bank list'' means the 
     list of institutions with a current rating of 4 or 5 under 
     the Uniform Financial Institutions Rating System, or such 
     other list designated by the Federal Deposit Insurance 
     Corporation.
       (4) Incentives to lend.--
       (A) Requirements on preferred stock and other financial 
     instruments.--Any preferred stock or other financial 
     instrument issued to Treasury by an eligible institution 
     receiving a capital investment under the Program shall 
     provide that--
       (i) the rate at which dividends or interest are payable 
     shall be 5 percent per annum initially;
       (ii) within the first 2 years after the date of the capital 
     investment under the Program, the rate may be adjusted based 
     on the amount of an eligible institution's small business 
     lending. Changes in the amount of small business lending 
     shall be measured against the average amount of small 
     business lending reported by the eligible institution in its 
     call reports for the 4 full quarters immediately preceding 
     the date of enactment of this Act, minus adjustments from 
     each quarterly balance in respect of--

       (I) net loan charge offs with respect to small business 
     lending; and
       (II) gains realized by the eligible institution resulting 
     from mergers, acquisitions or purchases of loans after 
     origination and syndication; which adjustments shall be 
     determined in accordance with guidance promulgated by the 
     Secretary; and

       (iii) during any calendar quarter during the initial 2-year 
     period referred to in clause (ii), an institution's rate 
     shall be adjusted to reflect the following schedule, based on 
     that institution's change in the amount of small business 
     lending relative to the baseline--

       (I) if the amount of small business lending has increased 
     by less than 2.5 percent, the dividend or interest rate shall 
     be 5 percent;
       (II) if the amount of small business lending has increased 
     by 2.5 percent or greater, but by less than 5.0 percent, the 
     dividend or interest rate shall be 4 percent;
       (III) if the amount of small business lending has increased 
     by 5.0 percent or greater, but by less than 7.5 percent, the 
     dividend or interest rate shall be 3 percent;
       (IV) if the amount of small business lending has increased 
     by 7.5 percent or greater, and but by less than 10.0 percent, 
     the dividend or interest rate shall be 2 percent; or
       (V) if the amount of small business lending has increased 
     by 10 percent or greater, the dividend or interest rate shall 
     be 1 percent.

       (B) Basis of initial rate.--The initial dividend or 
     interest rate shall be based on call report data published in 
     the quarter immediately preceding the date of the capital 
     investment under the Program.
       (C) Timing of rate adjustments.--Any rate adjustment shall 
     occur in the calendar quarter following the publication of 
     call report data, such that the rate based on call report 
     data from any one calendar quarter, which is published in the 
     first following calendar quarter, shall be adjusted in that 
     first following calendar quarter and payable in the second 
     following quarter.
       (D) Rate following initial 2-year period.--Generally, the 
     rate based on call report data from the eighth calendar 
     quarter after the date of the capital investment under the 
     Program shall be payable until the expiration of the 4\1/2\-
     year period that begins on the date of the investment. In the 
     case where the amount of small business lending has remained 
     the same or decreased relative to the institution's baseline 
     in the eighth

[[Page S5565]]

     quarter after the date of the capital investment under the 
     Program, the rate shall be 7 percent until the expiration of 
     the 4\1/2\-year period that begins on the date of the 
     investment.
       (E) Rate following initial 4\1/2\ -year period.--The 
     dividend or interest rate paid on any preferred stock or 
     other financial instrument issued by an eligible institution 
     that receives a capital investment under the Program shall 
     increase to 9 percent at the end of the 4\1/2\-year period 
     that begins on the date of the capital investment under the 
     Program.
       (F) Limitation on rate reductions with respect to certain 
     amount.--The reduction in the dividend or interest rate 
     payable to Treasury by any eligible institution shall be 
     limited such that the rate reduction shall not apply to a 
     dollar amount of the investment made by Treasury that is 
     greater than the dollar amount increase in the amount of 
     small business lending realized under this program. The 
     Secretary may issue guidelines that will apply to new capital 
     investments limiting the amount of capital available to 
     eligible institutions consistent with this limitation.
       (G) Rate adjustments for s corporation.--Before making a 
     capital investment in an eligible institution that is an S 
     corporation or a corporation organized on a mutual basis, the 
     Secretary may adjust the dividend or interest rate on the 
     financial instrument to be issued to the Secretary, from the 
     dividend or interest rate that would apply under 
     subparagraphs (A) through (F), to take into account any 
     differential tax treatment of securities issued by such 
     eligible institution. For purpose of this subparagraph, the 
     term ``S corporation'' has the same meaning as in section 
     1361(a) of the Internal Revenue Code of 1986.
       (H) Repayment deadline.--The capital investment received by 
     an eligible institution under the Program shall be evidenced 
     by preferred stock or other financial instrument that--
       (i) includes, as a term and condition, that the capital 
     investment will--

       (I) be repaid not later than the end of the 10-year period 
     beginning on the date of the capital investment under the 
     Program; or
       (II) at the end of such 10-year period, be subject to such 
     additional terms as the Secretary shall prescribe, which 
     shall include a requirement that the stock or instrument 
     shall carry the highest dividend or interest rate payable; 
     and

       (ii) provides that the term and condition described under 
     clause (i) shall not apply if the application of that term 
     and condition would adversely affect the capital treatment of 
     the stock or financial instrument under current or successor 
     applicable capital provisions compared to a capital 
     instrument with identical terms other than the term and 
     condition described under clause (i).
       (I) Requirements on financial instruments issued by a 
     community development financial institution loan fund.--Any 
     equity equivalent capital issued to the Treasury by a 
     community development loan fund receiving a capital 
     investment under the Program shall provide that the rate at 
     which interest is payable shall be 2 percent per annum for 8 
     years. After 8 years, the rate at which interest is payable 
     shall be 9 percent.
       (5) Additional incentives to repay.--The Secretary may, by 
     regulation or guidance issued under section 3104(9), 
     establish repayment incentives in addition to the incentive 
     in paragraph (4)(E) that will apply to new capital 
     investments in a manner that the Secretary determines to be 
     consistent with the purposes of this subtitle.
       (6) Capital purchase program refinance.--
       (A) In general.--The Secretary shall, in a manner that the 
     Secretary determines to be consistent with the purposes of 
     this subtitle, issue regulations and other guidance to permit 
     eligible institutions to refinance securities issued to 
     Treasury under the CDCI and the CPP for securities to be 
     issued under the Program.
       (B) Prohibition on participation by non-paying cpp 
     participants.--Subparagraph (A) shall not apply to any 
     eligible institution that has missed more than one dividend 
     payment due under the CPP. For purposes of this subparagraph, 
     a CPP dividend payment that is submitted within 60 days of 
     the due date of such payment shall not be considered a missed 
     dividend payment.
       (7) Outreach to minorities, women, and veterans.--The 
     Secretary shall require eligible institutions receiving 
     capital investments under the Program to provide 
     linguistically and culturally appropriate outreach and 
     advertising in the applicant pool describing the availability 
     and application process of receiving loans from the eligible 
     institution that are made possible by the Program through the 
     use of print, radio, television or electronic media outlets 
     which target organizations, trade associations, and 
     individuals that--
       (A) represent or work within or are members of minority 
     communities;
       (B) represent or work with or are women; and
       (C) represent or work with or are veterans.
       (8) Additional terms.--The Secretary may, by regulation or 
     guidance issued under section 3104(9), make modifications 
     that will apply to new capital investments in order to manage 
     risks associated with the administration of the Fund in a 
     manner consistent with the purposes of this subtitle.
       (9) Minimum underwriting standards.--The appropriate 
     Federal banking agency for an eligible institution that 
     receives funds under the Program shall within 60 days issue 
     guidance regarding prudent underwriting standards that must 
     be used for loans made by the eligible institution using such 
     funds..

     SEC. 3104. ADDITIONAL AUTHORITIES OF THE SECRETARY.

       The Secretary may take such actions as the Secretary deems 
     necessary to carry out the authorities in this subtitle, 
     including, without limitation, the following:
       (1) The Secretary may use the services of any agency or 
     instrumentality of the United States or component thereof on 
     a reimbursable basis, and any such agency or instrumentality 
     or component thereof is authorized to provide services as 
     requested by the Secretary using all authorities vested in or 
     delegated to that agency, instrumentality, or component.
       (2) The Secretary may enter into contracts, including 
     contracts for services authorized by section 3109 of title 5, 
     United States Code.
       (3) The Secretary may designate any bank, savings 
     association, trust company, security broker or dealer, asset 
     manager, or investment adviser as a financial agent of the 
     Federal Government and such institution shall perform all 
     such reasonable duties related to this subtitle as financial 
     agent of the Federal Government as may be required. The 
     Secretary shall have authority to amend existing agreements 
     with financial agents, entered into during the 2-year period 
     before the date of enactment of this Act, to perform 
     reasonable duties related to this subtitle.
       (4) The Secretary may exercise any rights received in 
     connection with any preferred stock or other financial 
     instruments or assets purchased or acquired pursuant to the 
     authorities granted under this subtitle.
       (5) Subject to section 3103(b)(3), the Secretary may manage 
     any assets purchased under this subtitle, including revenues 
     and portfolio risks therefrom.
       (6) The Secretary may sell, dispose of, transfer, exchange 
     or enter into securities loans, repurchase transactions, or 
     other financial transactions in regard to, any preferred 
     stock or other financial instrument or asset purchased or 
     acquired under this subtitle, upon terms and conditions and 
     at a price determined by the Secretary.
       (7) The Secretary may manage or prohibit conflicts of 
     interest that may arise in connection with the administration 
     and execution of the authorities provided under this 
     subtitle.
       (8) The Secretary may establish and use vehicles, subject 
     to supervision by the Secretary, to purchase, hold, and sell 
     preferred stock or other financial instruments and issue 
     obligations.
       (9) The Secretary may, in consultation with the 
     Administrator of the Small Business Administration, issue 
     such regulations and other guidance as may be necessary or 
     appropriate to define terms or carry out the authorities or 
     purposes of this subtitle.

     SEC. 3105. CONSIDERATIONS.

       In exercising the authorities granted in this subtitle, the 
     Secretary shall take into consideration--
       (1) increasing the availability of credit for small 
     businesses;
       (2) providing funding to minority-owned eligible 
     institutions and other eligible institutions that serve small 
     businesses that are minority-, veteran-, and women-owned and 
     that also serve low- and moderate-income, minority, and other 
     underserved or rural communities;
       (3) protecting and increasing American jobs;
       (4) increasing the opportunity for small business 
     development in areas with high unemployment rates that exceed 
     the national average;
       (5) ensuring that all eligible institutions may apply to 
     participate in the program established under this subtitle, 
     without discrimination based on geography;
       (6) providing transparency with respect to use of funds 
     provided under this subtitle;
       (7) minimizing the cost to taxpayers of exercising the 
     authorities;
       (8) promoting and engaging in financial education to would-
     be borrowers; and
       (9) providing funding to eligible institutions that serve 
     small businesses directly affected by the discharge of oil 
     arising from the explosion on and sinking of the mobile 
     offshore drilling unit Deepwater Horizon and small businesses 
     in communities that have suffered negative economic effects 
     as a result of that discharge with particular consideration 
     to States along the coast of the Gulf of Mexico.

     SEC. 3106. REPORTS.

       The Secretary shall provide to the appropriate committees 
     of Congress--
       (1) within 7 days of the end of each month commencing with 
     the first month in which transactions are made under the 
     Program, a written report describing all of the transactions 
     made during the reporting period pursuant to the authorities 
     granted under this subtitle;
       (2) after the end of March and the end of September, 
     commencing September 30, 2010, a written report on all 
     projected costs and liabilities, all operating expenses, 
     including compensation for financial agents, and all 
     transactions made by the Fund, which shall include 
     participating institutions and amounts each institution has 
     received under the Program; and
       (3) within 7 days of the end of each calendar quarter 
     commencing with the first calendar quarter in which 
     transactions are

[[Page S5566]]

     made under the Program, a written report detailing how 
     eligible institutions participating in the Program have used 
     the funds such institutions received under the Program.

     SEC. 3107. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the Program through 
     the Office of Small Business Lending Fund Program Oversight 
     established under subsection (b).
       (b) Office of Small Business Lending Fund Program 
     Oversight.--
       (1) Establishment.--There is hereby established within the 
     Office of the Inspector General of the Department of the 
     Treasury a new office to be named the ``Office of Small 
     Business Lending Fund Program Oversight'' to provide 
     oversight of the Program.
       (2) Leadership.--The Inspector General shall appoint a 
     Special Deputy Inspector General for SBLF Program Oversight 
     to lead the Office, with commensurate staff, who shall report 
     directly to the Inspector General and who shall be 
     responsible for the performance of all auditing and 
     investigative activities relating to the Program.
       (3) Reporting.--
       (A) In general.--The Inspector General shall issue a report 
     no less than two times a year to the Congress and the 
     Secretary devoted to the oversight provided by the Office, 
     including any recommendations for improvements to the 
     Program.
       (B) Recommendations.--With respect to any deficiencies 
     identified in a report under subparagraph (A), the Secretary 
     shall either--
       (i) take actions to address such deficiencies; or
       (ii) certify to the appropriate committees of Congress that 
     no action is necessary or appropriate.
       (4) Coordination.--The Inspector General, in maximizing the 
     effectiveness of the Office, shall work with other Offices of 
     Inspector General, as appropriate, to minimize duplication of 
     effort and ensure comprehensive oversight of the Program.
       (5) Termination.--The Office shall terminate at the end of 
     the 6-month period beginning on the date on which all capital 
     investments are repaid under the Program or the date on which 
     the Secretary determines that any remaining capital 
     investments will not be repaid.
       (6) Definitions.--For purposes of this subsection:
       (A) Office.--The term ``Office'' means the Office of Small 
     Business Lending Fund Program Oversight established under 
     paragraph (1).
       (B) Inspector general.--The term ``Inspector General'' 
     means the Inspector General of the Department of the 
     Treasury.
       (c) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (d) Required Certifications.--
       (1) Eligible institution certification.--Each eligible 
     institution that participates in the Program must certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in 31 U.S.C. 5312(a)(2) 
     and (c)(1)(A), to implement reasonable procedures to verify 
     the identity of any person seeking to open an account, to the 
     extent reasonable and practicable, maintain records of the 
     information used to verify the person's identity, and 
     determine whether the person appears on any lists of known or 
     suspected terrorists or terrorist organizations provided to 
     the financial institution by any government agency.
       (2) Loan recipients.--With respect to funds received by an 
     eligible institution under the Program, any business 
     receiving a loan from the eligible institution using such 
     funds after the date of the enactment of this Act shall 
     certify to such eligible institution that the principals of 
     such business have not been convicted of a sex offense 
     against a minor (as such terms are defined in section 111 of 
     the Sex Offender Registration and Notification Act (42 U.S.C. 
     16911)).
       (e) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

     SEC. 3108. CREDIT REFORM; FUNDING.

       (a) Credit Reform.--The cost of purchases of preferred 
     stock and other financial instruments made as capital 
     investments under this subtitle shall be determined as 
     provided under the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661 et seq.).
       (b) Funds Made Available.--There are hereby appropriated, 
     out of funds in the Treasury not otherwise appropriated, such 
     sums as may be necessary to pay the costs of $30,000,000,000 
     of capital investments in eligible institutions, including 
     the costs of modifying such investments, and reasonable costs 
     of administering the program of making, holding, managing, 
     and selling the capital investments.

     SEC. 3109. TERMINATION AND CONTINUATION OF AUTHORITIES.

       (a) Termination of Investment Authority.--The authority to 
     make capital investments in eligible institutions, including 
     commitments to purchase preferred stock or other instruments, 
     provided under this subtitle shall terminate 1 year after the 
     date of enactment of this Act.
       (b) Continuation of Other Authorities.--The authorities of 
     the Secretary under section 3104 shall not be limited by the 
     termination date in subsection (a).

     SEC. 3110. PRESERVATION OF AUTHORITY.

       Nothing in this subtitle may be construed to limit the 
     authority of the Secretary under any other provision of law.

     SEC. 3111. ASSURANCES.

       (a) Small Business Lending Fund Separate From TARP.--The 
     Small Business Lending Fund Program is established as 
     separate and distinct from the Troubled Asset Relief Program 
     established by the Emergency Economic Stabilization Act of 
     2008. An institution shall not, by virtue of a capital 
     investment under the Small Business Lending Fund Program, be 
     considered a recipient of the Troubled Asset Relief Program.
       (b) Change in Law.--If, after a capital investment has been 
     made in an eligible institution under the Program, there is a 
     change in law that modifies the terms of the investment or 
     program in a materially adverse respect for the eligible 
     institution, the eligible institution may, after consultation 
     with the appropriate Federal banking agency for the eligible 
     institution, repay the investment without impediment.

     SEC. 3112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, 
                   VETERAN-OWNED, AND MINORITY-OWNED BUSINESSES.

       (a) Study.--The Secretary shall conduct a study of the 
     impact of the Program on women-owned businesses, veteran-
     owned businesses, and minority-owned businesses.
       (b) Report.--Not later than one year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study conducted pursuant to 
     subsection (a). To the extent possible, the Secretary shall 
     disaggregate the results of such study by ethnic group and 
     gender.
       (c) Information Provided to the Secretary.--Eligible 
     institutions that participate in the Program shall provide 
     the Secretary with such information as the Secretary may 
     require to carry out the study required by this section.

     SEC. 3113. SENSE OF CONGRESS.

       It is the sense of Congress that the Federal Deposit 
     Insurance Corporation and other bank regulators are sending 
     mixed messages to banks regarding regulatory capital 
     requirements and lending standards, which is a contributing 
     cause of decreased small business lending and increased 
     regulatory uncertainty at community banks.

           Subtitle B--State Small Business Credit Initiative

     SEC. 3201. SHORT TITLE.

       This subtitle may be cited as the ``State Small Business 
     Credit Initiative Act of 2010''.

     SEC. 3202. DEFINITIONS.

       In this subtitle, the following definitions shall apply:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency''--
       (A) has the same meaning as in section 3(q) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(q)); and
       (B) includes the National Credit Union Administration Board 
     in the case of any credit union the deposits of which are 
     insured in accordance with the Federal Credit Union Act.
       (3) Enrolled loan.--The term ``enrolled loan'' means a loan 
     made by a financial institution lender that is enrolled by a 
     participating State in an approved State capital access 
     program in accordance with this subtitle.
       (4) Federal contribution.--The term ``Federal 
     contribution'' means the portion of the contribution made by 
     a participating State to, or for the account of, an approved 
     State program that is made with Federal funds allocated to 
     the State by the Secretary under section 3203.
       (5) Financial institution.--The term ``financial 
     institution'' means any insured depository institution, 
     insured credit union, or community development financial 
     institution, as those terms are each defined in section 103 
     of the Riegle Community Development and Regulatory 
     Improvement Act of 1994 (12 U.S.C. 4702)
       (6) Participating state.--The term ``participating State'' 
     means any State that has been approved for participation in 
     the Program under section 3204.
       (7) Program.--The term ``Program'' means the State Small 
     Business Credit Initiative established under this subtitle.

[[Page S5567]]

       (8) Qualifying loan or swap funding facility.--The term 
     ``qualifying loan or swap funding facility'' means a 
     contractual arrangement between a participating State and a 
     private financial entity under which--
       (A) the participating State delivers funds to the entity as 
     collateral;
       (B) the entity provides funding from the arrangement back 
     to the participating State; and
       (C) the full amount of resulting funding from the 
     arrangement, less any fees and other costs of the 
     arrangement, is contributed to, or for the account of, an 
     approved State program.
       (9) Reserve fund.--The term ``reserve fund'' means a fund, 
     established by a participating State, dedicated to a 
     particular financial institution lender, for the purposes 
     of--
       (A) depositing all required premium charges paid by the 
     financial institution lender and by each borrower receiving a 
     loan under an approved State program from that financial 
     institution lender;
       (B) depositing contributions made by the participating 
     State, including State contributions made with Federal 
     contributions; and
       (C) covering losses on enrolled loans by disbursing 
     accumulated funds.
       (10) State.--The term ``State'' means--
       (A) a State of the United States;
       (B) the District of Columbia, the Commonwealth of Puerto 
     Rico, the Commonwealth of Northern Mariana Islands, Guam, 
     American Samoa, and the United States Virgin Islands;
       (C) when designated by a State of the United States, a 
     political subdivision of that State that the Secretary 
     determines has the capacity to participate in the Program; 
     and
       (D) under the circumstances described in section 3204(d), a 
     municipality of a State of the United States to which the 
     Secretary has given a special permission under section 
     3204(d).
       (11) State capital access program.--The term ``State 
     capital access program'' means a program of a State that--
       (A) uses public resources to promote private access to 
     credit; and
       (B) meets the eligibility criteria in section 3205(c).
       (12) State other credit support program.--The term ``State 
     other credit support program''--
       (A) means a program of a State that--
       (i) uses public resources to promote private access to 
     credit;
       (ii) is not a State capital access program; and
       (iii) meets the eligibility criteria in section 3206(c); 
     and
       (B) includes, collateral support programs, loan 
     participation programs, State-run venture capital fund 
     programs, and credit guarantee programs.
       (13) State program.--The term ``State program'' means a 
     State capital access program or a State other credit support 
     program.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.

     SEC. 3203. FEDERAL FUNDS ALLOCATED TO STATES.

       (a) Program Established; Purpose.--There is established the 
     State Small Business Credit Initiative, to be administered by 
     the Secretary. Under the Program, the Secretary shall 
     allocate Federal funds to participating States and make the 
     allocated funds available to the participating States as 
     provided in this section for the uses described in this 
     section.
       (b) Allocation Formula.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall allocate Federal 
     funds to participating States so that each State is eligible 
     to receive an amount equal to the average of the respective 
     amounts that the State--
       (A) would receive under the 2009 allocation, as determined 
     under paragraph (2); and
       (B) would receive under the 2010 allocation, as determined 
     under paragraph (3).
       (2) 2009 allocation formula.--
       (A) In general.--The Secretary shall determine the 2009 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2008 State employment 
     decline bears to the aggregate of the 2008 State employment 
     declines for all States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2008 state employment decline defined.--In this 
     paragraph and with respect to a State, the term ``2008 State 
     employment decline'' means the excess (if any) of--
       (i) the number of individuals employed in such State 
     determined for December 2007; over
       (ii) the number of individuals employed in such State 
     determined for December 2008.
       (3) 2010 allocation formula.--
       (A) In general.--The Secretary shall determine the 2010 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2009 unemployment 
     number bears to the aggregate of the 2009 unemployment 
     numbers for all of the States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2009 unemployment number defined.--In this paragraph 
     and with respect to a State, the term ``2009 unemployment 
     number'' means the number of individuals within such State 
     who were determined to be unemployed by the Bureau of Labor 
     Statistics for December 2009.
       (c) Availability of Allocated Amount.--The amount allocated 
     by the Secretary to each participating State under subsection 
     (b) shall be made available to the State as follows:
       (1) Allocated amount generally to be available to state in 
     one-thirds.--
       (A) In general.--The Secretary shall--
       (i) apportion the participating State's allocated amount 
     into thirds;
       (ii) transfer to the participating State the first \1/3\ 
     when the Secretary approves the State for participation under 
     section 3204; and
       (iii) transfer to the participating State each successive 
     \1/3\ when the State has certified to the Secretary that it 
     has expended, transferred, or obligated 80 percent of the 
     last transferred \1/3\ for Federal contributions to, or for 
     the account of, State programs.
       (B) Authority to withhold pending audit.--The Secretary may 
     withhold the transfer of any successive \1/3\ pending results 
     of a financial audit.
       (C) Inspector general audits.--
       (i) In general.--The Inspector General of the Department of 
     the Treasury shall carry out an audit of the participating 
     State's use of allocated Federal funds transferred to the 
     State.
       (ii) Recoupment of misused transferred funds required.--The 
     allocation agreement between the Secretary and the 
     participating State shall provide that the Secretary shall 
     recoup any allocated Federal funds transferred to the 
     participating State if the results of the an audit include a 
     finding that there was an intentional or reckless misuse of 
     transferred funds by the State.
       (iii) Penalty for misstatement.--Any participating State 
     that is found to have intentionally misstated any report 
     issued to the Secretary under the Program shall be ineligible 
     to receive any additional funds under the Program. Funds that 
     had been allocated or that would otherwise have been 
     allocated to such participating State shall be paid into the 
     general fund of the Treasury for reduction of the public 
     debt.
       (iv) Municipalities.--In this subparagraph, the term 
     ``participating State'' shall include a municipality given 
     special permission to participate in the Program, under 
     section 3204(d).
       (D) Exception.--The Secretary may, in the Secretary's 
     discretion, transfer the full amount of the participating 
     State's allocated amount to the State in a single transfer if 
     the participating State applies to the Secretary for approval 
     to use the full amount of the allocation as collateral for a 
     qualifying loan or swap funding facility.
       (2) Transferred amounts.--Each amount transferred to a 
     participating State under this section shall remain available 
     to the State until used by the State as permitted under 
     paragraph (3).
       (3) Use of transferred funds.--Each participating State may 
     use funds transferred to it under this section only--
       (A) for making Federal contributions to, or for the account 
     of, an approved State program;
       (B) as collateral for a qualifying loan or swap funding 
     facility;
       (C) in the case of the first \1/3\ transferred, for paying 
     administrative costs incurred by the State in implementing an 
     approved State program in an amount not to exceed 5 percent 
     of that first \1/3\; or
       (D) in the case of each successive \1/3\ transferred, for 
     paying administrative costs incurred by the State in 
     implementing an approved State program in an amount not to 
     exceed 3 percent of that successive \1/3\.
       (4) Termination of availability of amounts not transferred 
     within 2 years of participation.--Any portion of a 
     participating State's allocated amount that has not been 
     transferred to the State under this section by the end of the 
     2-year period beginning on the date that the Secretary 
     approves the State for participation may be deemed by the 
     Secretary to be no longer allocated to the State and no 
     longer available to the State and shall be returned to the 
     General Fund of the Treasury.
       (5) Transferred amounts not assistance.--The amounts 
     transferred to a participating State under this section shall 
     not be considered assistance for purposes of subtitle V of 
     title 31, United States Code.
       (6) Definitions.--In this section--
       (A) the term ``allocated amount'' means the total amount of 
     Federal funds allocated by the Secretary under subsection (b) 
     to the participating State; and
       (B) the term ``\1/3\'' means--
       (i) in the case of the first \1/3\ and second \1/3\, an 
     amount equal to 33 percent of a participating State's 
     allocated amount; and
       (ii) in the case of the last \1/3\, an amount equal to 34 
     percent of a participating State's allocated amount.

     SEC. 3204. APPROVING STATES FOR PARTICIPATION.

       (a) Application.--Any State may apply to the Secretary for 
     approval to be a participating State under the Program and to 
     be eligible for an allocation of Federal funds under the 
     Program.
       (b) General Approval Criteria.--The Secretary shall approve 
     a State to be a participating State, if--

[[Page S5568]]

       (1) a specific department, agency, or political subdivision 
     of the State has been designated to implement a State program 
     and participate in the Program;
       (2) all legal actions necessary to enable such designated 
     department, agency, or political subdivision to implement a 
     State program and participate in the Program have been 
     accomplished;
       (3) the State has filed an application with the Secretary 
     for approval of a State capital access program under section 
     3205 or approval as a State other credit support program 
     under section 3206, in each case within the time period 
     provided in the respective section; and
       (4) the State and the Secretary have executed an allocation 
     agreement that--
       (A) conforms to the requirements of this subtitle;
       (B) ensures that the State program complies with such 
     national standards as are established by the Secretary under 
     section 3209(a)(2);
       (C) sets forth internal control, compliance, and reporting 
     requirements as established by the Secretary, and such other 
     terms and conditions necessary to carry out the purposes of 
     this subtitle, including an agreement by the State to allow 
     the Secretary to audit State programs;
       (D) requires that the State program be fully positioned, 
     within 90 days of the State's execution of the allocation 
     agreement with the Secretary, to act on providing the kind of 
     credit support that the State program was established to 
     provide; and
       (E) includes an agreement by the State to deliver to the 
     Secretary, and update annually, a schedule describing how the 
     State intends to apportion among its State programs the 
     Federal funds allocated to the State.
       (c) Contractual Arrangements for Implementation of State 
     Programs.--A State may be approved to be a participating 
     State, and be eligible for an allocation of Federal funds 
     under the Program, if the State has contractual arrangements 
     for the implementation and administration of its State 
     program with--
       (1) an existing, approved State program administered by 
     another State; or
       (2) an authorized agent of, or entity supervised by, the 
     State, including for-profit and not-for-profit entities.
       (d) Special Permission.--
       (1) Circumstances when a municipality may apply directly.--
     If a State does not, within 60 days after the date of 
     enactment of this Act, file with the Secretary a notice of 
     its intent to apply for approval by the Secretary of a State 
     program or within 9 months after the date of enactment of 
     this Act, file with the Secretary a complete application for 
     approval of a State program, the Secretary may grant to 
     municipalities of that State a special permission that will 
     allow them to apply directly to the Secretary without the 
     State for approval to be participating municipalities.
       (2) Timing requirements applicable to municipalities 
     applying directly.--To qualify for the special permission, a 
     municipality of a State shall be required, within 12 months 
     after the date of enactment of this Act, to file with the 
     Secretary a complete application for approval by the 
     Secretary of a State program.
       (3) Notices of intent and applications from more than 1 
     municipality.--A municipality of a State may combine with 1 
     or more other municipalities of that State to file a joint 
     notice of intent to file and a joint application.
       (4) Approval criteria.--The general approval criteria in 
     paragraphs (2) and (4) shall apply.
       (5) Allocation to municipalities.--
       (A) If more than 3.--If more than 3 municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to the 3 
     municipalities with the largest populations.
       (B) If 3 or fewer.--If 3 or fewer municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to each applicant 
     municipality or combination of municipalities.
       (6) Apportionment of allocated amount among participating 
     municipalities.--If the Secretary approves municipalities to 
     be participating municipalities under this subsection, the 
     Secretary shall apportion the full amount of the Federal 
     funds that are allocated to that State to municipalities that 
     are approved under this subsection in amounts proportionate 
     to the population of those municipalities, based on the most 
     recent available decennial census.
       (7) Approving state programs for municipalities.--If the 
     Secretary approves municipalities to be participating 
     municipalities under this subsection, the Secretary shall 
     take into account the additional considerations in section 
     3206(d) in making the determination under section 3205 or 
     3206 that the State program or programs to be implemented by 
     the participating municipalities, including a State capital 
     access program, is eligible for Federal contributions to, or 
     for the account of, the State program.

     SEC. 3205. APPROVING STATE CAPITAL ACCESS PROGRAMS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, State capital access program that 
     meets the eligibility criteria in subsection (c) may apply to 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions to the reserve fund.
       (b) Approval.--The Secretary shall approve such State 
     capital access program as eligible for Federal contributions 
     to the reserve fund if--
       (1) within 60 days after the date of enactment of this Act, 
     the State has filed with the Secretary a notice of intent to 
     apply for approval by the Secretary of a State capital access 
     program;
       (2) within 9 months after the date of enactment of this 
     Act, the State has filed with the Secretary a complete 
     application for approval by the Secretary of a capital access 
     program;
       (3) the State satisfies the requirements of subsections (a) 
     and (b) of section 3204; and
       (4) the State capital access program meets the eligibility 
     criteria in subsection (c).
       (c) Eligibility Criteria for State Capital Access 
     Programs.--For a State capital access program to be approved 
     under this section, that program shall be required to be a 
     program of the State that--
       (1) provides portfolio insurance for business loans based 
     on a separate loan-loss reserve fund for each financial 
     institution;
       (2) requires insurance premiums to be paid by the financial 
     institution lenders and by the business borrowers to the 
     reserve fund to have their loans enrolled in the reserve 
     fund;
       (3) provides for contributions to be made by the State to 
     the reserve fund in amounts at least equal to the sum of the 
     amount of the insurance premium charges paid by the borrower 
     and the financial institution to the reserve fund for any 
     newly enrolled loan; and
       (4) provides its portfolio insurance solely for loans that 
     meet both the following requirements:
       (A) The borrower has 500 employees or less at the time that 
     the loan is enrolled in the Program.
       (B) The loan amount does not exceed $5,000,000.
       (d) Federal Contributions to Approved State Capital Access 
     Programs.--A State capital access program approved under this 
     section will be eligible for receiving Federal contributions 
     to the reserve fund in an amount equal to the sum of the 
     amount of the insurance premium charges paid by the borrowers 
     and by the financial institution to the reserve fund for 
     loans that meet the requirements in subsection (c)(4). A 
     participating State may use the Federal contribution to make 
     its contribution to the reserve fund of an approved State 
     capital access program.
       (e) Minimum Program Requirements for State Capital Access 
     Programs.--The Secretary shall, by regulation or other 
     guidance, prescribe Program requirements that meet the 
     following minimum requirements:
       (1) Experience and capacity.--The participating State shall 
     determine for each financial institution that participates in 
     the State capital access program, after consultation with the 
     appropriate Federal banking agency or, in the case of a 
     financial institution that is a nondepository community 
     development financial institution, the Community Development 
     Financial Institution Fund, that the financial institution 
     has sufficient commercial lending experience and financial 
     and managerial capacity to participate in the approved State 
     capital access program. The determination by the State shall 
     not be reviewable by the Secretary.
       (2) Investment authority.--Subject to applicable State law, 
     the participating State may invest, or cause to be invested, 
     funds held in a reserve fund by establishing a deposit 
     account at the financial institution lender in the name of 
     the participating State. In the event that funds in the 
     reserve fund are not deposited in such an account, such funds 
     shall be invested in a form that the participating State 
     determines is safe and liquid.
       (3) Loan terms and conditions to be determined by 
     agreement.--A loan to be filed for enrollment in an approved 
     State capital access program may be made with such interest 
     rate, fees, and other terms and conditions, and the loan may 
     be enrolled in the approved State capital access program and 
     claims may be filed and paid, as agreed upon by the financial 
     institution lender and the borrower, consistent with 
     applicable law.
       (4) Lender capital at-risk.--A loan to be filed for 
     enrollment in the State capital access program shall require 
     the financial institution lender to have a meaningful amount 
     of its own capital resources at risk in the loan.
       (5) Premium charges minimum and maximum amounts.--The 
     insurance premium charges payable to the reserve fund by the 
     borrower and the financial institution lender shall be 
     prescribed by the financial institution lender, within 
     minimum and maximum limits that require that the sum of the 
     insurance premium charges paid in connection with a loan by 
     the borrower and the financial institution lender may not be 
     less than 2 percent nor more than 7 percent of the amount of 
     the loan enrolled in the approved State capital access 
     program.
       (6) State contributions.--In enrolling a loan in an 
     approved State capital access program, the participating 
     State may make a contribution to the reserve fund to 
     supplement Federal contributions made under this Program.

[[Page S5569]]

       (7) Loan purpose.--
       (A) Particular loan purpose requirements and 
     prohibitions.--In connection with the filing of a loan for 
     enrollment in an approved State capital access program, the 
     financial institution lender--
       (i) shall obtain an assurance from each borrower that--

       (I) the proceeds of the loan will be used for a business 
     purpose;
       (II) the loan will not be used to finance such business 
     activities as the Secretary, by regulation, may proscribe as 
     prohibited loan purposes for enrollment in an approved State 
     capital access program; and
       (III) the borrower is not--

       (aa) an executive officer, director, or principal 
     shareholder of the financial institution lender;
       (bb) a member of the immediate family of an executive 
     officer, director, or principal shareholder of the financial 
     institution lender; or
       (cc) a related interest of any such executive officer, 
     director, principal shareholder, or member of the immediate 
     family;
       (ii) shall provide assurances to the participating State 
     that the loan has not been made in order to place under the 
     protection of the approved State capital access program prior 
     debt that is not covered under the approved State capital 
     access program and that is or was owed by the borrower to the 
     financial institution lender or to an affiliate of the 
     financial institution lender;
       (iii) shall not allow the enrollment of a loan to a 
     borrower that is a refinancing of a loan previously made to 
     that borrower by the financial institution lender or an 
     affiliate of the financial institution lender; and
       (iv) may include additional restrictions on the eligibility 
     of loans or borrowers that are not inconsistent with the 
     provisions and purposes of this subtitle, including 
     compliance with all applicable Federal and State laws, 
     regulations, ordinances, and Executive orders.
       (B) Definitions.--In this paragraph, the terms ``executive 
     officer'', ``director'', ``principal shareholder'', 
     ``immediate family'', and ``related interest'' refer to the 
     same relationship to a financial institution lender as the 
     relationship described in part 215 of title 12 of the Code of 
     Federal Regulations, or any successor to such part.
       (8) Capital access for small businesses in underserved 
     communities.--At the time that a State applies to the 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions, the State shall 
     deliver to the Secretary a report stating how the State plans 
     to use the Federal contributions to the reserve fund to 
     provide access to capital for small businesses in low- and 
     moderate-income, minority, and other underserved communities, 
     including women- and minority-owned small businesses.

     SEC. 3206. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE 
                   CREDIT ACCESS AND GUARANTEE INITIATIVES FOR 
                   SMALL BUSINESSES AND MANUFACTURERS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, credit support program that meets 
     the eligibility criteria in subsection (c) may apply to the 
     Secretary to have the State other credit support program 
     approved as eligible for Federal contributions to, or for the 
     account of, the State program.
       (b) Approval.--The Secretary shall approve such State other 
     credit support program as eligible for Federal contributions 
     to, or for the account of, the program if--
       (1) the Secretary determines that the State satisfies the 
     requirements of paragraphs (1) through (3) of section 
     3205(b);
       (2) the Secretary determines that the State other credit 
     support program meets the eligibility criteria in subsection 
     (c);
       (3) the Secretary determines the State other credit support 
     program to be eligible based on the additional considerations 
     in subsection (d); and
       (4) within 9 months after the date of enactment of this 
     Act, the State has filed with Treasury a complete application 
     for Treasury approval.
       (c) Eligibility Criteria for State Other Credit Support 
     Programs.--For a State other credit support program to be 
     approved under this section, that program shall be required 
     to be a program of the State that--
       (1) can demonstrate that, at a minimum, $1 of public 
     investment by the State program will cause and result in $1 
     of new private credit;
       (2) can demonstrate a reasonable expectation that, when 
     considered with all other State programs of the State, such 
     State programs together have the ability to use amounts of 
     new Federal contributions to, or for the account of, all such 
     programs in the State to cause and result in amounts of new 
     small business lending at least 10 times the new Federal 
     contribution amount;
       (3) for those State other credit support programs that 
     provide their credit support through 1 or more financial 
     institution lenders, requires the financial institution 
     lenders to have a meaningful amount of their own capital 
     resources at risk in their small business lending; and
       (4) uses Federal funds allocated under this subtitle to 
     extend credit support that--
       (A) targets an average borrower size of 500 employees or 
     less;
       (B) does not extend credit support to borrowers that have 
     more than 750 employees;
       (C) targets support towards loans with an average principal 
     amount of $5,000,000 or less; and
       (D) does not extend credit support to loans that exceed a 
     principal amount of $20,000,000.
       (d) Additional Considerations.--In making a determination 
     that a State other credit support program is eligible for 
     Federal contributions to, or for the account of, the State 
     program, the Secretary shall take into account the following 
     additional considerations:
       (1) The anticipated benefits to the State, its businesses, 
     and its residents to be derived from the Federal 
     contributions to, or for the account of, the approved State 
     other credit support program, including the extent to which 
     resulting small business lending will expand economic 
     opportunities.
       (2) The operational capacity, skills, and experience of the 
     management team of the State other credit support program.
       (3) The capacity of the State other credit support program 
     to manage increases in the volume of its small business 
     lending.
       (4) The internal accounting and administrative controls 
     systems of the State other credit support program, and the 
     extent to which they can provide reasonable assurance that 
     funds of the State program are safeguarded against waste, 
     loss, unauthorized use, or misappropriation.
       (5) The soundness of the program design and implementation 
     plan of the State other credit support program.
       (e) Federal Contributions to Approved State Other Credit 
     Support Programs.--A State other credit support program 
     approved under this section will be eligible for receiving 
     Federal contributions to, or for the account of, the State 
     program in an amount consistent with the schedule describing 
     the apportionment of allocated Federal funds among State 
     programs delivered by the State to the Secretary under the 
     allocation agreement.
       (f) Minimum Program Requirements for State Other Credit 
     Support Programs.--
       (1) Fund to prescribe.--The Secretary shall, by regulation 
     or other guidance, prescribe Program requirements for 
     approved State other credit support programs.
       (2) Considerations for fund.--In prescribing minimum 
     Program requirements for approved State other credit support 
     programs, the Secretary shall take into consideration, to the 
     extent the Secretary determines applicable and appropriate, 
     the minimum Program requirements for approved State capital 
     access programs in section 3205(e).

     SEC. 3207. REPORTS.

       (a) Quarterly Use-of-funds Report.--
       (1) In general.--Not later than 30 days after the beginning 
     of each calendar quarter, beginning after the first full 
     calendar quarter to occur after the date the Secretary 
     approves a State for participation, the participating State 
     shall submit to the Secretary a report on the use of Federal 
     funding by the participating State during the previous 
     calendar quarter.
       (2) Report contents.--Each report under this subsection 
     shall--
       (A) indicate the total amount of Federal funding used by 
     the participating State; and
       (B) include a certification by the participating State 
     that--
       (i) the information provided in accordance with 
     subparagraph (A) is accurate;
       (ii) funds continue to be available and legally committed 
     to contributions by the State to, or for the account of, 
     approved State programs, less any amount that has been 
     contributed by the State to, or for the account of, approved 
     State programs subsequent to the State being approved for 
     participation in the Program; and
       (iii) the participating State is implementing its approved 
     State program or programs in accordance with this subtitle 
     and regulations issued under section 3210.
       (b) Annual Report.--Not later than March 31 of each year, 
     beginning March 31, 2011, each participating State shall 
     submit to the Secretary an annual report that shall include 
     the following information:
       (1) The number of borrowers that received new loans 
     originated under the approved State program or programs after 
     the State program was approved as eligible for Federal 
     contributions.
       (2) The total amount of such new loans.
       (3) Breakdowns by industry type, loan size, annual sales, 
     and number of employees of the borrowers that received such 
     new loans.
       (4) The zip code of each borrower that received such a new 
     loan.
       (5) Such other data as the Secretary, in the Secretary's 
     sole discretion, may require to carry out the purposes of the 
     Program.
       (c) Form.--The reports and data filed under subsections (a) 
     and (b) shall be in such form as the Secretary, in the 
     Secretary's sole discretion, may require.
       (d) Termination of Reporting Requirements.--The requirement 
     to submit reports under subsections (a) and (b) shall 
     terminate for a participating State with the submission of 
     the completed reports due on the first March 31 to occur 
     after 5 complete 12-month periods after the State is approved 
     by the Secretary to be a participating State.

     SEC. 3208. REMEDIES FOR STATE PROGRAM TERMINATION OR 
                   FAILURES.

       (a) Remedies.--
       (1) In general.--If any of the events listed in paragraph 
     (2) occur, the Secretary, in the Secretary's discretion, 
     may--
       (A) reduce the amount of Federal funds allocated to the 
     State under the Program; or
       (B) terminate any further transfers of allocated amounts 
     that have not yet been transferred to the State.

[[Page S5570]]

       (2) Causal events.--The events referred to in paragraph (1) 
     are--
       (A) termination by a participating State of its 
     participation in the Program;
       (B) failure on the part of a participating State to submit 
     complete reports under section 3207 on a timely basis; or
       (C) noncompliance by the State with the terms of the 
     allocation agreement between the Secretary and the State.
       (b) Deallocated Amounts To Be Reallocated.--If, after 13 
     months, any portion of the amount of Federal funds allocated 
     to a participating State is deemed by the Secretary to be no 
     longer allocated to the State after actions taken by the 
     Secretary under subsection (a)(1), the Secretary shall 
     reallocate that portion among the participating States, 
     excluding the State whose allocated funds were deemed to be 
     no longer allocated, as provided in section 3203(b).

     SEC. 3209. IMPLEMENTATION AND ADMINISTRATION.

       (a) General Authorities and Duties.--The Secretary shall--
       (1) consult with the Administrator of the Small Business 
     Administration and the appropriate Federal banking agencies 
     on the administration of the Program;
       (2) establish minimum national standards for approved State 
     programs;
       (3) provide technical assistance to States for starting 
     State programs and generally disseminate best practices;
       (4) manage, administer, and perform necessary program 
     integrity functions for the Program; and
       (5) ensure adequate oversight of the approved State 
     programs, including oversight of the cash flows, performance, 
     and compliance of each approved State program.
       (b) Appropriations.--There is hereby appropriated to the 
     Secretary, out of funds in the Treasury not otherwise 
     appropriated, $900,000,000 to carry out the Program, 
     including to pay reasonable costs of administering the 
     Program.
       (c) Termination of Secretary's Program Administration 
     Functions.--The authorities and duties of the Secretary to 
     implement and administer the Program shall terminate at the 
     end of the 7-year period beginning on the date of enactment 
     of this Act.
       (d) Expedited Contracting.--During the 1-year period 
     beginning on the date of enactment of this Act, the Secretary 
     may enter into contracts without regard to any other 
     provision of law regarding public contracts, for purposes of 
     carrying out this subtitle.

     SEC. 3210. REGULATIONS.

       The Secretary, in consultation with the Administrator of 
     the Small Business Administration, shall issue such 
     regulations and other guidance as the Secretary determines 
     necessary or appropriate to implement this subtitle including 
     to define terms, to establish compliance and reporting 
     requirements, and such other terms and conditions necessary 
     to carry out the purposes of this subtitle.

     SEC. 3211. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the use of funds made 
     available under the Program.
       (b) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (c) Required Certification.--
       (1) Financial institutions certification.--With respect to 
     funds received by a participating State under the Program, 
     any financial institution that receives a loan, a loan 
     guarantee, or other financial assistance using such funds 
     after the date of the enactment of this Act shall certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in section 5312 (a)(2) 
     and (c)(1)(A) of title 31, United States Code, to implement 
     reasonable procedures to verify the identity of any person 
     seeking to open an account, to the extent reasonable and 
     practicable, maintain records of the information used to 
     verify the person's identity, and determine whether the 
     person appears on any lists of known or suspected terrorists 
     or terrorist organizations provided to the financial 
     institution by any government agency.
       (2) Sex offense certification.--With respect to funds 
     received by a participating State under the Program, any 
     private entity that receives a loan, a loan guarantee, or 
     other financial assistance using such funds after the date of 
     the enactment of this Act shall certify to the participating 
     State that the principals of such entity have not been 
     convicted of a sex offense against a minor (as such terms are 
     defined in section 111 of the Sex Offender Registration and 
     Notification Act (42 U.S.C. 16911)).
       (d) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

                     TITLE IV--BUDGETARY PROVISIONS

     SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
                                 ______
                                 
  SA 4403. Mr. REID (for himself, Mr. Baucus, and Ms. Landrieu) 
proposed an amendment to amendment SA 4402 proposed by Mr. Reid (for 
Mr. Baucus) to the bill H.R. 5297, to create the Small Business Lending 
Fund Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; as follows:

       Strike all after the first word, insert the following:

     1. SHORT TITLE.

       This Act may be cited as the ``Small Business Jobs Act of 
     2010''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                       TITLE I--SMALL BUSINESSES

Sec. 1001. Definitions.

              Subtitle A--Small Business Access to Credit

Sec. 1101. Short title.

         PART I--Next Steps for Main Street Credit Availability

Sec. 1111. Section 7(a) business loans.
Sec. 1112. Maximum loan amounts under 504 program.
Sec. 1113. Maximum loan limits under microloan program.
Sec. 1114. Temporary fee reductions.
Sec. 1115. New Markets Venture Capital company investment limitations.
Sec. 1116. Alternative size standards.
Sec. 1117. Sale of 7(a) loans in secondary market.
Sec. 1118. Online lending platform.
Sec. 1119. SBA Secondary Market Guarantee Authority.

               PART II--Small Business Access to Capital

Sec. 1122. Low-interest refinancing under the local development 
              business loan program.

                        PART III--Other Matters

Sec. 1131. Small business intermediary lending pilot program.
Sec. 1132. Public policy goals.
Sec. 1133. Draft floor plan pilot program extension.
Sec. 1134. Guarantees for bonds and notes issued for community or 
              economic development purposes.
Sec. 1135. Temporary express loan enhancement.
Sec. 1136. Prohibition on using TARP funds or tax in creases.

             Subtitle B--Small Business Trade and Exporting

Sec. 1201. Short title.
Sec. 1202. Definitions.
Sec. 1203. Office of International Trade.
Sec. 1204. Duties of the Office of International Trade.
Sec. 1205. Export assistance centers.
Sec. 1206. International trade finance programs.
Sec. 1207. State Trade and Export Promotion Grant Program.
Sec. 1208. Rural export promotion.
Sec. 1209. International trade cooperation by small business 
              development centers.

                 Subtitle C--Small Business Contracting

                       PART I--Contract Bundling

Sec. 1311. Small Business Act.
Sec. 1312. Leadership and oversight.
Sec. 1313. Consolidation of contract requirements.
Sec. 1314. Small business teams pilot program.

                   PART II--Subcontracting Integrity

Sec. 1321. Subcontracting misrepresentations.
Sec. 1322. Small business subcontracting improvements.

                     PART III--Acquisition Process

Sec. 1331. Reservation of prime contract awards for small businesses.
Sec. 1332. Micro-purchase guidelines.
Sec. 1333. Agency accountability.
Sec. 1334. Payment of subcontractors.
Sec. 1335. Repeal of Small Business Competitiveness Demonstration 
              Program.

           PART IV--Small Business Size and Status Integrity

Sec. 1341. Policy and presumptions.
Sec. 1342. Annual certification.
Sec. 1343. Training for contracting and enforcement personnel.
Sec. 1344. Updated size standards.
Sec. 1345. Study and report on the mentor-protege program.
Sec. 1346. Contracting goals reports.
Sec. 1347. Small business contracting parity.

[[Page S5571]]

    Subtitle D--Small Business Management and Counseling Assistance

Sec. 1401. Matching requirements under small business programs.
Sec. 1402. Grants for SBDCs.

                 Subtitle E--Disaster Loan Improvement

Sec. 1501. Aquaculture business disaster assistance.

              Subtitle F--Small Business Regulatory Relief

Sec. 1601. Requirements providing for more detailed analyses.
Sec. 1602. Office of advocacy.

                 Subtitle G--Appropriations Provisions

Sec. 1701. Salaries and expenses.
Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program 
              account.

                        TITLE II--TAX PROVISIONS

Sec. 2001. Short title.

                   Subtitle A--Small Business Relief

                  PART I--Providing Access to Capital

Sec. 2011. Temporary exclusion of 100 percent of gain on certain small 
              business stock.
Sec. 2012. General business credits of eligible small businesses for 
              2010 carried back 5 years.
Sec. 2013. General business credits of eligible small businesses in 
              2010 not subject to alternative minimum tax.
Sec. 2014. Temporary reduction in recognition period for built-in gains 
              tax.

                    PART II--Encouraging Investment

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain 
              real property treated as section 179 property.
Sec. 2022. Additional first-year depreciation for 50 percent of the 
              basis of certain qualified property.

                  PART III--Promoting Entrepreneurship

Sec. 2031. Increase in amount allowed as deduction for start-up 
              expenditures in 2010.
Sec. 2032. Authorization of appropriations for the United States Trade 
              Representative to develop market access opportunities for 
              United States small- and medium-sized businesses and to 
              enforce trade agreements.

               PART IV--Promoting Small Business Fairness

Sec. 2041. Limitation on penalty for failure to disclose reportable 
              transactions based on resulting tax benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
              employment taxes in 2010.

                     Subtitle B--Revenue Provisions

                      PART I--Reducing the Tax Gap

Sec. 2101. Information reporting for rental property expense payments.
Sec. 2102. Increase in information return penalties.
Sec. 2103. Report on tax shelter penalties and certain other 
              enforcement actions.
Sec. 2104. Application of levy to payments to Federal vendors relating 
              to property.
Sec. 2105. Application of continuous levy to tax liabilities of certain 
              Federal contractors.
Sec. 2106. Application of bad checks penalty to electronic payments.

               PART II--Promoting Retirement Preparation

Sec. 2111. Participants in government section 457 plans allowed to 
              treat elective deferrals as Roth contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth 
              accounts.

                 PART III--Closing Unintended Loopholes

Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer 
              credit.

         PART IV--Time for Payment of Corporate Estimated Taxes

Sec. 2131. Time for payment of corporate estimated taxes.

                   TITLE III--SMALL BUSINESS LENDING

                Subtitle A--Small Business Lending Fund

Sec. 3101. Purpose.
Sec. 3102. Definitions.
Sec. 3103. Small business lending fund.
Sec. 3104. Additional authorities of the Secretary.
Sec. 3105. Considerations.
Sec. 3106. Reports.
Sec. 3107. Oversight and audits.
Sec. 3108. Credit reform; funding.
Sec. 3109. Termination and continuation of authorities.
Sec. 3110. Preservation of authority.
Sec. 3111. Assurances.
Sec. 3112. Study and report with respect to women-owned, veteran-owned, 
              and minority-owned businesses.
Sec. 3113. Sense of congress.

           Subtitle B--State Small Business Credit Initiative

Sec. 3201. Short title.
Sec. 3202. Definitions.
Sec. 3203. Federal funds allocated to States.
Sec. 3204. Approving States for participation.
Sec. 3205. Approving State capital access programs.
Sec. 3206. Approving collateral support and other innovative credit 
              access and guarantee initiatives for small businesses and 
              manufacturers.
Sec. 3207. Reports.
Sec. 3208. Remedies for State program termination or failures.
Sec. 3209. Implementation and administration.
Sec. 3210. Regulations.
Sec. 3211. Oversight and audits.

                     TITLE IV--BUDGETARY PROVISIONS

Sec. 4001. Determination of budgetary effects.

                       TITLE I--SMALL BUSINESSES

     SEC. 1001. DEFINITIONS.

       In this title--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the term ``small business concern'' has the meaning 
     given that term under section 3 of the Small Business Act (15 
     U.S.C. 632).

              Subtitle A--Small Business Access to Credit

     SEC. 1101. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Job 
     Creation and Access to Capital Act of 2010''.

         PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

     SEC. 1111. SECTION 7(A) BUSINESS LOANS.

       (a) Amendment.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``75 percent'' and inserting 
     ``90 percent''; and
       (B) in clause (ii), by striking ``85 percent'' and 
     inserting ``90 percent''; and
       (2) in paragraph (3)(A), by striking ``$1,500,000 (or if 
     the gross loan amount would exceed $2,000,000'' and inserting 
     ``$4,500,000 (or if the gross loan amount would exceed 
     $5,000,000''.
       (b) Prospective Repeal.--Effective January 1, 2011, section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``90 percent'' and inserting 
     ``75 percent''; and
       (B) in clause (ii), by striking ``90 percent'' and 
     inserting ``85 percent''; and
       (2) in paragraph (3)(A), by striking ``$4,500,000'' and 
     inserting ``$3,750,000''.

     SEC. 1112. 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 
     ``$5,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$5,000,000'';
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000'';
       (4) in clause (iv), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''; and
       (5) in clause (v), by striking ``$4,000,000'' and inserting 
     ``$5,500,000''.

     SEC. 1113. 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)--
       (A) in subparagraph (C), by striking ``$3,500,000'' and 
     inserting ``$5,000,000''; and
       (B) in subparagraph (E), by striking ``$35,000'' each place 
     that term appears and inserting ``$50,000''; and
       (3) in paragraph (11)(B), by striking ``$35,000'' and 
     inserting ``$50,000''.

     SEC. 1114. TEMPORARY FEE REDUCTIONS.

       Section 501 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5; 123 Stat. 151) is amended by 
     striking ``September 30, 2010'' each place that term appears 
     and inserting ``December 31, 2010''.

     SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT 
                   LIMITATIONS.

       Section 355 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689d) is amended by adding at the end the 
     following:
       ``(e) Investment Limitations.--
       ``(1) Definition.--In this subsection, the term `covered 
     New Markets Venture Capital company' means a New Markets 
     Venture Capital company--
       ``(A) granted final approval by the Administrator under 
     section 354(e) on or after March 1, 2002; and
       ``(B) that has obtained a financing from the Administrator.
       ``(2) Limitation.--Except to the extent approved by the 
     Administrator, a covered New Markets Venture Capital company 
     may not acquire or issue commitments for securities under 
     this title for any single enterprise in an aggregate amount 
     equal to more than 10 percent of the sum of--
       ``(A) the regulatory capital of the covered New Markets 
     Venture Capital company; and
       ``(B) the total amount of leverage projected in the 
     participation agreement of the covered New Markets Venture 
     Capital.''.

     SEC. 1116. ALTERNATIVE SIZE STANDARDS.

       Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
     is amended by adding at the end the following:
       ``(5) Alternative Size Standard.--
       ``(A) In general.--The Administrator shall establish an 
     alternative size standard for applicants for business loans 
     under section 7(a) and applicants for development company

[[Page S5572]]

     loans 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 use of 
     industry standards.
       ``(B) Interim rule.--Until the date on which the 
     alternative size standard established under subparagraph (A) 
     is in effect, an applicant for a business loan under section 
     7(a) or an applicant for a development company loan under 
     title V of the Small Business Investment Act of 1958 may be 
     eligible for such a loan if--
       ``(i) the maximum tangible net worth of the applicant is 
     not more than $15,000,000; and
       ``(ii) the average net income after Federal income taxes 
     (excluding any carry-over losses) of the applicant for the 2 
     full fiscal years before the date of the application is not 
     more than $5,000,000.''.

     SEC. 1117. SALE OF 7(A) LOANS IN SECONDARY MARKET.

       Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) 
     is amended by adding at the end the following:
       ``(6) If the amount of the guaranteed portion of any loan 
     under section 7(a) is more than $500,000, the Administrator 
     shall, upon request of a pool assembler, divide the loan 
     guarantee into increments of $500,000 and 1 increment of any 
     remaining amount less than $500,000, in order to permit the 
     maximum amount of any loan in a pool to be not more than 
     $500,000. Only 1 increment of any loan guarantee divided 
     under this paragraph may be included in the same pool. 
     Increments of loan guarantees to different borrowers that are 
     divided under this paragraph may be included in the same 
     pool.''.

     SEC. 1118. ONLINE LENDING PLATFORM.

       It is the sense of 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 rates of each such lender; and
       (2) allows prospective borrowers to compare rates on loans 
     guaranteed by the Small Business Administration.

     SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.

       Section 503(f) of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 155) is 
     amended by striking ``on the date 2 years after the date of 
     enactment of this section'' and inserting ``2 years after the 
     date of the first sale of a pool of first lien position 504 
     loans guaranteed under this section to a third-party 
     investor''.

               PART II--SMALL BUSINESS ACCESS TO CAPITAL

     SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL 
                   DEVELOPMENT BUSINESS LOAN PROGRAM.

       (a) Refinancing.--Section 502(7) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 696(7)) is amended by 
     adding at the end the following:
       ``(C) Refinancing not involving expansions.--
       ``(i) Definitions.--In this subparagraph--

       ``(I) the term `borrower' means a small business concern 
     that submits an application to a development company for 
     financing under this subparagraph;
       ``(II) the term `eligible fixed asset' means tangible 
     property relating to which the Administrator may provide 
     financing under this section; and
       ``(III) the term `qualified debt' means indebtedness--

       ``(aa) that--
       ``(AA) was incurred not less than 2 years before the date 
     of the application for assistance under this subparagraph;
       ``(BB) is a commercial loan;
       ``(CC) is not subject to a guarantee by a Federal agency;
       ``(DD) the proceeds of which were used to acquire an 
     eligible fixed asset;
       ``(EE) was incurred for the benefit of the small business 
     concern; and
       ``(FF) is collateralized by eligible fixed assets; and
       ``(bb) for which the borrower has been current on all 
     payments for not less than 1 year before the date of the 
     application.
       ``(ii) Authority.--A project that does not involve the 
     expansion of a small business concern may include the 
     refinancing of qualified debt if--

       ``(I) the amount of the financing is not more than 90 
     percent of the value of the collateral for the financing, 
     except that, if the appraised value of the eligible fixed 
     assets serving as collateral for the financing is less than 
     the amount equal to 125 percent of the amount of the 
     financing, the borrower may provide additional cash or other 
     collateral to eliminate any deficiency;
       ``(II) the borrower has been in operation for all of the 2-
     year period ending on the date of the loan; and
       ``(III) for a financing for which the Administrator 
     determines there will be an additional cost attributable to 
     the refinancing of the qualified debt, the borrower agrees to 
     pay a fee in an amount equal to the anticipated additional 
     cost.

       ``(iii) Financing for business expenses.--

       ``(I) Financing for business expenses.--The Administrator 
     may provide financing to a borrower that receives financing 
     that includes a refinancing of qualified debt under clause 
     (ii), in addition to the refinancing under clause (ii), to be 
     used solely for the payment of business expenses.
       ``(II) Application for financing.--An application for 
     financing under subclause (I) shall include--

       ``(aa) a specific description of the expenses for which the 
     additional financing is requested; and
       ``(bb) an itemization of the amount of each expense.

       ``(III) Condition on additional financing.--A borrower may 
     not use any part of the financing under this clause for non-
     business purposes.

       ``(iv) Loans based on jobs.--

       ``(I) Job creation and retention goals.--

       ``(aa) In general.--The Administrator may provide financing 
     under this subparagraph for a borrower that meets the job 
     creation goals under subsection (d) or (e) of section 501.
       ``(bb) Alternate job retention goal.--The Administrator may 
     provide financing under this subparagraph to a borrower that 
     does not meet the goals described in item (aa) in an amount 
     that is not more than the product obtained by multiplying the 
     number of employees of the borrower by $65,000.

       ``(II) Number of employees.--For purposes of subclause (I), 
     the number of employees of a borrower is equal to the sum 
     of--

       ``(aa) the number of full-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; and
       ``(bb) the product obtained by multiplying--
       ``(AA) the number of part-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; by
       ``(BB) the quotient obtained by dividing the average number 
     of hours each part time employee of the borrower works each 
     week by 40.
       ``(v) Nondelegation.--Notwithstanding section 508(e), the 
     Administrator may not permit a premier certified lender to 
     approve or disapprove an application for assistance under 
     this subparagraph.
       ``(vi) Total amount of loans.--The Administrator may 
     provide not more than a total of $7,500,000,000 of financing 
     under this subparagraph for each fiscal year.''.
       (b) Prospective Repeal.--Effective 2 years after the date 
     of enactment of this Act, section 502(7) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended 
     by striking subparagraph (C).
       (c) Technical Correction.--Section 502(2)(A)(i) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 
     696(2)(A)(i)) is amended by striking ``subparagraph (B) or 
     (C)'' and inserting ``clause (ii), (iii), (iv), or (v)''.

                        PART III--OTHER MATTERS

     SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

       (a) In General.--Section 7 of the Small Business Act (15 
     U.S.C. 636) is amended by striking subsection (l) and 
     inserting the following:
       ``(l) Small Business Intermediary Lending Pilot Program.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `eligible intermediary'--
       ``(i) means a private, nonprofit entity that--

       ``(I) seeks or has been awarded a loan from the 
     Administrator to make loans to small business concerns under 
     this subsection; and
       ``(II) has not less than 1 year of experience making loans 
     to startup, newly established, or growing small business 
     concerns; and

       ``(ii) includes--

       ``(I) a private, nonprofit community development 
     corporation;
       ``(II) a consortium of private, nonprofit organizations or 
     nonprofit community development corporations; and
       ``(III) an agency of or nonprofit entity established by a 
     Native American Tribal Government; and

       ``(B) the term `Program' means the small business 
     intermediary lending pilot program established under 
     paragraph (2).
       ``(2) Establishment.--There is established a 3-year small 
     business intermediary lending pilot program, under which the 
     Administrator may make direct loans to eligible 
     intermediaries, for the purpose of making loans to startup, 
     newly established, and growing small business concerns.
       ``(3) Purposes.--The purposes of the Program are--
       ``(A) to assist small business concerns in areas suffering 
     from a lack of credit due to poor economic conditions or 
     changes in the financial market; and
       ``(B) to establish a loan program under which the 
     Administrator may provide loans to eligible intermediaries to 
     enable the eligible intermediaries to provide loans to 
     startup, newly established, and growing small business 
     concerns for working capital, real estate, or the acquisition 
     of materials, supplies, or equipment.
       ``(4) Loans to eligible intermediaries.--
       ``(A) Application.--Each eligible intermediary desiring a 
     loan under this subsection shall submit an application to the 
     Administrator that describes--
       ``(i) the type of small business concerns to be assisted;
       ``(ii) the size and range of loans to be made;
       ``(iii) the interest rate and terms of loans to be made;
       ``(iv) the geographic area to be served and the economic, 
     poverty, and unemployment characteristics of the area;
       ``(v) the status of small business concerns in the area to 
     be served and an analysis of the availability of credit; and
       ``(vi) the qualifications of the applicant to carry out 
     this subsection.

[[Page S5573]]

       ``(B) Loan limits.--No loan may be made to an eligible 
     intermediary under this subsection if the total amount 
     outstanding and committed to the eligible intermediary by the 
     Administrator would, as a result of such loan, exceed 
     $1,000,000 during the participation of the eligible 
     intermediary in the Program.
       ``(C) Loan duration.--Loans made by the Administrator under 
     this subsection shall be for a term of 20 years.
       ``(D) Applicable interest rates.--Loans made by the 
     Administrator to an eligible intermediary under the Program 
     shall bear an annual interest rate equal to 1.00 percent.
       ``(E) Fees; collateral.--The Administrator may not charge 
     any fees or require collateral with respect to any loan made 
     to an eligible intermediary under this subsection.
       ``(F) Delayed payments.--The Administrator shall not 
     require the repayment of principal or interest on a loan made 
     to an eligible intermediary under the Program during the 2-
     year period beginning on the date of the initial disbursement 
     of funds under that loan.
       ``(G) Maximum participants and amounts.--During each of 
     fiscal years 2011, 2012, and 2013, the Administrator may make 
     loans under the Program--
       ``(i) to not more than 20 eligible intermediaries; and
       ``(ii) in a total amount of not more than $20,000,000.
       ``(5) Loans to small business concerns.--
       ``(A) In general.--The Administrator, through an eligible 
     intermediary, shall make loans to startup, newly established, 
     and growing small business concerns for working capital, real 
     estate, and the acquisition of materials, supplies, 
     furniture, fixtures, and equipment.
       ``(B) Maximum loan.--An eligible intermediary may not make 
     a loan under this subsection of more than $200,000 to any 1 
     small business concern.
       ``(C) Applicable interest rates.--A loan made by an 
     eligible intermediary to a small business concern under this 
     subsection, may have a fixed or a variable interest rate, and 
     shall bear an interest rate specified by the eligible 
     intermediary in the application of the eligible intermediary 
     for a loan under this subsection.
       ``(D) Review restrictions.--The Administrator may not 
     review individual loans made by an eligible intermediary to a 
     small business concern before approval of the loan by the 
     eligible intermediary.
       ``(6) Termination.--The authority of the Administrator to 
     make loans under the Program shall terminate 3 years after 
     the date of enactment of the Small Business Job Creation and 
     Access to Capital Act of 2010.''.
       (b) Rulemaking Authority.--Not later than 180 days after 
     the date of enactment of this Act, the Administrator shall 
     issue regulations to carry out section 7(l) of the Small 
     Business Act, as amended by subsection (a).
       (c) Availability of Funds.--Any amounts provided to the 
     Administrator for the purposes of carrying out section 7(l) 
     of the Small Business Act, as amended by subsection (a), 
     shall remain available until expended.

     SEC. 1132. PUBLIC POLICY GOALS.

       Section 501(d)(3) of the Small Business Investment Act of 
     1958 (15 U.S.C. 695(d)(3)) is amended--
       (1) in subparagraph (J), by striking ``or'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``, or''; and
       (3) by adding at the end the following:
       ``(L) reduction of rates of unemployment in labor surplus 
     areas, as such areas are determined by the Secretary of 
     Labor.''.

     SEC. 1133. DRAFT FLOOR PLAN PILOT PROGRAM EXTENSION.

       (a) In General.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) by redesignating paragraph (32), relating to increased 
     veteran participation, as added by section 208 of the 
     Military Reservist and Veteran Small Business Reauthorization 
     and Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 
     631), as paragraph (33); and
       (2) by adding at the end the following:
       ``(34) Dealer floor plan financing program.--
       ``(A) Definition.--In this paragraph, the term `eligible 
     retail good'--
       ``(i) means a good for which a title may be obtained under 
     State law; and
       ``(ii) includes an automobile, recreational vehicle, boat, 
     and manufactured home.
       ``(B) Program.--The Administrator may guarantee the timely 
     payment of an open-end extension of credit to a small 
     business concern, the proceeds of which may be used for the 
     purchase of eligible retail goods for resale.
       ``(C) Amount.--An open-end extension of credit guaranteed 
     under this paragraph shall be in an amount not less than 
     $500,000 and not more than $5,000,000.
       ``(D) Term.--An open-end extension of credit guaranteed 
     under this paragraph shall have a term of not more than 5 
     years.
       ``(E) Guarantee percentage.--The Administrator may 
     guarantee--
       ``(i) not less than 60 percent of an open-end extension of 
     credit under this paragraph; and
       ``(ii) not more than 75 percent of an open-end extension of 
     credit under this paragraph.
       ``(F) Advance rate.--The lender for an open-end extension 
     of credit guaranteed under this paragraph may allow the 
     borrower to draw funds on the line of credit in an amount 
     equal to not more than 100 percent of the value of the 
     eligible retail goods to be purchased.''.
       (b) Sunset.--Effective September 30, 2013, section 7(a) of 
     the Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) by striking paragraph (34); and
       (2) by redesignating paragraph (35), as added by section 
     1206 of this Act, as paragraph (34).

     SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       The Riegle Community Development and Regulatory Improvement 
     Act of 1994 (12 U.S.C. 4701 et seq.) is amended by inserting 
     after section 114 (12 U.S.C. 4713) the following:

     ``SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Eligible community development financial 
     institution.--The term `eligible community development 
     financial institution' means a community development 
     financial institution (as described in section 1805.201 of 
     title 12, Code of Federal Regulations, or any successor 
     thereto) certified by the Secretary that has applied to a 
     qualified issuer for, or been granted by a qualified issuer, 
     a loan under the Program.
       ``(2) Eligible community or economic development purpose.--
     The term `eligible community or economic development 
     purpose'--
       ``(A) means any purpose described in section 108(b); and
       ``(B) includes the provision of community or economic 
     development in low-income or underserved rural areas.
       ``(3) Guarantee.--The term `guarantee' means a written 
     agreement between the Secretary and a qualified issuer (or 
     trustee), pursuant to which the Secretary ensures repayment 
     of the verifiable losses of principal, interest, and call 
     premium, if any, on notes or bonds issued by a qualified 
     issuer to finance or refinance loans to eligible community 
     development financial institutions.
       ``(4) Loan.--The term `loan' means any credit instrument 
     that is extended under the Program for any eligible community 
     or economic development purpose.
       ``(5) Master servicer.--
       ``(A) In general.--The term `master servicer' means any 
     entity approved by the Secretary in accordance with 
     subparagraph (B) to oversee the activities of servicers, as 
     provided in subsection (f)(4).
       ``(B) Approval criteria for master servicers.--The 
     Secretary shall approve or deny any application to become a 
     master servicer under the Program not later than 90 days 
     after the date on which all required information is submitted 
     to the Secretary, based on the capacity and experience of the 
     applicant in--
       ``(i) loan administration, servicing, and loan monitoring;
       ``(ii) managing regional or national loan intake, 
     processing, or servicing operational systems and 
     infrastructure;
       ``(iii) managing regional or national originator 
     communication systems and infrastructure;
       ``(iv) developing and implementing training and other risk 
     management strategies on a regional or national basis; and
       ``(v) compliance monitoring, investor relations, and 
     reporting.
       ``(6) Program.--The term `Program' means the guarantee 
     Program for bonds and notes issued for eligible community or 
     economic development purposes established under this section.
       ``(7) Program administrator.--The term `Program 
     administrator' means an entity designated by the issuer to 
     perform administrative duties, as provided in subsection 
     (f)(2).
       ``(8) Qualified issuer.--
       ``(A) In general.--The term `qualified issuer' means a 
     community development financial institution (or any entity 
     designated to issue notes or bonds on behalf of such 
     community development financial institution) that meets the 
     qualification requirements of this paragraph.
       ``(B) Approval criteria for qualified issuers.--
       ``(i) In general.--The Secretary shall approve a qualified 
     issuer for a guarantee under the Program in accordance with 
     the requirements of this paragraph, and such additional 
     requirements as the Secretary may establish, by regulation.
       ``(ii) Terms and qualifications.--A qualified issuer 
     shall--

       ``(I) have appropriate expertise, capacity, and experience, 
     or otherwise be qualified to make loans for eligible 
     community or economic development purposes;
       ``(II) provide to the Secretary--

       ``(aa) an acceptable statement of the proposed sources and 
     uses of the funds; and
       ``(bb) a capital distribution plan that meets the 
     requirements of subsection (c)(1); and

       ``(III) certify to the Secretary that the bonds or notes to 
     be guaranteed are to be used for eligible community or 
     economic development purposes.

       ``(C) Department opinion; timing.--
       ``(i) Department opinion.--Not later than 30 days after the 
     date of a request by a qualified issuer for approval of a 
     guarantee under the Program, the Secretary shall provide an 
     opinion regarding compliance by the issuer with the 
     requirements of the Program under this section.
       ``(ii) Timing.--The Secretary shall approve or deny a 
     guarantee under this section after

[[Page S5574]]

     consideration of the opinion provided to the Secretary under 
     clause (i), and in no case later than 90 days after receipt 
     of all required information by the Secretary with respect to 
     a request for such guarantee.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(10) Servicer.--The term `servicer' means an entity 
     designated by the issuer to perform various servicing duties, 
     as provided in subsection (f)(3).
       ``(b) Guarantees Authorized.--The Secretary shall guarantee 
     payments on bonds or notes issued by any qualified issuer, if 
     the proceeds of the bonds or notes are used in accordance 
     with this section to make loans to eligible community 
     development financial institutions--
       ``(1) for eligible community or economic development 
     purposes; or
       ``(2) to refinance loans or notes issued for such purposes.
       ``(c) General Program Requirements.--
       ``(1) In general.--A capital distribution plan meets the 
     requirements of this subsection, if not less than 90 percent 
     of the principal amount of guaranteed bonds or notes (other 
     than costs of issuance fees) are used to make loans for any 
     eligible community or economic development purpose, measured 
     annually, beginning at the end of the 1-year period beginning 
     on the issuance date of such guaranteed bonds or notes.
       ``(2) Relending account.--Not more than 10 percent of the 
     principal amount of guaranteed bonds or notes, multiplied by 
     an amount equal to the outstanding principal balance of 
     issued notes or bonds, minus the risk-share pool amount under 
     subsection (d), may be held in a relending account and may be 
     made available for new eligible community or economic 
     development purposes.
       ``(3) Limitations on unpaid principal balances.--The 
     proceeds of guaranteed bonds or notes under the Program may 
     not be used to pay fees (other than costs of issuance fees), 
     and shall be held in--
       ``(A) community or economic development loans;
       ``(B) a relending account, to the extent authorized under 
     paragraph (2); or
       ``(C) a risk-share pool established under subsection (d).
       ``(4) Repayment.--If a qualified issuer fails to meet the 
     requirements of paragraph (1) by the end of the 90-day period 
     beginning at the end of the annual measurement period, 
     repayment shall be made on that portion of bonds or notes 
     necessary to bring the bonds or notes that remain outstanding 
     after such repayment into compliance with the 90 percent 
     requirement of paragraph (1).
       ``(5) Prohibited uses.--The Secretary shall, by 
     regulation--
       ``(A) prohibit, as appropriate, certain uses of amounts 
     from the guarantee of a bond or note under the Program, 
     including the use of such funds for political activities, 
     lobbying, outreach, counseling services, or travel expenses; 
     and
       ``(B) provide that the guarantee of a bond or note under 
     the Program may not be used for salaries or other 
     administrative costs of--
       ``(i) the qualified issuer; or
       ``(ii) any recipient of amounts from the guarantee of a 
     bond or note.
       ``(d) Risk-Share Pool.--Each qualified issuer shall, during 
     the term of a guarantee provided under the Program, establish 
     a risk-share pool, capitalized by contributions from eligible 
     community development financial institution participants an 
     amount equal to 3 percent of the guaranteed amount 
     outstanding on the subject notes and bonds.
       ``(e) Guarantees.--
       ``(1) In general.--A guarantee issued under the Program 
     shall--
       ``(A) be for the full amount of a bond or note, including 
     the amount of principal, interest, and call premiums;
       ``(B) be fully assignable and transferable to the capital 
     market, on terms and conditions that are consistent with 
     comparable Government-guaranteed bonds, and satisfactory to 
     the Secretary;
       ``(C) represent the full faith and credit of the United 
     States; and
       ``(D) not exceed 30 years.
       ``(2) Limitations.--
       ``(A) Annual number of guarantees.--The Secretary shall 
     issue not more than 10 guarantees in any calendar year under 
     the Program.
       ``(B) Guarantee amount.--The Secretary may not guarantee 
     any amount under the Program equal to less than $100,000,000, 
     but the total of all such guarantees in any fiscal year may 
     not exceed $1,000,000,000.
       ``(f) Servicing of Transactions.--
       ``(1) In general.--To maximize efficiencies and minimize 
     cost and interest rates, loans made under this section may be 
     serviced by qualified Program administrators, bond servicers, 
     and a master servicer.
       ``(2) Duties of program administrator.--The duties of a 
     Program administrator shall include--
       ``(A) approving and qualifying eligible community 
     development financial institution applications for 
     participation in the Program;
       ``(B) compliance monitoring;
       ``(C) bond packaging in connection with the Program; and
       ``(D) all other duties and related services that are 
     customarily expected of a Program administrator.
       ``(3) Duties of servicer.--The duties of a servicer shall 
     include--
       ``(A) billing and collecting loan payments;
       ``(B) initiating collection activities on past-due loans;
       ``(C) transferring loan payments to the master servicing 
     accounts;
       ``(D) loan administration and servicing;
       ``(E) systematic and timely reporting of loan performance 
     through remittance and servicing reports;
       ``(F) proper measurement of annual outstanding loan 
     requirements; and
       ``(G) all other duties and related services that are 
     customarily expected of servicers.
       ``(4) Duties of master servicer.--The duties of a master 
     servicer shall include--
       ``(A) tracking the movement of funds between the accounts 
     of the master servicer and any other servicer;
       ``(B) ensuring orderly receipt of the monthly remittance 
     and servicing reports of the servicer;
       ``(C) monitoring the collection comments and foreclosure 
     actions;
       ``(D) aggregating the reporting and distribution of funds 
     to trustees and investors;
       ``(E) removing and replacing a servicer, as necessary;
       ``(F) loan administration and servicing;
       ``(G) systematic and timely reporting of loan performance 
     compiled from all bond servicers' reports;
       ``(H) proper distribution of funds to investors; and
       ``(I) all other duties and related services that are 
     customarily expected of a master servicer.
       ``(g) Fees.--
       ``(1) In general.--A qualified issuer that receives a 
     guarantee issued under this section on a bond or note shall 
     pay a fee to the Secretary, in an amount equal to 10 basis 
     points of the amount of the unpaid principal of the bond or 
     note guaranteed.
       ``(2) Payment.--A qualified issuer shall pay the fee 
     required under this subsection on an annual basis.
       ``(3) Use of fees.--Fees collected by the Secretary under 
     this subsection shall be used to reimburse the Department of 
     the Treasury for any administrative costs incurred by the 
     Department in implementing the Program established under this 
     section.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Secretary, such sums as are necessary to carry out 
     this section.
       ``(2) Use of fees.--To the extent that the amount of funds 
     appropriated for a fiscal year under paragraph (1) are not 
     sufficient to carry out this section, the Secretary may use 
     the fees collected under subsection (g) for the cost of 
     providing guarantees of bonds and notes under this section.
       ``(i) Investment in Guaranteed Bonds Ineligible for 
     Community Reinvestment Act Purposes.--Notwithstanding any 
     other provision of law, any investment by a financial 
     institution in bonds or notes guaranteed under the Program 
     shall not be taken into account in assessing the record of 
     such institution for purposes of the Community Reinvestment 
     Act of 1977 (12 U.S.C. 2901).
       ``(j) Administration.--
       ``(1) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall promulgate 
     regulations to carry out this section.
       ``(2) Implementation.--Not later than 2 years after the 
     date of enactment of this section, the Secretary shall 
     implement this section.
       ``(k) Termination.--This section is repealed, and the 
     authority provided under this section shall terminate, on 
     September 30, 2014.''.

     SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.

       (a) In General.--Section 7(a)(31)(D) of the Small Business 
     Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$350,000'' and inserting ``$1,000,000''.
       (b) Prospective Repeal.--Effective 1 year after the date of 
     enactment of this Act, section 7(a)(31)(D) of the Small 
     Business Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$1,000,000'' and inserting ``$350,000''.

     SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX IN CREASES.

       (a) In General.--Except as provided in subsection (b), 
     nothing in section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections, 
     shall be construed to limit the ability of Congress to 
     appropriate funds.
       (b) TARP Funds and Tax Increases.--
       (1) In general.--Any covered amounts may not be used to 
     carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections.
       (2) Definition.--In this subsection, the term ``covered 
     amounts'' means--
       (A) the amounts made available to the Secretary of the 
     Treasury under title I of the Emergency Economic 
     Stabilization Act of 2008 S.C. 5201 et seq.) to purchase 
     (under section 101) or guarantee (under section 102) assets 
     under that Act; and
       (B) any revenue increase attributable to any amendment to 
     the Internal Revenue Code of 1986 made during the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2010.

             Subtitle B--Small Business Trade and Exporting

     SEC. 1201. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Export 
     Enhancement and International Trade Act of 2010''.

     SEC. 1202. DEFINITIONS.

       (a) Definitions.--In this subtitle--
       (1) the term ``Associate Administrator'' means the 
     Associate Administrator for International Trade appointed 
     under section

[[Page S5575]]

     22(a)(2) of the Small Business Act, as amended by this 
     subtitle;
       (2) the term ``Export Assistance Center'' means a one-stop 
     shop referred to in section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); and
       (3) the term ``rural small business concern'' means a small 
     business concern located in a rural area, as that term is 
     defined in section 1393(a)(2) of the Internal Revenue Code of 
     1986.
       (b) Technical and Conforming Amendments.--
       (1) Definitions.--Section 3 of the Small Business Act (15 
     U.S.C. 632) is amended by adding at the end the following:
       ``(t) Small Business Development Center.--In this Act, the 
     term `small business development center' means a small 
     business development center described in section 21.
       ``(u) Region of the Administration.--In this Act, the term 
     `region of the Administration' means the geographic area 
     served by a regional office of the Administration established 
     under section 4(a).''.
       (2) Conforming amendment.--Section 4(b)(3)(B)(x) of the 
     Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by 
     striking ``Administration district and region'' and inserting 
     ``district and region of the Administration''.

     SEC. 1203. OFFICE OF INTERNATIONAL TRADE.

       (a) Establishment.--Section 22 of the Small Business Act 
     (15 U.S.C. 649) is amended--
       (1) by striking ``Sec. 22. (a) There'' and inserting the 
     following:

     ``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

       ``(a) Establishment.--
       ``(1) Office.--There''; and
       (2) in subsection (a)--
       (A) in paragraph (1), as so designated, by striking the 
     period and inserting ``for the primary purposes of 
     increasing--
       ``(A) the number of small business concerns that export; 
     and
       ``(B) the volume of exports by small business concerns.''; 
     and
       (B) by adding at the end the following:
       ``(2) Associate administrator.--The head of the Office 
     shall be the Associate Administrator for International Trade, 
     who shall be responsible to the Administrator.''.
       (b) Authority for Additional Associate Administrator.--
     Section 4(b)(1) of the Small Business Act (15 U.S.C. 
     633(b)(1)) is amended--
       (1) in the fifth sentence, by striking ``five Associate 
     Administrators'' and inserting ``Associate Administrators''; 
     and
       (2) by adding at the end the following: ``One such 
     Associate Administrator shall be the Associate Administrator 
     for International Trade, who shall be the head of the Office 
     of International Trade established under section 22.''.
       (c) Discharge of International Trade Responsibilities of 
     Administration.--Section 22 of the Small Business Act (15 
     U.S.C. 649) is amended by adding at the end the following:
       ``(h) Discharge of International Trade Responsibilities of 
     Administration.--The Administrator shall ensure that--
       ``(1) the responsibilities of the Administration regarding 
     international trade are carried out by the Associate 
     Administrator;
       ``(2) the Associate Administrator has sufficient resources 
     to carry out such responsibilities; and
       ``(3) the Associate Administrator has direct supervision 
     and control over--
       ``(A) the staff of the Office; and
       ``(B) any employee of the Administration whose principal 
     duty station is an Export Assistance Center, or any successor 
     entity.''.
       (d) Role of Associate Administrator in Carrying Out 
     International Trade Policy.--Section 2(b)(1) of the Small 
     Business Act (15 U.S.C. 631(b)(1)) is amended in the matter 
     preceding subparagraph (A)--
       (1) by inserting ``the Administrator of'' before ``the 
     Small Business Administration''; and
       (2) by inserting ``through the Associate Administrator for 
     International Trade, and'' before ``in cooperation with''.
       (e) Implementation Date.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator of the Small 
     Business Administration shall appoint an Associate 
     Administrator for International Trade under section 22(a) of 
     the Small Business Act (15 U.S.C. 649(a)), as added by this 
     section.

     SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.

       (a) Amendments to Section 22.--Section 22 of the Small 
     Business Act (15 U.S.C. 649) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Trade Distribution Network.--The Associate 
     Administrator, working in close cooperation with the 
     Secretary of Commerce, the United States Trade 
     Representative, the Secretary of Agriculture, the Secretary 
     of State, the President of the Export-Import Bank of the 
     United States, the President of the Overseas Private 
     Investment Corporation, Director of the United States Trade 
     and Development Agency, and other relevant Federal agencies, 
     small business development centers engaged in export 
     promotion efforts, Export Assistance Centers, regional and 
     district offices of the Administration, the small business 
     community, and relevant State and local export promotion 
     programs, shall--
       ``(1) maintain a distribution network, using regional and 
     district offices of the Administration, the small business 
     development center network, networks of women's business 
     centers, the Service Corps of Retired Executives authorized 
     by section 8(b)(1), and Export Assistance Centers, for 
     programs relating to--
       ``(A) trade promotion;
       ``(B) trade finance;
       ``(C) trade adjustment assistance;
       ``(D) trade remedy assistance; and
       ``(E) trade data collection;
       ``(2) aggressively market the programs described in 
     paragraph (1) and disseminate information, including 
     computerized marketing data, to small business concerns on 
     exporting trends, market-specific growth, industry trends, 
     and international prospects for exports;
       ``(3) promote export assistance programs through the 
     district and regional offices of the Administration, the 
     small business development center network, Export Assistance 
     Centers, the network of women's business centers, chapters of 
     the Service Corps of Retired Executives, State and local 
     export promotion programs, and partners in the private 
     sector; and
       ``(4) give preference in hiring or approving the transfer 
     of any employee into the Office or to a position described in 
     subsection (c)(9) to otherwise qualified applicants who are 
     fluent in a language in addition to English, to--
       ``(A) accompany small business concerns on foreign trade 
     missions; and
       ``(B) translate documents, interpret conversations, and 
     facilitate multilingual transactions, including by providing 
     referral lists for translation services, if required.'';
       (2) in subsection (c)--
       (A) by striking ``(c) The Office'' and inserting the 
     following:
       ``(c) Promotion of Sales Opportunities.--The Associate 
     Administrator'';
       (B) by redesignating paragraphs (1) through (8) as 
     paragraphs (2) through (9), respectively;
       (C) by inserting before paragraph (2), as so redesignated, 
     the following:
       ``(1) establish annual goals for the Office relating to--
       ``(A) enhancing the exporting capability of small business 
     concerns and small manufacturers;
       ``(B) facilitating technology transfers;
       ``(C) enhancing programs and services to assist small 
     business concerns and small manufacturers to compete 
     effectively and efficiently against foreign entities;
       ``(D) increasing the ability of small business concerns to 
     access capital; and
       ``(E) disseminating information concerning Federal, State, 
     and private programs and initiatives;'';
       (D) in paragraph (2), as so redesignated, by striking 
     ``mechanism for'' and all that follows through ``(D) 
     assisting'' and inserting the following: ``mechanism for--
       ``(A) identifying subsectors of the small business 
     community with strong export potential;
       ``(B) identifying areas of demand in foreign markets;
       ``(C) prescreening foreign buyers for commercial and credit 
     purposes; and
       ``(D) assisting'';
       (E) in paragraph (3), as so redesignated, by striking 
     ``assist small businesses in the formation and utilization 
     of'' and inserting ``assist small business concerns in 
     forming and using'';
       (F) in paragraph (4), as so redesignated--
       (i) by striking ``local'' and inserting ``district'';
       (ii) by striking ``existing'';
       (iii) by striking ``Small Business Development Center 
     network'' and inserting ``small business development center 
     network''; and
       (iv) by striking ``Small Business Development Center 
     Program'' and inserting ``small business development center 
     program'';
       (G) in paragraph (5), as so redesignated--
       (i) in subparagraph (A), by striking ``Gross State 
     Produce'' and inserting ``Gross State Product'';
       (ii) in subparagraph (B), by striking ``SIC'' each place it 
     appears and inserting ``North American Industry 
     Classification System''; and
       (iii) in subparagraph (C), by striking ``small businesses'' 
     and inserting ``small business concerns'';
       (H) in paragraph (6), as so redesignated, by striking the 
     period at the end and inserting a semicolon;
       (I) in paragraph (7), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by inserting ``concerns'' after ``small business''; and
       (II) by striking ``current'' and inserting ``up to date'';

       (ii) in subparagraph (A), by striking ``Administration's 
     regional offices'' and inserting ``regional and district 
     offices of the Administration'';
       (iii) in subparagraph (B) by striking ``current'';
       (iv) in subparagraph (C), by striking ``current''; and
       (v) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns'';
       (J) in paragraph (8), as so redesignated, by striking and 
     at the end;
       (K) in paragraph (9), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``full-time export development specialists 
     to each Administration regional office and assigning''; and
       (II) by striking ``person in each district office. Such 
     specialists'' and inserting ``individual in each district 
     office and providing each Administration regional office with 
     a

[[Page S5576]]

     full-time export development specialist, who'';

       (ii) in subparagraph (B)--

       (I) by striking ``current''; and
       (II) by striking ``with'' and inserting ``in'';

       (iii) in subparagraph (D)--

       (I) by striking ``Administration personnel involved in 
     granting'' and inserting ``personnel of the Administration 
     involved in making''; and
       (II) by striking ``and'' at the end;

       (iv) in subparagraph (E)--

       (I) by striking ``small businesses' needs'' and inserting 
     ``the needs of small business concerns''; and
       (II) by striking the period at the end and inserting a 
     semicolon;

       (v) by adding at the end the following:
       ``(F) participate, jointly with employees of the Office, in 
     an annual training program that focuses on current small 
     business needs for exporting; and
       ``(G) develop and conduct training programs for exporters 
     and lenders, in cooperation with the Export Assistance 
     Centers, the Department of Commerce, the Department of 
     Agriculture, small business development centers, women's 
     business centers, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, and 
     other relevant Federal agencies;''; and
       (vi) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns''; and
       (L) by adding at the end the following:
       ``(10) make available on the website of the Administration 
     the name and contact information of each individual described 
     in paragraph (9);
       ``(11) carry out a nationwide marketing effort using 
     technology, online resources, training, and other strategies 
     to promote exporting as a business development opportunity 
     for small business concerns;
       ``(12) disseminate information to the small business 
     community through regional and district offices of the 
     Administration, the small business development center 
     network, Export Assistance Centers, the network of women's 
     business centers, chapters of the Service Corps of Retired 
     Executives authorized by section 8(b)(1), State and local 
     export promotion programs, and partners in the private sector 
     regarding exporting trends, market-specific growth, industry 
     trends, and prospects for exporting; and
       ``(13) establish and carry out training programs for the 
     staff of the regional and district offices of the 
     Administration and resource partners of the Administration on 
     export promotion and providing assistance relating to 
     exports.'';
       (3) in subsection (d)--
       (A) by redesignating paragraphs (1) through (5) as clauses 
     (i) through (v), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``(d) The Office'' and inserting the 
     following:
       ``(d) Export Financing Programs.--
       ``(1) In general.--The Associate Administrator''; and
       (C) by striking ``To accomplish this goal, the Office shall 
     work'' and inserting the following:
       ``(2) Trade finance specialist.--To accomplish the goal 
     established under paragraph (1), the Associate Administrator 
     shall--
       ``(A) designate at least 1 individual within the 
     Administration as a trade finance specialist to oversee 
     international loan programs and assist Administration 
     employees with trade finance issues; and
       ``(B) work'';
       (4) in subsection (e), by striking ``(e) The Office'' and 
     inserting the following:
       ``(e) Trade Remedies.--The Associate Administrator'';
       (5) by amending subsection (f) to read as follows:
       ``(f) Reporting Requirement.--The Associate Administrator 
     shall submit an annual report to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives that 
     contains--
       ``(1) a description of the progress of the Office in 
     implementing the requirements of this section;
       ``(2) a detailed account of the results of export growth 
     activities of the Administration, including the activities of 
     each district and regional office of the Administration, 
     based on the performance measures described in subsection 
     (i);
       ``(3) an estimate of the total number of jobs created or 
     retained as a result of export assistance provided by the 
     Administration and resource partners of the Administration;
       ``(4) for any travel by the staff of the Office, the 
     destination of such travel and the benefits to the 
     Administration and to small business concerns resulting from 
     such travel; and
       ``(5) a description of the participation by the Office in 
     trade negotiations.'';
       (6) in subsection (g), by striking ``(g) The Office'' and 
     inserting the following:
       ``(g) Studies.--The Associate Administrator''; and
       (7) by adding after subsection (h), as added by section 
     1203 of this subtitle, the following:
       ``(i) Export and Trade Counseling.--
       ``(1) Definition.--In this subsection--
       ``(A) the term `lead small business development center' 
     means a small business development center that has received a 
     grant from the Administration; and
       ``(B) the term `lead women's business center' means a 
     women's business center that has received a grant from the 
     Administration.
       ``(2) Certification program.--The Administrator shall 
     establish an export and trade counseling certification 
     program to certify employees of lead small business 
     development centers and lead women's business centers in 
     providing export assistance to small business concerns.
       ``(3) Number of certified employees.--The Administrator 
     shall ensure that the number of employees of each lead small 
     business development center who are certified in providing 
     export assistance is not less than the lesser of--
       ``(A) 5; or
       ``(B) 10 percent of the total number of employees of the 
     lead small business development center.
       ``(4) Reimbursement for certification.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Administrator shall reimburse a lead 
     small business development center or a lead women's business 
     center for costs relating to the certification of an employee 
     of the lead small business center or lead women's business 
     center in providing export assistance under the program 
     established under paragraph (2).
       ``(B) Limitation.--The total amount reimbursed by the 
     Administrator under subparagraph (A) may not exceed $350,000 
     in any fiscal year.
       ``(j) Performance Measures.--
       ``(1) In general.--The Associate Administrator shall 
     develop performance measures for the Administration to 
     support export growth goals for the activities of the Office 
     under this section that include--
       ``(A) the number of small business concerns that--
       ``(i) receive assistance from the Administration;
       ``(ii) had not exported goods or services before receiving 
     the assistance described in clause (i); and
       ``(iii) export goods or services;
       ``(B) the number of small business concerns receiving 
     assistance from the Administration that export goods or 
     services to a market outside the United States into which the 
     small business concern did not export before receiving the 
     assistance;
       ``(C) export revenues by small business concerns assisted 
     by programs of the Administration;
       ``(D) the number of small business concerns referred to an 
     Export Assistance Center or a small business development 
     center by the staff of the Office;
       ``(E) the number of small business concerns referred to the 
     Administration by an Export Assistance Center or a small 
     business development center; and
       ``(F) the number of small business concerns referred to the 
     Department of Commerce, the Department of Agriculture, the 
     Department of State, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, or the 
     United States Trade and Development Agency by the staff of 
     the Office, an Export Assistance Center, or a small business 
     development center.
       ``(2) Joint performance measures.--The Associate 
     Administrator shall develop joint performance measures for 
     the district offices of the Administration and the Export 
     Assistance Centers that include the number of export loans 
     made under--
       ``(A) section 7(a)(16);
       ``(B) the Export Working Capital Program established under 
     section 7(a)(14);
       ``(C) the Preferred Lenders Program, as defined in section 
     7(a)(2)(C)(ii); and
       ``(D) the export express program established under section 
     7(a)(34).
       ``(3) Consistency of tracking.--The Associate 
     Administrator, in coordination with the departments and 
     agencies that are represented on the Trade Promotion 
     Coordinating Committee established under section 2312 of the 
     Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small 
     business development center network, shall develop a system 
     to track exports by small business concerns, including 
     information relating to the performance measures developed 
     under paragraph (1), that is consistent with systems used by 
     the departments and agencies and the network.''.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives on any travel by the 
     staff of the Office of International Trade of the 
     Administration, during the period beginning on October 1, 
     2004, and ending on the date of enactment of the Act, 
     including the destination of such travel and the benefits to 
     the Administration and to small business concerns resulting 
     from such travel.

     SEC. 1205. EXPORT ASSISTANCE CENTERS.

       (a) Export Assistance Centers.--Section 22 of the Small 
     Business Act (15 U.S.C. 649), as amended by this subtitle, is 
     amended by adding at the end the following:
       ``(k) Export Assistance Centers.--
       ``(1) Export finance specialists.--
       ``(A) Minimum number of export finance specialists.--On and 
     after the date that is 90 days after the date of enactment of 
     this subsection, the Administrator, in coordination with the 
     Secretary of Commerce, shall ensure that the number of export 
     finance specialists is not less than the number of such 
     employees so assigned on January 1, 2003.
       ``(B) Export finance specialists assigned to each region of 
     the administration.--On and after the date that is 2 years 
     after the

[[Page S5577]]

     date of enactment of this subsection, the Administrator, in 
     coordination with the Secretary of Commerce, shall ensure 
     that there are not fewer than 3 export finance specialists in 
     each region of the Administration.
       ``(2) Placement of export finance specialists.--
       ``(A) Priority.--The Administrator shall give priority, to 
     the maximum extent practicable, to placing employees of the 
     Administration at any Export Assistance Center that--
       ``(i) had an Administration employee assigned to the Export 
     Assistance Center before January 2003; and
       ``(ii) has not had an Administration employee assigned to 
     the Export Assistance Center during the period beginning 
     January 2003, and ending on the date of enactment of this 
     subsection, either through retirement or reassignment.
       ``(B) Needs of exporters.--The Administrator shall, to the 
     maximum extent practicable, strategically assign 
     Administration employees to Export Assistance Centers, based 
     on the needs of exporters.
       ``(C) Rule of construction.--Nothing in this subsection may 
     be construed to require the Administrator to reassign or 
     remove an export finance specialist who is assigned to an 
     Export Assistance Center on the date of enactment of this 
     subsection.
       ``(3) Goals.--The Associate Administrator shall work with 
     the Department of Commerce, the Export-Import Bank of the 
     United States, and the Overseas Private Investment 
     Corporation to establish shared annual goals for the Export 
     Assistance Centers.
       ``(4) Oversight.--The Associate Administrator shall 
     designate an individual within the Administration to oversee 
     all activities conducted by Administration employees assigned 
     to Export Assistance Centers.
       ``(l) Definitions.--In this section--
       ``(1) the term `Associate Administrator' means the 
     Associate Administrator for International Trade described in 
     subsection (a)(2);
       ``(2) the term `Export Assistance Center' means a one-stop 
     shop for United States exporters established by the United 
     States and Foreign Commercial Service of the Department of 
     Commerce pursuant to section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
       ``(3) the term `export finance specialist' means a full-
     time equivalent employee of the Office assigned to an Export 
     Assistance Center to carry out the duties described in 
     subsection (e); and
       ``(4) the term `Office' means the Office of International 
     Trade established under subsection (a)(1).''.
       (b) Study and Report on Filling Gaps in High-and-Low-Export 
     Volume Areas.--
       (1) Study and report.--Not later than 6 months after the 
     date of enactment of this Act, and every 2 years thereafter, 
     the Administrator shall--
       (A) conduct a study of--
       (i) the volume of exports for each State;
       (ii) the availability of export finance specialists in each 
     State;
       (iii) the number of exporters in each State that are small 
     business concerns;
       (iv) the percentage of exporters in each State that are 
     small business concerns;
       (v) the change, if any, in the number of exporters that are 
     small business concerns in each State--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced;

       (vi) the total value of the exports in each State by small 
     business concerns;
       (vii) the percentage of the total volume of exports in each 
     State that is attributable to small business concerns; and
       (viii) the change, if any, in the percentage of the total 
     volume of exports in each State that is attributable to small 
     business concerns--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced; and

       (B) 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 
     containing--
       (i) the results of the study under subparagraph (A);
       (ii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     greatest volume of exports, based upon the most recent data 
     available from the Department of Commerce;
       (iii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     lowest volume of exports, based upon the most recent data 
     available from the Department of Commerce; and
       (iv) such additional information as the Administrator 
     determines is appropriate.
       (2) Definition.--In this subsection, the term ``export 
     finance specialist'' has the meaning given that term in 
     section 22(l) of the Small Business Act, as added by this 
     title.

     SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.

       (a) Loan Limits.--
       (1) Total amount outstanding.--Section 7(a)(3)(B) of the 
     Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by 
     striking ``$1,750,000, of which not more than $1,250,000'' 
     and inserting ``$4,500,000 (or if the gross loan amount would 
     exceed $5,000,000), of which not more than $4,000,000''.
       (2) Participation.--Section 7(a)(2) of the Small Business 
     Act (15 U.S.C. 636(a)(2)) is amended--
       (A) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``subparagraph (B)'' and inserting 
     ``subparagraphs (B), (D), and (E)'';
       (B) in subparagraph (D), by striking ``Notwithstanding 
     subparagraph (A), in'' and inserting ``In''; and
       (C) by adding at the end the following:
       ``(E) Participation in international trade loan.--In an 
     agreement to participate in a loan on a deferred basis under 
     paragraph (16), the participation by the Administration may 
     not exceed 90 percent.''.
       (b) Working Capital.--Section 7(a)(16)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(16)(A)) is amended--
       (1) in the matter preceding clause (i), by striking ``in--
     '' and inserting ``--'';
       (2) in clause (i)--
       (A) by inserting ``in'' after ``(i)''; and
       (B) by striking ``or'' at the end;
       (3) in clause (ii)--
       (A) by inserting ``in'' after ``(ii)''; and
       (B) by striking the period at the end and inserting ``, 
     including any debt that qualifies for refinancing under any 
     other provision of this subsection; or''; and
       (4) by adding at the end the following:
       ``(iii) by providing working capital.''.
       (c) Collateral.--Section 7(a)(16)(B) of the Small Business 
     Act (15 U.S.C. 636(a)(16)(B)) is amended--
       (1) by striking ``Each loan'' and inserting the following:
       ``(i) In general.--Except as provided in clause (ii), each 
     loan''; and
       (2) by adding at the end the following:
       ``(ii) Exception.--A loan under this paragraph may be 
     secured by a second lien position on the property or 
     equipment financed by the loan or on other assets of the 
     small business concern, if the Administrator determines the 
     lien provides adequate assurance of the payment of the 
     loan.''.
       (d) Export Working Capital Program.--Section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(D), by striking ``not exceed'' and 
     inserting ``be''; and
       (2) in paragraph (14)--
       (A) by striking ``(A) The Administration'' and inserting 
     the following: ``Export working capital program.--
       ``(A) In general.--The Administrator'';
       (B) by striking ``(B) When considering'' and inserting the 
     following:
       ``(C) Considerations.--When considering'';
       (C) by striking ``(C) The Administration'' and inserting 
     the following:
       ``(D) Marketing.--The Administrator''; and
       (D) by inserting after subparagraph (A) the following:
       ``(B) Terms.--
       ``(i) Loan amount.--The Administrator may not guarantee a 
     loan under this paragraph of more than $5,000,000.
       ``(ii) Fees.--

       ``(I) In general.--For a loan under this paragraph, the 
     Administrator shall collect the fee assessed under paragraph 
     (23) not more frequently than once each year.
       ``(II) Untapped credit.--The Administrator may not assess a 
     fee on capital that is not accessed by the small business 
     concern.''.

       (e) Participation in Preferred Lenders Program.--Section 
     7(a)(2)(C) of the Small Business Act (15 U.S.C. 636(a)(2)(C)) 
     is amended--
       (1) by redesignating clause (ii) as clause (iii); and
       (2) by inserting after clause (i) the following:
       ``(ii) Export-import bank lenders.--Any lender that is 
     participating in the Delegated Authority Lender Program of 
     the Export-Import Bank of the United States (or any successor 
     to the Program) shall be eligible to participate in the 
     Preferred Lenders Program.''.
       (f) Export Express Program.--Section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)) is amended by adding at the 
     end the following:
       ``(35) Export express program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `export development activity' includes--

       ``(I) obtaining a standby letter of credit when required as 
     a bid bond, performance bond, or advance payment guarantee;
       ``(II) participation in a trade show that takes place 
     outside the United States;
       ``(III) translation of product brochures or catalogues for 
     use in markets outside the United States;
       ``(IV) obtaining a general line of credit for export 
     purposes;
       ``(V) performing a service contract from buyers located 
     outside the United States;
       ``(VI) obtaining transaction-specific financing associated 
     with completing export orders;
       ``(VII) purchasing real estate or equipment to be used in 
     the production of goods or services for export;
       ``(VIII) providing term loans or other financing to enable 
     a small business concern, including an export trading company 
     and an export management company, to develop a market outside 
     the United States; and

[[Page S5578]]

       ``(IX) acquiring, constructing, renovating, modernizing, 
     improving, or expanding a production facility or equipment to 
     be used in the United States in the production of goods or 
     services for export; and

       ``(ii) the term `express loan' means a loan in which a 
     lender uses to the maximum extent practicable the loan 
     analyses, procedures, and documentation of the lender to 
     provide expedited processing of the loan application.
       ``(B) Authority.--The Administrator may guarantee the 
     timely payment of an express loan to a small business concern 
     made for an export development activity.
       ``(C) Level of participation.--
       ``(i) Maximum amount.--The maximum amount of an express 
     loan guaranteed under this paragraph shall be $500,000.
       ``(ii) Percentage.--For an express loan guaranteed under 
     this paragraph, the Administrator shall guarantee--

       ``(I) 90 percent of a loan that is not more than $350,000; 
     and
       ``(II) 75 percent of a loan that is more than $350,000 and 
     not more than $500,000.''.

       (g) Annual Listing of Export Finance Lenders.--Section 
     7(a)(16) of the Small Business Act (15 U.S.C. 636(a)(16)) is 
     amended by adding at the end the following:
       ``(F) List of export finance lenders.--
       ``(i) Publication of list required.--The Administrator 
     shall publish an annual list of the banks and participating 
     lending institutions that, during the 1-year period ending on 
     the date of publication of the list, have made loans 
     guaranteed by the Administration under--

       ``(I) this paragraph;
       ``(II) paragraph (14); or
       ``(III) paragraph (34).

       ``(ii) Availability of list.--The Administrator shall--

       ``(I) post the list published under clause (i) on the 
     website of the Administration; and
       ``(II) make the list published under clause (i) available, 
     upon request, at each district office of the 
     Administration.''.

       (h) Applicability.--The amendments made by subsections (a) 
     through (f) shall apply with respect to any loan made after 
     the date of enactment of this Act.

     SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``eligible small business concern'' means a 
     small business concern that--
       (A) has been in business for not less than the 1-year 
     period ending on the date on which assistance is provided 
     using a grant under this section;
       (B) is operating profitably, based on operations in the 
     United States;
       (C) has demonstrated understanding of the costs associated 
     with exporting and doing business with foreign purchasers, 
     including the costs of freight forwarding, customs brokers, 
     packing and shipping, as determined by the Associate 
     Administrator; and
       (D) has in effect a strategic plan for exporting;
       (2) the term ``program'' means the State Trade and Export 
     Promotion Grant Program established under subsection (b);
       (3) the term ``small business concern owned and controlled 
     by women'' has the meaning given that term in section 3 of 
     the Small Business Act (15 U.S.C. 632);
       (4) the term ``socially and economically disadvantaged 
     small business concern'' has the meaning given that term in 
     section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
     6537(a)(4)(A)); and
       (5) the term ``State'' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, and American Samoa.
       (b) Establishment of Program.--The Associate Administrator 
     shall establish a 3-year trade and export promotion pilot 
     program to be known as the State Trade and Export Promotion 
     Grant Program, to make grants to States to carry out export 
     programs that assist eligible small business concerns in--
       (1) participation in a foreign trade mission;
       (2) a foreign market sales trip;
       (3) a subscription to services provided by the Department 
     of Commerce;
       (4) the payment of website translation fees;
       (5) the design of international marketing media;
       (6) a trade show exhibition;
       (7) participation in training workshops; or
       (8) any other export initiative determined appropriate by 
     the Associate Administrator.
       (c) Grants.--
       (1) Joint review.--In carrying out the program, the 
     Associate Administrator may make a grant to a State to 
     increase the number of eligible small business concerns in 
     the State that export or to increase the value of the exports 
     by eligible small business concerns in the State.
       (2) Considerations.--In making grants under this section, 
     the Associate Administrator may give priority to an 
     application by a State that proposes a program that--
       (A) focuses on eligible small business concerns as part of 
     an export promotion program;
       (B) demonstrates success in promoting exports by--
       (i) socially and economically disadvantaged small business 
     concerns;
       (ii) small business concerns owned or controlled by women; 
     and
       (iii) rural small business concerns;
       (C) promotes exports from a State that is not 1 of the 10 
     States with the highest percentage of exporters that are 
     small business concerns, based upon the latest data available 
     from the Department of Commerce; and
       (D) promotes new-to-market export opportunities to the 
     People's Republic of China for eligible small business 
     concerns in the United States.
       (3) Limitations.--
       (A) Single application.--A State may not submit more than 1 
     application for a grant under the program in any 1 fiscal 
     year.
       (B) Proportion of amounts.--The total value of grants under 
     the program made during a fiscal year to the 10 States with 
     the highest number of exporters that are small business 
     concerns, based upon the latest data available from the 
     Department of Commerce, shall be not more than 40 percent of 
     the amounts appropriated for the program for that fiscal 
     year.
       (4) Application.--A State desiring a grant under the 
     program shall submit an application at such time, in such 
     manner, and accompanied by such information as the Associate 
     Administrator may establish.
       (d) Competitive Basis.--The Associate Administrator shall 
     award grants under the program on a competitive basis.
       (e) Federal Share.--The Federal share of the cost of an 
     export program carried out using a grant under the program 
     shall be--
       (1) for a State that has a high export volume, as 
     determined by the Associate Administrator, not more than 65 
     percent; and
       (2) for a State that does not have a high export volume, as 
     determined by the Associate Administrator, not more than 75 
     percent.
       (f) Non-Federal Share.--The non-Federal share of the cost 
     of an export program carried using a grant under the program 
     shall be comprised of not less than 50 percent cash and not 
     more than 50 percent of indirect costs and in-kind 
     contributions, except that no such costs or contributions may 
     be derived from funds from any other Federal program.
       (g) Reports.--
       (1) Initial report.--Not later than 120 days after the date 
     of enactment of this Act, the Associate Administrator 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, which 
     shall include--
       (A) a description of the structure of and procedures for 
     the program;
       (B) a management plan for the program; and
       (C) a description of the merit-based review process to be 
     used in the program.
       (2) Annual reports.--The Associate Administrator shall 
     submit an annual report to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives regarding the 
     program, which shall include--
       (A) the number and amount of grants made under the program 
     during the preceding year;
       (B) a list of the States receiving a grant under the 
     program during the preceding year, including the activities 
     being performed with grant; and
       (C) the effect of each grant on exports by eligible small 
     business concerns in the State receiving the grant.
       (h) Reviews by Inspector General.--
       (1) In general.--The Inspector General of the 
     Administration shall conduct a review of--
       (A) the extent to which recipients of grants under the 
     program are measuring the performance of the activities being 
     conducted and the results of the measurements; and
       (B) the overall management and effectiveness of the 
     program.
       (2) Report.--Not later than September 30, 2012, the 
     Inspector General of the Administration 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 review conducted under 
     paragraph (1).
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the program $30,000,000 for 
     each of fiscal years 2011, 2012, and 2013.
       (j) Termination.--The authority to carry out the program 
     shall terminate 3 years after the date on which the Associate 
     Administrator establishes the program.

     SEC. 1208. RURAL EXPORT PROMOTION.

       Not later than 6 months after the date of enactment of this 
     Act, the Administrator, in consultation with the Secretary of 
     Agriculture and the Secretary of Commerce, 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 that contains--
       (1) a description of each program of the Administration 
     that promotes exports by rural small business concerns, 
     including--
       (A) the number of rural small business concerns served by 
     the program;
       (B) the change, if any, in the number of rural small 
     business concerns as a result of participation in the program 
     during the 10-year period ending on the date of enactment of 
     this Act;
       (C) the volume of exports by rural small business concerns 
     that participate in the program; and
       (D) the change, if any, in the volume of exports by rural 
     small businesses that participate in the program during the 
     10-year period ending on the date of enactment of this Act;

[[Page S5579]]

       (2) a description of the coordination between programs of 
     the Administration and other Federal programs that promote 
     exports by rural small business concerns;
       (3) recommendations, if any, for improving the coordination 
     described in paragraph (2);
       (4) a description of any plan by the Administration to 
     market the international trade financing programs of the 
     Administration through lenders that--
       (A) serve rural small business concerns; and
       (B) are associated with financing programs of the 
     Department of Agriculture;
       (5) recommendations, if any, for improving coordination 
     between the counseling programs and export financing programs 
     of the Administration, in order to increase the volume of 
     exports by rural small business concerns; and
       (6) any additional information the Administrator determines 
     is necessary.

     SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS 
                   DEVELOPMENT CENTERS.

       Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) 
     is amended--
       (1) by striking ``(2) The Small Business Development 
     Centers'' and inserting the following:
       ``(2) Cooperation to provide international trade 
     services.--
       ``(A) Information and services.--The small business 
     development centers''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), as so designated, by inserting 
     ``(including State trade agencies),'' after ``local 
     agencies''; and
       (B) by adding at the end the following:
       ``(B) Cooperation with state trade agencies and export 
     assistance centers.--A small business development center that 
     counsels a small business concern on issues relating to 
     international trade shall--
       ``(i) consult with State trade agencies and Export 
     Assistance Centers to provide appropriate services to the 
     small business concern; and
       ``(ii) as necessary, refer the small business concern to a 
     State trade agency or an Export Assistance Center for further 
     counseling or assistance.
       ``(C) Definition.--In this paragraph, the term `Export 
     Assistance Center' has the same meaning as in section 22.''.

                 Subtitle C--Small Business Contracting

                       PART I--CONTRACT BUNDLING

     SEC. 1311. SMALL BUSINESS ACT.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1202, is amended by adding at the end the 
     following:
       ``(v) Multiple Award Contract.--In this Act, the term 
     `multiple award contract' means--
       ``(1) a multiple award task order contract or delivery 
     order contract that is entered into under the authority of 
     sections 303H through 303K of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253h through 
     253k); and
       ``(2) any other indefinite delivery, indefinite quantity 
     contract that is entered into by the head of a Federal agency 
     with 2 or more sources pursuant to the same solicitation.''.

     SEC. 1312. LEADERSHIP AND OVERSIGHT.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by adding at the end the following:
       ``(q) Bundling Accountability Measures.--
       ``(1) Teaming requirements.--Each Federal agency shall 
     include in each solicitation for any multiple award contract 
     above the substantial bundling threshold of the Federal 
     agency a provision soliciting bids from any responsible 
     source, including responsible small business concerns and 
     teams or joint ventures of small business concerns.
       ``(2) Policies on reduction of contract bundling.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 4219(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) establish a Government-wide policy regarding contract 
     bundling, including regarding the solicitation of teaming and 
     joint ventures under paragraph (1); and
       ``(ii) require that the policy established under clause (i) 
     be published on the website of each Federal agency.
       ``(B) Rationale for contract bundling.--Not later than 30 
     days after the date on which the head of a Federal agency 
     submits data certifications to the Administrator for Federal 
     Procurement Policy, the head of the Federal agency shall 
     publish on the website of the Federal agency a list and 
     rationale for any bundled contract for which the Federal 
     agency solicited bids or that was awarded by the Federal 
     agency.
       ``(3) Reporting.--Not later than 90 days after the date of 
     enactment of this subsection, and every 3 years thereafter, 
     the Administrator 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 procurement center representatives and commercial 
     market representatives, which shall--
       ``(A) identify each area for which the Administration has 
     assigned a procurement center representative or a commercial 
     market representative;
       ``(B) explain why the Administration selected the areas 
     identified under subparagraph (A); and
       ``(C) describe the activities performed by procurement 
     center representatives and commercial market 
     representatives.''.
       (b) Technical Correction.--Section 15(g) of the Small 
     Business Act (15 U.S.C. 644(g)) is amended by striking 
     ``Administrator of the Office of Federal Procurement Policy'' 
     each place it appears and inserting ``Administrator for 
     Federal Procurement Policy''.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report regarding the 
     procurement center representative program of the 
     Administration.
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) address ways to improve the effectiveness of the 
     procurement center representative program in helping small 
     business concerns obtain Federal contracts;
       (B) evaluate the effectiveness of procurement center 
     representatives and commercial marketing representatives; and
       (C) include recommendations, if any, on how to improve the 
     procurement center representative program.
       (d) Electronic Procurement Center Representative.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall implement a 3-
     year pilot electronic procurement center representative 
     program.
       (2) Report.--Not later than 30 days after the pilot program 
     under paragraph (1) ends, 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 pilot program.

     SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 44 as section 45; and
       (2) by inserting after section 43 the following:

     ``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       ``(a) Definitions.--In this section--
       ``(1) the term `Chief Acquisition Officer' means the 
     employee of a Federal agency designated as the Chief 
     Acquisition Officer for the Federal agency under section 
     16(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 414(a));
       ``(2) the term `consolidation of contract requirements', 
     with respect to contract requirements of a Federal agency, 
     means a use of a solicitation to obtain offers for a single 
     contract or a multiple award contract to satisfy 2 or more 
     requirements of the Federal agency for goods or services that 
     have been provided to or performed for the Federal agency 
     under 2 or more separate contracts lower in cost than the 
     total cost of the contract for which the offers are 
     solicited; and
       ``(3) the term `senior procurement executive' means an 
     official designated under section 16(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 414(c)) as the 
     senior procurement executive for a Federal agency.
       ``(b) Policy.--The head of each Federal agency shall ensure 
     that the decisions made by the Federal agency regarding 
     consolidation of contract requirements of the Federal agency 
     are made with a view to providing small business concerns 
     with appropriate opportunities to participate as prime 
     contractors and subcontractors in the procurements of the 
     Federal agency.
       ``(c) Limitation on Use of Acquisition Strategies Involving 
     Consolidation.--
       ``(1) In general.--Subject to paragraph (4), the head of a 
     Federal agency may not carry out an acquisition strategy that 
     includes a consolidation of contract requirements of the 
     Federal agency with a total value of more than $2,000,000, 
     unless the senior procurement executive or Chief Acquisition 
     Officer for the Federal agency, before carrying out the 
     acquisition strategy--
       ``(A) conducts market research;
       ``(B) identifies any alternative contracting approaches 
     that would involve a lesser degree of consolidation of 
     contract requirements;
       ``(C) makes a written determination that the consolidation 
     of contract requirements is necessary and justified;
       ``(D) identifies any negative impact by the acquisition 
     strategy on contracting with small business concerns; and
       ``(E) certifies to the head of the Federal agency that 
     steps will be taken to include small business concerns in the 
     acquisition strategy.
       ``(2) Determination that consolidation is necessary and 
     justified.--
       ``(A) In general.--A senior procurement executive or Chief 
     Acquisition Officer may determine that an acquisition 
     strategy involving a consolidation of contract requirements 
     is necessary and justified for the purposes of paragraph 
     (1)(C) if the benefits of the acquisition strategy 
     substantially exceed the benefits of each of the possible 
     alternative contracting approaches identified under paragraph 
     (1)(B).

[[Page S5580]]

       ``(B) Savings in administrative or personnel costs.--For 
     purposes of subparagraph (A), savings in administrative or 
     personnel costs alone do not constitute a sufficient 
     justification for a consolidation of contract requirements in 
     a procurement unless the expected total amount of the cost 
     savings, as determined by the senior procurement executive or 
     Chief Acquisition Officer, is expected to be substantial in 
     relation to the total cost of the procurement.
       ``(3) Benefits to be considered.--The benefits considered 
     for the purposes of paragraphs (1) and (2) may include cost 
     and, regardless of whether quantifiable in dollar amounts--
       ``(A) quality;
       ``(B) acquisition cycle;
       ``(C) terms and conditions; and
       ``(D) any other benefit.
       ``(4) Department of defense.--
       ``(A) In general.--The Department of Defense and each 
     military department shall comply with this section until 
     after the date described in subparagraph (C).
       ``(B) Rule.--After the date described in subparagraph (C), 
     contracting by the Department of Defense or a military 
     department shall be conducted in accordance with section 2382 
     of title 10, United States Code.
       ``(C) Date.--The date described in this subparagraph is the 
     date on which the Administrator determines the Department of 
     Defense or a military department is in compliance with the 
     Government-wide contracting goals under section 15.''.
       (b) Technical and Conforming Amendment.--Section 2382(b)(1) 
     of title 10, United States Code, is amended by striking ``An 
     official'' and inserting ``Subject to section 44(c)(4), an 
     official''.

     SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``Pilot Program'' means the Small Business 
     Teaming Pilot Program established under subsection (b); and
       (2) the term ``eligible organization'' means a well-
     established national organization for small business concerns 
     with the capacity to provide assistance to small business 
     concerns (which may be provided with the assistance of the 
     Administrator) relating to--
       (A) customer relations and outreach;
       (B) team relations and outreach; and
       (C) performance measurement and quality assurance.
       (b) Establishment.--The Administrator shall establish a 
     Small Business Teaming Pilot Program for teaming and joint 
     ventures involving small business concerns.
       (c) Grants.--Under the Pilot Program, the Administrator may 
     make grants to eligible organizations to provide assistance 
     and guidance to teams of small business concerns seeking to 
     compete for larger procurement contracts.
       (d) Contracting Opportunities.--The Administrator shall 
     work with eligible organizations receiving a grant under the 
     Pilot Program to recommend appropriate contracting 
     opportunities for teams or joint ventures of small business 
     concerns.
       (e) Report.--Not later than 1 year before the date on which 
     the authority to carry out the Pilot Program terminates under 
     subsection (f), the Administrator 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 on the effectiveness of the Pilot 
     Program.
       (f) Termination.--The authority to carry out the Pilot 
     Program shall terminate 5 years after the date of enactment 
     of this Act.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated for grants under subsection (c) $5,000,000 
     for each of fiscal years 2010 through 2015.

                   PART II--SUBCONTRACTING INTEGRITY

     SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS.

       Not later than 1 year after the date of enactment of this 
     Act, the Administrator, in consultation with the 
     Administrator for Federal Procurement Policy, shall 
     promulgate regulations relating to, and the Federal 
     Acquisition Regulatory Council established under section 
     25(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 421(a)) shall amend the Federal Acquisition Regulation 
     issued under section 25 of such Act to establish a policy on, 
     subcontracting compliance relating to small business 
     concerns, including assignment of compliance responsibilities 
     between contracting offices, small business offices, and 
     program offices and periodic oversight and review activities.

     SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

       Section 8(d)(6) of the Small Business Act (15 U.S.C. 
     637(d)(6)) is amended--
       (1) in subparagraph (E), by striking ``and'' at the end;
       (2) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end, the following:
       ``(G) a representation that the offeror or bidder will--
       ``(i) make a good faith effort to acquire articles, 
     equipment, supplies, services, or materials, or obtain the 
     performance of construction work from the small business 
     concerns used in preparing and submitting to the contracting 
     agency the bid or proposal, in the same amount and quality 
     used in preparing and submitting the bid or proposal; and
       ``(ii) provide to the contracting officer a written 
     explanation if the offeror or bidder fails to acquire 
     articles, equipment, supplies, services, or materials or 
     obtain the performance of construction work as described in 
     clause (i).''.

                     PART III--ACQUISITION PROCESS

     SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
                   BUSINESSES.

       Section 15 of the Small Business Act (15 U.S.C. 644), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(r) Multiple Award Contracts.--Not later than 1 year 
     after the date of enactment of this subsection, the 
     Administrator for Federal Procurement Policy and the 
     Administrator, in consultation with the Administrator of 
     General Services, shall, by regulation, establish guidance 
     under which Federal agencies may, at their discretion--
       ``(1) set aside part or parts of a multiple award contract 
     for small business concerns, including the subcategories of 
     small business concerns identified in subsection (g)(2);
       ``(2) notwithstanding the fair opportunity requirements 
     under section 2304c(b) of title 10, United States Code, and 
     section 303J(b) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders 
     placed against multiple award contracts for small business 
     concerns, including the subcategories of small business 
     concerns identified in subsection (g)(2); and
       ``(3) reserve 1 or more contract awards for small business 
     concerns under full and open multiple award procurements, 
     including the subcategories of small business concerns 
     identified in subsection (g)(2).''.

     SEC. 1332. MICRO-PURCHASE GUIDELINES.

       Not later than 1 year after the date of enactment of this 
     Act, the Director of the Office of Management and Budget, in 
     coordination with the Administrator of General Services, 
     shall issue guidelines regarding the analysis of purchase 
     card expenditures to identify opportunities for achieving and 
     accurately measuring fair participation of small business 
     concerns in purchases in an amount not in excess of the 
     micro-purchase threshold, as defined in section 32 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 428) (in 
     this section referred to as ``micro-purchases''), consistent 
     with the national policy on small business participation in 
     Federal procurements set forth in sections 2(a) and 15(g) of 
     the Small Business Act (15 U.S.C. 631(a) and 644(g)), and 
     dissemination of best practices for participation of small 
     business concerns in micro-purchases.

     SEC. 1333. AGENCY ACCOUNTABILITY.

       Section 15(g)(2) of the Small Business Act (15 U.S.C. 
     644(g)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) by striking ``Goals established'' and inserting the 
     following:
       ``(B) Goals established'';
       (3) by striking ``Whenever'' and inserting the following:
       ``(C) Whenever'';
       (4) by striking ``For the purpose of'' and inserting the 
     following:
       ``(D) For the purpose of'';
       (5) by striking ``The head of each Federal agency, in 
     attempting to attain such participation'' and inserting the 
     following:
       ``(E) The head of each Federal agency, in attempting to 
     attain the participation described in subparagraph (D)'';
       (6) in subparagraph (E), as so designated--
       (A) by striking ``(A) contracts'' and inserting ``(i) 
     contracts''; and
       (B) by striking ``(B) contracts'' and inserting ``(ii) 
     contracts''; and
       (7) by adding at the end the following:
       ``(F)(i) Each procurement employee or program manager 
     described in clause (ii) shall communicate to the 
     subordinates of the procurement employee or program manager 
     the importance of achieving small business goals.
       ``(ii) A procurement employee or program manager described 
     in this clause is a senior procurement executive, senior 
     program manager, or Director of Small and Disadvantaged 
     Business Utilization of a Federal agency having contracting 
     authority.''.

     SEC. 1334. PAYMENT OF SUBCONTRACTORS.

       Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     is amended by adding at the end the following:
       ``(12) Payment of Subcontractors.--
       ``(A) Definition.--In this paragraph, the term `covered 
     contract' means a contract relating to which a prime 
     contractor is required to develop a subcontracting plan under 
     paragraph (4) or (5).
       ``(B) Notice.--
       ``(i) In general.--A prime contractor for a covered 
     contract shall notify in writing the contracting officer for 
     the covered contract if the prime contractor pays a reduced 
     price to a subcontractor for goods and services upon 
     completion of the responsibilities of the subcontractor or 
     the payment to a subcontractor is more than 90 days past due 
     for goods or services provided for the covered contract for 
     which the Federal agency has paid the prime contractor.
       ``(ii) Contents.--A prime contractor shall include the 
     reason for the reduction in a payment to or failure to pay a 
     subcontractor in any notice made under clause (i).
       ``(C) Performance.--A contracting officer for a covered 
     contract shall consider the unjustified failure by a prime 
     contractor to make a full or timely payment to a 
     subcontractor in evaluating the performance of the prime 
     contractor.
       ``(D) Control of funds.--If the contracting officer for a 
     covered contract determines that a prime contractor has a 
     history of unjustified, untimely payments to contractors, the 
     contracting officer shall record

[[Page S5581]]

     the identity of the contractor in accordance with the 
     regulations promulgated under subparagraph (E).
       ``(E) Regulations.--Not later than 1 year after the date of 
     enactment of this paragraph, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) describe the circumstances under which a contractor 
     may be determined to have a history of unjustified, untimely 
     payments to subcontractors;
       ``(ii) establish a process for contracting officers to 
     record the identity of a contractor described in clause (i); 
     and
       ``(iii) require the identity of a contractor described in 
     clause (i) to be incorporated in, and made publicly available 
     through, the Federal Awardee Performance and Integrity 
     Information System, or any successor thereto.''.

     SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS 
                   DEMONSTRATION PROGRAM.

       (a) In General.--The Business Opportunity Development 
     Reform Act of 1988 (Public Law 100-656) is amended by 
     striking title VII (15 U.S.C. 644 note).
       (b) Effective Date and Applicability.--The amendment made 
     by this section--
       (1) shall take effect on the date of enactment of this Act; 
     and
       (2) apply to the first full fiscal year after the date of 
     enactment of this Act.

           PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

     SEC. 1341. POLICY AND PRESUMPTIONS.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1311, is amended by adding at the end the 
     following:
       ``(w) Presumption.--
       ``(1) In general.--In every contract, subcontract, 
     cooperative agreement, cooperative research and development 
     agreement, or grant which is set aside, reserved, or 
     otherwise classified as intended for award to small business 
     concerns, there shall be a presumption of loss to the United 
     States based on the total amount expended on the contract, 
     subcontract, cooperative agreement, cooperative research and 
     development agreement, or grant whenever it is established 
     that a business concern other than a small business concern 
     willfully sought and received the award by misrepresentation.
       ``(2) Deemed certifications.--The following actions shall 
     be deemed affirmative, willful, and intentional 
     certifications of small business size and status:
       ``(A) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement reserved, set aside, or 
     otherwise classified as intended for award to small business 
     concerns.
       ``(B) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement which in any way 
     encourages a Federal agency to classify the bid or proposal, 
     if awarded, as an award to a small business concern.
       ``(C) Registration on any Federal electronic database for 
     the purpose of being considered for award of a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research agreement, as a small business concern.
       ``(3) Certification by signature of responsible official.--
       ``(A) In general.--Each solicitation, bid, or application 
     for a Federal contract, subcontract, or grant shall contain a 
     certification concerning the small business size and status 
     of a business concern seeking the Federal contract, 
     subcontract, or grant.
       ``(B) Content of certifications.--A certification that a 
     business concern qualifies as a small business concern of the 
     exact size and status claimed by the business concern for 
     purposes of bidding on a Federal contract or subcontract, or 
     applying for a Federal grant, shall contain the signature of 
     an authorized official on the same page on which the 
     certification is contained.
       ``(4) Regulations.--The Administrator shall promulgate 
     regulations to provide adequate protections to individuals 
     and business concerns from liability under this subsection in 
     cases of unintentional errors, technical malfunctions, and 
     other similar situations.''.

     SEC. 1342. ANNUAL CERTIFICATION.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1341, is amended by adding at the end the 
     following:
       ``(x) Annual Certification.--
       ``(1) In general.--Each business certified as a small 
     business concern under this Act shall annually certify its 
     small business size and, if appropriate, its small business 
     status, by means of a confirming entry on the Online 
     Representations and Certifications Application database of 
     the Administration, or any successor thereto.
       ``(2) Regulations.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Inspector General and the Chief Counsel 
     for Advocacy of the Administration, shall promulgate 
     regulations to ensure that--
       ``(A) no business concern continues to be certified as a 
     small business concern on the Online Representations and 
     Certifications Application database of the Administration, or 
     any successor thereto, without fulfilling the requirements 
     for annual certification under this subsection; and
       ``(B) the requirements of this subsection are implemented 
     in a manner presenting the least possible regulatory burden 
     on small business concerns.''.

     SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT 
                   PERSONNEL.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Federal Acquisition Institute, in 
     consultation with the Administrator for Federal Procurement 
     Policy, the Defense Acquisition University, and the 
     Administrator, shall develop courses for acquisition 
     personnel concerning proper classification of business 
     concerns and small business size and status for purposes of 
     Federal contracts, subcontracts, grants, cooperative 
     agreements, and cooperative research and development 
     agreements.
       (b) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Section 3 of the Small Business Act (15 U.S.C. 
     632), as amended by section 1342, is amended by adding at the 
     end the following:
       ``(y) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Attorney General, shall issue a 
     Government-wide policy on prosecution of small business size 
     and status fraud, which shall direct Federal agencies to 
     appropriately publicize the policy.''.

     SEC. 1344. UPDATED SIZE STANDARDS.

       (a) Rolling Review.--
       (1) In general.--The Administrator shall--
       (A) during the 18-month period beginning on the date of 
     enactment of this Act, and during every 18-month period 
     thereafter, conduct a detailed review of not less than \1/3\ 
     of the size standards for small business concerns established 
     under section 3(a)(2) of the Small Business Act (15 U.S.C. 
     632(a)(2)), which shall include holding not less than 2 
     public forums located in different geographic regions of the 
     United States;
       (B) after completing each review under subparagraph (A) 
     make appropriate adjustments to the size standards 
     established under section 3(a)(2) of the Small Business Act 
     to reflect market conditions;
       (C) make publicly available--
       (i) information regarding the factors evaluated as part of 
     each review conducted under subparagraph (A); and
       (ii) information regarding the criteria used for any 
     revised size standards promulgated under subparagraph (B); 
     and
       (D) not later than 30 days after the date on which the 
     Administrator completes each review under subparagraph (A), 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives and make publicly 
     available a report regarding the review, including why the 
     Administrator--
       (i) used the factors and criteria described in subparagraph 
     (C); and
       (ii) adjusted or did not adjust each size standard that was 
     reviewed under the review.
       (2) Complete review of size standards.--The Administrator 
     shall ensure that each size standard for small business 
     concerns established under section 3(a)(2) of the Small 
     Business Act (15 U.S.C. 632(a)(2)) is reviewed under 
     paragraph (1) not less frequently than once every 5 years.
       (b) Rules.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     rules for conducting the reviews required under subsection 
     (a).

     SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the mentor-protege program of 
     the Administration for small business concerns participating 
     in programs under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)), and other relationships and strategic 
     alliances pairing a larger business and a small business 
     concern partner to gain access to Federal Government 
     contracts, to determine whether the programs and 
     relationships are effectively supporting the goal of 
     increasing the participation of small business concerns in 
     Government contracting.
       (b) Matters To Be Studied.--The study conducted under this 
     section shall include--
       (1) a review of a broad cross-section of industries; and
       (2) an evaluation of--
       (A) how each Federal agency carrying out a program 
     described in subsection (a) administers and monitors the 
     program;
       (B) whether there are systems in place to ensure that the 
     mentor-protege relationship, or similar affiliation, promotes 
     real gain to the protege, and is not just a mechanism to 
     enable participants that would not otherwise qualify under 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a)) to 
     receive contracts under that section; and
       (C) the degree to which protege businesses become able to 
     compete for Federal contracts without the assistance of a 
     mentor.
       (c) Report to Congress.--Not later than 180 days after the 
     date of enactment of this Act, the Comptroller General 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 on the 
     results of the study conducted under this section.

     SEC. 1346. CONTRACTING GOALS REPORTS.

       Section 15(h)(2) of the Small Business Act (15 U.S.C. 
     644(h)(2)) is amended by striking ``submit them'' and all 
     that follows through ``the following:'' and inserting 
     ``submit to

[[Page S5582]]

     the President and the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives the compilation and 
     analysis, which shall include the following:''.

     SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.

       (a) Definitions.--In this section--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the terms ``HUBZone small business concern'', ``small 
     business concern'', ``small business concern owned and 
     controlled by service-disabled veterans'', and ``small 
     business concern owned and controlled by women'' have the 
     same meanings as in section 3 of the Small Business Act (15 
     U.S.C. 632).
       (b) Contracting Improvements.--
       (1) Contracting opportunities.--Section 31(b)(2)(B) of the 
     Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended by 
     striking ``shall'' and inserting ``may''.
       (2) Contracting goals.--Section 15(g)(1) of the Small 
     Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth 
     sentence by inserting ``and subcontract'' after ``not less 
     than 3 percent of the total value of all prime contract''.
       (3) Mentor-protege programs.--The Administrator may 
     establish mentor-protege programs for small business concerns 
     owned and controlled by service-disabled veterans, small 
     business concerns owned and controlled by women, and HUBZone 
     small business concerns modeled on the mentor-protege program 
     of the Administration for small business concerns 
     participating in programs under section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)).
       (c) Small Business Contracting Programs Parity.--Section 
     31(b)(2) of the Small Business Act (15 U.S.C. 657a(b)(2)) is 
     amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``Notwithstanding any other provision of law--'';
       (2) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking ``a 
     contracting'' and inserting ``Sole source contracts.--A 
     contracting''; and
       (B) in clause (iii), by striking the semicolon at the end 
     and inserting a period;
       (3) in subparagraph (B)--
       (A) by striking ``a contract opportunity shall'' and 
     inserting ``Restricted competition.--A contract opportunity 
     may''; and
       (B) by striking ``; and'' and inserting a period; and
       (4) in subparagraph (C), by striking ``not later'' and 
     inserting ``Appeals.--Not later''.

    Subtitle D--Small Business Management and Counseling Assistance

     SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS 
                   PROGRAMS.

       (a) Microloan Program.--Section 7(m) of the Small Business 
     Act (15 U.S.C. 636(m)) is amended--
       (1) in paragraph (3)(B)--
       (A) by striking ``As a condition'' and inserting the 
     following:
       ``(i) In general.--Subject to clause (ii), as a 
     condition'';
       (B) by striking ``the Administration'' and inserting ``the 
     Administrator''; and
       (C) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''; and
       (2) in paragraph (4)(B)--
       (A) by striking ``As a condition'' and all that follows 
     through ``the Administration shall require'' and inserting 
     the following:
       ``(i) In general.--Subject to clause (ii), as a condition 
     of a grant made under subparagraph (A), the Administrator 
     shall require''; and
       (B) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''.
       (b) Women's Business Center Program.--Section 29(c) of the 
     Small Business Act (15 U.S.C. 656(c)) is amended--
       (1) in paragraph (1), by striking ``As a condition'' and 
     inserting ``Subject to paragraph (5), as a condition''; and
       (2) by adding at the end the following:
       ``(5) Waiver of non-federal share relating to technical 
     assistance and counseling.--
       ``(A) In general.--Upon request by a recipient 
     organization, and in accordance with this paragraph, the 
     Administrator may waive, in whole or in part, the requirement 
     to obtain non-Federal funds under this subsection for the 
     technical assistance and counseling activities of the 
     recipient organization carried out using financial assistance 
     under this section for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     paragraph for successive fiscal years.
       ``(B) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this paragraph, 
     the Administrator shall consider--
       ``(i) the economic conditions affecting the recipient 
     organization;
       ``(ii) the impact a waiver under this clause would have on 
     the credibility of the women's business center program under 
     this section;
       ``(iii) the demonstrated ability of the recipient 
     organization to raise non-Federal funds; and
       ``(iv) the performance of the recipient organization.
       ``(C) Limitations.--
       ``(i) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     if granting the waiver would undermine the credibility of the 
     women's business center program under this section.
       ``(ii) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     for fiscal year 2013 or any fiscal year thereafter.''.
       (c) Prospective Repeals.--Effective October 1, 2012, the 
     Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 7(m) (15 U.S.C. 636(m))--
       (A) in paragraph (3)(B)--
       (i) by striking ``Intermediary contribution.--'' and all 
     that follows through ``Subject to clause (ii), as'' and 
     inserting ``Intermediary contribution.--As''; and
       (ii) by striking clause (ii); and
       (B) in paragraph (4)(B)--
       (i) by striking ``Contribution.--'' and all that follows 
     through ``Subject to clause (ii), as'' and inserting 
     ``Contribution.--As''; and
       (ii) by striking clause (ii); and
       (2) in section 29(c) (15 U.S.C. 656(c))--
       (A) in paragraph (1), by striking ``Subject to paragraph 
     (5), as'' and inserting ``As''; and
       (B) by striking paragraph (5).

     SEC. 1402. GRANTS FOR SBDCS.

       (a) In General.--The Administrator may make grants to small 
     business development centers under section 21 of the Small 
     Business Act (15 U.S.C. 648) to provide targeted technical 
     assistance to small business concerns seeking access to 
     capital or credit, Federal procurement opportunities, energy 
     efficiency audits to reduce energy bills, opportunities to 
     export products or provide services to foreign customers, 
     adopting, making innovations in, and using broadband 
     technologies, or other assistance.
       (b) Allocation.--
       (1) In general.--Subject to paragraph (2), and 
     notwithstanding the requirements of section 21(a)(4)(C)(iii) 
     of the Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the 
     amount appropriated to carry out this section shall be 
     allocated under the formula under section 21(a)(4)(C)(i) of 
     that Act.
       (2) Minimum funding.--The amount made available under this 
     section to each State shall be not less than $325,000.
       (3) Types of uses.--Of the total amount of the grants 
     awarded by the Administrator under this section--
       (A) not less than 80 percent shall be used for counseling 
     of small business concerns; and
       (B) not more than 20 percent may be used for classes or 
     seminars.
       (c) No Non-Federal Share Required.--Notwithstanding section 
     21(a)(4)(A) of the Small Business Act (15 U.S.C. 
     648(a)(4)(A)), the recipient of a grant made under this 
     section shall not be required to provide non-Federal matching 
     funds.
       (d) Distribution.--Not later than 30 days after the date on 
     which amounts are appropriated to carry out this section, the 
     Administrator shall disburse the total amount appropriated.

[[Page S5583]]

       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator $50,000,000 to carry 
     out this section.

                 Subtitle E--Disaster Loan Improvement

     SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1343, is amended by adding at the end the 
     following:
       ``(z) Aquaculture Business Disaster Assistance.--Subject to 
     section 18(a) and notwithstanding section 18(b)(1), the 
     Administrator may provide disaster assistance under section 
     7(b)(2) to aquaculture enterprises that are small 
     businesses.''.

              Subtitle F--Small Business Regulatory Relief

     SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.

       Section 604(a) of title 5, United States Code, is amended--
       (1) in paragraph (1), by striking ``succinct'';
       (2) in paragraph (2), by striking ``summary'' each place it 
     appears and inserting ``statement'';
       (3) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (4) by inserting after paragraph (2) the following:
       ``(3) the response of the agency to any comments filed by 
     the Chief Counsel for Advocacy of the Small Business 
     Administration in response to the proposed rule, and a 
     detailed statement of any change made to the proposed rule in 
     the final rule as a result of the comments;''.

     SEC. 1602. OFFICE OF ADVOCACY.

       (a) In General.--Section 203 of Public Law 94-305 (15 
     U.S.C. 634c) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(6) carry out the responsibilities of the Office of 
     Advocacy under chapter 6 of title 5, United States Code.''.
       (b) Budgetary Line Item and Authorization of 
     Appropriations.--Title II of Public Law 94-305 (15 U.S.C. 
     634a et seq.) is amended by striking section 207 and 
     inserting the following:

     ``SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF 
                   APPROPRIATIONS.

       ``(a) Appropriation Requests.--Each budget of the United 
     States Government submitted by the President under section 
     1105 of title 31, United States Code, shall include a 
     separate statement of the amount of appropriations requested 
     for the Office of Advocacy of the Small Business 
     Administration, which shall be designated in a separate 
     account in the General Fund of the Treasury.
       ``(b) Administrative Operations.--The Administrator of the 
     Small Business Administration shall provide the Office of 
     Advocacy with appropriate and adequate office space at 
     central and field office locations, together with such 
     equipment, operating budget, and communications facilities 
     and services as may be necessary, and shall provide necessary 
     maintenance services for such offices and the equipment and 
     facilities located in such offices.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this title. Any amount appropriated under this 
     subsection shall remain available, without fiscal year 
     limitation, until expended.''.

                 Subtitle G--Appropriations Provisions

     SEC. 1701. SALARIES AND EXPENSES.

       (a) Appropriation.--There is appropriated, out of any money 
     in the Treasury not otherwise appropriated, for the fiscal 
     year ending September 30, 2010, $150,000,000, to remain 
     available until September 30, 2012, for an additional amount 
     for the appropriations account appropriated under the heading 
     ``salaries and expenses'' under the heading ``Small Business 
     Administration'', of which--
       (1) $50,000,000 is for grants to small business development 
     centers authorized under section 1402;
       (2) $1,000,000 is for the costs of administering grants 
     authorized under section 1402;
       (3) $30,000,000 is for grants to States for fiscal year 
     2011 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (4) $30,000,000 is for grants to States for fiscal year 
     2012 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (5) $2,500,000 is for the costs of administering grants 
     authorized under section 1207;
       (6) $5,000,000 is for grants for fiscal year 2011 under the 
     Small Business Teaming Pilot Program under section 1314; and
       (7) $5,000,000 is for grants for fiscal year 2012 under the 
     Small Business Teaming Pilot Program under section 1314.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Appropriations of the Senate and the Committee 
     on Appropriations of the House of Representatives a detailed 
     expenditure plan for using the funds provided under 
     subsection (a).

     SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.

       (a) In General.--There is appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2010, for an additional amount for the 
     appropriations account appropriated under the heading 
     ``business loans program account'' under the heading ``Small 
     Business Administration''--
       (1) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2011 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (2) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2012 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (3) $6,500,000, to remain available until September 30, 
     2012, for administrative expenses to carry out the direct 
     loan program authorized under section 7(l) of the Small 
     Business Act, as added by section 1131 of this title, which 
     may be transferred to and merged with the appropriations 
     account appropriated under the heading ``salaries and 
     expenses'' under the heading ``Small Business 
     Administration''; and
       (4) $15,000,000, to remain available until September 30, 
     2011, for the cost of guaranteed loans as authorized under 
     section 7(a) of the Small Business Act, including the cost of 
     modifying the loans.
       (b) Definition.--In this section, the term ``cost'' has the 
     meaning given that term in section 502 of the Congressional 
     Budget Act of 1974.

     SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND 
                   PROGRAM ACCOUNT.

       There is appropriated, out of any money in the Treasury not 
     otherwise appropriated, for the fiscal year ending September 
     30, 2010, for an additional amount for the appropriations 
     account appropriated under the heading ``community 
     development financial institutions fund program account'' 
     under the heading ``DEPARTMENT OF THE TREASURY'', 
     $13,500,000, to remain available until September 30, 2012, 
     for the costs of administering guarantees for bonds and notes 
     as authorized under section 114A of the Riegle Community 
     Development and Regulatory Improvement Act of 1994, as added 
     by section 1134 of this Act.

                        TITLE II--TAX PROVISIONS

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``Creating Small Business 
     Jobs Act of 2010''.

                   Subtitle A--Small Business Relief

                  PART I--PROVIDING ACCESS TO CAPITAL

     SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
                   CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Subsection (a) of section 1202 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(4) 100 percent exclusion for stock acquired during 
     certain periods in 2010.--In the case of qualified small 
     business stock acquired after the date of the enactment of 
     the Creating Small Business Jobs Act of 2010 and before 
     January 1, 2011--
       ``(A) paragraph (1) shall be applied by substituting `100 
     percent' for `50 percent',
       ``(B) paragraph (2) shall not apply, and
       ``(C) paragraph (7) of section 57(a) shall not apply.''.
       (b) Conforming Amendment.--Paragraph (3) of section 1202(a) 
     of the Internal Revenue Code of 1986 is amended--
       (1) by inserting ``certain periods in'' before ``2010'' in 
     the heading, and
       (2) by striking ``before January 1, 2011'' and inserting 
     ``on or before the date of the enactment of the Creating 
     Small Business Jobs Act of 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after the date of the enactment 
     of this Act.

     SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES FOR 2010 CARRIED BACK 5 YEARS.

       (a) In General.--Section 39(a) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(4) 5-year carryback for eligible small business 
     credits.--
       ``(A) In general.--Notwithstanding subsection (d), in the 
     case of eligible small business credits determined in the 
     first taxable year of the taxpayer beginning in 2010--
       ``(i) paragraph (1) shall be applied by substituting `each 
     of the 5 taxable years' for `the taxable year' in 
     subparagraph (A) thereof, and
       ``(ii) paragraph (2) shall be applied--

       ``(I) by substituting `25 taxable years' for `21 taxable 
     years' in subparagraph (A) thereof, and
       ``(II) by substituting `24 taxable years' for `20 taxable 
     years' in subparagraph (B) thereof.

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     has the meaning given such term by section 38(c)(5)(B).''.
       (b) Conforming Amendment.--Section 39(a)(3)(A) of the 
     Internal Revenue Code of 1986 is amended by inserting ``or 
     the eligible small business credits'' after ``credit)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009.

     SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES IN 2010 NOT SUBJECT TO ALTERNATIVE 
                   MINIMUM TAX.

       (a) In General.--Section 38(c) of the Internal Revenue Code 
     of 1986 is amended by redesignating paragraph (5) as 
     paragraph (6) and by inserting after paragraph (4) the 
     following new paragraph:

[[Page S5584]]

       ``(5) Special rules for eligible small business credits in 
     2010.--
       ``(A) In general.--In the case of eligible small business 
     credits determined in taxable years beginning in 2010--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credits, and
       ``(ii) in applying paragraph (1) to such credits--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the eligible 
     small business credits).

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     means the sum of the credits listed in subsection (b) which 
     are determined for the taxable year with respect to an 
     eligible small business. Such credits shall not be taken into 
     account under paragraph (2), (3), or (4).
       ``(C) Eligible small business.--For purposes of this 
     subsection, the term `eligible small business' means, with 
     respect to any taxable year--
       ``(i) a corporation the stock of which is not publicly 
     traded,
       ``(ii) a partnership, or
       ``(iii) a sole proprietorship,
     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.''.
       (b) Technical Amendment.--Section 55(e)(5) of the Internal 
     Revenue Code of 1986 is amended by striking ``38(c)(3)(B)'' 
     and inserting ``38(c)(4)(B)''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009, and to carrybacks of such credits.

     SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 
                   BUILT-IN GAINS TAX.

       (a) In General.--Subparagraph (B) of section 1374(d)(7) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) Special rules for 2009, 2010, and 2011.--No tax shall 
     be imposed on the net recognized built-in gain of an S 
     corporation--
       ``(i) in the case of any taxable year beginning in 2009 or 
     2010, if the 7th taxable year in the recognition period 
     preceded such taxable year, or
       ``(ii) in the case of any taxable year beginning in 2011, 
     if the 5th year in the recognition period preceded such 
     taxable year.
     The preceding sentence shall be applied separately with 
     respect to any asset to which paragraph (8) applies.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                    PART II--ENCOURAGING INVESTMENT

     SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; 
                   CERTAIN REAL PROPERTY TREATED AS SECTION 179 
                   PROPERTY.

       (a) Increased Limitations.--Subsection (b) of section 179 
     of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``shall not exceed'' and all that follows 
     in paragraph (1) and inserting ``shall not exceed--
       ``(A) $250,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $500,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $25,000 in the case of taxable years beginning after 
     2011.'', and
       (2) by striking ``exceeds'' and all that follows in 
     paragraph (2) and inserting ``exceeds--
       ``(A) $800,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $2,000,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $200,000 in the case of taxable years beginning after 
     2011.''.
       (b) Inclusion of Certain Real Property.--Section 179 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subsection:
       ``(f) Special Rules for Qualified Real Property.--
       ``(1) In general.--If a taxpayer elects the application of 
     this subsection for any taxable year beginning in 2010 or 
     2011, the term `section 179 property' shall include any 
     qualified real property which is--
       ``(A) of a character subject to an allowance for 
     depreciation,
       ``(B) acquired by purchase for use in the active conduct of 
     a trade or business, and
       ``(C) not described in the last sentence of subsection 
     (d)(1).
       ``(2) Qualified real property.--For purposes of this 
     subsection, the term `qualified real property' means--
       ``(A) qualified leasehold improvement property described in 
     section 168(e)(6),
       ``(B) qualified restaurant property described in section 
     168(e)(7) (without regard to the dates specified in 
     subparagraph (A)(i) thereof), and
       ``(C) qualified retail improvement property described in 
     section 168(e)(8) (without regard to subparagraph (E) 
     thereof).
       ``(3) Limitation.--For purposes of applying the limitation 
     under subsection (b)(1)(B), not more than $250,000 of the 
     aggregate cost which is taken into account under subsection 
     (a) for any taxable year may be attributable to qualified 
     real property.
       ``(4) Carryover limitation.--
       ``(A) In general.--Notwithstanding subsection (b)(3)(B), no 
     amount attributable to qualified real property may be carried 
     over to a taxable year beginning after 2011.
       ``(B) Treatment of disallowed amounts.--Except as provided 
     in subparagraph (C), to the extent that any amount is not 
     allowed to be carried over to a taxable year beginning after 
     2011 by reason of subparagraph (A), this title shall be 
     applied as if no election under this section had been made 
     with respect to such amount.
       ``(C) Amounts carried over from 2010.--If subparagraph (B) 
     applies to any amount (or portion of an amount) which is 
     carried over from a taxable year other than the taxpayer's 
     last taxable year beginning in 2011, such amount (or portion 
     of an amount) shall be treated for purposes of this title as 
     attributable to property placed in service on the first day 
     of the taxpayer's last taxable year beginning in 2011.
       ``(D) Allocation of amounts.--For purposes of applying this 
     paragraph and subsection (b)(3)(B) to any taxable year, the 
     amount which is disallowed under subsection (b)(3)(A) for 
     such taxable year which is attributed to qualified real 
     property shall be the amount which bears the same ratio to 
     the total amount so disallowed as--
       ``(i) the aggregate amount attributable to qualified real 
     property placed in service during such taxable year, 
     increased by the portion of any amount carried over to such 
     taxable year from a prior taxable year which is attributable 
     to such property, bears to
       ``(ii) the total amount of section 179 property placed in 
     service during such taxable year, increased by the aggregate 
     amount carried over to such taxable year from any prior 
     taxable year.
     For purposes of the preceding sentence, only section 179 
     property with respect to which an election was made under 
     subsection (c)(1) (determined without regard to subparagraph 
     (B) of this paragraph) shall be taken into account.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years beginning after such date.

     SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT 
                   OF THE BASIS OF CERTAIN QUALIFIED PROPERTY.

       (a) In General.--Paragraph (2) of section 168(k) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``January 1, 2011'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2012'', and
       (2) by striking ``January 1, 2010'' each place it appears 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``January 1, 2010'' and inserting ``January 1, 2011''.
       (2) The heading for clause (ii) of section 168(k)(2)(B) of 
     such Code is amended by striking ``Pre-january 1, 2010'' and 
     inserting ``Pre-january 1, 2011''.
       (3) Subparagraph (D) of section 168(k)(4) of such Code is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     a comma, and by adding at the end the following new clauses:
       ``(iv) `January 1, 2011' shall be substituted for `January 
     1, 2012' in subparagraph (A)(iv) thereof, and
       ``(v) `January 1, 2010' shall be substituted for `January 
     1, 2011' each place it appears in subparagraph (A) 
     thereof.''.
       (4) Subparagraph (B) of section 168(l)(5) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (5) Subparagraph (C) of section 168(n)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (6) Subparagraph (D) of section 1400L(b)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (7) Subparagraph (B) of section 1400N(d)(3) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years beginning after such date.

                  PART III--PROMOTING ENTREPRENEURSHIP

     SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-
                   UP EXPENDITURES IN 2010.

       (a) Start-up Expenditures.--Subsection (b) of section 195 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new paragraph:
       ``(3) Special rule for taxable years beginning in 2010.--In 
     the case of a taxable year beginning in 2010, paragraph 
     (1)(A)(ii) shall be applied--
       ``(A) by substituting `$10,000' for `$5,000', and
       ``(B) by substituting `$60,000' for `$50,000'.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED 
                   STATES TRADE REPRESENTATIVE TO DEVELOP MARKET 
                   ACCESS OPPORTUNITIES FOR UNITED STATES SMALL- 
                   AND MEDIUM-SIZED BUSINESSES AND TO ENFORCE 
                   TRADE AGREEMENTS.

       (a) In General.--There are authorized to be appropriated to 
     the Office of the United States Trade Representative 
     $5,230,000, to remain available until expended, for--

[[Page S5585]]

       (1) analyzing and developing opportunities for businesses 
     in the United States to access the markets of foreign 
     countries; and
       (2) enforcing trade agreements to which the United States 
     is a party.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated under subsection (a), the 
     United States Trade Representative shall--
       (1) give preference to those initiatives that the United 
     States Trade Representative determines will create or sustain 
     the greatest number of jobs in the United States or result in 
     the greatest benefit to the economy of the United States; and
       (2) consider the needs of small- and medium-sized 
     businesses in the United States with respect to--
       (A) accessing the markets of foreign countries; and
       (B) the enforcement of trade agreements to which the United 
     States is a party.

               PART IV--PROMOTING SMALL BUSINESS FAIRNESS

     SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE 
                   REPORTABLE TRANSACTIONS BASED ON RESULTING TAX 
                   BENEFITS.

       (a) In General.--Subsection (b) of section 6707A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the amount of the penalty under subsection (a) 
     with respect to any reportable transaction shall be 75 
     percent of the decrease in tax shown on the return as a 
     result of such transaction (or which would have resulted from 
     such transaction if such transaction were respected for 
     Federal tax purposes).
       ``(2) Maximum penalty.--The amount of the penalty under 
     subsection (a) with respect to any reportable transaction 
     shall not exceed--
       ``(A) in the case of a listed transaction, $200,000 
     ($100,000 in the case of a natural person), or
       ``(B) in the case of any other reportable transaction, 
     $50,000 ($10,000 in the case of a natural person).
       ``(3) Minimum penalty.--The amount of the penalty under 
     subsection (a) with respect to any transaction shall not be 
     less than $10,000 ($5,000 in the case of a natural 
     person).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after December 31, 2006.

     SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING 
                   SELF-EMPLOYMENT TAXES IN 2010.

       (a) In General.--Paragraph (4) of section 162(l) of the 
     Internal Revenue Code of 1986 is amended by inserting ``for 
     taxable years beginning before January 1, 2010, or after 
     December 31, 2010'' before the period.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                     Subtitle B--Revenue Provisions

                      PART I--REDUCING THE TAX GAP

     SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE 
                   PAYMENTS.

       (a) In General.--Section 6041 of the Internal Revenue Code 
     of 1986, as amended by section 9006 of the Patient Protection 
     and Affordable Care Act, is amended by redesignating 
     subsections (h) and (i) as subsections (i) and (j), 
     respectively, and by inserting after subsection (g) the 
     following new subsection:
       ``(h) Treatment of Rental Property Expense Payments.--
       ``(1) In general.--Solely for purposes of subsection (a) 
     and except as provided in paragraph (2), a person receiving 
     rental income from real estate shall be considered to be 
     engaged in a trade or business of renting property.
       ``(2) Exceptions.--Paragraph (1) shall not apply to--
       ``(A) any individual, including any individual who is an 
     active member of the uniformed services or an employee of the 
     intelligence community (as defined in section 
     121(d)(9)(C)(iv)), if substantially all rental income is 
     derived from renting the principal residence (within the 
     meaning of section 121) of such individual on a temporary 
     basis,
       ``(B) any individual who receives rental income of not more 
     than the minimal amount, as determined under regulations 
     prescribed by the Secretary, and
       ``(C) any other individual for whom the requirements of 
     this section would cause hardship, as determined under 
     regulations prescribed by the Secretary.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to payments made after December 31, 2010.

     SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.

       (a) Failure To File Correct Information Returns.--
       (1) In general.--Subsections (a)(1), (b)(1)(A), and 
     (b)(2)(A) of section 6721 of the Internal Revenue Code of 
     1986 are each amended by striking ``$50'' and inserting 
     ``$100''.
       (2) Aggregate annual limitation.--Subsections (a)(1), 
     (d)(1)(A), and (e)(3)(A) of section 6721 of such Code are 
     each amended by striking ``$250,000'' and inserting 
     ``$1,500,000''.
       (b) Reduction Where Correction Within 30 Days.--
       (1) In general.--Subparagraph (A) of section 6721(b)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$15'' and inserting ``$30''.
       (2) Aggregate annual limitation.--Subsections (b)(1)(B) and 
     (d)(1)(B) of section 6721 of such Code are each amended by 
     striking ``$75,000'' and inserting ``$250,000''.
       (c) Reduction Where Correction on or Before August 1.--
       (1) In general.--Subparagraph (A) of section 6721(b)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$30'' and inserting ``$60''.
       (2) Aggregate annual limitation.--Subsections (b)(2)(B) and 
     (d)(1)(C) of section 6721 of such Code are each amended by 
     striking ``$150,000'' and inserting ``$500,000''.
       (d) Aggregate Annual Limitations for Persons With Gross 
     Receipts of Not More Than $5,000,000.--
       (1) In general.--Paragraph (1) of section 6721(d) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``$100,000'' in subparagraph (A) and 
     inserting ``$500,000'',
       (B) by striking ``$25,000'' in subparagraph (B) and 
     inserting ``$75,000'', and
       (C) by striking ``$50,000'' in subparagraph (C) and 
     inserting ``$200,000''.
       (2) Technical amendment.--Paragraph (1) of section 6721(d) 
     of such Code is amended by striking ``such taxable year'' and 
     inserting ``such calendar year''.
       (e) Penalty in Case of Intentional Disregard.--Paragraph 
     (2) of section 6721(e) of the Internal Revenue Code of 1986 
     is amended by striking ``$100'' and inserting ``$250''.
       (f) Adjustment for Inflation.--Section 6721 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d) (other than paragraph (2)(A) thereof), and (e) shall 
     be increased by such dollar amount multiplied by the cost-of-
     living adjustment determined under section 1(f)(3) determined 
     by substituting `calendar year 2011' for `calendar year 1992' 
     in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (g) Failure to Furnish Correct Payee Statements.--Section 
     6722 of the Internal Revenue Code of 1986 is amended to read 
     as follows:

     ``SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATEMENTS.

       ``(a) Imposition of Penalty.--
       ``(1) General rule.--In the case of each failure described 
     in paragraph (2) by any person with respect to a payee 
     statement, such person shall pay a penalty of $100 for each 
     statement with respect to which such a failure occurs, but 
     the total amount imposed on such person for all such failures 
     during any calendar year shall not exceed $1,500,000.
       ``(2) Failures subject to penalty.--For purposes of 
     paragraph (1), the failures described in this paragraph are--
       ``(A) any failure to furnish a payee statement on or before 
     the date prescribed therefor to the person to whom such 
     statement is required to be furnished, and
       ``(B) any failure to include all of the information 
     required to be shown on a payee statement or the inclusion of 
     incorrect information.
       ``(b) Reduction Where Correction in Specified Period.--
       ``(1) Correction within 30 days.--If any failure described 
     in subsection (a)(2) is corrected on or before the day 30 
     days after the required filing date--
       ``(A) the penalty imposed by subsection (a) shall be $30 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during any calendar year which are so corrected 
     shall not exceed $250,000.
       ``(2) Failures corrected on or before august 1.--If any 
     failure described in subsection (a)(2) is corrected after the 
     30th day referred to in paragraph (1) but on or before August 
     1 of the calendar year in which the required filing date 
     occurs--
       ``(A) the penalty imposed by subsection (a) shall be $60 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during the calendar year which are so corrected 
     shall not exceed $500,000.
       ``(c) Exception for De Minimis Failures.--
       ``(1) In general.--If--
       ``(A) a payee statement is furnished to the person to whom 
     such statement is required to be furnished,
       ``(B) there is a failure described in subsection (a)(2)(B) 
     (determined after the application of section 6724(a)) with 
     respect to such statement, and
       ``(C) such failure is corrected on or before August 1 of 
     the calendar year in which the required filing date occurs,

     for purposes of this section, such statement shall be treated 
     as having been furnished with all of the correct required 
     information.
       ``(2) Limitation.--The number of payee statements to which 
     paragraph (1) applies for any calendar year shall not exceed 
     the greater of--
       ``(A) 10, or
       ``(B) one-half of 1 percent of the total number of payee 
     statements required to be filed by the person during the 
     calendar year.
       ``(d) Lower Limitations for Persons With Gross Receipts of 
     Not More Than $5,000,000.--

[[Page S5586]]

       ``(1) In general.--If any person meets the gross receipts 
     test of paragraph (2) with respect to any calendar year, with 
     respect to failures during such calendar year--
       ``(A) subsection (a)(1) shall be applied by substituting 
     `$500,000' for `$1,500,000',
       ``(B) subsection (b)(1)(B) shall be applied by substituting 
     `$75,000' for `$250,000', and
       ``(C) subsection (b)(2)(B) shall be applied by substituting 
     `$200,000' for `$500,000'.
       ``(2) Gross receipts test.--A person meets the gross 
     receipts test of this paragraph if such person meets the 
     gross receipts test of section 6721(d)(2).
       ``(e) Penalty in Case of Intentional Disregard.--If 1 or 
     more failures to which subsection (a) applies are due to 
     intentional disregard of the requirement to furnish a payee 
     statement (or the correct information reporting requirement), 
     then, with respect to each such failure--
       ``(1) subsections (b), (c), and (d) shall not apply,
       ``(2) the penalty imposed under subsection (a)(1) shall be 
     $250, or, if greater--
       ``(A) in the case of a payee statement other than a 
     statement required under section 6045(b), 6041A(e) (in 
     respect of a return required under section 6041A(b)), 
     6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of the 
     aggregate amount of the items required to be reported 
     correctly, or
       ``(B) in the case of a payee statement required under 
     section 6045(b), 6050K(b), or 6050L(c), 5 percent of the 
     aggregate amount of the items required to be reported 
     correctly, and
       ``(3) in the case of any penalty determined under paragraph 
     (2)--
       ``(A) the $1,500,000 limitation under subsection (a) shall 
     not apply, and
       ``(B) such penalty shall not be taken into account in 
     applying such limitation to penalties not determined under 
     paragraph (2).
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d)(1), and (e) shall be increased by such dollar amount 
     multiplied by the cost-of-living adjustment determined under 
     section 1(f)(3) determined by substituting `calendar year 
     2011' for `calendar year 1992' in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply with respect to information returns required to 
     be filed on or after January 1, 2011.

     SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER 
                   ENFORCEMENT ACTIONS.

       (a) In General.--The Commissioner of Internal Revenue, in 
     consultation with the Secretary of the Treasury, shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate an 
     annual report on the penalties assessed by the Internal 
     Revenue Service during the preceding year under each of the 
     following provisions of the Internal Revenue Code of 1986:
       (1) Section 6662A (relating to accuracy-related penalty on 
     understatements with respect to reportable transactions).
       (2) Section 6700(a) (relating to promoting abusive tax 
     shelters).
       (3) Section 6707 (relating to failure to furnish 
     information regarding reportable transactions).
       (4) Section 6707A (relating to failure to include 
     reportable transaction information with return).
       (5) Section 6708 (relating to failure to maintain lists of 
     advisees with respect to reportable transactions).
       (b) Additional Information.--The report required under 
     subsection (a) shall also include information on the 
     following with respect to each year:
       (1) Any action taken under section 330(b) of title 31, 
     United States Code, with respect to any reportable 
     transaction (as defined in section 6707A(c) of the Internal 
     Revenue Code of 1986).
       (2) Any extension of the time for assessment of tax 
     enforced, or assessment of any amount under such an 
     extension, under paragraph (10) of section 6501(c) of the 
     Internal Revenue Code of 1986.
       (c) Date of Report.--The first report required under 
     subsection (a) shall be submitted not later than December 31, 
     2010.

     SEC. 2104. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS 
                   RELATING TO PROPERTY.

       (a) In General.--Section 6331(h)(3) of the Internal Revenue 
     Code of 1986 is amended by striking ``goods or services'' and 
     inserting ``property, goods, or services''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to levies issued after the date of the enactment 
     of this Act.

     SEC. 2105. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES 
                   OF CERTAIN FEDERAL CONTRACTORS.

       (a) In General.--Subsection (f) of section 6330 of the 
     Internal Revenue Code of 1986 is amended by striking ``or'' 
     at the end of paragraph (2), by inserting ``or'' at the end 
     of paragraph (3), and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) the Secretary has served a Federal contractor 
     levy,''.
       (b) Federal Contractor Levy.--Subsection (h) of section 
     6330 of the Internal Revenue Code of 1986 is amended--
       (1) by striking all that precedes ``any levy in connection 
     with the collection'' and inserting the following:
       ``(h) Definitions Related to Exceptions.--For purposes of 
     subsection (f)--
       ``(1) Disqualified employment tax levy.--A disqualified 
     employment tax levy is''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Federal contractor levy.--A Federal contractor levy 
     is any levy if the person whose property is subject to the 
     levy (or any predecessor thereof) is a Federal contractor.''.
       (c) Conforming Amendment.--The heading of subsection (f) of 
     section 6330 of the Internal Revenue Code of 1986 is amended 
     by striking ``Jeopardy and State Refund Collection'' and 
     inserting ``Exceptions''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to levies issued after the date of the enactment 
     of this Act.

     SEC. 2106. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC 
                   PAYMENTS.

       (a) In General.--Section 6657 of the Internal Revenue Code 
     of 1986 is amended--
       (1) by striking ``If any check or money order in payment of 
     any amount'' and inserting ``If any instrument in payment, by 
     any commercially acceptable means, of any amount'', and
       (2) by striking ``such check'' each place it appears and 
     inserting ``such instrument''.
       (b) Effective Dates.--The amendments made by this section 
     shall apply to instruments tendered after the date of the 
     enactment of this Act.

               PART II--PROMOTING RETIREMENT PREPARATION

     SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS 
                   ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH 
                   CONTRIBUTIONS.

       (a) In General.--Section 402A(e)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following:
       ``(C) an eligible deferred compensation plan (as defined in 
     section 457(b)) of an eligible employer described in section 
     457(e)(1)(A).''.
       (b) Elective Deferrals.--Section 402A(e)(2) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(2) Elective deferral.--The term `elective deferral' 
     means--
       ``(A) any elective deferral described in subparagraph (A) 
     or (C) of section 402(g)(3), and
       ``(B) any elective deferral of compensation by an 
     individual under an eligible deferred compensation plan (as 
     defined in section 457(b)) of an eligible employer described 
     in section 457(e)(1)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO 
                   DESIGNATED ROTH ACCOUNTS.

       (a) In General.--Section 402A(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(4) Taxable rollovers to designated roth accounts.--
       ``(A) In general.--Notwithstanding sections 402(c), 
     403(b)(8), and 457(e)(16), in the case of any distribution to 
     which this paragraph applies--
       ``(i) there shall be included in gross income any amount 
     which would be includible were it not part of a qualified 
     rollover contribution,
       ``(ii) section 72(t) shall not apply, and
       ``(iii) unless the taxpayer elects not to have this clause 
     apply, any amount required to be included in gross income for 
     any taxable year beginning in 2010 by reason of this 
     paragraph shall be so included ratably over the 2-taxable-
     year period beginning with the first taxable year beginning 
     in 2011.

     Any election under clause (iii) for any distributions during 
     a taxable year may not be changed after the due date for such 
     taxable year.
       ``(B) Distributions to which paragraph applies.--In the 
     case of an applicable retirement plan which includes a 
     qualified Roth contribution program, this paragraph shall 
     apply to a distribution from such plan other than from a 
     designated Roth account which is contributed in a qualified 
     rollover contribution (within the meaning of section 408A(e)) 
     to the designated Roth account maintained under such plan for 
     the benefit of the individual to whom the distribution is 
     made.
       ``(C) Coordination with limit.--Any distribution to which 
     this paragraph applies shall not be taken into account for 
     purposes of paragraph (1).
       ``(D) Other rules.--The rules of subparagraphs (D), (E), 
     and (F) of section 408A(d)(3) (as in effect for taxable years 
     beginning after 2009) shall apply for purposes of this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions after the date of the enactment 
     of this Act.

[[Page S5587]]

                 PART III--CLOSING UNINTENDED LOOPHOLES

     SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL 
                   PRODUCER CREDIT.

       (a) In General.--Clause (iii) of section 40(b)(6)(E) of the 
     Internal Revenue Code of 1986, as added by the Health Care 
     and Education Reconciliation Act of 2010, is amended--
       (1) by striking ``or'' at the end of subclause (I),
       (2) by striking the period at the end of subclause (II) and 
     inserting ``, or'',
       (3) by adding at the end the following new subclause:

       ``(III) such fuel has an acid number greater than 25.'', 
     and

       (4) by striking ``unprocessed'' in the heading and 
     inserting ``certain''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuels sold or used on or after January 1, 
     2010.

         PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

     SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under paragraph (2) of section 561 of the 
     Hiring Incentives to Restore Employment Act in effect on the 
     date of the enactment of this Act is increased by 36 
     percentage points.

                   TITLE III--SMALL BUSINESS LENDING

                Subtitle A--Small Business Lending Fund

     SEC. 3101. PURPOSE.

       The purpose of this subtitle is to address the ongoing 
     effects of the financial crisis on small businesses by 
     providing temporary authority to the Secretary of the 
     Treasury to make capital investments in eligible institutions 
     in order to increase the availability of credit for small 
     businesses.

     SEC. 3102. DEFINITIONS.

       For purposes of this subtitle:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the meaning given 
     such term under section 3(q) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(q)).
       (3) Bank holding company.--The term ``bank holding 
     company'' has the meaning given such term under section 
     2(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841(2)(a)(1)).
       (4) Call report.--The term ``call report'' means--
       (A) reports of Condition and Income submitted to the Office 
     of the Comptroller of the Currency, the Board of Governors of 
     the Federal Reserve System, and the Federal Deposit Insurance 
     Corporation;
       (B) the Office of Thrift Supervision Thrift Financial 
     Report;
       (C) any report that is designated by the Office of the 
     Comptroller of the Currency, the Board of Governors of the 
     Federal Reserve System, the Federal Deposit Insurance 
     Corporation, or the Office of Thrift Supervision, as 
     applicable, as a successor to any report referred to in 
     subparagraph (A) or (B);
       (D) reports of Condition and Income as designated through 
     guidance developed by the Secretary, in consultation with the 
     Director of the Community Development Financial Institutions 
     Fund; and
       (E) with respect to an eligible institution for which no 
     report exists that is described under subparagraph (A), (B), 
     (C), or (D), such other report or set of information as the 
     Secretary, in consultation with the Administrator of the 
     Small Business Administration, may prescribe.
       (5) CDCI.--The term ``CDCI'' means the Community 
     Development Capital Initiative created by the Secretary under 
     the Troubled Asset Relief Program established by the 
     Emergency Economic Stabilization Act of 2008.
       (6) CDCI investment.--The term ``CDCI investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CDCI that has not been repaid.
       (7) CDFI; community development financial institution.--The 
     terms ``CDFI'' and ``community development financial 
     institution'' have the meaning given the term ``community 
     development financial institution'' under the Riegle 
     Community Development and Regulatory Improvement Act of 1994.
       (8) CDLF; community development loan fund.--The terms 
     ``CDLF'' and ``community development loan fund'' mean any 
     entity that--
       (A) is certified by the Department of the Treasury as a 
     community development financial institution loan fund;
       (B) is exempt from taxation under the Internal Revenue Code 
     of 1986; and
       (C) had assets less than or equal to $10,000,000,000 as of 
     the end of the fourth quarter of calendar year 2009.
       (9) CPP.--The term ``CPP'' means the Capital Purchase 
     Program created by the Secretary under the Troubled Asset 
     Relief Program established by the Emergency Economic 
     Stabilization Act of 2008.
       (10) CPP investment.--The term ``CPP investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CPP that has not been repaid.
       (11) Eligible institution.--The term ``eligible 
     institution'' means--
       (A) any insured depository institution, which--
       (i) is not controlled by a bank holding company or savings 
     and loan holding company that is also an eligible 
     institution;
       (ii) has total assets of equal to or less than 
     $10,000,000,000, as reported in the call report of the 
     insured depository institution as of the end of the fourth 
     quarter of calendar year 2009; and
       (iii) is not directly or indirectly controlled by any 
     company or other entity that has total consolidated assets of 
     more than $10,000,000,000, as so reported;
       (B) any bank holding company which has total consolidated 
     assets of equal to or less than $10,000,000,000, as reported 
     in the call report of the bank holding company as of the end 
     of the fourth quarter of calendar year 2009;
       (C) any savings and loan holding company which has total 
     consolidated assets of equal to or less than $10,000,000,000, 
     as reported in the call report of the savings and loan 
     holding company as of the end of the fourth quarter of 
     calendar year 2009; and
       (D) any community development financial institution loan 
     fund which has total assets of equal to or less than 
     $10,000,000,000, as reported in audited financial statements 
     for the fiscal year of the community development financial 
     institution loan fund that ends in calendar year 2009.
       (12) Fund.--The term ``Fund'' means the Small Business 
     Lending Fund established under section 3103(a)(1).
       (13) Insured depository institution.--The term ``insured 
     depository institution'' has the meaning given such term 
     under section 3(c)(2) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1813(c)(2)).
       (14) Minority-owned and women-owned business.--The terms 
     ``minority-owned business'' and ``women-owned business'' 
     shall have the meaning given the terms ``minority-owned 
     business'' and ``women's business'', respectively, under 
     section 21A(r)(4) of the Federal Home Loan Bank Act (12 
     U.S.C. 1441A(r)(4)).
       (15) Program.--The term ``Program'' means the Small 
     Business Lending Fund Program authorized under section 
     3103(a)(2).
       (16) Savings and loan holding company.--The term ``savings 
     and loan holding company'' has the meaning given such term 
     under section 10(a)(1)(D) of the Home Owners' Loan Act (12 
     U.S.C. 1467a(a)(1)(D)).
       (17) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (18) Small business lending.--
       (A) In general.--The term ``small business lending'' means 
     lending, as defined by and reported in an eligible 
     institutions' quarterly call report, where each loan 
     comprising such lending is one of the following types:
       (i) Commercial and industrial loans.
       (ii) Owner-occupied nonfarm, nonresidential real estate 
     loans.
       (iii) Loans to finance agricultural production and other 
     loans to farmers.
       (iv) Loans secured by farmland.
       (B) Exclusion.--No loan that has an original amount greater 
     than $10,000,000 or that goes to a business with more than 
     $50,000,000 in revenues shall be included in the measure.
       (C) Treatment of holding companies.--In the case of 
     eligible institutions that are bank holding companies or 
     savings and loan holding companies having one or more insured 
     depository institution subsidiaries, small business lending 
     shall be measured based on the combined small business 
     lending reported in the call report of the insured depository 
     institution subsidiaries.
       (19) Veteran-owned business.--
       (A) The term ``veteran-owned business'' means a business--
       (i) more than 50 percent of the ownership or control of 
     which is held by 1 or more veterans;
       (ii) more than 50 percent of the net profit or loss of 
     which accrues to 1 or more veterans; and
       (iii) a significant percentage of senior management 
     positions of which are held by veterans.
       (B) For purposes of this paragraph, the term ``veteran'' 
     has the meaning given such term in section 101(2) of title 
     38, United States Code.

     SEC. 3103. SMALL BUSINESS LENDING FUND.

       (a) Fund and Program.--
       (1) Fund established.--There is established in the Treasury 
     of the United States a fund to be known as the ``Small 
     Business Lending Fund'', which shall be administered by the 
     Secretary.
       (2) Programs authorized.--The Secretary is authorized to 
     establish the Small Business Lending Fund Program for using 
     the Fund consistent with this subtitle.
       (b) Use of Fund.--
       (1) In general.--Subject to paragraph (2), the Fund shall 
     be available to the Secretary, without further appropriation 
     or fiscal year limitation, for the costs of purchases 
     (including commitments to purchase), and modifications of 
     such purchases, of preferred

[[Page S5588]]

     stock and other financial instruments from eligible 
     institutions on such terms and conditions as are determined 
     by the Secretary in accordance with this subtitle. For 
     purposes of this paragraph and with respect to an eligible 
     institution, the term ``other financial instruments'' shall 
     include only debt instruments for which such eligible 
     institution is fully liable or equity equivalent capital of 
     the eligible institution. Such debt instruments may be 
     subordinated to the claims of other creditors of the eligible 
     institution.
       (2) Maximum purchase limit.--The aggregate amount of 
     purchases (and commitments to purchase) made pursuant to 
     paragraph (1) may not exceed $30,000,000,000.
       (3) Proceeds used to pay down public debt.--All funds 
     received by the Secretary in connection with purchases made 
     pursuant to paragraph (1), including interest payments, 
     dividend payments, and proceeds from the sale of any 
     financial instrument, shall be paid into the general fund of 
     the Treasury for reduction of the public debt.
       (4) Limitation on purchases from cdlfs.--
       (A) In general.--Not more than 1 percent of the maximum 
     purchase limit of the Program, pursuant to paragraph (2), may 
     be used to make purchases from community development loan 
     funds.
       (B) Eligibility standards.--The Secretary, in consultation 
     with the Community Development Financial Institutions Fund, 
     shall develop eligibility criteria to determine the financial 
     ability of a CDLF to participate in the Program and repay the 
     investment. Such criteria shall include the following:
       (i) Ratio of net assets to total assets is at least 20 
     percent.
       (ii) Ratio of loan loss reserves to loans and leases 90 
     days or more delinquent (including loans sold with full 
     recourse) is at least 30 percent.
       (iii) Positive net income measured on a 3-year rolling 
     average.
       (iv) Operating liquidity ratio of at least 1.0 for the 4 
     most recent quarters and for one or both of the two preceding 
     years.
       (v) Ratio of loans and leases 90 days or more delinquent 
     (including loans sold with full recourse) to total equity 
     plus loan loss reserves is less than 40 percent.
       (C) Requirement to submit audited financial statements.--
     CDLFs participating in the Program shall submit audited 
     financial statements to the Secretary, have a clean audit 
     opinion, and have at least 3 years of operating experience.
       (c) Credits to the Fund.--There shall be credited to the 
     Fund amounts made available pursuant to section 3108, to the 
     extent provided by appropriations Acts.
       (d) Terms.--
       (1) Application.--
       (A) Institutions with assets of $1,000,000,000 or less.--
     Eligible institutions having total assets equal to or less 
     than $1,000,000,000, as reported in a call report as of the 
     end of the fourth quarter of calendar year 2009, may apply to 
     receive a capital investment from the Fund in an amount not 
     exceeding 5 percent of risk-weighted assets, as reported in 
     the call report immediately preceding the date of 
     application, less the amount of any CDCI investment and any 
     CPP investment.
       (B) Institutions with assets of more than $1,000,000,000 
     and less than or equal to $10,000,000,000.--Eligible 
     institutions having total assets of more than $1,000,000,000 
     but less than $10,000,000,000, as of the end of the fourth 
     quarter of calendar year 2009, may apply to receive a capital 
     investment from the Fund in an amount not exceeding 3 percent 
     of risk-weighted assets, as reported in the call report 
     immediately preceding the date of application, less the 
     amount of any CDCI investment and any CPP investment.
       (C) Treatment of holding companies.--In the case of an 
     eligible institution that is a bank holding company or a 
     savings and loan holding company having one or more insured 
     depository institution subsidiaries, total assets shall be 
     measured based on the combined total assets reported in the 
     call report of the insured depository institution 
     subsidiaries as of the end of the fourth quarter of calendar 
     year 2009 and risk-weighted assets shall be measured based on 
     the combined risk-weighted assets of the insured depository 
     institution subsidiaries as reported in the call report 
     immediately preceding the date of application.
       (D) Treatment of applicants that are institutions 
     controlled by holding companies.--If an eligible institution 
     that applies to receive a capital investment under the 
     Program is under the control of a bank holding company or a 
     savings and loan holding company, then the Secretary may use 
     the Fund to purchase preferred stock or other financial 
     instruments from the top-tier bank holding company or savings 
     and loan holding company of such eligible institution, as 
     applicable. For purposes of this subparagraph, the term 
     ``control'' with respect to a bank holding company shall have 
     the same meaning as in section 2(a)(2) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841(2)(a)(2)). For purposes 
     of this subparagraph, the term ``control'' with respect to a 
     savings and loan holding company shall have the same meaning 
     as in 10(a)(2) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(a)(2)).
       (E) Requirement to provide a small business lending plan.--
     At the time that an applicant submits an application to the 
     Secretary for a capital investment under the Program, the 
     applicant shall deliver to the appropriate Federal banking 
     agency, and, for applicants that are State-chartered banks, 
     to the appropriate State banking regulator, a small business 
     lending plan describing how the applicant's business strategy 
     and operating goals will allow it to address the needs of 
     small businesses in the areas it serves, as well as a plan to 
     provide linguistically and culturally appropriate outreach, 
     where appropriate. In the case of eligible institutions that 
     are community development loan funds, this plan shall be 
     submitted to the Secretary. This plan shall be confidential 
     supervisory information.
       (F) Treatment of applicants that are community development 
     loan funds.--Eligible institutions that are community 
     development loan funds may apply to receive a capital 
     investment from the Fund in an amount not exceeding 5 percent 
     of total assets, as reported in the audited financial 
     statements for the fiscal year of the eligible institution 
     that ends in calendar year 2009.
       (2) Consultation with regulators.--For each eligible 
     institution that applies to receive a capital investment 
     under the Program, the Secretary shall--
       (A) consult with the appropriate Federal banking agency or, 
     in the case of an eligible institution that is a non-
     depository community development financial institution, the 
     Community Development Financial Institution Fund, for the 
     eligible institution to determine whether the eligible 
     institution may receive such capital investment;
       (B) in the case of an eligible institution that is a State-
     chartered bank, consider any views received from the State 
     banking regulator of the State of the eligible institution 
     regarding the financial condition of the eligible 
     institution; and
       (C) in the case of a community development financial 
     institution loan fund, consult with the Community Development 
     Financial Institution Fund.
       (3) Ineligibility of institutions on fdic problem bank 
     list.--
       (A) In general.--An eligible institution may not receive 
     any capital investment under the Program if--
       (i) such institution is on the FDIC problem bank list; or
       (ii) such institution has been removed from the FDIC 
     problem bank list for less than 90 days.
       (B) Construction.--Nothing in subparagraph (A) shall be 
     construed as limiting the discretion of the Secretary to deny 
     the application of an eligible institution that is not on the 
     FDIC problem bank list.
       (C) Fdic problem bank list defined.--For purposes of this 
     subparagraph, the term ``FDIC problem bank list'' means the 
     list of institutions with a current rating of 4 or 5 under 
     the Uniform Financial Institutions Rating System, or such 
     other list designated by the Federal Deposit Insurance 
     Corporation.
       (4) Incentives to lend.--
       (A) Requirements on preferred stock and other financial 
     instruments.--Any preferred stock or other financial 
     instrument issued to Treasury by an eligible institution 
     receiving a capital investment under the Program shall 
     provide that--
       (i) the rate at which dividends or interest are payable 
     shall be 5 percent per annum initially;
       (ii) within the first 2 years after the date of the capital 
     investment under the Program, the rate may be adjusted based 
     on the amount of an eligible institution's small business 
     lending. Changes in the amount of small business lending 
     shall be measured against the average amount of small 
     business lending reported by the eligible institution in its 
     call reports for the 4 full quarters immediately preceding 
     the date of enactment of this Act, minus adjustments from 
     each quarterly balance in respect of--

       (I) net loan charge offs with respect to small business 
     lending; and
       (II) gains realized by the eligible institution resulting 
     from mergers, acquisitions or purchases of loans after 
     origination and syndication; which adjustments shall be 
     determined in accordance with guidance promulgated by the 
     Secretary; and

       (iii) during any calendar quarter during the initial 2-year 
     period referred to in clause (ii), an institution's rate 
     shall be adjusted to reflect the following schedule, based on 
     that institution's change in the amount of small business 
     lending relative to the baseline--

       (I) if the amount of small business lending has increased 
     by less than 2.5 percent, the dividend or interest rate shall 
     be 5 percent;
       (II) if the amount of small business lending has increased 
     by 2.5 percent or greater, but by less than 5.0 percent, the 
     dividend or interest rate shall be 4 percent;
       (III) if the amount of small business lending has increased 
     by 5.0 percent or greater, but by less than 7.5 percent, the 
     dividend or interest rate shall be 3 percent;
       (IV) if the amount of small business lending has increased 
     by 7.5 percent or greater, and but by less than 10.0 percent, 
     the dividend or interest rate shall be 2 percent; or
       (V) if the amount of small business lending has increased 
     by 10 percent or greater, the dividend or interest rate shall 
     be 1 percent.

       (B) Basis of initial rate.--The initial dividend or 
     interest rate shall be based on call report data published in 
     the quarter immediately preceding the date of the capital 
     investment under the Program.
       (C) Timing of rate adjustments.--Any rate adjustment shall 
     occur in the calendar quarter following the publication of 
     call report data, such that the rate based on call report 
     data from any one calendar quarter,

[[Page S5589]]

     which is published in the first following calendar quarter, 
     shall be adjusted in that first following calendar quarter 
     and payable in the second following quarter.
       (D) Rate following initial 2-year period.--Generally, the 
     rate based on call report data from the eighth calendar 
     quarter after the date of the capital investment under the 
     Program shall be payable until the expiration of the 4\1/2\-
     year period that begins on the date of the investment. In the 
     case where the amount of small business lending has remained 
     the same or decreased relative to the institution's baseline 
     in the eighth quarter after the date of the capital 
     investment under the Program, the rate shall be 7 percent 
     until the expiration of the 4\1/2\-year period that begins on 
     the date of the investment.
       (E) Rate following initial 4\1/2\ -year period.--The 
     dividend or interest rate paid on any preferred stock or 
     other financial instrument issued by an eligible institution 
     that receives a capital investment under the Program shall 
     increase to 9 percent at the end of the 4\1/2\-year period 
     that begins on the date of the capital investment under the 
     Program.
       (F) Limitation on rate reductions with respect to certain 
     amount.--The reduction in the dividend or interest rate 
     payable to Treasury by any eligible institution shall be 
     limited such that the rate reduction shall not apply to a 
     dollar amount of the investment made by Treasury that is 
     greater than the dollar amount increase in the amount of 
     small business lending realized under this program. The 
     Secretary may issue guidelines that will apply to new capital 
     investments limiting the amount of capital available to 
     eligible institutions consistent with this limitation.
       (G) Rate adjustments for s corporation.--Before making a 
     capital investment in an eligible institution that is an S 
     corporation or a corporation organized on a mutual basis, the 
     Secretary may adjust the dividend or interest rate on the 
     financial instrument to be issued to the Secretary, from the 
     dividend or interest rate that would apply under 
     subparagraphs (A) through (F), to take into account any 
     differential tax treatment of securities issued by such 
     eligible institution. For purpose of this subparagraph, the 
     term ``S corporation'' has the same meaning as in section 
     1361(a) of the Internal Revenue Code of 1986.
       (H) Repayment deadline.--The capital investment received by 
     an eligible institution under the Program shall be evidenced 
     by preferred stock or other financial instrument that--
       (i) includes, as a term and condition, that the capital 
     investment will--

       (I) be repaid not later than the end of the 10-year period 
     beginning on the date of the capital investment under the 
     Program; or
       (II) at the end of such 10-year period, be subject to such 
     additional terms as the Secretary shall prescribe, which 
     shall include a requirement that the stock or instrument 
     shall carry the highest dividend or interest rate payable; 
     and

       (ii) provides that the term and condition described under 
     clause (i) shall not apply if the application of that term 
     and condition would adversely affect the capital treatment of 
     the stock or financial instrument under current or successor 
     applicable capital provisions compared to a capital 
     instrument with identical terms other than the term and 
     condition described under clause (i).
       (I) Requirements on financial instruments issued by a 
     community development financial institution loan fund.--Any 
     equity equivalent capital issued to the Treasury by a 
     community development loan fund receiving a capital 
     investment under the Program shall provide that the rate at 
     which interest is payable shall be 2 percent per annum for 8 
     years. After 8 years, the rate at which interest is payable 
     shall be 9 percent.
       (5) Additional incentives to repay.--The Secretary may, by 
     regulation or guidance issued under section 3104(9), 
     establish repayment incentives in addition to the incentive 
     in paragraph (4)(E) that will apply to new capital 
     investments in a manner that the Secretary determines to be 
     consistent with the purposes of this subtitle.
       (6) Capital purchase program refinance.--
       (A) In general.--The Secretary shall, in a manner that the 
     Secretary determines to be consistent with the purposes of 
     this subtitle, issue regulations and other guidance to permit 
     eligible institutions to refinance securities issued to 
     Treasury under the CDCI and the CPP for securities to be 
     issued under the Program.
       (B) Prohibition on participation by non-paying cpp 
     participants.--Subparagraph (A) shall not apply to any 
     eligible institution that has missed more than one dividend 
     payment due under the CPP. For purposes of this subparagraph, 
     a CPP dividend payment that is submitted within 60 days of 
     the due date of such payment shall not be considered a missed 
     dividend payment.
       (7) Outreach to minorities, women, and veterans.--The 
     Secretary shall require eligible institutions receiving 
     capital investments under the Program to provide 
     linguistically and culturally appropriate outreach and 
     advertising in the applicant pool describing the availability 
     and application process of receiving loans from the eligible 
     institution that are made possible by the Program through the 
     use of print, radio, television or electronic media outlets 
     which target organizations, trade associations, and 
     individuals that--
       (A) represent or work within or are members of minority 
     communities;
       (B) represent or work with or are women; and
       (C) represent or work with or are veterans.
       (8) Additional terms.--The Secretary may, by regulation or 
     guidance issued under section 3104(9), make modifications 
     that will apply to new capital investments in order to manage 
     risks associated with the administration of the Fund in a 
     manner consistent with the purposes of this subtitle.
       (9) Minimum underwriting standards.--The appropriate 
     Federal banking agency for an eligible institution that 
     receives funds under the Program shall within 60 days issue 
     guidance regarding prudent underwriting standards that must 
     be used for loans made by the eligible institution using such 
     funds..

     SEC. 3104. ADDITIONAL AUTHORITIES OF THE SECRETARY.

       The Secretary may take such actions as the Secretary deems 
     necessary to carry out the authorities in this subtitle, 
     including, without limitation, the following:
       (1) The Secretary may use the services of any agency or 
     instrumentality of the United States or component thereof on 
     a reimbursable basis, and any such agency or instrumentality 
     or component thereof is authorized to provide services as 
     requested by the Secretary using all authorities vested in or 
     delegated to that agency, instrumentality, or component.
       (2) The Secretary may enter into contracts, including 
     contracts for services authorized by section 3109 of title 5, 
     United States Code.
       (3) The Secretary may designate any bank, savings 
     association, trust company, security broker or dealer, asset 
     manager, or investment adviser as a financial agent of the 
     Federal Government and such institution shall perform all 
     such reasonable duties related to this subtitle as financial 
     agent of the Federal Government as may be required. The 
     Secretary shall have authority to amend existing agreements 
     with financial agents, entered into during the 2-year period 
     before the date of enactment of this Act, to perform 
     reasonable duties related to this subtitle.
       (4) The Secretary may exercise any rights received in 
     connection with any preferred stock or other financial 
     instruments or assets purchased or acquired pursuant to the 
     authorities granted under this subtitle.
       (5) Subject to section 3103(b)(3), the Secretary may manage 
     any assets purchased under this subtitle, including revenues 
     and portfolio risks therefrom.
       (6) The Secretary may sell, dispose of, transfer, exchange 
     or enter into securities loans, repurchase transactions, or 
     other financial transactions in regard to, any preferred 
     stock or other financial instrument or asset purchased or 
     acquired under this subtitle, upon terms and conditions and 
     at a price determined by the Secretary.
       (7) The Secretary may manage or prohibit conflicts of 
     interest that may arise in connection with the administration 
     and execution of the authorities provided under this 
     subtitle.
       (8) The Secretary may establish and use vehicles, subject 
     to supervision by the Secretary, to purchase, hold, and sell 
     preferred stock or other financial instruments and issue 
     obligations.
       (9) The Secretary may, in consultation with the 
     Administrator of the Small Business Administration, issue 
     such regulations and other guidance as may be necessary or 
     appropriate to define terms or carry out the authorities or 
     purposes of this subtitle.

     SEC. 3105. CONSIDERATIONS.

       In exercising the authorities granted in this subtitle, the 
     Secretary shall take into consideration--
       (1) increasing the availability of credit for small 
     businesses;
       (2) providing funding to minority-owned eligible 
     institutions and other eligible institutions that serve small 
     businesses that are minority-, veteran-, and women-owned and 
     that also serve low- and moderate-income, minority, and other 
     underserved or rural communities;
       (3) protecting and increasing American jobs;
       (4) increasing the opportunity for small business 
     development in areas with high unemployment rates that exceed 
     the national average;
       (5) ensuring that all eligible institutions may apply to 
     participate in the program established under this subtitle, 
     without discrimination based on geography;
       (6) providing transparency with respect to use of funds 
     provided under this subtitle;
       (7) minimizing the cost to taxpayers of exercising the 
     authorities;
       (8) promoting and engaging in financial education to would-
     be borrowers; and
       (9) providing funding to eligible institutions that serve 
     small businesses directly affected by the discharge of oil 
     arising from the explosion on and sinking of the mobile 
     offshore drilling unit Deepwater Horizon and small businesses 
     in communities that have suffered negative economic effects 
     as a result of that discharge with particular consideration 
     to States along the coast of the Gulf of Mexico.

     SEC. 3106. REPORTS.

       The Secretary shall provide to the appropriate committees 
     of Congress--
       (1) within 7 days of the end of each month commencing with 
     the first month in which transactions are made under the 
     Program, a written report describing all of the transactions 
     made during the reporting period pursuant to the authorities 
     granted under this subtitle;

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       (2) after the end of March and the end of September, 
     commencing September 30, 2010, a written report on all 
     projected costs and liabilities, all operating expenses, 
     including compensation for financial agents, and all 
     transactions made by the Fund, which shall include 
     participating institutions and amounts each institution has 
     received under the Program; and
       (3) within 7 days of the end of each calendar quarter 
     commencing with the first calendar quarter in which 
     transactions are made under the Program, a written report 
     detailing how eligible institutions participating in the 
     Program have used the funds such institutions received under 
     the Program.

     SEC. 3107. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the Program through 
     the Office of Small Business Lending Fund Program Oversight 
     established under subsection (b).
       (b) Office of Small Business Lending Fund Program 
     Oversight.--
       (1) Establishment.--There is hereby established within the 
     Office of the Inspector General of the Department of the 
     Treasury a new office to be named the ``Office of Small 
     Business Lending Fund Program Oversight'' to provide 
     oversight of the Program.
       (2) Leadership.--The Inspector General shall appoint a 
     Special Deputy Inspector General for SBLF Program Oversight 
     to lead the Office, with commensurate staff, who shall report 
     directly to the Inspector General and who shall be 
     responsible for the performance of all auditing and 
     investigative activities relating to the Program.
       (3) Reporting.--
       (A) In general.--The Inspector General shall issue a report 
     no less than two times a year to the Congress and the 
     Secretary devoted to the oversight provided by the Office, 
     including any recommendations for improvements to the 
     Program.
       (B) Recommendations.--With respect to any deficiencies 
     identified in a report under subparagraph (A), the Secretary 
     shall either--
       (i) take actions to address such deficiencies; or
       (ii) certify to the appropriate committees of Congress that 
     no action is necessary or appropriate.
       (4) Coordination.--The Inspector General, in maximizing the 
     effectiveness of the Office, shall work with other Offices of 
     Inspector General, as appropriate, to minimize duplication of 
     effort and ensure comprehensive oversight of the Program.
       (5) Termination.--The Office shall terminate at the end of 
     the 6-month period beginning on the date on which all capital 
     investments are repaid under the Program or the date on which 
     the Secretary determines that any remaining capital 
     investments will not be repaid.
       (6) Definitions.--For purposes of this subsection:
       (A) Office.--The term ``Office'' means the Office of Small 
     Business Lending Fund Program Oversight established under 
     paragraph (1).
       (B) Inspector general.--The term ``Inspector General'' 
     means the Inspector General of the Department of the 
     Treasury.
       (c) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (d) Required Certifications.--
       (1) Eligible institution certification.--Each eligible 
     institution that participates in the Program must certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in 31 U.S.C. 5312(a)(2) 
     and (c)(1)(A), to implement reasonable procedures to verify 
     the identity of any person seeking to open an account, to the 
     extent reasonable and practicable, maintain records of the 
     information used to verify the person's identity, and 
     determine whether the person appears on any lists of known or 
     suspected terrorists or terrorist organizations provided to 
     the financial institution by any government agency.
       (2) Loan recipients.--With respect to funds received by an 
     eligible institution under the Program, any business 
     receiving a loan from the eligible institution using such 
     funds after the date of the enactment of this Act shall 
     certify to such eligible institution that the principals of 
     such business have not been convicted of a sex offense 
     against a minor (as such terms are defined in section 111 of 
     the Sex Offender Registration and Notification Act (42 U.S.C. 
     16911)).
       (e) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

     SEC. 3108. CREDIT REFORM; FUNDING.

       (a) Credit Reform.--The cost of purchases of preferred 
     stock and other financial instruments made as capital 
     investments under this subtitle shall be determined as 
     provided under the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661 et seq.).
       (b) Funds Made Available.--There are hereby appropriated, 
     out of funds in the Treasury not otherwise appropriated, such 
     sums as may be necessary to pay the costs of $30,000,000,000 
     of capital investments in eligible institutions, including 
     the costs of modifying such investments, and reasonable costs 
     of administering the program of making, holding, managing, 
     and selling the capital investments.

     SEC. 3109. TERMINATION AND CONTINUATION OF AUTHORITIES.

       (a) Termination of Investment Authority.--The authority to 
     make capital investments in eligible institutions, including 
     commitments to purchase preferred stock or other instruments, 
     provided under this subtitle shall terminate 1 year after the 
     date of enactment of this Act.
       (b) Continuation of Other Authorities.--The authorities of 
     the Secretary under section 3104 shall not be limited by the 
     termination date in subsection (a).

     SEC. 3110. PRESERVATION OF AUTHORITY.

       Nothing in this subtitle may be construed to limit the 
     authority of the Secretary under any other provision of law.

     SEC. 3111. ASSURANCES.

       (a) Small Business Lending Fund Separate From TARP.--The 
     Small Business Lending Fund Program is established as 
     separate and distinct from the Troubled Asset Relief Program 
     established by the Emergency Economic Stabilization Act of 
     2008. An institution shall not, by virtue of a capital 
     investment under the Small Business Lending Fund Program, be 
     considered a recipient of the Troubled Asset Relief Program.
       (b) Change in Law.--If, after a capital investment has been 
     made in an eligible institution under the Program, there is a 
     change in law that modifies the terms of the investment or 
     program in a materially adverse respect for the eligible 
     institution, the eligible institution may, after consultation 
     with the appropriate Federal banking agency for the eligible 
     institution, repay the investment without impediment.

     SEC. 3112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, 
                   VETERAN-OWNED, AND MINORITY-OWNED BUSINESSES.

       (a) Study.--The Secretary shall conduct a study of the 
     impact of the Program on women-owned businesses, veteran-
     owned businesses, and minority-owned businesses.
       (b) Report.--Not later than one year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study conducted pursuant to 
     subsection (a). To the extent possible, the Secretary shall 
     disaggregate the results of such study by ethnic group and 
     gender.
       (c) Information Provided to the Secretary.--Eligible 
     institutions that participate in the Program shall provide 
     the Secretary with such information as the Secretary may 
     require to carry out the study required by this section.

     SEC. 3113. SENSE OF CONGRESS.

       It is the sense of Congress that the Federal Deposit 
     Insurance Corporation and other bank regulators are sending 
     mixed messages to banks regarding regulatory capital 
     requirements and lending standards, which is a contributing 
     cause of decreased small business lending and increased 
     regulatory uncertainty at community banks.

           Subtitle B--State Small Business Credit Initiative

     SEC. 3201. SHORT TITLE.

       This subtitle may be cited as the ``State Small Business 
     Credit Initiative Act of 2010''.

     SEC. 3202. DEFINITIONS.

       In this subtitle, the following definitions shall apply:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency''--
       (A) has the same meaning as in section 3(q) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(q)); and
       (B) includes the National Credit Union Administration Board 
     in the case of any credit union the deposits of which are 
     insured in accordance with the Federal Credit Union Act.
       (3) Enrolled loan.--The term ``enrolled loan'' means a loan 
     made by a financial institution lender that is enrolled by a 
     participating State in an approved State capital access 
     program in accordance with this subtitle.
       (4) Federal contribution.--The term ``Federal 
     contribution'' means the portion of the contribution made by 
     a participating State to, or for the account of, an approved 
     State program that is made with Federal funds allocated to 
     the State by the Secretary under section 3203.
       (5) Financial institution.--The term ``financial 
     institution'' means any insured depository institution, 
     insured credit union, or

[[Page S5591]]

     community development financial institution, as those terms 
     are each defined in section 103 of the Riegle Community 
     Development and Regulatory Improvement Act of 1994 (12 U.S.C. 
     4702)
       (6) Participating state.--The term ``participating State'' 
     means any State that has been approved for participation in 
     the Program under section 3204.
       (7) Program.--The term ``Program'' means the State Small 
     Business Credit Initiative established under this subtitle.
       (8) Qualifying loan or swap funding facility.--The term 
     ``qualifying loan or swap funding facility'' means a 
     contractual arrangement between a participating State and a 
     private financial entity under which--
       (A) the participating State delivers funds to the entity as 
     collateral;
       (B) the entity provides funding from the arrangement back 
     to the participating State; and
       (C) the full amount of resulting funding from the 
     arrangement, less any fees and other costs of the 
     arrangement, is contributed to, or for the account of, an 
     approved State program.
       (9) Reserve fund.--The term ``reserve fund'' means a fund, 
     established by a participating State, dedicated to a 
     particular financial institution lender, for the purposes 
     of--
       (A) depositing all required premium charges paid by the 
     financial institution lender and by each borrower receiving a 
     loan under an approved State program from that financial 
     institution lender;
       (B) depositing contributions made by the participating 
     State, including State contributions made with Federal 
     contributions; and
       (C) covering losses on enrolled loans by disbursing 
     accumulated funds.
       (10) State.--The term ``State'' means--
       (A) a State of the United States;
       (B) the District of Columbia, the Commonwealth of Puerto 
     Rico, the Commonwealth of Northern Mariana Islands, Guam, 
     American Samoa, and the United States Virgin Islands;
       (C) when designated by a State of the United States, a 
     political subdivision of that State that the Secretary 
     determines has the capacity to participate in the Program; 
     and
       (D) under the circumstances described in section 3204(d), a 
     municipality of a State of the United States to which the 
     Secretary has given a special permission under section 
     3204(d).
       (11) State capital access program.--The term ``State 
     capital access program'' means a program of a State that--
       (A) uses public resources to promote private access to 
     credit; and
       (B) meets the eligibility criteria in section 3205(c).
       (12) State other credit support program.--The term ``State 
     other credit support program''--
       (A) means a program of a State that--
       (i) uses public resources to promote private access to 
     credit;
       (ii) is not a State capital access program; and
       (iii) meets the eligibility criteria in section 3206(c); 
     and
       (B) includes, collateral support programs, loan 
     participation programs, State-run venture capital fund 
     programs, and credit guarantee programs.
       (13) State program.--The term ``State program'' means a 
     State capital access program or a State other credit support 
     program.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.

     SEC. 3203. FEDERAL FUNDS ALLOCATED TO STATES.

       (a) Program Established; Purpose.--There is established the 
     State Small Business Credit Initiative, to be administered by 
     the Secretary. Under the Program, the Secretary shall 
     allocate Federal funds to participating States and make the 
     allocated funds available to the participating States as 
     provided in this section for the uses described in this 
     section.
       (b) Allocation Formula.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall allocate Federal 
     funds to participating States so that each State is eligible 
     to receive an amount equal to the average of the respective 
     amounts that the State--
       (A) would receive under the 2009 allocation, as determined 
     under paragraph (2); and
       (B) would receive under the 2010 allocation, as determined 
     under paragraph (3).
       (2) 2009 allocation formula.--
       (A) In general.--The Secretary shall determine the 2009 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2008 State employment 
     decline bears to the aggregate of the 2008 State employment 
     declines for all States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2008 state employment decline defined.--In this 
     paragraph and with respect to a State, the term ``2008 State 
     employment decline'' means the excess (if any) of--
       (i) the number of individuals employed in such State 
     determined for December 2007; over
       (ii) the number of individuals employed in such State 
     determined for December 2008.
       (3) 2010 allocation formula.--
       (A) In general.--The Secretary shall determine the 2010 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2009 unemployment 
     number bears to the aggregate of the 2009 unemployment 
     numbers for all of the States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2009 unemployment number defined.--In this paragraph 
     and with respect to a State, the term ``2009 unemployment 
     number'' means the number of individuals within such State 
     who were determined to be unemployed by the Bureau of Labor 
     Statistics for December 2009.
       (c) Availability of Allocated Amount.--The amount allocated 
     by the Secretary to each participating State under subsection 
     (b) shall be made available to the State as follows:
       (1) Allocated amount generally to be available to state in 
     one-thirds.--
       (A) In general.--The Secretary shall--
       (i) apportion the participating State's allocated amount 
     into thirds;
       (ii) transfer to the participating State the first \1/3\ 
     when the Secretary approves the State for participation under 
     section 3204; and
       (iii) transfer to the participating State each successive 
     \1/3\ when the State has certified to the Secretary that it 
     has expended, transferred, or obligated 80 percent of the 
     last transferred \1/3\ for Federal contributions to, or for 
     the account of, State programs.
       (B) Authority to withhold pending audit.--The Secretary may 
     withhold the transfer of any successive \1/3\ pending results 
     of a financial audit.
       (C) Inspector general audits.--
       (i) In general.--The Inspector General of the Department of 
     the Treasury shall carry out an audit of the participating 
     State's use of allocated Federal funds transferred to the 
     State.
       (ii) Recoupment of misused transferred funds required.--The 
     allocation agreement between the Secretary and the 
     participating State shall provide that the Secretary shall 
     recoup any allocated Federal funds transferred to the 
     participating State if the results of the an audit include a 
     finding that there was an intentional or reckless misuse of 
     transferred funds by the State.
       (iii) Penalty for misstatement.--Any participating State 
     that is found to have intentionally misstated any report 
     issued to the Secretary under the Program shall be ineligible 
     to receive any additional funds under the Program. Funds that 
     had been allocated or that would otherwise have been 
     allocated to such participating State shall be paid into the 
     general fund of the Treasury for reduction of the public 
     debt.
       (iv) Municipalities.--In this subparagraph, the term 
     ``participating State'' shall include a municipality given 
     special permission to participate in the Program, under 
     section 3204(d).
       (D) Exception.--The Secretary may, in the Secretary's 
     discretion, transfer the full amount of the participating 
     State's allocated amount to the State in a single transfer if 
     the participating State applies to the Secretary for approval 
     to use the full amount of the allocation as collateral for a 
     qualifying loan or swap funding facility.
       (2) Transferred amounts.--Each amount transferred to a 
     participating State under this section shall remain available 
     to the State until used by the State as permitted under 
     paragraph (3).
       (3) Use of transferred funds.--Each participating State may 
     use funds transferred to it under this section only--
       (A) for making Federal contributions to, or for the account 
     of, an approved State program;
       (B) as collateral for a qualifying loan or swap funding 
     facility;
       (C) in the case of the first \1/3\ transferred, for paying 
     administrative costs incurred by the State in implementing an 
     approved State program in an amount not to exceed 5 percent 
     of that first \1/3\; or
       (D) in the case of each successive \1/3\ transferred, for 
     paying administrative costs incurred by the State in 
     implementing an approved State program in an amount not to 
     exceed 3 percent of that successive \1/3\.
       (4) Termination of availability of amounts not transferred 
     within 2 years of participation.--Any portion of a 
     participating State's allocated amount that has not been 
     transferred to the State under this section by the end of the 
     2-year period beginning on the date that the Secretary 
     approves the State for participation may be deemed by the 
     Secretary to be no longer allocated to the State and no 
     longer available to the State and shall be returned to the 
     General Fund of the Treasury.
       (5) Transferred amounts not assistance.--The amounts 
     transferred to a participating State under this section shall 
     not be considered assistance for purposes of subtitle V of 
     title 31, United States Code.
       (6) Definitions.--In this section--
       (A) the term ``allocated amount'' means the total amount of 
     Federal funds allocated by the Secretary under subsection (b) 
     to the participating State; and
       (B) the term ``\1/3\'' means--
       (i) in the case of the first \1/3\ and second \1/3\, an 
     amount equal to 33 percent of a participating State's 
     allocated amount; and
       (ii) in the case of the last \1/3\, an amount equal to 34 
     percent of a participating State's allocated amount.

[[Page S5592]]

     SEC. 3204. APPROVING STATES FOR PARTICIPATION.

       (a) Application.--Any State may apply to the Secretary for 
     approval to be a participating State under the Program and to 
     be eligible for an allocation of Federal funds under the 
     Program.
       (b) General Approval Criteria.--The Secretary shall approve 
     a State to be a participating State, if--
       (1) a specific department, agency, or political subdivision 
     of the State has been designated to implement a State program 
     and participate in the Program;
       (2) all legal actions necessary to enable such designated 
     department, agency, or political subdivision to implement a 
     State program and participate in the Program have been 
     accomplished;
       (3) the State has filed an application with the Secretary 
     for approval of a State capital access program under section 
     3205 or approval as a State other credit support program 
     under section 3206, in each case within the time period 
     provided in the respective section; and
       (4) the State and the Secretary have executed an allocation 
     agreement that--
       (A) conforms to the requirements of this subtitle;
       (B) ensures that the State program complies with such 
     national standards as are established by the Secretary under 
     section 3209(a)(2);
       (C) sets forth internal control, compliance, and reporting 
     requirements as established by the Secretary, and such other 
     terms and conditions necessary to carry out the purposes of 
     this subtitle, including an agreement by the State to allow 
     the Secretary to audit State programs;
       (D) requires that the State program be fully positioned, 
     within 90 days of the State's execution of the allocation 
     agreement with the Secretary, to act on providing the kind of 
     credit support that the State program was established to 
     provide; and
       (E) includes an agreement by the State to deliver to the 
     Secretary, and update annually, a schedule describing how the 
     State intends to apportion among its State programs the 
     Federal funds allocated to the State.
       (c) Contractual Arrangements for Implementation of State 
     Programs.--A State may be approved to be a participating 
     State, and be eligible for an allocation of Federal funds 
     under the Program, if the State has contractual arrangements 
     for the implementation and administration of its State 
     program with--
       (1) an existing, approved State program administered by 
     another State; or
       (2) an authorized agent of, or entity supervised by, the 
     State, including for-profit and not-for-profit entities.
       (d) Special Permission.--
       (1) Circumstances when a municipality may apply directly.--
     If a State does not, within 60 days after the date of 
     enactment of this Act, file with the Secretary a notice of 
     its intent to apply for approval by the Secretary of a State 
     program or within 9 months after the date of enactment of 
     this Act, file with the Secretary a complete application for 
     approval of a State program, the Secretary may grant to 
     municipalities of that State a special permission that will 
     allow them to apply directly to the Secretary without the 
     State for approval to be participating municipalities.
       (2) Timing requirements applicable to municipalities 
     applying directly.--To qualify for the special permission, a 
     municipality of a State shall be required, within 12 months 
     after the date of enactment of this Act, to file with the 
     Secretary a complete application for approval by the 
     Secretary of a State program.
       (3) Notices of intent and applications from more than 1 
     municipality.--A municipality of a State may combine with 1 
     or more other municipalities of that State to file a joint 
     notice of intent to file and a joint application.
       (4) Approval criteria.--The general approval criteria in 
     paragraphs (2) and (4) shall apply.
       (5) Allocation to municipalities.--
       (A) If more than 3.--If more than 3 municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to the 3 
     municipalities with the largest populations.
       (B) If 3 or fewer.--If 3 or fewer municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to each applicant 
     municipality or combination of municipalities.
       (6) Apportionment of allocated amount among participating 
     municipalities.--If the Secretary approves municipalities to 
     be participating municipalities under this subsection, the 
     Secretary shall apportion the full amount of the Federal 
     funds that are allocated to that State to municipalities that 
     are approved under this subsection in amounts proportionate 
     to the population of those municipalities, based on the most 
     recent available decennial census.
       (7) Approving state programs for municipalities.--If the 
     Secretary approves municipalities to be participating 
     municipalities under this subsection, the Secretary shall 
     take into account the additional considerations in section 
     3206(d) in making the determination under section 3205 or 
     3206 that the State program or programs to be implemented by 
     the participating municipalities, including a State capital 
     access program, is eligible for Federal contributions to, or 
     for the account of, the State program.

     SEC. 3205. APPROVING STATE CAPITAL ACCESS PROGRAMS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, State capital access program that 
     meets the eligibility criteria in subsection (c) may apply to 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions to the reserve fund.
       (b) Approval.--The Secretary shall approve such State 
     capital access program as eligible for Federal contributions 
     to the reserve fund if--
       (1) within 60 days after the date of enactment of this Act, 
     the State has filed with the Secretary a notice of intent to 
     apply for approval by the Secretary of a State capital access 
     program;
       (2) within 9 months after the date of enactment of this 
     Act, the State has filed with the Secretary a complete 
     application for approval by the Secretary of a capital access 
     program;
       (3) the State satisfies the requirements of subsections (a) 
     and (b) of section 3204; and
       (4) the State capital access program meets the eligibility 
     criteria in subsection (c).
       (c) Eligibility Criteria for State Capital Access 
     Programs.--- For a State capital access program to be 
     approved under this section, that program shall be required 
     to be a program of the State that--
       (1) provides portfolio insurance for business loans based 
     on a separate loan-loss reserve fund for each financial 
     institution;
       (2) requires insurance premiums to be paid by the financial 
     institution lenders and by the business borrowers to the 
     reserve fund to have their loans enrolled in the reserve 
     fund;
       (3) provides for contributions to be made by the State to 
     the reserve fund in amounts at least equal to the sum of the 
     amount of the insurance premium charges paid by the borrower 
     and the financial institution to the reserve fund for any 
     newly enrolled loan; and
       (4) provides its portfolio insurance solely for loans that 
     meet both the following requirements:
       (A) The borrower has 500 employees or less at the time that 
     the loan is enrolled in the Program.
       (B) The loan amount does not exceed $5,000,000.
       (d) Federal Contributions to Approved State Capital Access 
     Programs.--A State capital access program approved under this 
     section will be eligible for receiving Federal contributions 
     to the reserve fund in an amount equal to the sum of the 
     amount of the insurance premium charges paid by the borrowers 
     and by the financial institution to the reserve fund for 
     loans that meet the requirements in subsection (c)(4). A 
     participating State may use the Federal contribution to make 
     its contribution to the reserve fund of an approved State 
     capital access program.
       (e) Minimum Program Requirements for State Capital Access 
     Programs.--The Secretary shall, by regulation or other 
     guidance, prescribe Program requirements that meet the 
     following minimum requirements:
       (1) Experience and capacity.--The participating State shall 
     determine for each financial institution that participates in 
     the State capital access program, after consultation with the 
     appropriate Federal banking agency or, in the case of a 
     financial institution that is a nondepository community 
     development financial institution, the Community Development 
     Financial Institution Fund, that the financial institution 
     has sufficient commercial lending experience and financial 
     and managerial capacity to participate in the approved State 
     capital access program. The determination by the State shall 
     not be reviewable by the Secretary.
       (2) Investment authority.--Subject to applicable State law, 
     the participating State may invest, or cause to be invested, 
     funds held in a reserve fund by establishing a deposit 
     account at the financial institution lender in the name of 
     the participating State. In the event that funds in the 
     reserve fund are not deposited in such an account, such funds 
     shall be invested in a form that the participating State 
     determines is safe and liquid.
       (3) Loan terms and conditions to be determined by 
     agreement.--A loan to be filed for enrollment in an approved 
     State capital access program may be made with such interest 
     rate, fees, and other terms and conditions, and the loan may 
     be enrolled in the approved State capital access program and 
     claims may be filed and paid, as agreed upon by the financial 
     institution lender and the borrower, consistent with 
     applicable law.
       (4) Lender capital at-risk.--A loan to be filed for 
     enrollment in the State capital access program shall require 
     the financial institution lender to have a meaningful amount 
     of its own capital resources at risk in the loan.
       (5) Premium charges minimum and maximum amounts.--The 
     insurance premium charges payable to the reserve fund by the 
     borrower and the financial institution lender shall be 
     prescribed by the financial institution lender, within 
     minimum and maximum limits that require that the sum of the 
     insurance premium charges paid in connection with a loan by 
     the borrower and the financial institution lender may not be 
     less than 2 percent nor more than 7 percent of the

[[Page S5593]]

     amount of the loan enrolled in the approved State capital 
     access program.
       (6) State contributions.--In enrolling a loan in an 
     approved State capital access program, the participating 
     State may make a contribution to the reserve fund to 
     supplement Federal contributions made under this Program.
       (7) Loan purpose.--
       (A) Particular loan purpose requirements and 
     prohibitions.--In connection with the filing of a loan for 
     enrollment in an approved State capital access program, the 
     financial institution lender--
       (i) shall obtain an assurance from each borrower that--

       (I) the proceeds of the loan will be used for a business 
     purpose;
       (II) the loan will not be used to finance such business 
     activities as the Secretary, by regulation, may proscribe as 
     prohibited loan purposes for enrollment in an approved State 
     capital access program; and
       (III) the borrower is not--

       (aa) an executive officer, director, or principal 
     shareholder of the financial institution lender;
       (bb) a member of the immediate family of an executive 
     officer, director, or principal shareholder of the financial 
     institution lender; or
       (cc) a related interest of any such executive officer, 
     director, principal shareholder, or member of the immediate 
     family;
       (ii) shall provide assurances to the participating State 
     that the loan has not been made in order to place under the 
     protection of the approved State capital access program prior 
     debt that is not covered under the approved State capital 
     access program and that is or was owed by the borrower to the 
     financial institution lender or to an affiliate of the 
     financial institution lender;
       (iii) shall not allow the enrollment of a loan to a 
     borrower that is a refinancing of a loan previously made to 
     that borrower by the financial institution lender or an 
     affiliate of the financial institution lender; and
       (iv) may include additional restrictions on the eligibility 
     of loans or borrowers that are not inconsistent with the 
     provisions and purposes of this subtitle, including 
     compliance with all applicable Federal and State laws, 
     regulations, ordinances, and Executive orders.
       (B) Definitions.--In this paragraph, the terms ``executive 
     officer'', ``director'', ``principal shareholder'', 
     ``immediate family'', and ``related interest'' refer to the 
     same relationship to a financial institution lender as the 
     relationship described in part 215 of title 12 of the Code of 
     Federal Regulations, or any successor to such part.
       (8) Capital access for small businesses in underserved 
     communities.--At the time that a State applies to the 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions, the State shall 
     deliver to the Secretary a report stating how the State plans 
     to use the Federal contributions to the reserve fund to 
     provide access to capital for small businesses in low- and 
     moderate-income, minority, and other underserved communities, 
     including women- and minority-owned small businesses.

     SEC. 3206. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE 
                   CREDIT ACCESS AND GUARANTEE INITIATIVES FOR 
                   SMALL BUSINESSES AND MANUFACTURERS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, credit support program that meets 
     the eligibility criteria in subsection (c) may apply to the 
     Secretary to have the State other credit support program 
     approved as eligible for Federal contributions to, or for the 
     account of, the State program.
       (b) Approval.--The Secretary shall approve such State other 
     credit support program as eligible for Federal contributions 
     to, or for the account of, the program if--
       (1) the Secretary determines that the State satisfies the 
     requirements of paragraphs (1) through (3) of section 
     3205(b);
       (2) the Secretary determines that the State other credit 
     support program meets the eligibility criteria in subsection 
     (c);
       (3) the Secretary determines the State other credit support 
     program to be eligible based on the additional considerations 
     in subsection (d); and
       (4) within 9 months after the date of enactment of this 
     Act, the State has filed with Treasury a complete application 
     for Treasury approval.
       (c) Eligibility Criteria for State Other Credit Support 
     Programs.--For a State other credit support program to be 
     approved under this section, that program shall be required 
     to be a program of the State that--
       (1) can demonstrate that, at a minimum, $1 of public 
     investment by the State program will cause and result in $1 
     of new private credit;
       (2) can demonstrate a reasonable expectation that, when 
     considered with all other State programs of the State, such 
     State programs together have the ability to use amounts of 
     new Federal contributions to, or for the account of, all such 
     programs in the State to cause and result in amounts of new 
     small business lending at least 10 times the new Federal 
     contribution amount;
       (3) for those State other credit support programs that 
     provide their credit support through 1 or more financial 
     institution lenders, requires the financial institution 
     lenders to have a meaningful amount of their own capital 
     resources at risk in their small business lending; and
       (4) uses Federal funds allocated under this subtitle to 
     extend credit support that--
       (A) targets an average borrower size of 500 employees or 
     less;
       (B) does not extend credit support to borrowers that have 
     more than 750 employees;
       (C) targets support towards loans with an average principal 
     amount of $5,000,000 or less; and
       (D) does not extend credit support to loans that exceed a 
     principal amount of $20,000,000.
       (d) Additional Considerations.--In making a determination 
     that a State other credit support program is eligible for 
     Federal contributions to, or for the account of, the State 
     program, the Secretary shall take into account the following 
     additional considerations:
       (1) The anticipated benefits to the State, its businesses, 
     and its residents to be derived from the Federal 
     contributions to, or for the account of, the approved State 
     other credit support program, including the extent to which 
     resulting small business lending will expand economic 
     opportunities.
       (2) The operational capacity, skills, and experience of the 
     management team of the State other credit support program.
       (3) The capacity of the State other credit support program 
     to manage increases in the volume of its small business 
     lending.
       (4) The internal accounting and administrative controls 
     systems of the State other credit support program, and the 
     extent to which they can provide reasonable assurance that 
     funds of the State program are safeguarded against waste, 
     loss, unauthorized use, or misappropriation.
       (5) The soundness of the program design and implementation 
     plan of the State other credit support program.
       (e) Federal Contributions to Approved State Other Credit 
     Support Programs.--A State other credit support program 
     approved under this section will be eligible for receiving 
     Federal contributions to, or for the account of, the State 
     program in an amount consistent with the schedule describing 
     the apportionment of allocated Federal funds among State 
     programs delivered by the State to the Secretary under the 
     allocation agreement.
       (f) Minimum Program Requirements for State Other Credit 
     Support Programs.--
       (1) Fund to prescribe.--The Secretary shall, by regulation 
     or other guidance, prescribe Program requirements for 
     approved State other credit support programs.
       (2) Considerations for fund.--In prescribing minimum 
     Program requirements for approved State other credit support 
     programs, the Secretary shall take into consideration, to the 
     extent the Secretary determines applicable and appropriate, 
     the minimum Program requirements for approved State capital 
     access programs in section 3205(e).

     SEC. 3207. REPORTS.

       (a) Quarterly Use-of-funds Report.--
       (1) In general.--Not later than 30 days after the beginning 
     of each calendar quarter, beginning after the first full 
     calendar quarter to occur after the date the Secretary 
     approves a State for participation, the participating State 
     shall submit to the Secretary a report on the use of Federal 
     funding by the participating State during the previous 
     calendar quarter.
       (2) Report contents.--Each report under this subsection 
     shall--
       (A) indicate the total amount of Federal funding used by 
     the participating State; and
       (B) include a certification by the participating State 
     that--
       (i) the information provided in accordance with 
     subparagraph (A) is accurate;
       (ii) funds continue to be available and legally committed 
     to contributions by the State to, or for the account of, 
     approved State programs, less any amount that has been 
     contributed by the State to, or for the account of, approved 
     State programs subsequent to the State being approved for 
     participation in the Program; and
       (iii) the participating State is implementing its approved 
     State program or programs in accordance with this subtitle 
     and regulations issued under section 3210.
       (b) Annual Report.--Not later than March 31 of each year, 
     beginning March 31, 2011, each participating State shall 
     submit to the Secretary an annual report that shall include 
     the following information:
       (1) The number of borrowers that received new loans 
     originated under the approved State program or programs after 
     the State program was approved as eligible for Federal 
     contributions.
       (2) The total amount of such new loans.
       (3) Breakdowns by industry type, loan size, annual sales, 
     and number of employees of the borrowers that received such 
     new loans.
       (4) The zip code of each borrower that received such a new 
     loan.
       (5) Such other data as the Secretary, in the Secretary's 
     sole discretion, may require to carry out the purposes of the 
     Program.
       (c) Form.--The reports and data filed under subsections (a) 
     and (b) shall be in such form as the Secretary, in the 
     Secretary's sole discretion, may require.
       (d) Termination of Reporting Requirements.--The requirement 
     to submit reports under subsections (a) and (b) shall 
     terminate for a participating State with the submission of 
     the completed reports due on the first March 31 to occur 
     after 5 complete 12-month periods after the State is approved 
     by the Secretary to be a participating State.

     SEC. 3208. REMEDIES FOR STATE PROGRAM TERMINATION OR 
                   FAILURES.

       (a) Remedies.--

[[Page S5594]]

       (1) In general.--If any of the events listed in paragraph 
     (2) occur, the Secretary, in the Secretary's discretion, 
     may--
       (A) reduce the amount of Federal funds allocated to the 
     State under the Program; or
       (B) terminate any further transfers of allocated amounts 
     that have not yet been transferred to the State.
       (2) Causal events.--The events referred to in paragraph (1) 
     are--
       (A) termination by a participating State of its 
     participation in the Program;
       (B) failure on the part of a participating State to submit 
     complete reports under section 3207 on a timely basis; or
       (C) noncompliance by the State with the terms of the 
     allocation agreement between the Secretary and the State.
       (b) Deallocated Amounts To Be Reallocated.--If, after 13 
     months, any portion of the amount of Federal funds allocated 
     to a participating State is deemed by the Secretary to be no 
     longer allocated to the State after actions taken by the 
     Secretary under subsection (a)(1), the Secretary shall 
     reallocate that portion among the participating States, 
     excluding the State whose allocated funds were deemed to be 
     no longer allocated, as provided in section 3203(b).

     SEC. 3209. IMPLEMENTATION AND ADMINISTRATION.

       (a) General Authorities and Duties.--The Secretary shall--
       (1) consult with the Administrator of the Small Business 
     Administration and the appropriate Federal banking agencies 
     on the administration of the Program;
       (2) establish minimum national standards for approved State 
     programs;
       (3) provide technical assistance to States for starting 
     State programs and generally disseminate best practices;
       (4) manage, administer, and perform necessary program 
     integrity functions for the Program; and
       (5) ensure adequate oversight of the approved State 
     programs, including oversight of the cash flows, performance, 
     and compliance of each approved State program.
       (b) Appropriations.--There is hereby appropriated to the 
     Secretary, out of funds in the Treasury not otherwise 
     appropriated, $900,000,000 to carry out the Program, 
     including to pay reasonable costs of administering the 
     Program.
       (c) Termination of Secretary's Program Administration 
     Functions.--The authorities and duties of the Secretary to 
     implement and administer the Program shall terminate at the 
     end of the 7-year period beginning on the date of enactment 
     of this Act.
       (d) Expedited Contracting.--During the 1-year period 
     beginning on the date of enactment of this Act, the Secretary 
     may enter into contracts without regard to any other 
     provision of law regarding public contracts, for purposes of 
     carrying out this subtitle.

     SEC. 3210. REGULATIONS.

       The Secretary, in consultation with the Administrator of 
     the Small Business Administration, shall issue such 
     regulations and other guidance as the Secretary determines 
     necessary or appropriate to implement this subtitle including 
     to define terms, to establish compliance and reporting 
     requirements, and such other terms and conditions necessary 
     to carry out the purposes of this subtitle.

     SEC. 3211. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the use of funds made 
     available under the Program.
       (b) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (c) Required Certification.--
       (1) Financial institutions certification.--With respect to 
     funds received by a participating State under the Program, 
     any financial institution that receives a loan, a loan 
     guarantee, or other financial assistance using such funds 
     after the date of the enactment of this Act shall certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in section 5312 (a)(2) 
     and (c)(1)(A) of title 31, United States Code, to implement 
     reasonable procedures to verify the identity of any person 
     seeking to open an account, to the extent reasonable and 
     practicable, maintain records of the information used to 
     verify the person's identity, and determine whether the 
     person appears on any lists of known or suspected terrorists 
     or terrorist organizations provided to the financial 
     institution by any government agency.
       (2) Sex offense certification.--With respect to funds 
     received by a participating State under the Program, any 
     private entity that receives a loan, a loan guarantee, or 
     other financial assistance using such funds after the date of 
     the enactment of this Act shall certify to the participating 
     State that the principals of such entity have not been 
     convicted of a sex offense against a minor (as such terms are 
     defined in section 111 of the Sex Offender Registration and 
     Notification Act (42 U.S.C. 16911)).
       (d) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

                     TITLE IV--BUDGETARY PROVISIONS

     SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.
       The provisions in this Act shall take effect one day after 
     enactment.
                                 ______
                                 
  SA 4404. Mr. REID proposed an amendment to amendment SA 4403 proposed 
by Mr. Reid (for himself, Mr. Baucus, and Ms. Landrieu) to the 
amendment SA 4402 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; as 
follows:

       On page 236, line 24, strike ``one'' and insert ``five''.
                                 ______
                                 
  SA 4405. Mr. REID proposed an amendment to amendment to the bill H.R. 
5297, to create the Small Business Lending Fund Program to direct the 
Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; as 
follows:

       At the end, insert the following:

     The provisions of this Act shall become effective three days 
     after enactment.
                                 ______
                                 
  SA 4406. Mr. REID proposed an amendment to amendment SA 4405 proposed 
by Mr. Reid to the bill H.R. 5297, to create the Small Business Lending 
Fund Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; as follows:

       In the amendment, strike ``three days'' and insert ``10 
     days''.
                                 ______
                                 
  SA 4407. Mr. REID (for himself, Mr. Baucus, and Ms. Landrieu) 
proposed an amendment to the bill H.R. 5297, to create the Small 
Business Lending Fund Program to direct the Secretary of the Treasury 
to make capital investments in eligible institutions in order to 
increase the availability of credit for small businesses, to amend the 
Internal Revenue Code of 1986 to provide tax incentives for small 
business job creation, and for other purposes; as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Jobs Act of 
     2010''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                       TITLE I--SMALL BUSINESSES

Sec. 1001. Definitions.

              Subtitle A--Small Business Access to Credit

Sec. 1101. Short title.

         PART I--Next Steps for Main Street Credit Availability

Sec. 1111. Section 7(a) business loans.
Sec. 1112. Maximum loan amounts under 504 program.
Sec. 1113. Maximum loan limits under microloan program.
Sec. 1114. Temporary fee reductions.
Sec. 1115. New Markets Venture Capital company investment limitations.
Sec. 1116. Alternative size standards.
Sec. 1117. Sale of 7(a) loans in secondary market.
Sec. 1118. Online lending platform.
Sec. 1119. SBA Secondary Market Guarantee Authority.

               PART II--Small Business Access to Capital

Sec. 1122. Low-interest refinancing under the local development 
              business loan program.

                        PART III--Other Matters

Sec. 1131. Small business intermediary lending pilot program.

[[Page S5595]]

Sec. 1132. Public policy goals.
Sec. 1133. Draft floor plan pilot program extension.
Sec. 1134. Guarantees for bonds and notes issued for community or 
              economic development purposes.
Sec. 1135. Temporary express loan enhancement.
Sec. 1136. Prohibition on using TARP funds or tax in creases.

             Subtitle B--Small Business Trade and Exporting

Sec. 1201. Short title.
Sec. 1202. Definitions.
Sec. 1203. Office of International Trade.
Sec. 1204. Duties of the Office of International Trade.
Sec. 1205. Export assistance centers.
Sec. 1206. International trade finance programs.
Sec. 1207. State Trade and Export Promotion Grant Program.
Sec. 1208. Rural export promotion.
Sec. 1209. International trade cooperation by small business 
              development centers.

                 Subtitle C--Small Business Contracting

                       PART I--Contract Bundling

Sec. 1311. Small Business Act.
Sec. 1312. Leadership and oversight.
Sec. 1313. Consolidation of contract requirements.
Sec. 1314. Small business teams pilot program.

                   PART II--Subcontracting Integrity

Sec. 1321. Subcontracting misrepresentations.
Sec. 1322. Small business subcontracting improvements.

                     PART III--Acquisition Process

Sec. 1331. Reservation of prime contract awards for small businesses.
Sec. 1332. Micro-purchase guidelines.
Sec. 1333. Agency accountability.
Sec. 1334. Payment of subcontractors.
Sec. 1335. Repeal of Small Business Competitiveness Demonstration 
              Program.

           PART IV--Small Business Size and Status Integrity

Sec. 1341. Policy and presumptions.
Sec. 1342. Annual certification.
Sec. 1343. Training for contracting and enforcement personnel.
Sec. 1344. Updated size standards.
Sec. 1345. Study and report on the mentor-protege program.
Sec. 1346. Contracting goals reports.
Sec. 1347. Small business contracting parity.

    Subtitle D--Small Business Management and Counseling Assistance

Sec. 1401. Matching requirements under small business programs.
Sec. 1402. Grants for SBDCs.

                 Subtitle E--Disaster Loan Improvement

Sec. 1501. Aquaculture business disaster assistance.

              Subtitle F--Small Business Regulatory Relief

Sec. 1601. Requirements providing for more detailed analyses.
Sec. 1602. Office of advocacy.

                 Subtitle G--Appropriations Provisions

Sec. 1701. Salaries and expenses.
Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program 
              account.

                        TITLE II--TAX PROVISIONS

Sec. 2001. Short title.

                   Subtitle A--Small Business Relief

                  PART I--Providing Access to Capital

Sec. 2011. Temporary exclusion of 100 percent of gain on certain small 
              business stock.
Sec. 2012. General business credits of eligible small businesses for 
              2010 carried back 5 years.
Sec. 2013. General business credits of eligible small businesses in 
              2010 not subject to alternative minimum tax.
Sec. 2014. Temporary reduction in recognition period for built-in gains 
              tax.

                    PART II--Encouraging Investment

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain 
              real property treated as section 179 property.
Sec. 2022. Additional first-year depreciation for 50 percent of the 
              basis of certain qualified property.

                  PART III--Promoting Entrepreneurship

Sec. 2031. Increase in amount allowed as deduction for start-up 
              expenditures in 2010.
Sec. 2032. Authorization of appropriations for the United States Trade 
              Representative to develop market access opportunities for 
              United States small- and medium-sized businesses and to 
              enforce trade agreements.

               PART IV--Promoting Small Business Fairness

Sec. 2041. Limitation on penalty for failure to disclose reportable 
              transactions based on resulting tax benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
              employment taxes in 2010.

                     Subtitle B--Revenue Provisions

                      PART I--Reducing the Tax Gap

Sec. 2101. Information reporting for rental property expense payments.
Sec. 2102. Increase in information return penalties.
Sec. 2103. Report on tax shelter penalties and certain other 
              enforcement actions.
Sec. 2104. Application of levy to payments to Federal vendors relating 
              to property.
Sec. 2105. Application of continuous levy to tax liabilities of certain 
              Federal contractors.
Sec. 2106. Application of bad checks penalty to electronic payments.

               PART II--Promoting Retirement Preparation

Sec. 2111. Participants in government section 457 plans allowed to 
              treat elective deferrals as Roth contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth 
              accounts.

                 PART III--Closing Unintended Loopholes

Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer 
              credit.

         PART IV--Time for Payment of Corporate Estimated Taxes

Sec. 2131. Time for payment of corporate estimated taxes.

                   TITLE III--SMALL BUSINESS LENDING

                Subtitle A--Small Business Lending Fund

Sec. 3101. Purpose.
Sec. 3102. Definitions.
Sec. 3103. Small business lending fund.
Sec. 3104. Additional authorities of the Secretary.
Sec. 3105. Considerations.
Sec. 3106. Reports.
Sec. 3107. Oversight and audits.
Sec. 3108. Credit reform; funding.
Sec. 3109. Termination and continuation of authorities.
Sec. 3110. Preservation of authority.
Sec. 3111. Assurances.
Sec. 3112. Study and report with respect to women-owned, veteran-owned, 
              and minority-owned businesses.
Sec. 3113. Sense of congress.

           Subtitle B--State Small Business Credit Initiative

Sec. 3201. Short title.
Sec. 3202. Definitions.
Sec. 3203. Federal funds allocated to States.
Sec. 3204. Approving States for participation.
Sec. 3205. Approving State capital access programs.
Sec. 3206. Approving collateral support and other innovative credit 
              access and guarantee initiatives for small businesses and 
              manufacturers.
Sec. 3207. Reports.
Sec. 3208. Remedies for State program termination or failures.
Sec. 3209. Implementation and administration.
Sec. 3210. Regulations.
Sec. 3211. Oversight and audits.

                     TITLE IV--BUDGETARY PROVISIONS

Sec. 4001. Determination of budgetary effects.

                       TITLE I--SMALL BUSINESSES

     SEC. 1001. DEFINITIONS.

       In this title--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the term ``small business concern'' has the meaning 
     given that term under section 3 of the Small Business Act (15 
     U.S.C. 632).

              Subtitle A--Small Business Access to Credit

     SEC. 1101. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Job 
     Creation and Access to Capital Act of 2010''.

         PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

     SEC. 1111. SECTION 7(A) BUSINESS LOANS.

       (a) Amendment.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``75 percent'' and inserting 
     ``90 percent''; and
       (B) in clause (ii), by striking ``85 percent'' and 
     inserting ``90 percent''; and
       (2) in paragraph (3)(A), by striking ``$1,500,000 (or if 
     the gross loan amount would exceed $2,000,000'' and inserting 
     ``$4,500,000 (or if the gross loan amount would exceed 
     $5,000,000''.
       (b) Prospective Repeal.--Effective January 1, 2011, section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
     amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i), by striking ``90 percent'' and inserting 
     ``75 percent''; and
       (B) in clause (ii), by striking ``90 percent'' and 
     inserting ``85 percent''; and
       (2) in paragraph (3)(A), by striking ``$4,500,000'' and 
     inserting ``$3,750,000''.

     SEC. 1112. 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 
     ``$5,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$5,000,000'';
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000'';
       (4) in clause (iv), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''; and
       (5) in clause (v), by striking ``$4,000,000'' and inserting 
     ``$5,500,000''.

[[Page S5596]]

     SEC. 1113. 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)--
       (A) in subparagraph (C), by striking ``$3,500,000'' and 
     inserting ``$5,000,000''; and
       (B) in subparagraph (E), by striking ``$35,000'' each place 
     that term appears and inserting ``$50,000''; and
       (3) in paragraph (11)(B), by striking ``$35,000'' and 
     inserting ``$50,000''.

     SEC. 1114. TEMPORARY FEE REDUCTIONS.

       Section 501 of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5; 123 Stat. 151) is amended by 
     striking ``September 30, 2010'' each place that term appears 
     and inserting ``December 31, 2010''.

     SEC. 1115. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT 
                   LIMITATIONS.

       Section 355 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689d) is amended by adding at the end the 
     following:
       ``(e) Investment Limitations.--
       ``(1) Definition.--In this subsection, the term `covered 
     New Markets Venture Capital company' means a New Markets 
     Venture Capital company--
       ``(A) granted final approval by the Administrator under 
     section 354(e) on or after March 1, 2002; and
       ``(B) that has obtained a financing from the Administrator.
       ``(2) Limitation.--Except to the extent approved by the 
     Administrator, a covered New Markets Venture Capital company 
     may not acquire or issue commitments for securities under 
     this title for any single enterprise in an aggregate amount 
     equal to more than 10 percent of the sum of--
       ``(A) the regulatory capital of the covered New Markets 
     Venture Capital company; and
       ``(B) the total amount of leverage projected in the 
     participation agreement of the covered New Markets Venture 
     Capital.''.

     SEC. 1116. ALTERNATIVE SIZE STANDARDS.

       Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
     is amended by adding at the end the following:
       ``(5) Alternative size standard.--
       ``(A) In general.--The Administrator shall establish an 
     alternative size standard for applicants for business loans 
     under section 7(a) and applicants for development company 
     loans 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 use of 
     industry standards.
       ``(B) Interim rule.--Until the date on which the 
     alternative size standard established under subparagraph (A) 
     is in effect, an applicant for a business loan under section 
     7(a) or an applicant for a development company loan under 
     title V of the Small Business Investment Act of 1958 may be 
     eligible for such a loan if--
       ``(i) the maximum tangible net worth of the applicant is 
     not more than $15,000,000; and
       ``(ii) the average net income after Federal income taxes 
     (excluding any carry-over losses) of the applicant for the 2 
     full fiscal years before the date of the application is not 
     more than $5,000,000.''.

     SEC. 1117. SALE OF 7(A) LOANS IN SECONDARY MARKET.

       Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) 
     is amended by adding at the end the following:
       ``(6) If the amount of the guaranteed portion of any loan 
     under section 7(a) is more than $500,000, the Administrator 
     shall, upon request of a pool assembler, divide the loan 
     guarantee into increments of $500,000 and 1 increment of any 
     remaining amount less than $500,000, in order to permit the 
     maximum amount of any loan in a pool to be not more than 
     $500,000. Only 1 increment of any loan guarantee divided 
     under this paragraph may be included in the same pool. 
     Increments of loan guarantees to different borrowers that are 
     divided under this paragraph may be included in the same 
     pool.''.

     SEC. 1118. ONLINE LENDING PLATFORM.

       It is the sense of 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 rates of each such lender; and
       (2) allows prospective borrowers to compare rates on loans 
     guaranteed by the Small Business Administration.

     SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.

       Section 503(f) of division A of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 155) is 
     amended by striking ``on the date 2 years after the date of 
     enactment of this section'' and inserting ``2 years after the 
     date of the first sale of a pool of first lien position 504 
     loans guaranteed under this section to a third-party 
     investor''.

               PART II--SMALL BUSINESS ACCESS TO CAPITAL

     SEC. 1122. LOW-INTEREST REFINANCING UNDER THE LOCAL 
                   DEVELOPMENT BUSINESS LOAN PROGRAM.

       (a) Refinancing.--Section 502(7) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 696(7)) is amended by 
     adding at the end the following:
       ``(C) Refinancing not involving expansions.--
       ``(i) Definitions.--In this subparagraph--

       ``(I) the term `borrower' means a small business concern 
     that submits an application to a development company for 
     financing under this subparagraph;
       ``(II) the term `eligible fixed asset' means tangible 
     property relating to which the Administrator may provide 
     financing under this section; and
       ``(III) the term `qualified debt' means indebtedness--

       ``(aa) that--
       ``(AA) was incurred not less than 2 years before the date 
     of the application for assistance under this subparagraph;
       ``(BB) is a commercial loan;
       ``(CC) is not subject to a guarantee by a Federal agency;
       ``(DD) the proceeds of which were used to acquire an 
     eligible fixed asset;
       ``(EE) was incurred for the benefit of the small business 
     concern; and
       ``(FF) is collateralized by eligible fixed assets; and
       ``(bb) for which the borrower has been current on all 
     payments for not less than 1 year before the date of the 
     application.
       ``(ii) Authority.--A project that does not involve the 
     expansion of a small business concern may include the 
     refinancing of qualified debt if--

       ``(I) the amount of the financing is not more than 90 
     percent of the value of the collateral for the financing, 
     except that, if the appraised value of the eligible fixed 
     assets serving as collateral for the financing is less than 
     the amount equal to 125 percent of the amount of the 
     financing, the borrower may provide additional cash or other 
     collateral to eliminate any deficiency;
       ``(II) the borrower has been in operation for all of the 2-
     year period ending on the date of the loan; and
       ``(III) for a financing for which the Administrator 
     determines there will be an additional cost attributable to 
     the refinancing of the qualified debt, the borrower agrees to 
     pay a fee in an amount equal to the anticipated additional 
     cost.

       ``(iii) Financing for business expenses.--

       ``(I) Financing for business expenses.--The Administrator 
     may provide financing to a borrower that receives financing 
     that includes a refinancing of qualified debt under clause 
     (ii), in addition to the refinancing under clause (ii), to be 
     used solely for the payment of business expenses.
       ``(II) Application for financing.--An application for 
     financing under subclause (I) shall include--

       ``(aa) a specific description of the expenses for which the 
     additional financing is requested; and
       ``(bb) an itemization of the amount of each expense.

       ``(III) Condition on additional financing.--A borrower may 
     not use any part of the financing under this clause for non-
     business purposes.

       ``(iv) Loans based on jobs.--

       ``(I) Job creation and retention goals.--

       ``(aa) In general.--The Administrator may provide financing 
     under this subparagraph for a borrower that meets the job 
     creation goals under subsection (d) or (e) of section 501.
       ``(bb) Alternate job retention goal.--The Administrator may 
     provide financing under this subparagraph to a borrower that 
     does not meet the goals described in item (aa) in an amount 
     that is not more than the product obtained by multiplying the 
     number of employees of the borrower by $65,000.

       ``(II) Number of employees.--For purposes of subclause (I), 
     the number of employees of a borrower is equal to the sum 
     of--

       ``(aa) the number of full-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; and
       ``(bb) the product obtained by multiplying--
       ``(AA) the number of part-time employees of the borrower on 
     the date on which the borrower applies for a loan under this 
     subparagraph; by
       ``(BB) the quotient obtained by dividing the average number 
     of hours each part time employee of the borrower works each 
     week by 40.
       ``(v) Nondelegation.--Notwithstanding section 508(e), the 
     Administrator may not permit a premier certified lender to 
     approve or disapprove an application for assistance under 
     this subparagraph.
       ``(vi) Total amount of loans.--The Administrator may 
     provide not more than a total of $7,500,000,000 of financing 
     under this subparagraph for each fiscal year.''.
       (b) Prospective Repeal.--Effective 2 years after the date 
     of enactment of this Act, section 502(7) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended 
     by striking subparagraph (C).
       (c) Technical Correction.--Section 502(2)(A)(i) of the 
     Small Business Investment Act of 1958 (15 U.S.C. 
     696(2)(A)(i)) is amended by striking ``subparagraph (B) or 
     (C)'' and inserting ``clause (ii), (iii), (iv), or (v)''.

                        PART III--OTHER MATTERS

     SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

       (a) In General.--Section 7 of the Small Business Act (15 
     U.S.C. 636) is amended by striking subsection (l) and 
     inserting the following:
       ``(l) Small Business Intermediary Lending Pilot Program.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `eligible intermediary'--
       ``(i) means a private, nonprofit entity that--

[[Page S5597]]

       ``(I) seeks or has been awarded a loan from the 
     Administrator to make loans to small business concerns under 
     this subsection; and
       ``(II) has not less than 1 year of experience making loans 
     to startup, newly established, or growing small business 
     concerns; and

       ``(ii) includes--

       ``(I) a private, nonprofit community development 
     corporation;
       ``(II) a consortium of private, nonprofit organizations or 
     nonprofit community development corporations; and
       ``(III) an agency of or nonprofit entity established by a 
     Native American Tribal Government; and

       ``(B) the term `Program' means the small business 
     intermediary lending pilot program established under 
     paragraph (2).
       ``(2) Establishment.--There is established a 3-year small 
     business intermediary lending pilot program, under which the 
     Administrator may make direct loans to eligible 
     intermediaries, for the purpose of making loans to startup, 
     newly established, and growing small business concerns.
       ``(3) Purposes.--The purposes of the Program are--
       ``(A) to assist small business concerns in areas suffering 
     from a lack of credit due to poor economic conditions or 
     changes in the financial market; and
       ``(B) to establish a loan program under which the 
     Administrator may provide loans to eligible intermediaries to 
     enable the eligible intermediaries to provide loans to 
     startup, newly established, and growing small business 
     concerns for working capital, real estate, or the acquisition 
     of materials, supplies, or equipment.
       ``(4) Loans to eligible intermediaries.--
       ``(A) Application.--Each eligible intermediary desiring a 
     loan under this subsection shall submit an application to the 
     Administrator that describes--
       ``(i) the type of small business concerns to be assisted;
       ``(ii) the size and range of loans to be made;
       ``(iii) the interest rate and terms of loans to be made;
       ``(iv) the geographic area to be served and the economic, 
     poverty, and unemployment characteristics of the area;
       ``(v) the status of small business concerns in the area to 
     be served and an analysis of the availability of credit; and
       ``(vi) the qualifications of the applicant to carry out 
     this subsection.
       ``(B) Loan limits.--No loan may be made to an eligible 
     intermediary under this subsection if the total amount 
     outstanding and committed to the eligible intermediary by the 
     Administrator would, as a result of such loan, exceed 
     $1,000,000 during the participation of the eligible 
     intermediary in the Program.
       ``(C) Loan duration.--Loans made by the Administrator under 
     this subsection shall be for a term of 20 years.
       ``(D) Applicable interest rates.--Loans made by the 
     Administrator to an eligible intermediary under the Program 
     shall bear an annual interest rate equal to 1.00 percent.
       ``(E) Fees; collateral.--The Administrator may not charge 
     any fees or require collateral with respect to any loan made 
     to an eligible intermediary under this subsection.
       ``(F) Delayed payments.--The Administrator shall not 
     require the repayment of principal or interest on a loan made 
     to an eligible intermediary under the Program during the 2-
     year period beginning on the date of the initial disbursement 
     of funds under that loan.
       ``(G) Maximum participants and amounts.--During each of 
     fiscal years 2011, 2012, and 2013, the Administrator may make 
     loans under the Program--
       ``(i) to not more than 20 eligible intermediaries; and
       ``(ii) in a total amount of not more than $20,000,000.
       ``(5) Loans to small business concerns.--
       ``(A) In general.--The Administrator, through an eligible 
     intermediary, shall make loans to startup, newly established, 
     and growing small business concerns for working capital, real 
     estate, and the acquisition of materials, supplies, 
     furniture, fixtures, and equipment.
       ``(B) Maximum loan.--An eligible intermediary may not make 
     a loan under this subsection of more than $200,000 to any 1 
     small business concern.
       ``(C) Applicable interest rates.--A loan made by an 
     eligible intermediary to a small business concern under this 
     subsection, may have a fixed or a variable interest rate, and 
     shall bear an interest rate specified by the eligible 
     intermediary in the application of the eligible intermediary 
     for a loan under this subsection.
       ``(D) Review restrictions.--The Administrator may not 
     review individual loans made by an eligible intermediary to a 
     small business concern before approval of the loan by the 
     eligible intermediary.
       ``(6) Termination.--The authority of the Administrator to 
     make loans under the Program shall terminate 3 years after 
     the date of enactment of the Small Business Job Creation and 
     Access to Capital Act of 2010.''.
       (b) Rulemaking Authority.--Not later than 180 days after 
     the date of enactment of this Act, the Administrator shall 
     issue regulations to carry out section 7(l) of the Small 
     Business Act, as amended by subsection (a).
       (c) Availability of Funds.--Any amounts provided to the 
     Administrator for the purposes of carrying out section 7(l) 
     of the Small Business Act, as amended by subsection (a), 
     shall remain available until expended.

     SEC. 1132. PUBLIC POLICY GOALS.

       Section 501(d)(3) of the Small Business Investment Act of 
     1958 (15 U.S.C. 695(d)(3)) is amended--
       (1) in subparagraph (J), by striking ``or'' at the end;
       (2) in subparagraph (K), by striking the period at the end 
     and inserting ``, or''; and
       (3) by adding at the end the following:
       ``(L) reduction of rates of unemployment in labor surplus 
     areas, as such areas are determined by the Secretary of 
     Labor.''.

     SEC. 1133. DRAFT FLOOR PLAN PILOT PROGRAM EXTENSION.

       (a) In General.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)) is amended--
       (1) by redesignating paragraph (32), relating to increased 
     veteran participation, as added by section 208 of the 
     Military Reservist and Veteran Small Business Reauthorization 
     and Opportunity Act of 2008 (Public Law 110-186; 122 Stat. 
     631), as paragraph (33); and
       (2) by adding at the end the following:
       ``(34) Dealer floor plan financing program.--
       ``(A) Definition.--In this paragraph, the term `eligible 
     retail good'--
       ``(i) means a good for which a title may be obtained under 
     State law; and
       ``(ii) includes an automobile, recreational vehicle, boat, 
     and manufactured home.
       ``(B) Program.--The Administrator may guarantee the timely 
     payment of an open-end extension of credit to a small 
     business concern, the proceeds of which may be used for the 
     purchase of eligible retail goods for resale.
       ``(C) Amount.--An open-end extension of credit guaranteed 
     under this paragraph shall be in an amount not less than 
     $500,000 and not more than $5,000,000.
       ``(D) Term.--An open-end extension of credit guaranteed 
     under this paragraph shall have a term of not more than 5 
     years.
       ``(E) Guarantee percentage.--The Administrator may 
     guarantee--
       ``(i) not less than 60 percent of an open-end extension of 
     credit under this paragraph; and
       ``(ii) not more than 75 percent of an open-end extension of 
     credit under this paragraph.
       ``(F) Advance rate.--The lender for an open-end extension 
     of credit guaranteed under this paragraph may allow the 
     borrower to draw funds on the line of credit in an amount 
     equal to not more than 100 percent of the value of the 
     eligible retail goods to be purchased.''.
       (b) Sunset.--Effective September 30, 2013, section 7(a) of 
     the Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) by striking paragraph (34); and
       (2) by redesignating paragraph (35), as added by section 
     1206 of this Act, as paragraph (34).

     SEC. 1134. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       The Riegle Community Development and Regulatory Improvement 
     Act of 1994 (12 U.S.C. 4701 et seq.) is amended by inserting 
     after section 114 (12 U.S.C. 4713) the following:

     ``SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR 
                   COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.

       ``(a) Definitions.--In this section, the following 
     definitions shall apply:
       ``(1) Eligible community development financial 
     institution.--The term `eligible community development 
     financial institution' means a community development 
     financial institution (as described in section 1805.201 of 
     title 12, Code of Federal Regulations, or any successor 
     thereto) certified by the Secretary that has applied to a 
     qualified issuer for, or been granted by a qualified issuer, 
     a loan under the Program.
       ``(2) Eligible community or economic development purpose.--
     The term `eligible community or economic development 
     purpose'--
       ``(A) means any purpose described in section 108(b); and
       ``(B) includes the provision of community or economic 
     development in low-income or underserved rural areas.
       ``(3) Guarantee.--The term `guarantee' means a written 
     agreement between the Secretary and a qualified issuer (or 
     trustee), pursuant to which the Secretary ensures repayment 
     of the verifiable losses of principal, interest, and call 
     premium, if any, on notes or bonds issued by a qualified 
     issuer to finance or refinance loans to eligible community 
     development financial institutions.
       ``(4) Loan.--The term `loan' means any credit instrument 
     that is extended under the Program for any eligible community 
     or economic development purpose.
       ``(5) Master servicer.--
       ``(A) In general.--The term `master servicer' means any 
     entity approved by the Secretary in accordance with 
     subparagraph (B) to oversee the activities of servicers, as 
     provided in subsection (f)(4).
       ``(B) Approval criteria for master servicers.--The 
     Secretary shall approve or deny any application to become a 
     master servicer under the Program not later than 90 days 
     after the date on which all required information is submitted 
     to the Secretary, based on the capacity and experience of the 
     applicant in--
       ``(i) loan administration, servicing, and loan monitoring;
       ``(ii) managing regional or national loan intake, 
     processing, or servicing operational systems and 
     infrastructure;

[[Page S5598]]

       ``(iii) managing regional or national originator 
     communication systems and infrastructure;
       ``(iv) developing and implementing training and other risk 
     management strategies on a regional or national basis; and
       ``(v) compliance monitoring, investor relations, and 
     reporting.
       ``(6) Program.--The term `Program' means the guarantee 
     Program for bonds and notes issued for eligible community or 
     economic development purposes established under this section.
       ``(7) Program administrator.--The term `Program 
     administrator' means an entity designated by the issuer to 
     perform administrative duties, as provided in subsection 
     (f)(2).
       ``(8) Qualified issuer.--
       ``(A) In general.--The term `qualified issuer' means a 
     community development financial institution (or any entity 
     designated to issue notes or bonds on behalf of such 
     community development financial institution) that meets the 
     qualification requirements of this paragraph.
       ``(B) Approval criteria for qualified issuers.--
       ``(i) In general.--The Secretary shall approve a qualified 
     issuer for a guarantee under the Program in accordance with 
     the requirements of this paragraph, and such additional 
     requirements as the Secretary may establish, by regulation.
       ``(ii) Terms and qualifications.--A qualified issuer 
     shall--

       ``(I) have appropriate expertise, capacity, and experience, 
     or otherwise be qualified to make loans for eligible 
     community or economic development purposes;
       ``(II) provide to the Secretary--

       ``(aa) an acceptable statement of the proposed sources and 
     uses of the funds; and
       ``(bb) a capital distribution plan that meets the 
     requirements of subsection (c)(1); and

       ``(III) certify to the Secretary that the bonds or notes to 
     be guaranteed are to be used for eligible community or 
     economic development purposes.

       ``(C) Department opinion; timing.--
       ``(i) Department opinion.--Not later than 30 days after the 
     date of a request by a qualified issuer for approval of a 
     guarantee under the Program, the Secretary shall provide an 
     opinion regarding compliance by the issuer with the 
     requirements of the Program under this section.
       ``(ii) Timing.--The Secretary shall approve or deny a 
     guarantee under this section after consideration of the 
     opinion provided to the Secretary under clause (i), and in no 
     case later than 90 days after receipt of all required 
     information by the Secretary with respect to a request for 
     such guarantee.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(10) Servicer.--The term `servicer' means an entity 
     designated by the issuer to perform various servicing duties, 
     as provided in subsection (f)(3).
       ``(b) Guarantees Authorized.--The Secretary shall guarantee 
     payments on bonds or notes issued by any qualified issuer, if 
     the proceeds of the bonds or notes are used in accordance 
     with this section to make loans to eligible community 
     development financial institutions--
       ``(1) for eligible community or economic development 
     purposes; or
       ``(2) to refinance loans or notes issued for such purposes.
       ``(c) General Program Requirements.--
       ``(1) In general.--A capital distribution plan meets the 
     requirements of this subsection, if not less than 90 percent 
     of the principal amount of guaranteed bonds or notes (other 
     than costs of issuance fees) are used to make loans for any 
     eligible community or economic development purpose, measured 
     annually, beginning at the end of the 1-year period beginning 
     on the issuance date of such guaranteed bonds or notes.
       ``(2) Relending account.--Not more than 10 percent of the 
     principal amount of guaranteed bonds or notes, multiplied by 
     an amount equal to the outstanding principal balance of 
     issued notes or bonds, minus the risk-share pool amount under 
     subsection (d), may be held in a relending account and may be 
     made available for new eligible community or economic 
     development purposes.
       ``(3) Limitations on unpaid principal balances.--The 
     proceeds of guaranteed bonds or notes under the Program may 
     not be used to pay fees (other than costs of issuance fees), 
     and shall be held in--
       ``(A) community or economic development loans;
       ``(B) a relending account, to the extent authorized under 
     paragraph (2); or
       ``(C) a risk-share pool established under subsection (d).
       ``(4) Repayment.--If a qualified issuer fails to meet the 
     requirements of paragraph (1) by the end of the 90-day period 
     beginning at the end of the annual measurement period, 
     repayment shall be made on that portion of bonds or notes 
     necessary to bring the bonds or notes that remain outstanding 
     after such repayment into compliance with the 90 percent 
     requirement of paragraph (1).
       ``(5) Prohibited uses.--The Secretary shall, by 
     regulation--
       ``(A) prohibit, as appropriate, certain uses of amounts 
     from the guarantee of a bond or note under the Program, 
     including the use of such funds for political activities, 
     lobbying, outreach, counseling services, or travel expenses; 
     and
       ``(B) provide that the guarantee of a bond or note under 
     the Program may not be used for salaries or other 
     administrative costs of--
       ``(i) the qualified issuer; or
       ``(ii) any recipient of amounts from the guarantee of a 
     bond or note.
       ``(d) Risk-Share Pool.--Each qualified issuer shall, during 
     the term of a guarantee provided under the Program, establish 
     a risk-share pool, capitalized by contributions from eligible 
     community development financial institution participants an 
     amount equal to 3 percent of the guaranteed amount 
     outstanding on the subject notes and bonds.
       ``(e) Guarantees.--
       ``(1) In general.--A guarantee issued under the Program 
     shall--
       ``(A) be for the full amount of a bond or note, including 
     the amount of principal, interest, and call premiums;
       ``(B) be fully assignable and transferable to the capital 
     market, on terms and conditions that are consistent with 
     comparable Government-guaranteed bonds, and satisfactory to 
     the Secretary;
       ``(C) represent the full faith and credit of the United 
     States; and
       ``(D) not exceed 30 years.
       ``(2) Limitations.--
       ``(A) Annual number of guarantees.--The Secretary shall 
     issue not more than 10 guarantees in any calendar year under 
     the Program.
       ``(B) Guarantee amount.--The Secretary may not guarantee 
     any amount under the Program equal to less than $100,000,000, 
     but the total of all such guarantees in any fiscal year may 
     not exceed $1,000,000,000.
       ``(f) Servicing of Transactions.--
       ``(1) In general.--To maximize efficiencies and minimize 
     cost and interest rates, loans made under this section may be 
     serviced by qualified Program administrators, bond servicers, 
     and a master servicer.
       ``(2) Duties of program administrator.--The duties of a 
     Program administrator shall include--
       ``(A) approving and qualifying eligible community 
     development financial institution applications for 
     participation in the Program;
       ``(B) compliance monitoring;
       ``(C) bond packaging in connection with the Program; and
       ``(D) all other duties and related services that are 
     customarily expected of a Program administrator.
       ``(3) Duties of servicer.--The duties of a servicer shall 
     include--
       ``(A) billing and collecting loan payments;
       ``(B) initiating collection activities on past-due loans;
       ``(C) transferring loan payments to the master servicing 
     accounts;
       ``(D) loan administration and servicing;
       ``(E) systematic and timely reporting of loan performance 
     through remittance and servicing reports;
       ``(F) proper measurement of annual outstanding loan 
     requirements; and
       ``(G) all other duties and related services that are 
     customarily expected of servicers.
       ``(4) Duties of master servicer.--The duties of a master 
     servicer shall include--
       ``(A) tracking the movement of funds between the accounts 
     of the master servicer and any other servicer;
       ``(B) ensuring orderly receipt of the monthly remittance 
     and servicing reports of the servicer;
       ``(C) monitoring the collection comments and foreclosure 
     actions;
       ``(D) aggregating the reporting and distribution of funds 
     to trustees and investors;
       ``(E) removing and replacing a servicer, as necessary;
       ``(F) loan administration and servicing;
       ``(G) systematic and timely reporting of loan performance 
     compiled from all bond servicers' reports;
       ``(H) proper distribution of funds to investors; and
       ``(I) all other duties and related services that are 
     customarily expected of a master servicer.
       ``(g) Fees.--
       ``(1) In general.--A qualified issuer that receives a 
     guarantee issued under this section on a bond or note shall 
     pay a fee to the Secretary, in an amount equal to 10 basis 
     points of the amount of the unpaid principal of the bond or 
     note guaranteed.
       ``(2) Payment.--A qualified issuer shall pay the fee 
     required under this subsection on an annual basis.
       ``(3) Use of fees.--Fees collected by the Secretary under 
     this subsection shall be used to reimburse the Department of 
     the Treasury for any administrative costs incurred by the 
     Department in implementing the Program established under this 
     section.
       ``(h) Authorization of Appropriations.--
       ``(1) In general.--There are authorized to be appropriated 
     to the Secretary, such sums as are necessary to carry out 
     this section.
       ``(2) Use of fees.--To the extent that the amount of funds 
     appropriated for a fiscal year under paragraph (1) are not 
     sufficient to carry out this section, the Secretary may use 
     the fees collected under subsection (g) for the cost of 
     providing guarantees of bonds and notes under this section.
       ``(i) Investment in Guaranteed Bonds Ineligible for 
     Community Reinvestment Act Purposes.--Notwithstanding any 
     other provision of law, any investment by a financial 
     institution in bonds or notes guaranteed under the Program 
     shall not be taken into account in assessing the record of 
     such institution for purposes of the Community Reinvestment 
     Act of 1977 (12 U.S.C. 2901).
       ``(j) Administration.--

[[Page S5599]]

       ``(1) Regulations.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall promulgate 
     regulations to carry out this section.
       ``(2) Implementation.--Not later than 2 years after the 
     date of enactment of this section, the Secretary shall 
     implement this section.
       ``(k) Termination.--This section is repealed, and the 
     authority provided under this section shall terminate, on 
     September 30, 2014.''.

     SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.

       (a) In General.--Section 7(a)(31)(D) of the Small Business 
     Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$350,000'' and inserting ``$1,000,000''.
       (b) Prospective Repeal.--Effective 1 year after the date of 
     enactment of this Act, section 7(a)(31)(D) of the Small 
     Business Act (15 U.S.C. 636(a)(31)(D)) is amended by striking 
     ``$1,000,000'' and inserting ``$350,000''.

     SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX IN CREASES.

       (a) In General.--Except as provided in subsection (b), 
     nothing in section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections, 
     shall be construed to limit the ability of Congress to 
     appropriate funds.
       (b) TARP Funds and Tax Increases.--
       (1) In general.--Any covered amounts may not be used to 
     carry out section 1111, 1112, 1113, 1114, 1115, 1116, 1117, 
     1118, 1122, or 1131, or an amendment made by such sections.
       (2) Definition.--In this subsection, the term ``covered 
     amounts'' means--
       (A) the amounts made available to the Secretary of the 
     Treasury under title I of the Emergency Economic 
     Stabilization Act of 2008 S.C. 5201 et seq.) to purchase 
     (under section 101) or guarantee (under section 102) assets 
     under that Act; and
       (B) any revenue increase attributable to any amendment to 
     the Internal Revenue Code of 1986 made during the period 
     beginning on the date of enactment of this Act and ending on 
     December 31, 2010.

             Subtitle B--Small Business Trade and Exporting

     SEC. 1201. SHORT TITLE.

       This subtitle may be cited as the ``Small Business Export 
     Enhancement and International Trade Act of 2010''.

     SEC. 1202. DEFINITIONS.

       (a) Definitions.--In this subtitle--
       (1) the term ``Associate Administrator'' means the 
     Associate Administrator for International Trade appointed 
     under section 22(a)(2) of the Small Business Act, as amended 
     by this subtitle;
       (2) the term ``Export Assistance Center'' means a one-stop 
     shop referred to in section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8)); and
       (3) the term ``rural small business concern'' means a small 
     business concern located in a rural area, as that term is 
     defined in section 1393(a)(2) of the Internal Revenue Code of 
     1986.
       (b) Technical and Conforming Amendments.--
       (1) Definitions.--Section 3 of the Small Business Act (15 
     U.S.C. 632) is amended by adding at the end the following:
       ``(t) Small Business Development Center.--In this Act, the 
     term `small business development center' means a small 
     business development center described in section 21.
       ``(u) Region of the Administration.--In this Act, the term 
     `region of the Administration' means the geographic area 
     served by a regional office of the Administration established 
     under section 4(a).''.
       (2) Conforming amendment.--Section 4(b)(3)(B)(x) of the 
     Small Business Act (15 U.S.C. 633(b)(3)(B)(x)) is amended by 
     striking ``Administration district and region'' and inserting 
     ``district and region of the Administration''.

     SEC. 1203. OFFICE OF INTERNATIONAL TRADE.

       (a) Establishment.--Section 22 of the Small Business Act 
     (15 U.S.C. 649) is amended--
       (1) by striking ``Sec. 22. (a) There'' and inserting the 
     following:

     ``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

       ``(a) Establishment.--
       ``(1) Office.--There''; and
       (2) in subsection (a)--
       (A) in paragraph (1), as so designated, by striking the 
     period and inserting ``for the primary purposes of 
     increasing--
       ``(A) the number of small business concerns that export; 
     and
       ``(B) the volume of exports by small business concerns.''; 
     and
       (B) by adding at the end the following:
       ``(2) Associate administrator.--The head of the Office 
     shall be the Associate Administrator for International Trade, 
     who shall be responsible to the Administrator.''.
       (b) Authority for Additional Associate Administrator.--
     Section 4(b)(1) of the Small Business Act (15 U.S.C. 
     633(b)(1)) is amended--
       (1) in the fifth sentence, by striking ``five Associate 
     Administrators'' and inserting ``Associate Administrators''; 
     and
       (2) by adding at the end the following: ``One such 
     Associate Administrator shall be the Associate Administrator 
     for International Trade, who shall be the head of the Office 
     of International Trade established under section 22.''.
       (c) Discharge of International Trade Responsibilities of 
     Administration.--Section 22 of the Small Business Act (15 
     U.S.C. 649) is amended by adding at the end the following:
       ``(h) Discharge of International Trade Responsibilities of 
     Administration.--The Administrator shall ensure that--
       ``(1) the responsibilities of the Administration regarding 
     international trade are carried out by the Associate 
     Administrator;
       ``(2) the Associate Administrator has sufficient resources 
     to carry out such responsibilities; and
       ``(3) the Associate Administrator has direct supervision 
     and control over--
       ``(A) the staff of the Office; and
       ``(B) any employee of the Administration whose principal 
     duty station is an Export Assistance Center, or any successor 
     entity.''.
       (d) Role of Associate Administrator in Carrying Out 
     International Trade Policy.--Section 2(b)(1) of the Small 
     Business Act (15 U.S.C. 631(b)(1)) is amended in the matter 
     preceding subparagraph (A)--
       (1) by inserting ``the Administrator of'' before ``the 
     Small Business Administration''; and
       (2) by inserting ``through the Associate Administrator for 
     International Trade, and'' before ``in cooperation with''.
       (e) Implementation Date.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator of the Small 
     Business Administration shall appoint an Associate 
     Administrator for International Trade under section 22(a) of 
     the Small Business Act (15 U.S.C. 649(a)), as added by this 
     section.

     SEC. 1204. DUTIES OF THE OFFICE OF INTERNATIONAL TRADE.

       (a) Amendments to Section 22.--Section 22 of the Small 
     Business Act (15 U.S.C. 649) is amended--
       (1) by striking subsection (b) and inserting the following:
       ``(b) Trade Distribution Network.--The Associate 
     Administrator, working in close cooperation with the 
     Secretary of Commerce, the United States Trade 
     Representative, the Secretary of Agriculture, the Secretary 
     of State, the President of the Export-Import Bank of the 
     United States, the President of the Overseas Private 
     Investment Corporation, Director of the United States Trade 
     and Development Agency, and other relevant Federal agencies, 
     small business development centers engaged in export 
     promotion efforts, Export Assistance Centers, regional and 
     district offices of the Administration, the small business 
     community, and relevant State and local export promotion 
     programs, shall--
       ``(1) maintain a distribution network, using regional and 
     district offices of the Administration, the small business 
     development center network, networks of women's business 
     centers, the Service Corps of Retired Executives authorized 
     by section 8(b)(1), and Export Assistance Centers, for 
     programs relating to--
       ``(A) trade promotion;
       ``(B) trade finance;
       ``(C) trade adjustment assistance;
       ``(D) trade remedy assistance; and
       ``(E) trade data collection;
       ``(2) aggressively market the programs described in 
     paragraph (1) and disseminate information, including 
     computerized marketing data, to small business concerns on 
     exporting trends, market-specific growth, industry trends, 
     and international prospects for exports;
       ``(3) promote export assistance programs through the 
     district and regional offices of the Administration, the 
     small business development center network, Export Assistance 
     Centers, the network of women's business centers, chapters of 
     the Service Corps of Retired Executives, State and local 
     export promotion programs, and partners in the private 
     sector; and
       ``(4) give preference in hiring or approving the transfer 
     of any employee into the Office or to a position described in 
     subsection (c)(9) to otherwise qualified applicants who are 
     fluent in a language in addition to English, to--
       ``(A) accompany small business concerns on foreign trade 
     missions; and
       ``(B) translate documents, interpret conversations, and 
     facilitate multilingual transactions, including by providing 
     referral lists for translation services, if required.'';
       (2) in subsection (c)--
       (A) by striking ``(c) The Office'' and inserting the 
     following:
       ``(c) Promotion of Sales Opportunities.--The Associate 
     Administrator'';
       (B) by redesignating paragraphs (1) through (8) as 
     paragraphs (2) through (9), respectively;
       (C) by inserting before paragraph (2), as so redesignated, 
     the following:
       ``(1) establish annual goals for the Office relating to--
       ``(A) enhancing the exporting capability of small business 
     concerns and small manufacturers;
       ``(B) facilitating technology transfers;
       ``(C) enhancing programs and services to assist small 
     business concerns and small manufacturers to compete 
     effectively and efficiently against foreign entities;
       ``(D) increasing the ability of small business concerns to 
     access capital; and
       ``(E) disseminating information concerning Federal, State, 
     and private programs and initiatives;'';
       (D) in paragraph (2), as so redesignated, by striking 
     ``mechanism for'' and all that follows through ``(D) 
     assisting'' and inserting the following: ``mechanism for--
       ``(A) identifying subsectors of the small business 
     community with strong export potential;

[[Page S5600]]

       ``(B) identifying areas of demand in foreign markets;
       ``(C) prescreening foreign buyers for commercial and credit 
     purposes; and
       ``(D) assisting'';
       (E) in paragraph (3), as so redesignated, by striking 
     ``assist small businesses in the formation and utilization 
     of'' and inserting ``assist small business concerns in 
     forming and using'';
       (F) in paragraph (4), as so redesignated--
       (i) by striking ``local'' and inserting ``district'';
       (ii) by striking ``existing'';
       (iii) by striking ``Small Business Development Center 
     network'' and inserting ``small business development center 
     network''; and
       (iv) by striking ``Small Business Development Center 
     Program'' and inserting ``small business development center 
     program'';
       (G) in paragraph (5), as so redesignated--
       (i) in subparagraph (A), by striking ``Gross State 
     Produce'' and inserting ``Gross State Product'';
       (ii) in subparagraph (B), by striking ``SIC'' each place it 
     appears and inserting ``North American Industry 
     Classification System''; and
       (iii) in subparagraph (C), by striking ``small businesses'' 
     and inserting ``small business concerns'';
       (H) in paragraph (6), as so redesignated, by striking the 
     period at the end and inserting a semicolon;
       (I) in paragraph (7), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by inserting ``concerns'' after ``small business''; and
       (II) by striking ``current'' and inserting ``up to date'';

       (ii) in subparagraph (A), by striking ``Administration's 
     regional offices'' and inserting ``regional and district 
     offices of the Administration'';
       (iii) in subparagraph (B) by striking ``current'';
       (iv) in subparagraph (C), by striking ``current''; and
       (v) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns'';
       (J) in paragraph (8), as so redesignated, by striking and 
     at the end;
       (K) in paragraph (9), as so redesignated--
       (i) in the matter preceding subparagraph (A)--

       (I) by striking ``full-time export development specialists 
     to each Administration regional office and assigning''; and
       (II) by striking ``person in each district office. Such 
     specialists'' and inserting ``individual in each district 
     office and providing each Administration regional office with 
     a full-time export development specialist, who'';

       (ii) in subparagraph (B)--

       (I) by striking ``current''; and
       (II) by striking ``with'' and inserting ``in'';

       (iii) in subparagraph (D)--

       (I) by striking ``Administration personnel involved in 
     granting'' and inserting ``personnel of the Administration 
     involved in making''; and
       (II) by striking ``and'' at the end;

       (iv) in subparagraph (E)--

       (I) by striking ``small businesses' needs'' and inserting 
     ``the needs of small business concerns''; and
       (II) by striking the period at the end and inserting a 
     semicolon;

       (v) by adding at the end the following:
       ``(F) participate, jointly with employees of the Office, in 
     an annual training program that focuses on current small 
     business needs for exporting; and
       ``(G) develop and conduct training programs for exporters 
     and lenders, in cooperation with the Export Assistance 
     Centers, the Department of Commerce, the Department of 
     Agriculture, small business development centers, women's 
     business centers, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, and 
     other relevant Federal agencies;''; and
       (vi) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns''; and
       (L) by adding at the end the following:
       ``(10) make available on the website of the Administration 
     the name and contact information of each individual described 
     in paragraph (9);
       ``(11) carry out a nationwide marketing effort using 
     technology, online resources, training, and other strategies 
     to promote exporting as a business development opportunity 
     for small business concerns;
       ``(12) disseminate information to the small business 
     community through regional and district offices of the 
     Administration, the small business development center 
     network, Export Assistance Centers, the network of women's 
     business centers, chapters of the Service Corps of Retired 
     Executives authorized by section 8(b)(1), State and local 
     export promotion programs, and partners in the private sector 
     regarding exporting trends, market-specific growth, industry 
     trends, and prospects for exporting; and
       ``(13) establish and carry out training programs for the 
     staff of the regional and district offices of the 
     Administration and resource partners of the Administration on 
     export promotion and providing assistance relating to 
     exports.'';
       (3) in subsection (d)--
       (A) by redesignating paragraphs (1) through (5) as clauses 
     (i) through (v), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``(d) The Office'' and inserting the 
     following:
       ``(d) Export Financing Programs.--
       ``(1) In general.--The Associate Administrator''; and
       (C) by striking ``To accomplish this goal, the Office shall 
     work'' and inserting the following:
       ``(2) Trade finance specialist.--To accomplish the goal 
     established under paragraph (1), the Associate Administrator 
     shall--
       ``(A) designate at least 1 individual within the 
     Administration as a trade finance specialist to oversee 
     international loan programs and assist Administration 
     employees with trade finance issues; and
       ``(B) work'';
       (4) in subsection (e), by striking ``(e) The Office'' and 
     inserting the following:
       ``(e) Trade Remedies.--The Associate Administrator'';
       (5) by amending subsection (f) to read as follows:
       ``(f) Reporting Requirement.--The Associate Administrator 
     shall submit an annual report to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives that 
     contains--
       ``(1) a description of the progress of the Office in 
     implementing the requirements of this section;
       ``(2) a detailed account of the results of export growth 
     activities of the Administration, including the activities of 
     each district and regional office of the Administration, 
     based on the performance measures described in subsection 
     (i);
       ``(3) an estimate of the total number of jobs created or 
     retained as a result of export assistance provided by the 
     Administration and resource partners of the Administration;
       ``(4) for any travel by the staff of the Office, the 
     destination of such travel and the benefits to the 
     Administration and to small business concerns resulting from 
     such travel; and
       ``(5) a description of the participation by the Office in 
     trade negotiations.'';
       (6) in subsection (g), by striking ``(g) The Office'' and 
     inserting the following:
       ``(g) Studies.--The Associate Administrator''; and
       (7) by adding after subsection (h), as added by section 
     1203 of this subtitle, the following:
       ``(i) Export and Trade Counseling.--
       ``(1) Definition.--In this subsection--
       ``(A) the term `lead small business development center' 
     means a small business development center that has received a 
     grant from the Administration; and
       ``(B) the term `lead women's business center' means a 
     women's business center that has received a grant from the 
     Administration.
       ``(2) Certification program.--The Administrator shall 
     establish an export and trade counseling certification 
     program to certify employees of lead small business 
     development centers and lead women's business centers in 
     providing export assistance to small business concerns.
       ``(3) Number of certified employees.--The Administrator 
     shall ensure that the number of employees of each lead small 
     business development center who are certified in providing 
     export assistance is not less than the lesser of--
       ``(A) 5; or
       ``(B) 10 percent of the total number of employees of the 
     lead small business development center.
       ``(4) Reimbursement for certification.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Administrator shall reimburse a lead 
     small business development center or a lead women's business 
     center for costs relating to the certification of an employee 
     of the lead small business center or lead women's business 
     center in providing export assistance under the program 
     established under paragraph (2).
       ``(B) Limitation.--The total amount reimbursed by the 
     Administrator under subparagraph (A) may not exceed $350,000 
     in any fiscal year.
       ``(j) Performance Measures.--
       ``(1) In general.--The Associate Administrator shall 
     develop performance measures for the Administration to 
     support export growth goals for the activities of the Office 
     under this section that include--
       ``(A) the number of small business concerns that--
       ``(i) receive assistance from the Administration;
       ``(ii) had not exported goods or services before receiving 
     the assistance described in clause (i); and
       ``(iii) export goods or services;
       ``(B) the number of small business concerns receiving 
     assistance from the Administration that export goods or 
     services to a market outside the United States into which the 
     small business concern did not export before receiving the 
     assistance;
       ``(C) export revenues by small business concerns assisted 
     by programs of the Administration;
       ``(D) the number of small business concerns referred to an 
     Export Assistance Center or a small business development 
     center by the staff of the Office;
       ``(E) the number of small business concerns referred to the 
     Administration by an Export Assistance Center or a small 
     business development center; and
       ``(F) the number of small business concerns referred to the 
     Department of Commerce, the Department of Agriculture, the 
     Department of State, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, or the 
     United States

[[Page S5601]]

     Trade and Development Agency by the staff of the Office, an 
     Export Assistance Center, or a small business development 
     center.
       ``(2) Joint performance measures.--The Associate 
     Administrator shall develop joint performance measures for 
     the district offices of the Administration and the Export 
     Assistance Centers that include the number of export loans 
     made under--
       ``(A) section 7(a)(16);
       ``(B) the Export Working Capital Program established under 
     section 7(a)(14);
       ``(C) the Preferred Lenders Program, as defined in section 
     7(a)(2)(C)(ii); and
       ``(D) the export express program established under section 
     7(a)(34).
       ``(3) Consistency of tracking.--The Associate 
     Administrator, in coordination with the departments and 
     agencies that are represented on the Trade Promotion 
     Coordinating Committee established under section 2312 of the 
     Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small 
     business development center network, shall develop a system 
     to track exports by small business concerns, including 
     information relating to the performance measures developed 
     under paragraph (1), that is consistent with systems used by 
     the departments and agencies and the network.''.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives on any travel by the 
     staff of the Office of International Trade of the 
     Administration, during the period beginning on October 1, 
     2004, and ending on the date of enactment of the Act, 
     including the destination of such travel and the benefits to 
     the Administration and to small business concerns resulting 
     from such travel.

     SEC. 1205. EXPORT ASSISTANCE CENTERS.

       (a) Export Assistance Centers.--Section 22 of the Small 
     Business Act (15 U.S.C. 649), as amended by this subtitle, is 
     amended by adding at the end the following:
       ``(k) Export Assistance Centers.--
       ``(1) Export finance specialists.--
       ``(A) Minimum number of export finance specialists.--On and 
     after the date that is 90 days after the date of enactment of 
     this subsection, the Administrator, in coordination with the 
     Secretary of Commerce, shall ensure that the number of export 
     finance specialists is not less than the number of such 
     employees so assigned on January 1, 2003.
       ``(B) Export finance specialists assigned to each region of 
     the administration.--On and after the date that is 2 years 
     after the date of enactment of this subsection, the 
     Administrator, in coordination with the Secretary of 
     Commerce, shall ensure that there are not fewer than 3 export 
     finance specialists in each region of the Administration.
       ``(2) Placement of export finance specialists.--
       ``(A) Priority.--The Administrator shall give priority, to 
     the maximum extent practicable, to placing employees of the 
     Administration at any Export Assistance Center that--
       ``(i) had an Administration employee assigned to the Export 
     Assistance Center before January 2003; and
       ``(ii) has not had an Administration employee assigned to 
     the Export Assistance Center during the period beginning 
     January 2003, and ending on the date of enactment of this 
     subsection, either through retirement or reassignment.
       ``(B) Needs of exporters.--The Administrator shall, to the 
     maximum extent practicable, strategically assign 
     Administration employees to Export Assistance Centers, based 
     on the needs of exporters.
       ``(C) Rule of construction.--Nothing in this subsection may 
     be construed to require the Administrator to reassign or 
     remove an export finance specialist who is assigned to an 
     Export Assistance Center on the date of enactment of this 
     subsection.
       ``(3) Goals.--The Associate Administrator shall work with 
     the Department of Commerce, the Export-Import Bank of the 
     United States, and the Overseas Private Investment 
     Corporation to establish shared annual goals for the Export 
     Assistance Centers.
       ``(4) Oversight.--The Associate Administrator shall 
     designate an individual within the Administration to oversee 
     all activities conducted by Administration employees assigned 
     to Export Assistance Centers.
       ``(l) Definitions.--In this section--
       ``(1) the term `Associate Administrator' means the 
     Associate Administrator for International Trade described in 
     subsection (a)(2);
       ``(2) the term `Export Assistance Center' means a one-stop 
     shop for United States exporters established by the United 
     States and Foreign Commercial Service of the Department of 
     Commerce pursuant to section 2301(b)(8) of the Omnibus Trade 
     and Competitiveness Act of 1988 (15 U.S.C. 4721(b)(8));
       ``(3) the term `export finance specialist' means a full-
     time equivalent employee of the Office assigned to an Export 
     Assistance Center to carry out the duties described in 
     subsection (e); and
       ``(4) the term `Office' means the Office of International 
     Trade established under subsection (a)(1).''.
       (b) Study and Report on Filling Gaps in High-and-Low-Export 
     Volume Areas.--
       (1) Study and report.--Not later than 6 months after the 
     date of enactment of this Act, and every 2 years thereafter, 
     the Administrator shall--
       (A) conduct a study of--
       (i) the volume of exports for each State;
       (ii) the availability of export finance specialists in each 
     State;
       (iii) the number of exporters in each State that are small 
     business concerns;
       (iv) the percentage of exporters in each State that are 
     small business concerns;
       (v) the change, if any, in the number of exporters that are 
     small business concerns in each State--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced;

       (vi) the total value of the exports in each State by small 
     business concerns;
       (vii) the percentage of the total volume of exports in each 
     State that is attributable to small business concerns; and
       (viii) the change, if any, in the percentage of the total 
     volume of exports in each State that is attributable to small 
     business concerns--

       (I) for the first study conducted under this subparagraph, 
     during the 10-year period ending on the date of enactment of 
     this Act; and
       (II) for each subsequent study, during the 10-year period 
     ending on the date the study is commenced; and

       (B) 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 
     containing--
       (i) the results of the study under subparagraph (A);
       (ii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     greatest volume of exports, based upon the most recent data 
     available from the Department of Commerce;
       (iii) to the extent practicable, a recommendation regarding 
     how to eliminate gaps between the supply of and demand for 
     export finance specialists in the 15 States that have the 
     lowest volume of exports, based upon the most recent data 
     available from the Department of Commerce; and
       (iv) such additional information as the Administrator 
     determines is appropriate.
       (2) Definition.--In this subsection, the term ``export 
     finance specialist'' has the meaning given that term in 
     section 22(l) of the Small Business Act, as added by this 
     title.

     SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.

       (a) Loan Limits.--
       (1) Total amount outstanding.--Section 7(a)(3)(B) of the 
     Small Business Act (15 U.S.C. 636(a)(3)(B)) is amended by 
     striking ``$1,750,000, of which not more than $1,250,000'' 
     and inserting ``$4,500,000 (or if the gross loan amount would 
     exceed $5,000,000), of which not more than $4,000,000''.
       (2) Participation.--Section 7(a)(2) of the Small Business 
     Act (15 U.S.C. 636(a)(2)) is amended--
       (A) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``subparagraph (B)'' and inserting 
     ``subparagraphs (B), (D), and (E)'';
       (B) in subparagraph (D), by striking ``Notwithstanding 
     subparagraph (A), in'' and inserting ``In''; and
       (C) by adding at the end the following:
       ``(E) Participation in international trade loan.--In an 
     agreement to participate in a loan on a deferred basis under 
     paragraph (16), the participation by the Administration may 
     not exceed 90 percent.''.
       (b) Working Capital.--Section 7(a)(16)(A) of the Small 
     Business Act (15 U.S.C. 636(a)(16)(A)) is amended--
       (1) in the matter preceding clause (i), by striking ``in--
     '' and inserting ``--'';
       (2) in clause (i)--
       (A) by inserting ``in'' after ``(i)''; and
       (B) by striking ``or'' at the end;
       (3) in clause (ii)--
       (A) by inserting ``in'' after ``(ii)''; and
       (B) by striking the period at the end and inserting ``, 
     including any debt that qualifies for refinancing under any 
     other provision of this subsection; or''; and
       (4) by adding at the end the following:
       ``(iii) by providing working capital.''.
       (c) Collateral.--Section 7(a)(16)(B) of the Small Business 
     Act (15 U.S.C. 636(a)(16)(B)) is amended--
       (1) by striking ``Each loan'' and inserting the following:
       ``(i) In general.--Except as provided in clause (ii), each 
     loan''; and
       (2) by adding at the end the following:
       ``(ii) Exception.--A loan under this paragraph may be 
     secured by a second lien position on the property or 
     equipment financed by the loan or on other assets of the 
     small business concern, if the Administrator determines the 
     lien provides adequate assurance of the payment of the 
     loan.''.
       (d) Export Working Capital Program.--Section 7(a) of the 
     Small Business Act (15 U.S.C. 636(a)) is amended--
       (1) in paragraph (2)(D), by striking ``not exceed'' and 
     inserting ``be''; and
       (2) in paragraph (14)--
       (A) by striking ``(A) The Administration'' and inserting 
     the following: ``Export working capital program.--
       ``(A) In general.--The Administrator'';
       (B) by striking ``(B) When considering'' and inserting the 
     following:
       ``(C) Considerations.--When considering'';
       (C) by striking ``(C) The Administration'' and inserting 
     the following:

[[Page S5602]]

       ``(D) Marketing.--The Administrator''; and
       (D) by inserting after subparagraph (A) the following:
       ``(B) Terms.--
       ``(i) Loan amount.--The Administrator may not guarantee a 
     loan under this paragraph of more than $5,000,000.
       ``(ii) Fees.--

       ``(I) In general.--For a loan under this paragraph, the 
     Administrator shall collect the fee assessed under paragraph 
     (23) not more frequently than once each year.
       ``(II) Untapped credit.--The Administrator may not assess a 
     fee on capital that is not accessed by the small business 
     concern.''.

       (e) Participation in Preferred Lenders Program.--Section 
     7(a)(2)(C) of the Small Business Act (15 U.S.C. 636(a)(2)(C)) 
     is amended--
       (1) by redesignating clause (ii) as clause (iii); and
       (2) by inserting after clause (i) the following:
       ``(ii) Export-import bank lenders.--Any lender that is 
     participating in the Delegated Authority Lender Program of 
     the Export-Import Bank of the United States (or any successor 
     to the Program) shall be eligible to participate in the 
     Preferred Lenders Program.''.
       (f) Export Express Program.--Section 7(a) of the Small 
     Business Act (15 U.S.C. 636(a)) is amended by adding at the 
     end the following:
       ``(35) Export express program.--
       ``(A) Definitions.--In this paragraph--
       ``(i) the term `export development activity' includes--

       ``(I) obtaining a standby letter of credit when required as 
     a bid bond, performance bond, or advance payment guarantee;
       ``(II) participation in a trade show that takes place 
     outside the United States;
       ``(III) translation of product brochures or catalogues for 
     use in markets outside the United States;
       ``(IV) obtaining a general line of credit for export 
     purposes;
       ``(V) performing a service contract from buyers located 
     outside the United States;
       ``(VI) obtaining transaction-specific financing associated 
     with completing export orders;
       ``(VII) purchasing real estate or equipment to be used in 
     the production of goods or services for export;
       ``(VIII) providing term loans or other financing to enable 
     a small business concern, including an export trading company 
     and an export management company, to develop a market outside 
     the United States; and
       ``(IX) acquiring, constructing, renovating, modernizing, 
     improving, or expanding a production facility or equipment to 
     be used in the United States in the production of goods or 
     services for export; and

       ``(ii) the term `express loan' means a loan in which a 
     lender uses to the maximum extent practicable the loan 
     analyses, procedures, and documentation of the lender to 
     provide expedited processing of the loan application.
       ``(B) Authority.--The Administrator may guarantee the 
     timely payment of an express loan to a small business concern 
     made for an export development activity.
       ``(C) Level of participation.--
       ``(i) Maximum amount.--The maximum amount of an express 
     loan guaranteed under this paragraph shall be $500,000.
       ``(ii) Percentage.--For an express loan guaranteed under 
     this paragraph, the Administrator shall guarantee--

       ``(I) 90 percent of a loan that is not more than $350,000; 
     and
       ``(II) 75 percent of a loan that is more than $350,000 and 
     not more than $500,000.''.

       (g) Annual Listing of Export Finance Lenders.--Section 
     7(a)(16) of the Small Business Act (15 U.S.C. 636(a)(16)) is 
     amended by adding at the end the following:
       ``(F) List of export finance lenders.--
       ``(i) Publication of list required.--The Administrator 
     shall publish an annual list of the banks and participating 
     lending institutions that, during the 1-year period ending on 
     the date of publication of the list, have made loans 
     guaranteed by the Administration under--

       ``(I) this paragraph;
       ``(II) paragraph (14); or
       ``(III) paragraph (34).

       ``(ii) Availability of list.--The Administrator shall--

       ``(I) post the list published under clause (i) on the 
     website of the Administration; and
       ``(II) make the list published under clause (i) available, 
     upon request, at each district office of the 
     Administration.''.

       (h) Applicability.--The amendments made by subsections (a) 
     through (f) shall apply with respect to any loan made after 
     the date of enactment of this Act.

     SEC. 1207. STATE TRADE AND EXPORT PROMOTION GRANT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``eligible small business concern'' means a 
     small business concern that--
       (A) has been in business for not less than the 1-year 
     period ending on the date on which assistance is provided 
     using a grant under this section;
       (B) is operating profitably, based on operations in the 
     United States;
       (C) has demonstrated understanding of the costs associated 
     with exporting and doing business with foreign purchasers, 
     including the costs of freight forwarding, customs brokers, 
     packing and shipping, as determined by the Associate 
     Administrator; and
       (D) has in effect a strategic plan for exporting;
       (2) the term ``program'' means the State Trade and Export 
     Promotion Grant Program established under subsection (b);
       (3) the term ``small business concern owned and controlled 
     by women'' has the meaning given that term in section 3 of 
     the Small Business Act (15 U.S.C. 632);
       (4) the term ``socially and economically disadvantaged 
     small business concern'' has the meaning given that term in 
     section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
     6537(a)(4)(A)); and
       (5) the term ``State'' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, and American Samoa.
       (b) Establishment of Program.--The Associate Administrator 
     shall establish a 3-year trade and export promotion pilot 
     program to be known as the State Trade and Export Promotion 
     Grant Program, to make grants to States to carry out export 
     programs that assist eligible small business concerns in--
       (1) participation in a foreign trade mission;
       (2) a foreign market sales trip;
       (3) a subscription to services provided by the Department 
     of Commerce;
       (4) the payment of website translation fees;
       (5) the design of international marketing media;
       (6) a trade show exhibition;
       (7) participation in training workshops; or
       (8) any other export initiative determined appropriate by 
     the Associate Administrator.
       (c) Grants.--
       (1) Joint review.--In carrying out the program, the 
     Associate Administrator may make a grant to a State to 
     increase the number of eligible small business concerns in 
     the State that export or to increase the value of the exports 
     by eligible small business concerns in the State.
       (2) Considerations.--In making grants under this section, 
     the Associate Administrator may give priority to an 
     application by a State that proposes a program that--
       (A) focuses on eligible small business concerns as part of 
     an export promotion program;
       (B) demonstrates success in promoting exports by--
       (i) socially and economically disadvantaged small business 
     concerns;
       (ii) small business concerns owned or controlled by women; 
     and
       (iii) rural small business concerns;
       (C) promotes exports from a State that is not 1 of the 10 
     States with the highest percentage of exporters that are 
     small business concerns, based upon the latest data available 
     from the Department of Commerce; and
       (D) promotes new-to-market export opportunities to the 
     People's Republic of China for eligible small business 
     concerns in the United States.
       (3) Limitations.--
       (A) Single application.--A State may not submit more than 1 
     application for a grant under the program in any 1 fiscal 
     year.
       (B) Proportion of amounts.--The total value of grants under 
     the program made during a fiscal year to the 10 States with 
     the highest number of exporters that are small business 
     concerns, based upon the latest data available from the 
     Department of Commerce, shall be not more than 40 percent of 
     the amounts appropriated for the program for that fiscal 
     year.
       (4) Application.--A State desiring a grant under the 
     program shall submit an application at such time, in such 
     manner, and accompanied by such information as the Associate 
     Administrator may establish.
       (d) Competitive Basis.--The Associate Administrator shall 
     award grants under the program on a competitive basis.
       (e) Federal Share.--The Federal share of the cost of an 
     export program carried out using a grant under the program 
     shall be--
       (1) for a State that has a high export volume, as 
     determined by the Associate Administrator, not more than 65 
     percent; and
       (2) for a State that does not have a high export volume, as 
     determined by the Associate Administrator, not more than 75 
     percent.
       (f) Non-Federal Share.--The non-Federal share of the cost 
     of an export program carried using a grant under the program 
     shall be comprised of not less than 50 percent cash and not 
     more than 50 percent of indirect costs and in-kind 
     contributions, except that no such costs or contributions may 
     be derived from funds from any other Federal program.
       (g) Reports.--
       (1) Initial report.--Not later than 120 days after the date 
     of enactment of this Act, the Associate Administrator 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, which 
     shall include--
       (A) a description of the structure of and procedures for 
     the program;
       (B) a management plan for the program; and
       (C) a description of the merit-based review process to be 
     used in the program.
       (2) Annual reports.--The Associate Administrator shall 
     submit an annual report to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives regarding the 
     program, which shall include--

[[Page S5603]]

       (A) the number and amount of grants made under the program 
     during the preceding year;
       (B) a list of the States receiving a grant under the 
     program during the preceding year, including the activities 
     being performed with grant; and
       (C) the effect of each grant on exports by eligible small 
     business concerns in the State receiving the grant.
       (h) Reviews by Inspector General.--
       (1) In general.--The Inspector General of the 
     Administration shall conduct a review of--
       (A) the extent to which recipients of grants under the 
     program are measuring the performance of the activities being 
     conducted and the results of the measurements; and
       (B) the overall management and effectiveness of the 
     program.
       (2) Report.--Not later than September 30, 2012, the 
     Inspector General of the Administration 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 review conducted under 
     paragraph (1).
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out the program $30,000,000 for 
     each of fiscal years 2011, 2012, and 2013.
       (j) Termination.--The authority to carry out the program 
     shall terminate 3 years after the date on which the Associate 
     Administrator establishes the program.

     SEC. 1208. RURAL EXPORT PROMOTION.

       Not later than 6 months after the date of enactment of this 
     Act, the Administrator, in consultation with the Secretary of 
     Agriculture and the Secretary of Commerce, 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 that contains--
       (1) a description of each program of the Administration 
     that promotes exports by rural small business concerns, 
     including--
       (A) the number of rural small business concerns served by 
     the program;
       (B) the change, if any, in the number of rural small 
     business concerns as a result of participation in the program 
     during the 10-year period ending on the date of enactment of 
     this Act;
       (C) the volume of exports by rural small business concerns 
     that participate in the program; and
       (D) the change, if any, in the volume of exports by rural 
     small businesses that participate in the program during the 
     10-year period ending on the date of enactment of this Act;
       (2) a description of the coordination between programs of 
     the Administration and other Federal programs that promote 
     exports by rural small business concerns;
       (3) recommendations, if any, for improving the coordination 
     described in paragraph (2);
       (4) a description of any plan by the Administration to 
     market the international trade financing programs of the 
     Administration through lenders that--
       (A) serve rural small business concerns; and
       (B) are associated with financing programs of the 
     Department of Agriculture;
       (5) recommendations, if any, for improving coordination 
     between the counseling programs and export financing programs 
     of the Administration, in order to increase the volume of 
     exports by rural small business concerns; and
       (6) any additional information the Administrator determines 
     is necessary.

     SEC. 1209. INTERNATIONAL TRADE COOPERATION BY SMALL BUSINESS 
                   DEVELOPMENT CENTERS.

       Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) 
     is amended--
       (1) by striking ``(2) The Small Business Development 
     Centers'' and inserting the following:
       ``(2) Cooperation to provide international trade 
     services.--
       ``(A) Information and services.--The small business 
     development centers''; and
       (2) in paragraph (2)--
       (A) in subparagraph (A), as so designated, by inserting 
     ``(including State trade agencies),'' after ``local 
     agencies''; and
       (B) by adding at the end the following:
       ``(B) Cooperation with state trade agencies and export 
     assistance centers.--A small business development center that 
     counsels a small business concern on issues relating to 
     international trade shall--
       ``(i) consult with State trade agencies and Export 
     Assistance Centers to provide appropriate services to the 
     small business concern; and
       ``(ii) as necessary, refer the small business concern to a 
     State trade agency or an Export Assistance Center for further 
     counseling or assistance.
       ``(C) Definition.--In this paragraph, the term `Export 
     Assistance Center' has the same meaning as in section 22.''.

                 Subtitle C--Small Business Contracting

                       PART I--CONTRACT BUNDLING

     SEC. 1311. SMALL BUSINESS ACT.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1202, is amended by adding at the end the 
     following:
       ``(v) Multiple Award Contract.--In this Act, the term 
     `multiple award contract' means--
       ``(1) a multiple award task order contract or delivery 
     order contract that is entered into under the authority of 
     sections 303H through 303K of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253h through 
     253k); and
       ``(2) any other indefinite delivery, indefinite quantity 
     contract that is entered into by the head of a Federal agency 
     with 2 or more sources pursuant to the same solicitation.''.

     SEC. 1312. LEADERSHIP AND OVERSIGHT.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by adding at the end the following:
       ``(q) Bundling Accountability Measures.--
       ``(1) Teaming requirements.--Each Federal agency shall 
     include in each solicitation for any multiple award contract 
     above the substantial bundling threshold of the Federal 
     agency a provision soliciting bids from any responsible 
     source, including responsible small business concerns and 
     teams or joint ventures of small business concerns.
       ``(2) Policies on reduction of contract bundling.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 4219(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) establish a Government-wide policy regarding contract 
     bundling, including regarding the solicitation of teaming and 
     joint ventures under paragraph (1); and
       ``(ii) require that the policy established under clause (i) 
     be published on the website of each Federal agency.
       ``(B) Rationale for contract bundling.--Not later than 30 
     days after the date on which the head of a Federal agency 
     submits data certifications to the Administrator for Federal 
     Procurement Policy, the head of the Federal agency shall 
     publish on the website of the Federal agency a list and 
     rationale for any bundled contract for which the Federal 
     agency solicited bids or that was awarded by the Federal 
     agency.
       ``(3) Reporting.--Not later than 90 days after the date of 
     enactment of this subsection, and every 3 years thereafter, 
     the Administrator 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 procurement center representatives and commercial 
     market representatives, which shall--
       ``(A) identify each area for which the Administration has 
     assigned a procurement center representative or a commercial 
     market representative;
       ``(B) explain why the Administration selected the areas 
     identified under subparagraph (A); and
       ``(C) describe the activities performed by procurement 
     center representatives and commercial market 
     representatives.''.
       (b) Technical Correction.--Section 15(g) of the Small 
     Business Act (15 U.S.C. 644(g)) is amended by striking 
     ``Administrator of the Office of Federal Procurement Policy'' 
     each place it appears and inserting ``Administrator for 
     Federal Procurement Policy''.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report regarding the 
     procurement center representative program of the 
     Administration.
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) address ways to improve the effectiveness of the 
     procurement center representative program in helping small 
     business concerns obtain Federal contracts;
       (B) evaluate the effectiveness of procurement center 
     representatives and commercial marketing representatives; and
       (C) include recommendations, if any, on how to improve the 
     procurement center representative program.
       (d) Electronic Procurement Center Representative.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall implement a 3-
     year pilot electronic procurement center representative 
     program.
       (2) Report.--Not later than 30 days after the pilot program 
     under paragraph (1) ends, 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 pilot program.

     SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       (a) In General.--The Small Business Act (15 U.S.C. 631 et 
     seq.) is amended--
       (1) by redesignating section 44 as section 45; and
       (2) by inserting after section 43 the following:

     ``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       ``(a) Definitions.--In this section--
       ``(1) the term `Chief Acquisition Officer' means the 
     employee of a Federal agency designated as the Chief 
     Acquisition Officer for the Federal agency under section 
     16(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 414(a));
       ``(2) the term `consolidation of contract requirements', 
     with respect to contract requirements of a Federal agency, 
     means a use

[[Page S5604]]

     of a solicitation to obtain offers for a single contract or a 
     multiple award contract to satisfy 2 or more requirements of 
     the Federal agency for goods or services that have been 
     provided to or performed for the Federal agency under 2 or 
     more separate contracts lower in cost than the total cost of 
     the contract for which the offers are solicited; and
       ``(3) the term `senior procurement executive' means an 
     official designated under section 16(c) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 414(c)) as the 
     senior procurement executive for a Federal agency.
       ``(b) Policy.--The head of each Federal agency shall ensure 
     that the decisions made by the Federal agency regarding 
     consolidation of contract requirements of the Federal agency 
     are made with a view to providing small business concerns 
     with appropriate opportunities to participate as prime 
     contractors and subcontractors in the procurements of the 
     Federal agency.
       ``(c) Limitation on Use of Acquisition Strategies Involving 
     Consolidation.--
       ``(1) In general.--Subject to paragraph (4), the head of a 
     Federal agency may not carry out an acquisition strategy that 
     includes a consolidation of contract requirements of the 
     Federal agency with a total value of more than $2,000,000, 
     unless the senior procurement executive or Chief Acquisition 
     Officer for the Federal agency, before carrying out the 
     acquisition strategy--
       ``(A) conducts market research;
       ``(B) identifies any alternative contracting approaches 
     that would involve a lesser degree of consolidation of 
     contract requirements;
       ``(C) makes a written determination that the consolidation 
     of contract requirements is necessary and justified;
       ``(D) identifies any negative impact by the acquisition 
     strategy on contracting with small business concerns; and
       ``(E) certifies to the head of the Federal agency that 
     steps will be taken to include small business concerns in the 
     acquisition strategy.
       ``(2) Determination that consolidation is necessary and 
     justified.--
       ``(A) In general.--A senior procurement executive or Chief 
     Acquisition Officer may determine that an acquisition 
     strategy involving a consolidation of contract requirements 
     is necessary and justified for the purposes of paragraph 
     (1)(C) if the benefits of the acquisition strategy 
     substantially exceed the benefits of each of the possible 
     alternative contracting approaches identified under paragraph 
     (1)(B).
       ``(B) Savings in administrative or personnel costs.--For 
     purposes of subparagraph (A), savings in administrative or 
     personnel costs alone do not constitute a sufficient 
     justification for a consolidation of contract requirements in 
     a procurement unless the expected total amount of the cost 
     savings, as determined by the senior procurement executive or 
     Chief Acquisition Officer, is expected to be substantial in 
     relation to the total cost of the procurement.
       ``(3) Benefits to be considered.--The benefits considered 
     for the purposes of paragraphs (1) and (2) may include cost 
     and, regardless of whether quantifiable in dollar amounts--
       ``(A) quality;
       ``(B) acquisition cycle;
       ``(C) terms and conditions; and
       ``(D) any other benefit.
       ``(4) Department of defense.--
       ``(A) In general.--The Department of Defense and each 
     military department shall comply with this section until 
     after the date described in subparagraph (C).
       ``(B) Rule.--After the date described in subparagraph (C), 
     contracting by the Department of Defense or a military 
     department shall be conducted in accordance with section 2382 
     of title 10, United States Code.
       ``(C) Date.--The date described in this subparagraph is the 
     date on which the Administrator determines the Department of 
     Defense or a military department is in compliance with the 
     Government-wide contracting goals under section 15.''.
       (b) Technical and Conforming Amendment.--Section 2382(b)(1) 
     of title 10, United States Code, is amended by striking ``An 
     official'' and inserting ``Subject to section 44(c)(4), an 
     official''.

     SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM.

       (a) Definitions.--In this section--
       (1) the term ``Pilot Program'' means the Small Business 
     Teaming Pilot Program established under subsection (b); and
       (2) the term ``eligible organization'' means a well-
     established national organization for small business concerns 
     with the capacity to provide assistance to small business 
     concerns (which may be provided with the assistance of the 
     Administrator) relating to--
       (A) customer relations and outreach;
       (B) team relations and outreach; and
       (C) performance measurement and quality assurance.
       (b) Establishment.--The Administrator shall establish a 
     Small Business Teaming Pilot Program for teaming and joint 
     ventures involving small business concerns.
       (c) Grants.--Under the Pilot Program, the Administrator may 
     make grants to eligible organizations to provide assistance 
     and guidance to teams of small business concerns seeking to 
     compete for larger procurement contracts.
       (d) Contracting Opportunities.--The Administrator shall 
     work with eligible organizations receiving a grant under the 
     Pilot Program to recommend appropriate contracting 
     opportunities for teams or joint ventures of small business 
     concerns.
       (e) Report.--Not later than 1 year before the date on which 
     the authority to carry out the Pilot Program terminates under 
     subsection (f), the Administrator 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 on the effectiveness of the Pilot 
     Program.
       (f) Termination.--The authority to carry out the Pilot 
     Program shall terminate 5 years after the date of enactment 
     of this Act.
       (g) Authorization of Appropriations.--There are authorized 
     to be appropriated for grants under subsection (c) $5,000,000 
     for each of fiscal years 2010 through 2015.

                   PART II--SUBCONTRACTING INTEGRITY

     SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS.

       Not later than 1 year after the date of enactment of this 
     Act, the Administrator, in consultation with the 
     Administrator for Federal Procurement Policy, shall 
     promulgate regulations relating to, and the Federal 
     Acquisition Regulatory Council established under section 
     25(a) of the Office of Federal Procurement Policy Act (41 
     U.S.C. 421(a)) shall amend the Federal Acquisition Regulation 
     issued under section 25 of such Act to establish a policy on, 
     subcontracting compliance relating to small business 
     concerns, including assignment of compliance responsibilities 
     between contracting offices, small business offices, and 
     program offices and periodic oversight and review activities.

     SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

       Section 8(d)(6) of the Small Business Act (15 U.S.C. 
     637(d)(6)) is amended--
       (1) in subparagraph (E), by striking ``and'' at the end;
       (2) in subparagraph (F), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end, the following:
       ``(G) a representation that the offeror or bidder will--
       ``(i) make a good faith effort to acquire articles, 
     equipment, supplies, services, or materials, or obtain the 
     performance of construction work from the small business 
     concerns used in preparing and submitting to the contracting 
     agency the bid or proposal, in the same amount and quality 
     used in preparing and submitting the bid or proposal; and
       ``(ii) provide to the contracting officer a written 
     explanation if the offeror or bidder fails to acquire 
     articles, equipment, supplies, services, or materials or 
     obtain the performance of construction work as described in 
     clause (i).''.

                     PART III--ACQUISITION PROCESS

     SEC. 1331. RESERVATION OF PRIME CONTRACT AWARDS FOR SMALL 
                   BUSINESSES.

       Section 15 of the Small Business Act (15 U.S.C. 644), as 
     amended by this Act, is amended by adding at the end the 
     following:
       ``(r) Multiple Award Contracts.--Not later than 1 year 
     after the date of enactment of this subsection, the 
     Administrator for Federal Procurement Policy and the 
     Administrator, in consultation with the Administrator of 
     General Services, shall, by regulation, establish guidance 
     under which Federal agencies may, at their discretion--
       ``(1) set aside part or parts of a multiple award contract 
     for small business concerns, including the subcategories of 
     small business concerns identified in subsection (g)(2);
       ``(2) notwithstanding the fair opportunity requirements 
     under section 2304c(b) of title 10, United States Code, and 
     section 303J(b) of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253j(b)), set aside orders 
     placed against multiple award contracts for small business 
     concerns, including the subcategories of small business 
     concerns identified in subsection (g)(2); and
       ``(3) reserve 1 or more contract awards for small business 
     concerns under full and open multiple award procurements, 
     including the subcategories of small business concerns 
     identified in subsection (g)(2).''.

     SEC. 1332. MICRO-PURCHASE GUIDELINES.

       Not later than 1 year after the date of enactment of this 
     Act, the Director of the Office of Management and Budget, in 
     coordination with the Administrator of General Services, 
     shall issue guidelines regarding the analysis of purchase 
     card expenditures to identify opportunities for achieving and 
     accurately measuring fair participation of small business 
     concerns in purchases in an amount not in excess of the 
     micro-purchase threshold, as defined in section 32 of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 428) (in 
     this section referred to as ``micro-purchases''), consistent 
     with the national policy on small business participation in 
     Federal procurements set forth in sections 2(a) and 15(g) of 
     the Small Business Act (15 U.S.C. 631(a) and 644(g)), and 
     dissemination of best practices for participation of small 
     business concerns in micro-purchases.

     SEC. 1333. AGENCY ACCOUNTABILITY.

       Section 15(g)(2) of the Small Business Act (15 U.S.C. 
     644(g)(2)) is amended--
       (1) by inserting ``(A)'' after ``(2)'';
       (2) by striking ``Goals established'' and inserting the 
     following:
       ``(B) Goals established'';
       (3) by striking ``Whenever'' and inserting the following:
       ``(C) Whenever'';
       (4) by striking ``For the purpose of'' and inserting the 
     following:
       ``(D) For the purpose of'';

[[Page S5605]]

       (5) by striking ``The head of each Federal agency, in 
     attempting to attain such participation'' and inserting the 
     following:
       ``(E) The head of each Federal agency, in attempting to 
     attain the participation described in subparagraph (D)''.
       (6) in subparagraph (E), as so designated--
       (A) by striking ``(A) contracts'' and inserting ``(i) 
     contracts''; and
       (B) by striking ``(B) contracts'' and inserting ``(ii) 
     contracts''; and
       (7) by adding at the end the following:
       ``(F)(i) Each procurement employee or program manager 
     described in clause (ii) shall communicate to the 
     subordinates of the procurement employee or program manager 
     the importance of achieving small business goals.
       ``(ii) A procurement employee or program manager described 
     in this clause is a senior procurement executive, senior 
     program manager, or Director of Small and Disadvantaged 
     Business Utilization of a Federal agency having contracting 
     authority.''.

     SEC. 1334. PAYMENT OF SUBCONTRACTORS.

       Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) 
     is amended by adding at the end the following:
       ``(12) Payment of Subcontractors.--
       ``(A) Definition.--In this paragraph, the term `covered 
     contract' means a contract relating to which a prime 
     contractor is required to develop a subcontracting plan under 
     paragraph (4) or (5).
       ``(B) Notice.--
       ``(i) In general.--A prime contractor for a covered 
     contract shall notify in writing the contracting officer for 
     the covered contract if the prime contractor pays a reduced 
     price to a subcontractor for goods and services upon 
     completion of the responsibilities of the subcontractor or 
     the payment to a subcontractor is more than 90 days past due 
     for goods or services provided for the covered contract for 
     which the Federal agency has paid the prime contractor.
       ``(ii) Contents.--A prime contractor shall include the 
     reason for the reduction in a payment to or failure to pay a 
     subcontractor in any notice made under clause (i).
       ``(C) Performance.--A contracting officer for a covered 
     contract shall consider the unjustified failure by a prime 
     contractor to make a full or timely payment to a 
     subcontractor in evaluating the performance of the prime 
     contractor.
       ``(D) Control of funds.--If the contracting officer for a 
     covered contract determines that a prime contractor has a 
     history of unjustified, untimely payments to contractors, the 
     contracting officer shall record the identity of the 
     contractor in accordance with the regulations promulgated 
     under subparagraph (E).
       ``(E) Regulations.--Not later than 1 year after the date of 
     enactment of this paragraph, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 421(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) describe the circumstances under which a contractor 
     may be determined to have a history of unjustified, untimely 
     payments to subcontractors;
       ``(ii) establish a process for contracting officers to 
     record the identity of a contractor described in clause (i); 
     and
       ``(iii) require the identity of a contractor described in 
     clause (i) to be incorporated in, and made publicly available 
     through, the Federal Awardee Performance and Integrity 
     Information System, or any successor thereto.''.

     SEC. 1335. REPEAL OF SMALL BUSINESS COMPETITIVENESS 
                   DEMONSTRATION PROGRAM.

       (a) In General.--The Business Opportunity Development 
     Reform Act of 1988 (Public Law 100-656) is amended by 
     striking title VII (15 U.S.C. 644 note).
       (b) Effective Date and Applicability.--The amendment made 
     by this section--
       (1) shall take effect on the date of enactment of this Act; 
     and
       (2) apply to the first full fiscal year after the date of 
     enactment of this Act.

           PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

     SEC. 1341. POLICY AND PRESUMPTIONS.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1311, is amended by adding at the end the 
     following:
       ``(w) Presumption.--
       ``(1) In general.--In every contract, subcontract, 
     cooperative agreement, cooperative research and development 
     agreement, or grant which is set aside, reserved, or 
     otherwise classified as intended for award to small business 
     concerns, there shall be a presumption of loss to the United 
     States based on the total amount expended on the contract, 
     subcontract, cooperative agreement, cooperative research and 
     development agreement, or grant whenever it is established 
     that a business concern other than a small business concern 
     willfully sought and received the award by misrepresentation.
       ``(2) Deemed certifications.--The following actions shall 
     be deemed affirmative, willful, and intentional 
     certifications of small business size and status:
       ``(A) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement reserved, set aside, or 
     otherwise classified as intended for award to small business 
     concerns.
       ``(B) Submission of a bid or proposal for a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research and development agreement which in any way 
     encourages a Federal agency to classify the bid or proposal, 
     if awarded, as an award to a small business concern.
       ``(C) Registration on any Federal electronic database for 
     the purpose of being considered for award of a Federal grant, 
     contract, subcontract, cooperative agreement, or cooperative 
     research agreement, as a small business concern.
       ``(3) Certification by signature of responsible official.--
       ``(A) In general.--Each solicitation, bid, or application 
     for a Federal contract, subcontract, or grant shall contain a 
     certification concerning the small business size and status 
     of a business concern seeking the Federal contract, 
     subcontract, or grant.
       ``(B) Content of certifications.--A certification that a 
     business concern qualifies as a small business concern of the 
     exact size and status claimed by the business concern for 
     purposes of bidding on a Federal contract or subcontract, or 
     applying for a Federal grant, shall contain the signature of 
     an authorized official on the same page on which the 
     certification is contained.
       ``(4) Regulations.--The Administrator shall promulgate 
     regulations to provide adequate protections to individuals 
     and business concerns from liability under this subsection in 
     cases of unintentional errors, technical malfunctions, and 
     other similar situations.''.

     SEC. 1342. ANNUAL CERTIFICATION.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1341, is amended by adding at the end the 
     following:
       ``(x) Annual Certification.--
       ``(1) In general.--Each business certified as a small 
     business concern under this Act shall annually certify its 
     small business size and, if appropriate, its small business 
     status, by means of a confirming entry on the Online 
     Representations and Certifications Application database of 
     the Administration, or any successor thereto.
       ``(2) Regulations.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Inspector General and the Chief Counsel 
     for Advocacy of the Administration, shall promulgate 
     regulations to ensure that--
       ``(A) no business concern continues to be certified as a 
     small business concern on the Online Representations and 
     Certifications Application database of the Administration, or 
     any successor thereto, without fulfilling the requirements 
     for annual certification under this subsection; and
       ``(B) the requirements of this subsection are implemented 
     in a manner presenting the least possible regulatory burden 
     on small business concerns.''.

     SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT 
                   PERSONNEL.

       (a) In General.--Not later than 1 year after the date of 
     enactment of this Act, the Federal Acquisition Institute, in 
     consultation with the Administrator for Federal Procurement 
     Policy, the Defense Acquisition University, and the 
     Administrator, shall develop courses for acquisition 
     personnel concerning proper classification of business 
     concerns and small business size and status for purposes of 
     Federal contracts, subcontracts, grants, cooperative 
     agreements, and cooperative research and development 
     agreements.
       (b) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Section 3 of the Small Business Act (15 U.S.C. 
     632), as amended by section 1342, is amended by adding at the 
     end the following:
       ``(y) Policy on Prosecutions of Small Business Size and 
     Status Fraud.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Attorney General, shall issue a 
     Government-wide policy on prosecution of small business size 
     and status fraud, which shall direct Federal agencies to 
     appropriately publicize the policy.''.

     SEC. 1344. UPDATED SIZE STANDARDS.

       (a) Rolling Review.--
       (1) In general.--The Administrator shall--
       (A) during the 18-month period beginning on the date of 
     enactment of this Act, and during every 18-month period 
     thereafter, conduct a detailed review of not less than \1/3\ 
     of the size standards for small business concerns established 
     under section 3(a)(2) of the Small Business Act (15 U.S.C. 
     632(a)(2)), which shall include holding not less than 2 
     public forums located in different geographic regions of the 
     United States;
       (B) after completing each review under subparagraph (A) 
     make appropriate adjustments to the size standards 
     established under section 3(a)(2) of the Small Business Act 
     to reflect market conditions;
       (C) make publicly available--
       (i) information regarding the factors evaluated as part of 
     each review conducted under subparagraph (A); and
       (ii) information regarding the criteria used for any 
     revised size standards promulgated under subparagraph (B); 
     and
       (D) not later than 30 days after the date on which the 
     Administrator completes each review under subparagraph (A), 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives and make publicly 
     available a report regarding the review, including why the 
     Administrator--
       (i) used the factors and criteria described in subparagraph 
     (C); and

[[Page S5606]]

       (ii) adjusted or did not adjust each size standard that was 
     reviewed under the review.
       (2) Complete review of size standards.--The Administrator 
     shall ensure that each size standard for small business 
     concerns established under section 3(a)(2) of the Small 
     Business Act (15 U.S.C. 632(a)(2)) is reviewed under 
     paragraph (1) not less frequently than once every 5 years.
       (b) Rules.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall promulgate 
     rules for conducting the reviews required under subsection 
     (a).

     SEC. 1345. STUDY AND REPORT ON THE MENTOR-PROTEGE PROGRAM.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the mentor-protege program of 
     the Administration for small business concerns participating 
     in programs under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)), and other relationships and strategic 
     alliances pairing a larger business and a small business 
     concern partner to gain access to Federal Government 
     contracts, to determine whether the programs and 
     relationships are effectively supporting the goal of 
     increasing the participation of small business concerns in 
     Government contracting.
       (b) Matters To Be Studied.--The study conducted under this 
     section shall include--
       (1) a review of a broad cross-section of industries; and
       (2) an evaluation of--
       (A) how each Federal agency carrying out a program 
     described in subsection (a) administers and monitors the 
     program;
       (B) whether there are systems in place to ensure that the 
     mentor-protege relationship, or similar affiliation, promotes 
     real gain to the protege, and is not just a mechanism to 
     enable participants that would not otherwise qualify under 
     section 8(a) of the Small Business Act (15 U.S.C. 637(a)) to 
     receive contracts under that section; and
       (C) the degree to which protege businesses become able to 
     compete for Federal contracts without the assistance of a 
     mentor.
       (c) Report to Congress.--Not later than 180 days after the 
     date of enactment of this Act, the Comptroller General 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 on the 
     results of the study conducted under this section.

     SEC. 1346. CONTRACTING GOALS REPORTS.

       Section 15(h)(2) of the Small Business Act (15 U.S.C. 
     644(h)(2)) is amended by striking ``submit them'' and all 
     that follows through ``the following:'' and inserting 
     ``submit to the President and the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives the compilation and 
     analysis, which shall include the following:''.

     SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.

       (a) Definitions.--In this section--
       (1) the terms ``Administration'' and ``Administrator'' mean 
     the Small Business Administration and the Administrator 
     thereof, respectively; and
       (2) the terms ``HUBZone small business concern'', ``small 
     business concern'', ``small business concern owned and 
     controlled by service-disabled veterans'', and ``small 
     business concern owned and controlled by women'' have the 
     same meanings as in section 3 of the Small Business Act (15 
     U.S.C. 632).
       (b) Contracting Improvements.--
       (1) Contracting opportunities.--Section 31(b)(2)(B) of the 
     Small Business Act (15 U.S.C. 657a(b)(2)(B)) is amended by 
     striking ``shall'' and inserting ``may''.
       (2) Contracting goals.--Section 15(g)(1) of the Small 
     Business Act (15 U.S.C. 644(g)(1)) is amended in the fourth 
     sentence by inserting ``and subcontract'' after ``not less 
     than 3 percent of the total value of all prime contract''.
       (3) Mentor-protege programs.--The Administrator may 
     establish mentor-protege programs for small business concerns 
     owned and controlled by service-disabled veterans, small 
     business concerns owned and controlled by women, and HUBZone 
     small business concerns modeled on the mentor-protege program 
     of the Administration for small business concerns 
     participating in programs under section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)).
       (c) Small Business Contracting Programs Parity.--Section 
     31(b)(2) of the Small Business Act (15 U.S.C. 657a(b)(2)) is 
     amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``Notwithstanding any other provision of law--'';
       (2) in subparagraph (A)--
       (A) in the matter preceding clause (i), by striking ``a 
     contracting'' and inserting ``Sole source contracts.--A 
     contracting''; and
       (B) in clause (iii), by striking the semicolon at the end 
     and inserting a period;
       (3) in subparagraph (B)--
       (A) by striking ``a contract opportunity shall'' and 
     inserting ``Restricted competition.--A contract opportunity 
     may''; and
       (B) by striking ``; and'' and inserting a period; and
       (4) in subparagraph (C), by striking ``not later'' and 
     inserting ``Appeals.--Not later''.

    Subtitle D--Small Business Management and Counseling Assistance

     SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS 
                   PROGRAMS.

       (a) Microloan Program.--Section 7(m) of the Small Business 
     Act (15 U.S.C. 636(m)) is amended--
       (1) in paragraph (3)(B)--
       (A) by striking ``As a condition'' and inserting the 
     following:
       ``(i) In general.--Subject to clause (ii), as a 
     condition'';
       (B) by striking ``the Administration'' and inserting ``the 
     Administrator''; and
       (C) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''; and
       (2) in paragraph (4)(B)--
       (A) by striking ``As a condition'' and all that follows 
     through ``the Administration shall require'' and inserting 
     the following:
       ``(i) In general.--Subject to clause (ii), as a condition 
     of a grant made under subparagraph (A), the Administrator 
     shall require''; and
       (B) by adding at the end the following:
       ``(ii) Waiver of non-federal share.--

       ``(I) In general.--Upon request by an intermediary, and in 
     accordance with this clause, the Administrator may waive, in 
     whole or in part, the requirement to obtain non-Federal funds 
     under clause (i) for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     clause for successive fiscal years.
       ``(II) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this clause, 
     the Administrator shall consider--

       ``(aa) the economic conditions affecting the intermediary;
       ``(bb) the impact a waiver under this clause would have on 
     the credibility of the microloan program under this 
     subsection;
       ``(cc) the demonstrated ability of the intermediary to 
     raise non-Federal funds; and
       ``(dd) the performance of the intermediary.

       ``(III) Limitations.--

       ``(aa) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause if 
     granting the waiver would undermine the credibility of the 
     microloan program under this subsection.
       ``(bb) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this clause for 
     fiscal year 2013 or any fiscal year thereafter.''.
       (b) Women's Business Center Program.--Section 29(c) of the 
     Small Business Act (15 U.S.C. 656(c)) is amended--
       (1) in paragraph (1), by striking ``As a condition'' and 
     inserting ``Subject to paragraph (5), as a condition''; and
       (2) by adding at the end the following:
       ``(5) Waiver of non-federal share relating to technical 
     assistance and counseling.--
       ``(A) In general.--Upon request by a recipient 
     organization, and in accordance with this paragraph, the 
     Administrator may waive, in whole or in part, the requirement 
     to obtain non-Federal funds under this subsection for the 
     technical assistance and counseling activities of the 
     recipient organization carried out using financial assistance 
     under this section for a fiscal year. The Administrator may 
     waive the requirement to obtain non-Federal funds under this 
     paragraph for successive fiscal years.
       ``(B) Considerations.--In determining whether to waive the 
     requirement to obtain non-Federal funds under this paragraph, 
     the Administrator shall consider--
       ``(i) the economic conditions affecting the recipient 
     organization;
       ``(ii) the impact a waiver under this clause would have on 
     the credibility of the women's business center program under 
     this section;
       ``(iii) the demonstrated ability of the recipient 
     organization to raise non-Federal funds; and
       ``(iv) the performance of the recipient organization.
       ``(C) Limitations.--
       ``(i) In general.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     if granting the waiver would undermine the credibility of the 
     women's business center program under this section.
       ``(ii) Sunset.--The Administrator may not waive the 
     requirement to obtain non-Federal funds under this paragraph 
     for fiscal year 2013 or any fiscal year thereafter.''.

[[Page S5607]]

       (c) Prospective Repeals.--Effective October 1, 2012, the 
     Small Business Act (15 U.S.C. 631 et seq.) is amended--
       (1) in section 7(m) (15 U.S.C. 636(m))--
       (A) in paragraph (3)(B)--
       (i) by striking ``Intermediary contribution.--'' and all 
     that follows through ``Subject to clause (ii), as'' and 
     inserting ``Intermediary contribution.--As''; and
       (ii) by striking clause (ii); and
       (B) in paragraph (4)(B)--
       (i) by striking ``Contribution.--'' and all that follows 
     through ``Subject to clause (ii), as'' and inserting 
     ``Contribution.--As''; and
       (ii) by striking clause (ii); and
       (2) in section 29(c) (15 U.S.C. 656(c))--
       (A) in paragraph (1), by striking ``Subject to paragraph 
     (5), as'' and inserting ``As''; and
       (B) by striking paragraph (5).

     SEC. 1402. GRANTS FOR SBDCS.

       (a) In General.--The Administrator may make grants to small 
     business development centers under section 21 of the Small 
     Business Act (15 U.S.C. 648) to provide targeted technical 
     assistance to small business concerns seeking access to 
     capital or credit, Federal procurement opportunities, energy 
     efficiency audits to reduce energy bills, opportunities to 
     export products or provide services to foreign customers, 
     adopting, making innovations in, and using broadband 
     technologies, or other assistance.
       (b) Allocation.--
       (1) In general.--Subject to paragraph (2), and 
     notwithstanding the requirements of section 21(a)(4)(C)(iii) 
     of the Small Business Act (15 U.S.C. 648(a)(4)(C)(iii)), the 
     amount appropriated to carry out this section shall be 
     allocated under the formula under section 21(a)(4)(C)(i) of 
     that Act.
       (2) Minimum funding.--The amount made available under this 
     section to each State shall be not less than $325,000.
       (3) Types of uses.--Of the total amount of the grants 
     awarded by the Administrator under this section--
       (A) not less than 80 percent shall be used for counseling 
     of small business concerns; and
       (B) not more than 20 percent may be used for classes or 
     seminars.
       (c) No Non-Federal Share Required.--Notwithstanding section 
     21(a)(4)(A) of the Small Business Act (15 U.S.C. 
     648(a)(4)(A)), the recipient of a grant made under this 
     section shall not be required to provide non-Federal matching 
     funds.
       (d) Distribution.--Not later than 30 days after the date on 
     which amounts are appropriated to carry out this section, the 
     Administrator shall disburse the total amount appropriated.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Administrator $50,000,000 to carry 
     out this section.

                 Subtitle E--Disaster Loan Improvement

     SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1343, is amended by adding at the end the 
     following:
       ``(z) Aquaculture Business Disaster Assistance.--Subject to 
     section 18(a) and notwithstanding section 18(b)(1), the 
     Administrator may provide disaster assistance under section 
     7(b)(2) to aquaculture enterprises that are small 
     businesses.''.

              Subtitle F--Small Business Regulatory Relief

     SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.

       Section 604(a) of title 5, United States Code, is amended--
       (1) in paragraph (1), by striking ``succinct'';
       (2) in paragraph (2), by striking ``summary'' each place it 
     appears and inserting ``statement'';
       (3) by redesignating paragraphs (3), (4), and (5) as 
     paragraphs (4), (5), and (6), respectively; and
       (4) by inserting after paragraph (2) the following:
       ``(3) the response of the agency to any comments filed by 
     the Chief Counsel for Advocacy of the Small Business 
     Administration in response to the proposed rule, and a 
     detailed statement of any change made to the proposed rule in 
     the final rule as a result of the comments;''.

     SEC. 1602. OFFICE OF ADVOCACY.

       (a) In General.--Section 203 of Public Law 94-305 (15 
     U.S.C. 634c) is amended--
       (1) in paragraph (4), by striking ``and'' at the end;
       (2) in paragraph (5), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(6) carry out the responsibilities of the Office of 
     Advocacy under chapter 6 of title 5, United States Code.''.
       (b) Budgetary Line Item and Authorization of 
     Appropriations.--Title II of Public Law 94-305 (15 U.S.C. 
     634a et seq.) is amended by striking section 207 and 
     inserting the following:

     ``SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF 
                   APPROPRIATIONS.

       ``(a) Appropriation Requests.--Each budget of the United 
     States Government submitted by the President under section 
     1105 of title 31, United States Code, shall include a 
     separate statement of the amount of appropriations requested 
     for the Office of Advocacy of the Small Business 
     Administration, which shall be designated in a separate 
     account in the General Fund of the Treasury.
       ``(b) Administrative Operations.--The Administrator of the 
     Small Business Administration shall provide the Office of 
     Advocacy with appropriate and adequate office space at 
     central and field office locations, together with such 
     equipment, operating budget, and communications facilities 
     and services as may be necessary, and shall provide necessary 
     maintenance services for such offices and the equipment and 
     facilities located in such offices.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this title. Any amount appropriated under this 
     subsection shall remain available, without fiscal year 
     limitation, until expended.''.

                 Subtitle G--Appropriations Provisions

     SEC. 1701. SALARIES AND EXPENSES.

       (a) Appropriation.--There is appropriated, out of any money 
     in the Treasury not otherwise appropriated, for the fiscal 
     year ending September 30, 2010, $150,000,000, to remain 
     available until September 30, 2012, for an additional amount 
     for the appropriations account appropriated under the heading 
     ``salaries and expenses'' under the heading ``Small Business 
     Administration'', of which--
       (1) $50,000,000 is for grants to small business development 
     centers authorized under section 1402;
       (2) $1,000,000 is for the costs of administering grants 
     authorized under section 1402;
       (3) $30,000,000 is for grants to States for fiscal year 
     2011 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (4) $30,000,000 is for grants to States for fiscal year 
     2012 to carry out export programs that assist small business 
     concerns authorized under section 1207;
       (5) $2,500,000 is for the costs of administering grants 
     authorized under section 1207;
       (6) $5,000,000 is for grants for fiscal year 2011 under the 
     Small Business Teaming Pilot Program under section 1314; and
       (7) $5,000,000 is for grants for fiscal year 2012 under the 
     Small Business Teaming Pilot Program under section 1314.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Appropriations of the Senate and the Committee 
     on Appropriations of the House of Representatives a detailed 
     expenditure plan for using the funds provided under 
     subsection (a).

     SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.

       (a) In General.--There is appropriated, out of any money in 
     the Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 2010, for an additional amount for the 
     appropriations account appropriated under the heading 
     ``business loans program account'' under the heading ``Small 
     Business Administration''--
       (1) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2011 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (2) $8,000,000, to remain available until September 30, 
     2012, for fiscal year 2012 for the cost of direct loans 
     authorized under section 7(l) of the Small Business Act, as 
     added by section 1131 of this title, including the cost of 
     modifying the loans;
       (3) $6,500,000, to remain available until September 30, 
     2012, for administrative expenses to carry out the direct 
     loan program authorized under section 7(l) of the Small 
     Business Act, as added by section 1131 of this title, which 
     may be transferred to and merged with the appropriations 
     account appropriated under the heading ``salaries and 
     expenses'' under the heading ``Small Business 
     Administration''; and
       (4) $15,000,000, to remain available until September 30, 
     2011, for the cost of guaranteed loans as authorized under 
     section 7(a) of the Small Business Act, including the cost of 
     modifying the loans.
       (b) Definition.--In this section, the term ``cost'' has the 
     meaning given that term in section 502 of the Congressional 
     Budget Act of 1974.

     SEC. 1703. COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND 
                   PROGRAM ACCOUNT.

       There is appropriated, out of any money in the Treasury not 
     otherwise appropriated, for the fiscal year ending September 
     30, 2010, for an additional amount for the appropriations 
     account appropriated under the heading ``community 
     development financial institutions fund program account'' 
     under the heading ``DEPARTMENT OF THE TREASURY'', 
     $13,500,000, to remain available until September 30, 2012, 
     for the costs of administering guarantees for bonds and notes 
     as authorized under section 114A of the Riegle Community 
     Development and Regulatory Improvement Act of 1994, as added 
     by section 1134 of this Act.

                        TITLE II--TAX PROVISIONS

     SEC. 2001. SHORT TITLE.

       This title may be cited as the ``Creating Small Business 
     Jobs Act of 2010''.

                   Subtitle A--Small Business Relief

                  PART I--PROVIDING ACCESS TO CAPITAL

     SEC. 2011. TEMPORARY EXCLUSION OF 100 PERCENT OF GAIN ON 
                   CERTAIN SMALL BUSINESS STOCK.

       (a) In General.--Subsection (a) of section 1202 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(4) 100 percent exclusion for stock acquired during 
     certain periods in 2010.--In the case of qualified small 
     business stock acquired after the date of the enactment of 
     the

[[Page S5608]]

     Creating Small Business Jobs Act of 2010 and before January 
     1, 2011--
       ``(A) paragraph (1) shall be applied by substituting `100 
     percent' for `50 percent',
       ``(B) paragraph (2) shall not apply, and
       ``(C) paragraph (7) of section 57(a) shall not apply.''.
       (b) Conforming Amendment.--Paragraph (3) of section 1202(a) 
     of the Internal Revenue Code of 1986 is amended--
       (1) by inserting ``certain periods in'' before ``2010'' in 
     the heading, and
       (2) by striking ``before January 1, 2011'' and inserting 
     ``on or before the date of the enactment of the Creating 
     Small Business Jobs Act of 2010''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to stock acquired after the date of the enactment 
     of this Act.

     SEC. 2012. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES FOR 2010 CARRIED BACK 5 YEARS.

       (a) In General.--Section 39(a) of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     paragraph:
       ``(4) 5-year carryback for eligible small business 
     credits.--
       ``(A) In general.--Notwithstanding subsection (d), in the 
     case of eligible small business credits determined in the 
     first taxable year of the taxpayer beginning in 2010--
       ``(i) paragraph (1) shall be applied by substituting `each 
     of the 5 taxable years' for `the taxable year' in 
     subparagraph (A) thereof, and
       ``(ii) paragraph (2) shall be applied--

       ``(I) by substituting `25 taxable years' for `21 taxable 
     years' in subparagraph (A) thereof, and
       ``(II) by substituting `24 taxable years' for `20 taxable 
     years' in subparagraph (B) thereof.

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     has the meaning given such term by section 38(c)(5)(B).''.
       (b) Conforming Amendment.--Section 39(a)(3)(A) of the 
     Internal Revenue Code of 1986 is amended by inserting ``or 
     the eligible small business credits'' after ``credit)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009.

     SEC. 2013. GENERAL BUSINESS CREDITS OF ELIGIBLE SMALL 
                   BUSINESSES IN 2010 NOT SUBJECT TO ALTERNATIVE 
                   MINIMUM TAX.

       (a) In General.--Section 38(c) of the Internal Revenue Code 
     of 1986 is amended by redesignating paragraph (5) as 
     paragraph (6) and by inserting after paragraph (4) the 
     following new paragraph:
       ``(5) Special rules for eligible small business credits in 
     2010.--
       ``(A) In general.--In the case of eligible small business 
     credits determined in taxable years beginning in 2010--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credits, and
       ``(ii) in applying paragraph (1) to such credits--

       ``(I) the tentative minimum tax shall be treated as being 
     zero, and
       ``(II) the limitation under paragraph (1) (as modified by 
     subclause (I)) shall be reduced by the credit allowed under 
     subsection (a) for the taxable year (other than the eligible 
     small business credits).

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     means the sum of the credits listed in subsection (b) which 
     are determined for the taxable year with respect to an 
     eligible small business. Such credits shall not be taken into 
     account under paragraph (2), (3), or (4).
       ``(C) Eligible small business.--For purposes of this 
     subsection, the term `eligible small business' means, with 
     respect to any taxable year--
       ``(i) a corporation the stock of which is not publicly 
     traded,
       ``(ii) a partnership, or
       ``(iii) a sole proprietorship,
     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.''.
       (b) Technical Amendment.--Section 55(e)(5) of the Internal 
     Revenue Code of 1986 is amended by striking ``38(c)(3)(B)'' 
     and inserting ``38(c)(4)(B)''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009, and to carrybacks of such credits.

     SEC. 2014. TEMPORARY REDUCTION IN RECOGNITION PERIOD FOR 
                   BUILT-IN GAINS TAX.

       (a) In General.--Subparagraph (B) of section 1374(d)(7) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) Special rules for 2009, 2010, and 2011.--No tax shall 
     be imposed on the net recognized built-in gain of an S 
     corporation--
       ``(i) in the case of any taxable year beginning in 2009 or 
     2010, if the 7th taxable year in the recognition period 
     preceded such taxable year, or
       ``(ii) in the case of any taxable year beginning in 2011, 
     if the 5th year in the recognition period preceded such 
     taxable year.
     The preceding sentence shall be applied separately with 
     respect to any asset to which paragraph (8) applies.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                    PART II--ENCOURAGING INVESTMENT

     SEC. 2021. INCREASED EXPENSING LIMITATIONS FOR 2010 AND 2011; 
                   CERTAIN REAL PROPERTY TREATED AS SECTION 179 
                   PROPERTY.

       (a) Increased Limitations.--Subsection (b) of section 179 
     of the Internal Revenue Code of 1986 is amended--
       (1) by striking ``shall not exceed'' and all that follows 
     in paragraph (1) and inserting ``shall not exceed--
       ``(A) $250,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $500,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $25,000 in the case of taxable years beginning after 
     2011.'', and
       (2) by striking ``exceeds'' and all that follows in 
     paragraph (2) and inserting ``exceeds--
       ``(A) $800,000 in the case of taxable years beginning after 
     2007 and before 2010,
       ``(B) $2,000,000 in the case of taxable years beginning in 
     2010 or 2011, and
       ``(C) $200,000 in the case of taxable years beginning after 
     2011.''.
       (b) Inclusion of Certain Real Property.--Section 179 of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new subsection:
       ``(f) Special Rules for Qualified Real Property.--
       ``(1) In general.--If a taxpayer elects the application of 
     this subsection for any taxable year beginning in 2010 or 
     2011, the term `section 179 property' shall include any 
     qualified real property which is--
       ``(A) of a character subject to an allowance for 
     depreciation,
       ``(B) acquired by purchase for use in the active conduct of 
     a trade or business, and
       ``(C) not described in the last sentence of subsection 
     (d)(1).
       ``(2) Qualified real property.--For purposes of this 
     subsection, the term `qualified real property' means--
       ``(A) qualified leasehold improvement property described in 
     section 168(e)(6),
       ``(B) qualified restaurant property described in section 
     168(e)(7) (without regard to the dates specified in 
     subparagraph (A)(i) thereof), and
       ``(C) qualified retail improvement property described in 
     section 168(e)(8) (without regard to subparagraph (E) 
     thereof).
       ``(3) Limitation.--For purposes of applying the limitation 
     under subsection (b)(1)(B), not more than $250,000 of the 
     aggregate cost which is taken into account under subsection 
     (a) for any taxable year may be attributable to qualified 
     real property.
       ``(4) Carryover limitation.--
       ``(A) In general.--Notwithstanding subsection (b)(3)(B), no 
     amount attributable to qualified real property may be carried 
     over to a taxable year beginning after 2011.
       ``(B) Treatment of disallowed amounts.--Except as provided 
     in subparagraph (C), to the extent that any amount is not 
     allowed to be carried over to a taxable year beginning after 
     2011 by reason of subparagraph (A), this title shall be 
     applied as if no election under this section had been made 
     with respect to such amount.
       ``(C) Amounts carried over from 2010.--If subparagraph (B) 
     applies to any amount (or portion of an amount) which is 
     carried over from a taxable year other than the taxpayer's 
     last taxable year beginning in 2011, such amount (or portion 
     of an amount) shall be treated for purposes of this title as 
     attributable to property placed in service on the first day 
     of the taxpayer's last taxable year beginning in 2011.
       ``(D) Allocation of amounts.--For purposes of applying this 
     paragraph and subsection (b)(3)(B) to any taxable year, the 
     amount which is disallowed under subsection (b)(3)(A) for 
     such taxable year which is attributed to qualified real 
     property shall be the amount which bears the same ratio to 
     the total amount so disallowed as--
       ``(i) the aggregate amount attributable to qualified real 
     property placed in service during such taxable year, 
     increased by the portion of any amount carried over to such 
     taxable year from a prior taxable year which is attributable 
     to such property, bears to
       ``(ii) the total amount of section 179 property placed in 
     service during such taxable year, increased by the aggregate 
     amount carried over to such taxable year from any prior 
     taxable year.
     For purposes of the preceding sentence, only section 179 
     property with respect to which an election was made under 
     subsection (c)(1) (determined without regard to subparagraph 
     (B) of this paragraph) shall be taken into account.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years beginning after such date.

     SEC. 2022. ADDITIONAL FIRST-YEAR DEPRECIATION FOR 50 PERCENT 
                   OF THE BASIS OF CERTAIN QUALIFIED PROPERTY.

       (a) In General.--Paragraph (2) of section 168(k) of the 
     Internal Revenue Code of 1986 is amended--
       (1) by striking ``January 1, 2011'' in subparagraph (A)(iv) 
     and inserting ``January 1, 2012'', and
       (2) by striking ``January 1, 2010'' each place it appears 
     and inserting ``January 1, 2011''.
       (b) Conforming Amendments.--
       (1) The heading for subsection (k) of section 168 of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``January 1, 2010'' and inserting ``January 1, 2011''.

[[Page S5609]]

       (2) The heading for clause (ii) of section 168(k)(2)(B) of 
     such Code is amended by striking ``Pre-january 1, 2010'' and 
     inserting ``Pre-january 1, 2011''.
       (3) Subparagraph (D) of section 168(k)(4) of such Code is 
     amended by striking ``and'' at the end of clause (ii), by 
     striking the period at the end of clause (iii) and inserting 
     a comma, and by adding at the end the following new clauses:
       ``(iv) `January 1, 2011' shall be substituted for `January 
     1, 2012' in subparagraph (A)(iv) thereof, and
       ``(v) `January 1, 2010' shall be substituted for `January 
     1, 2011' each place it appears in subparagraph (A) 
     thereof.''.
       (4) Subparagraph (B) of section 168(l)(5) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (5) Subparagraph (C) of section 168(n)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (6) Subparagraph (D) of section 1400L(b)(2) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (7) Subparagraph (B) of section 1400N(d)(3) of such Code is 
     amended by striking ``January 1, 2010'' and inserting 
     ``January 1, 2011''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to property placed in service after December 31, 
     2009, in taxable years beginning after such date.

                  PART III--PROMOTING ENTREPRENEURSHIP

     SEC. 2031. INCREASE IN AMOUNT ALLOWED AS DEDUCTION FOR START-
                   UP EXPENDITURES IN 2010.

       (a) Start-up Expenditures.--Subsection (b) of section 195 
     of the Internal Revenue Code of 1986 is amended by adding at 
     the end the following new paragraph:
       ``(3) Special rule for taxable years beginning in 2010.--In 
     the case of a taxable year beginning in 2010, paragraph 
     (1)(A)(ii) shall be applied--
       ``(A) by substituting `$10,000' for `$5,000', and
       ``(B) by substituting `$60,000' for `$50,000'.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts paid or incurred in taxable years 
     beginning after December 31, 2009.

     SEC. 2032. AUTHORIZATION OF APPROPRIATIONS FOR THE UNITED 
                   STATES TRADE REPRESENTATIVE TO DEVELOP MARKET 
                   ACCESS OPPORTUNITIES FOR UNITED STATES SMALL- 
                   AND MEDIUM-SIZED BUSINESSES AND TO ENFORCE 
                   TRADE AGREEMENTS.

       (a) In General.--There are authorized to be appropriated to 
     the Office of the United States Trade Representative 
     $5,230,000, to remain available until expended, for--
       (1) analyzing and developing opportunities for businesses 
     in the United States to access the markets of foreign 
     countries; and
       (2) enforcing trade agreements to which the United States 
     is a party.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated under subsection (a), the 
     United States Trade Representative shall--
       (1) give preference to those initiatives that the United 
     States Trade Representative determines will create or sustain 
     the greatest number of jobs in the United States or result in 
     the greatest benefit to the economy of the United States; and
       (2) consider the needs of small- and medium-sized 
     businesses in the United States with respect to--
       (A) accessing the markets of foreign countries; and
       (B) the enforcement of trade agreements to which the United 
     States is a party.

               PART IV--PROMOTING SMALL BUSINESS FAIRNESS

     SEC. 2041. LIMITATION ON PENALTY FOR FAILURE TO DISCLOSE 
                   REPORTABLE TRANSACTIONS BASED ON RESULTING TAX 
                   BENEFITS.

       (a) In General.--Subsection (b) of section 6707A of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(b) Amount of Penalty.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the amount of the penalty under subsection (a) 
     with respect to any reportable transaction shall be 75 
     percent of the decrease in tax shown on the return as a 
     result of such transaction (or which would have resulted from 
     such transaction if such transaction were respected for 
     Federal tax purposes).
       ``(2) Maximum penalty.--The amount of the penalty under 
     subsection (a) with respect to any reportable transaction 
     shall not exceed--
       ``(A) in the case of a listed transaction, $200,000 
     ($100,000 in the case of a natural person), or
       ``(B) in the case of any other reportable transaction, 
     $50,000 ($10,000 in the case of a natural person).
       ``(3) Minimum penalty.--The amount of the penalty under 
     subsection (a) with respect to any transaction shall not be 
     less than $10,000 ($5,000 in the case of a natural 
     person).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to penalties assessed after December 31, 2006.

     SEC. 2042. DEDUCTION FOR HEALTH INSURANCE COSTS IN COMPUTING 
                   SELF-EMPLOYMENT TAXES IN 2010.

       (a) In General.--Paragraph (4) of section 162(l) of the 
     Internal Revenue Code of 1986 is amended by inserting ``for 
     taxable years beginning before January 1, 2010, or after 
     December 31, 2010'' before the period.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                     Subtitle B--Revenue Provisions

                      PART I--REDUCING THE TAX GAP

     SEC. 2101. INFORMATION REPORTING FOR RENTAL PROPERTY EXPENSE 
                   PAYMENTS.

       (a) In General.--Section 6041 of the Internal Revenue Code 
     of 1986, as amended by section 9006 of the Patient Protection 
     and Affordable Care Act, is amended by redesignating 
     subsections (h) and (i) as subsections (i) and (j), 
     respectively, and by inserting after subsection (g) the 
     following new subsection:
       ``(h) Treatment of Rental Property Expense Payments.--
       ``(1) In general.--Solely for purposes of subsection (a) 
     and except as provided in paragraph (2), a person receiving 
     rental income from real estate shall be considered to be 
     engaged in a trade or business of renting property.
       ``(2) Exceptions.--Paragraph (1) shall not apply to--
       ``(A) any individual, including any individual who is an 
     active member of the uniformed services or an employee of the 
     intelligence community (as defined in section 
     121(d)(9)(C)(iv)), if substantially all rental income is 
     derived from renting the principal residence (within the 
     meaning of section 121) of such individual on a temporary 
     basis,
       ``(B) any individual who receives rental income of not more 
     than the minimal amount, as determined under regulations 
     prescribed by the Secretary, and
       ``(C) any other individual for whom the requirements of 
     this section would cause hardship, as determined under 
     regulations prescribed by the Secretary.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to payments made after December 31, 2010.

     SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.

       (a) Failure To File Correct Information Returns.--
       (1) In general.--Subsections (a)(1), (b)(1)(A), and 
     (b)(2)(A) of section 6721 of the Internal Revenue Code of 
     1986 are each amended by striking ``$50'' and inserting 
     ``$100''.
       (2) Aggregate annual limitation.--Subsections (a)(1), 
     (d)(1)(A), and (e)(3)(A) of section 6721 of such Code are 
     each amended by striking ``$250,000'' and inserting 
     ``$1,500,000''.
       (b) Reduction Where Correction Within 30 Days.--
       (1) In general.--Subparagraph (A) of section 6721(b)(1) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$15'' and inserting ``$30''.
       (2) Aggregate annual limitation.--Subsections (b)(1)(B) and 
     (d)(1)(B) of section 6721 of such Code are each amended by 
     striking ``$75,000'' and inserting ``$250,000''.
       (c) Reduction Where Correction on or Before August 1.--
       (1) In general.--Subparagraph (A) of section 6721(b)(2) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``$30'' and inserting ``$60''.
       (2) Aggregate annual limitation.--Subsections (b)(2)(B) and 
     (d)(1)(C) of section 6721 of such Code are each amended by 
     striking ``$150,000'' and inserting ``$500,000''.
       (d) Aggregate Annual Limitations for Persons With Gross 
     Receipts of Not More Than $5,000,000.--
       (1) In general.--Paragraph (1) of section 6721(d) of the 
     Internal Revenue Code of 1986 is amended--
       (A) by striking ``$100,000'' in subparagraph (A) and 
     inserting ``$500,000'',
       (B) by striking ``$25,000'' in subparagraph (B) and 
     inserting ``$75,000'', and
       (C) by striking ``$50,000'' in subparagraph (C) and 
     inserting ``$200,000''.
       (2) Technical amendment.--Paragraph (1) of section 6721(d) 
     of such Code is amended by striking ``such taxable year'' and 
     inserting ``such calendar year''.
       (e) Penalty in Case of Intentional Disregard.--Paragraph 
     (2) of section 6721(e) of the Internal Revenue Code of 1986 
     is amended by striking ``$100'' and inserting ``$250''.
       (f) Adjustment for Inflation.--Section 6721 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new subsection:
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d) (other than paragraph (2)(A) thereof), and (e) shall 
     be increased by such dollar amount multiplied by the cost-of-
     living adjustment determined under section 1(f)(3) determined 
     by substituting `calendar year 2011' for `calendar year 1992' 
     in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (g) Failure To Furnish Correct Payee Statements.--Section 
     6722 of the Internal Revenue Code of 1986 is amended to read 
     as follows:

     ``SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATEMENTS.

       ``(a) Imposition of Penalty.--
       ``(1) General rule.--In the case of each failure described 
     in paragraph (2) by any person with respect to a payee 
     statement, such person shall pay a penalty of $100 for each 
     statement with respect to which such a failure occurs, but 
     the total amount imposed on

[[Page S5610]]

     such person for all such failures during any calendar year 
     shall not exceed $1,500,000.
       ``(2) Failures subject to penalty.--For purposes of 
     paragraph (1), the failures described in this paragraph are--
       ``(A) any failure to furnish a payee statement on or before 
     the date prescribed therefor to the person to whom such 
     statement is required to be furnished, and
       ``(B) any failure to include all of the information 
     required to be shown on a payee statement or the inclusion of 
     incorrect information.
       ``(b) Reduction Where Correction in Specified Period.--
       ``(1) Correction within 30 days.--If any failure described 
     in subsection (a)(2) is corrected on or before the day 30 
     days after the required filing date--
       ``(A) the penalty imposed by subsection (a) shall be $30 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during any calendar year which are so corrected 
     shall not exceed $250,000.
       ``(2) Failures corrected on or before august 1.--If any 
     failure described in subsection (a)(2) is corrected after the 
     30th day referred to in paragraph (1) but on or before August 
     1 of the calendar year in which the required filing date 
     occurs--
       ``(A) the penalty imposed by subsection (a) shall be $60 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during the calendar year which are so corrected 
     shall not exceed $500,000.
       ``(c) Exception for De Minimis Failures.--
       ``(1) In general.--If--
       ``(A) a payee statement is furnished to the person to whom 
     such statement is required to be furnished,
       ``(B) there is a failure described in subsection (a)(2)(B) 
     (determined after the application of section 6724(a)) with 
     respect to such statement, and
       ``(C) such failure is corrected on or before August 1 of 
     the calendar year in which the required filing date occurs,

     for purposes of this section, such statement shall be treated 
     as having been furnished with all of the correct required 
     information.
       ``(2) Limitation.--The number of payee statements to which 
     paragraph (1) applies for any calendar year shall not exceed 
     the greater of--
       ``(A) 10, or
       ``(B) one-half of 1 percent of the total number of payee 
     statements required to be filed by the person during the 
     calendar year.
       ``(d) Lower Limitations for Persons With Gross Receipts of 
     Not More Than $5,000,000.--
       ``(1) In general.--If any person meets the gross receipts 
     test of paragraph (2) with respect to any calendar year, with 
     respect to failures during such calendar year--
       ``(A) subsection (a)(1) shall be applied by substituting 
     `$500,000' for `$1,500,000',
       ``(B) subsection (b)(1)(B) shall be applied by substituting 
     `$75,000' for `$250,000', and
       ``(C) subsection (b)(2)(B) shall be applied by substituting 
     `$200,000' for `$500,000'.
       ``(2) Gross receipts test.--A person meets the gross 
     receipts test of this paragraph if such person meets the 
     gross receipts test of section 6721(d)(2).
       ``(e) Penalty in Case of Intentional Disregard.--If 1 or 
     more failures to which subsection (a) applies are due to 
     intentional disregard of the requirement to furnish a payee 
     statement (or the correct information reporting requirement), 
     then, with respect to each such failure--
       ``(1) subsections (b), (c), and (d) shall not apply,
       ``(2) the penalty imposed under subsection (a)(1) shall be 
     $250, or, if greater--
       ``(A) in the case of a payee statement other than a 
     statement required under section 6045(b), 6041A(e) (in 
     respect of a return required under section 6041A(b)), 
     6050H(d), 6050J(e), 6050K(b), or 6050L(c), 10 percent of the 
     aggregate amount of the items required to be reported 
     correctly, or
       ``(B) in the case of a payee statement required under 
     section 6045(b), 6050K(b), or 6050L(c), 5 percent of the 
     aggregate amount of the items required to be reported 
     correctly, and
       ``(3) in the case of any penalty determined under paragraph 
     (2)--
       ``(A) the $1,500,000 limitation under subsection (a) shall 
     not apply, and
       ``(B) such penalty shall not be taken into account in 
     applying such limitation to penalties not determined under 
     paragraph (2).
       ``(f) Adjustment for Inflation.--
       ``(1) In general.--For each fifth calendar year beginning 
     after 2012, each of the dollar amounts under subsections (a), 
     (b), (d)(1), and (e) shall be increased by such dollar amount 
     multiplied by the cost-of-living adjustment determined under 
     section 1(f)(3) determined by substituting `calendar year 
     2011' for `calendar year 1992' in subparagraph (B) thereof.
       ``(2) Rounding.--If any amount adjusted under paragraph 
     (1)--
       ``(A) is not less than $75,000 and is not a multiple of 
     $500, such amount shall be rounded to the next lowest 
     multiple of $500, and
       ``(B) is not described in subparagraph (A) and is not a 
     multiple of $10, such amount shall be rounded to the next 
     lowest multiple of $10.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply with respect to information returns required to 
     be filed on or after January 1, 2011.

     SEC. 2103. REPORT ON TAX SHELTER PENALTIES AND CERTAIN OTHER 
                   ENFORCEMENT ACTIONS.

       (a) In General.--The Commissioner of Internal Revenue, in 
     consultation with the Secretary of the Treasury, shall submit 
     to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate an 
     annual report on the penalties assessed by the Internal 
     Revenue Service during the preceding year under each of the 
     following provisions of the Internal Revenue Code of 1986:
       (1) Section 6662A (relating to accuracy-related penalty on 
     understatements with respect to reportable transactions).
       (2) Section 6700(a) (relating to promoting abusive tax 
     shelters).
       (3) Section 6707 (relating to failure to furnish 
     information regarding reportable transactions).
       (4) Section 6707A (relating to failure to include 
     reportable transaction information with return).
       (5) Section 6708 (relating to failure to maintain lists of 
     advisees with respect to reportable transactions).
       (b) Additional Information.--The report required under 
     subsection (a) shall also include information on the 
     following with respect to each year:
       (1) Any action taken under section 330(b) of title 31, 
     United States Code, with respect to any reportable 
     transaction (as defined in section 6707A(c) of the Internal 
     Revenue Code of 1986).
       (2) Any extension of the time for assessment of tax 
     enforced, or assessment of any amount under such an 
     extension, under paragraph (10) of section 6501(c) of the 
     Internal Revenue Code of 1986.
       (c) Date of Report.--The first report required under 
     subsection (a) shall be submitted not later than December 31, 
     2010.

     SEC. 2104. APPLICATION OF LEVY TO PAYMENTS TO FEDERAL VENDORS 
                   RELATING TO PROPERTY.

       (a) In General.--Section 6331(h)(3) of the Internal Revenue 
     Code of 1986 is amended by striking ``goods or services'' and 
     inserting ``property, goods, or services''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to levies issued after the date of the enactment 
     of this Act.

     SEC. 2105. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES 
                   OF CERTAIN FEDERAL CONTRACTORS.

       (a) In General.--Subsection (f) of section 6330 of the 
     Internal Revenue Code of 1986 is amended by striking ``or'' 
     at the end of paragraph (2), by inserting ``or'' at the end 
     of paragraph (3), and by inserting after paragraph (3) the 
     following new paragraph:
       ``(4) the Secretary has served a Federal contractor 
     levy,''.
       (b) Federal Contractor Levy.--Subsection (h) of section 
     6330 of the Internal Revenue Code of 1986 is amended--
       (1) by striking all that precedes ``any levy in connection 
     with the collection'' and inserting the following:
       ``(h) Definitions Related to Exceptions.--For purposes of 
     subsection (f)--
       ``(1) Disqualified employment tax levy.--A disqualified 
     employment tax levy is''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Federal contractor levy.--A Federal contractor levy 
     is any levy if the person whose property is subject to the 
     levy (or any predecessor thereof) is a Federal contractor.''.
       (c) Conforming Amendment.--The heading of subsection (f) of 
     section 6330 of the Internal Revenue Code of 1986 is amended 
     by striking ``Jeopardy and State Refund Collection'' and 
     inserting ``Exceptions''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to levies issued after the date of the enactment 
     of this Act.

     SEC. 2106. APPLICATION OF BAD CHECKS PENALTY TO ELECTRONIC 
                   PAYMENTS.

       (a) In General.--Section 6657 of the Internal Revenue Code 
     of 1986 is amended--
       (1) by striking ``If any check or money order in payment of 
     any amount'' and inserting ``If any instrument in payment, by 
     any commercially acceptable means, of any amount'', and
       (2) by striking ``such check'' each place it appears and 
     inserting ``such instrument''.
       (b) Effective Dates.--The amendments made by this section 
     shall apply to instruments tendered after the date of the 
     enactment of this Act.

               PART II--PROMOTING RETIREMENT PREPARATION

     SEC. 2111. PARTICIPANTS IN GOVERNMENT SECTION 457 PLANS 
                   ALLOWED TO TREAT ELECTIVE DEFERRALS AS ROTH 
                   CONTRIBUTIONS.

       (a) In General.--Section 402A(e)(1) of the Internal Revenue 
     Code of 1986 is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by adding at 
     the end the following:
       ``(C) an eligible deferred compensation plan (as defined in 
     section 457(b)) of an eligible employer described in section 
     457(e)(1)(A).''.
       (b) Elective Deferrals.--Section 402A(e)(2) of the Internal 
     Revenue Code of 1986 is amended to read as follows:
       ``(2) Elective deferral.--The term `elective deferral' 
     means--
       ``(A) any elective deferral described in subparagraph (A) 
     or (C) of section 402(g)(3), and
       ``(B) any elective deferral of compensation by an 
     individual under an eligible deferred compensation plan (as 
     defined in section

[[Page S5611]]

     457(b)) of an eligible employer described in section 
     457(e)(1)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

     SEC. 2112. ROLLOVERS FROM ELECTIVE DEFERRAL PLANS TO 
                   DESIGNATED ROTH ACCOUNTS.

       (a) In General.--Section 402A(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(4) Taxable rollovers to designated roth accounts.--
       ``(A) In general.--Notwithstanding sections 402(c), 
     403(b)(8), and 457(e)(16), in the case of any distribution to 
     which this paragraph applies--
       ``(i) there shall be included in gross income any amount 
     which would be includible were it not part of a qualified 
     rollover contribution,
       ``(ii) section 72(t) shall not apply, and
       ``(iii) unless the taxpayer elects not to have this clause 
     apply, any amount required to be included in gross income for 
     any taxable year beginning in 2010 by reason of this 
     paragraph shall be so included ratably over the 2-taxable-
     year period beginning with the first taxable year beginning 
     in 2011.

     Any election under clause (iii) for any distributions during 
     a taxable year may not be changed after the due date for such 
     taxable year.
       ``(B) Distributions to which paragraph applies.--In the 
     case of an applicable retirement plan which includes a 
     qualified Roth contribution program, this paragraph shall 
     apply to a distribution from such plan other than from a 
     designated Roth account which is contributed in a qualified 
     rollover contribution (within the meaning of section 408A(e)) 
     to the designated Roth account maintained under such plan for 
     the benefit of the individual to whom the distribution is 
     made.
       ``(C) Coordination with limit.--Any distribution to which 
     this paragraph applies shall not be taken into account for 
     purposes of paragraph (1).
       ``(D) Other rules.--The rules of subparagraphs (D), (E), 
     and (F) of section 408A(d)(3) (as in effect for taxable years 
     beginning after 2009) shall apply for purposes of this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions after the date of the enactment 
     of this Act.

                 PART III--CLOSING UNINTENDED LOOPHOLES

     SEC. 2121. CRUDE TALL OIL INELIGIBLE FOR CELLULOSIC BIOFUEL 
                   PRODUCER CREDIT.

       (a) In General.--Clause (iii) of section 40(b)(6)(E) of the 
     Internal Revenue Code of 1986, as added by the Health Care 
     and Education Reconciliation Act of 2010, is amended--
       (1) by striking ``or'' at the end of subclause (I),
       (2) by striking the period at the end of subclause (II) and 
     inserting ``, or'',
       (3) by adding at the end the following new subclause:

       ``(III) such fuel has an acid number greater than 25.'', 
     and

       (4) by striking ``unprocessed'' in the heading and 
     inserting ``certain''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to fuels sold or used on or after January 1, 
     2010.

         PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

     SEC. 2131. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       The percentage under paragraph (2) of section 561 of the 
     Hiring Incentives to Restore Employment Act in effect on the 
     date of the enactment of this Act is increased by 36 
     percentage points.

                   TITLE III--SMALL BUSINESS LENDING

                Subtitle A--Small Business Lending Fund

     SEC. 3101. PURPOSE.

       The purpose of this subtitle is to address the ongoing 
     effects of the financial crisis on small businesses by 
     providing temporary authority to the Secretary of the 
     Treasury to make capital investments in eligible institutions 
     in order to increase the availability of credit for small 
     businesses.

     SEC. 3102. DEFINITIONS.

       For purposes of this subtitle:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the meaning given 
     such term under section 3(q) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(q)).
       (3) Bank holding company.--The term ``bank holding 
     company'' has the meaning given such term under section 
     2(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841(2)(a)(1)).
       (4) Call report.--The term ``call report'' means--
       (A) reports of Condition and Income submitted to the Office 
     of the Comptroller of the Currency, the Board of Governors of 
     the Federal Reserve System, and the Federal Deposit Insurance 
     Corporation;
       (B) the Office of Thrift Supervision Thrift Financial 
     Report;
       (C) any report that is designated by the Office of the 
     Comptroller of the Currency, the Board of Governors of the 
     Federal Reserve System, the Federal Deposit Insurance 
     Corporation, or the Office of Thrift Supervision, as 
     applicable, as a successor to any report referred to in 
     subparagraph (A) or (B);
       (D) reports of Condition and Income as designated through 
     guidance developed by the Secretary, in consultation with the 
     Director of the Community Development Financial Institutions 
     Fund; and
       (E) with respect to an eligible institution for which no 
     report exists that is described under subparagraph (A), (B), 
     (C), or (D), such other report or set of information as the 
     Secretary, in consultation with the Administrator of the 
     Small Business Administration, may prescribe.
       (5) CDCI.--The term ``CDCI'' means the Community 
     Development Capital Initiative created by the Secretary under 
     the Troubled Asset Relief Program established by the 
     Emergency Economic Stabilization Act of 2008.
       (6) CDCI investment.--The term ``CDCI investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CDCI that has not been repaid.
       (7) CDFI; community development financial institution.--The 
     terms ``CDFI'' and ``community development financial 
     institution'' have the meaning given the term ``community 
     development financial institution'' under the Riegle 
     Community Development and Regulatory Improvement Act of 1994.
       (8) CDLF; community development loan fund.--The terms 
     ``CDLF'' and ``community development loan fund'' mean any 
     entity that--
       (A) is certified by the Department of the Treasury as a 
     community development financial institution loan fund;
       (B) is exempt from taxation under the Internal Revenue Code 
     of 1986; and
       (C) had assets less than or equal to $10,000,000,000 as of 
     the end of the fourth quarter of calendar year 2009.
       (9) CPP.--The term ``CPP'' means the Capital Purchase 
     Program created by the Secretary under the Troubled Asset 
     Relief Program established by the Emergency Economic 
     Stabilization Act of 2008.
       (10) CPP investment.--The term ``CPP investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CPP that has not been repaid.
       (11) Eligible institution.--The term ``eligible 
     institution'' means--
       (A) any insured depository institution, which--
       (i) is not controlled by a bank holding company or savings 
     and loan holding company that is also an eligible 
     institution;
       (ii) has total assets of equal to or less than 
     $10,000,000,000, as reported in the call report of the 
     insured depository institution as of the end of the fourth 
     quarter of calendar year 2009; and
       (iii) is not directly or indirectly controlled by any 
     company or other entity that has total consolidated assets of 
     more than $10,000,000,000, as so reported;
       (B) any bank holding company which has total consolidated 
     assets of equal to or less than $10,000,000,000, as reported 
     in the call report of the bank holding company as of the end 
     of the fourth quarter of calendar year 2009;
       (C) any savings and loan holding company which has total 
     consolidated assets of equal to or less than $10,000,000,000, 
     as reported in the call report of the savings and loan 
     holding company as of the end of the fourth quarter of 
     calendar year 2009; and
       (D) any community development financial institution loan 
     fund which has total assets of equal to or less than 
     $10,000,000,000, as reported in audited financial statements 
     for the fiscal year of the community development financial 
     institution loan fund that ends in calendar year 2009.
       (12) Fund.--The term ``Fund'' means the Small Business 
     Lending Fund established under section 3103(a)(1).
       (13) Insured depository institution.--The term ``insured 
     depository institution'' has the meaning given such term 
     under section 3(c)(2) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1813(c)(2)).
       (14) Minority-owned and women-owned business.--The terms 
     ``minority-owned business'' and ``women-owned business'' 
     shall have the meaning given the terms ``minority-owned 
     business'' and ``women's business'', respectively, under 
     section 21A(r)(4) of the Federal Home Loan Bank Act (12 
     U.S.C. 1441A(r)(4)).
       (15) Program.--The term ``Program'' means the Small 
     Business Lending Fund Program authorized under section 
     3103(a)(2).
       (16) Savings and loan holding company.--The term ``savings 
     and loan holding company'' has the meaning given such term 
     under section 10(a)(1)(D) of the Home Owners' Loan Act (12 
     U.S.C. 1467a(a)(1)(D)).
       (17) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (18) Small business lending.--

[[Page S5612]]

       (A) In general.--The term ``small business lending'' means 
     lending, as defined by and reported in an eligible 
     institutions' quarterly call report, where each loan 
     comprising such lending is one of the following types:
       (i) Commercial and industrial loans.
       (ii) Owner-occupied nonfarm, nonresidential real estate 
     loans.
       (iii) Loans to finance agricultural production and other 
     loans to farmers.
       (iv) Loans secured by farmland.
       (B) Exclusion.--No loan that has an original amount greater 
     than $10,000,000 or that goes to a business with more than 
     $50,000,000 in revenues shall be included in the measure.
       (C) Treatment of holding companies.--In the case of 
     eligible institutions that are bank holding companies or 
     savings and loan holding companies having one or more insured 
     depository institution subsidiaries, small business lending 
     shall be measured based on the combined small business 
     lending reported in the call report of the insured depository 
     institution subsidiaries.
       (19) Veteran-owned business.--
       (A) The term ``veteran-owned business'' means a business--
       (i) more than 50 percent of the ownership or control of 
     which is held by 1 or more veterans;
       (ii) more than 50 percent of the net profit or loss of 
     which accrues to 1 or more veterans; and
       (iii) a significant percentage of senior management 
     positions of which are held by veterans.
       (B) For purposes of this paragraph, the term ``veteran'' 
     has the meaning given such term in section 101(2) of title 
     38, United States Code.

     SEC. 3103. SMALL BUSINESS LENDING FUND.

       (a) Fund and Program.--
       (1) Fund established.--There is established in the Treasury 
     of the United States a fund to be known as the ``Small 
     Business Lending Fund'', which shall be administered by the 
     Secretary.
       (2) Programs authorized.--The Secretary is authorized to 
     establish the Small Business Lending Fund Program for using 
     the Fund consistent with this subtitle.
       (b) Use of Fund.--
       (1) In general.--Subject to paragraph (2), the Fund shall 
     be available to the Secretary, without further appropriation 
     or fiscal year limitation, for the costs of purchases 
     (including commitments to purchase), and modifications of 
     such purchases, of preferred stock and other financial 
     instruments from eligible institutions on such terms and 
     conditions as are determined by the Secretary in accordance 
     with this subtitle. For purposes of this paragraph and with 
     respect to an eligible institution, the term ``other 
     financial instruments'' shall include only debt instruments 
     for which such eligible institution is fully liable or equity 
     equivalent capital of the eligible institution. Such debt 
     instruments may be subordinated to the claims of other 
     creditors of the eligible institution.
       (2) Maximum purchase limit.--The aggregate amount of 
     purchases (and commitments to purchase) made pursuant to 
     paragraph (1) may not exceed $30,000,000,000.
       (3) Proceeds used to pay down public debt.--All funds 
     received by the Secretary in connection with purchases made 
     pursuant to paragraph (1), including interest payments, 
     dividend payments, and proceeds from the sale of any 
     financial instrument, shall be paid into the general fund of 
     the Treasury for reduction of the public debt.
       (4) Limitation on purchases from cdlfs.--
       (A) In general.--Not more than 1 percent of the maximum 
     purchase limit of the Program, pursuant to paragraph (2), may 
     be used to make purchases from community development loan 
     funds.
       (B) Eligibility standards.--The Secretary, in consultation 
     with the Community Development Financial Institutions Fund, 
     shall develop eligibility criteria to determine the financial 
     ability of a CDLF to participate in the Program and repay the 
     investment. Such criteria shall include the following:
       (i) Ratio of net assets to total assets is at least 20 
     percent.
       (ii) Ratio of loan loss reserves to loans and leases 90 
     days or more delinquent (including loans sold with full 
     recourse) is at least 30 percent.
       (iii) Positive net income measured on a 3-year rolling 
     average.
       (iv) Operating liquidity ratio of at least 1.0 for the 4 
     most recent quarters and for one or both of the two preceding 
     years.
       (v) Ratio of loans and leases 90 days or more delinquent 
     (including loans sold with full recourse) to total equity 
     plus loan loss reserves is less than 40 percent.
       (C) Requirement to submit audited financial statements.--
     CDLFs participating in the Program shall submit audited 
     financial statements to the Secretary, have a clean audit 
     opinion, and have at least 3 years of operating experience.
       (c) Credits to the Fund.--There shall be credited to the 
     Fund amounts made available pursuant to section 3108, to the 
     extent provided by appropriations Acts.
       (d) Terms.--
       (1) Application.--
       (A) Institutions with assets of $1,000,000,000 or less.--
     Eligible institutions having total assets equal to or less 
     than $1,000,000,000, as reported in a call report as of the 
     end of the fourth quarter of calendar year 2009, may apply to 
     receive a capital investment from the Fund in an amount not 
     exceeding 5 percent of risk-weighted assets, as reported in 
     the call report immediately preceding the date of 
     application, less the amount of any CDCI investment and any 
     CPP investment.
       (B) Institutions with assets of more than $1,000,000,000 
     and less than or equal to $10,000,000,000.--Eligible 
     institutions having total assets of more than $1,000,000,000 
     but less than $10,000,000,000, as of the end of the fourth 
     quarter of calendar year 2009, may apply to receive a capital 
     investment from the Fund in an amount not exceeding 3 percent 
     of risk-weighted assets, as reported in the call report 
     immediately preceding the date of application, less the 
     amount of any CDCI investment and any CPP investment.
       (C) Treatment of holding companies.--In the case of an 
     eligible institution that is a bank holding company or a 
     savings and loan holding company having one or more insured 
     depository institution subsidiaries, total assets shall be 
     measured based on the combined total assets reported in the 
     call report of the insured depository institution 
     subsidiaries as of the end of the fourth quarter of calendar 
     year 2009 and risk-weighted assets shall be measured based on 
     the combined risk-weighted assets of the insured depository 
     institution subsidiaries as reported in the call report 
     immediately preceding the date of application.
       (D) Treatment of applicants that are institutions 
     controlled by holding companies.--If an eligible institution 
     that applies to receive a capital investment under the 
     Program is under the control of a bank holding company or a 
     savings and loan holding company, then the Secretary may use 
     the Fund to purchase preferred stock or other financial 
     instruments from the top-tier bank holding company or savings 
     and loan holding company of such eligible institution, as 
     applicable. For purposes of this subparagraph, the term 
     ``control'' with respect to a bank holding company shall have 
     the same meaning as in section 2(a)(2) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841(2)(a)(2)). For purposes 
     of this subparagraph, the term ``control'' with respect to a 
     savings and loan holding company shall have the same meaning 
     as in 10(a)(2) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(a)(2)).
       (E) Requirement to provide a small business lending plan.--
     At the time that an applicant submits an application to the 
     Secretary for a capital investment under the Program, the 
     applicant shall deliver to the appropriate Federal banking 
     agency, and, for applicants that are State-chartered banks, 
     to the appropriate State banking regulator, a small business 
     lending plan describing how the applicant's business strategy 
     and operating goals will allow it to address the needs of 
     small businesses in the areas it serves, as well as a plan to 
     provide linguistically and culturally appropriate outreach, 
     where appropriate. In the case of eligible institutions that 
     are community development loan funds, this plan shall be 
     submitted to the Secretary. This plan shall be confidential 
     supervisory information.
       (F) Treatment of applicants that are community development 
     loan funds.--Eligible institutions that are community 
     development loan funds may apply to receive a capital 
     investment from the Fund in an amount not exceeding 5 percent 
     of total assets, as reported in the audited financial 
     statements for the fiscal year of the eligible institution 
     that ends in calendar year 2009.
       (2) Consultation with regulators.--For each eligible 
     institution that applies to receive a capital investment 
     under the Program, the Secretary shall--
       (A) consult with the appropriate Federal banking agency or, 
     in the case of an eligible institution that is a non-
     depository community development financial institution, the 
     Community Development Financial Institution Fund, for the 
     eligible institution to determine whether the eligible 
     institution may receive such capital investment;
       (B) in the case of an eligible institution that is a State-
     chartered bank, consider any views received from the State 
     banking regulator of the State of the eligible institution 
     regarding the financial condition of the eligible 
     institution; and
       (C) in the case of a community development financial 
     institution loan fund, consult with the Community Development 
     Financial Institution Fund.
       (3) Ineligibility of institutions on fdic problem bank 
     list.--
       (A) In general.--An eligible institution may not receive 
     any capital investment under the Program if--
       (i) such institution is on the FDIC problem bank list; or
       (ii) such institution has been removed from the FDIC 
     problem bank list for less than 90 days.
       (B) Construction.--Nothing in subparagraph (A) shall be 
     construed as limiting the discretion of the Secretary to deny 
     the application of an eligible institution that is not on the 
     FDIC problem bank list.
       (C) Fdic problem bank list defined.--For purposes of this 
     subparagraph, the term ``FDIC problem bank list'' means the 
     list of institutions with a current rating of 4 or 5 under 
     the Uniform Financial Institutions Rating System, or such 
     other list designated by the Federal Deposit Insurance 
     Corporation.
       (4) Incentives to lend.--
       (A) Requirements on preferred stock and other financial 
     instruments.--Any preferred stock or other financial 
     instrument issued to Treasury by an eligible institution 
     receiving a capital investment under the Program shall 
     provide that--

[[Page S5613]]

       (i) the rate at which dividends or interest are payable 
     shall be 5 percent per annum initially;
       (ii) within the first 2 years after the date of the capital 
     investment under the Program, the rate may be adjusted based 
     on the amount of an eligible institution's small business 
     lending. Changes in the amount of small business lending 
     shall be measured against the average amount of small 
     business lending reported by the eligible institution in its 
     call reports for the 4 full quarters immediately preceding 
     the date of enactment of this Act, minus adjustments from 
     each quarterly balance in respect of--

       (I) net loan charge offs with respect to small business 
     lending; and
       (II) gains realized by the eligible institution resulting 
     from mergers, acquisitions or purchases of loans after 
     origination and syndication; which adjustments shall be 
     determined in accordance with guidance promulgated by the 
     Secretary; and

       (iii) during any calendar quarter during the initial 2-year 
     period referred to in clause (ii), an institution's rate 
     shall be adjusted to reflect the following schedule, based on 
     that institution's change in the amount of small business 
     lending relative to the baseline--

       (I) if the amount of small business lending has increased 
     by less than 2.5 percent, the dividend or interest rate shall 
     be 5 percent;
       (II) if the amount of small business lending has increased 
     by 2.5 percent or greater, but by less than 5.0 percent, the 
     dividend or interest rate shall be 4 percent;
       (III) if the amount of small business lending has increased 
     by 5.0 percent or greater, but by less than 7.5 percent, the 
     dividend or interest rate shall be 3 percent;
       (IV) if the amount of small business lending has increased 
     by 7.5 percent or greater, and but by less than 10.0 percent, 
     the dividend or interest rate shall be 2 percent; or
       (V) if the amount of small business lending has increased 
     by 10 percent or greater, the dividend or interest rate shall 
     be 1 percent.

       (B) Basis of initial rate.--The initial dividend or 
     interest rate shall be based on call report data published in 
     the quarter immediately preceding the date of the capital 
     investment under the Program.
       (C) Timing of rate adjustments.--Any rate adjustment shall 
     occur in the calendar quarter following the publication of 
     call report data, such that the rate based on call report 
     data from any one calendar quarter, which is published in the 
     first following calendar quarter, shall be adjusted in that 
     first following calendar quarter and payable in the second 
     following quarter.
       (D) Rate following initial 2-year period.--Generally, the 
     rate based on call report data from the eighth calendar 
     quarter after the date of the capital investment under the 
     Program shall be payable until the expiration of the 4\1/2\-
     year period that begins on the date of the investment. In the 
     case where the amount of small business lending has remained 
     the same or decreased relative to the institution's baseline 
     in the eighth quarter after the date of the capital 
     investment under the Program, the rate shall be 7 percent 
     until the expiration of the 4\1/2\-year period that begins on 
     the date of the investment.
       (E) Rate following initial 4\1/2\ -year period.--The 
     dividend or interest rate paid on any preferred stock or 
     other financial instrument issued by an eligible institution 
     that receives a capital investment under the Program shall 
     increase to 9 percent at the end of the 4\1/2\-year period 
     that begins on the date of the capital investment under the 
     Program.
       (F) Limitation on rate reductions with respect to certain 
     amount.--The reduction in the dividend or interest rate 
     payable to Treasury by any eligible institution shall be 
     limited such that the rate reduction shall not apply to a 
     dollar amount of the investment made by Treasury that is 
     greater than the dollar amount increase in the amount of 
     small business lending realized under this program. The 
     Secretary may issue guidelines that will apply to new capital 
     investments limiting the amount of capital available to 
     eligible institutions consistent with this limitation.
       (G) Rate adjustments for s corporation.--Before making a 
     capital investment in an eligible institution that is an S 
     corporation or a corporation organized on a mutual basis, the 
     Secretary may adjust the dividend or interest rate on the 
     financial instrument to be issued to the Secretary, from the 
     dividend or interest rate that would apply under 
     subparagraphs (A) through (F), to take into account any 
     differential tax treatment of securities issued by such 
     eligible institution. For purpose of this subparagraph, the 
     term ``S corporation'' has the same meaning as in section 
     1361(a) of the Internal Revenue Code of 1986.
       (H) Repayment deadline.--The capital investment received by 
     an eligible institution under the Program shall be evidenced 
     by preferred stock or other financial instrument that--
       (i) includes, as a term and condition, that the capital 
     investment will--

       (I) be repaid not later than the end of the 10-year period 
     beginning on the date of the capital investment under the 
     Program; or
       (II) at the end of such 10-year period, be subject to such 
     additional terms as the Secretary shall prescribe, which 
     shall include a requirement that the stock or instrument 
     shall carry the highest dividend or interest rate payable; 
     and

       (ii) provides that the term and condition described under 
     clause (i) shall not apply if the application of that term 
     and condition would adversely affect the capital treatment of 
     the stock or financial instrument under current or successor 
     applicable capital provisions compared to a capital 
     instrument with identical terms other than the term and 
     condition described under clause (i).
       (I) Requirements on financial instruments issued by a 
     community development financial institution loan fund.--Any 
     equity equivalent capital issued to the Treasury by a 
     community development loan fund receiving a capital 
     investment under the Program shall provide that the rate at 
     which interest is payable shall be 2 percent per annum for 8 
     years. After 8 years, the rate at which interest is payable 
     shall be 9 percent.
       (5) Additional incentives to repay.--The Secretary may, by 
     regulation or guidance issued under section 3104(9), 
     establish repayment incentives in addition to the incentive 
     in paragraph (4)(E) that will apply to new capital 
     investments in a manner that the Secretary determines to be 
     consistent with the purposes of this subtitle.
       (6) Capital purchase program refinance.--
       (A) In general.--The Secretary shall, in a manner that the 
     Secretary determines to be consistent with the purposes of 
     this subtitle, issue regulations and other guidance to permit 
     eligible institutions to refinance securities issued to 
     Treasury under the CDCI and the CPP for securities to be 
     issued under the Program.
       (B) Prohibition on participation by non-paying cpp 
     participants.--Subparagraph (A) shall not apply to any 
     eligible institution that has missed more than one dividend 
     payment due under the CPP. For purposes of this subparagraph, 
     a CPP dividend payment that is submitted within 60 days of 
     the due date of such payment shall not be considered a missed 
     dividend payment.
       (7) Outreach to minorities, women, and veterans.--The 
     Secretary shall require eligible institutions receiving 
     capital investments under the Program to provide 
     linguistically and culturally appropriate outreach and 
     advertising in the applicant pool describing the availability 
     and application process of receiving loans from the eligible 
     institution that are made possible by the Program through the 
     use of print, radio, television or electronic media outlets 
     which target organizations, trade associations, and 
     individuals that--
       (A) represent or work within or are members of minority 
     communities;
       (B) represent or work with or are women; and
       (C) represent or work with or are veterans.
       (8) Additional terms.--The Secretary may, by regulation or 
     guidance issued under section 3104(9), make modifications 
     that will apply to new capital investments in order to manage 
     risks associated with the administration of the Fund in a 
     manner consistent with the purposes of this subtitle.
       (9) Minimum underwriting standards.--The appropriate 
     Federal banking agency for an eligible institution that 
     receives funds under the Program shall within 60 days issue 
     guidance regarding prudent underwriting standards that must 
     be used for loans made by the eligible institution using such 
     funds..

     SEC. 3104. ADDITIONAL AUTHORITIES OF THE SECRETARY.

       The Secretary may take such actions as the Secretary deems 
     necessary to carry out the authorities in this subtitle, 
     including, without limitation, the following:
       (1) The Secretary may use the services of any agency or 
     instrumentality of the United States or component thereof on 
     a reimbursable basis, and any such agency or instrumentality 
     or component thereof is authorized to provide services as 
     requested by the Secretary using all authorities vested in or 
     delegated to that agency, instrumentality, or component.
       (2) The Secretary may enter into contracts, including 
     contracts for services authorized by section 3109 of title 5, 
     United States Code.
       (3) The Secretary may designate any bank, savings 
     association, trust company, security broker or dealer, asset 
     manager, or investment adviser as a financial agent of the 
     Federal Government and such institution shall perform all 
     such reasonable duties related to this subtitle as financial 
     agent of the Federal Government as may be required. The 
     Secretary shall have authority to amend existing agreements 
     with financial agents, entered into during the 2-year period 
     before the date of enactment of this Act, to perform 
     reasonable duties related to this subtitle.
       (4) The Secretary may exercise any rights received in 
     connection with any preferred stock or other financial 
     instruments or assets purchased or acquired pursuant to the 
     authorities granted under this subtitle.
       (5) Subject to section 3103(b)(3), the Secretary may manage 
     any assets purchased under this subtitle, including revenues 
     and portfolio risks therefrom.
       (6) The Secretary may sell, dispose of, transfer, exchange 
     or enter into securities loans, repurchase transactions, or 
     other financial transactions in regard to, any preferred 
     stock or other financial instrument or asset purchased or 
     acquired under this subtitle, upon terms and conditions and 
     at a price determined by the Secretary.
       (7) The Secretary may manage or prohibit conflicts of 
     interest that may arise in connection with the administration 
     and execution of the authorities provided under this 
     subtitle.

[[Page S5614]]

       (8) The Secretary may establish and use vehicles, subject 
     to supervision by the Secretary, to purchase, hold, and sell 
     preferred stock or other financial instruments and issue 
     obligations.
       (9) The Secretary may, in consultation with the 
     Administrator of the Small Business Administration, issue 
     such regulations and other guidance as may be necessary or 
     appropriate to define terms or carry out the authorities or 
     purposes of this subtitle.

     SEC. 3105. CONSIDERATIONS.

       In exercising the authorities granted in this subtitle, the 
     Secretary shall take into consideration--
       (1) increasing the availability of credit for small 
     businesses;
       (2) providing funding to minority-owned eligible 
     institutions and other eligible institutions that serve small 
     businesses that are minority-, veteran-, and women-owned and 
     that also serve low- and moderate-income, minority, and other 
     underserved or rural communities;
       (3) protecting and increasing American jobs;
       (4) increasing the opportunity for small business 
     development in areas with high unemployment rates that exceed 
     the national average;
       (5) ensuring that all eligible institutions may apply to 
     participate in the program established under this subtitle, 
     without discrimination based on geography;
       (6) providing transparency with respect to use of funds 
     provided under this subtitle;
       (7) minimizing the cost to taxpayers of exercising the 
     authorities;
       (8) promoting and engaging in financial education to would-
     be borrowers; and
       (9) providing funding to eligible institutions that serve 
     small businesses directly affected by the discharge of oil 
     arising from the explosion on and sinking of the mobile 
     offshore drilling unit Deepwater Horizon and small businesses 
     in communities that have suffered negative economic effects 
     as a result of that discharge with particular consideration 
     to States along the coast of the Gulf of Mexico.

     SEC. 3106. REPORTS.

       The Secretary shall provide to the appropriate committees 
     of Congress--
       (1) within 7 days of the end of each month commencing with 
     the first month in which transactions are made under the 
     Program, a written report describing all of the transactions 
     made during the reporting period pursuant to the authorities 
     granted under this subtitle;
       (2) after the end of March and the end of September, 
     commencing September 30, 2010, a written report on all 
     projected costs and liabilities, all operating expenses, 
     including compensation for financial agents, and all 
     transactions made by the Fund, which shall include 
     participating institutions and amounts each institution has 
     received under the Program; and
       (3) within 7 days of the end of each calendar quarter 
     commencing with the first calendar quarter in which 
     transactions are made under the Program, a written report 
     detailing how eligible institutions participating in the 
     Program have used the funds such institutions received under 
     the Program.

     SEC. 3107. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the Program through 
     the Office of Small Business Lending Fund Program Oversight 
     established under subsection (b).
       (b) Office of Small Business Lending Fund Program 
     Oversight.--
       (1) Establishment.--There is hereby established within the 
     Office of the Inspector General of the Department of the 
     Treasury a new office to be named the ``Office of Small 
     Business Lending Fund Program Oversight'' to provide 
     oversight of the Program.
       (2) Leadership.--The Inspector General shall appoint a 
     Special Deputy Inspector General for SBLF Program Oversight 
     to lead the Office, with commensurate staff, who shall report 
     directly to the Inspector General and who shall be 
     responsible for the performance of all auditing and 
     investigative activities relating to the Program.
       (3) Reporting.--
       (A) In general.--The Inspector General shall issue a report 
     no less than two times a year to the Congress and the 
     Secretary devoted to the oversight provided by the Office, 
     including any recommendations for improvements to the 
     Program.
       (B) Recommendations.--With respect to any deficiencies 
     identified in a report under subparagraph (A), the Secretary 
     shall either--
       (i) take actions to address such deficiencies; or
       (ii) certify to the appropriate committees of Congress that 
     no action is necessary or appropriate.
       (4) Coordination.--The Inspector General, in maximizing the 
     effectiveness of the Office, shall work with other Offices of 
     Inspector General, as appropriate, to minimize duplication of 
     effort and ensure comprehensive oversight of the Program.
       (5) Termination.--The Office shall terminate at the end of 
     the 6-month period beginning on the date on which all capital 
     investments are repaid under the Program or the date on which 
     the Secretary determines that any remaining capital 
     investments will not be repaid.
       (6) Definitions.--For purposes of this subsection:
       (A) Office.--The term ``Office'' means the Office of Small 
     Business Lending Fund Program Oversight established under 
     paragraph (1).
       (B) Inspector general.--The term ``Inspector General'' 
     means the Inspector General of the Department of the 
     Treasury.
       (c) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (d) Required Certifications.--
       (1) Eligible institution certification.--Each eligible 
     institution that participates in the Program must certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in 31 U.S.C. 5312(a)(2) 
     and (c)(1)(A), to implement reasonable procedures to verify 
     the identity of any person seeking to open an account, to the 
     extent reasonable and practicable, maintain records of the 
     information used to verify the person's identity, and 
     determine whether the person appears on any lists of known or 
     suspected terrorists or terrorist organizations provided to 
     the financial institution by any government agency.
       (2) Loan recipients.--With respect to funds received by an 
     eligible institution under the Program, any business 
     receiving a loan from the eligible institution using such 
     funds after the date of the enactment of this Act shall 
     certify to such eligible institution that the principals of 
     such business have not been convicted of a sex offense 
     against a minor (as such terms are defined in section 111 of 
     the Sex Offender Registration and Notification Act (42 U.S.C. 
     16911)).
       (e) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

     SEC. 3108. CREDIT REFORM; FUNDING.

       (a) Credit Reform.--The cost of purchases of preferred 
     stock and other financial instruments made as capital 
     investments under this subtitle shall be determined as 
     provided under the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661 et seq.).
       (b) Funds Made Available.--There are hereby appropriated, 
     out of funds in the Treasury not otherwise appropriated, such 
     sums as may be necessary to pay the costs of $30,000,000,000 
     of capital investments in eligible institutions, including 
     the costs of modifying such investments, and reasonable costs 
     of administering the program of making, holding, managing, 
     and selling the capital investments.

     SEC. 3109. TERMINATION AND CONTINUATION OF AUTHORITIES.

       (a) Termination of Investment Authority.--The authority to 
     make capital investments in eligible institutions, including 
     commitments to purchase preferred stock or other instruments, 
     provided under this subtitle shall terminate 1 year after the 
     date of enactment of this Act.
       (b) Continuation of Other Authorities.--The authorities of 
     the Secretary under section 3104 shall not be limited by the 
     termination date in subsection (a).

     SEC. 3110. PRESERVATION OF AUTHORITY.

       Nothing in this subtitle may be construed to limit the 
     authority of the Secretary under any other provision of law.

     SEC. 3111. ASSURANCES.

       (a) Small Business Lending Fund Separate From TARP.--The 
     Small Business Lending Fund Program is established as 
     separate and distinct from the Troubled Asset Relief Program 
     established by the Emergency Economic Stabilization Act of 
     2008. An institution shall not, by virtue of a capital 
     investment under the Small Business Lending Fund Program, be 
     considered a recipient of the Troubled Asset Relief Program.
       (b) Change in Law.--If, after a capital investment has been 
     made in an eligible institution under the Program, there is a 
     change in law that modifies the terms of the investment or 
     program in a materially adverse respect for the eligible 
     institution, the eligible institution may, after consultation 
     with the appropriate Federal banking agency for the eligible 
     institution, repay the investment without impediment.

     SEC. 3112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, 
                   VETERAN-OWNED, AND MINORITY-OWNED BUSINESSES.

       (a) Study.--The Secretary shall conduct a study of the 
     impact of the Program on women-owned businesses, veteran-
     owned businesses, and minority-owned businesses.
       (b) Report.--Not later than one year after the date of 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study conducted pursuant to 
     subsection (a). To the extent possible, the Secretary shall 
     disaggregate the results of such study by ethnic group and 
     gender.
       (c) Information Provided to the Secretary.--Eligible 
     institutions that participate in the Program shall provide 
     the Secretary with such information as the Secretary may 
     require to carry out the study required by this section.

[[Page S5615]]

     SEC. 3113. SENSE OF CONGRESS.

       It is the sense of Congress that the Federal Deposit 
     Insurance Corporation and other bank regulators are sending 
     mixed messages to banks regarding regulatory capital 
     requirements and lending standards, which is a contributing 
     cause of decreased small business lending and increased 
     regulatory uncertainty at community banks.

           Subtitle B--State Small Business Credit Initiative

     SEC. 3201. SHORT TITLE.

       This subtitle may be cited as the ``State Small Business 
     Credit Initiative Act of 2010''.

     SEC. 3202. DEFINITIONS.

       In this subtitle, the following definitions shall apply:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency''--
       (A) has the same meaning as in section 3(q) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(q)); and
       (B) includes the National Credit Union Administration Board 
     in the case of any credit union the deposits of which are 
     insured in accordance with the Federal Credit Union Act.
       (3) Enrolled loan.--The term ``enrolled loan'' means a loan 
     made by a financial institution lender that is enrolled by a 
     participating State in an approved State capital access 
     program in accordance with this subtitle.
       (4) Federal contribution.--The term ``Federal 
     contribution'' means the portion of the contribution made by 
     a participating State to, or for the account of, an approved 
     State program that is made with Federal funds allocated to 
     the State by the Secretary under section 3203.
       (5) Financial institution.--The term ``financial 
     institution'' means any insured depository institution, 
     insured credit union, or community development financial 
     institution, as those terms are each defined in section 103 
     of the Riegle Community Development and Regulatory 
     Improvement Act of 1994 (12 U.S.C. 4702).
       (6) Participating state.--The term ``participating State'' 
     means any State that has been approved for participation in 
     the Program under section 3204.
       (7) Program.--The term ``Program'' means the State Small 
     Business Credit Initiative established under this subtitle.
       (8) Qualifying loan or swap funding facility.--The term 
     ``qualifying loan or swap funding facility'' means a 
     contractual arrangement between a participating State and a 
     private financial entity under which--
       (A) the participating State delivers funds to the entity as 
     collateral;
       (B) the entity provides funding from the arrangement back 
     to the participating State; and
       (C) the full amount of resulting funding from the 
     arrangement, less any fees and other costs of the 
     arrangement, is contributed to, or for the account of, an 
     approved State program.
       (9) Reserve fund.--The term ``reserve fund'' means a fund, 
     established by a participating State, dedicated to a 
     particular financial institution lender, for the purposes 
     of--
       (A) depositing all required premium charges paid by the 
     financial institution lender and by each borrower receiving a 
     loan under an approved State program from that financial 
     institution lender;
       (B) depositing contributions made by the participating 
     State, including State contributions made with Federal 
     contributions; and
       (C) covering losses on enrolled loans by disbursing 
     accumulated funds.
       (10) State.--The term ``State'' means--
       (A) a State of the United States;
       (B) the District of Columbia, the Commonwealth of Puerto 
     Rico, the Commonwealth of Northern Mariana Islands, Guam, 
     American Samoa, and the United States Virgin Islands;
       (C) when designated by a State of the United States, a 
     political subdivision of that State that the Secretary 
     determines has the capacity to participate in the Program; 
     and
       (D) under the circumstances described in section 3204(d), a 
     municipality of a State of the United States to which the 
     Secretary has given a special permission under section 
     3204(d).
       (11) State capital access program.--The term ``State 
     capital access program'' means a program of a State that--
       (A) uses public resources to promote private access to 
     credit; and
       (B) meets the eligibility criteria in section 3205(c).
       (12) State other credit support program.--The term ``State 
     other credit support program''--
       (A) means a program of a State that--
       (i) uses public resources to promote private access to 
     credit;
       (ii) is not a State capital access program; and
       (iii) meets the eligibility criteria in section 3206(c); 
     and
       (B) includes, collateral support programs, loan 
     participation programs, State-run venture capital fund 
     programs, and credit guarantee programs.
       (13) State program.--The term ``State program'' means a 
     State capital access program or a State other credit support 
     program.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.

     SEC. 3203. FEDERAL FUNDS ALLOCATED TO STATES.

       (a) Program Established; Purpose.--There is established the 
     State Small Business Credit Initiative, to be administered by 
     the Secretary. Under the Program, the Secretary shall 
     allocate Federal funds to participating States and make the 
     allocated funds available to the participating States as 
     provided in this section for the uses described in this 
     section.
       (b) Allocation Formula.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall allocate Federal 
     funds to participating States so that each State is eligible 
     to receive an amount equal to the average of the respective 
     amounts that the State--
       (A) would receive under the 2009 allocation, as determined 
     under paragraph (2); and
       (B) would receive under the 2010 allocation, as determined 
     under paragraph (3).
       (2) 2009 allocation formula.--
       (A) In general.--The Secretary shall determine the 2009 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2008 State employment 
     decline bears to the aggregate of the 2008 State employment 
     declines for all States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2008 state employment decline defined.--In this 
     paragraph and with respect to a State, the term ``2008 State 
     employment decline'' means the excess (if any) of--
       (i) the number of individuals employed in such State 
     determined for December 2007; over
       (ii) the number of individuals employed in such State 
     determined for December 2008.
       (3) 2010 allocation formula.--
       (A) In general.--The Secretary shall determine the 2010 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2009 unemployment 
     number bears to the aggregate of the 2009 unemployment 
     numbers for all of the States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2009 unemployment number defined.--In this paragraph 
     and with respect to a State, the term ``2009 unemployment 
     number'' means the number of individuals within such State 
     who were determined to be unemployed by the Bureau of Labor 
     Statistics for December 2009.
       (c) Availability of Allocated Amount.--The amount allocated 
     by the Secretary to each participating State under subsection 
     (b) shall be made available to the State as follows:
       (1) Allocated amount generally to be available to state in 
     one-thirds.--
       (A) In general.--The Secretary shall--
       (i) apportion the participating State's allocated amount 
     into thirds;
       (ii) transfer to the participating State the first \1/3\ 
     when the Secretary approves the State for participation under 
     section 3204; and
       (iii) transfer to the participating State each successive 
     \1/3\ when the State has certified to the Secretary that it 
     has expended, transferred, or obligated 80 percent of the 
     last transferred \1/3\ for Federal contributions to, or for 
     the account of, State programs.
       (B) Authority to withhold pending audit.--The Secretary may 
     withhold the transfer of any successive \1/3\ pending results 
     of a financial audit.
       (C) Inspector general audits.--
       (i) In general.--The Inspector General of the Department of 
     the Treasury shall carry out an audit of the participating 
     State's use of allocated Federal funds transferred to the 
     State.
       (ii) Recoupment of misused transferred funds required.--The 
     allocation agreement between the Secretary and the 
     participating State shall provide that the Secretary shall 
     recoup any allocated Federal funds transferred to the 
     participating State if the results of the an audit include a 
     finding that there was an intentional or reckless misuse of 
     transferred funds by the State.
       (iii) Penalty for misstatement.--Any participating State 
     that is found to have intentionally misstated any report 
     issued to the Secretary under the Program shall be ineligible 
     to receive any additional funds under the Program. Funds that 
     had been allocated or that would otherwise have been 
     allocated to such participating State shall be paid into the 
     general fund of the Treasury for reduction of the public 
     debt.
       (iv) Municipalities.--In this subparagraph, the term 
     ``participating State'' shall include a municipality given 
     special permission to participate in the Program, under 
     section 3204(d).

[[Page S5616]]

       (D) Exception.--The Secretary may, in the Secretary's 
     discretion, transfer the full amount of the participating 
     State's allocated amount to the State in a single transfer if 
     the participating State applies to the Secretary for approval 
     to use the full amount of the allocation as collateral for a 
     qualifying loan or swap funding facility.
       (2) Transferred amounts.--Each amount transferred to a 
     participating State under this section shall remain available 
     to the State until used by the State as permitted under 
     paragraph (3).
       (3) Use of transferred funds.--Each participating State may 
     use funds transferred to it under this section only--
       (A) for making Federal contributions to, or for the account 
     of, an approved State program;
       (B) as collateral for a qualifying loan or swap funding 
     facility;
       (C) in the case of the first \1/3\ transferred, for paying 
     administrative costs incurred by the State in implementing an 
     approved State program in an amount not to exceed 5 percent 
     of that first \1/3\; or
       (D) in the case of each successive \1/3\ transferred, for 
     paying administrative costs incurred by the State in 
     implementing an approved State program in an amount not to 
     exceed 3 percent of that successive \1/3\.
       (4) Termination of availability of amounts not transferred 
     within 2 years of participation.--Any portion of a 
     participating State's allocated amount that has not been 
     transferred to the State under this section by the end of the 
     2-year period beginning on the date that the Secretary 
     approves the State for participation may be deemed by the 
     Secretary to be no longer allocated to the State and no 
     longer available to the State and shall be returned to the 
     General Fund of the Treasury.
       (5) Transferred amounts not assistance.--The amounts 
     transferred to a participating State under this section shall 
     not be considered assistance for purposes of subtitle V of 
     title 31, United States Code.
       (6) Definitions.--In this section--
       (A) the term ``allocated amount'' means the total amount of 
     Federal funds allocated by the Secretary under subsection (b) 
     to the participating State; and
       (B) the term ``\1/3\'' means--
       (i) in the case of the first \1/3\ and second \1/3\, an 
     amount equal to 33 percent of a participating State's 
     allocated amount; and
       (ii) in the case of the last \1/3\, an amount equal to 34 
     percent of a participating State's allocated amount.

     SEC. 3204. APPROVING STATES FOR PARTICIPATION.

       (a) Application.--Any State may apply to the Secretary for 
     approval to be a participating State under the Program and to 
     be eligible for an allocation of Federal funds under the 
     Program.
       (b) General Approval Criteria.--The Secretary shall approve 
     a State to be a participating State, if--
       (1) a specific department, agency, or political subdivision 
     of the State has been designated to implement a State program 
     and participate in the Program;
       (2) all legal actions necessary to enable such designated 
     department, agency, or political subdivision to implement a 
     State program and participate in the Program have been 
     accomplished;
       (3) the State has filed an application with the Secretary 
     for approval of a State capital access program under section 
     3205 or approval as a State other credit support program 
     under section 3206, in each case within the time period 
     provided in the respective section; and
       (4) the State and the Secretary have executed an allocation 
     agreement that--
       (A) conforms to the requirements of this subtitle;
       (B) ensures that the State program complies with such 
     national standards as are established by the Secretary under 
     section 3209(a)(2);
       (C) sets forth internal control, compliance, and reporting 
     requirements as established by the Secretary, and such other 
     terms and conditions necessary to carry out the purposes of 
     this subtitle, including an agreement by the State to allow 
     the Secretary to audit State programs;
       (D) requires that the State program be fully positioned, 
     within 90 days of the State's execution of the allocation 
     agreement with the Secretary, to act on providing the kind of 
     credit support that the State program was established to 
     provide; and
       (E) includes an agreement by the State to deliver to the 
     Secretary, and update annually, a schedule describing how the 
     State intends to apportion among its State programs the 
     Federal funds allocated to the State.
       (c) Contractual Arrangements for Implementation of State 
     Programs.--A State may be approved to be a participating 
     State, and be eligible for an allocation of Federal funds 
     under the Program, if the State has contractual arrangements 
     for the implementation and administration of its State 
     program with--
       (1) an existing, approved State program administered by 
     another State; or
       (2) an authorized agent of, or entity supervised by, the 
     State, including for-profit and not-for-profit entities.
       (d) Special Permission.--
       (1) Circumstances when a municipality may apply directly.--
     If a State does not, within 60 days after the date of 
     enactment of this Act, file with the Secretary a notice of 
     its intent to apply for approval by the Secretary of a State 
     program or within 9 months after the date of enactment of 
     this Act, file with the Secretary a complete application for 
     approval of a State program, the Secretary may grant to 
     municipalities of that State a special permission that will 
     allow them to apply directly to the Secretary without the 
     State for approval to be participating municipalities.
       (2) Timing requirements applicable to municipalities 
     applying directly.--To qualify for the special permission, a 
     municipality of a State shall be required, within 12 months 
     after the date of enactment of this Act, to file with the 
     Secretary a complete application for approval by the 
     Secretary of a State program.
       (3) Notices of intent and applications from more than 1 
     municipality.--A municipality of a State may combine with 1 
     or more other municipalities of that State to file a joint 
     notice of intent to file and a joint application.
       (4) Approval criteria.--The general approval criteria in 
     paragraphs (2) and (4) shall apply.
       (5) Allocation to municipalities.--
       (A) If more than 3.--If more than 3 municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to the 3 
     municipalities with the largest populations.
       (B) If 3 or fewer.--If 3 or fewer municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to each applicant 
     municipality or combination of municipalities.
       (6) Apportionment of allocated amount among participating 
     municipalities.--If the Secretary approves municipalities to 
     be participating municipalities under this subsection, the 
     Secretary shall apportion the full amount of the Federal 
     funds that are allocated to that State to municipalities that 
     are approved under this subsection in amounts proportionate 
     to the population of those municipalities, based on the most 
     recent available decennial census.
       (7) Approving state programs for municipalities.--If the 
     Secretary approves municipalities to be participating 
     municipalities under this subsection, the Secretary shall 
     take into account the additional considerations in section 
     3206(d) in making the determination under section 3205 or 
     3206 that the State program or programs to be implemented by 
     the participating municipalities, including a State capital 
     access program, is eligible for Federal contributions to, or 
     for the account of, the State program.

     SEC. 3205. APPROVING STATE CAPITAL ACCESS PROGRAMS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, State capital access program that 
     meets the eligibility criteria in subsection (c) may apply to 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions to the reserve fund.
       (b) Approval.--The Secretary shall approve such State 
     capital access program as eligible for Federal contributions 
     to the reserve fund if--
       (1) within 60 days after the date of enactment of this Act, 
     the State has filed with the Secretary a notice of intent to 
     apply for approval by the Secretary of a State capital access 
     program;
       (2) within 9 months after the date of enactment of this 
     Act, the State has filed with the Secretary a complete 
     application for approval by the Secretary of a capital access 
     program;
       (3) the State satisfies the requirements of subsections (a) 
     and (b) of section 3204; and
       (4) the State capital access program meets the eligibility 
     criteria in subsection (c).
       (c) Eligibility Criteria for State Capital Access 
     Programs.--- For a State capital access program to be 
     approved under this section, that program shall be required 
     to be a program of the State that--
       (1) provides portfolio insurance for business loans based 
     on a separate loan-loss reserve fund for each financial 
     institution;
       (2) requires insurance premiums to be paid by the financial 
     institution lenders and by the business borrowers to the 
     reserve fund to have their loans enrolled in the reserve 
     fund;
       (3) provides for contributions to be made by the State to 
     the reserve fund in amounts at least equal to the sum of the 
     amount of the insurance premium charges paid by the borrower 
     and the financial institution to the reserve fund for any 
     newly enrolled loan; and
       (4) provides its portfolio insurance solely for loans that 
     meet both the following requirements:
       (A) The borrower has 500 employees or less at the time that 
     the loan is enrolled in the Program.
       (B) The loan amount does not exceed $5,000,000.
       (d) Federal Contributions to Approved State Capital Access 
     Programs.--A State capital access program approved under this 
     section will be eligible for receiving Federal contributions 
     to the reserve fund in an amount equal to the sum of the 
     amount of the insurance premium charges paid by the borrowers 
     and by the financial institution to the reserve fund for 
     loans that meet the requirements in subsection (c)(4). A 
     participating State may use the Federal contribution to make 
     its contribution to the reserve

[[Page S5617]]

     fund of an approved State capital access program.
       (e) Minimum Program Requirements for State Capital Access 
     Programs.--The Secretary shall, by regulation or other 
     guidance, prescribe Program requirements that meet the 
     following minimum requirements:
       (1) Experience and capacity.--The participating State shall 
     determine for each financial institution that participates in 
     the State capital access program, after consultation with the 
     appropriate Federal banking agency or, in the case of a 
     financial institution that is a nondepository community 
     development financial institution, the Community Development 
     Financial Institution Fund, that the financial institution 
     has sufficient commercial lending experience and financial 
     and managerial capacity to participate in the approved State 
     capital access program. The determination by the State shall 
     not be reviewable by the Secretary.
       (2) Investment authority.--Subject to applicable State law, 
     the participating State may invest, or cause to be invested, 
     funds held in a reserve fund by establishing a deposit 
     account at the financial institution lender in the name of 
     the participating State. In the event that funds in the 
     reserve fund are not deposited in such an account, such funds 
     shall be invested in a form that the participating State 
     determines is safe and liquid.
       (3) Loan terms and conditions to be determined by 
     agreement.--A loan to be filed for enrollment in an approved 
     State capital access program may be made with such interest 
     rate, fees, and other terms and conditions, and the loan may 
     be enrolled in the approved State capital access program and 
     claims may be filed and paid, as agreed upon by the financial 
     institution lender and the borrower, consistent with 
     applicable law.
       (4) Lender capital at-risk.--A loan to be filed for 
     enrollment in the State capital access program shall require 
     the financial institution lender to have a meaningful amount 
     of its own capital resources at risk in the loan.
       (5) Premium charges minimum and maximum amounts.--The 
     insurance premium charges payable to the reserve fund by the 
     borrower and the financial institution lender shall be 
     prescribed by the financial institution lender, within 
     minimum and maximum limits that require that the sum of the 
     insurance premium charges paid in connection with a loan by 
     the borrower and the financial institution lender may not be 
     less than 2 percent nor more than 7 percent of the amount of 
     the loan enrolled in the approved State capital access 
     program.
       (6) State contributions.--In enrolling a loan in an 
     approved State capital access program, the participating 
     State may make a contribution to the reserve fund to 
     supplement Federal contributions made under this Program.
       (7) Loan purpose.--
       (A) Particular loan purpose requirements and 
     prohibitions.--In connection with the filing of a loan for 
     enrollment in an approved State capital access program, the 
     financial institution lender--
       (i) shall obtain an assurance from each borrower that--

       (I) the proceeds of the loan will be used for a business 
     purpose;
       (II) the loan will not be used to finance such business 
     activities as the Secretary, by regulation, may proscribe as 
     prohibited loan purposes for enrollment in an approved State 
     capital access program; and
       (III) the borrower is not--

       (aa) an executive officer, director, or principal 
     shareholder of the financial institution lender;
       (bb) a member of the immediate family of an executive 
     officer, director, or principal shareholder of the financial 
     institution lender; or
       (cc) a related interest of any such executive officer, 
     director, principal shareholder, or member of the immediate 
     family;
       (ii) shall provide assurances to the participating State 
     that the loan has not been made in order to place under the 
     protection of the approved State capital access program prior 
     debt that is not covered under the approved State capital 
     access program and that is or was owed by the borrower to the 
     financial institution lender or to an affiliate of the 
     financial institution lender;
       (iii) shall not allow the enrollment of a loan to a 
     borrower that is a refinancing of a loan previously made to 
     that borrower by the financial institution lender or an 
     affiliate of the financial institution lender; and
       (iv) may include additional restrictions on the eligibility 
     of loans or borrowers that are not inconsistent with the 
     provisions and purposes of this subtitle, including 
     compliance with all applicable Federal and State laws, 
     regulations, ordinances, and Executive orders.
       (B) Definitions.--In this paragraph, the terms ``executive 
     officer'', ``director'', ``principal shareholder'', 
     ``immediate family'', and ``related interest'' refer to the 
     same relationship to a financial institution lender as the 
     relationship described in part 215 of title 12 of the Code of 
     Federal Regulations, or any successor to such part.
       (8) Capital access for small businesses in underserved 
     communities.--At the time that a State applies to the 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions, the State shall 
     deliver to the Secretary a report stating how the State plans 
     to use the Federal contributions to the reserve fund to 
     provide access to capital for small businesses in low- and 
     moderate-income, minority, and other underserved communities, 
     including women- and minority-owned small businesses.

     SEC. 3206. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE 
                   CREDIT ACCESS AND GUARANTEE INITIATIVES FOR 
                   SMALL BUSINESSES AND MANUFACTURERS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, credit support program that meets 
     the eligibility criteria in subsection (c) may apply to the 
     Secretary to have the State other credit support program 
     approved as eligible for Federal contributions to, or for the 
     account of, the State program.
       (b) Approval.--The Secretary shall approve such State other 
     credit support program as eligible for Federal contributions 
     to, or for the account of, the program if--
       (1) the Secretary determines that the State satisfies the 
     requirements of paragraphs (1) through (3) of section 
     3205(b);
       (2) the Secretary determines that the State other credit 
     support program meets the eligibility criteria in subsection 
     (c);
       (3) the Secretary determines the State other credit support 
     program to be eligible based on the additional considerations 
     in subsection (d); and
       (4) within 9 months after the date of enactment of this 
     Act, the State has filed with Treasury a complete application 
     for Treasury approval.
       (c) Eligibility Criteria for State Other Credit Support 
     Programs.--For a State other credit support program to be 
     approved under this section, that program shall be required 
     to be a program of the State that--
       (1) can demonstrate that, at a minimum, $1 of public 
     investment by the State program will cause and result in $1 
     of new private credit;
       (2) can demonstrate a reasonable expectation that, when 
     considered with all other State programs of the State, such 
     State programs together have the ability to use amounts of 
     new Federal contributions to, or for the account of, all such 
     programs in the State to cause and result in amounts of new 
     small business lending at least 10 times the new Federal 
     contribution amount;
       (3) for those State other credit support programs that 
     provide their credit support through 1 or more financial 
     institution lenders, requires the financial institution 
     lenders to have a meaningful amount of their own capital 
     resources at risk in their small business lending; and
       (4) uses Federal funds allocated under this subtitle to 
     extend credit support that--
       (A) targets an average borrower size of 500 employees or 
     less;
       (B) does not extend credit support to borrowers that have 
     more than 750 employees;
       (C) targets support towards loans with an average principal 
     amount of $5,000,000 or less; and
       (D) does not extend credit support to loans that exceed a 
     principal amount of $20,000,000.
       (d) Additional Considerations.--In making a determination 
     that a State other credit support program is eligible for 
     Federal contributions to, or for the account of, the State 
     program, the Secretary shall take into account the following 
     additional considerations:
       (1) The anticipated benefits to the State, its businesses, 
     and its residents to be derived from the Federal 
     contributions to, or for the account of, the approved State 
     other credit support program, including the extent to which 
     resulting small business lending will expand economic 
     opportunities.
       (2) The operational capacity, skills, and experience of the 
     management team of the State other credit support program.
       (3) The capacity of the State other credit support program 
     to manage increases in the volume of its small business 
     lending.
       (4) The internal accounting and administrative controls 
     systems of the State other credit support program, and the 
     extent to which they can provide reasonable assurance that 
     funds of the State program are safeguarded against waste, 
     loss, unauthorized use, or misappropriation.
       (5) The soundness of the program design and implementation 
     plan of the State other credit support program.
       (e) Federal Contributions to Approved State Other Credit 
     Support Programs.--A State other credit support program 
     approved under this section will be eligible for receiving 
     Federal contributions to, or for the account of, the State 
     program in an amount consistent with the schedule describing 
     the apportionment of allocated Federal funds among State 
     programs delivered by the State to the Secretary under the 
     allocation agreement.
       (f) Minimum Program Requirements for State Other Credit 
     Support Programs.--
       (1) Fund to prescribe.--The Secretary shall, by regulation 
     or other guidance, prescribe Program requirements for 
     approved State other credit support programs.
       (2) Considerations for fund.--In prescribing minimum 
     Program requirements for approved State other credit support 
     programs, the Secretary shall take into consideration, to the 
     extent the Secretary determines applicable and appropriate, 
     the minimum Program requirements for approved State capital 
     access programs in section 3205(e).

     SEC. 3207. REPORTS.

       (a) Quarterly Use-of-funds Report.--
       (1) In general.--Not later than 30 days after the beginning 
     of each calendar quarter,

[[Page S5618]]

     beginning after the first full calendar quarter to occur 
     after the date the Secretary approves a State for 
     participation, the participating State shall submit to the 
     Secretary a report on the use of Federal funding by the 
     participating State during the previous calendar quarter.
       (2) Report contents.--Each report under this subsection 
     shall--
       (A) indicate the total amount of Federal funding used by 
     the participating State; and
       (B) include a certification by the participating State 
     that--
       (i) the information provided in accordance with 
     subparagraph (A) is accurate;
       (ii) funds continue to be available and legally committed 
     to contributions by the State to, or for the account of, 
     approved State programs, less any amount that has been 
     contributed by the State to, or for the account of, approved 
     State programs subsequent to the State being approved for 
     participation in the Program; and
       (iii) the participating State is implementing its approved 
     State program or programs in accordance with this subtitle 
     and regulations issued under section 3210.
       (b) Annual Report.--Not later than March 31 of each year, 
     beginning March 31, 2011, each participating State shall 
     submit to the Secretary an annual report that shall include 
     the following information:
       (1) The number of borrowers that received new loans 
     originated under the approved State program or programs after 
     the State program was approved as eligible for Federal 
     contributions.
       (2) The total amount of such new loans.
       (3) Breakdowns by industry type, loan size, annual sales, 
     and number of employees of the borrowers that received such 
     new loans.
       (4) The zip code of each borrower that received such a new 
     loan.
       (5) Such other data as the Secretary, in the Secretary's 
     sole discretion, may require to carry out the purposes of the 
     Program.
       (c) Form.--The reports and data filed under subsections (a) 
     and (b) shall be in such form as the Secretary, in the 
     Secretary's sole discretion, may require.
       (d) Termination of Reporting Requirements.--The requirement 
     to submit reports under subsections (a) and (b) shall 
     terminate for a participating State with the submission of 
     the completed reports due on the first March 31 to occur 
     after 5 complete 12-month periods after the State is approved 
     by the Secretary to be a participating State.

     SEC. 3208. REMEDIES FOR STATE PROGRAM TERMINATION OR 
                   FAILURES.

       (a) Remedies.--
       (1) In general.--If any of the events listed in paragraph 
     (2) occur, the Secretary, in the Secretary's discretion, 
     may--
       (A) reduce the amount of Federal funds allocated to the 
     State under the Program; or
       (B) terminate any further transfers of allocated amounts 
     that have not yet been transferred to the State.
       (2) Causal events.--The events referred to in paragraph (1) 
     are--
       (A) termination by a participating State of its 
     participation in the Program;
       (B) failure on the part of a participating State to submit 
     complete reports under section 3207 on a timely basis; or
       (C) noncompliance by the State with the terms of the 
     allocation agreement between the Secretary and the State.
       (b) Deallocated Amounts To Be Reallocated.--If, after 13 
     months, any portion of the amount of Federal funds allocated 
     to a participating State is deemed by the Secretary to be no 
     longer allocated to the State after actions taken by the 
     Secretary under subsection (a)(1), the Secretary shall 
     reallocate that portion among the participating States, 
     excluding the State whose allocated funds were deemed to be 
     no longer allocated, as provided in section 3203(b).

     SEC. 3209. IMPLEMENTATION AND ADMINISTRATION.

       (a) General Authorities and Duties.--The Secretary shall--
       (1) consult with the Administrator of the Small Business 
     Administration and the appropriate Federal banking agencies 
     on the administration of the Program;
       (2) establish minimum national standards for approved State 
     programs;
       (3) provide technical assistance to States for starting 
     State programs and generally disseminate best practices;
       (4) manage, administer, and perform necessary program 
     integrity functions for the Program; and
       (5) ensure adequate oversight of the approved State 
     programs, including oversight of the cash flows, performance, 
     and compliance of each approved State program.
       (b) Appropriations.--There is hereby appropriated to the 
     Secretary, out of funds in the Treasury not otherwise 
     appropriated, $900,000,000 to carry out the Program, 
     including to pay reasonable costs of administering the 
     Program.
       (c) Termination of Secretary's Program Administration 
     Functions.--The authorities and duties of the Secretary to 
     implement and administer the Program shall terminate at the 
     end of the 7-year period beginning on the date of enactment 
     of this Act.
       (d) Expedited Contracting.--During the 1-year period 
     beginning on the date of enactment of this Act, the Secretary 
     may enter into contracts without regard to any other 
     provision of law regarding public contracts, for purposes of 
     carrying out this subtitle.

     SEC. 3210. REGULATIONS.

       The Secretary, in consultation with the Administrator of 
     the Small Business Administration, shall issue such 
     regulations and other guidance as the Secretary determines 
     necessary or appropriate to implement this subtitle including 
     to define terms, to establish compliance and reporting 
     requirements, and such other terms and conditions necessary 
     to carry out the purposes of this subtitle.

     SEC. 3211. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the use of funds made 
     available under the Program.
       (b) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (c) Required Certification.--
       (1) Financial institutions certification.--With respect to 
     funds received by a participating State under the Program, 
     any financial institution that receives a loan, a loan 
     guarantee, or other financial assistance using such funds 
     after the date of the enactment of this Act shall certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in section 5312 (a)(2) 
     and (c)(1)(A) of title 31, United States Code, to implement 
     reasonable procedures to verify the identity of any person 
     seeking to open an account, to the extent reasonable and 
     practicable, maintain records of the information used to 
     verify the person's identity, and determine whether the 
     person appears on any lists of known or suspected terrorists 
     or terrorist organizations provided to the financial 
     institution by any government agency.
       (2) Sex offense certification.--With respect to funds 
     received by a participating State under the Program, any 
     private entity that receives a loan, a loan guarantee, or 
     other financial assistance using such funds after the date of 
     the enactment of this Act shall certify to the participating 
     State that the principals of such entity have not been 
     convicted of a sex offense against a minor (as such terms are 
     defined in section 111 of the Sex Offender Registration and 
     Notification Act (42 U.S.C. 16911)).
       (d) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

                     TITLE IV--BUDGETARY PROVISIONS

     SEC. 4001. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

                                TITLE V

       The provisions of the Act shall become effective upon 
     enactment.
                                 ______
                                 
  SA 4408. Mr. REID proposed an amendment to amendment SA 4407 proposed 
by Mr. Reid (for himself, Mr. Baucus, and Ms. Landrieu) to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; as 
follows:

       At the end of the amendment, insert the following:
       The provision of this Act shall become effective two days 
     after enactment.
                                 ______
                                 
  SA 4409. Mr. REID proposed an amendment to amendment SA 4408 proposed 
by Mr. Reid to the amendment SA 4407 proposed by Mr. Reid (for himself, 
Mr. Baucus, and Ms. Landrieu) to the bill H.R. 5297, to create the 
Small Business Lending Fund Program to direct the Secretary of the 
Treasury to make capital investments in eligible institutions in order 
to increase the availability of credit for small businesses, to amend 
the Internal Revenue Code of 1986 to provide tax incentives for small 
business job creation, and for other purposes; as follows:

       In the amendment, strike ``two days'' and insert 
     ``immediately''.
                                 ______
                                 
  SA 4410. Mr. KERRY (for himself and Mr. Ensign) submitted an 
amendment intended to be proposed by him to the bill H.R. 5297, to 
create the Small Business Lending Fund Program to direct the Secretary 
of the Treasury to make

[[Page S5619]]

capital investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR 
                   TELECOMMUNICATIONS EQUIPMENT FROM LISTED 
                   PROPERTY; PARTIAL ANNUITIZATION OFFSET.

       (a) Removal From Listed Property.--
       (1) In general.--Subparagraph (A) of section 280F(d)(4) of 
     the Internal Revenue Code of 1986 (defining listed property) 
     is amended by adding `` `and' '' at the end of clause (iv), 
     by striking clause (v), and by redesignating clause (vi) as 
     clause (v).
       (2) Effective date.--The amendment made by this subsection 
     shall apply to taxable years beginning after December 31, 
     2009.
       (b) Special Rules for Annuities Received From Only a 
     Portion of a Contract.--
       (1) In general.--Subsection (a) of section 72 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(a) General Rules for Annuities.--
       ``(1) Income inclusion.--Except as otherwise provided in 
     this chapter, gross income includes any amount received as an 
     annuity (whether for a period certain or during one or more 
     lives) under an annuity, endowment, or life insurance 
     contract.
       ``(2) Partial annuitization.--If any amount is received as 
     an annuity for a period of 10 years or more or during one or 
     more lives under any portion of an annuity, endowment, or 
     life insurance contract--
       ``(A) such portion shall be treated as a separate contract 
     for purposes of this section,
       ``(B) for purposes of applying subsections (b), (c), and 
     (e), the investment in the contract shall be allocated pro 
     rata between each portion of the contract from which amounts 
     are received as an annuity and the portion of the contract 
     from which amounts are not received as an annuity, and
       ``(C) a separate annuity starting date under subsection 
     (c)(4) shall be determined with respect to each portion of 
     the contract from which amounts are received as an 
     annuity.''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to amounts received in taxable years beginning 
     after December 31, 2010.
                                 ______
                                 
  SA 4411. Mr. BINGAMAN (for himself and Mr. Kerry) submitted an 
amendment intended to be proposed by him to the bill H.R. 5297, to 
create the Small Business Lending Fund Program to direct the Secretary 
of the Treasury to make capital investments in eligible institutions in 
order to increase the availability of credit for small businesses, to 
amend the Internal Revenue Code of 1986 to provide tax incentives for 
small business job creation, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. _. ALLOWING LOW-INCOME HOUSING CREDITS TO OFFSET 100 
                   PERCENT OF FEDERAL INCOME TAX LIABILITY.

       (a) In General.--Subsection (c) of section 38 of the 
     Internal Revenue Code of 1986, as amended by this Act, is 
     amended by redesignating paragraph (6) as paragraph (7) and 
     by inserting after paragraph (5) the following new paragraph:
       ``(6) Allowing low-income housing credit to offset 100 
     percent of federal income tax liability.--
       ``(A) In general.--In the case of applicable low-income 
     housing credits--
       ``(i) this section and section 39 shall be applied 
     separately with respect to such credits, and
       ``(ii) in applying paragraph (1) to such credits--

       ``(I) the tentative minimum tax and the net regular tax 
     liability shall be treated as being zero solely for purposes 
     of applying subparagraphs (A) and (B) thereof, and
       ``(II) the limitation under paragraph (1) shall be the net 
     income tax (as defined in paragraph (1) without regard to 
     subclause (I) of this clause) reduced by the credit allowed 
     under subsection (a) for the taxable year (other than the 
     applicable low-income housing credits).

       ``(B) Applicable low-income housing credits.--For purposes 
     of this subpart--
       ``(i) In general.--The term `applicable low-income housing 
     credit' means the credit determined under section 42 for a 
     taxable year ending after December 31, 2008, and beginning 
     before January 1, 2011 (including carryforwards of such 
     credit to such years) with respect to which the taxpayer 
     elects the application of this subparagraph, and to the 
     extent provided in subparagraph (D).
       ``(ii) Eligible taxpayers.--Clause (i) shall not apply in 
     the case of any taxpayer which is a government-sponsored 
     enterprise (as defined in section 1004(f) of the Financial 
     Institutions Reform, Recovery, and Enforcement Act of 1989).
       ``(C) Election.--
       ``(i) In general.--An election under this subparagraph may 
     be made only with respect to 1 taxable year of the taxpayer.
       ``(ii) Manner of election.--Any election under this 
     subparagraph shall be made in such manner as may be 
     prescribed by the Secretary, and shall be made by the due 
     date (including extensions of time) for filing the return (or 
     any amendment thereto) for the taxpayer's last taxable year 
     beginning in 2010. Any such election, once made, shall be 
     irrevocable.
       ``(D) Investments in new small business projects.--
       ``(i) In general.--Subparagraph (B) shall apply to credits 
     under section 42 for a taxable year only--

       ``(I) if the taxpayer has, during the applicable period, 
     entered into 1 or more binding commitments to invest equity 
     with respect to investments in 1 or more future qualified 
     small business projects (which are binding on the taxpayer 
     and all successors in interest), directly or through a fund 
     organized for the purpose of making such investments, which 
     specify the dollar amount of each such commitment, and
       ``(II) to the extent such credits do not exceed the dollar 
     amount of such investment commitments.

       ``(ii) Applicable period.--For purposes of this 
     subparagraph, the applicable period is the period beginning 
     on June 1, 2010, and ending on the date which is 9 months 
     after the date of the enactment of the Creating Small 
     Business Jobs Act of 2010.
       ``(iii) Qualified small business project.--For purposes of 
     this subparagraph, the term `qualified small business 
     project' means a low-income housing project--

       ``(I) the eligible basis of which (as determined under 
     section 42(d)) does not exceed $50,000,000,
       ``(II) the credit period of which begins after December 31, 
     2009,
       ``(III) for which the taxpayer has acquired ownership, and 
     has contributed capital in an amount which is not less than 
     20 percent of the total amount of capital the taxpayer has 
     committed to contribute, not later than December 31, 2011, 
     and
       ``(IV) which has received an allocation of low-income 
     housing credits under section 42 from a State housing credit 
     agency not later than December 31, 2011.''.

       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2008, and to carrybacks of credits from such taxable years.

     SEC. _. FIVE-YEAR CARRYBACK OF LOW-INCOME HOUSING CREDIT.

       (a) In General.--Subsection (a) of section 39 of the 
     Internal Revenue Code of 1986, as amended by this Act, is 
     amended by adding at the end the following new paragraph:
       ``(5) 5-year carryback for applicable low-income housing 
     credits.--Notwithstanding subsection (d), in the case of 
     applicable low-income housing credits (within the meaning of 
     section 38(c)(6)(B)), paragraph (1) shall be applied by 
     substituting `each of the 5 taxable years' for `the taxable 
     year' in subparagraph (A) thereof.''.
       (b) Conforming Amendments.--
       (1) Section 39(a)(3)(A) of the Internal Revenue Code of 
     1986 is amended by inserting ``or the applicable low-income 
     housing credits'' after ``credit)''.
       (2) Section 39(a)(3)(A) of such Code, as amended by this 
     Act, is amended by striking ``credit) or the eligible small 
     business credits or the applicable low-income housing 
     credits'' and inserting ``credit), the eligible small 
     business credits, or the applicable low-income housing 
     credits''.
       (3) Subparagraph (A) of section 39(a)(4) of the Internal 
     Revenue Code of 1986, as added by this Act, is amended by 
     inserting ``paragraph (5) and'' after ``Notwithstanding''.
       (c) Effective Dates.--
       (1) In general.--The amendments made by subsection (a) and 
     subsection (b)(1) shall apply to credits determined in 
     taxable years beginning after December 31, 2008, and to 
     carrybacks of credits from such taxable years.
       (2) Conforming amendment.--The amendments made by 
     paragraphs (2) and (3) of subsection (b) shall apply to 
     credits determined in taxable years beginning after December 
     31, 2009.
                                 ______
                                 
  SA 4412. Ms. LANDRIEU submitted an amendment intended to be proposed 
by her to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. CLARIFICATION OF TREATMENT OF SALES OR EXCHANGES OF 
                   WETLAND MITIGATION CREDITS AS LONG-TERM CAPITAL 
                   GAIN OR LOSS.

       (a) In General.--Part IV of subchapter P of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by inserting 
     after section 1257 the following new section:

     ``SEC. 1257A. GAINS OR LOSSES FROM SALES OR EXCHANGES OF 
                   WETLANDS MITIGATION CREDITS.

       ``(a) General Rule.--Gain or loss attributable to the sale 
     or exchange of a mitigation bank credit by the sponsor of the 
     mitigation bank who earned such credit shall be considered 
     the sale or exchange of a capital asset held for more than 1 
     year.

[[Page S5620]]

       ``(b) Definitions.--For purposes of this section, the terms 
     `mitigation bank' and `mitigation bank credit' have the 
     respective meanings given such terms by part 332 of title 33 
     of the Code of Federal Regulations.''.
       (b) Clerical Amendment.--The table of sections for part IV 
     of subchapter P of chapter 1 of such Code is amended by 
     inserting after the item relating to section 1257 the 
     following new item:

``Sec. 1257A. Gains or losses from sales or exchanges of wetlands 
              mitigation credits.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to sales or exchanges of mitigation 
     bank credits occurring before, on, or after the date of 
     enactment of this Act.

     SEC. ___. EXEMPTION OF WETLAND MITIGATION CREDIT SALES FROM 
                   FIRPTA.

       (a) In General.--Section 897(c)(6) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(D) Exemption of wetland mitigation credit sales.--The 
     term `United States real property interest' does not include 
     any mitigation bank credit (as defined in part 332 of title 
     33 of the Code of Federal Regulations.''.
       (b) Conforming Amendment.--Section 897(c)(1)(A) of such 
     Code is amended by inserting ``and paragraph (6)(C)'' after 
     ``subparagraph (B)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to sales or exchanges of mitigation 
     bank credits occurring before, on, or after the date of 
     enactment of this Act.
                                 ______
                                 
  SA 4413. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. EXTENSION OF REQUIREMENT FOR REPORTS ON ACQUISITIONS 
                   OF ARTICLES, MATERIALS, AND SUPPLIES 
                   MANUFACTURED OUTSIDE THE UNITED STATES.

       Section 2(b)(1) of the Buy American Act (41 U.S.C. 
     10a(b)(1)) is amended by striking ``2011'' and inserting 
     ``2016''.
                                 ______
                                 
  SA 4414. Mr. CARDIN submitted an amendment intended to be proposed by 
him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SURETY BONDS.

       Section 508(f) of division A of the American Recovery and 
     Reinvestment Act of 2009 (15 U.S.C. 694a note) is repealed.
                                 ______
                                 
  SA 4415. Mr. CARDIN submitted an amendment intended to be proposed by 
him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the appropriate place, insert the following:

     SEC. __. SMALL BUSINESS TRAINING.

       Section 37(f)(3) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 433(f)(3)) is amended--
       (1) by striking ``For each career path,'' and inserting the 
     following:
       ``(A) In general.--For each career path,''; and
       (2) by adding at the end the following:
       ``(B) Certification program.--
       ``(i) In general.--The Administrator shall establish a 
     certification program for acquisition personnel. The 
     certification program shall be carried out through the 
     Federal Acquisition Institute.
       ``(ii) Small business training.--The certification program 
     under this subparagraph shall include training regarding--

       ``(I) small business government contracting set-aside 
     programs, including--

       ``(aa) programs for HUBZone small business concerns, small 
     business concerns owned and controlled by service-disabled 
     veterans, and small business concerns owned and controlled by 
     women (as those terms are defined in section 3 of the Small 
     Business Act (15 U.S.C. 632));
       ``(bb) programs for socially and economically disadvantaged 
     small business concerns (as defined in section 8(a) of the 
     Small Business Act (15 U.S.C. 637(a))); and
       ``(cc) contracting under the Small Business Innovation 
     Research Program and the Small Business Technology Transfer 
     Program (as those terms are defined in section 9(e) of the 
     Small Business Act (15 U.S.C. 638(e)));

       ``(II) determining small business size standards and using 
     North American Industry Classification System codes in 
     relation to contracting set-aside programs and subcontracting 
     goals; and
       ``(III) any other issue relating to contracting with small 
     business concerns (as defined under section 3 of the Small 
     Business Act (15 U.S.C. 632)) determined appropriate by the 
     Administrator.''.

                                 ______
                                 
  SA 4416. Mr. VITTER submitted an amendment intended to be proposed by 
him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of the amendment, insert the following:

     SEC. ___. EXTENSION OF NATIONAL FLOOD INSURANCE PROGRAM.

       (a) Program Extension.--Section 1319 of the National Flood 
     Insurance Act of 1968 (42 U.S.C. 4026) is amended by striking 
     ``September 30, 2008'' and inserting ``September 30, 2010''.
       (b) Financing.--Section 1309(a) of such Act (42 U.S.C. 
     4016(a)) is amended--
       (1) by striking ``September 30, 2008'' and inserting 
     ``September 30, 2010''; and
       (2) by striking ``$20,775,000,000'' and inserting 
     ``$20,725,000,000''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall be considered to have taken effect on May 31, 
     2010.
       (d) Budget Compliance.--The budgetary effects of this 
     section, for the purpose of complying with the Statutory Pay-
     As-You-Go Act of 2010, shall be determined by reference to 
     the latest statement titled ``Budgetary Effects of PAYGO 
     Legislation'' for this section, submitted for printing in the 
     Congressional Record by the Chairman of the House Budget 
     Committee, provided that such statement has been submitted 
     prior to the vote on passage.
                                 ______
                                 
  SA 4417. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       At the end of part IV of subtitle A of title II, insert the 
     following:

     SEC. --. WORK OPPORTUNITY CREDIT FOR CERTAIN RECENTLY 
                   DISCHARGED VETERANS.

       (a) In General.--Subparagraph (A) of section 51(d)(3) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``means any veteran'' and all that follows and inserting 
     ``means any recently discharged veteran and any disadvantaged 
     veteran.''
       (b) Recently Discharged Veteran; Disadvantaged Veteran.--
     Paragraph (3) of section 51(d) of the Internal Revenue Code 
     of 1986 is amended--
       (1) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (D) and (E), respectively, and
       (2) by inserting after subparagraph (A) the following new 
     subparagraphs:
       ``(B) Recently discharged veteran.--For purposes of 
     subparagraph (A), the term `recently discharged veteran' 
     means--
       ``(i) any individual who has served on active duty (other 
     than active duty for training) in the Armed Forces of the 
     United States for more than 180 total days (whether 
     consecutive or not),
       ``(ii) any individual who has been discharged or released 
     from active duty in the Armed Forces of the United States for 
     a service-connected disability, and
       ``(iii) any member of the National Guard who has served for 
     more than 180 total days (whether consecutive or not) of--

       ``(I) active duty (within the meaning of title 32, United 
     States Code) other than for training,
       ``(II) full-time National Guard duty (within the meaning of 
     such title 32) other than for training,
       ``(III) duty, other than inactive duty or duty for 
     training, in State status (within the meaning of such title 
     32), or
       ``(IV) any combination of duty described in subclause (I), 
     (II), or (III),

     who has been discharged or released from such duty at any 
     time during the 5-year period ending on the hiring date. Such 
     term shall not include any unemployed veteran who begins work 
     for the employer before the date of the enactment of the 
     Creating Small Business Jobs Act of 2010.

[[Page S5621]]

       ``(C) Disadvantaged veteran.--For purposes of subparagraph 
     (A), the term `disadvantaged veteran' means any veteran who 
     is certified by the designated local agency as--
       ``(i) being a member of a family receiving assistance under 
     a supplemental nutrition assistance program under the Food 
     and Nutrition Act of 2008 for at least a 3-month period 
     ending during the 12-month period ending on the hiring date, 
     or
       ``(ii) entitled to compensation for a service-connected 
     disability, and--

       ``(I) having a hiring date which is not more than 1 year 
     after having been discharged or released from active duty in 
     the Armed Forces of the United States, or
       ``(II) having aggregate periods of unemployment during the 
     1-year period ending on the hiring date which equal or exceed 
     6 months.''.

       (c) Conforming Amendments.--Section 51 of the Internal 
     Revenue Code of 1986 is amended--
       (1) by striking ``(d)(3)(A)(ii)'' in paragraph (3) of 
     subsection (b) and inserting ``(d)(3)(C)(ii)'',
       (2) by striking ``For purposes of subparagraph (A)'' each 
     place it appears in subparagraphs (D) and (E) of subsection 
     (d)(3), as redesignated by subsection (b), and inserting 
     ``For purposes of subparagraph (C)'',
       (3) by adding at the end of paragraph (13) of subsection 
     (d) the following new subparagraph:
       ``(D) Pre-screening of recently discharged veterans.--
       ``(i) In general.--For purposes of subparagraph (A), the 
     term `pre-screening notice' shall include any documentation 
     provided to an individual by the Department of Defense or the 
     National Guard upon release or discharge from the Armed 
     Forces or from service in the National Guard which includes 
     information sufficient to establish that such individual is a 
     recently discharged veteran.
       ``(ii) Additional certification not required.--Subparagraph 
     (A) shall be applied without regard to clause (ii)(II) 
     thereof in the case of a recently discharged veteran who 
     provides to the employer documentation described in clause 
     (i).'',
       (4) by inserting ``who begins work for the employer after 
     December 31, 2008, and before the date of the enactment of 
     the Creating Small Business Jobs Act of 2010,'' after ``Any 
     unemployed veteran'' in subparagraph (A) of subsection 
     (d)(14), and
       (5) by inserting a comma after ``during 2009 or 2010'' in 
     subparagraph (A) of subsection (d)(14).
       (d) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply to individuals whose hiring 
     date (as defined in section 51(d)(11) of the Internal Revenue 
     Code of 1986) is on or after the date of the enactment of 
     this Act.
       (e) Department of Defense Documentation.--
       (1) In general.--The Department of Defense and the National 
     Guard, as applicable, shall provide--
       (A) to each individual who is discharged or released from 
     active duty in the Armed Forces of the United States on or 
     after the date of the enactment of this Act; and
       (B) to each member of the National Guard who is released 
     from duty described in section 51(d)(3)(B)(iii) of the 
     Internal Revenue Code of 1986 (as added by this Act) on or 
     after the date of the enactment of this Act;

     in addition to the documentation which, without regard to 
     this subsection, is provided at the time of such discharge or 
     release, documentation described in paragraph (4). If the 
     documentation which is provided without regard to this 
     subsection at the time of the discharge or release described 
     in the preceding sentence does not include information 
     sufficient to satisfy the requirements of section 
     51(d)(13)(D)(i) of the Internal Revenue Code of 1986 (as 
     added by this Act), the Department of Defense or the National 
     Guard, whichever is applicable, shall provide additional 
     documentation which includes such information.
       (2) Informational briefing.--In the case of an individual 
     who is discharged or released from duty described in 
     subparagraph (A) or (B) of paragraph (1) after the date of 
     the enactment of this Act, the Department of Defense or the 
     National Guard, whichever is applicable, shall provide a 
     briefing to such individual before or at the time of such 
     discharge or release to inform such individual of the credit 
     for employment of recently discharged veterans under section 
     51 of the Internal Revenue Code of 1986.
       (3) Request for documentation.--The Department of Defense 
     or the National Guard, whichever is applicable, shall provide 
     upon request the documentation described in paragraph (1) to 
     any individual who is discharged or released from duty 
     described in subparagraph (A) or (B) of paragraph (1) during 
     the 5-year period preceding and including the date of the 
     enactment of this Act.
       (4) Instructions for use of work opportunity credit.--The 
     documentation described in this paragraph is a document which 
     includes--
       (A) instructions for an individual to ensure treatment as a 
     recently discharged veteran for purposes of section 
     51(d)(3)(B) of the Internal Revenue Code of 1986 (as added by 
     this Act),
       (B) instructions for employers detailing the use of the 
     credit under such section 51 with respect to such individual, 
     and
       (C) the dates during which the credit under such section 51 
     is available.

     Such instructions shall be developed in collaboration with 
     the Internal Revenue Service.
                                 ______
                                 
  SA 4418. Mr. WHITEHOUSE (for himself, Mr. Bennet, Mr. Brown of 
Massachusetts, Mr. Brown of Ohio, Mr. Corker, Mr. Durbin, Mrs. 
Feinstein, Mr. Graham, Mr. Kaufman, Mr. Leahy, Mr. LeMieux, Mrs. 
McCaskill, Mr. Menendez, Mr. Nelson of Florida, Mr. Pryor, Mr. Schumer, 
Mr. Sessions, Mr. Specter, and Mr. Warner) submitted an amendment 
intended to be proposed to amendment SA 4402 proposed by Mr. Reid (for 
Mr. Baucus) to the bill H.R. 5297, to create the Small Business Lending 
Fund Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page 236, between lines 11 and 12, insert the following:

TITLE IV--REGISTRATION OF AGENTS OF FOREIGN MANUFACTURERS AUTHORIZED TO 
                       ACCEPT SERVICE OF PROCESS

     SEC. 4001. FINDINGS.

       Congress makes the following findings:
       (1) Each year, many people in the United States are injured 
     by defective products manufactured or produced by foreign 
     entities and imported into the United States.
       (2) Both consumers and businesses in the United States have 
     been harmed by injuries to people in the United States caused 
     by defective products manufactured or produced by foreign 
     entities.
       (3) People in the United States injured by defective 
     products manufactured or produced by foreign entities often 
     have difficulty recovering damages from the foreign 
     manufacturers and producers responsible for such injuries.
       (4) The difficulty described in paragraph (3) is caused by 
     the obstacles in bringing a foreign manufacturer or producer 
     into a United States court and subsequently enforcing a 
     judgment against that manufacturer or producer.
       (5) Obstacles to holding a responsible foreign manufacturer 
     or producer liable for an injury to a person in the United 
     States undermine the purpose of the tort laws of the United 
     States.
       (6) The difficulty of applying the tort laws of the United 
     States to foreign manufacturers and producers puts United 
     States manufacturers and producers at a competitive 
     disadvantage because United States manufacturers and 
     producers must--
       (A) abide by common law and statutory safety standards; and
       (B) invest substantial resources to ensure that they do so.
       (7) Foreign manufacturers and producers can avoid the 
     expenses necessary to make their products safe if they know 
     that they will not be held liable for violations of United 
     States product safety laws.
       (8) Businesses in the United States undertake numerous 
     commercial relationships with foreign manufacturers, exposing 
     the businesses to additional tort liability when foreign 
     manufacturers or producers evade United States courts.
       (9) Businesses in the United States engaged in commercial 
     relationships with foreign manufacturers or producers often 
     cannot vindicate their contractual rights if such 
     manufacturers or producers seek to avoid responsibility in 
     United States courts.
       (10) One of the major obstacles facing businesses and 
     individuals in the United States who are injured and who seek 
     compensation for economic or personal injuries caused by 
     foreign manufacturers and producers is the challenge of 
     serving process on such manufacturers and producers.
       (11) An individual or business injured in the United States 
     by a foreign company must rely on a foreign government to 
     serve process when that company is located in a country that 
     is a signatory to the Convention on the Service Abroad of 
     Judicial and Extrajudicial Documents in Civil or Commercial 
     Matters done at The Hague November 15, 1965 (20 UST 361; TIAS 
     6638).
       (12) An injured person in the United States must rely on 
     the cumbersome system of letters rogatory to effect service 
     in a country that did not sign the Convention on the Service 
     Abroad of Judicial and Extrajudicial Documents in Civil or 
     Commercial Matters. These countries do not have an 
     enforceable obligation to serve process as requested.
       (13) The procedures described in paragraphs (11) and (12) 
     add time and expense to litigation in the United States, 
     thereby discouraging or frustrating meritorious lawsuits 
     brought by persons injured in the United States against 
     foreign manufacturers and producers.
       (14) Foreign manufacturers and producers often seek to 
     avoid judicial consideration of their actions by asserting 
     that United States courts lack personal jurisdiction over 
     them.
       (15) The due process clauses of the fifth amendment to and 
     section 1 of the fourteenth amendment to the Constitution 
     govern United States courts' personal jurisdiction over 
     defendants.

[[Page S5622]]

       (16) The due process clauses described in paragraph (15) 
     are satisfied when a defendant consents to the jurisdiction 
     of a court.
       (17) United States markets present many opportunities for 
     foreign manufacturers.
       (18) In choosing to export products to the United States, a 
     foreign manufacturer or producer subjects itself to the laws 
     of the United States. Such a foreign manufacturer or producer 
     thereby acknowledges that it is subject to the personal 
     jurisdiction of the State and Federal courts in at least one 
     State.

     SEC. 4002. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) foreign manufacturers and producers whose products are 
     sold in the United States should not be able to avoid 
     liability simply because of difficulties relating to serving 
     process upon them;
       (2) to avoid such lack of accountability, foreign 
     manufacturers and producers of foreign products distributed 
     in the United States should be required, by regulation, to 
     register an agent in the United States who is authorized to 
     accept service of process for such manufacturer or producer;
       (3) it is unfair to United States consumers and businesses 
     that foreign manufacturers and producers often seek to avoid 
     judicial consideration of their actions by asserting that 
     United States courts lack personal jurisdiction over them;
       (4) those who benefit from exporting products to United 
     States markets should expect to be subject to the 
     jurisdiction of at least one court within the United States;
       (5) exporting products to the United States should be 
     understood as consent to the accountability that the legal 
     system of the United States ensures for all manufacturers and 
     producers, foreign, and domestic;
       (6) exporters recognize the scope of opportunities 
     presented to them by United States markets but also should 
     recognize that products imported into the United States must 
     satisfy Federal and State safety standards established by 
     statute, regulation, and common law;
       (7) foreign manufacturers should recognize that they are 
     responsible for the contracts they enter into with United 
     States companies;
       (8) foreign manufacturers should act responsibly and 
     recognize that they operate within the constraints of the 
     United States legal system when they export products to the 
     United States;
       (9) United States laws and the laws of United States 
     trading partners should not put burdens on foreign 
     manufacturers and producers that do not apply to domestic 
     companies;
       (10) it is fair to ensure that foreign manufacturers, whose 
     products are distributed in commerce in the United States, 
     are subject to the jurisdiction of State and Federal courts 
     in at least one State because all United States manufacturers 
     are subject to the jurisdiction of the State and Federal 
     courts in at least one State; and
       (11) it should be understood that, by registering an agent 
     for service of process in the United States, the foreign 
     manufacturer or producer acknowledges consent to the 
     jurisdiction of the State in which the registered agent is 
     located.

     SEC. 4003. DEFINITIONS.

       In this title:
       (1) Applicable agency.--The term ``applicable agency'' 
     means, with respect to covered products--
       (A) described in subparagraphs (A) and (B) of paragraph 
     (4), the Food and Drug Administration;
       (B) described in paragraph (4)(C), the Consumer Product 
     Safety Commission;
       (C) described in subparagraphs (D) and (E) of paragraph 
     (4), the Environmental Protection Agency; and
       (D) described in subparagraph (F) of paragraph (4)--
       (i) the Food and Drug Administration, if the item is 
     intended to be a component part of a product described in 
     subparagraphs (A) and (B) of paragraph (4);
       (ii) the Consumer Product Safety Commission, if the item is 
     intended to be a component part of a product described in 
     paragraph (4)(C); and
       (iii) the Environmental Protection Agency, if the item is 
     intended to be a component part of a product described in 
     subparagraphs (D) and (E) of paragraph (4).
       (2) Commerce.--The term ``commerce'' means trade, traffic, 
     commerce, or transportation--
       (A) between a place in a State and any place outside of the 
     State; or
       (B) which affects trade, traffic, commerce, or 
     transportation described in subparagraph (A).
       (3) Commissioner of u.s. customs and border protection.--
     The term ``Commissioner of U.S. Customs and Border 
     Protection'' means the Commissioner responsible for U.S. 
     Customs and Border Protection of the Department of Homeland 
     Security.
       (4) Covered product.--The term ``covered product'' means 
     any of the following:
       (A) Drugs, devices, and cosmetics, as such terms are 
     defined in section 201 of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321).
       (B) A biological product, as such term is defined in 
     section 351(i) of the Public Health Service Act (42 U.S.C. 
     262(i)).
       (C) A consumer product, as such term is used in section 
     3(a) of the Consumer Product Safety Act (15 U.S.C. 2052).
       (D) A chemical substance or new chemical substance, as such 
     terms are defined in section 3 of the Toxic Substances 
     Control Act (15 U.S.C. 2602).
       (E) A pesticide, as such term is defined in section 2 of 
     the Federal Insecticide, Fungicide, and Rodenticide Act (7 
     U.S.C. 136).
       (F) An item intended to be a component part of a product 
     described in subparagraph (A), (B), (C), (D), or (E) but is 
     not yet a component part of such product.
       (5) Distribute in commerce.--The term ``distribute in 
     commerce'' means to sell in commerce, to introduce or deliver 
     for introduction into commerce, or to hold for sale or 
     distribution after introduction into commerce.

     SEC. 4004. REGISTRATION OF AGENTS OF FOREIGN MANUFACTURERS 
                   AUTHORIZED TO ACCEPT SERVICE OF PROCESS IN THE 
                   UNITED STATES.

       (a) Registration.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act and except as otherwise provided in 
     this subsection, the head of each applicable agency shall 
     require foreign manufacturers and producers of covered 
     products distributed in commerce to establish a registered 
     agent in the United States who is authorized to accept 
     service of process on behalf of such manufacturer or 
     producer--
       (A) for the purpose of any civil or regulatory proceeding 
     in State or Federal court relating--
       (i) to a covered product; and
       (ii) to--

       (I) commerce in the United States;
       (II) an injury or damage suffered in the United States; or
       (III) conduct within the United States; and

       (B) if such service is made in accord with the State or 
     Federal rules for service of process in the State of the 
     civil or regulatory proceeding.
       (2) Location.--The head of each applicable agency shall 
     require that an agent of a foreign manufacturer or producer 
     registered under this subsection with respect to a covered 
     product be located in a State with a substantial connection 
     to the importation, distribution, or sale of the covered 
     product.
       (3) Minimum size.--This subsection shall only apply to 
     foreign manufacturers and producers that manufacture or 
     produce covered products in excess of a minimum value or 
     quantity the head of the applicable agency shall prescribe by 
     rule for purposes of this section. Such rules may include 
     different minimum values or quantities for different 
     subcategories of covered products prescribed by the head of 
     the applicable agency for purposes of this section.
       (b) Registry of Agents of Foreign Manufacturers.--
       (1) In general.--The Secretary of Commerce shall, in 
     cooperation with each head of an applicable agency, establish 
     and keep up to date a registry of agents registered under 
     subsection (a).
       (2) Availability.--The Secretary of Commerce shall make the 
     registry established under paragraph (1) available--
       (A) to the public through the Internet website of the 
     Department of Commerce; and
       (B) to the Commissioner of U.S. Customs and Border 
     Protection.
       (c) Consent to Jurisdiction.--A foreign manufacturer or 
     producer of covered products that registers an agent under 
     this section thereby consents to the personal jurisdiction of 
     the State or Federal courts of the State in which the 
     registered agent is located for the purpose of any civil or 
     regulatory proceeding relating--
       (1) to a covered product; and
       (2) to--
       (A) commerce in the United States;
       (B) an injury or damage suffered in the United States; or
       (C) conduct within the United States.
       (d) Declarations.--
       (1) In general.--Not later than 180 days after the date of 
     the enactment of this Act, any person importing a covered 
     product manufactured outside the United States shall provide 
     a declaration to U.S. Customs and Border Protection that--
       (A) the person has made appropriate inquiry, including 
     seeking appropriate documentation from the exporter of the 
     covered product and consulting the registry of agents of 
     foreign manufacturers described in subsection (b); and
       (B) to the best of the person's knowledge, with respect to 
     each importation of a covered product, the foreign 
     manufacturer or producer of the product has established a 
     registered agent in the United States as required under 
     subsection (a).
       (2) Penalties.--Any person who fails to provide a 
     declaration required under paragraph (1), or files a false 
     declaration, shall be subject to any applicable civil or 
     criminal penalty, including seizure and forfeiture, that may 
     be imposed under the customs laws of the United States or 
     title 18, United States Code, with respect to the importation 
     of a covered product.
       (e) Regulations.--Not later than the date described in 
     subsection (a)(1), the Secretary of Commerce, the 
     Commissioner of U.S. Customs and Border Protection, and each 
     head of an applicable agency shall prescribe regulations to 
     carry out this section, including the establishment of 
     minimum values and quantities under subsection (a)(3).

[[Page S5623]]

     SEC. 4005. STUDY ON REGISTRATION OF AGENTS OF FOREIGN FOOD 
                   PRODUCERS AUTHORIZED TO ACCEPT SERVICE OF 
                   PROCESS IN THE UNITED STATES.

       Not later than 1 year after the date of the enactment of 
     this Act, the Secretary of Agriculture and the Commissioner 
     of Food and Drugs shall jointly--
       (1) complete a study on the feasibility and advisability of 
     requiring foreign producers of food distributed in commerce 
     to establish a registered agent in the United States who is 
     authorized to accept service of process on behalf of such 
     producers for the purpose of all civil and regulatory actions 
     in State and Federal courts; and
       (2) submit to Congress a report on the findings of the 
     Secretary with respect to such study.

     SEC. 4006. STUDY ON REGISTRATION OF AGENTS OF FOREIGN 
                   MANUFACTURERS AND PRODUCERS OF COMPONENT PARTS 
                   WITHIN COVERED PRODUCTS.

       Not later than 1 year after the date of the enactment of 
     this Act, the head of each applicable agency shall--
       (1) complete a study on determining feasible and advisable 
     methods of requiring manufacturers or producers of component 
     parts within covered products manufactured or produced 
     outside the United States and distributed in commerce to 
     establish registered agents in the United States who are 
     authorized to accept service of process on behalf of such 
     manufacturers or producers for the purpose of all civil and 
     regulatory actions in State and Federal courts; and
       (2) submit to Congress a report on the findings of the head 
     of the applicable agency with respect to the study.

     SEC. 4007. RELATIONSHIP WITH OTHER LAWS.

       Nothing in this title shall affect the authority of any 
     State to establish or continue in effect a provision of State 
     law relating to service of process or personal jurisdiction, 
     except to the extent that such provision of law is 
     inconsistent with the provisions of this title, and then only 
     to the extent of such inconsistency.
                                 ______
                                 
  SA 4419. Mr. BURRIS submitted an amendment intended to be proposed to 
amendment SA 4402 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end of part IV of subtitle C of title I, add the 
     following:

     SEC. 1348. SECTION 8(A) IMPROVEMENTS.

       (a) Programs for Socially and Economically Disadvantaged 
     Small Business Concerns.--
       (1) Net worth threshold.--
       (A) In general.--Section 8(a)(6)(A) of the Small Business 
     Act (15 U.S.C. 637(a)(6)(A)) is amended--
       (i) by inserting ``(i)'' after ``(6)(A)'';
       (ii) by striking ``In determining the degree of diminished 
     credit'' and inserting the following:
       ``(ii)(I) In determining the degree of diminished credit'';
       (iii) by striking ``In determining the economic 
     disadvantage'' and inserting the following:
       ``(iii) In determining the economic disadvantage''; and
       (iv) by inserting after clause (ii)(I), as so designated by 
     this paragraph, the following:
       ``(II)(aa) Not later than 1 year after the date of 
     enactment of the Section 8(a) Improvements Act of 2010, the 
     Administrator shall--
       ``(AA) assign each North American Industry Classification 
     System industry code to a category described in item (cc); 
     and
       ``(BB) for each category described in item (cc), establish 
     a maximum net worth for the socially disadvantaged 
     individuals who own or control small business concerns in the 
     category that participate in the program under this 
     subsection.
       ``(bb) The maximum net worth for a category described in 
     item (cc) shall be not less than $2,500,000.
       ``(cc) The categories described in this item are--
       ``(AA) manufacturing;
       ``(BB) construction;
       ``(CC) professional services; and
       ``(DD) general services.
       ``(III) The Administrator shall establish procedures that--
       ``(aa) account for inflationary adjustments to, and include 
     a reasonable assumption of, the average income and net worth 
     of the owners of business concerns that are dominant in the 
     field of operation of the business concern; and
       ``(bb) require an annual inflationary adjustment to the 
     average income and maximum net worth requirements under this 
     clause.
       ``(IV) In determining the assets and net worth of a 
     socially disadvantaged individual under this subparagraph, 
     the Administrator shall not consider any assets of the 
     individual that are held in a qualified retirement plan, as 
     that term is defined in section 4974(c) of the Internal 
     Revenue Code of 1986.''.
       (B) Temporary inflationary adjustment.--
       (i) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Administrator shall modify the net 
     worth limitations established by the Administrator for 
     purposes of the program under section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)) by adjusting the amount of 
     the net worth limitations for inflation during the period 
     beginning on the date on which the Administrator established 
     the net worth limitations and the date of enactment of this 
     Act.
       (ii) Termination.--The Administrator shall apply the net 
     worth limitations established under clause (i) until the 
     effective date of the net worth limitations established by 
     the Administrator under clause (ii)(II) of section 8(a)(6)(A) 
     of the Small Business Act (15 U.S.C. 637(a)(6)(A)), as added 
     by this paragraph.
       (2) Transition period.--Section 7(j)(15) of the Small 
     Business Act (15 U.S.C. 636(j)(15)) is amended--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (B) by striking ``Subject to'' and inserting ``(A) Except 
     as provided in subparagraph (B), and subject to''; and
       (C) by adding at the end the following:
       ``(B)(i) A small business concern may receive developmental 
     assistance under the Program and contracts under section 8(a) 
     during the 3-year period beginning on the date on which the 
     small business concern graduates--
       ``(I) because the small business concern has participated 
     in the Program for the total period authorized under 
     subparagraph (A); or
       ``(II) under section 8(a)(6)(C)(ii), because the socially 
     disadvantaged individuals who own or control the small 
     business concern have a net worth that is more than the 
     maximum net worth established by the Administrator.
       ``(ii) After the end of the 3-year period described in 
     clause (i), a small business concern described in clause 
     (i)--
       ``(I) may not receive developmental assistance under the 
     Program or contracts under section 8(a); and
       ``(II) may continue to perform and receive payment under a 
     contract received by the small business concern under section 
     8(a) before the end of the period, under the terms of the 
     contract.''.
       (3) GAO study.--Section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)) is amended by adding at the end the following:
       ``(22) Review of Effectiveness.--
       ``(A) GAO study.--Not later than 5 years after the date of 
     enactment of this paragraph, and every 5 years thereafter, 
     the Comptroller General of the United States shall--
       ``(i) conduct an evaluation of the effectiveness of the 
     program under this subsection, including an examination of--
       ``(I) the number and size of contracts applied for, as 
     compared to the number received by, small business concerns 
     after successfully completing the program;
       ``(II) the percentage of small business concerns that 
     continue to operate during the 3-year period beginning on the 
     date on which the small business concerns successfully 
     complete the program;
       ``(III) whether the business of small business concerns 
     increases during the 3-year period beginning on the date on 
     which the small business concerns successfully complete the 
     program; and
       ``(IV) the number of training sessions offered under the 
     program; and
       ``(ii) 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 
     each evaluation under clause (i).
       ``(B) SBA report.--Not later than 1 year after the date of 
     enactment of this paragraph, and every year thereafter, the 
     Administrator 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 evaluating 
     the program under this section, including an assessment of--
       ``(i) the regulations promulgated to carry out the program;
       ``(ii) online training under the program; and
       ``(iii) whether the structure of the program is conducive 
     to business development.''.
       (b) Surety Bond Pilot Program.--
       (1) Definitions.--In this subsection--
       (A) the terms ``bid bond'', ``payment bond'', ``performance 
     bond'', and ``surety'' have the meanings given those terms in 
     section 410 of the Small Business Investment Act of 1958 (15 
     U.S.C. 694a);
       (B) the term ``Board'' means the pilot program advisory 
     board established under paragraph (4)(A);
       (C) the term ``eligible small business concern'' means a 
     socially and economically disadvantaged small business 
     concern that is participating in the program under section 
     8(a) of the Small Business Act (15 U.S.C. 637(a));
       (D) the term ``Fund'' means the Small Business Surety Bond 
     Pilot Program Fund established under paragraph (5)(A);
       (E) the term ``graduated'' has the meaning given that term 
     in section 7(j)(10)(H) of the Small Business Act (15 U.S.C. 
     636(j)(10)(H));
       (F) the term ``pilot program'' means the surety bond pilot 
     program established under paragraph (2)(A); and
       (G) the term ``socially and economically disadvantaged 
     small business concern'' has

[[Page S5624]]

     the meaning given that term in section 8(a) of the Small 
     Business Act (15 U.S.C. 637(a)).
       (2) Program.--
       (A) In general.--The Administrator shall establish a surety 
     bond pilot program under which the Administrator may 
     guarantee any surety against loss resulting from a breach of 
     the terms of a bid bond, payment bond, performance bond, or 
     bonds ancillary thereto, by an eligible small business 
     concern.
       (B) Guarantee percentage.--A guarantee under the pilot 
     program shall obligate the Administration to pay to a surety 
     90 percent of the loss incurred and paid by the surety.
       (C) Application.--An eligible small business concern 
     desiring a guarantee under the pilot program shall submit an 
     application at such time, in such manner, and accompanied by 
     such information as the Administrator may require.
       (D) Review.--A surety desiring a guarantee under the pilot 
     program against loss resulting from a breach of the terms of 
     a bid bond, payment bond, performance bond, or bonds 
     ancillary thereto by an eligible small business concern 
     shall--
       (i) submit to the Administrator a report evaluating whether 
     the eligible small business concern meets such criteria as 
     the Administrator may establish relating to whether a bond 
     should be issued to the eligible small business concern; and
       (ii) if the Administrator does not guarantee the surety 
     against loss, submit an update of the report described in 
     clause (i) every 6 months.
       (3) Technical assistance and educational training.--
       (A) In general.--The Administrator shall provide technical 
     assistance and educational training to an eligible small 
     business concern participating in the pilot program or 
     desiring to participate in the pilot program for a period of 
     not less than 3 years, to promote the growth of the eligible 
     small business concern and assist the eligible small business 
     concern in promoting job development.
       (B) Topics.--
       (i) Technical assistance.--The technical assistance under 
     subparagraph (A) shall include assistance relating to--

       (I) scheduling of employees;
       (II) cash flow analysis;
       (III) change orders;
       (IV) requisition preparation;
       (V) submitting proposals;
       (VI) dispute resolution; and
       (VII) contract management.

       (ii) Educational training.--The educational training under 
     subparagraph (A) shall include training regarding--

       (I) accounting;
       (II) legal issues;
       (III) infrastructure;
       (IV) human resources;
       (V) estimating costs;
       (VI) scheduling; and
       (VII) any other area the Administrator determines is a key 
     area for which training is needed for eligible small business 
     concerns.

       (4) Panel.--
       (A) Establishment.--The Administrator shall establish a 
     pilot program advisory board to evaluate and make 
     recommendations regarding the pilot program.
       (B) Membership.--The Board shall be composed of 5 members--
       (i) who shall be appointed by the Administrator;
       (ii) not less than 2 of whom shall have graduated from the 
     program under section 8(a) of the Small Business Act (15 
     U.S.C. 637(a)); and
       (iii) not more than 1 of whom may be an officer or employee 
     of the Administration.
       (C) Duties.--The Board shall--
       (i) evaluate and make recommendations to the Administrator 
     regarding the effectiveness of the pilot program;
       (ii) make recommendations to the Administrator regarding 
     performance measures to evaluate eligible small business 
     concerns applying for a guarantee under the pilot program; 
     and
       (iii) not later than 90 days after the date on which all 
     members of the Board are appointed, and every year thereafter 
     until the authority to carry out the pilot program terminates 
     under paragraph (6), 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 activities of the Board.
       (5) Fund.--
       (A) Establishment of fund.--There is established in the 
     Treasury of the United States a revolving fund to be known as 
     the ``Small Business Surety Bond Pilot Program Fund'', to be 
     administered by the Administrator.
       (B) Availability.--Amounts in the Fund shall be available 
     without fiscal year limitation or further appropriation by 
     Congress.
       (C) Authorization of appropriations.--There is authorized 
     to be appropriated to the Fund $20,000,000.
       (D) Rescission.--Effective on the day after the date on 
     which the term of all guarantees made under the pilot program 
     have ended, all amounts in the Fund are rescinded.
       (6) Termination.--The Administrator may not guarantee a 
     surety against loss under the pilot program on or after the 
     date that is 7 years after the date the date on which the 
     Administrator makes the first guarantee under the pilot 
     program.
                                 ______
                                 
  SA 4420. Mr. DODD (for himself, Mr. Cochran, and Ms. Mikulski) 
submitted an amendment intended to be proposed to amendment SA 4402 
proposed by Mr. Reid (for Mr. Baucus) to the bill H.R. 5297, to create 
the Small Business Lending Fund Program to direct the Secretary of the 
Treasury to make capital investments in eligible institutions in order 
to increase the availability of credit for small businesses, to amend 
the Internal Revenue Code of 1986 to provide tax incentives for small 
business job creation, and for other purposes; which was ordered to lie 
on the table; as follows:

       On page __, line __, insert the following:

     SEC. __. EXCLUSION FROM GROSS INCOME OF AMERICORPS 
                   EDUCATIONAL AWARDS.

       (a) In General.--Section 117 of the Internal Revenue Code 
     of 1986 (relating to qualified scholarships) is amended by 
     adding at the end the following:
       ``(e) AmeriCorps Educational Awards.--Gross income shall 
     not include any national service educational award described 
     in subtitle D of title I of the National and Community 
     Service Act of 1990 (42 U.S.C. 12601 et seq.).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years ending after the date of 
     enactment of this Act.
                                 ______
                                 
  SA 4421. Mr. CASEY submitted an amendment intended to be proposed to 
amendment SA 4402 proposed by Mr. Reid (for Mr. Baucus) to the bill 
H.R. 5297, to create the Small Business Lending Fund Program to direct 
the Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. STUDY BY COMPTROLLER GENERAL.

       (a) Definitions.--In this Act--
       (1) the terms ``HUBZone small business concern'', ``small 
     business concern'', ``small business concern owned and 
     controlled by service-disabled veterans'', and ``small 
     business concern owned and controlled by women'' have the 
     meaning given those terms under section 3 of the Small 
     Business Act (15 U.S.C. 632);
       (2) the term ``minority business enterprise'' means a small 
     business concern that is unconditionally owned, controlled, 
     and managed by an individual who is--
       (A) a Black American;
       (B) a Hispanic American;
       (C) a Native American, including an American Indian, 
     Eskimo, Aleut, or Native Hawaiian;
       (D) an Asian Pacific American, including an individual 
     having origins in any of the original peoples of Myanmar, 
     Thailand, Malaysia, Indonesia, Singapore, Brunei, Japan, 
     China (including Hong Kong), Taiwan, Laos, Cambodia 
     (Kampuchea), Vietnam, North Korea, South Korea, the 
     Philippines, a United States Trust Territory of the Pacific 
     Islands (including the Republic of Palau), the Republic of 
     the Marshall Islands, the Federated States of Micronesia, the 
     Commonwealth of the Northern Mariana Islands, Guam, Samoa, 
     Macao, Fiji, Tonga, Kiribati, Tuvalu, or Nauru;
       (E) a Subcontinent Asian American, including an individual 
     having origins in any of the original peoples of India, 
     Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives 
     Islands, or Nepal; or
       (F) a member of another minority group, as determined by 
     the Administrator of the Small Business Administration;
       (3) the term ``qualified HUBZone small business concern'' 
     means a HUBZone small business concern that is qualified 
     under section 3(p)(5) of the Small Business Act (15 U.S.C. 
     632(p)(5)); and
       (4) the term ``small business concern owned and controlled 
     by socially and economically disadvantaged individuals'' has 
     the meaning given that term in section 8(d)(3)(C) of the 
     Small Business Act (15 U.S.C. 637(d)(3)(C)).
       (b) Study Required.--The Comptroller General of the United 
     States shall carry out a study on the participation of small 
     business concerns owned and controlled by socially and 
     economically disadvantaged individuals, qualified HUBZone 
     small business concerns, minority business enterprises, and 
     small business concerns owned and controlled by women in 
     procurement contracts awarded using funds made available 
     under division A of the American Recovery and Reinvestment 
     Act of 2009 (Public Law 111-5; 123 Stat. 116), which shall 
     include--
       (1) determining the percentage of all contracts awarded by 
     Federal agencies and departments using funds made available 
     under the American Recovery and Reinvestment Act of 2009 
     (Public Law 111-5) that were awarded to--
       (A) small business concerns owned and controlled by 
     socially and economically disadvantaged individuals;
       (B) minority business enterprises;
       (C) small business concerns owned and controlled by women; 
     and
       (D) qualified HUBZone small business concerns; and

[[Page S5625]]

       (2) evaluating whether Federal agencies and departments 
     have met the Government-wide goals established under section 
     15(g) of the Small Business Act (15 U.S.C. 644(g)) for 
     procurement contracts awarded to small business concerns, 
     small business concerns owned and controlled by service-
     disabled veterans, qualified HUBZone small business concerns, 
     small business concerns owned and controlled by socially and 
     economically disadvantaged individuals, and small business 
     concerns owned and controlled by women, with respect to 
     procurement contracts awarded using funds made available 
     under division A of the American Recovery and Reinvestment 
     Act of 2009 (Public Law 111-5; 123 Stat. 116).
       (c) Report.--Not later than 120 days after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the results of the study required 
     under subsection (b).
                                 ______
                                 
  SA 4422. Mr. TESTER submitted an amendment intended to be proposed by 
him to the bill H.R. 5297, to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes; which was ordered to lie on the 
table; as follows:

       On page _, between lines _ and _, insert the following:

     SEC. __. GAO REPORT ON POTENTIAL BARRIERS TO ENTRY IN FEDERAL 
                   CONTRACTING.

       (a) Covered Agency.--In this section, the term ``covered 
     agency'' means--
       (1) the General Services Administration;
       (2) the Army Corps of Engineers; and
       (3) the Department of Homeland Security.
       (b) Study.--The Comptroller General of the United States 
     shall conduct a study examining selected instances in which 
     covered agencies have entered into contracts using previous 
     experience or past performance under Federal contracts as 
     source selection evaluation criteria.
       (c) Report.--
       (1) In general.--Not later than 270 days after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit to Congress a report on the study conducted under 
     subsection (b).
       (2) Content.--The report required under paragraph (1) shall 
     include the following:
       (A) A description of the circumstances under which covered 
     agencies entered into contracts using previous experience or 
     past performance under Federal contracts as source selection 
     evaluation criteria.
       (B) A description of the weights assigned to these 
     evaluation factors as compared to all other evaluation 
     factors, including cost.
       (C) An assessment of whether the use of previous experience 
     or past performance as evaluation criteria is more or less 
     prevalent depending on the type of item or service the agency 
     acquires.
       (D) The views of agency officials, acquisition experts, and 
     affected stakeholders on the benefits and challenges of using 
     previous experience or past performance as evaluation 
     criteria, including the impact on small business concerns.
       (3) Contracts covered.--The report required under paragraph 
     (1) shall include information on the awarding of contracts 
     using full and open competition and other types of 
     competitive procedures.
                                 ______
                                 
  SA 4423. Mrs. SHAHEEN (for herself and Mr. Cochran) submitted an 
amendment intended to be proposed by her to the bill H.R. 5297, to 
create the Small Business Lending Fund Program to direct the Secretary 
of the Treasury to make capital investments in eligible institutions in 
order to increase the availability of credit for small businesses, to 
amend the Internal Revenue Code of 1986 to provide tax incentives for 
small business job creation, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end of title IV, insert the following:

     SECTION __. ON-THE-JOB TRAINING.

       (a) Short Title.--This section may be cited as the ``On-
     the-Job Training Act of 2010''.
       (b) Training.--
       (1) In general.--Subtitle D of title I of the Workforce 
     Investment Act of 1998 is amended by inserting after section 
     173A (29 U.S.C. 2918a) the following:

     ``SEC. 173B. ON-THE-JOB TRAINING.

       ``(a) Definition.--In this section, the term `federally 
     recognized tribal organization' means an entity described in 
     section 166(c)(1).
       ``(b) Grants.--From the amount made available under 
     subsection (g), and subject to subsection (d)--
       ``(1) the Secretary shall make grants on a discretionary 
     basis to local areas, for adult on-the-job training, or 
     dislocated worker on-the-job-training, carried out under 
     section 134; and
       ``(2) using an amount that is not more than 10 percent of 
     the funds made available under subsection (g), the Secretary 
     shall make grants to States, local boards, and federally 
     recognized tribal organizations for developing on-the-job 
     training programs, in consultation with the Secretary.
       ``(c) Application.--To be eligible to receive a grant under 
     subsection (b), a State, local board, or federally recognized 
     tribal organization shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require. In preparing such 
     an application for a grant under subsection (b)(1), a local 
     board shall consult with the corresponding State.
       ``(d) Reimbursement of Wage Rates.--Notwithstanding the 
     limitation in section 101(31)(B), in making the grants 
     described in subsection (b)(1) the Secretary may allow for 
     higher levels of reimbursement of wage rates the Secretary 
     determines are appropriate based on factors such as--
       ``(1) employer size, in order to facilitate the 
     participation of small- and medium-sized employers;
       ``(2) target populations, in order to enhance job creation 
     for persons with barriers to employment; and
       ``(3) the number of employees that will participate in the 
     on-the-job training, the wage and benefit levels of the 
     employees (before the training and anticipated on completion 
     of the training), the relationship of the training to the 
     competitiveness of the employer and employees, and the 
     existence of other employer-provided training and advancement 
     opportunities.
       ``(e) Administration.--The Secretary may use an amount that 
     is not more than 1 percent of the funds made available under 
     subsection (g) for the administration, management, and 
     oversight of the programs, activities, and grants, funded 
     under subsection (b), including the evaluation of, and 
     dissemination of information on lessons learned through, the 
     use of such funds.
       ``(f) Rule of Construction.--Nothing in this section shall 
     be construed to affect the manner in which subtitle B is 
     implemented, for activities funded through amounts 
     appropriated under section 137.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section such sums as may 
     be necessary for fiscal year 2011 and each subsequent fiscal 
     year.''.
       (2) Table of contents.--The table of contents in section 
     1(b) of the Workforce Investment Act of 1998 is amended by 
     inserting after the item relating to section 173A the 
     following:

``Sec. 173B. On-the-job training.''.
                                 ______
                                 
  SA 4424. Mr. WEBB (for himself and Mrs. Boxer) submitted an amendment 
intended to be proposed to amendment SA 4402 proposed by Mr. Reid (for 
Mr. Baucus (for himself, Ms. Landrieu, and Mr. Reid)) to the bill H.R. 
5297, to create the Small Business Lending Fund Program to direct the 
Secretary of the Treasury to make capital investments in eligible 
institutions in order to increase the availability of credit for small 
businesses, to amend the Internal Revenue Code of 1986 to provide tax 
incentives for small business job creation, and for other purposes; 
which was ordered to lie on the table; as follows:

       At the end, insert the following:

                    TITLE IV--TAXPAYER FAIRNESS ACT

     SEC. 4001. SHORT TITLE.

       This title may be cited as the ``Taxpayer Fairness Act''.

     SEC. 4002. FINDINGS.

       Congress finds the following:
       (1) During the years 2008 and 2009, the Nation's largest 
     financial firms received extraordinary and unprecedented 
     assistance from the public.
       (2) Such assistance was critical to the success and in many 
     cases the survival of these firms during the year 2009.
       (3) High earners at such firms should contribute a portion 
     of any excessive bonuses obtained for the year 2009 to help 
     the Nation reduce the public debt and recover from the 
     recession.

     SEC. 4003. EXCISE TAXES ON EXCESSIVE 2009 BONUSES RECEIVED 
                   FROM MAJOR RECIPIENTS OF FEDERAL EMERGENCY 
                   ECONOMIC ASSISTANCE.

       (a) Imposition of Tax.--Chapter 46 of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new section:

     ``SEC. 4999A. EXCESSIVE 2009 BONUSES RECEIVED FROM MAJOR 
                   RECIPIENTS OF FEDERAL EMERGENCY ECONOMIC 
                   ASSISTANCE.

       ``(a) Imposition of Tax.--There is hereby imposed on any 
     person who receives a covered excessive 2009 bonus a tax 
     equal to 50 percent of the amount of such bonus.
       ``(b) Definition.--For purposes of this section, the term 
     `covered excessive 2009 bonus' has the meaning given such 
     term by section 280I(b).
       ``(c) Administrative Provisions and Special Rules.--
       ``(1) Withholding.--
       ``(A) In general.--In the case of any covered excessive 
     2009 bonus which is treated as wages for purposes of section 
     3402, the amount otherwise required to be deducted and 
     withheld under such section shall be increased by the amount 
     of the tax imposed by this section on such bonus.
       ``(B) Bonuses paid before enactment.--In the case of any 
     covered excessive 2009 bonus to which subparagraph (A) 
     applies which is

[[Page S5626]]

     paid before the date of the enactment of this section, no 
     penalty, addition to tax, or interest shall be imposed with 
     respect to any failure to deduct and withhold the tax imposed 
     by this section on such bonus.
       ``(2) Treatment of tax.--For purposes of subtitle F, any 
     tax imposed by this section shall be treated as a tax imposed 
     by subtitle A.
       ``(3) Notice requirements.--The Secretary shall require 
     each major Federal emergency economic assistance recipient 
     (as defined in section 280I(d)(1)) to notify, as soon as 
     practicable after the date of the enactment of this section 
     and at such other times as the Secretary determines 
     appropriate, the Secretary and each covered employee (as 
     defined in section 280I(e)) of the amount of covered 
     excessive 2009 bonuses to which this section applies and the 
     amount of tax deducted and withheld on such bonuses.
       ``(4) Secretarial authority.--The Secretary may prescribe 
     such regulations, rules, and guidance of general 
     applicability as may be necessary to carry out the provisions 
     of this section, including--
       ``(A) to prescribe the due date and manner of payment of 
     the tax imposed by this section with respect to any covered 
     excessive 2009 bonus paid before the date of the enactment of 
     this section, and
       ``(B) to prevent--
       ``(i) the recharacterization of a bonus payment as a 
     payment which is not a bonus payment in order to avoid the 
     purposes of this section,
       ``(ii) the treatment as other than an additional 2009 bonus 
     payment of any payment of increased wages or other payments 
     to a covered employee who receives a bonus payment subject to 
     this section in order to reimburse such covered employee for 
     the tax imposed by this section with regard to such bonus, or
       ``(iii) the avoidance of the purposes of this section 
     through the use of partnerships or other pass-thru 
     entities.''.
       (b) Clerical Amendments.--
       (1) The heading and table of sections for chapter 46 of the 
     Internal Revenue Code of 1986 are amended to read as follows:

         ``Chapter 46--Taxes on Certain Excessive Remuneration

``Sec. 4999. Golden parachute payments.
``Sec. 4999A. Excessive 2009 bonuses received from major recipients of 
              Federal emergency economic assistance.''.

       (2) The item relating to chapter 46 in the table of 
     chapters for subtitle D of such Code is amended to read as 
     follows:

``Chapter 46. Taxes on certain excessive remuneration.''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to payments of covered excessive 2009 bonuses 
     after December 31, 2008, in taxable years ending after such 
     date.

     SEC. 4004. LIMITATION ON DEDUCTION OF AMOUNTS PAID AS 
                   EXCESSIVE 2009 BONUSES BY MAJOR RECIPIENTS OF 
                   FEDERAL EMERGENCY ECONOMIC ASSISTANCE.

       (a) In General.--Part IX of subchapter B of chapter 1 of 
     the Internal Revenue Code of 1986 is amended by adding at the 
     end the following new section:

     ``SEC. 280I. EXCESSIVE 2009 BONUSES PAID BY MAJOR RECIPIENTS 
                   OF FEDERAL EMERGENCY ECONOMIC ASSISTANCE.

       ``(a) General Rule.--The deduction allowed under this 
     chapter with respect to the amount of any covered excessive 
     2009 bonus shall not exceed 50 percent of the amount of such 
     bonus.
       ``(b) Covered Excessive 2009 Bonus.--For purposes of this 
     section, the term `covered excessive 2009 bonus' means any 
     2009 bonus payment paid during any calendar year to a covered 
     employee by any major Federal emergency economic assistance 
     recipient, to the extent that the aggregate of such 2009 
     bonus payments (without regard to the date on which such 
     payments are paid) with respect to such employee exceeds the 
     dollar amount of the compensation received by the President 
     under section 102 of title 3, United States Code, for 
     calendar year 2009.
       ``(c) 2009 Bonus Payment.--
       ``(1) In general.--The term `2009 bonus payment' means any 
     payment which--
       ``(A) is a payment for services rendered,
       ``(B) is in addition to any amount payable to a covered 
     employee for services performed by such covered employee at a 
     regular hourly, daily, weekly, monthly, or similar periodic 
     rate,
       ``(C) in the case of a retention bonus, is paid for 
     continued service during calendar year 2009 or 2010, and
       ``(D) in the case of a payment not described in 
     subparagraph (C), is attributable to services performed by a 
     covered employee during calendar year 2009 (without regard to 
     the year in which such payment is paid).

     Such term does not include payments to an employee as 
     commissions, contributions to any qualified retirement plan 
     (as defined in section 4974(c)), welfare and fringe benefits, 
     overtime pay, or expense reimbursements. In the case of a 
     payment which is attributable to services performed during 
     multiple calendar years, such payment shall be treated as a 
     2009 bonus payment to the extent it is attributable to 
     services performed during calendar year 2009.
       ``(2) Deferred deduction bonus payments.--
       ``(A) In general.--The term `2009 bonus payment' includes 
     payments attributable to services performed in 2009 which are 
     paid in the form of remuneration (within the meaning of 
     section 162(m)(4)(E)) for which the deduction under this 
     chapter (determined without regard to this section) for such 
     payment is allowable in a subsequent taxable year.
       ``(B) Timing of deferred deduction bonus payments.--For 
     purposes of this section and section 4999A, the amount of any 
     payment described in subparagraph (A) (as determined in the 
     year in which the deduction under this chapter, determined 
     without regard to this section, for such payment would be 
     allowable) shall be treated as having been made in the 
     calendar year in which any interest in such amount is granted 
     to a covered employee (without regard to the date on which 
     any portion of such interest vests).
       ``(3) Retention bonus.--The term `retention bonus' means 
     any bonus payment (without regard to the date such payment is 
     paid) to a covered employee which--
       ``(A) is contingent on the completion of a period of 
     service with a major Federal emergency economic assistance 
     recipient, the completion of a specific project or other 
     activity for the major Federal emergency economic assistance 
     recipient, or such other circumstances as the Secretary may 
     prescribe, and
       ``(B) is not based on the performance of the covered 
     employee (other than a requirement that the employee not be 
     separated from employment for cause).

     A bonus payment shall not be treated as based on performance 
     for purposes of subparagraph (B) solely because the amount of 
     the payment is determined by reference to a previous bonus 
     payment which was based on performance.
       ``(d) Major Federal Emergency Economic Assistance 
     Recipient.--For purposes of this section--
       ``(1) In general.--The term `major Federal emergency 
     economic assistance recipient' means--
       ``(A) any financial institution (within the meaning of 
     section 3 of the Emergency Economic Stabilization Act of 
     2008) if at any time after December 31, 2007, the Federal 
     Government acquires--
       ``(i) an equity interest in such person pursuant to a 
     program authorized by the Emergency Economic Stabilization 
     Act of 2008 or the third undesignated paragraph of section 13 
     of the Federal Reserve Act (12 U.S.C. 343), or
       ``(ii) any warrant (or other right) to acquire any equity 
     interest with respect to such person pursuant to any such 
     program,

     but only if the total value of the equity interest described 
     in clauses (i) and (ii) in such person is not less than 
     $5,000,000,000,
       ``(B) the Federal National Mortgage Association and the 
     Federal Home Loan Mortgage Corporation, and
       ``(C) any person which is a member of the same affiliated 
     group (as defined in section 1504, determined without regard 
     to subsection (b) thereof) as a person described in 
     subparagraph (A) or (B).
       ``(2) Treatment of controlled groups.--All persons treated 
     as a single employer under subsection (a) or (b) of section 
     52 or subsection (m) or (o) of section 414 shall be treated 
     as a single employer with respect to any covered employee.
       ``(e) Covered Employee.--For purposes of this section, the 
     term `covered employee' means, with respect to any major 
     Federal emergency economic assistance recipient--
       ``(1) any employee of such recipient, and
       ``(2) any director of such recipient who is not an 
     employee.

     In the case of any major Federal emergency economic 
     assistance recipient which is a partnership or other 
     unincorporated trade or business, the term `employee' shall 
     include employees of such recipient within the meaning of 
     section 401(c)(1).
       ``(f) Regulations.--The Secretary may prescribe such 
     regulations, rules, and guidance of general applicability as 
     may be necessary to carry out the provisions of this section, 
     including--
       ``(1) to prescribe the due date and manner of reporting and 
     payment of any increase in the tax imposed by this chapter 
     due to the application of this section to any covered 
     excessive 2009 bonus paid before the date of the enactment of 
     this section, and
       ``(2) to prevent--
       ``(A) the recharacterization of a bonus payment as a 
     payment which is not a bonus payment in order to avoid the 
     purposes of this section, or
       ``(B) the avoidance of the purposes of this section through 
     the use of partnerships or other pass-thru entities.''.
       (b) Clerical Amendment.--The table of sections for part IX 
     of subchapter B of chapter 1 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new item:

``Sec. 280I. Excessive 2009 bonuses paid by major recipients of Federal 
              emergency economic assistance.''.

       (c) Conforming Amendments.--
       (1) Subparagraph (F) of section 162(m)(4) of the Internal 
     Revenue Code of 1986 is amended--
       (A) by inserting ``and excessive 2009 bonuses'' after 
     ``payments'' in the heading,
       (B) by striking ``the amount'' and inserting ``the total 
     amounts'', and
       (C) by inserting ``or 280I'' before the period.
       (2) Subparagraph (A) of section 3121(v)(2) of such Code is 
     amended by inserting ``, to any covered excessive 2009 bonus 
     (as defined in section 280I(b)),'' after ``section 
     280G(b))''.

[[Page S5627]]

       (d) Effective Date.--The amendments made by this section 
     shall apply to payments of covered excessive 2009 bonuses 
     after December 31, 2008, in taxable years ending after such 
     date.
                                 ______
                                 
  SA 4425. Mr. REID proposed an amendment to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; as follows:

       In lieu of the matter proposed to be inserted, insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Unemployment Compensation 
     Extension Act of 2010''.

     SEC. 2. EXTENSION OF UNEMPLOYMENT INSURANCE PROVISIONS.

       (a) In General.--(1) Section 4007 of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (A) by striking ``June 2, 2010'' each place it appears and 
     inserting ``November 30, 2010'';
       (B) in the heading for subsection (b)(2), by striking 
     ``june 2, 2010'' and inserting ``november 30, 2010''; and
       (C) in subsection (b)(3), by striking ``November 6, 2010'' 
     and inserting ``April 30, 2011''.
       (2) Section 2005 of the Assistance for Unemployed Workers 
     and Struggling Families Act, as contained in Public Law 111-5 
     (26 U.S.C. 3304 note; 123 Stat. 444), is amended--
       (A) by striking ``June 2, 2010'' each place it appears and 
     inserting ``December 1, 2010''; and
       (B) in subsection (c), by striking ``November 6, 2010'' and 
     inserting ``May 1, 2011''.
       (3) Section 5 of the Unemployment Compensation Extension 
     Act of 2008 (Public Law 110-449; 26 U.S.C. 3304 note) is 
     amended by striking ``November 6, 2010'' and inserting 
     ``April 30, 2011''.
       (b) Funding.--Section 4004(e)(1) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended--
       (1) in subparagraph (D), by striking ``and'' at the end; 
     and
       (2) by inserting after subparagraph (E) the following:
       ``(F) the amendments made by section 2(a)(1) of the 
     Unemployment Compensation Extension Act of 2010; and''.
       (c) Conditions for Receiving Emergency Unemployment 
     Compensation.--Section 4001(d)(2) of the Supplemental 
     Appropriations Act, 2008 (Public Law 110-252; 26 U.S.C. 3304 
     note) is amended, in the matter preceding subparagraph (A), 
     by inserting before ``shall apply'' the following: 
     ``(including terms and conditions relating to availability 
     for work, active search for work, and refusal to accept 
     work)''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect as if included in the enactment of the 
     Continuing Extension Act of 2010 (Public Law 111-157).

     SEC. 3. COORDINATION OF EMERGENCY UNEMPLOYMENT COMPENSATION 
                   WITH REGULAR COMPENSATION.

       (a) Certain Individuals Not Ineligible by Reason of New 
     Entitlement to Regular Benefits.--Section 4002 of the 
     Supplemental Appropriations Act, 2008 (Public Law 110-252; 26 
     U.S.C. 3304 note) is amended by adding at the end the 
     following:
       ``(g) Coordination of Emergency Unemployment Compensation 
     With Regular Compensation.--
       ``(1) If--
       ``(A) an individual has been determined to be entitled to 
     emergency unemployment compensation with respect to a benefit 
     year,
       ``(B) that benefit year has expired,
       ``(C) that individual has remaining entitlement to 
     emergency unemployment compensation with respect to that 
     benefit year, and
       ``(D) that individual would qualify for a new benefit year 
     in which the weekly benefit amount of regular compensation is 
     at least either $100 or 25 percent less than the individual's 
     weekly benefit amount in the benefit year referred to in 
     subparagraph (A),
     then the State shall determine eligibility for compensation 
     as provided in paragraph (2).
       ``(2) For individuals described in paragraph (1), the State 
     shall determine whether the individual is to be paid 
     emergency unemployment compensation or regular compensation 
     for a week of unemployment using one of the following 
     methods:
       ``(A) The State shall, if permitted by State law, establish 
     a new benefit year, but defer the payment of regular 
     compensation with respect to that new benefit year until 
     exhaustion of all emergency unemployment compensation payable 
     with respect to the benefit year referred to in paragraph 
     (1)(A);
       ``(B) The State shall, if permitted by State law, defer the 
     establishment of a new benefit year (which uses all the wages 
     and employment which would have been used to establish a 
     benefit year but for the application of this paragraph), 
     until exhaustion of all emergency unemployment compensation 
     payable with respect to the benefit year referred to in 
     paragraph(1)(A);
       ``(C) The State shall pay, if permitted by State law--
       ``(i) regular compensation equal to the weekly benefit 
     amount established under the new benefit year, and
       ``(ii) emergency unemployment compensation equal to the 
     difference between that weekly benefit amount and the weekly 
     benefit amount for the expired benefit year; or
       ``(D) The State shall determine rights to emergency 
     unemployment compensation without regard to any rights to 
     regular compensation if the individual elects to not file a 
     claim for regular compensation under the new benefit year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals whose benefit years, as described 
     in section 4002(g)(1)(B) the Supplemental Appropriations Act, 
     2008 (Public Law 110-252; 26 U.S.C. 3304 note), as amended by 
     this section, expire after the date of enactment of this Act.

     SEC. 4. REQUIRING STATES TO NOT REDUCE REGULAR COMPENSATION 
                   IN ORDER TO BE ELIGIBLE FOR FUNDS UNDER THE 
                   EMERGENCY UNEMPLOYMENT COMPENSATION PROGRAM.

       Section 4001 of the Supplemental Appropriations Act, 2008 
     (Public Law 110-252; 26 U.S.C. 3304 note) is amended by 
     adding at the end the following new subsection:
       ``(g) Nonreduction Rule.--An agreement under this section 
     shall not apply (or shall cease to apply) with respect to a 
     State upon a determination by the Secretary that the method 
     governing the computation of regular compensation under the 
     State law of that State has been modified in a manner such 
     that--
       ``(1) the average weekly benefit amount of regular 
     compensation which will be payable during the period of the 
     agreement occurring on or after June 2, 2010 (determined 
     disregarding any additional amounts attributable to the 
     modification described in section 2002(b)(1) of the 
     Assistance for Unemployed Workers and Struggling Families 
     Act, as contained in Public Law 111-5 (26 U.S.C. 3304 note; 
     123 Stat. 438)), will be less than
       ``(2) the average weekly benefit amount of regular 
     compensation which would otherwise have been payable during 
     such period under the State law, as in effect on June 2, 
     2010.''.

     SEC. 5. EXTENSION OF HOMEBUYER CREDIT FOR CERTAIN PURCHASES 
                   PURSUANT TO BINDING CONTRACTS.

       (a) In General.--Paragraph (2) of section 36(h) of the 
     Internal Revenue Code of 1986 is amended by striking 
     ``paragraph (1) shall be applied by substituting `July 1, 
     2010' '' and inserting ``and who purchases such residence 
     before October 1, 2010, paragraph (1) shall be applied by 
     substituting `October 1, 2010' ''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     36(h)(3) of the Internal Revenue Code of 1986 is amended by 
     inserting ``and for `October 1, 2010' '' after ``for `July 1, 
     2010' ''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to residences purchased after June 30, 2010.

     SEC. 6. AMENDMENT OF TRAVEL PROMOTION ACT OF 2009.

       (a) Travel Promotion Fund Fees.--Section 217(h)(3)(B) of 
     the Immigration and Nationality Act (8 U.S.C. 1187(h)(3)(B)) 
     is amended--
       (1) by striking ``subsection (d) of section 11 of the 
     Travel Promotion Act of 2009.'' in clause (ii) and inserting 
     ``subsection (d) of the Travel Promotion Act of 2009 (22 
     U.S.C. 2131(d)).''; and
       (2) by striking ``September 30, 2014.'' in clause (iii) and 
     inserting ``September 30, 2015.''.
       (b) Implementation Beginning in Fiscal Year 2011.--
     Subsection (d) of the Travel Promotion Act of 2009 (22 U.S.C. 
     2131(d)) is amended--
       (1) by striking ``For fiscal year 2010, the'' in paragraph 
     (2)(A) and inserting ``The'';
       (2) by striking ``quarterly, beginning on January 1, 
     2010,'' in paragraph (2)(A) and inserting ``monthly, 
     immediately following the collection of fees under section 
     217(h)(3)(B)(i)(I) of the Immigration and Nationality Act (8 
     U.S.C. 1187(h)(3)(B)(i)(I),'';
       (3) by striking ``fiscal years 2011 through 2014,'' in 
     paragraph (2)(B) and inserting ``fiscal years 2012 through 
     2015,'';
       (4) by striking ``fiscal year 2010,'' in paragraph (3)(A) 
     and inserting ``fiscal year 2011,'';
       (5) by striking ``fiscal year 2011,'' each place it appears 
     in paragraph (3)(A) and inserting ``fiscal year 2012,''; and
       (6) by striking ``fiscal year 2010, 2011, 2012, 2013, or 
     2014'' in paragraph (4)(B) and inserting ``fiscal year 2011, 
     2012, 2013, 2014, or 2015''.

     SEC. 7. DISCLOSURE OF PRISONER RETURN INFORMATION TO STATE 
                   PRISONS.

       (a) In General.--Subparagraph (A) of section 6103(k)(10) of 
     the Internal Revenue Code of 1986 is amended--
       (1) by inserting ``and the head of any State agency charged 
     with the responsibility for administration of prisons'' after 
     ``the head of the Federal Bureau of Prisons'', and
       (2) by striking ``Federal prison'' and inserting ``Federal 
     or State prison''.
       (b) Restriction on Redisclosure.--Subparagraph (B) of 
     section 6103(k)(10) of such Code is amended--
       (1) by inserting ``and the head of any State agency charged 
     with the responsibility for administration of prisons'' after 
     ``the head of the Federal Bureau of Prisons'', and
       (2) by inserting ``or agency'' after ``such Bureau''.
       (c) Recordkeeping.--Paragraph (4) of section 6103(p) of 
     such Code is amended by inserting ``(k)(10),'' before 
     ``(l)(6),'' in the matter preceding subparagraph (A).
       (d) Clerical Amendment.--The heading of paragraph (10) of 
     section 6103(k) of such Code is amended by striking ``of 
     prisoners to federal bureau of prisons'' and inserting ``to 
     certain prison officials''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to disclosures made after the date of the 
     enactment of this Act.

[[Page S5628]]

     SEC. 8. RESCISSIONS.

       Of the funds appropriated in Department of Defense 
     Appropriations Acts, the following funds are hereby rescinded 
     from the following accounts and programs in the specified 
     amounts:
       ``Research, Development, Test and Evaluation, Army, 2009/
     2010'', $20,000,000.
       ``Research, Development, Test and Evaluation, Air Force, 
     2009/2010'', $39,000,000.
       ``Research, Development, Test and Evaluation, Defense-Wide, 
     2009/2010'', $35,000,000.

     SEC. 9. TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES.

       (a) Shift From 2015 to 2014.--The percentage under 
     paragraph (1) of section 202(b) of the Corporate Estimated 
     Tax Shift Act of 2009 in effect on the date of the enactment 
     of this Act is increased by 0.25 percentage points.
       (b) Shift From 2016 to 2015.--The percentage under 
     paragraph (2) of section 561 of the Hiring Incentives to 
     Restore Employment Act in effect on the date of the enactment 
     of this Act is increased by 0.25 percentage points.

     SEC. 10. BUDGETARY PROVISIONS.

       (a) Statutory Paygo.--The budgetary effects of this Act, 
     for the purpose of complying with the Statutory Pay-As-You-Go 
     Act of 2010, shall be determined by reference to the latest 
     statement titled `Budgetary Effects of PAYGO Legislation' for 
     this Act, jointly submitted for printing in the Congressional 
     Record by the Chairmen of the House and Senate Budget 
     Committees, provided that such statement has been submitted 
     prior to the vote on passage in the House acting first on 
     this conference report or amendment between the Houses.
       (b) Emergency Designations.--Sections 2 and 3--
       (1) are designated as an emergency requirement pursuant to 
     section 4(g) of the Statutory Pay-As-You-Go Act of 2010 
     (Public Law 111-139; 2 U.S.C. 933(g));
       (2) in the House of Representatives, are designated as an 
     emergency for purposes of pay-as-you-go principles; and
       (3) in the Senate, are designated as an emergency 
     requirement pursuant to section 403(a) of S. Con. Res. 13 
     (111th Congress), the concurrent resolution on the budget for 
     fiscal year 2010.
                                 ______
                                 
  SA 4426. Mr. REID proposed an amendment to amendment SA 4425 proposed 
by Mr. Reid to the bill H.R. 4213, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
as follows:

       At the end of the amendment, insert the following:
       The provisions of this Act shall become effective 3 days 
     after enactment.
                                 ______
                                 
  SA 4427. Mr. REID proposed an amendment to the bill H.R. 4213, to 
amend the Internal Revenue Code of 1986 to extend certain expiring 
provisions, and for other purposes; as follows:

       At the end, insert the following:
       The Committee on Finance is requested to study the economic 
     impact of the delay in implementing the provisions of the Act 
     on job creation on a national and regional level.
                                 ______
                                 
  SA 4428. Mr. REID proposed an amendment to amendment SA 4427 proposed 
by Mr. Reid to the bill H.R. 4213, to amend the Internal Revenue Code 
of 1986 to extend certain expiring provisions, and for other purposes; 
as follows:

       At the end, insert the following:

     and include statistical data on the specific service related 
     positions created
                                 ______
                                 
  SA 4429. Mr. REID proposed an amendment to amendment SA 4428 proposed 
by Mr. Reid to the amendment SA 4427 proposed by Mr. Reid to the bill 
H.R. 4213, to amend the Internal Revenue Code of 1986 to extend certain 
expiring provisions, and for other purposes; as follows:

       At the end, insert the following:

     and the impact on the local economy.
                                 ______
                                 
  SA 4430. Mrs. BOXER (for herself and Ms. Landrieu) submitted an 
amendment intended to be proposed to amendment SA 4402 proposed by Mr. 
Reid (for Mr. Baucus (for himself, Ms. Landrieu, and Mr. Reid)) to the 
bill H.R. 5297, to create the Small Business Lending Fund Program to 
direct the Secretary of the Treasury to make capital investments in 
eligible institutions in order to increase the availability of credit 
for small businesses, to amend the Internal Revenue Code of 1986 to 
provide tax incentives for small business job creation, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the end of part III of subtitle A of title II, insert 
     the following:

     SEC. ___. STANDARD HOME OFFICE DEDUCTION.

       (a) In General.--Subsection (c) of section 280A of the 
     Internal Revenue Code of 1986 (relating to disallowance of 
     certain expenses in connection with business use of home, 
     rental of vacation homes, etc.) is amended by adding at the 
     end the following new paragraph:
       ``(7) Standard home office deduction.--
       ``(A) In general.--In the case of an individual who is 
     allowed a deduction for the use of a home office because of a 
     use described in paragraphs (1), (2), or (4) of this 
     subsection, notwithstanding the limitations of paragraph (5), 
     if such individual elects the application of this paragraph 
     for the taxable year, such individual shall be allowed a 
     deduction equal to the standard home office deduction for the 
     taxable year in lieu of the deductions otherwise allowable 
     under this chapter for such taxable year by reason of being 
     attributed to such use.
       ``(B) Standard home office deduction.--For purposes of this 
     paragraph, the standard home office deduction is the lesser 
     of--
       ``(i) $1,200, or
       ``(ii) the gross income derived from the individual's trade 
     or business for which such use occurs.
       ``(C) Termination.--This paragraph shall not apply to 
     taxable years beginning after December 31, 2010.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2009.
       (c) Offset.--Not later than 60 days after the date of the 
     enactment of this Act, the Director of the Office of 
     Management and Budget, in consultation with the heads of the 
     Federal departments and agencies, shall direct the Federal 
     departments and agencies to reduce nonessential government 
     travel by $158,000,000 in fiscal year 2011.

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