[Congressional Record Volume 156, Number 132 (Tuesday, September 28, 2010)]
[House]
[Pages H7081-H7082]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   SMALL BUSINESS JOBS ACT AMENDMENT

  Mr. MILLER of North Carolina. Mr. Speaker, I move to suspend the 
rules and pass the bill (H.R. 6191) to amend the Small Business Jobs 
Act of 2010 to include certain construction and land development loans 
in the definition of small business lending.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6191

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

     SECTION 1. AMENDMENT.

       Section 4102(18)(A) of the Small Business Jobs Act of 2010 
     is amended by adding at the end the following new clause:
       ``(v) Construction, land development, and other land 
     loans.--

       ``(I) In general.--Loans secured by real estate--

       ``(aa) that are made to finance--
       ``(AA) land development that is preparatory to erecting new 
     structures, including improving land, laying sewers, and 
     laying water pipes; or
       ``(BB) the on-site construction of industrial, commercial, 
     residential, or farm buildings;
       ``(bb) that is vacant land, except land known to be used or 
     usable for agricultural purposes, such as crop and livestock 
     production;
       ``(cc) the proceeds of which are to be used to acquire and 
     improve developed or undeveloped property; or
       ``(dd) that are made under title I or title X of the 
     National Housing Act.

       ``(II) Construction industry requirement.--Subclause (I) 
     shall only apply to loans that are extended to small business 
     concerns in the construction industry, as such term is 
     defined by the Secretary in consultation with the 
     Administrator of the Small Business Administration.
       ``(III) Construction defined.--For purposes of this clause, 
     the term `construction' includes the construction of new 
     structures, additions or alterations to existing structures, 
     and the demolition of existing structures to make way for new 
     structures.''.

     SEC. 2. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on the later of the following:
       (1) The date of the enactment of this Act.
       (2) The date of the enactment of the Small Business Jobs 
     Act of 2010.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
North Carolina (Mr. Miller) and the gentleman from Minnesota (Mr. 
Paulsen) each will control 20 minutes.
  The Chair recognizes the gentleman from North Carolina.


                             General Leave

  Mr. MILLER of North Carolina. Mr. Speaker, I ask unanimous consent 
that all Members may have 5 legislative days within which to revise and 
extend their remarks on this legislation and to insert extraneous 
material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from North Carolina?
  There was no objection.
  Mr. MILLER of North Carolina. I yield myself such time as I may 
consume.
  Mr. Speaker, this bill amends the Small Business Lending Fund 
legislation that the President signed just yesterday. The bill is 
identical to a House amendment that passed 418-3 but was left out of 
the other body's version of the legislation for reasons that surpass 
understanding.

                              {time}  1810

  This bill, like the amendment, adds land acquisition and construction 
loans to the loans that qualify for the Small Business Lending Fund. 
The sad truth is that in many--really, most--parts of the country this 
bill will not have a lot of effect right away. Under the SBLF, 
community banks are on the hook if they make loans that don't get paid 
back, and they're going to steer clear of acquisition, development, and 
construction loans for home building until the demand for new housing 
improves.
  Around the country, there is an enormous inventory of existing homes, 
on or off the market. Because so much of the foolishness that led to 
the financial crisis was connected to housing, the housing sector of 
our economy remains very sick and won't get well right away. There are 
millions of foreclosed homes and homes destined for foreclosure. Mr. 
Speaker, I wish everyone in Washington felt the urgency that I feel 
about fixing that problem.
  But there are markets now that have a demand for new homes and home 
builders cannot get credit, ordinary loans, because of pressure from 
regulators on the smaller banks not to make real estate loans, not to 
make dirt loans.
  That indiscriminate refusal to lend for residential construction is 
killing jobs. We've lost 3 million jobs in the last 5 years in home 
construction and related industries. The jobs we've lost

[[Page H7082]]

are jobs for the working man and woman: carpenters, plumbers, 
electricians, masons, painters, roofers, landscapers, and on and on. 
We've got to get as many of those working men and women back to work as 
soon as we can.
  And as the economy recovers, there will be an enormous pent-up demand 
for new housing. Catching up with that demand can be part of the 
virtuous cycle of recovery coming out of a recession as it has been in 
the past. Home construction now is probably about a third of the 
natural demand for new housing that's created by new household 
formation, replacement of obsolete housing, and second home purchases.
  As the economy recovers, young adults are going to move out of their 
parents' home or out of the apartment they're sharing with three or 
four roommates, and dilapidated housing will be torn down and replaced 
by new construction. We need to make sure that home builders can get 
credit to meet that pent-up demand and put more men and women back to 
work, and that's what this bill does.
  I reserve the balance of my time.
  Mr. PAULSEN. I yield myself such time as I may consume.
  Mr. Speaker, I also want to rise in support of my colleague Mr. 
Miller's bill to amend the Small Business Jobs Act of 2010, but I'd 
also like to point out the irony is that we are here on the floor the 
day after, of course; the President signed the bill just 1 day ago.
  You know, this bill would allow construction, land development, and 
other land loans to be included in the program, which is important, and 
I commend Mr. Miller's efforts to make sure that all small businesses 
will be eligible under this program.
  I appreciate also what my colleagues are also trying to do, but I do 
believe that if we're really going to be focused on helping the small 
business community, we need to bring some certainty to the market and 
to the economy for them. Right now many small businesses are struggling 
with the uncertainty, not knowing what regulations this Congress is 
going to come up with next on health care or on cap-and-trade 
legislation; and most importantly now, rather than additional bailout 
programs, I do think we need to be talking more down the road, 
hopefully tomorrow, about extending the tax cuts rather than having tax 
increases that will take place on January 1.
  So that hostile business environment also is going to hurt the small 
business community, but I commend the gentleman for his work on this 
legislation.
  I yield back the balance of my time.
  Mr. MILLER of North Carolina. Mr. Speaker, I have no further requests 
for time, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from North Carolina (Mr. Miller) that the House suspend the 
rules and pass the bill, H.R. 6191.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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