[Congressional Record (Bound Edition), Volume 155 (2009), Part 19]
[House]
[Pages 26156-26201]
[From the U.S. Government Publishing Office, www.gpo.gov]




          SMALL BUSINESS FINANCING AND INVESTMENT ACT OF 2009

  The SPEAKER pro tempore. Pursuant to House Resolution 875 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the consideration of the bill, H.R. 3854.

                              {time}  1431


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 3854) to amend the Small Business Act and the Small Business 
Investment Act of 1958 to improve programs providing access to capital 
under such Acts, and for other purposes, with Mr. Serrano in the chair.
  The Clerk read the title of the bill.
  The CHAIR. Pursuant to the rule, the bill is considered read the 
first time.
  The gentlewoman from New York (Ms. Velazquez) and the gentleman from 
Missouri (Mr. Graves) each will control 30 minutes.
  The Chair recognizes the gentlewoman from New York.
  Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I rise in support of this bill, which will enhance the 
SBA's

[[Page 26157]]

capital access programs. This bill is a bipartisan product. It has the 
support of 48 stakeholder groups and could not have come together 
without the contributions of eight different committee members, 
including two from the minority. It addresses a key concern for small 
firms and ensures they have the resources to help grow our economy.
  If history is any guide, small businesses will be the key to our 
recovery. Since our Nation's founding, they have helped us bounce back 
from countless downturns, including the recession of the mid-1990s. At 
that time, start-up businesses generated 3.8 million new jobs. And 
ultimately, Mr. Chairman, that is what our recovery efforts are all 
about, putting Americans back to work.
  Through innovation and ingenuity, small businesses have created 
enormous wealth for our Nation. But America's economic engine doesn't 
run on good ideas alone. Small firms need capital to not only get off 
the ground, but to operate and grow. That is why H.R. 3854 delivers 
better funding options to small firms at every stage of development.
  For the aspiring entrepreneur, it opens new avenues for seed capital 
and microloans. For the mid-market venture, it provides fresh funds for 
investment. And for the established business, it creates room for 
targeted risk and innovation. And it could not have come at a more 
critical time.
  Small business lending is declining at alarming rates. In July, a 
survey by the Federal Reserve found that 35 percent of banks have 
tightened lending to small businesses. In terms of credit cards, a 
popular source of funding for entrepreneurs, 79 percent have seen their 
lines cut radically. These are exceptional declines. And if we fail to 
address them, we risk losing more than our most innovative businesses. 
We risk losing hundreds of thousands of jobs.
  Small businesses with tight profit margins do not have the luxury of 
simply tightening the belt. When money is short, they are often forced 
to lay off workers. But with unemployment at 9.8 percent, we just 
cannot afford more losses. That is why this bill delivers critical 
capital to new ventures.
  To begin, it helps steer equity investment to start-ups in high-
growth fields like IT and clean energy. It also enhances SBA's 
microloan program. Two weeks ago, my committee heard from an 
entrepreneur who used microloans to grow his business from a fledgling 
firm to a thriving enterprise with 30 employees. By improving the 
microloan program, imagine how many more new businesses, and new jobs, 
we can generate.
  Ask any small business owner, and they will tell you that start-ups 
are not the only firms that need capital. Established ventures in 
fields like manufacturing, for example, need funding to adapt to the 
changing marketplace. By improving the 504 program, this bill gives 
them the flexibility to purchase new equipment and otherwise retool 
operations. When paired with new initiatives like the New Markets 
Venture Capital and Renewable Energy Capital Investment programs, these 
efforts will help manufacturers emerge from the downturn stronger and 
better poised to create new jobs.
  Meanwhile, we are also delivering important lending options to our 
Nation's veterans, offering reduced borrower fees and increased loan 
guarantees. As our servicemen and -women return home from deployment 
abroad, we need to be sure they have access to the economic 
opportunities that entrepreneurship offers.
  Mr. Chairman, this bill is about choices. It is about better options 
for the small businesses that didn't get a bailout. H.R. 3854 provides 
critical funding to small firms in every industry and, most 
importantly, generates jobs. In fact, it will create or sustain more 
than 1.3 million positions nationwide.
  In the 111th Congress, job creation is our number one priority. It 
only makes sense to support legislation that gets us there.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GRAVES. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise today in support of H.R. 3854, the Small 
Business Financing and Investment Act of 2009. Before we even get 
started, I want to thank the chairwoman, the gentlelady from New York, 
and Subcommittee Chairman Schrader for working in a very bipartisan 
manner to craft this important legislation. This bill includes bills 
introduced by Mr. Buchanan and Mr. Luetkemeyer of the committee, and I 
think it is a good piece of legislation.
  The bill before us today will significantly strengthen the ability of 
small businesses to obtain needed capital for retaining and creating 
new jobs. The committee has heard time and time and time again that 
small businesses want to expand but can't find funds necessary to do 
so. I am sure most of the Members of this Chamber have heard the same 
thing from their small business constituents back home.
  If small businesses create most of the new jobs in this country and 
can't obtain capital, economic recovery is going to be a faint light at 
the end of a very long and dark tunnel. Enactment of H.R. 3854 isn't 
going to magically correct the flaws in the credit markets for small 
businesses, nor will the programs in these bills increase the 
confidence of small businesses while the President continues to push 
initiatives such as capital-and-trade and health care reform that are 
going to raise costs on small businesses. Nevertheless, the provisions 
of this bill to improve the financing programs operated by the Small 
Business Administration can play a vital role in relieving the existing 
stress on the capital and credit markets for small businesses until 
those markets return to more normal operations.
  Title I of the bill reduces the barriers to utilization of the 7(a) 
guaranteed loan program by community banks, particularly those in rural 
areas.
  Mr. Buchanan's bill, incorporated as title II, overhauls the 
operation of the Certified Development Company loan program and will 
make long-term fixed rate debt available to many small businesses, 
particularly manufacturers seeking to retool and expand their 
operations.
  Title III makes modest, but important, changes to the microloan 
program, which will give America's smallest entrepreneurs a greater 
chance of success.
  Title IV adopts Mr. Luetkemeyer's bill to enhance the Small Business 
Investment Company program by enabling successful managers of such 
companies to more easily expand their operations.
  Title V's most significant change is to correct a flaw in the New 
Market Venture Capital Company program that would spur greater 
investment in poor rural areas of the country.
  Title VI establishes a loan program which will enable physicians and 
other providers of health care to make the necessary investment in the 
efficiency of electronic health records.
  Title VII provides the SBA with the opportunity to leverage Federal 
funds with the best venture operators to promote investment in early 
stage businesses, like the next Microsoft, Dell, Google or Federal 
Express.
  Title VIII makes additional modifications to the SBA's disaster loan 
program in order to ensure that small businesses will quickly have 
needed funds to help recover from a disaster.
  In addition to amending key financing programs, this bill, including 
title IX, makes concerted efforts at increasing the transparency of the 
SBA's decision-making process. It would be foolish to make significant 
improvements in these vital financial programs, yet have small 
businesses' access to them curtailed by inefficient and opaque 
administration by the SBA.
  I would like to add one final point to my comments, Mr. Chairman. 
Some may question the cost of this bill in a time of fiscal 
constraints. However, I believe that it represents a vital investment 
in a better future for our economy. For the past decade, this country's 
biggest export has been risk. However, America was not built on 
derivatives or credit default swaps. It was built by individuals 
creating new products in new ways that the entire world

[[Page 26158]]

demanded. This bill will help us return to that America, one based on 
the hard work of creating real and tangible products that are the envy 
of the entire world.
  Mr. Chairman, I reserve the balance of my time.
  Mr. SCHRADER. Mr. Chairman, I yield myself such time as I may 
consume.
  I rise today in strong support of H.R. 3854, the Small Business 
Financing and Investment Act of 2009. This bill represents the 
culmination of work done by many hard-working members of the Small 
Business Committee, Democrats and Republicans. They both understand how 
critical small business growth is for communities throughout this 
Nation and to our economy as a whole.
  I specifically want to acknowledge Chairwoman Velazquez, Ranking 
Member Graves, Representatives Halvorson, Kirkpatrick, Nye, 
Luetkemeyer, Dahlkemper, Ellsworth and Griffith, and the ranking member 
of my Subcommittee on Finance and Tax, Representative Buchanan, and 
their expertise in crafting the various sections of the bill that the 
ranking member referenced. These leaders recognize that small 
businesses are the backbone of our economy and must be the driving 
force in spurring economic growth.
  Also, I want to thank personally my Small Business Advisory Board in 
Oregon. They provided me critical information and thoughts about what 
this Congress can be doing to truly aid small businesses.
  Small businesses are the real job creators for most of our 
communities, but unfortunately, the current recession has hit them 
very, very hard. As a small business owner myself for over 30 years, I 
understand all too well the difficulties they face accessing capital 
during these tough economic times. Many small business owners literally 
survive month-to-month. They rely on timely payment for their products 
and services because they do not possess the deep reserves of some of 
the larger companies. That is why a deep, prolonged recession is 
particularly dangerous for small businesses.
  In August, I held a hearing of my Finance and Tax Subcommittee in 
Salem, Oregon, in the heart of my congressional district. We took 
testimony from small business owners and learned firsthand about the 
difficulties of accessing loans and how crippling the current situation 
is for many small businesses. We also heard from banks and credit 
unions who talked about their concerns with making loans, given the 
recession environment, and the new regulatory burdens placed on them. 
We talked about problems with the SBA and how we can improve their 
programs to make them friendlier, more efficient and responsive to both 
businesses and lenders, and we talked about many solutions to the 
current credit freeze. I am pleased to say that many of these proposals 
are in the legislation we are debating here today.
  In our current environment, small businesses everywhere, in every 
industry, face the same problem: They cannot access affordable capital. 
Entrepreneurs who are looking to expand and hire workers, and companies 
who want to borrow money to stay afloat, are unable to secure necessary 
credit because of the economic downturn, despite their own past good 
credit.

                              {time}  1445

  The SBA's diverse catalog of lending and investment programs, as 
approved here today, have the potential to increase access to capital 
and provide the needed loans when the private sector is uncertain about 
accepting more risk.
  That is why passage of H.R. 3854 is so critical to create jobs and 
build our economy right now. It increases the maximum loan sizes for 
SBA 7(a), 504, microloan, and newly created ARC loan programs. It 
increases efficiency at the SBA, something we have needed for a long 
time, by reducing burdensome application loan times for the regular 
loans, rural loans, cooperative loans and the ARC program. It allows 
CDCs to do loan liquidation for the 504 program, helping pay for that 
program. It includes closing costs on 7(a) and 504 loans in the loans. 
It approves the SBIC licensing protocol to make it more attractive to 
our lenders and aligns definitions and program opportunities with the 
U.S. Department of Agriculture with similar programs.
  It encourages banks to participate once again and loan by increasing 
guarantees to 90 percent. It extends for a longer period of time the 
American Recovery and Reinvestment Act so it's more attractive for 
banks to gear up for those programs. It cuts lender fees, requires 
prompt purchase of bad loans by the SBA within 45 days, and simplifies 
the ARC loan application to one page.
  Mr. Chairman, our American small businesses are comprised of 
individuals who drive innovation, develop resources to meet the demands 
of our changing world, and make a meaningful impact on our local 
communities. In my State of Oregon, 98 percent of the businesses are 
small businesses, and they employ almost 60 percent of our workforce.
  At a time when our State and our country face high unemployment, it 
makes perfect sense to do all we can to help small businesses do what 
they do best, create jobs in our economy. That's what H.R. 3854 will 
do, and why I urge a strong ``yes'' vote.
  Mr. Chairman, I reserve the balance of my time.
  Mr. GRAVES. Mr. Chairman, I yield such time as he may consume to my 
colleague from Missouri, Mr. Luetkemeyer, the ranking member of the 
Rural Development, Entrepreneurship and Trade Subcommittee.
  Mr. LUETKEMEYER. Again, I would like to echo the sentiments of 
Ranking Member Graves with regards to the fine bipartisanship and the 
good, hard work of everybody on the committee to come up with, I think, 
an outstanding bill to help our small business folks in this country.
  Mr. Chairman, I rise today in support of H.R. 3854 and am pleased to 
see that this bill includes my legislation, H.R. 3740, the Small 
Business Investment Company Modernization and Improvement Act of 2009.
  As a small businessman, I am proud to support a bill that would 
assist many fellow small business owners and employees throughout my 
district and Missouri and all throughout the country. Small businesses 
have generated up to 80 percent of new net jobs annually over the last 
decade and contribute 38 percent of the GDP. Like every recession 
before, small business will lead us back to economic prosperity.
  Most small business owners remain cautious in their economic outlook, 
with more than two-thirds in recent polls saying the recession is not 
over for them. Many people want to signal that their economy is on the 
mend, but American small businesses and small business owners aren't 
able to send that message yet.
  Small businesses have never had a harder time getting a loan, as 
access to credit is being denied at an increasing pace. Since the onset 
of the credit crisis over 2 years ago, available credit to small 
business consumers has contracted by billions of dollars. Without 
access to credit, small businesses can't grow, can't hire, and too 
often end up going out of business.
  In recent hearings on the Small Business Administration's capital 
access programs, we heard from two SBIC witnesses from my home State of 
Missouri, Capital For Business and C3 Capital. Both testified that 
despite having a 50-year record of growing American small businesses 
and providing over $55 billion in financing to over 100,000 U.S.-based 
businesses, the SBIC is being dramatically underutilized. When both 
credit and investment have evaporated, it does not make sense to leave 
an effective small business tool unused.
  Additionally, this bill will halt the continued flight of SBICs that 
participate in the program by establishing an expedited licensing 
process. A broken licensing system for far too long has been cutting 
off capital to good small businesses. I know of a successful SBIC in 
Missouri that applied for a second license and it took over 1 year, 
countless hours of paperwork and expensive legal bills.
  This legislation would provide a transparent process with clear 
standards and a reasonable timeline for applicants. This bill also 
includes strong

[[Page 26159]]

taxpayer protections. New background checks and proof of raised capital 
would be required.
  Funds that have major regulatory problems or are unable to raise 
private funds would not be able to get an expedited repeat license. 
Further, the administrator should have the authority to put the brakes 
on any application that she thinks may pose a risk to the taxpayer.
  At a time when small businesses are still struggling to keep their 
doors open, I am pleased to see a bill working its way through the 
legislative process that would improve initiatives already available to 
small businesses. Perhaps more important, the bill we consider today 
recognizes the ability here to create good private sector jobs in 
Missouri and across the country.
  Mr. Chairman, this bill is not an answer to what ails our economy. It 
is a good start to help small business, the economic engine of our 
economy, get back into the business of doing business.
  I urge my colleagues to adopt the legislation.
  Mr. SCHRADER. Mr. Chairman, I yield 3 minutes to the gentlewoman from 
Illinois (Mrs. Halvorson).
  Mrs. HALVORSON. Mr. Chairman, I rise today in support of H.R. 3854, 
the Small Business Financing and Investment Act. I am proud to be an 
original cosponsor of this bill, which includes language from 
legislation I introduced, H.R. 3723, the Small Business Credit 
Expansion and Loan Markets Stabilization Act.
  I commend Chairwoman Velazquez, Ranking Member Graves, and Mr. 
Schrader for his hard work on the bill before us today.
  This year, the House has already passed several pieces of legislation 
that will help our Nation's small business owners, but it's clear that 
we still have much work to do. I also want to thank the small business 
owners in my district for getting together regularly to let me know 
what is going on with their small business. In fact, we are still 
hearing from them every day about what's going on and especially the 
difficulties in accessing credit, which continues to be a major 
challenge.
  Small businesses need capital to grow and create new jobs, but the 
credit crunch has made it exceedingly difficult for them to obtain 
loans, which we know firsthand, as my husband owns two small 
businesses, and that also continually is a difficult time. In times 
like this, small businesses turn to the SBA. The American Recovery and 
Reinvestment Act includes several provisions that strengthen the Small 
Business Administration's ability to help small businesses access 
capital.
  The legislation before us today will enhance the SBA's access to 
capital programs and build on the progress made by the recovery bill. 
H.R. 3854 will improve the SBA's flagship 7(a) loan program. It extends 
provisions in the Recovery Act that reduce borrower fees and increase 
SBA loan guarantees.
  We will also extend the ARC loan program, simplify the application 
process and increase the maximum loan. To increase lender 
participation, the bill creates new rural and small lender outreach 
programs of the SBA.
  Finally, we are going to help veteran entrepreneurs by fully 
implementing the SBA's Increased Veteran Participation Loan Program.
  H.R. 3854 will help get credit flowing again for America's small 
business owners so that they can create new jobs and jump-start our 
economy.
  I urge my colleagues to join me in supporting this legislation.
  Mr. GRAVES. Mr. Chairman, I reserve the balance of my time.
  Mr. SCHRADER. Mr. Chairman, I yield 3 minutes to the gentleman from 
Indiana (Mr. Ellsworth).
  Mr. ELLSWORTH. I thank the chairman and thank all of my colleagues on 
the committee for their hard work on this bill, especially Chairwoman 
Velazquez and Ranking Member Graves for their leadership and the 
bipartisan spirit with which we wrote this bill.
  Mr. Chairman, tough economic times like these we are in right now 
have time and time again spurred the innovations to put us back on the 
right track. The entrepreneurs who take on the risk of starting a new 
business in these times, they are the ones who will transform our 
economy and jump-start growth in our communities.
  Unfortunately, entrepreneurs in my district and across the country 
are being turned away by lenders nervous about the risk of starting a 
new business. That's why it's so important that we pass this bill 
today. The Small Business Financing and Investment Act will provide 
much-needed assistance to entrepreneurs who are just asking for a 
chance to succeed.
  The Small Business Administration's microloan program helps 
entrepreneurs like these secure start-up capital to get their new 
ventures off the ground. Unfortunately, the SBA's microloan program 
remains underused.
  Too many of these funds Congress has provided to help these small 
businesses are being left on the table, despite the credit crunch in 
the private marketplace. Clearly we need to bridge the gap so that more 
aspiring business owners find the credit they need to get started.
  The legislation before us includes a bill that I authored to improve 
how the SBA's microloan program functions. The Small Business 
Microlending Expansion Act makes a number of changes to improve this 
program and expand its reach to more small businesses.
  These changes will put unused loan funds toward making existing 
microloans more affordable. It will get more lenders involved in the 
program while expanding the amount existing lenders can provide to 
their communities. It improves the ability of lenders to provide the 
technical assistance entrepreneurs need to succeed.
  Simply put, this bill will increase the capital flowing to 
entrepreneurs, who can use those loans to build a business, employ 
their neighbors, and improve their community. That is our goal today, 
and it should be the goal every day.
  Mr. GRAVES. Mr. Chairman, I continue to reserve the balance of my 
time.
  Mr. SCHRADER. Mr. Chairman, I yield 3 minutes to the gentlewoman from 
Illinois (Ms. Bean).
  Ms. BEAN. I thank the Chair for yielding.
  Mr. Chairman, I rise in strong support of the manager's amendment and 
the Small Business Financing and Investment Act of 2009.
  I want to commend Chairwoman Velazquez and the subcommittee Chair, 
Mr. Schrader, for their hard work on behalf of small businesses across 
the country. As a former small business owner, I appreciate the 
challenges entrepreneurs and small business owners face in gaining 
access to the capital that they need to grow their businesses.
  This summer, I held a roundtable with Illinois businesses and the SBA 
to discuss these challenges. That's why I have long supported measures 
to improve and expand SBA loan programs, which offer low interest, 
long-term loans to creditworthy community business owners. In the last 
Congress, I authored similar legislation, the Small Business Lending 
Improvements Act, which passed the House in 2007.
  The expedited consideration of H.R. 3854 underscores both the 
importance and urgency of assuring access to capital for our small 
business community. Simply put, the U.S. cannot promote economic 
recovery without small businesses, as they are the engine of job 
creation and innovation in our Nation.
  The American Recovery and Reinvestment Act did a great deal to 
provide lending and investment. Since the bill's enactment in February, 
the SBA has supported $13.4 billion in small business lending, and 
weekly loan approvals have increased by 75 percent.
  That said, the SBA's capital access programs aren't equipped to meet 
current needs. H.R. 3854 brings long-awaited updates and improvements 
to SBA's lending initiatives, most importantly, preserving the original 
intent of these programs to help make affordable sources of financing 
accessible.
  This legislation raises the cap on 7(a), 504 and ARC loans. It 
directs the SBA to target capital towards communities hard-hit by the 
recession and towards industries that hold the most

[[Page 26160]]

promise for American innovation and competitiveness. The measure also 
streamlines the loan application process and makes it easier for small 
and community lenders to participate in the programs.
  I am particularly pleased that a provision that I authored enabling 
staffing company franchises to qualify for SBA programs was included in 
the manager's amendment. Supporting the temporary staffing industry is 
important now more than ever as temporary positions provide a lifeline 
to many workers in a constrained job market. Their market growth also 
serves as an early indicator of emerging job markets towards broader 
recovery.
  My provision directs the SBA to continue applying its historically 
considered affiliation factors when determining a business' 
independence so that franchisees are not penalized.
  I would like to thank Chairwoman Velazquez for including this 
provision in the manager's amendment. H.R. 3854 provides the tools to 
help small businesses access capital, create jobs and fuel our economy 
as we move forward.
  I urge my colleagues to support this important bill.

                              {time}  1500

  The CHAIR. The Chair will note that the gentleman from Oregon has 
12\1/2\ minutes remaining. The gentleman from Missouri has 22\1/2\ 
minutes remaining.
  Mr. GRAVES. Mr. Chairman, I continue to reserve the balance of my 
time.
  Mr. SCHRADER. Mr. Chairman, I would like to yield 3 minutes to the 
gentlelady from Pennsylvania (Mrs. Dahlkemper).
  Mrs. DAHLKEMPER. Mr. Chairman, I rise today in support of the Small 
Business Financing and Investment Act. I want to thank Subcommittee 
Chair Schrader and Chairwoman Velazquez as well as so many members of 
the committee who have worked so hard on this legislation.
  As a member of the Small Business Committee and a former small 
business owner, I know firsthand that small businesses are the driving 
force of our economy, creating between 60 and 80 percent of our 
Nation's new jobs every year. Small businesses create good jobs and 
strengthen our communities. Not only do small businesses bring valuable 
resources to our neighborhoods, but they bring prosperity as well. When 
small businesses succeed, they benefit everyone in the community.
  Small businesses have been among the hardest hit by the recession. 
The Small Business Financing and Investment Act will help open tight 
credit markets that have shut down small business owners during this 
economic crisis so that small businesses can create jobs, particularly 
in struggling regions and industries. In addition, this small business 
legislation takes an important step to address another issue affecting 
small businesses in the health care business sector.
  My legislation, the Small Business Health Information Technology 
Financing Act, which has been incorporated into this bill, makes cost-
saving information technology affordable for small group and individual 
health care practitioners. Administrative burdens add dramatically to 
the ever-rising price tag of health care, but the cost-saving 
information, technologies which are ready available, are often too 
expensive an investment for small group or individual health care 
providers. That includes small group physicians, nurse practitioners, 
community pharmacists and others.
  My provision creates an affordable loan program for these providers 
to make the investment in health information technologies that lower 
the cost of health care for everyone.
  The Small Business Health Information Technology Financing Act 
creates a new loan guarantee program at the Small Business 
Administration for the purchase of health information technology by 
health care professionals in individual and small group practices, 
those with 50 or fewer employees. The loan guarantee program provides a 
90 percent guarantee and loan amounts up to $350,000 for an individual 
practitioner and $2 million for a group.
  Mr. Chairman, the Small Business Financing and Investment Act will 
help grow small businesses, create good jobs for Americans and help 
lower the administrative costs of health care. I urge my colleagues on 
both sides of the aisle to support this small business legislation.
  Mr. GRAVES. Mr. Chairman, may I inquire how many speakers the 
majority has?
  Mr. SCHRADER. We have no further speakers and are prepared to close.
  Mr. GRAVES. Mr. Chairman, I will go ahead and yield back the balance 
of my time.
  Mr. SCHRADER. I yield the balance of my time to the gentlewoman from 
New York (Ms. Velazquez).
  The CHAIR. The gentlewoman is recognized for 10 minutes.
  Ms. VELAZQUEZ. Mr. Chairman, I would like to take this opportunity to 
thank the staff--from both sides of the aisle--that worked so hard on 
this bill.
  From the majority--Michael Day and Andy Jiminez; and Ethan Pittleman 
from Mr. Schrader's staff.
  From the minority--Barry Pineles and Karen Haas; and Max Goodman from 
Mr. Buchanan's staff.
  Their efforts to ensure the members' priorities are included in this 
legislation are very much appreciated.
  Mr. Chairman, the Small Business Committee is not alone in its 
commitment to small firms. Since the downturn began, we have heard 
countless calls from both sides of the aisle for a new economic 
foundation--one that puts Main Street before Wall Street and that 
values entrepreneurship over corporate greed. Well, this bill does 
both. By empowering small businesses, it makes a direct investment in 
the two things our economy needs most--innovation and job creation.
  Capital is a fundamental building block for small business growth. 
Without it, new ventures cannot get off the ground and existing 
companies cannot hire workers. H.R. 3854 delivers the resources small 
firms need to grow. For small medical practices, it makes health IT 
more affordable. For entrepreneurs developing the next breakthrough in 
clean energy, it buys time for R&D. And for veterans and rural 
Americans seeking economic empowerment, it puts entrepreneurship within 
reach. Most importantly, however, this bill keeps workers on payroll. 
By allowing entrepreneurs to expand their ventures, H.R. 3854 will 
create and sustain more than 1.3 million jobs. In other words, Mr. 
Chairman, a vote for this bill is a vote for job creation. If you ask 
me, that is something we can all get behind, Democrats and Republicans 
alike, and I urge adoption of this bill.
  Mr. VAN HOLLEN. Mr. Chair, small businesses are the backbone of the 
American economy. They represent almost 8 out of every 10 new jobs 
created in the country and are a key element of the Nation's efforts to 
achieve a successful and complete economic recovery.
  Last week I joined President Obama, Treasury Secretary Tim Geithner, 
Small Business Administrator Karen Mills, Members of the Maryland 
Delegation, Governor Martin O'Malley, County Executive Jack Johnson, 
and Hyattsville Mayor William Gardner at Metropolitan Archives in 
Largo, MD to discuss the work Congress and the Obama administration are 
doing to create jobs and expand credit access to Maryland small 
businesses. The bill we consider today, H.R. 3854, the Small Business 
Financing and Investment Act of 2009, is a significant part of our 
efforts.
  H.R. 3854 reauthorizes and increases the resources of successful 
programs such as the SBA 7(a), Business Stabilization Loans and the SBA 
Microloan programs. The Small Business Administration 7(a) program 
guarantees long-term loans for business startups and expansions. The 
bill authorizes funds to guarantee $20 billion in 7(a) loans in 2010 
and 2011. The bill extends until 2011 Business Stabilization Loans 
which provide $50,000 each for qualifying small businesses to make 
payments on existing loans. The bill also helps provide small 
businesses with short-term, working capital through the SBA Microloan 
program. Under the program, small businesses and not-for-profit child 
care centers can qualify for loans up to $35,000 to use for equipment, 
supplies, inventory and other business necessities.
  The bill renews and expands the resources of the public/private 
partnership programs that serve small businesses such as community

[[Page 26161]]

development programs, the Small Business Investment Company and the New 
Markets Venture Capital Program.
  The SBA works with certified development companies to contribute to 
the economic development of communities. These public/private 
partnerships provide community small businesses with long-term loans to 
expand and modernize with the purpose of creating local jobs. This bill 
authorizes the SBA to guarantee no less than $9 billion of these 
community directed loans in 2010 and 2011.
  The bill also continues Congress' commitment to the Small Business 
Investment Company by authorizing the SBA to guarantee $5 billion in 
loans in 2010 and $5.5 billion in 2011 for the program. The Small 
Business Investment Company licenses private investment firms to borrow 
Treasury money and make loans to small businesses. The loans are made 
with the long-term growth in mind since such investments can take years 
before becoming profitable. Since its creation in 1958, the Small 
Business Investment Company has provided nearly 100,000 small 
businesses with the capital they need to develop and grow.
  The bill also reauthorizes the New Markets Venture Capital Program to 
promote economic development and job creation in low-income areas with 
$100 million in loans and loan guarantees for qualifying venture 
capital companies engaged in small business and job creation and 
economic development.
  The latest reports and statistics catalogue the continued difficulty 
small businesses are experiencing as they attempt to access credit. The 
Nation's rising unemployment statistics emphasize the urgency of the 
problem. The resources provided by this bill should help American small 
businesses cope as the country struggles to right itself in the 
aftermath of the greatest economic downturn the world has ever known. I 
urge my colleagues to join me in support of the bill.
  Mr. LANGEVIN. Mr. Chair, I rise in strong support of H.R. 3854, the 
Small Business Financing and Investment Act. This legislation will 
directly support small business jobs in Rhode Island by extending 
certain small business American Recovery and Reinvestment Act 
provisions and updating SBA programs to help meet the needs of 
businesses.
  Small businesses have borne the brunt of this economic crisis. I 
continue to hear from many small business owners in Rhode Island that 
accessing credit remains a significant problem. Remarkably, small 
businesses make up 96 percent of all employers in Rhode Island, and 
their inability to access credit to keep their businesses operating has 
clearly added to our high unemployment rate of 13 percent.
  It is imperative that our small businesses have access to the tools 
they need to weather this economic downturn, as well as to keep and 
create jobs. H.R. 3854 does this by extending Recovery Act provisions 
that eliminated fees on SBA loans and guaranteeing these loans at 90 
percent. This gives local banks and credit unions the confidence to 
lend to small businesses. This bill also raises the cap level on 7(a) 
loans from $2 million to $3 million, makes microloans more affordable 
for budding entrepreneurs, and streamlines the cumbersome loan 
application process.
  Additionally, the legislation boosts programs that help small 
manufacturers and improves a renewable energy investment program to 
encourage small enterprises that are researching alternative and 
renewable energy solutions. H.R. 3854 also provides tools for veterans 
to start their own businesses and also makes permanent the Community 
Express program, which promotes lending to small businesses owned by 
women and economically disadvantaged individuals.
  I encourage my colleagues to support H.R. 3854, which will help our 
small businesses grow, keep people employed and create new jobs. A few 
months ago, I had the chance to visit Jamiel's Shoe World, a small, 
family-owned business and a Rhode Island institution, which was able to 
take advantage of a loan guaranteed by the stimulus bill--a loan that 
enabled them to keep their doors open and keep Rhode Islanders 
employed. I look forward to seeing this legislation signed into law so 
that other small Rhode Island businesses can access the capital they 
need to flourish.
  Ms. MATSUI. Mr. Chair, I rise today in strong support of the Small 
Business Financing and Investment Act. I also want to congratulate 
Chairwoman Velazquez and the Small Business Committee for bringing this 
bill before us today.
  We are all aware of the importance of small businesses in our 
neighborhoods and communities.
  While we rely on them to produce goods and services, we also depend 
on them to create and sustain jobs. Small businesses are the engine of 
economic growth and innovation.
  Nationally they represent more than 90 percent of all business in our 
country and have generated 70 percent of all new jobs over the past 
decade.
  In my home district of Sacramento, small businesses are an integral 
part of our economy.
  In fact, most Sacramentans obtain their first job through a small 
business.
  In today's economic recession, however, many small businesses are 
struggling to make payroll, retain their employees, and expand their 
operations.
  Over the last few months I've held two, separate, ``Small Business 
Workshops'' in Sacramento to help existing small business owners 
understand the stimulus legislation, obtain financing and find new 
opportunities through government programs.
  These two workshops attracted more than 800 local small businesses in 
Sacramento.
  At these workshops, I heard from small business owners who were eager 
to be connected to business counseling resources, learn more about 
financing opportunities, SBA loan products, and government contracting 
opportunities.
  I also heard from local small engineering firms who expressed concern 
that they did not qualify for an SBA loan because of their Standard 
Size.
  I thank Chairwoman Velazquez for joining me in writing to SBA 
Administrator Karen Mills to move quickly to consider changing the size 
standard applied to small engineering firms.
  Mr. Chair, the failure to promptly adjust the standard could inflict 
long-term damage to businesses within the engineering community and 
reduce federal contract participation opportunities.
  The American Recovery and Reinvestment Act that we passed earlier 
this year included dozens of new opportunities for small businesses 
through government contracts and grant programs totaling nearly $9 
billion in lending since its enactment.
  The bill before us today would build on these successes by infusing 
more than $44 billion for new lending and investment for small 
businesses.
  It would also establish a new public-private partnership at the SBA 
and improve access to capital by increasing loan sizes.
  Finally, it would create a new program to help small health 
practitioners adopt Health Information Technology, while increasing 
investment in small companies that are researching alternative and 
renewable energy solutions.
  Mr. Chair, the federal government, in partnership with the private 
sector, is taking demonstrative action today to strengthen small 
businesses.
  I commend our Leadership for bringing the Small Business Financing 
and Investment Act to the floor, and for their ongoing efforts to 
assist America's small businesses.
  I urge my colleagues to support passage of the pending legislation.
  Mr. REYES. Mr. Chair, I rise today in support of H.R. 3854, the Small 
Business Financing and Investment Act of 2009. This bill will assist 
small businesses across the country by increasing the amount of funding 
that is available to them as well as streamlining many of the current 
SBA application processes.
  There is a vibrant business community in my district of El Paso, 
Texas, with the Greater El Paso Chamber of Commerce, the El Paso 
Hispanic Chamber of Commerce, and the El Paso Small Business Consortium 
all playing a key role to open doors for many of our local 
entrepreneurs. Small businesses are a vital part of El Paso's economy, 
and I support this bill because it will help small firms access larger 
amounts of capital which is critical during these difficult economic 
times.
  I am particularly pleased with the provisions of the bill that make 
permanent the Community Express and the Veteran Participation Loan 
Programs. These programs share a common goal of assisting borrowers who 
have not accessed SBA programs in the past or who have traditionally 
had limited access to capital. The Community Express Program is an 
important tool used by the El Paso Hispanic Chamber of Commerce to 
provide funding to local firms that are deemed un-bankable by 
conventional lenders. El Paso's growing military community will also 
benefit from the higher guarantees and lower cost loans available to 
veterans interested in starting their own businesses.
  Mr. Chair, I support this legislation because I believe it will 
improve the efficiency and transparency of the SBA's programs as well 
as provide essential capital to small firms. I urge my colleagues to 
vote in favor of this bill.
  Mr. THOMPSON of Mississippi. Mr. Chair, I rise in firm support of 
H.R. 3854, the Small Business Financing and Investment Act.
  As a vital part of our economy, small businesses account for at least 
65 percent of American jobs.

[[Page 26162]]

  The legislation we are considering today provides a much-needed 
increase in loans for the nation's small businesses.
  During a time of economic recession, it is increasingly important 
that we provide access to start-up capital, long term financing, and 
other forms of investment capital to small businesses.
  Hit particularly hard by these rough economic times, small businesses 
receive greater access to critical financing through this legislation.
  The bill also provides financing opportunities for rural communities 
through the Rural Lender Outreach Program.
  Another critical provision in H.R. 3854 creates a grant program for 
companies to begin recovery efforts after a natural disaster.
  I am confident that the nation's underserved small businesses--
particularly minority owned businesses--will be better served because 
of this important legislation.
  Access to capital is one of the greatest challenges preventing fair 
competition for small businesses.
  H.R. 3854 addresses accessibility to financing and overall 
investment.
  I urge my colleagues to support this important legislation.
  Mr. BOSWELL. Mr. Chair, I rise today in support of the manager's 
amendment, and the underlying bill, H.R. 3854, the Small Business 
Financing and Investment Act of 2009.
  Thank you Chairwoman Velazquez for including an amendment I submitted 
to Rules.
  This amendment will ensure that Small Business Administration loans 
may be used to purchase facilities and equipment that have been left 
behind by closed manufacturing plants.
  Each of us has seen communities devastated by the loss of a factory--
from the closing of automotive businesses, to the buy-out of Maytag 
Corporation in my own district.
  On Tuesday, many of us read in the Washington Post that an electronic 
car company will be taking over a GM building in Delaware.
  I believe we must continue to incentivize this practice--but on a 
broader scale.
  In my own district I have seen companies from within and outside Iowa 
purchase Maytag campus facilities, our own Iowa Telecom, Trinity Towers 
wind energy, and a new and locally owned small business, Madhouse 
Brewery.
  The empty factory buildings scattered across our nation represent the 
loss of jobs, tough times, and hard choices for families and community 
leaders.
  I believe these buildings can be used to better our districts and 
states. By helping small businesses that are rooted in the community 
purchase these buildings or equipment, we will help bring hope to our 
towns that have suffered such losses.
  This amendment and legislation will empower the financial stability 
of America's small businesses. I urge my colleagues to support this 
amendment and H.R. 3854.
  Mr. ETHERIDGE. Mr. Chair, I rise in support of H.R. 3854, the Small 
Business Financing and Investment Act of 2009.
  While our economy has begun to show some signs of rebounding from the 
recession, there is still a long way to go before we have returned to 
full strength. Far too many Americans are looking for work and the 
unemployment rate remains high, reaching into the double digits in my 
State of North Carolina. Many businesses are finding it difficult to 
obtain the credit they need to operate. H.R. 3854 will benefit the 
small businesses that form the backbone of our economy and serve as our 
biggest job creators.
  H.R. 3854 contains several provisions that will help finance new 
small businesses and allow them access to more capital. This bill 
supports public and private partnerships that invest capital into new 
startups, and makes microloans more affordable for budding 
entrepreneurs. For existing small businesses, this bill improves the 
Small Business Administration's 7(a) loan initiative by raising loan 
amounts and maintaining the fee reductions and guarantee increases that 
were included in the American Recovery and Reinvestment Act. I am also 
pleased that his bill contains provisions that help rural businesses 
and veteran-owned businesses obtain loans. H.R. 3854 is expected to 
support $44 billion in small business lending, which could create or 
save over 1 million jobs.
  I support stronger lending tools for our nation's small businesses 
and I support the Small Business Financing and Investment Act of 2009. 
I urge my colleagues to join me in voting for its passage.
  Mr. WU. Mr. Chair, I rise today in support of H.R. 3854, the Small 
Business Financing and Investment Act.
  I also want to thank my colleague from Oregon, Congressman Kurt 
Schrader, for bringing this important bill to the floor.
  H.R. 3854 will create incentives for small business lending, reduce 
bureaucracy, and increase the size of SBA loans in order to help loosen 
credit and get capital flowing again to small businesses.
  Furthermore, H.R. 3854 addresses an important issue tied to health 
care reform, the cost of health information technology for small 
practice providers. These provisions were part of Congresswoman 
Dahlkemper's Small Business Health Information Technology Financing 
Act.
  This bill will streamline loan processing for health information 
technology by reducing paperwork for both the lender and applicant, and 
require a 72-hour response time by SBA on decisions to guaranty loans. 
Under the bill, health information technology loans will be guaranteed 
90 percent by the SBA, a factor that will encourage robust lender 
participation in the program.
  Health IT has the potential to reduce costs and medical errors, while 
encouraging greater efficiency. It will be an essential component of 
our efforts to reform health care.
  However, to use health IT most effectively, we must first address 
three barriers to its widespread adoption: technical standards and 
interoperability, workforce training, and the realignment of financial 
incentives.
  This bill can help to address a part of the third, which involves the 
cost of implementation.
  I have long believed that we should continue to look at ways that we 
can create more incentives for small practice doctors to adopt health 
information technology. It's important to note that 80 percent of all 
outpatient visits take place in practices with 10 or fewer doctors. It 
is essential that these practices receive the assistance they need in 
order to be able to implement health IT.
  The larger barrier to health IT adoption is that its associated costs 
and benefits are not realized equally between health care providers and 
payors. The financial benefit of health IT accrues to the payor--the 
insurer--while providers are the parties most likely to bear the cost.
  The challenges of implementing health IT vary greatly from large 
health systems to smaller medical practices. Small medical practices, 
which may have to incur initial costs of up to $200,000--around $40,000 
per physician--for a system, may see little, if any, financial benefit 
from its applications. It's no wonder health IT has a deployment rate 
of less than 20 percent in these offices.
  I have been working with the Education and Labor Committee and 
leadership to address this issue in health care reform moving forward.
  H.R. 3854 will provide financial assistance to these small practices, 
and I wholeheartedly support this legislation.
  Ms. RICHARDSON. Mr. Chair, I rise in strong support of H.R. 3854 
``The Small Business Financing and Investment Act'' which will help 
support our small businesses and hasten our economic recovery. As we 
all know, small businesses are the backbone of our economy. More than 
half of all Americans work at or own a small business. Small businesses 
have been responsible for most of the new jobs created in this country. 
Anyone who talks about getting our economy on track and does not talk 
about what we need to do for small business is missing a huge piece of 
the puzzle.
  I firmly support H.R. 3854 because, among other things, it channels 
investment capital into small business start-ups through public private 
partnerships, makes microloans more affordable for budding 
entrepreneurs, and reduces fees for lending programs to help more small 
businesses afford to raise the capital they need to succeed. Equally 
important, the legislation will provide much needed assistance to 
entrepreneurs and communities that need it most by expanding equity 
investment to low income communities and helping rural and veteran-
owned businesses obtain loans.
  Mr. Chair, H.R. 3854 all told the bill is expected to support about 
$44 billion in small business lending annually, which will help to 
create or save approximately 1.5 million jobs each year. For our 
economy to recover and continue to grow, it needs to create jobs for 
persons seeking work. This legislation will create jobs and thus is 
worthy of our support. I urge all of my colleagues to join me in voting 
for H.R. 3854.
  The CHAIR. All time for general debate has expired.
  Pursuant to the rule, the amendment printed in part A of House Report 
111-317 is adopted. The bill, as amended, shall be considered as an 
original bill for the purpose of further amendment under the 5-minute 
rule and shall be considered read.
  The text of the bill, as amended, is as follows:

[[Page 26163]]



                               H.R. 3854

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Small 
     Business Financing and Investment Act of 2009''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.

              TITLE I--SMALL BUSINESS LENDING ENHANCEMENTS

Sec. 101. Small lender outreach program.
Sec. 102. Rural lending outreach program.
Sec. 103. Community Express Program made permanent.
Sec. 104. Increased veteran participation program made permanent.
Sec. 105. Leasing policy.
Sec. 106. National lender training program.
Sec. 107. Applications for repurchase of loans.
Sec. 108. Alternative size standard.
Sec. 109. Pilot program authority.
Sec. 110. Loans to cooperatives.
Sec. 111. Capital backstop program.
Sec. 112. Loans to finance goodwill.
Sec. 113. Appellate process and ombudsman.
Sec. 114. Extension of recovery and relief loan benefits.
Sec. 115. Reduced documentation for business stabilization loans.
Sec. 116. Expanded eligibility for business stabilization loans.
Sec. 117. Increased amount of business stabilization loans.
Sec. 118. Extension of business stabilization loans.
Sec. 119. SBA secondary market lending authority made permanent.
Sec. 120. SBA secondary market lending authority expanded.
Sec. 121. Increased loan limits.
Sec. 122. Real estate appraisals.
Sec. 123. Additional support for Express Loan Program.
Sec. 124. Authorization of appropriations.

            TITLE II--CDC ECONOMIC DEVELOPMENT LOAN PROGRAM

                     Subtitle A--General Provisions

Sec. 201. Program levels.
Sec. 202. Definitions.

              Subtitle B--Certified Development Companies

Sec. 211. Certified development companies.
Sec. 212. Certified development company; operational requirements.
Sec. 213. Accredited lenders program.
Sec. 214. Premier certified lender program.
Sec. 215. Multi-State operations.
Sec. 216. Guaranty of debentures.
Sec. 217. Economic development through debentures.
Sec. 218. Project funding requirements.
Sec. 219. Private debenture sales and pooling of debentures.
Sec. 220. Foreclosure and liquidation of loans.
Sec. 221. Reports and regulations.
Sec. 222. Program name.

                       Subtitle C--Miscellaneous

Sec. 231. Report on standard operating procedures.
Sec. 232. Alternative size standard.

                   TITLE III--MICROLENDING EXPANSION

Sec. 301. Microloan credit building initiative.
Sec. 302. Flexible credit terms.
Sec. 303. Increased program participation.
Sec. 304. Increased limit on intermediary borrowing.
Sec. 305. Expanded borrower education assistance.
Sec. 306. Interest rates and loan size.
Sec. 307. Reporting requirement.
Sec. 308. Surplus interest rate subsidy for businesses.
Sec. 309. Authorization of appropriations.

       TITLE IV--SMALL BUSINESS INVESTMENT COMPANY MODERNIZATION

Sec. 401. Increased investment from States.
Sec. 402. Expedited licensing for experienced applicants.
Sec. 403. Revised leverage limitations for successful SBICs.
Sec. 404. Consistency for cost control.
Sec. 405. Investment in veteran-owned small businesses.
Sec. 406. Limitations on prepayment.
Sec. 407. Investment with certain passive entities.
Sec. 408. Investment in smaller enterprises.
Sec. 409. Capital impairment.
Sec. 410. Tangible net worth.
Sec. 411. Development of agency record.
Sec. 412. Program levels.

 TITLE V--INVESTMENT IN SMALL MANUFACTURERS AND RENEWABLE ENERGY SMALL 
                               BUSINESSES

        Subtitle A--Enhanced New Markets Venture Capital Program

Sec. 501. Expansion of New Markets Venture Capital Program.
Sec. 502. Improved nationwide distribution.
Sec. 503. Increased investment in small business concerns engaged 
              primarily in manufacturing.
Sec. 504. Expanded uses for operational assistance in manufacturing.
Sec. 505. Updating definition of low-income geographic area.
Sec. 506. Expanding operational assistance to conditionally approved 
              companies.
Sec. 507. Limitation on time for final approval.
Sec. 508. Streamlined application for New Markets Venture Capital 
              Program.
Sec. 509. Elimination of matching requirement.
Sec. 510. Simplified formula for operational assistance grants.
Sec. 511. Authorization of appropriations and enhanced allocation for 
              small manufacturing.

   Subtitle B--Expanded Investment in Small Business Renewable Energy

Sec. 521. Expanded investment in renewable energy.
Sec. 522. Renewable Energy Capital Investment Program made permanent.
Sec. 523. Expanded eligibility for small businesses.
Sec. 524. Expanded uses for operational assistance in manufacturing and 
              small businesses.
Sec. 525. Expansion of Renewable Energy Capital Investment Program.
Sec. 526. Simplified fee structure to expedite implementation.
Sec. 527. Increased operational assistance grants.
Sec. 528. Authorizations of appropriations.

   TITLE VI--SMALL BUSINESS HEALTH INFORMATION TECHNOLOGY FINANCING 
                                PROGRAM

Sec. 601. Small business health information technology financing 
              program.

        TITLE VII--SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM

Sec. 701. Small business early-stage investment program.

                TITLE VIII--SBA DISASTER PROGRAM REFORM

Sec. 801. Revised collateral requirements.
Sec. 802. Increased limits.
Sec. 803. Revised repayment terms.
Sec. 804. Revised disbursement process.
Sec. 805. Grant program.
Sec. 806. Regional disaster working groups.
Sec. 807. Outreach grants for loan applicant assistance.
Sec. 808. Authorization of appropriations.

                         TITLE IX--REGULATIONS

Sec. 901. Regulations.

              TITLE I--SMALL BUSINESS LENDING ENHANCEMENTS

     SEC. 101. SMALL LENDER OUTREACH PROGRAM.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) 
     is amended by adding at the end the following:
       ``(34) Small lender outreach program.--The Administrator 
     shall establish and carry out a program to provide support to 
     regional, district, and branch offices of the Administration 
     to assist small lenders, who do not participate in the 
     Preferred Lenders Program, to participate in the programs 
     under this subsection.''.

     SEC. 102. RURAL LENDING OUTREACH PROGRAM.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(35) Rural lending outreach program.--
       ``(A) In general.--The Administrator shall establish and 
     carry out a rural lending outreach program (hereinafter 
     referred to in this paragraph as the `program') to provide 
     loans under this subsection in accordance with this 
     paragraph.
       ``(B) Maximum participation.--A loan under the program 
     shall include the maximum participation levels by the 
     Administrator permitted for loans made under this subsection.
       ``(C) Maximum loan amount.--The maximum amount of a loan 
     under the program shall be $250,000.
       ``(D) Use of rural lenders.--The program shall be carried 
     out through lenders located in a rural area (as such term is 
     defined under subsection (m)(11)(C)) or, if a small business 
     concern located in a rural area does not have a lender 
     located within 30 miles of the principal place of business of 
     such concern, through any lender chosen by such concern that 
     provides loans under this subsection.
       ``(E) Time for approval.--The Administrator shall approve 
     or disapprove a loan under the program within 36 hours.
       ``(F) Documentation.--The program shall use abbreviated 
     application and documentation requirements.
       ``(G) Credit standards.--Minimum credit standards, as the 
     Administrator considers necessary to limit the rate of 
     default on loans made under the program, shall apply.''.

     SEC. 103. COMMUNITY EXPRESS PROGRAM MADE PERMANENT.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(36) Community express program.--
       ``(A) In general.--The Administrator shall carry out a 
     Community Express Program to provide loans under this 
     subsection in accordance with this paragraph.
       ``(B) Requirements.--For a loan made under the Community 
     Express Program, the following shall apply:
       ``(i) The loan shall be in an amount not exceeding 
     $250,000.

[[Page 26164]]

       ``(ii) The loan shall be made to a small business concern 
     the majority ownership interest of which is directly held by 
     individuals the Administrator determines are, without regard 
     to the geographic location of such individuals, women, 
     members of qualified Indian tribes, socially or economically 
     disadvantaged individuals, veterans, or members of the 
     reserve components of the Armed Forces.
       ``(iii) The loan shall comply with the collateral policy of 
     the Administration.
       ``(iv) The loan shall include terms requiring the lender to 
     provide, at the expense of the lender, technical assistance 
     to the borrower through the lender or a third-party provider.
       ``(v) The Administrator shall approve or disapprove the 
     loan within 36 hours.''.

     SEC. 104. INCREASED VETERAN PARTICIPATION PROGRAM MADE 
                   PERMANENT.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended--
       (1) by redesignating the second paragraph (32), 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) in paragraph (33), as so redesignated by paragraph (1) 
     of this section--
       (A) by striking ``pilot program'' each place it appears and 
     inserting ``program'';
       (B) by striking subparagraphs (C) and (F); and
       (C) by redesignating subparagraphs (D) and (E) as 
     subparagraphs (C) and (D), respectively.

     SEC. 105. LEASING POLICY.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by striking 
     paragraph (28) and inserting the following:
       ``(28) Leasing.--If a loan under this subsection is used to 
     acquire or construct a facility, the assisted small business 
     concern--
       ``(A) shall permanently occupy and use not less than 50 
     percent of the space in such facility; and
       ``(B) may, on a temporary or permanent basis, lease to 
     others not more than 50 percent of the space in such 
     facility.''.

     SEC. 106. NATIONAL LENDER TRAINING PROGRAM.

       (a) In General.--Section 7(a) of the Small Business Act (15 
     U.S.C. 636(a)), as amended by this Act, is further amended by 
     adding at the end the following:
       ``(37) National lender training program.--
       ``(A) In general.--The Administrator shall establish and 
     carry out, through the regional offices of the 
     Administration, a lender training program for new and 
     existing lenders under this subsection with respect to the 
     lending systems, policies, and procedures of the 
     Administration.
       ``(B) Fees.--The Administrator shall charge a fee for the 
     program established under subparagraph (A) to reduce the cost 
     of such program to zero.
       ``(C) Limitation.--The program established under 
     subparagraph (A) may not be carried out by contract with a 
     nongovernmental entity.''.
       (b) Participation.--An entity may not be permitted to 
     participate in any program under the Small Business Act (15 
     U.S.C. 631 et seq.) or the Small Business Investment Act of 
     1958 (15 U.S.C. 661 et seq.) that is amended under this Act, 
     as a lending or investment entity or as an agent of the Small 
     Business Administration, unless such entity satisfies the 
     following:
       (1) The entity has as the primary mission of the entity the 
     financing or development of small business concerns.
       (2) The entity has a full-time staff dedicated to loan 
     making activities, investment activities, or entrepreneurial 
     development training.
       (3) The entity does not significantly participate in 
     activities unrelated to the primary mission of the entity.

     SEC. 107. APPLICATIONS FOR REPURCHASE OF LOANS.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(38) Applications for repurchase of loans.--
       ``(A) In general.--Not later than 45 days after the date of 
     the receipt of a claim from a lender for proper payment of 
     the guaranteed portion of a loan under this subsection due to 
     default, the Administrator shall make a final determination 
     with respect to the approval or denial of such claim.
       ``(B) Late determinations.--If the Administrator does not 
     make a final determination under subparagraph (A) in the time 
     period specified in such subparagraph, the claim shall be 
     approved and paid promptly.''.

     SEC. 108. ALTERNATIVE SIZE STANDARD.

       (a) In General.--Section 3(a) of the Small Business Act (15 
     U.S.C. 632(a)) is amended by adding at the end the following:
       ``(5) In addition to any other size standard under this 
     subsection, the Administrator shall establish and permit a 
     lender making a loan under section 7(a) to use an alternative 
     size standard. The alternative size standard shall be based 
     on factors including the maximum tangible net worth and 
     average net income of a business concern.''.
       (b) Applicability.--Until the Administrator establishes 
     under section 3(a)(5) of the Small Business Act, as added by 
     subsection (a) of this section, an alternative size standard 
     for use by a lender making a loan under section 7(a) of such 
     Act, the alternative size standard in section 121.301(b) of 
     title 13, Code of Federal Regulations, shall apply in such a 
     case.

     SEC. 109. PILOT PROGRAM AUTHORITY.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by striking 
     paragraph (25) and inserting the following:
       ``(25) Limitation on conducting pilot projects.--
       ``(A) Limitation on number.--Not more than 10 percent of 
     the total number of loans guaranteed in any fiscal year under 
     this subsection may be awarded as part of a pilot program.
       ``(B) Dollar limitations.--
       ``(i) In general.--With respect to any pilot program under 
     this subsection established on or after the date of the 
     enactment of the Small Business Financing and Investment Act 
     of 2009, no loan shall be made under such program if such 
     loan would result in the total amount of loans made during a 
     fiscal year under all such programs to be in excess of 5 
     percent of the total amount of loans guaranteed in such 
     fiscal year under this subsection.
       ``(ii) Certain pre-existing programs.--With respect to any 
     pilot program under this subsection established before the 
     date of the enactment of the Small Business Financing and 
     Investment Act of 2009, no loan shall be made under such 
     program if such loan would result in the total amount of 
     loans made during a fiscal year under all such programs to be 
     in excess of 10 percent of the total amount of loans 
     guaranteed in such fiscal year under this subsection.
       ``(C) Expiration.--
       ``(i) In general.--Except as provided in clause (iii), the 
     duration of any pilot program under this subsection may not 
     exceed 3 years.
       ``(ii) Designation as new program.--For purposes of this 
     subparagraph, a pilot program shall not be treated as a new 
     pilot program solely on the basis of a modification or change 
     in the pilot program, including the change of its name.
       ``(iii) Existing programs.--With respect to any pilot 
     program in existence on the date of the enactment of the 
     Small Business Financing and Investment Act of 2009, such 
     program may continue in effect for a period not exceeding 3 
     years after such date without regard to the duration of such 
     program before such date.
       ``(D) Regulations.--
       ``(i) In general.--With respect to each pilot program under 
     this subsection, including each pilot program in existence on 
     the date of the enactment of the Small Business Financing and 
     Investment Act of 2009, the Administrator shall--

       ``(I) issue regulations for such program after providing 
     notice in the Federal Register and an opportunity for 
     comment; and
       ``(II) ensure that such regulations are published in the 
     Code of Federal Regulations.

       ``(ii) Pilot programs established after date of 
     enactment.--With respect to any pilot program established 
     after the date of the enactment of the Small Business 
     Financing and Investment Act of 2009, such program shall not 
     take effect until the requirements under this subparagraph 
     are satisfied.
       ``(E) Repeal of authority to waive certain rules.--
       ``(i) In general.--Notwithstanding section 120.3 of title 
     13, Code of Federal Regulations, the Administrator may not 
     from time to time suspend, modify, or waive rules for a 
     limited period of time to test new programs or ideas with 
     respect to this subsection, unless such suspension, 
     modification, or waiver is explicitly authorized by Act of 
     Congress.
       ``(ii) Existing pilot programs.--Nothing under clause (i) 
     may be construed to affect a pilot program in existence on 
     the date of the enactment of the Small Business Financing and 
     Investment Act of 2009.
       ``(F) Pilot program.--For purposes of this paragraph, the 
     term `pilot program' means any lending program initiative, 
     project, innovation, or other activity not specifically 
     authorized by Act of Congress.''.

     SEC. 110. LOANS TO COOPERATIVES.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(39) Cooperatives.--The Administration may provide loans 
     under this subsection to any cooperative that--
       ``(A) is not organized as a tax-exempt entity;
       ``(B) is engaged in a legal business activity;
       ``(C) obtains financial benefits for the cooperative and 
     for the members of such cooperative; and
       ``(D) is eligible under applicable size standards of the 
     Administration, including that any business entity that is a 
     member of such cooperative is eligible under applicable size 
     standards of the Administration.''.

     SEC. 111. CAPITAL BACKSTOP PROGRAM.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by adding at the 
     end the following:

[[Page 26165]]

       ``(40) Capital backstop program.--
       ``(A) In general.--The Administrator shall establish a 
     process under which a small business concern may submit an 
     application to the Administrator for the purpose of securing 
     a loan under this subsection. With respect to such 
     application, the Administrator shall collect all information 
     necessary to determine the creditworthiness and repayment 
     ability of an applicant and shall determine if such 
     application meets basic eligibility and credit standards for 
     a loan under this subsection.
       ``(B) Participation of lenders.--
       ``(i) In general.--The Administrator shall establish a 
     process under which the Administrator makes available to 
     lenders each loan application submitted and determined to 
     meet basic eligibility and credit standards under 
     subparagraph (A) for the purpose of such lenders originating, 
     underwriting, closing, and servicing the loan for which the 
     applicant applied.
       ``(ii) Eligibility.--Lenders are eligible to receive a loan 
     application described in clause (i) if they participate in 
     the programs established under this subsection.
       ``(iii) Local lenders.--The Administrator shall first make 
     available a loan application described in clause (i) to 
     lenders within 100 miles of the principal office of the loan 
     applicant.
       ``(iv) Preferred lenders.--If a lender described in clause 
     (iii) does not agree to originate, underwrite, close, and 
     service the loan applied for within 5 business days of 
     receiving a loan application described in clause (i), the 
     Administrator shall subsequently make available such loan 
     application to lenders in the Preferred Lenders Program under 
     paragraph (2)(C)(ii) of this subsection.
       ``(v) Authority of administration to lend.--If a lender 
     described in clauses (iii) or (iv) does not agree to 
     originate, underwrite, close, and service the loan applied 
     for within 10 business days of receiving a loan application 
     described in clause (i), the Administrator shall originate, 
     underwrite, close, and service such loan.
       ``(C) Asset sales.--The Administrator shall offer to sell 
     loans made by the Administrator under this paragraph. Such 
     sales shall be made through the semi-annual public 
     solicitation (in the Federal Register and in other media) of 
     offers to purchase. The Administrator may contract with 
     vendors for due diligence, asset valuation, and other 
     services related to such sales. The Administrator may not 
     sell any loan under this subparagraph for less than 90 
     percent of the net present value of the loan, as determined 
     and certified by a qualified third party.
       ``(D) Loans not sold.--The Administrator shall maintain and 
     service loans made by the Administrator under this paragraph 
     that are not sold through the asset sales under this 
     paragraph.
       ``(E) Effective dates.--This paragraph shall have effect on 
     a date if--
       ``(i) such date occurs during a period that--

       ``(I) begins on the date the Bureau of Economic Analysis, 
     or any successor organization, makes a determination that the 
     gross domestic product of the United States has decreased for 
     three consecutive quarters; and
       ``(II) ends on the date the Bureau of Economic Analysis, or 
     any successor organization, makes a determination that the 
     gross domestic product of the United States has increased for 
     two consecutive quarters; and

       ``(ii) the number of loans provided under this subsection 
     prior to such date in the fiscal year including such date is 
     at least 30 percent less than the number of such loans 
     provided prior to the same point in the previous fiscal year.
       ``(F) Implementation.--The Administrator shall establish a 
     group of at least 250 individuals available to carry out 
     activities under this paragraph on any date on which this 
     paragraph has effect under subparagraph (E). The 
     Administrator shall provide to such group the training 
     necessary to carry out activities under this paragraph.
       ``(G) Application of other law.--Nothing in this paragraph 
     shall be construed to exempt any activity of the 
     Administrator under this paragraph from the Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661 et seq.).
       ``(H) Authorization of appropriations.--
       ``(i) Program levels.--The Administrator is authorized to 
     make loans under this paragraph in an amount that is equal to 
     half the amount authorized for loans under this subsection 
     other than loans under this paragraph.
       ``(ii) Authorization of appropriations.--In addition to 
     amounts made available to carry out this subsection, there 
     are authorized to be appropriated such sums as may be 
     necessary to carry out this paragraph.''.

     SEC. 112. LOANS TO FINANCE GOODWILL.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(41) Goodwill.--The Administrator may not apply an 
     application, processing, or approval standard to a loan for 
     the purpose of financing goodwill under this subsection, 
     unless such standard applies to all loans under this 
     subsection.''.

     SEC. 113. APPELLATE PROCESS AND OMBUDSMAN.

       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. APPELLATE PROCESS AND OMBUDSMAN.

       ``(a) Appellate Process.--
       ``(1) In general.--Not later than 270 days after the date 
     of the enactment of the Small Business Financing and 
     Investment Act of 2009, the Administrator shall establish an 
     independent appellate process within the Administration. The 
     process shall be available to review material determinations 
     made by the Administration that affect a lender or investment 
     company that participates or is applying to participate in a 
     program administered by the Administration.
       ``(2) Review process.--In establishing the independent 
     appellate process under paragraph (1), the Administrator 
     shall ensure that--
       ``(A) any appeal of a material determination by the 
     Administration is heard and resulting recommendations are 
     provided expeditiously; and
       ``(B) appropriate safeguards exist for protecting the 
     appellant from retaliation by Administration employees.
       ``(3) Comment period.--Not later than 180 days after the 
     date of the enactment of the Small Business Financing and 
     Investment Act of 2009, the Administrator shall provide an 
     opportunity for notice and comment on proposed guidelines for 
     the establishment of an independent appellate process under 
     this section.
       ``(b) Agency Ombudsman.--
       ``(1) Establishment.--Not later than 180 days after the 
     date of the enactment of the Small Business Financing and 
     Investment Act of 2009, the Administrator shall appoint an 
     ombudsman.
       ``(2) Duties.--The ombudsman appointed in accordance with 
     paragraph (1) shall--
       ``(A) act as a liaison between the Administration and any 
     lender or investment company that participates or is applying 
     to participate in a program administered by the 
     Administration with respect to a problem such entity may have 
     in dealing with the Administration resulting from a material 
     determination made by the Administration; and
       ``(B) ensure that safeguards exist to encourage 
     complainants to come forward and preserve confidentiality.
       ``(c) Other Authority.--An individual carrying out the 
     independent appellate process established under subsection 
     (a) or the position of ombudsman established under subsection 
     (b) is authorized to--
       ``(1) examine records and documents relating to a matter 
     under review pursuant to such subsections; and
       ``(2) initiate the review of a matter under such 
     subsections if such individual believes that Administration 
     procedures have not been followed as intended with respect to 
     such matter, without regard to whether an appeal or complaint 
     has been made.
       ``(d) Limitations.--
       ``(1) In general.--An individual carrying out the 
     independent appellate process established under subsection 
     (a) or the position of ombudsman established under subsection 
     (b) may not, as a result of the authority provided under this 
     section--
       ``(A) make, change, or set aside a law, policy, or 
     administrative decision;
       ``(B) make binding decisions or determine rights;
       ``(C) directly compel an entity to implement the 
     recommendations of such individual; or
       ``(D) accept jurisdiction over an issue that is pending in 
     a legal forum.
       ``(2) Rule of construction.--Activities carried out under 
     this section may not be construed--
       ``(A) as a formal investigation, formal hearing, or binding 
     decision;
       ``(B) as limiting any remedy or right of appeal;
       ``(C) as affecting any procedure concerning grievances, 
     appeals, or administrative matters under law; or
       ``(D) as a substitute for an administrative or judicial 
     proceeding.
       ``(e) Report.--Not later than one year after the date of 
     the enactment of the Small Business Financing and Investment 
     Act of 2009 and annually thereafter, the Administrator shall 
     submit to the Committee on Small Business of the House of 
     Representatives and the Committee on Small Business and 
     Entrepreneurship of the Senate a report describing and 
     providing the status of appeals made under subsection (a) and 
     complaints made under subsection (b).
       ``(f) Definitions.--In this section, the following apply:
       ``(1) Material determination.--The term `material 
     determination' includes determinations relating to--
       ``(A) applications for payment relating to a loan 
     guarantee; and
       ``(B) the ability of an entity to participate in an 
     Administration loan or investing program.
       ``(2) Independent appellate process.--The term `independent 
     appellate process' means a review by an Administration 
     official who does not directly or indirectly report to the 
     Administration official who made the material determination 
     under review.''.

[[Page 26166]]



     SEC. 114. EXTENSION OF RECOVERY AND RELIEF LOAN BENEFITS.

       (a) Fee Reductions.--Section 501 of title V of division A 
     of the American Recovery and Reinvestment Act of 2009 (Public 
     Law 111-5) is amended--
       (1) in subsection (a) by striking ``September 30, 2010'' 
     and inserting ``September 30, 2011''; and
       (2) in subsection (c) by striking paragraph (2).
       (b) Economic Stimulus Lending Program for Small 
     Businesses.--Section 502(f) of title V of division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5) is amended by striking ``the date 12 months after the 
     date of enactment of this Act'' and inserting ``September 30, 
     2011''.

     SEC. 115. REDUCED DOCUMENTATION FOR BUSINESS STABILIZATION 
                   LOANS.

       Section 506(a) of title V of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5) is 
     amended by adding at the end the following: ``In carrying out 
     such program, the Administrator shall establish and utilize a 
     one-page application for loans under this section and shall 
     authorize lenders to utilize the same documentation and 
     procedural requirements for loans under this section as such 
     lenders utilize for other loans of a similar size and 
     type.''.

     SEC. 116. EXPANDED ELIGIBILITY FOR BUSINESS STABILIZATION 
                   LOANS.

       Section 506(c) of title V of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5) is 
     amended by striking ``but shall not include'' and all that 
     follows through ``enactment of this Act''.

     SEC. 117. INCREASED AMOUNT OF BUSINESS STABILIZATION LOANS.

       Section 506(d) of title V of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5) is 
     amended by striking ``$35,000'' and inserting ``$50,000''.

     SEC. 118. EXTENSION OF BUSINESS STABILIZATION LOANS.

       Section 506(j) of title V of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5) is 
     amended by striking ``September 30, 2010'' and inserting 
     ``September 30, 2011''.

     SEC. 119. SBA SECONDARY MARKET LENDING AUTHORITY MADE 
                   PERMANENT.

       Section 509 of title V of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5) is 
     amended--
       (1) by striking subsection (e); and
       (2) by redesignating subsections (f), (h), and (i) as 
     subsections (e), (f), and (g), respectively.

     SEC. 120. SBA SECONDARY MARKET LENDING AUTHORITY EXPANDED.

       Section 509 of title V of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5), as 
     amended by this Act, is further amended--
       (1) in subsection (c)(1) by adding at the end the 
     following: ``Such process shall include the designation of 
     each lender participating in a program under section 7(a) of 
     the Small Business Act as a Systematically Important 
     Secondary Market Broker-Dealer for purposes of this 
     section.''; and
       (2) in subsection (e), as so redesignated by section 20 of 
     this Act, by adding at the end the following: ``To the extent 
     that the cost of an elimination or reduction of fees is 
     offset by appropriations, the Administrator shall in lieu of 
     the fee otherwise applicable under this subsection collect no 
     fee or reduce fees to the maximum extent possible.''.

     SEC. 121. INCREASED LOAN LIMITS.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended--
       (1) in paragraph (2)(A)--
       (A) in clause (i)--
       (i) by inserting after ``$150,000'' the following: ``and is 
     less than or equal to $2,000,000''; and
       (ii) by striking ``or'' at the end;
       (B) in clause (ii) by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(iii) 50 percent of the balance of the financing 
     outstanding at the time of disbursement of the loan, if such 
     balance exceeds $2,000,000.''; and
       (2) in paragraph (3)(A) by striking ``$2,000,000'' and 
     inserting ``$3,000,000''.

     SEC. 122. REAL ESTATE APPRAISALS.

       Section 7(a)(29) of the Small Business Act (15 U.S.C. 
     636(a)(29)) is amended--
       (1) in the matter preceding subparagraph (A) by striking 
     ``a State licensed or certified appraiser'' and inserting 
     ``an appraiser licensed or certified by the State in which 
     such property is located'';
       (2) in subparagraph (A) by striking ``$250,000'' and 
     inserting ``$400,000''; and
       (3) in subparagraph (B) by striking ``$250,000'' and 
     inserting ``$400,000''.

     SEC. 123. ADDITIONAL SUPPORT FOR EXPRESS LOAN PROGRAM.

       Section 7(a)(18)(B) of the Small Business Act (15 U.S.C. 
     636(a)(18)(B)) is amended by adding after ``under 
     subparagraph (A)(i)'' the following: ``, except that a lender 
     making a loan under paragraph (31) may not retain any 
     percentage of a fee collected under such subparagraph''.

     SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note) 
     is amended by inserting after subsection (e) the following:
       ``(f) Fiscal Years 2010 and 2011 With Respect to Section 
     7(a).--
       ``(1) Program levels.--For the programs authorized by this 
     Act, in each of fiscal years 2010 and 2011 commitments for 
     general business loans authorized under section 7(a) may not 
     exceed $20,000,000,000.
       ``(2) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as may be necessary 
     to carry out paragraph (1).''.

            TITLE II--CDC ECONOMIC DEVELOPMENT LOAN PROGRAM

                     Subtitle A--General Provisions

     SEC. 201. PROGRAM LEVELS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note), 
     as amended by this Act, is further amended by inserting after 
     subsection (f) the following:
       ``(g) Program Levels With Respect to CDC Economic 
     Development Loan Program.--
       ``(1) Fiscal year 2010.--For financings authorized by 
     section 7(a)(13) of this Act and title V of the Small 
     Business Investment Act of 1958, the Administrator is 
     authorized to make $9,000,000,000 in guarantees of debentures 
     for fiscal year 2010.
       ``(2) Fiscal year 2011.--For financings authorized by 
     section 7(a)(13) of this Act and title V of the Small 
     Business Investment Act of 1958, the Administrator is 
     authorized to make $10,000,000,000 in guarantees of 
     debentures for fiscal year 2011.''.

     SEC. 202. DEFINITIONS.

       Section 103 of the Small Business Investment Act of 1958 (5 
     U.S.C. 662) is amended as follows:
       (1) By amending paragraph (6) to read as follows:
       ``(6) the term `development company' means any corporation 
     organized in order to promote economic development and the 
     growth of small business concerns and includes companies 
     chartered under a special State law authorizing them to 
     operate on a statewide basis;''.
       (2) By striking ``and'' at the end of paragraph (18), by 
     striking the period at the end of paragraph (19) and 
     inserting a semicolon, and by adding at the end the following 
     new paragraphs:
       ``(20) the term `certified development company' means a 
     development company that the Administrator has determined 
     meets the criteria set forth in section 501;
       ``(21) the term `local governmental entity' means--
       ``(A) a State or a political subdivision of a State; or
       ``(B) a combination of political subdivisions which--
       ``(i) has been formed to promote economic or community 
     development;
       ``(ii) is composed of representatives of the State or a 
     political subdivision acting in their official capacity; and
       ``(iii) includes an area in an adjacent State if it is part 
     of a local economic area, a rural area, or has a population 
     determined by the Administrator to be insufficient to support 
     the formation of a separate development company;

     such term includes entities meeting the requirements of 
     clauses (i) through (iii), such as, but not limited to, a 
     council of governments, regional development corporation, 
     regional planning commission, or economic development 
     district;
       ``(22) the term `member' means any person authorized to 
     vote for a director of a corporation or the dissolution or 
     merger of a company (for purposes of this definition, a 
     shareholder of a for-profit corporation shall be considered a 
     member);
       ``(23) the terms `rural' and `rural area' shall have the 
     same meaning as those terms are given in section 
     1991(a)(13)(A) of title 7, United States Code; and
       ``(24) the term `small manufacturer' means a small business 
     concern--
       ``(A) the primary business of which is classified in sector 
     31, 32, or 33 of the North American Industrial Classification 
     System; and
       ``(B) all of the production facilities of which are located 
     in the United States.''.

              Subtitle B--Certified Development Companies

     SEC. 211. CERTIFIED DEVELOPMENT COMPANIES.

       Section 501 of the Small Business Investment Act of 1958 
     (15 U.S.C. 695) is amended to read as follows:

     ``SEC. 501. CERTIFIED DEVELOPMENT COMPANIES.

       ``(a) Certified Development Company Debenture Authority.--
     Only development companies certified by the Administrator 
     shall have the authority to issue debentures under this Act.
       ``(b) Certification Standards.--A development company shall 
     be certified for the purposes of issuing debentures if the 
     Administrator determines that it meets each of the following 
     criteria:
       ``(1) Small concern.--
       ``(A) In general.--Except as provided in subparagraph (C) 
     of paragraph (2), the company, including its affiliates, 
     shall have no more than 200 employees.
       ``(B) Control.--Except as provided in paragraph (2) (B) or 
     (C) the company shall not be under the control of any other 
     concern.
       ``(C) Not for profit.--The development company is organized 
     as a not-for-profit corporation.

[[Page 26167]]

       ``(2) Exceptions.--
       ``(A) For profit status.--If a development company was 
     chartered as a for-profit corporation and issued debentures 
     prior to January 1, 1987, the company shall not be required 
     to change its status to not-for-profit in order to be 
     certified.
       ``(B) Affiliation grandfather.--Any company that was 
     authorized by the Administrator to issue debentures before 
     December 31, 2005, shall be eligible for certification 
     without regard to its status as part of, or its affiliation 
     with, any other not-for-profit corporation or local 
     governmental entity unless that not-for-profit corporation or 
     local governmental entity is another entity that issues 
     debentures under this title.
       ``(C) Affiliation with local governmental entities.--Any 
     company that was organized after the date of enactment of the 
     Small Business Financing and Investment Act of 2009 shall be 
     eligible for certification without regard to its status as 
     part of or affiliation with any local governmental entity.
       ``(3) Good standing.--A development company shall be in 
     good standing and comply with all laws, in every State in 
     which it is incorporated or authorized to conduct business.
       ``(4) Membership.--
       ``(A) In general.--The development company shall have at 
     least 25 members.
       ``(B) Voting rights.--No member shall control more than 10 
     percent of the total voting power in the development company.
       ``(C) Residence.--Members must be residents of the State in 
     which the development company is chartered or authorized to 
     do business.
       ``(D) Diversity.--The development company must have at 
     least one member from each of the following:
       ``(i) A local governmental entity.
       ``(ii) A financial institution subject to regulation by a 
     Federal organization belonging to the Federal Financial 
     Institutions Examination Council and that provides long-term 
     fixed asset financing in the commercial market.
       ``(iii) A not-for-profit organization, other than a 
     development company, that is dedicated to promoting economic 
     growth.
       ``(iv) A for-profit business, other than a financial 
     institution described in clause (ii).
       ``(E) Employment status.--Membership in a development 
     company shall not be predicated on employment status and an 
     individual who retired from or was terminated (for reasons 
     other than fraud or the commission of a crime) from an entity 
     described in subparagraph (D) shall be deemed to be from the 
     organization described in that subparagraph.
       ``(5) Board of directors.--
       ``(A) In general.--The development company's board consists 
     of members and each director receives a majority vote of the 
     members unless the development company is a for-profit 
     corporation in which case the board need not consist entirely 
     of members.
       ``(B) Board representation.--There shall be at least one 
     director from not fewer than 3 of the 4 types of 
     organizations specified in paragraph (4)(D) but no single 
     type of organization shall have more than 50 percent 
     representation on the board of the development company. If 
     the development company is a for-profit corporation, 
     financial institution representatives may make up more than 
     50 percent of the board.
       ``(C) Affiliated entity representation restrictions.--A 
     development company that is described in paragraph (1)(C) may 
     have any or all of its board members appointed by entities 
     affiliated with the company and may include common members 
     who also serve on the affiliate's board of directors if the 
     appointment of board members was exercised by an affiliate 
     prior to December 31, 2005.
       ``(D) Special rule for certain development companies.--The 
     board of directors for any development company issuing 
     debentures before December 31, 2005, and incorporated under a 
     State law requiring, or which is interpreted by the State's 
     legal department as imposing specific requirements on, the 
     number and selection of members, board members, or both, and 
     the rights and privileges conferred by such State law, may 
     adhere to such provisions.
       ``(6) Professional management and staff.--
       ``(A) In general.--The development company shall have full-
     time independent professional management, including a chief 
     executive officer to manage the daily operations and a full-
     time professional staff qualified to carry out the functions 
     authorized under this title.
       ``(B) Utilization of staff from affiliated entities.--A 
     development company shall not be denied certification under 
     this section if its chief executive or full-time professional 
     staff is from an affiliated entity as described in paragraph 
     (1)(C).
       ``(C) Staff under contract.--The Administrator shall not 
     deny certification to a development company that contracts 
     for its full time staff if one of the following conditions is 
     met:
       ``(i) The development company is located in a rural area, 
     obtains its staff through contract from another development 
     company that is certified by the Administrator and that 
     development company operates in the same or a contiguous 
     State.
       ``(ii) The development company had issued debentures under 
     this title prior to December 31, 2005, and had contracted 
     with a for-profit business concern to provide staffing and 
     management services.
       ``(c) Applications.--
       ``(1) Development companies issuing debentures before 
     september 30, 2009.--
       ``(A) Short form application.--(i) For any development 
     company that issued debentures pursuant to this title before 
     September 30, 2009, the Administrator shall develop, after an 
     opportunity for notice and comment, no later than 90 days 
     after the date of enactment of the Small Business Financing 
     and Investment Act of 2009, a short-form application that 
     contains sufficient information for the Administrator to 
     determine that the development company currently meets the 
     standards set forth in subsection (b). In developing such 
     application, the Administrator shall be required to limit the 
     amount of paperwork necessary to determine whether the 
     development company meets the standards for certification and 
     may limit the application to the filing of reports previously 
     submitted to the Administrator.
       ``(ii) For those companies that obtain staff through 
     contracts, the application shall include a copy of the 
     contract.
       ``(B) Certification decision.--(i) The Administrator shall 
     certify the development company if the application 
     demonstrates that the applicant meets the standards in 
     subsection (b). The decision to certify or not approve the 
     request for certification shall be made within 7 business 
     days from the date the initial submission of the application 
     is received by the Administrator. If the Administrator takes 
     no action to approve or disapprove within 7 business days, 
     the application for certification is deemed approved and no 
     further action is required by the Administrator or the 
     development company to obtain certification. If the 
     Administrator disapproves the application, the Administrator 
     shall provide in writing within 3 business days the reasons 
     for the disapproval. If such document is not provided within 
     the time specified, the application is deemed approved and no 
     further action is required by the Administrator or the 
     development company to obtain certification.
       ``(ii) For those development companies that submit 
     contracts under subparagraph (A)(ii), the Administrator is 
     limited in rejecting the application only if the 
     Administrator finds that the entity servicing the applicant 
     is no longer able to provide the employees or services needed 
     by the applicant to perform the functions that would be 
     authorized under this title.
       ``(C) Application resubmittal.--If the Administrator 
     disapproves the application for certification and provides a 
     written statement as set forth in subparagraph (B), the 
     development company may file a new application limited solely 
     to addressing the concerns of the Administrator and the 
     certification procedures set forth in subparagraph (B) shall 
     recommence.
       ``(D) Appeals.--If the Administrator disapproves an 
     application in accordance with the procedures of 
     subparagraphs (B) or (C), the applicant may, within 10 
     calendar days after receipt of the disapproval, appeal such 
     disapproval. The Administrator shall conduct a hearing to 
     determine such appeal pursuant to sections 554, 556, and 557 
     of title 5, United States Code, and shall issue a decision 
     not later than 45 days after the appeal is filed. The 
     decision on appeal shall constitute final agency action for 
     purposes of chapter 7 of title 5, United States Code.
       ``(E) Grandfathering.--
       ``(i) In general.--For the period 2 years after date of 
     enactment of the Small Business Financing and Investment Act 
     of 2009, any development company that was issuing debentures 
     on or before the date set forth in this clause (i) shall be 
     deemed to be a certified development company.
       ``(ii) Completion of application process.--The procedures 
     set forth in this paragraph for determining certification 
     shall apply to any development company meeting the 
     qualifications of clause (i).
       ``(iii) Effect of denial.--The denial or rejection of an 
     application for certification as set forth in this subsection 
     shall have no effect on the ability of a development company 
     meeting the qualifications in clause (i) from continuing to 
     issue debentures during the entire two-year period 
     established in that clause.
       ``(iv) Failure to obtain certification.--Any development 
     company that fails to obtain certification in accordance with 
     the procedures set forth in this paragraph during the period 
     set forth in clause (i) shall be considered to be a new 
     development company and the procedures of paragraph (2) shall 
     apply. The authority to issue debentures shall cease for any 
     development company covered by this subparagraph that has 
     failed to obtain certification from the Administrator during 
     the time period set forth in clause (i).
       ``(F) Automatic qualification provision.--If the 
     Administrator fails to implement the certification process 
     set forth in this paragraph, any development company that was 
     issuing debentures before September 30, 2009, pursuant to 
     this title shall be considered certified until such time as 
     the Administrator develops the certification procedures set 
     forth in this paragraph.

[[Page 26168]]

       ``(G) Savings clause.--Any action taken by a development 
     company or the Administrator pursuant to this paragraph shall 
     have no impact on any guarantee of a debenture issued prior 
     to the date of enactment of the Small Business Financing and 
     Investment Act of 2009.
       ``(2) Application process for new development companies.--
       ``(A) In general.--For any development company that has not 
     issued debentures prior to September 30, 2009, the 
     Administrator shall develop no later than 180 days after the 
     date of enactment of the Small Business Financing and 
     Investment Act of 2009, after an opportunity for notice and 
     comment, an application form for certification that provides 
     the Administrator with sufficient information to insure that 
     the applicant meets the standards set forth in subsection 
     (b). The Administrator shall certify such development company 
     or reject the application within 60 calendar days from the 
     date the initial submission was received by the 
     Administrator. If the Administrator rejects the application, 
     the Administrator shall provide in writing within 7 business 
     days after the decision, the reason for rejecting the 
     application.
       ``(B) Appeals.--A development company shall be able to 
     appeal the disapproval of an application under the procedures 
     set forth in paragraph (1)(D).''.

     SEC. 212. CERTIFIED DEVELOPMENT COMPANY; OPERATIONAL 
                   REQUIREMENTS.

       (a) Operational Requirements.--Section 502 of the Small 
     Business Investment Act of 1958 (15 U.S.C. 696) is amended to 
     read as follows:

     ``SEC. 502. OPERATIONAL REQUIREMENTS FOR CERTIFIED 
                   DEVELOPMENT COMPANIES.

       ``(a) Maintenance of Standards for Certification.--Any 
     company certified pursuant to section 501 shall continue to 
     comply with the requirements of that section to remain 
     certified. The Administrator shall develop a reporting form, 
     which to the extent possible, incorporates other documents 
     and reports already kept by certified development companies, 
     demonstrating their continued compliance. The form shall be 
     developed in a manner that the estimated time for completion 
     shall take no more than 2 hours.
       ``(b) Ethics and Conflict of Interests.--
       ``(1) In general.--A certified development company, its 
     officers, employees, and contractors shall act ethically and 
     avoid activities which constitute a conflict of interest or 
     appear to constitute a conflict of interest. For purposes of 
     this subsection, conduct that is unethical includes, but is 
     not limited to, the actions specified in section 120.140 of 
     title 13, Code of Federal Regulations, as in effect on 
     January 1, 2009.
       ``(2) By associates.--An associate may not be an officer, 
     director, or manager of more than 1 certified development 
     company. The term `associate' shall have the same meaning 
     given the term `Associate of a CDC' in section 120.10 of 
     title 13, Code of Federal Regulations, as in effect on 
     January 1, 2009. For the purposes of this subsection, 10 
     percent shall be substituted wherever section 120.10 of title 
     13, Code of Federal Regulation uses 20 percent.
       ``(3) By entities.--Except as provided in sections 
     501(b)(5) and 501(b)(6), no person, sole proprietorship, 
     partnership, or corporation shall control or have managerial 
     control of more than one certified development company. 
     Control means any of the following:
       ``(A) The ability to appoint or remove a member of the 
     company or member of its board of directors.
       ``(B) The ability to modify or approve rate or fee changes 
     affecting revenues of the certified development company.
       ``(C) The ability to veto, overrule, or modify decisions of 
     the certified development company's body.
       ``(D) The ability, either directly or contractually, to 
     appoint, hire, reassign, or dismiss those managers and 
     employees responsible for the daily operations of the 
     certified development company.
       ``(E) The ability to access the certified development 
     company's resources or amend its budget.
       ``(F) The ability to control another certified development 
     company pursuant to provisions in a contract.
       ``(c) Meetings.--The board of directors of the certified 
     development company shall meet on a regular basis to make 
     policy decisions for the company.
       ``(d) Loan Committees.--The board of directors of a 
     certified development company may use a loan committee to 
     process loans in the State in which it operates as well as 
     adjacent local economic areas. Members of the loan committee 
     shall be residents of the certified development company's 
     State of operation or the adjacent local economic area. Such 
     loan committees shall meet on a periodic basis as set forth 
     by the board of directors.
       ``(e) Prohibited Conflict in Project Loans.--
       ``(1) In general.--Certified development companies shall 
     not recommend or approve a guarantee of a debenture that will 
     be collateralized by property being constructed or acquired 
     on which an institution, as provided in section 508(c)(1)(A), 
     will have a first lien position.
       ``(2) Exception.--The prohibition in paragraph (1) shall 
     not apply to any certified development company that was 
     affiliated with or part of any entity that took a first lien 
     position between October 1, 2003, and September 30, 2005.
       ``(f) Affiliation With Lenders Operating Under Section 7 of 
     the Small Business Act.--
       ``(1) Prohibition.--No certified development company may 
     invest in, or be an affiliate of, a lender who participates 
     in the loan programs authorized in sections 7(a) and 7(c) of 
     the Small Business Act (15 U.S.C. 636(a) and (c)).
       ``(2) Exception.--The prohibition in paragraph (1) shall 
     not apply to any certified development company that is 
     affiliated with an entity authorized by the Administrator to 
     operate under section 7(a) of the Small Business Act if such 
     affiliation occurred on or before November 6, 2003.
       ``(3) Credit union affiliation.--A certified development 
     company shall not lose its status due to an affiliation with 
     an institution regulated by the National Credit Union 
     Administration if the development company was affiliated with 
     such an institution prior to January 1, 2007.
       ``(g) Servicing and Packaging Guaranteed Loans.--A 
     certified development company is authorized to prepare 
     applications for loans under sections 7(a) or 7(c) of the 
     Small Business Act (15 U.S.C. 636(a) or (c)), to service such 
     loans, and to charge a reasonable fee for servicing such 
     loans.
       ``(h) Use of Excess Funds.--Any funds generated by a 
     certified development company from the issuance of debentures 
     under this title, the sale of debentures in the private 
     secondary market, or fees described in subsection (g) that 
     remain unexpended after payment of staff, operating, and 
     overhead expenses shall be used by the certified development 
     company for--
       ``(1) operating reserves;
       ``(2) expanding the area in which the certified development 
     company operates through the methods authorized in section 
     505 (relating to multi-State operation);
       ``(3) investment in other community and local economic 
     development activity or community development primarily in 
     the State from which such funds were generated; or
       ``(4) investment in small business investment companies 
     subject to the limitations in subsection (i).
       ``(i) Limitations With Respect to Small Business Investment 
     Companies.--A certified development company shall not--
       ``(1) invest excess funds in a small business investment 
     company that the Administrator determines to be capitally 
     impaired as set forth in section 107.1830 of title 13, Code 
     of Federal Regulations, as in effect on January 1, 2009, or 
     any successor regulation to that regulation, but may maintain 
     its investment in such company if such investment was made 
     prior to the determination of capital impairment; and
       ``(2) provide a debenture under this title to a small 
     business concern that has financing with a small business 
     investment company in which the certified development company 
     has invested excess funds.
       ``(j) Economic Development Activities.--A company certified 
     pursuant to this section shall carry out each of the 
     following economic development activities that create or 
     preserve jobs in urban and rural areas:
       ``(1) The company shall provide long-term financing to 
     small business concerns through debentures described in 
     section 506.
       ``(2) The company shall operate any other program to assist 
     small business concerns or communities that promote local 
     economic development and job creation or preservation.
       ``(k) Restrictions on Assistance.--
       ``(1) In general.--After the date of enactment of the Small 
     Business Financing and Investment Act of 2009, no certified 
     development company may accept funding from any source, 
     including any Federal agency (as that term is defined in 
     section 551 of title 5, United States Code) if the source 
     imposes--
       ``(A) conditions on the types of small business concerns 
     that a certified development company may provide assistance 
     to under this title; or
       ``(B) conditions or requirements, directly or indirectly, 
     upon any small business concern receiving assistance under 
     this title.
       ``(2) Exception.--The conditions of subparagraphs (A) and 
     (B) of paragraph (1) shall not apply if the source provides 
     all of the financing that will be provided by the certified 
     development company to the small business concern, provided 
     further that any conditions or restrictions are limited 
     solely to the financing provided by the source of funding.
       ``(l) Revocation and Suspension.--The Administrator may 
     suspend or revoke a certified development company's status if 
     the Administrator determines, after a hearing on the record 
     as set forth in sections 554, 556, and 557 of title 5, United 
     States Code, that the certified development company no 
     longer--
       ``(1) meets the eligibility criteria established under 
     section 501 of this title;
       ``(2) satisfies the operational standards in this section; 
     or
       ``(3) complies with the Administrator's rules, regulations, 
     or provisions of law.

[[Page 26169]]

       ``(m) Effect of Suspension or Revocation.--A suspension or 
     revocation under subsection (l) shall not affect any 
     outstanding debenture guarantee.''.

     SEC. 213. ACCREDITED LENDERS PROGRAM.

       Section 503 of the Small Business Investment of 1958 (15 
     U.S.C. 697) is amended to read as follows:

     ``SEC. 503. ACCREDITED LENDERS PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--A certified development company may 
     apply for status to become an accredited certified 
     development company if it meets the operational standards of 
     section 502 and the criteria in subsection (b).
       ``(2) Application.--The Administrator shall, after 
     opportunity for notice and comment, develop an application 
     for certified development companies seeking to become 
     accredited certified development companies.
       ``(3) Processing of application.--The Administrator shall 
     make a determination within 30 days after a complete 
     application has been filed by the certified development 
     company.
       ``(4) Reapplication.--If the Administrator rejects the 
     application, the Administrator shall provide in writing the 
     reasons for the rejection. Any certified development company 
     may reapply which will recommence the processing time limits 
     set forth in paragraph (3), and such reapplication shall be 
     limited to addressing the reasons for rejection. If the 
     Administrator rejects a second application, that shall be 
     considered final agency action for purposes of chapter 7 of 
     title 5, United States Code.
       ``(b) Standards for Accredited Certified Development 
     Company Program.--The Administrator shall designate a 
     certified development company as accredited if it meets the 
     following standards:
       ``(1) Has been a certified development company for not less 
     than the preceding 12 months and has issued debentures as 
     authorized under this title during that time period.
       ``(2) Has well-trained, qualified personnel who are 
     knowledgeable in the lending policies and procedures for 
     certified development companies.
       ``(3) Has the ability to process, close, and service the 
     loan issued under this title.
       ``(4) Has a loss rate on the company's debentures that is 
     reasonable and acceptable to the Administrator.
       ``(5) Has a history of submitting to the Administrator 
     complete and accurate debenture guaranty application 
     packages.
       ``(6) Has the ability to serve small business credit needs 
     for financing plant and equipment as a certified development 
     company.
       ``(c) Expedited Processing of Guarantee Applications.--The 
     Administrator shall develop an expedited procedure for 
     processing a guarantee application or servicing action 
     submitted by an accredited certified development company. For 
     purposes of this subsection, an expedited procedure is one 
     that takes at least two business days less than the 
     processing performed for certified development companies that 
     have not been accredited.
       ``(d) Suspension or Revocation of Accredited Status.--The 
     Administrator may suspend or revoke a certified development 
     company's accredited status if the Administrator determines, 
     after a hearing on the record as set forth in sections 554, 
     556, and 557 of title 5, United States Code, that the 
     certified development company no longer meets the eligibility 
     criteria established under this section (which shall not 
     include a time limit on the term of the certified development 
     company's accredited status) or failed to adhere to the 
     Administrator's rules, regulations, or is violating some 
     other provision of law. Such suspension or revocation shall 
     have no effect on the development company's status as 
     certified.
       ``(e) Effect of Suspension or Revocation on Existing 
     Guarantees.--A suspension or revocation of accredited status 
     shall not affect any outstanding debenture guarantee.
       ``(f) Grandfather Provision.--Any certified development 
     company that was accredited by the date of enactment of the 
     Small Business Financing and Investment Act of 2009 shall 
     remain accredited for 24 months after that date. If the 
     certified development company does not have an application 
     for accreditation approved by the Administrator within the 24 
     months, its accreditation standard shall lapse.
       ``(g) Automatic Qualification.--
       ``(1) In general.--Until the Administrator develops 
     procedures for granting accredited status, any certified 
     development company that was accredited as of the date of 
     enactment of the Small Business Financing and Investment Act 
     of 2009 shall be deemed to be accredited.
       ``(2) Applications.--Any certified development company that 
     satisfies the provision of paragraph (1) shall have 24 months 
     in which to submit the application established by this 
     section for accredited status.
       ``(3) Effect while application pending.--The denial or 
     rejection of an application for accredited status as set 
     forth in this section shall have no effect on the ability of 
     a development company that meets the standard set forth in 
     paragraph (1) from maintaining its status during the 24 
     months specified in this subsection.
       ``(h) Promulgation of Accrediting Standards.--The 
     Administrator shall develop standards for accrediting, 
     suspension, and revocation under the program established by 
     this section only after notice and an opportunity for comment 
     as set forth in section 553(b) of title 5, United States 
     Code. After the development of such standards, the 
     Administrator shall publish such standards in the Code of 
     Federal Regulations.
       ``(i) Rule of Construction.--Any reference to the term 
     `accredited lender' in any provision of law enacted, or any 
     regulation adopted, prior to the enactment of the Small 
     Business Financing and Investment Act of 2009 shall be deemed 
     to be a reference to the term `accredited certified 
     development company'.''.

     SEC. 214. PREMIER CERTIFIED LENDER PROGRAM.

       Section 504 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697a) is amended to read as follows:

     ``SEC. 504. PREMIER CERTIFIED LENDER PROGRAM.

       ``(a) Establishment.--
       ``(1) In general.--A certified development company 
     accredited under section 503 may apply for status to become a 
     premier certified development company.
       ``(2) Application.--The Administrator shall, after 
     opportunity for notice and comment, develop an application 
     for accredited certified development companies seeking to 
     become premier certified development companies.
       ``(3) Processing of application.--The Administrator shall 
     make a determination within 60 days after a complete 
     application has been filed by an accredited certified 
     development company.
       ``(4) Reapplication.--If the Administrator rejects the 
     application, the Administrator shall provide in writing the 
     reasons for the rejection. Any accredited certified 
     development company may reapply which will recommence the 
     processing time limits set forth in paragraph (3), and such 
     reapplication shall be limited to addressing the reasons for 
     rejection. If the Administrator rejects a second application, 
     that shall be considered final agency action for purposes of 
     chapter 7 of title 5, United States Code.
       ``(b) Standards for Obtaining Premier Certified Development 
     Company Status.--The Administrator shall designate an 
     accredited certified development company as a premier 
     certified development company if the application submitted 
     pursuant to subsection (a) demonstrates that the accredited 
     certified development company meets the following standards:
       ``(1) Has been an accredited certified development company 
     for at least 12 months.
       ``(2) Has submitted to the Administrator adequately 
     analyzed debenture guarantee applications.
       ``(3) Has closed, in a proper manner following the 
     Administrator regulations, loans under this title.
       ``(4) Has serviced its loan portfolio in accordance with 
     the standards set by the Administrator.
       ``(5) Has established a loan loss reserve established in 
     accordance with this section that the Administrator 
     determines is sufficient to meet its obligations to protect 
     the Federal Government from the risk of loss on each 
     debenture guaranteed under this section.
       ``(6) Has agreed, as part of the application and in order 
     to protect the Federal Government against the risk of loss, 
     to the following--
       ``(A) on account of a debenture, the proceeds of which were 
     used to fund a loan approved prior to the date of enactment 
     of the Small Business Financing and Investment Act of 2009, 
     agrees to reimburse the Administrator for 10 percent of any 
     loss sustained by the Administrator as a result of a default 
     by the company in the payment of principal or interest on a 
     debenture issued by such company and guaranteed by the 
     Administrator;
       ``(B) on account of a debenture, the proceeds of which were 
     used to fund a loan approved prior to the date of enactment 
     of the Small Business Financing and Investment Act of 2009 
     and which were issued during the period in which the company 
     had made a selection pursuant to section 508(c)(7) of the 
     Small Business Investment Act of 1958, as in effect on the 
     day before such date of enactment, agrees to reimburse the 
     Administrator for 15 percent of any loss sustained by the 
     Administrator as a result of a default by the company in the 
     payment of principal or interest on a debenture issued by 
     such company and guaranteed by the Administrator; or
       ``(C) on account of a debenture, the proceeds of which are 
     used to fund a loan approved on or after the date of 
     enactment of the Small Business Financing and Investment Act 
     of 2009, upon closing, pay to the Administrator a one-time 
     participation fee in the amount equal to the higher of the 
     following:
       ``(i) 0.25 percent of the amount of the debenture.
       ``(ii) A percent of the amount of the debenture equal to 10 
     percent of the amount of the company's historic loss rate on 
     debentures guaranteed under this section as determined by the 
     Administrator. The rate specified by this clause shall be 
     determined annually based upon the company's loan losses as 
     of close of business on June 30 and notice of the

[[Page 26170]]

     determination shall be provided to each company not later 
     than August 31. Such rate shall be applicable to loans 
     approved during the fiscal year commencing after the 
     determination is made and shall expire and have no further 
     application after the end of such fiscal year. If no timely 
     determination has been made prior to the commencement of a 
     fiscal year, including the year of enactment of the Small 
     Business Financing and Investment Act of 2009, one may be 
     made after the commencement and it shall be applicable to 
     loans approved during the balance of such fiscal year 
     commencing 30 days after notification to the development 
     company involved.
       ``(c) Suspension or Revocation of Premier Status.--The 
     Administrator may suspend or revoke an accredited certified 
     development company's premier status if the Administrator 
     determines, after a hearing on the record as set forth in 
     sections 554, 556, and 557 of title 5, United States Code, 
     that the accredited certified development company no longer 
     meets the eligibility criteria for premier status as 
     established under this section or failed to adhere to the 
     Administrator's rules, regulations, or is violating some 
     other provision of law. Such revocation or suspension shall 
     have no effect on its status as an accredited certified 
     development company.
       ``(d) Loan Loss Reserve.--
       ``(1) Assets.--Each loan loss reserve maintained by the 
     premier certified development company for loans made pursuant 
     to the authority in subsection (g)(1) shall be comprised of--
       ``(A) segregated funds on deposit in an account or accounts 
     with a federally insured depository institution or 
     institutions selected by the company, subject to a collateral 
     assignment in favor of, and in a format acceptable to, the 
     Administrator that shall amount to 10 percent of the 
     company's exposure as determined pursuant to subsection 
     (b)(6);
       ``(B) irrevocable letter or letters of credit, with a 
     collateral assignment in favor of, and a commercially 
     reasonable format acceptable to, the Administrator; or
       ``(C) any combination of the assets described in 
     subparagraphs (A) and (B).
       ``(2) Contributions.--The company shall make contributions 
     to the loss reserve, either cash or letters of credit as 
     provided above, in the following amounts and at the following 
     intervals:
       ``(A) 50 percent when a debenture is closed.
       ``(B) 25 percent additional not later than 1 year after a 
     debenture is closed.
       ``(C) 25 percent additional not later than 2 years after a 
     debenture is closed.
       ``(3) Replenishment.--If a loss has been sustained by the 
     Administrator, any portion of the loss reserve, and other 
     funds provided by the premier certified development company 
     as necessary, may be used to reimburse the Administrator for 
     the premier certified development company's share of the loss 
     as provided for in subsection (b)(6). If the premier 
     certified development company utilizes the reserve, it shall, 
     within 30 calendar days, replace an equivalent amount of 
     funds.
       ``(4) Disbursements.--
       ``(A) In general.--The Administrator shall allow the 
     premier certified development company to withdraw from the 
     loss reserve amounts attributable to any debenture that has 
     been repaid.
       ``(B) Reduction.--The Administrator shall allow the premier 
     certified development company to withdraw from the loss 
     reserve such amounts as are in excess of 1 percent of the 
     aggregate outstanding balances of debentures to which such 
     loss reserve relates. The reduction authorized by this 
     subparagraph shall not apply with respect to any debenture 
     before 100 percent of the contribution described in paragraph 
     (2) with respect to such debenture has been made.
       (5) Applicability.--This subsection shall apply only to a 
     premier certified development company designated as a premier 
     certified development company by the Administrator under this 
     section on or after the date of the enactment of the Small 
     Business Financing and Investment Act of 2009. The loan loss 
     reserve requirements relating to any premier certified 
     development company certified prior to the date of the 
     enactment of such Act shall continue to be governed by 
     regulations in effect on the date of the enactment of such 
     Act.
       ``(e) Bureau of Premier Certified Development Company 
     Lender Oversight.--
       ``(1) In general.--There is hereby established a Bureau of 
     Premier Certified Development Company Lender Oversight in the 
     Office of Lender Oversight at the Administration which shall 
     have responsibility and capability for carrying out oversight 
     of premier certified development companies and such other 
     responsibilities as the Administrator designates.
       ``(2) Annual review.--The Bureau established in paragraph 
     (1) annually shall review the financing made by each premier 
     certified development company. Such review shall include the 
     premier certified development company's credit decisions and 
     general compliance with the eligibility requirements for each 
     financing approved as a result of its status as a premier 
     certified development company.
       ``(3) Random audits.--The Bureau shall develop and 
     implement a method for sampling the debentures issued by 
     premier certified development companies. Such sampling shall 
     be similar to the random file audits of development companies 
     that utilize the Abridged Submission Method described in 
     chapter 4 of subpart C of Standard Operating Procedure 50 10 
     (5)(A) as was in effect on March 2, 2009.
       ``(4) Review of lenders providing senior financing.--
       ``(A) Calculation of loan loss rate.--The Bureau shall 
     periodically calculate the loss rate of all debentures 
     approved under this section and shall calculate a loss rate 
     on the basis of the total debentures attributable to projects 
     approved by premier certified development companies in which 
     each lender is a participating lender.
       ``(B) Notification.--If the Bureau determines that the loss 
     rate on debentures involving an individual lender exceeds the 
     average for all debentures approved under this section, it 
     shall advise the Administrator.
       ``(5) Use of reviews and audits.--The Administrator shall 
     consider the findings under paragraphs (2), (3), and (4) in 
     carrying out the responsibilities under subsection (h).
       ``(f) Sale of Certain Defaulted Loans.--
       ``(1) Notice.--If, upon default in repayment, the 
     Administrator acquires a debenture issued by a premier 
     certified development company and identifies such loan for 
     inclusion in a bulk asset sale of defaulted or repurchased 
     loans or other financing, the Administrator shall give prior 
     notice thereof to any premier certified development company 
     which has a contingent liability under this section. The 
     notice shall be given to the premier certified development 
     company as soon as possible after the financing is 
     identified, but not less than 90 days before the date the 
     Administrator first makes any records on such financing 
     available for examination by prospective purchasers prior to 
     its offering in a package of loans for bulk sale.
       ``(2) Limitations.--The Administrator shall not offer any 
     loan described in paragraph (1) as part of a bulk sale unless 
     the Administrator--
       ``(A) provides prospective purchasers with the opportunity 
     to examine the Administration's records with respect to such 
     loan; and
       ``(B) provides the notice required by paragraph (1).
       ``(g) Loan Approval Authority.--
       ``(1) In general.--A premier certified development company 
     may, under conditions determined by the Administrator in 
     regulations published in the Code of Federal Regulations, 
     issue guarantees on debentures, approve, authorize, close, 
     service, foreclose, litigate (except that the Administrator 
     may monitor conduct of any such litigation), and liquidate 
     loans that are funded with proceeds of a debenture issued by 
     a premier certified development company unless the 
     Administrator advises the company that loans involving a 
     specific institutional lender are to be submitted to the 
     Administrator for further consideration, and approval by the 
     Administrator.
       ``(2) Program goals.--Each premier certified development 
     company shall establish a goal of processing no less than 50 
     percent of the applications for assistance under this title 
     that the premier certified development company receives. 
     Failure to meet this goal shall have no affect on the 
     company's status as a premier certified development company 
     under this section.
       ``(3) Scope of review.--The approval of a loan and 
     guarantee of a debenture by a premier certified development 
     company shall be subject to final approval as to the 
     eligibility of any guarantee by the Administrator as set 
     forth in section 506, but such final approval shall not 
     include review of decisions by the premier certified 
     development company involving creditworthiness, loan closing, 
     or compliance with legal requirements imposed by law or 
     regulation.
       ``(h) Suspension or Revocation.--The Administrator may 
     suspend or revoke an accredited certified development 
     company's premier status if the Administrator determines, 
     after a hearing on the record as set forth in sections 554, 
     556, and 557 of title 5, United States Code, that the 
     accredited certified development company no longer meets the 
     eligibility criteria established under this section, fails to 
     maintain adequate loan loss reserves mandated in this section 
     even if it meets the other eligibility requirements for 
     premier status, or violates the Administrator's rules, 
     regulations, or some other provision of law. The 
     Administrator shall consider the review of the premier 
     certified development company conducted pursuant to 
     subsection (e) in determining whether to suspend or revoke an 
     accredited development company's premier status. Such 
     suspension or revocation shall have no effect on the 
     development company's status as an accredited certified 
     development company.
       ``(i) Effect of Suspension or Revocation.--A suspension or 
     revocation of premier status shall not affect any outstanding 
     debenture guarantee.
       ``(j) Rule of Construction.--Any reference to the term 
     `premier certified lender' or `PCL' in legislation enacted, 
     or regulations adopted, prior to the enactment of the Small 
     Business Financing and Investment Act of 2009 shall be deemed 
     to be a reference to the term `premier certified development 
     company'.''.

[[Page 26171]]



     SEC. 215. MULTI-STATE OPERATIONS.

       Section 505 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697b) is amended to read as follows:

     ``SEC. 505. MULTI-STATE OPERATIONS.

       ``(a) Authorization.--The Administrator shall permit an 
     accredited or premier certified development company to make 
     loans or issue debentures in any State that is contiguous to 
     the State of incorporation of that company only if the 
     company--
       ``(1) has members, from each of the States in which it 
     operates with not fewer than 25 members who reside in such 
     States;
       ``(2) has a board of directors that contains not fewer than 
     2 members from each State in which the company makes loans 
     and issues debentures and are residents of that State;
       ``(3) maintains a separate loan committee to process loans 
     in each expansion State and the members of the loan committee 
     are solely residents of the expansion State; and
       ``(4) files an application developed by the Administrator 
     which provides--
       ``(A) notice of the intention to make loans in multiple 
     States;
       ``(B) a specification of the States in which the company 
     intends to make loans;
       ``(C) a list of members in each expansion State; and
       ``(D) a detailed statement on how the company will comply 
     with the requirements of this subsection.
       ``(b) Loan Committees.--The requirements of paragraph (3) 
     of subsection (a) shall not require a development company to 
     establish a loan committee in its State of incorporation or 
     in a local economic area outside the State of incorporation 
     unless such area is part of an expansion State.
       ``(c) Review.--
       ``(1) In general.--The Administrator shall review each 
     application for expansion under subsection (a), but such 
     review shall be limited to that information needed to 
     determine whether the company will comply with the 
     requirements of subsection (a).
       ``(2) Deadline for decision.--The Administrator shall make 
     a decision on each application under subsection (a) within 15 
     calendar days after the receipt of the application. If no 
     such decision is granted, the application is deemed to be 
     approved and no further action is required by the applicant 
     or the Administrator for the company to expand into the 
     States specified in the application.
       ``(3) Application resubmittal.--If the Administrator 
     rejects the application for expansion, the Administrator 
     shall provide in writing the reasons for denial within 10 
     calendar days of the decision. The applicant then may 
     resubmit the application but the review of such resubmitted 
     applications will be limited only to the areas in which the 
     Administrator found the original application deficient. The 
     deadlines in paragraph (2) shall apply to resubmitted 
     applications.
       ``(4) Appeal.--If a resubmitted application is denied, the 
     applicant may, within 10 calendar days after receipt of the 
     disapproval, appeal such disapproval. The Administrator shall 
     conduct a hearing to determine such appeal pursuant to 
     sections 554, 556, and 557 of title 5, United States Code, 
     and shall issue a decision not later than 45 days after the 
     appeal is filed. The decision on appeal shall constitute 
     final agency action for purposes of chapter 7 of title 5, 
     United States Code.
       ``(d) Failure To Develop Application.--If the Administrator 
     fails to develop an application as required in subsection 
     (a)(4) within 60 days of the enactment of the Small Business 
     Financing and Investment Act of 2009, an accredited or 
     premier certified development company only need submit the 
     information required in subsection (a) to the Administrator 
     to be deemed eligible to commence operations authorized by 
     this section. Such eligibility shall not be terminated if the 
     Administrator develops an application after the 60-day period 
     set forth in this subsection.
       ``(e) Aggregate Accounting.--An accredited or premier 
     certified development company authorized to operate in 
     multiple States pursuant to this section may maintain an 
     aggregate accounting of all revenue and expenses of the 
     company for purposes of this title.
       ``(f) Local Job Creation Requirements.--
       ``(1) In general.--Any company making loans in multiple 
     States as authorized in this section shall not count jobs 
     created or retained in one State towards any applicable job 
     creation or retention requirements mandated by this title in 
     another State.
       ``(2) Applicability.--Any company operating under the 
     authority of this section shall be required to meet any job 
     creation or retention requirement of this title on the date 
     that is 2 years after the certified development company 
     closed its first loan in its new State of operation.
       ``(g) Contiguous States.--For the purposes of this section, 
     the States of Alaska and Hawaii shall be deemed to be 
     contiguous to any State abutting the Pacific Ocean. 
     Territories of the United States located in the Pacific Ocean 
     shall be deemed to be contiguous to any State abutting the 
     Pacific Ocean, including Alaska and Hawaii, and territories 
     of the United States located in the Caribbean Sea shall be 
     deemed contiguous to any State abutting the Gulf of Mexico.
       ``(h) Exemption for Local Economic Areas.--Except as 
     provided in subsection (a)(3) with respect to loan 
     committees, any certified, accredited, or premier development 
     company or applicant operating in a local economic 
     development area that crosses the border of another State 
     shall not be considered to be operating under the provisions 
     of this section and shall not be required to comply with the 
     requirements of this section for multi-State operation.''.

     SEC. 216. GUARANTY OF DEBENTURES.

       Section 506 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697c) is amended to read as follows:

     ``SEC. 506. GUARANTY OF DEBENTURES.

       ``(a) Authority To Guarantee.--Except as provided in 
     subsection (c), the Administrator may guarantee the timely 
     payment of all principal and interest as scheduled on any 
     debenture issued by a certified development company.
       ``(b) Terms and Conditions of the Guarantee.--Such 
     guarantees may be made on such terms and conditions as the 
     Administrator may by regulation, published in the Code of 
     Federal Regulations, determine to be appropriate, except that 
     the Administrator shall not decline to issue such guarantee 
     when the ownership interests of the small business concern 
     and the ownership interests of the property to be financed 
     with the proceeds of the loan made pursuant to subsection 
     (e)(1) are not identical because one or more of the following 
     classes of relatives have an ownership interest in either the 
     small business concern or the property: father, mother, son, 
     daughter, wife, husband, brother, or sister, if the 
     Administrator or his designee has determined on a case-by-
     case basis that such ownership interest, such guarantee, and 
     the proceeds of such loan, will substantially benefit the 
     small business concern.
       ``(c) Full Faith and Credit.--The full faith and credit of 
     the United States is pledged to the payment of all amounts 
     guaranteed under this section.
       ``(d) Subordination.--Any debenture issued by a certified 
     development company with respect to which a guarantee is made 
     under this section may be subordinated by the Administrator 
     to any other debenture, promissory note, or other debt or 
     obligation of such company.
       ``(e) Standards for Administrator Guarantees.--No guarantee 
     may be made with respect to any debenture under this section 
     unless--
       ``(1) the debenture is issued for the purpose of making one 
     or more loans to small business concerns the proceeds of 
     which shall be used for the purposes set forth in section 
     507;
       ``(2) the interest rate on such debentures is not less than 
     the rate of interest determined by the Secretary of the 
     Treasury for purposes of section 303(b);
       ``(3) the aggregate amount of such debenture does not 
     exceed the amount of the loans to be made from the proceeds 
     of such debenture plus, at the election of the borrower, 
     other amounts attributable to the administrative and closing 
     costs of such loans, except for the attorney fees of the 
     borrower;
       ``(4) the amount of any loan to be made from such proceeds 
     does not exceed an amount equal to 50 percent of the cost of 
     the project with respect to which such loan is made;
       ``(5) the Administrator, except to the extent provided in 
     section 504 with respect to premier certified development 
     companies, approves each loan to be made from such proceeds; 
     and
       ``(6) with respect to each loan made from the proceeds of 
     such debenture, the Administrator--
       ``(A) assesses and collects a fee, which shall be payable 
     by the borrower, in an amount established annually by the 
     Administration, which amount shall not exceed--
       ``(i) the lesser of--

       ``(I) 0.9375 percent per year of the outstanding balance of 
     the loan; or
       ``(II) the minimum amount necessary to reduce the cost (as 
     defined in section 502 of the Federal Credit Reform Act of 
     1990) to the Administrator of purchasing and guaranteeing 
     debentures under this title to zero; and

       ``(ii) 50 percent of the amount established under clause 
     (i) in the case of a loan made during the 2-year period 
     beginning on October 1, 2002, for the life of the loan; and
       ``(B) uses the proceeds of such fee to offset the cost (as 
     such term is defined in section 502 of the Federal Credit 
     Reform Act of 1990) to the Administrator of making guarantees 
     under this section.
       ``(f) Interest Rates on Commercial Loans.--Notwithstanding 
     the provisions of the constitution or laws of any State 
     limiting the rate or amount of interest which may be charged, 
     taken, received, or reserved, the maximum legal rate of 
     interest on any commercial loan which funds any portion of 
     the cost of the project financed pursuant to this title which 
     is not funded by a debenture guaranteed under this section 
     shall be a rate which is established by the Administrator who 
     shall publish such rate quarterly in, at a minimum, the 
     Federal Register and on the Administration's website.
       ``(g) Debenture Repayment.--Any debenture that is issued 
     under this section shall provide for the payment of principal 
     and interest on a semiannual basis.
       ``(h) Charges for Administrator's Expenses.--The 
     Administrator may impose an

[[Page 26172]]

     additional charge for administrative expenses with respect to 
     each debenture for which payment of principal and interest is 
     guaranteed under this section. Such administrative expenses 
     may include--
       ``(1) development company fees for processing, closing, 
     servicing, late payment, or loan assumption;
       ``(2) agent or trustee fees for central servicing, 
     underwriters, or debenture funding; and
       ``(3) fees charged by the Administrator for the debenture 
     guaranty and from the certified development company to reduce 
     the subsidy cost.
       ``(i) Participation Fee.--The Administrator shall collect a 
     one-time fee in an amount equal to 50 basis points on the 
     total participation in any project of any State or local 
     government, bank, other financial institution, or foundation 
     or not-for-profit institution. Such fee shall be imposed only 
     when the participation of the entity described in the 
     previous sentence will occupy a senior credit position to 
     that of the development company. All proceeds of the fee 
     shall be used to offset the cost (as that term is defined in 
     section 502 of the Credit Reform Act of 1990) to the 
     Administrator of making guarantees under this section.
       ``(j) Certified Development Company Fee.--The Administrator 
     shall collect annually from each development company a fee of 
     0.125 percent of the outstanding principal balance of any 
     guaranteed debenture authorized by the Administrator after 
     September 30, 1996. Such fee shall be derived from the 
     servicing fees collected by the certified development company 
     pursuant to regulation, and shall not be derived from any 
     additional fees imposed on small business concerns. All 
     proceeds of the fee shall be used to offset the cost (as that 
     term is defined in section 502 of the Credit Reform Act of 
     1990) to the Administrator of making guarantees under this 
     section.
       ``(k) Effective Date.--The fees authorized by this section 
     shall apply to any financing approved under this title on or 
     after October 1, 1996.
       ``(l) Calculation of Subsidy Rate.--All fees, interest, and 
     profits received and retained by the Administrator under this 
     section shall be included in the calculations made by the 
     Director of the Office of Management and Budget to offset the 
     cost (as that term is defined in section 502 of the Federal 
     Credit Reform Act of 1990) to the Administrator of purchasing 
     and guaranteeing debentures under this title.
       ``(m) Actions Upon Default.--
       ``(1) Initial actions.--Not later than the 45th day after 
     the date on which a payment on a loan funded through a 
     debenture guaranteed under this section is due and not 
     received, the Administrator shall--
       ``(A) take all necessary steps to bring such loan current; 
     or
       ``(B) implement a formal written deferral agreement.
       ``(2) Purchase or acceleration of debenture.--Not later 
     than the 65th day after the date on which a payment on a loan 
     described in paragraph (1) is due and not received, and 
     absent a formal written deferral agreement, the Administrator 
     shall take all necessary steps to purchase or accelerate the 
     debenture.
       ``(3) Prepayment penalties.--With respect to the portion of 
     any project derived from funds not provided by a debenture 
     issued by a certified development company or borrower, the 
     Administrator--
       ``(A) shall negotiate the elimination of any prepayment 
     penalties or late fees on defaulted loans made prior to 
     September 30, 1996;
       ``(B) shall not pay any prepayment penalty or late fee on 
     the default based purchase of loans issued after September 
     30, 1996; and
       ``(C) shall not pay a default interest rate higher than the 
     interest rate on the note prior to the date of default for 
     any project financed after September 30, 1996.
       ``(4) Collection and servicing.--
       ``(A) In general.--In the event of the default of any loan 
     and the repurchase of a debenture guaranteed by the 
     Administrator under this title, the Administrator shall 
     continue to delegate to the central servicing agent that was 
     contracted for that service as of January 1, 2009, or 
     successor contractor the authority to collect and disburse 
     all funds or payments received on such defaulted loans, 
     including payments from guarantors or on notes in compromise 
     of the original note. The central servicing agent shall 
     continue to provide an accounting of income and expenses for 
     any such loan on the same basis it does for any other loan 
     issued under this title. The central servicing agent shall 
     make the accounting of income and expenses and reports 
     thereon available as requested by the certified development 
     company that issued the debenture or the Administrator.
       ``(B) Effective date.--The requirements of subparagraph (A) 
     shall become effective 180 days after the date of enactment 
     of the Small Business Financing and Investment Act of 
     2009.''.

     SEC. 217. ECONOMIC DEVELOPMENT THROUGH DEBENTURES.

       Section 507 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697d) is amended to read as follows:

     ``SEC. 507 ECONOMIC DEVELOPMENT AND DEBENTURES.

       ``(a) In General.--A certified development company shall be 
     prohibited from issuing a debenture under this title unless 
     the project funded with the debenture meets one of the 
     following economic development objectives:
       ``(1) The creation of job opportunities within two years of 
     the completion of the project or the preservation or 
     retention of jobs attributable to the project.
       ``(2) Improving the economy of the locality, such as 
     stimulating other business development in the community, 
     bringing new income into the area, or assisting the community 
     in diversifying and stabilizing its economy.
       ``(3) The achievement of one or more of the following 
     public policy goals:
       ``(A) Business district revitalization or expansion of 
     businesses in low-income communities which would be eligible 
     for a new markets tax credit under section 45D(a) of the 
     Internal Revenue Code of 1986, or implementing regulations 
     issued under that section.
       ``(B) Expansion of exports.
       ``(C) Expansion of minority business development or women-
     owned business development.
       ``(D) Rural development.
       ``(E) Expansion of small business concerns owned and 
     controlled by veterans, as defined in section 3(q) of the 
     Small Business Act (15 U.S.C. 632(q)), especially service-
     disabled veterans, as defined in such section.
       ``(F) Enhanced economic competition, including the 
     advancement of technology, plan retooling, conversion to 
     robotics, or competition with imports.
       ``(G) Changes necessitated by Federal budget cutbacks, 
     including defense related industries.
       ``(H) Business restructuring arising from federally 
     mandated standards or policies affecting the environment or 
     the safety and health of employees.
       ``(I) Reduction of energy consumption by at least 10 
     percent.
       ``(J) Increased use of sustainable design, including 
     designs that reduce the use of greenhouse gas emitting fossil 
     fuels, or low-impact design to produce buildings that reduce 
     the use of nonrenewable resources and minimize environmental 
     impact.
       ``(K) Plant, equipment, and process upgrades of renewable 
     energy sources such as the small-scale production of energy 
     for individual buildings or communities consumption, commonly 
     known as micropower, or renewable fuels producers including 
     biodiesel and ethanol producers.
       ``(4) Debt refinancing to the extent permitted by 
     subsection (d).
       ``(b) Job Creation and Retention Requirements.--
       ``(1) In general.--A project meets the job creation or 
     retention objective set forth in subsection (a)(1) if the 
     project creates or retains one job for every $65,000 
     guaranteed by the Administrator, except that the amount shall 
     be $100,000 in the case of a project of a small manufacturer.
       ``(2) Exceptions.--
       ``(A) Paragraph (1) shall not apply to a project for which 
     eligibility is based on the objectives set forth in 
     subsection (a)(2) or (a)(3) if the certified development 
     company's portfolio of outstanding debentures creates or 
     retains one job for every $65,000 guaranteed by the 
     Administrator.
       ``(B) For projects in Alaska, Hawaii, State-designated 
     enterprise zones, empowerment zones, enterprise communities, 
     or labor surplus areas designated by the Administrator, the 
     certified development company's portfolio may average not 
     more than $75,000 per job created or retained.
       ``(C) Loans for projects of small manufacturers shall be 
     excluded from the calculations in subparagraphs (A) and (B).
       ``(c) Combination of Certain Goals.--A small business 
     concern that is unconditionally owned by more than 1 
     individual, or a corporation, the stock of which is owned by 
     more than 1 individual, shall be deemed to have achieved a 
     goal under subsection (a)(3) if a combined ownership share of 
     not less than 51 percent is held by individuals who are in 1 
     of, or a combination of, the groups described in 
     subparagraphs (C) or (E) of subsection (a)(1).
       ``(d) Composition of the Project.--
       ``(1) In general.--The projects described in this section 
     shall include, but not be limited to, plant acquisition, 
     construction, conversion, expansion (including the 
     acquisition of land), equipment and related project costs, or 
     to acquire the stock of a corporation (as long as the value 
     of the loan for the acquisition of the stock does not exceed 
     the fixed asset value attributable to such assets as would be 
     eligible for financing under subsection (a)).
       ``(2) Debt refinancing.--Any financing approved under this 
     title may include a limited amount of debt refinancing if the 
     project involves the expansion of a small business concern.
       ``(3) Limitation.--The amount of the existing indebtedness 
     may be refinanced and added to the expansion cost if--
       ``(A) the existing indebtedness does not exceed 50 percent 
     of the project cost of the expansion;
       ``(B) the proceeds of the indebtedness were used to acquire 
     land, including a building

[[Page 26173]]

     situated thereon, to construct a building thereon, or to 
     purchase equipment;
       ``(C) the existing indebtedness is collateralized by fixed 
     assets;
       ``(D) the existing indebtedness was incurred for the 
     benefit of the small business concern;
       ``(E) the financing under this title will be used only for 
     refinancing existing indebtedness or costs relating to the 
     project financed under this title;
       ``(F) the financing under this title will provide a 
     substantial benefit to the borrower when prepayment 
     penalties, financing fees, and other financing costs are 
     accounted for;
       ``(G) the borrower has been current on all payments due on 
     the existing debt for not less than 1 year preceding the date 
     of refinancing; and
       ``(H) the financing under this title will provide better 
     terms or rate of interest than the existing indebtedness at 
     the time of refinancing.
       ``(e) Definition.--For purposes of subparagraphs (J) and 
     (K) of subsection (a)(3), the terms included have the 
     meanings given those terms under the Leadership in Energy and 
     Environmental Design (more generally referred to as LEED) 
     standard for green building certification, as determined by 
     the Administrator through regulation to be published in the 
     Code of Federal Regulations.''.

     SEC. 218. PROJECT FUNDING REQUIREMENTS.

       Section 508 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697e) is amended to read as follows:

     ``SEC. 508. PROJECT FUNDING REQUIREMENTS.

       ``(a) In General.--Any project described in section 507 
     must meet the funding standards set forth in this section.
       ``(b) Size of Debenture.--The Administrator shall only be 
     permitted to guarantee debenture issued by a certified 
     development company up to the following amounts:
       ``(1) $3,000,000 for any project of a small business 
     concern.
       ``(2) $4,000,000 for any project that meets the public 
     policy goals set forth in section 507(a)(3).
       ``(3) $4,000,000 for any project to be located in a low-
     income community as that term is described in section 
     507(a)(3)(A).
       ``(4) $8,000,000 for each project of a small manufacturer.
       ``(5) $8,000,000 for each project that reduces the 
     borrower's energy consumption by at least 10 percent.
       ``(6) $8,000,000 for each project that generates renewable 
     energy or renewable fuels, such as, but not limited to, 
     biodiesel or ethanol production.
       ``(7) $10,000,000 for each project for a small business 
     concern that constitutes a major source of employment as that 
     term is used in section 7(b)(3)(E) of the Small Business Act 
     (15 U.S.C. 636(b)(3)(E)).
       ``(c) Funding From Sources Other Than Debentures Issued by 
     Certified Development Companies.--
       ``(1) In general.--Any project financed pursuant to this 
     title must have the following contributions from parties 
     other than the debenture issued by the certified development 
     company:
       ``(A) Funding from institutions.--
       ``(i) If a small business concern provides--

       ``(I) the minimum contribution required by subparagraph 
     (B), not less than 50 percent of the total cost of any 
     project financed shall come from State or local governments, 
     banks or other financial institutions, or foundations or 
     other not-for-profit institutions; and
       ``(II) more than the minimum contribution required under 
     subparagraph (B), any excess contribution may be used to 
     reduce the amount required from institutions described in 
     subclause (I), except that the amount provided by such 
     institution may not be reduced to an amount that is less than 
     the amount of the loan made by the Administrator.

       ``(B) Funding from small business concerns.--The small 
     business concern (or its owners, stockholders, or affiliates) 
     that will have a project financed pursuant to this title 
     shall provide--
       ``(i) at least 15 percent of the total cost of the project 
     financed if the small business concern has been in operation 
     for a period of 2 years or less;
       ``(ii) at least 15 percent of the total cost of the project 
     financed if the project involves construction of a limited or 
     single purposed building or structure;
       ``(iii) at least 20 percent of the total cost of the 
     project financed if the project involves both of the 
     conditions in clauses (i) and (ii); or
       ``(iv) at least 10 percent of the total cost of the project 
     financed and not covered by clauses (i), (ii), or (iii), at 
     the discretion of the certified development company.
       ``(2) Seller financing.--Seller-provided financing may be 
     used to meet the requirements of paragraph (1)(B), if the 
     seller subordinates the interest of the seller in the 
     property to the debenture guaranteed by the Administrator.
       ``(3) Collateralization.--
       ``(A) In general.--The collateral provided by the small 
     business concern shall generally include a subordinate lien 
     position on the property being financed under this title, and 
     is only one of the factors to be evaluated in the credit 
     determination. Additional collateral shall be required only 
     if the Administrator determines, on a case-by-case basis, 
     that additional security is necessary to protect the interest 
     of the Government.
       ``(B) Appraisals.--With respect to commercial real property 
     provided by the small business concern as collateral, an 
     appraisal of the property by a State licensed or certified 
     appraiser--
       ``(i) shall be required by the Administrator before 
     disbursement of the loan if the estimated value of that 
     property is more than $400,000; or
       ``(ii) may be required by the Administrator or the lender 
     before disbursement of the loan if the estimated value of 
     that property is $400,000 or less, and such appraisal is 
     necessary for appropriate evaluation of creditworthiness.
       ``(C) Adjustment.--The Administrator shall periodically 
     adjust the amount under subparagraph (B) to account for the 
     effects of inflation, provided that no such adjustment shall 
     be less than $50,000.
       ``(4) Limitation on leasing.--
       ``(A) If the project funded under this section includes the 
     acquisition of a facility or the construction of a new 
     facility, the small business concern--
       ``(i) shall permanently occupy and use not less than 50 
     percent of the project property; and
       ``(ii) may, on a temporary or permanent basis, lease to 
     others not more than 50 percent of the project property.
       ``(B) For purposes of this paragraph, the term `project 
     property' means--
       ``(i) the building and any exterior areas used in 
     connection with the building or a part thereof and includes 
     all of the parcels of real property included in the project 
     in the aggregate; and
       ``(ii) occupancy and use of the project property by the 
     operating company shall be deemed to be occupancy and use by 
     the small business concern that received funding under this 
     section.
       ``(d) Regulations.--(1) The Administrator shall promulgate 
     regulations, after notice and comment, to implement the 
     provisions of this section within 60 days after enactment of 
     the Small Business Financing and Investment Act of 2009. The 
     Administrator may limit the comment period to 15 days to meet 
     this deadline.
       ``(2) If the Administrator fails to promulgate the 
     regulations as provided in paragraph (1), all leases entered 
     into, absent clear and convincing evidence of fraud, shall be 
     deemed to be in compliance with the limitations on leasing in 
     this subparagraph for purposes of honoring the guarantee on 
     the debenture issued by the certified development company.
       ``(3) Any regulation of the Administrator or interpretation 
     of any regulation by the Administrator or the Office of 
     Hearings and Appeals that restricts the use of proceeds for 
     leased projects that was in effect on the date of enactment 
     of the Small Business Financing and Investment Act of 2009 
     shall hereby cease to apply.
       ``(4) Any interpretation of the leasing provisions issued 
     by the Administrator prior to the issuance of regulations 
     required by paragraph (1) shall be considered null and void 
     and may be not be used in any court of competent 
     jurisdiction, be it Federal or State court, to dishonor any 
     guarantee of a debenture issued by a certified development 
     company for a project funded pursuant to this section.
       ``(e) Ownership Calculation.--Ownership requirements to 
     determine the eligibility of a small business concern that 
     applies for funding under this title shall be determined 
     without regard to any ownership interest of a spouse arising 
     solely from the application of the community property laws of 
     a State for purposes of determining marital interests.
       ``(f) Combination Financing.--Financing under this title 
     may be provided to a borrower in the maximum amount provided 
     in this section, and a loan guarantee under section 7(a) of 
     the Small Business Act (15 U.S.C. 636(a)) may be provided to 
     the same borrower in the maximum amount provided in section 
     7(a)(3)(A) of such Act, to the extent that the borrower 
     otherwise qualifies for such assistance.
       ``(g) Rules for Debentures Funding Projects in Low-Income 
     Areas.--
       ``(1) Size standards.--For purposes of determining the size 
     of a small business concern seeking funds for a project 
     described in subsection (b)(3), the size standard promulgated 
     by the Administrator in section 121.201 of title 13, Code of 
     Federal Regulations, as in effect on January, 1, 2009, or any 
     successor regulation, shall be increased by 25 percent.
       ``(2) Personal liquidity.--
       ``(A) In general.--The amount of personal resources of an 
     owner for a project described in subsection (b)(3) that are 
     excluded from the amount required to reduce the portion of 
     the project funded by the Administrator shall be not less 
     than 25 percent more than that required for funding of any 
     other project described in subsection (b).
       ``(B) Definition.--For purposes of subparagraph (A), the 
     term `owner' means any person that owns not less than 20 
     percent of the equity or has not less than 20 percent of the 
     voting rights (in the case of a small business organized as a 
     partnership) of a small business concern seeking funds under 
     this section.

[[Page 26174]]

       ``(h) Applicability of Credit Elsewhere and Personal 
     Resources Regulations.--Except as provided in subsection 
     (c)(1)(B) with respect to project funding, the Administrator 
     shall be prohibited from applying the regulations set forth 
     in sections 120.101 and 120.102 of title 13, Code of Federal 
     Regulations, as in effect on January 1, 2009, or any 
     successor regulation that applies a credit elsewhere or 
     personal resources test to any application for a loan under 
     this title pending or filed after the date of enactment of 
     the Small Business Financing and Investment Act of 2009.''.

     SEC. 219. PRIVATE DEBENTURE SALES AND POOLING OF DEBENTURES.

       Section 509 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697f) is amended to read as follows:

     ``SEC. 509. PRIVATE DEBENTURE SALES AND POOLING OF 
                   DEBENTURES.

       ``(a) Private Debenture Sales.--Notwithstanding any other 
     law, rule, or regulation, the Administrator shall sell to 
     investors, either publicly or by private placement, 
     debentures issued by certified development companies pursuant 
     to this title for the full amount of the program levels 
     authorized in each fiscal year and if there is not 
     authorization of a level, the amount of debentures actually 
     issued.
       ``(b) Federal Financing Bank.--Nothing in any provision of 
     law shall be construed to authorize the Federal Financing 
     Bank to acquire--
       ``(1) any obligation the payment of principal or interest 
     on which at any time has been guaranteed in whole or in part 
     under this title and which is being sold pursuant to the 
     provisions of this section;
       ``(2) any obligation which is an interest in any obligation 
     which is an interest in any obligation described in paragraph 
     (1); or
       ``(3) any obligation which is secured by, or substantially 
     all of the value of which is attributable to, any obligation 
     described in paragraph (1) or (2).
       ``(c) Pooling of Debentures.--
       ``(1) In general.--The Administrator is authorized to issue 
     trust certificates representing ownership of all or a 
     fractional part of debentures issued by certified development 
     companies and guaranteed under this title if such trust 
     certificates are based on and backed by a trust or pool 
     approved by the Administrator and composed solely of 
     guaranteed debentures.
       ``(2) Guarantee of trust certificates.--The Administrator 
     is authorized, upon such terms and conditions as are deemed 
     appropriate, to guarantee the timely payment of the principal 
     of and interest on trust certificates issued by the 
     Administrator or its agent for purposes of this section. Such 
     guarantee shall be limited to the extent of principal and 
     interest on the guaranteed debentures which compose the trust 
     or pool. In the event that a debenture in such trust or pool 
     is prepaid, either voluntarily or in the event of default, 
     the guarantee of timely payment of principal and interest on 
     the trust certificates shall be reduced in proportion to the 
     amount of principal and interest such prepaid debenture 
     represents in the trust or pool. Interest on prepaid or 
     defaulted debentures shall accrue and be guaranteed by the 
     Administrator only through the date of payment on the 
     guarantee. During the term of the trust certificate, it may 
     be called for redemption due to prepayment or default of all 
     debentures constituting the pool.
       ``(3) Full faith and credit.--The full faith and credit of 
     the United States is pledged to the payment of all amounts 
     which may be required to be paid under any guarantee of such 
     trust certificates issued by the Administrator or its agent 
     pursuant to this section.
       ``(4) Prohibition on guarantee fee for pools.--The 
     Administrator shall not collect any fee for any guarantee 
     under this section, provided that nothing herein shall 
     preclude any agent of the Administrator from collecting a fee 
     approved by the Administrator for the functions performed in 
     paragraph (6)(F).
       ``(5) Subrogation.--
       ``(A) In general.--In the event the Administrator pays a 
     claim under a guarantee issued under this section, it shall 
     be subrogated fully to the rights satisfied by such payment.
       ``(B) Administrator exercise of rights.--No Federal, State, 
     or local law shall preclude or limit the exercise by the 
     Administrator of its ownership rights in the debentures 
     constituting the trust or pool against which the trust 
     certificates are issued.
       ``(6) Central registration.--
       ``(A) In general.--The Administrator shall provide for a 
     central registration of all trust certificates sold pursuant 
     to this section.
       ``(B) Contract.--The Administrator shall contract with an 
     agent to carry out on behalf of the Administrator the central 
     registration functions of this section and the issuance of 
     trust certificates to facilitate pooling.
       ``(C) Bond.--The Administrator shall require the contractor 
     to provide a fidelity bond or insurance in such amounts as is 
     deemed necessary to fully protect the interests of the 
     Government.
       ``(D) Disclosure requirements.--The Administrator shall, 
     prior to any sale, require the seller to disclose to a 
     purchaser of a trust certificate issued pursuant to this 
     section, information on terms, conditions, and yield of such 
     instruments.
       ``(E) Authority to regulate.--The Administrator shall have 
     the authority to regulate brokers and dealers in trust 
     certificates sold pursuant to this section.
       ``(F) Book entry permitted.--Nothing in this paragraph 
     shall prohibit the utilization of a book-entry or other 
     electronic form of registration for trust certificates.''.

     SEC. 220. FORECLOSURE AND LIQUIDATION OF LOANS.

       Section 510 of the Small Business Investment Act of 1958 
     (15 U.S.C. 697g) is amended to read as follows:

     ``SEC. 510. FORECLOSURE AND LIQUIDATION OF LOANS.

       ``(a) Delegation of Authority.--In accordance with this 
     section, the Administrator shall delegate to any certified 
     development company that meets the eligibility requirements 
     of subsection (b)(1), the authority to foreclose and 
     liquidate, or to otherwise treat in accordance with this 
     section, defaulted loans in its portfolio that are funded 
     with the proceeds of debentures guaranteed by the 
     Administrator pursuant to this title.
       ``(b) Eligibility for Delegation.--
       ``(1) Requirements.--A certified development company shall 
     be eligible for a delegation of authority under subsection 
     (a) if--
       ``(A) the certified development company--
       ``(i) has participated in the loan liquidation pilot 
     program established by the Small Business Programs 
     Improvement Act of 1996 (15 U.S.C. 695 note), before the 
     enactment of the Small Business Financing and Investment Act 
     of 2009;
       ``(ii) is an accredited or premier certified development 
     company; or
       ``(iii) during the 3 fiscal years immediately prior to 
     seeking such a delegation, has made an average of not less 
     than 10 loans per year that are funded with the proceeds of 
     debentures guaranteed under this title; and
       ``(B) the certified development company--
       ``(i) has one or more employees--

       ``(I) with not less than 2 years of substantive, 
     decisionmaking experience in administering the liquidation 
     and workout of problem loans secured in a manner 
     substantially similar to loans funded with the proceeds of 
     debentures guaranteed under this title; and
       ``(II) who have completed a training program on loan 
     liquidation developed by the Administrator in conjunction 
     with a certified development company that meet the 
     requirements of this paragraph; or

       ``(ii) submits to the Administrator documentation 
     demonstrating that the company has contracted with a 
     qualified third party to perform any liquidation activities 
     and secures the approval of the contract by the Administrator 
     with respect to the qualifications of the contractor and the 
     terms and conditions of liquidation activities.
       ``(2) Confirmation.--On the request, the Administrator 
     shall examine the qualifications of any certified development 
     company described in subsection (a) to determine if such 
     company is eligible for the delegation of authority under 
     this section. If the Administrator determines that a company 
     is not eligible, the Administrator shall provide the company, 
     in writing, with the reasons for such ineligibility. The 
     certified development company shall be entitled to request 
     delegated authority and the Administrator shall review the 
     request only to address whether the certified development 
     company has rectified the reasons for the Administrator's 
     original determination of ineligibility.
       ``(c) Scope of Delegated Authority.--
       ``(1) In general.--Each certified development company to 
     which the Administrator delegates authority under subsection 
     (a) may with respect to any loan described in subsection 
     (a)--
       ``(A) perform all liquidation and foreclosure functions, 
     including the purchase in accordance with this subsection of 
     any other indebtedness secured by the property securing the 
     loan, in a reasonable and sound manner according to 
     commercially accepted practices, pursuant to a liquidation 
     plan approved in advance by the Administrator under paragraph 
     (2)(A);
       ``(B) litigate any matter relating to the performance of 
     the functions described in subparagraph (A), except that the 
     Administrator may--
       ``(i) defend or bring any claim if--

       ``(I) the outcome of the litigation may adversely affect 
     the Administrator's management of the program established 
     under this title; or
       ``(II) the Administrator is entitled to legal remedies not 
     available to a certified development company and such 
     remedies will benefit either the Administrator or the 
     certified development company; and

       ``(ii) oversee the conduct of any such litigation; and
       ``(C) take other appropriate actions to mitigate loan 
     losses in lieu of total liquidation or foreclosures, 
     including the restructuring of a loan in accordance with 
     prudent loan servicing practices and pursuant to a workout 
     plan approved in advance by the Administrator under paragraph 
     (2).
       ``(2) Administrator approval of plans.--
       ``(A) Certified development company submission of plans.--
     Before carrying out functions described in paragraph (1)(A) 
     or (1)(C), the certified development company shall

[[Page 26175]]

     submit to the Administrator a proposed liquidation plan, any 
     proposal for the Administrator to the purchase of any other 
     indebtedness secured by the property securing a defaulted 
     loan, or a workout plan or any combination thereof.
       ``(B) Administrator approval procedures.--
       ``(i) Timing.--Not later than 15 business days after the 
     plans described in subparagraph (A) are received by the 
     Administrator, the Administrator shall approve or reject the 
     plan.
       ``(ii) Notice of no decision.--With respect to any plan 
     that cannot be approved or denied within the 15-day period 
     required by clause (i), the Administrator shall within such 
     period provide in accordance with subparagraph (E) notice to 
     the company that submitted the plan.
       ``(C) Routine actions.--In carrying out the functions 
     described in paragraph (1)(A), a certified development 
     company may undertake routine actions not addressed in a 
     liquidation or workout plan without obtaining additional 
     approval from the Administrator.
       ``(D) Compromise of indebtedness.--In carrying out 
     functions described in paragraph (1)(A), a certified 
     development company may--
       ``(i) consider an offer made by an obligor to compromise 
     the debt for less than the full amount owing; and
       ``(ii) pursuant to such offer, release any obligor or other 
     party contingently liable, if the company secures the written 
     approval of the Administrator.
       ``(E) Contents of notice of no decision.--Any notice 
     provided by the Administrator pursuant to subparagraph 
     (B)(ii) shall--
       ``(i) be in writing stating the specific reasons for which 
     the Administrator was unable to act on the request submitted 
     pursuant to subparagraph (A);
       ``(ii) provide an estimate of the additional time needed 
     for the Administrator to reach a decision on the request; and
       ``(iii) specify any additional information or documentation 
     that the Administrator needs to make a decision but was not 
     provided in the plan submitted by the certified development 
     company.
       ``(3) Conflict of interest.--In carrying out functions 
     described in paragraph (1), a certified development company 
     shall take no action that would result in an actual or 
     apparent conflict of interest between the company (or any 
     employee of the company) and any third-party lender, 
     associate of a third-party lender, or any other person 
     participating in a liquidation, foreclosure, or loss 
     mitigation action.
       ``(d) Suspension or Revocation of Authority.--
       ``(1) In general.--The Administrator may revoke or suspend 
     a delegation of authority under this section to a certified 
     development company if the Administrator determines that the 
     company--
       ``(A) does not meet the requirements of subsection (b)(1);
       ``(B) violated any applicable law or rule or regulation of 
     the Administrator that in the estimation of the Administrator 
     requires revocation; or
       ``(C) fails to comply with any reporting that may be 
     established by the Administrator relating to the 
     establishment of eligibility in subsection (b)(1) or carrying 
     out the functions described in subsection (c)(1).
       ``(2) Written notice.--The Administrator shall provide in 
     writing detailed reason why the delegation of authority was 
     suspended or revoked.
       ``(e) Participation in Liquidation.--
       ``(1) In general.--
       ``(A) Contract with qualified third party.--A certified 
     development company which elects not to apply for authority 
     to foreclose and liquidate defaulted loans under this 
     section, or which the Administrator determines to be 
     ineligible for such authority, shall contract with a 
     qualified third party to perform foreclosure and liquidation 
     of defaulted loans in its portfolio.
       ``(B) Contract approval.--The contract entered into by the 
     certified development company specified in subparagraph (A) 
     shall be contingent upon approval by the Administrator with 
     respect to the qualifications of the contractor and the terms 
     and conditions of liquidation activities. The Administrator 
     shall not unreasonably withhold such approval.
       ``(C) Notification of rejection.--If the Administrator 
     rejects the contract, the Administrator shall provide a 
     notice to the certified development company, in writing, 
     explaining the reasons for such rejection within ten business 
     days after submission of the contract.
       ``(D) Resubmittal.--The certified development company shall 
     be permitted to resubmit the contract and the Administrator's 
     review of any such resubmittal shall be limited to 
     insufficiencies described in the notification of rejection.
       ``(E) Regulations.--The Administrator shall promulgate 
     regulations, after notice and opportunity for comment, 
     adopting standards for the approval of qualified third-party 
     contractors within 90 days after the date of enactment of the 
     Small Business Financing and Investment Act of 2009.
       ``(F) Failure to promulgate regulations.--If the 
     Administrator fails to promulgate such regulations, any 
     contract for liquidation entered into by a certified 
     development company under this subsection shall be considered 
     valid for the purposes of this subsection and subsection (f).
       ``(G) Effect of administrator's promulgation of 
     regulations.--If the Administrator promulgates regulations 
     after the deadline specified in subparagraph (E), those 
     regulations shall not have any retroactive application with 
     respect to contracts that are described in subparagraph (F).
       ``(2) Commencement.--This subsection shall not require any 
     certified development company to liquidate defaulted loans 
     until the Administrator implements a system to compensate and 
     reimburse certified development companies for liquidation of 
     any defaulted loans.
       ``(f) Compensation and Reimbursement.--
       ``(1) Reimbursement of expenses.--The Administrator shall 
     reimburse each certified development company for all expenses 
     paid by such company as part of the foreclosure and 
     liquidation activities taken to carry out this section, if 
     the expenses--
       ``(A) were--
       ``(i) approved in advance by the Administrator, either 
     specifically in a plan submitted pursuant to subsection (c) 
     or generally, such as, but not limited to, actions approved 
     by the Administrator in regulations or other interpretative 
     issuances; or
       ``(ii) incurred by the development company on an emergency 
     basis without prior approval from the Administrator, if the 
     Administrator determines that the expenses were reasonable 
     and appropriate; and
       ``(B) are submitted by the certified development company to 
     the Administrator not later than 3 years after the date the 
     expense was incurred or the bill therefore is submitted to 
     the certified development company, whichever is later.
       ``(2) Alternative reimbursement.--As an alternative to the 
     procedure in paragraph (1), a certified development company 
     may elect to obtain reimbursement for all such expenses from 
     the proceeds of any collateral provided by the borrower that 
     was liquidated by the certified development company if the 
     expenses comply with the requirements of paragraph (1). 
     Within 6 months of the reimbursement, the certified 
     development company shall provide the Administrator with the 
     same information and documentation it would be required to 
     submit to obtain payment from the Administrator.
       ``(3) Regulations.--The Administrator shall promulgate 
     regulations, after notice and comment to carry out the 
     provisions of paragraphs (1) and (2). If the Administrator 
     does not promulgate such regulations within one year, 
     certified development companies shall be authorized, 
     notwithstanding the requirements of subsection (e)(2), to 
     liquidate defaulted loans and such costs and expenses 
     incurred, absent clear and convincing evidence of fraud, 
     shall be deemed to be approved.
       ``(4) Compensation for results.--
       ``(A) Development.--In regulations promulgated pursuant to 
     paragraph (3), the Administrator also shall develop a 
     schedule of compensation that provides monetary incentives 
     for certified development companies in order to increase 
     recoveries on defaulted loans.
       ``(B) Criteria.--The schedule shall--
       ``(i) be based on a percentage of the net amount recovered, 
     but shall not exceed a maximum amount; and
       ``(ii) not apply to any foreclosure which is conducted 
     under a contract between a certified development company and 
     a qualified third party to perform the foreclosure and 
     liquidation.
       ``(C) Payment.--The Administrator shall transmit the 
     compensation provided herein to the development company from 
     the proceeds of liquidated collateral, unless the 
     Administrator utilizes another source for funds, within 30 
     days from the date when the liquidation case has been closed 
     and documentation received.''.

     SEC. 221. REPORTS AND REGULATIONS.

       Title V of the Small Business Investment Act of 1958 (15 
     U.S.C. 695 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 511. REPORTS.

       ``(a) Premier Certified Development Companies.--The 
     Administrator shall report annually to the Committee on Small 
     Business of the House of Representatives and the Committee on 
     Small Business and Entrepreneurship of the Senate on the 
     implementation of section 504. Each report shall include--
       ``(1) the number of premier certified development 
     companies;
       ``(2) the debenture volume of each premier certified 
     development company;
       ``(3) a comparison of the loss rate for premier certified 
     development companies to the loss rate for accredited or 
     certified development companies; and
       ``(4) such other information as the Administrator deems 
     appropriate.
       ``(b) Reports on Liquidation and Foreclosures.--
       ``(1) In general.--Based on information provided by 
     certified development companies and the Administrator, the 
     Administrator shall submit annually to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives a report

[[Page 26176]]

     on the results of delegation of authority under section 510.
       ``(2) Contents.--Each report submitted under paragraph (1) 
     shall include the following information:
       ``(A) With respect to each loan foreclosed or liquidated by 
     a certified development company, or for which losses were 
     otherwise mitigated by pursuant to a workout plan--
       ``(i) the total cost of the project financed with the loan;
       ``(ii) the total original dollar amount guaranteed by the 
     Administration;
       ``(iii) the total dollar amount of the loan at the time of 
     liquidation, foreclosure, or mitigation of loss;
       ``(iv) the total dollar losses resulting from the 
     liquidation, foreclosure, or mitigation of loss; and
       ``(v) the total recoveries resulting from the liquidation, 
     foreclosure, or mitigation of loss, both as a percentage of 
     the amount guaranteed and the total cost of the project 
     financed.
       ``(B) With respect to each certified development company to 
     which authority is delegated under section 510, the totals of 
     each of the amounts described in clauses (i) through (v) of 
     subparagraph (A).
       ``(C) With respect to each certified development company 
     that contracts with a qualified third-party contractor 
     pursuant to section 510(e), the total of each of the amounts 
     described in clauses (i) through (v) of subparagraph (A).
       ``(D) With respect to all loans subject to foreclosure, 
     liquidation, or mitigation under section 510, the totals of 
     each of the amounts described in clauses (i) through (v) of 
     subparagraph (A).
       ``(E) A comparison between--
       ``(i) the information provided under subparagraph (D) with 
     respect to the 12-month period preceding the date on which 
     the report is submitted; and
       ``(ii) the same information with respect to loans 
     foreclosed and liquidated, or otherwise treated, by the 
     Administrator during the same period.
       ``(F) The number of times that the Administrator has failed 
     to approve or reject a liquidation plan, workout plan, 
     request to purchase indebtedness, or failed to approve a 
     third-party contractor under section 510, including specific 
     information regarding the reasons for the Administrator's 
     failure and any delays that resulted.
       ``(c) Reports on Combination Financing.--
       ``(1) Reporting requirement.--Not later than 90 days after 
     the date of enactment of the Small Business Financing and 
     Investment Act of 2009, and annually thereafter, 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 that--
       ``(A) includes the number of small business concerns that 
     have financing under both section 7(a) of the Small Business 
     Act (15 U.S.C. 636(a)) and title V of the Small Business 
     Investment Act of 1958 (15 U.S.C. 695 et seq.) during the 
     year before the year of that report; and
       ``(B) describes the total amount and general performance of 
     the financing described in subparagraph (A).
       ``(d) Report on Other Economic Development Activity.--The 
     Administrator shall compile and submit to the Committee on 
     Small Business of the House of Representatives and the 
     Committee on Small Business and Entrepreneurship of the 
     Senate on an annual basis, commencing in the year that the 
     Small Business Financing and Investment Act of 2009 is 
     enacted, a report that describes the economic and community 
     development activities, other than loan making under this 
     title, of each certified development company during the prior 
     fiscal year. The Administrator may contract with another 
     party, including non-governmental entities, to collect 
     information or otherwise assist in the preparation of the 
     report required by this subsection.

     ``SEC. 512. PROMULGATION OF REGULATIONS UNDER THIS TITLE.

       ``(a) Deadlines for Implementing Regulations.--Except as 
     expressly provided elsewhere in the Small Business Financing 
     and Investment Act of 2009, the Administrator shall 
     promulgate regulations under this title, after providing 
     notice and the opportunity for comment, within 180 days after 
     the date of enactment of that Act.
       ``(b) Notice and Comment Requirements in General.--Except 
     as otherwise provided elsewhere in this title, the 
     Administrator shall provide, after the date of enactment of 
     the Small Business Financing and Investment Act of 2009, 
     notice of any proposed change to a regulation implementing 
     this title (whether in existence on the date of enactment of 
     the Small Business Financing and Investment Act of 2009 or 
     subsequently adopted), publish such notification in the 
     Federal Register, and provide a comment period of not less 
     than 60 days.''.

     SEC. 222. PROGRAM NAME.

       Title V of the Small Business Investment Act of 1958 (15 
     U.S.C. 695 et seq.), as amended by this Act, is further 
     amended by adding at the end the following:

     ``SEC. 513 PROGRAM NAME.

       ``(a) In General.--The program created by this title shall 
     be referred to as the CDC Economic Development Loan Program.
       ``(b) Modification of Materials Used.--Not later than 60 
     days after the date of enactment of the Small Business 
     Financing and Investment Act of 2009, the Administrator shall 
     modify all documents and websites to conform to the name 
     change made by this section.''.

                       Subtitle C--Miscellaneous

     SEC. 231. REPORT ON STANDARD OPERATING PROCEDURES.

       (a) Report.--The Administrator of the Small Business 
     Administration shall submit to the Committee on Small 
     Business of the House of Representatives and the Committee on 
     Small Business and Entrepreneurship of the Senate a report 
     within 180 days after enactment of this Act identifying each 
     Standard Operating Procedure issued after January 1, 1996, 
     that relates to the operation of a development company (in 
     any manner) under title V of the Small Business Investment 
     Act of 1958, that is still in effect on the date of enactment 
     of this Act, and the regulation codified in title 13 of the 
     Code of Federal Regulations that authorizes the issuance of 
     the Standard Operating Procedure and separately identifies 
     the regulation that the Standard Operating Procedure purports 
     to interpret.
       (b) Inapplicability.--If the Administrator fails to 
     complete the report by the time specified in subsection (a), 
     the Administrator shall, unless there is clear and convincing 
     evidence of fraud, honor the terms and conditions of any 
     debenture to the entity that issued the debenture pursuant to 
     title V of the Small Business Investment Act of 1958 without 
     regard to whether the entity complied with any of the 
     Standard Operating Procedures described in subsection (a) 
     until such time as the Administrator submits the report 
     required under subsection (a).
       (c) Definition.--For purposes of this section, the term 
     ``Standard Operating Procedure'' has the meaning given that 
     term in section 120.10 of title 13, Code of Federal 
     Regulations, as in effect on January 1, 2009, and includes 
     any reference to the acronym ``SOP''.

     SEC. 232. ALTERNATIVE SIZE STANDARD.

       (a) Review and Study.--
       (1) In general.--The Administrator of the Small Business 
     Administration shall study and review the optional size 
     standard set forth in section 121.301(b) of title 13, Code of 
     Federal Regulations, as in effect on January 1, 2009, for 
     eligibility of a small business concern for financing under 
     title V of the Small Business Investment Act of 1958.
       (2) Contents.--The review shall analyze whether the 
     alternative size standard includes the business concerns 
     defined in section 3(a)(1) of the Small Business Act and 
     what, if any, regulatory changes are needed in the 
     alternative size standard.
       (3) Submission to congress.--The Administrator shall submit 
     its study and conclusions within 180 days after the date of 
     enactment of the Small Business Financing and Investment Act 
     of 2009 to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives.
       (b) Issuance of Regulations.--Any changes in the optional 
     size standard described in subsection (a)(1) shall be 
     promulgated within 180 days of the submission of the report 
     to committees referred to in paragraph (3) of subsection (a).
       (c) Interim Alternative Size Standard.--Until the 
     Administrator promulgates regulations either readopting the 
     size standard referred to in subsection (a)(1) or adopts a 
     new alternative size standard, the alternative size standard 
     shall be a maximum tangible net worth of not more than 
     $15,000,000 and an average net income after the payment of 
     Federal taxes (but excluding any carryover losses) for the 
     preceding two fiscal years not more than $5,000,000.

                   TITLE III--MICROLENDING EXPANSION

     SEC. 301. MICROLOAN CREDIT BUILDING INITIATIVE.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended by adding at the end the following:
       ``(14) Credit reporting information.--The Administrator 
     shall establish a process, for use by an intermediary making 
     a loan to a borrower under this subsection, under which the 
     intermediary shall provide to the major credit reporting 
     agencies the information about the borrower, both positive 
     and negative, that is relevant to credit reporting, such as 
     the payment activity of the borrower on the loan. Such 
     process shall allow an intermediary the option of providing 
     information to the major credit reporting agencies through 
     the Administration or independently.''.

     SEC. 302. FLEXIBLE CREDIT TERMS.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), 
     as amended by this Act, is further amended--
       (1) in paragraph (1)(B)(i) by striking ``short-term,'';
       (2) in paragraph (6)(A) by striking ``short-term,''; and
       (3) in paragraph (11)(B) by striking ``short-term,''.

     SEC. 303. INCREASED PROGRAM PARTICIPATION.

       Section 7(m)(2) of the Small Business Act (15 U.S.C. 
     636(m)(2)) is amended--

[[Page 26177]]

       (1) in subparagraph (A) by striking ``paragraph (10)'' and 
     inserting ``paragraph (11)''; and
       (2) by amending subparagraph (B) to read as follows:
       ``(B) has--
       ``(i) at least--

       ``(I) 1 year of experience making microloans to startup, 
     newly established, or growing small business concerns; or
       ``(II) 1 full-time employee who has not less than 3 years 
     of experience making microloans to startup, newly 
     established, or growing small business concerns; and

       ``(ii) at least--

       ``(I) 1 year of experience providing, as an integral part 
     of its microloan program, intensive marketing, management, 
     and technical assistance to its borrowers; or
       ``(II) 1 full-time employee who has not less than 1 year of 
     experience providing intensive marketing, management, and 
     technical assistance to borrowers.''.

     SEC. 304. INCREASED LIMIT ON INTERMEDIARY BORROWING.

       Section 7(m)(3)(C) of the Small Business Act (15 U.S.C. 
     636(m)(3)(C)) is amended--
       (1) by striking ``$750,000'' and inserting ``$1,000,000'';
       (2) by striking ``$3,500,000'' and inserting 
     ``$7,000,000''; and
       (3) by adding at the end the following: ``The Administrator 
     may treat the amount of $7,000,000 in this subparagraph as if 
     such amount is $10,000,000 if the Administrator determines, 
     with respect to an intermediary, that such treatment is 
     appropriate.''.

     SEC. 305. EXPANDED BORROWER EDUCATION ASSISTANCE.

       Section 7(m)(4)(E) of the Small Business Act (15 U.S.C. 
     636(m)(4)(E)) is amended--
       (1) in clause (i) by striking ``25 percent'' and inserting 
     ``35 percent''; and
       (2) in clause (ii) by striking ``25 percent'' and inserting 
     ``35 percent''.

     SEC. 306. INTEREST RATES AND LOAN SIZE.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), 
     as amended by this Act, is further amended--
       (1) in paragraph (3)(F)(iii) by striking ``$7,500'' and 
     inserting ``$10,000'';
       (2) in paragraph (6)(C)(i) by striking ``$7,500'' and 
     inserting ``$10,000''; and
       (3) in paragraph (6)(C)(ii) by striking ``$7,500'' and 
     inserting ``$10,000''.

     SEC. 307. REPORTING REQUIREMENT.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(15) Reporting requirement.--Not later than 90 days after 
     the end of each fiscal year, the Administrator shall submit 
     to the Committee on Small Business of the House of 
     Representatives and the Committee on Small Business and 
     Entrepreneurship of the Senate a report that includes, with 
     respect to such fiscal year of the microloan program, the 
     following:
       ``(A) The names and locations of each intermediary that 
     received funds to make microloans or provide marketing, 
     management, and technical assistance.
       ``(B) The amounts of each loan and each grant provided to 
     each such intermediary in such fiscal year and in prior 
     fiscal years.
       ``(C) A description of the contributions from non-Federal 
     sources of each such intermediary.
       ``(D) The number and amounts of microloans made by each 
     such intermediary to all borrowers and to each of the 
     following:
       ``(i) Women entrepreneurs and business owners.
       ``(ii) Low-income entrepreneurs and business owners.
       ``(iii) Veteran entrepreneurs and business owners.
       ``(iv) Disabled entrepreneurs and business owners.
       ``(v) Minority entrepreneurs and business owners.
       ``(E) A description of the marketing, management, and 
     technical assistance provided by each such intermediary to 
     all borrowers and to each of the following:
       ``(i) Women entrepreneurs and business owners.
       ``(ii) Low-income entrepreneurs and business owners.
       ``(iii) Veteran entrepreneurs and business owners.
       ``(iv) Disabled entrepreneurs and business owners.
       ``(v) Minority entrepreneurs and business owners.
       ``(F) The number of jobs created and retained as a result 
     of microloans and marketing, management, and technical 
     assistance provided by each such intermediary.
       ``(G) The repayment history of each such intermediary.
       ``(H) The number of businesses that achieved success after 
     receipt of a microloan.''.

     SEC. 308. SURPLUS INTEREST RATE SUBSIDY FOR BUSINESSES.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(16) Interest assistance.--The Administrator is 
     authorized to make grants to intermediaries for the purposes 
     of reducing interest rates charged to borrowers that receive 
     financing under this subsection.''.

     SEC. 309. AUTHORIZATION OF APPROPRIATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note), 
     as amended by this Act, is further amended by inserting after 
     subsection (g) the following:
       ``(h) Fiscal Years 2010 and 2011 With Respect to Section 
     7(m).--
       ``(1) Program levels.--For the programs authorized by this 
     Act, the Administration is authorized to make during each of 
     fiscal years 2010 and 2011--
       ``(A) $80,000,000 in technical assistance grants, as 
     provided in section 7(m); and
       ``(B) $110,000,000 in direct loans, as provided in section 
     7(m).
       ``(C) $10,000,000 in interest assistance grants, as 
     provided in section 7(m)(16).
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated such sums as may be necessary to carry out 
     paragraph (1).''.

       TITLE IV--SMALL BUSINESS INVESTMENT COMPANY MODERNIZATION

     SEC. 401. INCREASED INVESTMENT FROM STATES.

       Section 103(13)(C) of the Small Business Investment Act of 
     1958 (15 U.S.C. 662(13)(C)) is amended by striking ``33 
     percent'' and inserting ``45 percent''.

     SEC. 402. EXPEDITED LICENSING FOR EXPERIENCED APPLICANTS.

       Section 301 of the Small Business Investment Act of 1958 
     (15 U.S.C. 681) is amended by inserting after subsection (c) 
     the following new subsection:
       ``(d) Licenses for Experienced Applicants.--
       ``(1) In general.--Notwithstanding any other provision of 
     this section, not later than 60 days after the initial 
     receipt by the Administrator of any request (which shall be 
     deemed to be the application) for a license to operate as a 
     small business investment company under this Act, the 
     Administrator shall approve the request and issue such 
     license if each of the following requirements is satisfied:
       ``(A) At least 50 percent of the principal managers of the 
     applicant consist of at least two-thirds of the principal 
     managers of a small business investment company that has been 
     licensed under this Act.
       ``(B) The licensed small business investment company 
     specified under subparagraph (A) has operated under such 
     license for at least 3 years prior to the receipt of the 
     request specified in this paragraph.
       ``(C) The licensed small business investment company 
     specified under subparagraph (A)--
       ``(i) either has invested at least 70 percent of its 
     private capital and drawn at least 50 percent of its 
     projected leverage at the time of the receipt of the request 
     specified in this paragraph or reserved for investment and 
     expenses or some combination of both at least 70 percent of 
     its private capital in the one-year period prior to the date 
     on which the application referred to in this paragraph was 
     received by the Administrator;
       ``(ii) has maintained 6 consecutive quarters of profitable 
     net investment income; and
       ``(iii) has made at least 3 exits from investments in small 
     businesses that have realized profits from those respective 
     investments.
       ``(D) The applicant submits to the Administrator, in 
     writing, an application consisting of all of the following:
       ``(i) A certification, in the form prescribed by the 
     Administrator, that such applicant satisfies the requirements 
     of this subsection and that all information contained in the 
     application is true and complete.
       ``(ii) A copy of the organizational documents of the 
     applicant.
       ``(iii) A copy of the operating plan of the applicant 
     demonstrating that at least 50 percent of the amount of the 
     planned investments of the applicant will be in the same or 
     substantially similar investment stage and use the same or 
     substantially similar type of investment instruments as the 
     investments of the licensed small business investment company 
     specified under subparagraph (A).
       ``(iv) A certification, in a form prescribed by the 
     Administrator, that the applicant satisfies the requirements 
     of subsections (a) and (c) of section 302 of this Act.
       ``(E) The applicant is in good standing as set forth in 
     paragraph (2).
       ``(F) The applicant pays all fees prescribed by the 
     Administrator under subsection (e).
       ``(2) Good standing.--For purposes of this subsection, an 
     applicant is in good standing if--
       ``(A) a licensed leveraged debentured or non-leveraged 
     small business investment company specified under paragraph 
     (1)(A) is actively operating under this Act on the date of 
     the initial receipt of the application by the Administrator 
     to which this subsection applies;
       ``(B) no principal manager of the applicant has been found 
     liable in a civil action for fraud if the Administrator makes 
     a reasonable determination based on evidence in the agency 
     record that such liability has a material adverse effect on 
     the ability of the applicant to perform obligations required 
     by a license issued pursuant to this Act; and
       ``(C) no principal manager is under investigation by a 
     governmental agency or authority for, is under indictment 
     for, or has been convicted of a felony for a violation of 
     Federal or State securities laws, fraud, or

[[Page 26178]]

     another criminal violation if such investigation, indictment, 
     or conviction has a material adverse effect on the ability of 
     the applicant to perform obligations under a license issued 
     under this Act.
       ``(3) Limitation.--
       ``(A) In general.--The Administrator may remove an 
     application from the approval process under this subsection 
     if the Administrator determines based on evidence in the 
     agency record that the approval of the license would present 
     an unacceptable risk to the Federal Government.
       ``(B) In writing.--Such determination shall be made in 
     writing and provided to the applicant no later than 10 
     calendar days after such determination is made. Failure to 
     provide this determination to the applicant shall be deemed 
     to be a permanent waiver of the Administrator's authority to 
     remove an application pursuant to this subsection.
       ``(C) Non-delegability.--The Administrator may rely on 
     agency personnel to collect data or other material relevant 
     to establishing a record, but the decision to remove the 
     application may not be delegated by the Administrator to any 
     subordinate personnel in the agency.
       ``(4) Notice and opportunity to cure non-conformance.--
       ``(A) Notice of non-conformance.--Except for a 
     determination made pursuant to paragraph (3), the 
     Administrator shall provide an applicant described in 
     paragraph (1) within 60 days after receipt of the application 
     a written notice and description of any nonconformance with 
     any requirement of this subsection based on evidence in the 
     agency record.
       ``(B) Opportunity to cure.--The applicant shall have 30 
     days following the receipt of notice of nonconformance or the 
     receipt of removal as set forth in paragraph (3) to cure such 
     nonconformance.
       ``(C) Failure to provide notice.--Failure to provide the 
     notice within the time limit set forth in subparagraph (A) 
     shall be deemed to be acceptance by the Administrator of the 
     applicant's conformance with the requirements of this 
     subsection.
       ``(5) Background reviews.--The Administrator shall ensure 
     that a timely background check of the principal managers of 
     each applicant is completed with respect to paragraphs (2)(B) 
     and (2)(C).
       ``(6) Fees.--The Administrator may charge an applicant 
     additional fees for carrying out the background reviews 
     mandated by paragraph (5). Such fees shall not exceed 
     $10,000.
       ``(7) Effect of non-qualification.--The failure of an 
     applicant to qualify for expedited licensure under this 
     subsection shall have no effect on an existing license or the 
     ability for the applicant or any of its individual managers 
     to apply for or receive a license to operate a small business 
     investment company under the procedures established elsewhere 
     in this Act or its implementing regulations.
       ``(8) Regulations.--The Administrator shall develop forms 
     and promulgate regulations to implement this subsection after 
     providing an opportunity for notice and comment. Regulations 
     promulgated pursuant to this paragraph shall be published in 
     the Code of Federal Regulations.''.

     SEC. 403. REVISED LEVERAGE LIMITATIONS FOR SUCCESSFUL SBICS.

       (a) Maximum Leverage.--Section 303(b)(2) of the Small 
     Business Investment Act of 1958 (15 U.S.C. 683(b)(2)) is 
     amended by striking so much of paragraph (2) as precedes 
     subparagraph (C) and inserting the following:
       ``(2) Maximum leverage.--
       ``(A) In general.--(i) The maximum amount of outstanding 
     leverage made available to any one company licensed under 
     section 301(c) of this Act may not exceed the lesser of--

       ``(I) 300 percent of such company's private capital; or
       ``(II) $150,000,000.

       ``(ii) In applying clause (i)(I) in the case of a debenture 
     licensee which is in good standing without the imposition of 
     additional regulatory standards and whose financings at cost 
     are comprised of at least 50 percent of loans and debt 
     securities, such licensee may be leveraged as follows:
       ``(I) The first one-third of private capital to 300 
     percent.
       ``(II) The second one-third of private capital to 200 
     percent.
       ``(III) The last third of private capital to 100 percent.
       ``(iii) Notwithstanding clause (i), in the case of any 
     company operating as a business development company (as such 
     term is defined under section 2(a)(48) of the Investment 
     Company Act of 1940) or a majority-owned subsidiary of such a 
     company that is in good standing without the imposition of 
     additional regulatory requirements, the maximum amount of 
     outstanding leverage made available to such company shall be 
     $250,000,000.
       ``(B) Multiple licensees under common control.--The maximum 
     amount of outstanding leverage made available to two or more 
     debenture companies licensed under section 301(c) of this Act 
     that are commonly controlled (as determined by the 
     Administrator) and not under capital impairment may not 
     exceed $350,000,000.''.
       (b) Regulations.--Section 303(b)(2) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 683(b)(2)), as amended by 
     this Act, is further amended by adding at the end the 
     following:
       ``(E) Regulations.--The Administrator shall promulgate 
     regulations, after notice and opportunity for comment, 
     establishing quantifiable objective criteria under which a 
     licensee's private capital in its entirety may be leveraged 
     up to 300 percent. Such regulations shall be published in the 
     Code of Federal Regulations.''.
       (c) Investments in Low-Income Geographic Areas.--Section 
     303(b)(2)(C)(ii) of the Small Business Investment Act of 1958 
     (15 U.S.C. 683(b)(2)(C)(ii)) is amended by striking 
     ``$250,000,000'' in subclause (II) and inserting 
     ``$400,000,000''.

     SEC. 404. CONSISTENCY FOR COST CONTROL.

       Section 305(c) of the Small Business Investment Act of 1958 
     (15 U.S.C. 685(c)) is amended by adding at the end the 
     following:
       ``In addition to the foregoing, with respect to a loan 
     made, or debt with equity features acquired, under this 
     section, the minimum coupon rate of interest (cost of money 
     ceiling) imposed by the Administrator shall not be less than 
     19 percent per annum for a loan or a debt security, except 
     that nothing herein shall alter or affect provisions 
     permitting higher coupon rates of interest (cost of money 
     ceilings) and a company may charge up to an additional 7 
     percent more than the interest rate set forth in the loan or 
     debt security in the event of a default. For purposes of this 
     subsection a default means the occurrence of any of the 
     following:
       ``(1) Failure to pay an amount when due.
       ``(2) Failure to provide in a timely manner material 
     information required under the applicable financing 
     documents.
       ``(3) Failure to observe any material term, covenant, or 
     other agreement contained in the applicable financing 
     documents.
       ``(4) A representation, warranty, certification, or 
     statement of fact made by or on behalf of a borrower in any 
     applicable financing document or in any document delivered in 
     connection therewith, that was materially incorrect or 
     misleading when made.
       ``(5) Any material event of default specified in the 
     applicable financing documents.''.

     SEC. 405. INVESTMENT IN VETERAN-OWNED SMALL BUSINESSES.

       Section 303(b)(2)(C) of the Small Business Investment Act 
     of 1958 (15 U.S.C. 683(b)(2)(C)) is amended as follows:
       (1) In the heading, by inserting after ``areas'' the 
     following: ``and veterans''.
       (2) In clause (i), by inserting after ``351)'' the 
     following: ``or in a small business concern owned and 
     controlled by veterans (as such term is defined in section 
     3(q)(3) of the Small Business Act)''.
       (3) In clause (iii), by inserting after ``351)'' the 
     following: ``or in small business concerns owned and 
     controlled by veterans (as such term is defined in section 
     3(q)(3) of the Small Business Act)''.

     SEC. 406. TANGIBLE NET WORTH.

       Section 103 of the Small Business Investment Act of 1958 
     (15 U.S.C. 662), as amended by this Act, is further amended 
     by striking ``and'' at the end of paragraph (23), by striking 
     the period at the end of paragraph (24) and inserting ``; 
     and'', and by adding at the end the following:
       ``(25) for purposes of the terms `small-business concern' 
     in paragraph (5) and `smaller enterprise' in paragraph (12), 
     tangible net worth shall, to the extent used, mean the total 
     net worth of the small business, in accordance with General 
     Accepted Accounting Principles, minus all intangibles in 
     accordance with General Accepted Accounting Principles.''.

     SEC. 407. DEVELOPMENT OF AGENCY RECORD.

       Part A of title III of the Small Business Investment Act of 
     1958 (15 U.S.C. 681 et seq.), as amended by this Act, is 
     further amended by adding at the end the following:

     ``SEC. 321. AGENCY RECORD FOR LICENSING OF SMALL BUSINESS 
                   INVESTMENT COMPANIES.

       ``(a) Record.--The Associate Administrator for Investment 
     shall establish an agency record of evidence referring or 
     relating to each application for a license to become a small 
     business investment company.
       ``(b) Written Notification.--The Administrator shall 
     provide a written explanation of any denial of a license 
     application based upon evidence in the agency record. Absent 
     an order by a Federal or State court of general jurisdiction, 
     access to applications and the agency record shall be limited 
     to the applicant and to the Administrator and subordinate 
     personnel of the Administrator.''.

     SEC. 408. PROGRAM LEVELS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note), 
     as amended by this Act, is further amended by inserting after 
     subsection (h) the following:
       ``(i) Part A of Title III of the Small Business Investment 
     Act of 1958.--
       ``(1) Program levels 2010.--For fiscal year 2010, in 
     carrying out the program authorized by part A of title III of 
     the Small Business Investment Act of 1958, the Administrator 
     is authorized to make $5,000,000,000 in guarantees of 
     debentures.
       ``(2) Program levels 2011.--For fiscal year 2011, in 
     carrying out the program authorized by part A of title III of 
     the Small Business Investment Act of 1958, the Administrator 
     is authorized to make $5,5000,000,000 in guarantees of 
     debentures.''.

[[Page 26179]]



 TITLE V--INVESTMENT IN SMALL MANUFACTURERS AND RENEWABLE ENERGY SMALL 
                               BUSINESSES

        Subtitle A--Enhanced New Markets Venture Capital Program

     SEC. 501. EXPANSION OF NEW MARKETS VENTURE CAPITAL PROGRAM.

       (a) Administration Participation Required.--Section 353 of 
     the Small Business Investment Act of 1958 (15 U.S.C. 689b) is 
     amended by striking ``under which the Administrator may'' and 
     inserting ``under which the Administrator shall''.
       (b) Report to Congress.--Not later than 1 year after the 
     date of the enactment of this Act, the Administrator of the 
     Small Business Administration shall submit to Congress a 
     report describing any expansion of the New Markets Venture 
     Capital Program as a result of this section.

     SEC. 502. IMPROVED NATIONWIDE DISTRIBUTION.

       Section 354 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689c) is amended by adding at the end the 
     following:
       ``(f) Geographic Expansion.--From among companies 
     submitting applications under subsection (b), the 
     Administrator shall consider the selection criteria and 
     promotion of nationwide distribution under subsection (c) and 
     shall, to the extent practicable, approve at least one 
     company from each geographic region of the Small Business 
     Administration.''.

     SEC. 503. INCREASED INVESTMENT IN SMALL BUSINESS CONCERNS 
                   ENGAGED PRIMARILY IN MANUFACTURING.

       (a) Developmental Venture Capital and Participation 
     Agreements.--Section 351 of the Small Business Investment Act 
     of 1958 (15 U.S.C. 689) is amended--
       (1) in paragraph (1) by inserting after ``geographic 
     areas'' the following: ``or encouraging the growth or 
     continuation of small business concerns located in low-income 
     geographic areas and engaged primarily in manufacturing''; 
     and
       (2) in paragraph (6)(B) by inserting after ``geographic 
     areas'' the following: ``or in small business concerns 
     located in low-income geographic areas at least 80 percent of 
     which are engaged primarily in manufacturing''.
       (b) Purposes.--Section 352(2) of the Small Business 
     Investment Act of 1958 (15 U.S.C. 689a(2)) is amended--
       (1) in the matter preceding subparagraph (A) by inserting 
     after ``geographic areas'' the following: ``and small 
     business concerns located in low-income geographic areas and 
     engaged primarily in manufacturing'';
       (2) in subparagraph (B) by inserting after ``geographic 
     areas'' the following: ``or in small business concerns 
     located in low-income geographic areas and engaged primarily 
     in manufacturing''; and
       (3) in subparagraph (C) by inserting after ``smaller 
     enterprises'' the following: ``and small business concerns''.
       (c) Eligibility, Applications, and Requirements for Final 
     Approval.--Section 354 of the Small Business Investment Act 
     of 1958 (15 U.S.C. 689c), as amended by this Act, is further 
     amended--
       (1) in subsection (a)(3) by inserting after ``geographic 
     areas'' the following: ``or investing in small business 
     concerns located in low-income geographic areas and engaged 
     primarily in manufacturing'';
       (2) in subsection (b)--
       (A) in paragraph (1) by inserting after ``geographic 
     areas'' the following: ``or in small business concerns 
     located in low-income geographic areas and engaged primarily 
     in manufacturing''; and
       (B) in paragraph (4) by inserting after ``smaller 
     enterprises'' the following: ``or small business concerns''; 
     and
       (3) in subsection (d)--
       (A) in paragraph (1)--
       (i) by striking ``Each'' and inserting the following:
       ``(A) In general.--Except as provided in subparagraph (B), 
     each''; and
       (ii) by adding at the end the following:
       ``(B) Small business concerns engaged primarily in 
     manufacturing.--Each conditionally approved company engaged 
     primarily in development of and investment in small business 
     concerns located in low-income geographic areas and engaged 
     primarily in manufacturing shall raise not less than 
     $3,000,000 of private capital or binding capital commitments 
     from one or more investors (other than agencies or 
     departments of the Federal Government) who met criteria 
     established by the Administrator.''; and
       (B) in paragraph (2)(A) by inserting after ``smaller 
     enterprises'' the following: ``or small business concerns''.
       (d) Operational Assistance Grants.--Section 358 of the 
     Small Business Investment Act of 1958 (15 U.S.C. 689g) is 
     amended--
       (1) in subsection (a)(1) by inserting after ``smaller 
     enterprises'' the following: ``and small business concerns''; 
     and
       (2) in subsection (b)(1) by inserting after ``smaller 
     enterprises'' the following: ``and small business concerns''.

     SEC. 504. EXPANDED USES FOR OPERATIONAL ASSISTANCE IN 
                   MANUFACTURING.

       Section 351 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689), as amended by this Act, is further amended 
     in paragraph (5) by inserting after ``business development'' 
     the following: ``or assistance that assists a small business 
     concern located in a low-income geographic area and engaged 
     primarily in manufacturing with retooling, updating, or 
     replacing machinery or equipment''.

     SEC. 505. UPDATING DEFINITION OF LOW-INCOME GEOGRAPHIC AREA.

       Section 351 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689), as amended by this Act, is further amended--
       (1) by striking paragraphs (2) and (3);
       (2) by inserting after paragraph (1) the following:
       ``(2) Low-income geographic area.--The term `low-income 
     geographic area' has the meaning given the term `low-income 
     community' in section 45D(e) of the Internal Revenue Code of 
     1986.''; and
       (3) by redesignating paragraphs (4) through (8) as 
     paragraphs (3) through (7), respectively.

     SEC. 506. EXPANDING OPERATIONAL ASSISTANCE TO CONDITIONALLY 
                   APPROVED COMPANIES.

       Section 358(a) of the Small Business Investment Act of 1958 
     (15 U.S.C. 689g(a)) is amended by adding at the end the 
     following:
       ``(6) Grants to conditionally approved companies.--
       ``(A) In general.--Subject to the provisions of this 
     paragraph, upon the request of a company conditionally 
     approved under section 354(c), the Administrator shall make a 
     grant to the company under this subsection.
       ``(B) Repayment by companies not approved.--If a company 
     receives a grant under this paragraph and does not receive 
     final approval under section 354(e), the company shall repay 
     the amount of the grant to the Administrator.
       ``(C) Deduction from grant to approved company.--If a 
     company receives a grant under this paragraph and receives 
     final approval under section 354(e), the Administrator shall 
     deduct the amount of such grant from the amount of any 
     immediately succeeding grant the company receives for 
     operational assistance.
       ``(D) Amount of grant.--No company may receive a grant of 
     more than $50,000 under this paragraph.''.

     SEC. 507. LIMITATION ON TIME FOR FINAL APPROVAL.

       Section 354(d) of the Small Business Investment Act of 1958 
     (15 U.S.C. 689c(d)) is amended in the matter preceding 
     paragraph (1) by striking ``a period of time, not to exceed 2 
     years,'' and inserting ``2 years''.

     SEC. 508. STREAMLINED APPLICATION FOR NEW MARKETS VENTURE 
                   CAPITAL PROGRAM.

       Not later than 60 days after the date of the enactment of 
     this Act, the Administrator of the Small Business 
     Administration shall prescribe standard documents for a New 
     Markets Venture Capital company final approval application 
     under section 354(e) of the Small Business Investment Act of 
     1958 (15 U.S.C. 689c(e)). The Administrator shall ensure that 
     the standard documents are designed to substantially reduce 
     the cost burden of the application process for companies.

     SEC. 509. ELIMINATION OF MATCHING REQUIREMENT.

       Section 354(d)(2)(A)(i) of the Small Business Investment 
     Act of 1958 (15 U.S.C. 689c(d)(2)(A)(i)) is amended--
       (1) in subclause (I) by adding ``and'' at the end;
       (2) in subclause (II) by striking ``and'' at the end; and
       (3) by striking subclause (III).

     SEC. 510. SIMPLIFIED FORMULA FOR OPERATIONAL ASSISTANCE 
                   GRANTS.

       Section 358(a)(4)(A) of the Small Business Investment Act 
     of 1958 (15 U.S.C. 689g(a)(4)(A)) is amended--
       (1) by striking ``shall be equal to'' and all that follows 
     through the period at the end and inserting ``shall be equal 
     to the lesser of--''; and
       (2) by adding at the end the following:
       ``(i) 10 percent of the resources (in cash or in-kind) 
     raised by the company under section 354(d)(2); or
       ``(ii) $1,000,000.''.

     SEC. 511. AUTHORIZATION OF APPROPRIATIONS AND ENHANCED 
                   ALLOCATION FOR SMALL MANUFACTURING.

       Section 368(a) of the Small Business Investment Act of 1958 
     (15 U.S.C. 689q(a)) is amended--
       (1) in the matter preceding paragraph (1) by striking 
     ``fiscal years 2001 through 2006'' and inserting ``fiscal 
     years 2010 and 2011'';
       (2) in paragraph (1)--
       (A) by striking ``$150,000,000'' and inserting 
     ``$100,000,000''; and
       (B) by inserting before the period at the end the 
     following: ``, of which not less than 50 percent shall be 
     used to guarantee debentures of companies engaged primarily 
     in development of and investment in small business concerns 
     located in low-income geographic areas and engaged primarily 
     in manufacturing''; and
       (3) in paragraph (2)--
       (A) by striking ``$30,000,000'' and inserting 
     ``$20,000,000''; and
       (B) by inserting before the period at the end the 
     following: ``, of which not less than 50 percent shall be 
     used to make grants to companies engaged primarily in 
     development of and investment in small business concerns 
     located in low-income geographic areas and engaged primarily 
     in manufacturing''.

[[Page 26180]]



   Subtitle B--Expanded Investment in Small Business Renewable Energy

     SEC. 521. EXPANDED INVESTMENT IN RENEWABLE ENERGY.

       Part C of title III of the Small Business Investment Act of 
     1958 (15 U.S.C. 690 et seq.) is amended--
       (1) in the heading by striking ``RENEWABLE FUEL CAPITAL 
     INVESTMENT'' and inserting ``RENEWABLE ENERGY CAPITAL 
     INVESTMENT'';
       (2) in the heading of paragraph (4) of section 381 by 
     striking ``Renewable fuel capital investment'' and inserting 
     ``Renewable energy capital investment'';
       (3) in the heading of section 384 by striking ``RENEWABLE 
     FUEL CAPITAL INVESTMENT'' and inserting ``RENEWABLE ENERGY 
     CAPITAL INVESTMENT''; and
       (4) by striking ``Renewable Fuel Capital Investment'' each 
     place it appears and inserting ``Renewable Energy Capital 
     Investment''.

     SEC. 522. RENEWABLE ENERGY CAPITAL INVESTMENT PROGRAM MADE 
                   PERMANENT.

       Part C of title III of the Small Business Investment Act of 
     1958 (15 U.S.C. 690 et seq.), as amended by this Act, is 
     further amended--
       (1) in the heading by striking ``PILOT''; and
       (2) by striking section 398.

     SEC. 523. EXPANDED ELIGIBILITY FOR SMALL BUSINESSES.

       Part C of title III of the Small Business Investment Act of 
     1958 (15 U.S.C. 690 et seq.), as amended by this Act, is 
     further amended by striking ``smaller enterprises'' each 
     place it appears and inserting ``small business concerns''.

     SEC. 524. EXPANDED USES FOR OPERATIONAL ASSISTANCE IN 
                   MANUFACTURING AND SMALL BUSINESSES.

       Section 381(1) of the Small Business Investment Act of 1958 
     (15 U.S.C. 690(1)) is amended by inserting after ``business 
     development'' the following: ``, assistance that assists a 
     small business concern to reduce energy consumption, or 
     assistance that assists a small business concern engaged 
     primarily in manufacturing with retooling, updating, or 
     replacing machinery or equipment''.

     SEC. 525. EXPANSION OF RENEWABLE ENERGY CAPITAL INVESTMENT 
                   PROGRAM.

       (a) Administration Participation Required.--Section 383 of 
     the Small Business Investment Act of 1958 (15 U.S.C. 690b) is 
     amended by striking ``under which the Administrator may'' and 
     inserting ``under which the Administrator shall''.
       (b) Report to Congress.--Not later than 1 year after the 
     date of the enactment of this Act, the Administrator of the 
     Small Business Administration shall submit to Congress a 
     report describing any expansion of the Renewable Energy 
     Capital Investment Program as a result of this section.

     SEC. 526. SIMPLIFIED FEE STRUCTURE TO EXPEDITE 
                   IMPLEMENTATION.

       Section 387(a) of the Small Business Investment Act of 1958 
     (15 U.S.C. 690f(a)) is amended by striking ``or grant''.

     SEC. 527. INCREASED OPERATIONAL ASSISTANCE GRANTS.

       Section 397(a) of the Small Business Investment Act of 1958 
     (15 U.S.C. 690p(a)) is amended by inserting after ``and 
     2009'' the following: ``and $30,000,000 in such grants for 
     each of fiscal years 2010 and 2011''.

     SEC. 528. AUTHORIZATIONS OF APPROPRIATIONS.

       Section 397 of the Small Business Investment Act of 1958 
     (15 U.S.C. 690p) is amended--
       (1) in the heading by inserting after ``APPROPRIATIONS'' 
     the following: ``AND PROGRAM LEVELS''; and
       (2) by adding at the end the following:
       ``(c) Program Levels.--For the programs authorized by this 
     part, the Administration is authorized to make $1,000,000,000 
     in guarantees of debentures for each of fiscal years 2010 and 
     2011.''.

   TITLE VI--SMALL BUSINESS HEALTH INFORMATION TECHNOLOGY FINANCING 
                                PROGRAM

     SEC. 601. SMALL BUSINESS HEALTH INFORMATION TECHNOLOGY 
                   FINANCING PROGRAM.

       The Small Business Act (15 U.S.C. 631 et seq.), as amended 
     by this Act, is further amended by redesignating section 45 
     as section 46 and by inserting the following new section 
     after section 44:

     ``SEC. 45. LOAN GUARANTEES FOR HEALTH INFORMATION TECHNOLOGY.

       ``(a) Definitions.--As used in this section:
       ``(1) The term `health information technology' means 
     computer hardware, software, and related technology that 
     supports the meaningful EHR use requirements set forth in 
     section 1848(o)(2)(A) of the Social Security Act (42 U.S.C. 
     1395w-4(o)(2)(A)) and is purchased by an eligible 
     professional to aid in the provision of health care in a 
     health care setting, including, but not limited to, 
     electronic medical records, and that provides for--
       ``(A) enhancement of continuity of care for patients 
     through electronic storage, transmission, and exchange of 
     relevant personal health data and information, such that this 
     information is accessible at the times and places where 
     clinical decisions will be or are likely to be made;
       ``(B) enhancement of communication between patients and 
     health care providers;
       ``(C) improvement of quality measurement by eligible 
     professionals enabling them to collect, store, measure, and 
     report on the processes and outcomes of individual and 
     population performance and quality of care;
       ``(D) improvement of evidence-based decision support; or
       ``(E) enhancement of consumer and patient empowerment.

     Such term shall not include information technology whose sole 
     use is financial management, maintenance of inventory of 
     basic supplies, or appointment scheduling.
       ``(2) The term `eligible professional' means any of the 
     following:
       ``(A) A physician (as defined in section 1861(r) of the 
     Social Security Act (42 U.S.C. 1395x(r)).
       ``(B) A practitioner described in section 1842(b)(18)(C) of 
     that Act.
       ``(C) A physical or occupational therapist or a qualified 
     speech-language pathologist.
       ``(D) A qualified audiologist (as defined in section 
     1861(ll)(3)(B)) of that Act.
       ``(E) A qualified medical transcriptionist who is either 
     certified by or registered with the Association for 
     Healthcare Documentation Integrity, or a successor 
     association thereto.
       ``(F) A State-licensed pharmacist.
       ``(G) A State-licensed supplier of durable medical 
     equipment, prosthetics, orthotics, or supplies.
       ``(3) The term `qualified eligible professional' means an 
     eligible professional whose office can be classified as a 
     small business concern by the Administrator for purposes of 
     this Act under size standards established under section 3 of 
     this Act.
       ``(4) The term `qualified medical transcriptionist' means a 
     specialist in medical language and the healthcare 
     documentation process who interprets and transcribes 
     dictation by physicians and other healthcare professionals to 
     ensure accurate, complete, and consistent documentation of 
     healthcare encounters.
       ``(b) Loan Guarantees for Qualified Eligible 
     Professionals.--
       ``(1) In general.--Subject to paragraph (2), the 
     Administrator may guarantee up to 90 percent of the amount of 
     a loan made to a qualified eligible professional to be used 
     for the acquisition of health information technology for use 
     in such eligible professional's medical practice and for the 
     costs associated with the installation of such technology. 
     Except as otherwise provided in this section, the terms and 
     conditions that apply to loans made under section 7(a) of 
     this Act shall apply to loan guarantees made under this 
     section.
       ``(2) Limitations on guarantee amounts.--The maximum amount 
     of loan principal guaranteed under this subsection may not 
     exceed--
       ``(A) $350,000 with respect to any single qualified 
     eligible professional; and
       ``(B) $2,000,000 with respect to a single group of 
     affiliated qualified eligible professionals.
       ``(c) Fees.--(1) The Administrator may impose a guarantee 
     fee on the borrower for the purpose of reducing the cost (as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990) of the guarantee to zero in an amount not to exceed 2 
     percent of the total guaranteed portion of any loan 
     guaranteed under this section. The Administrator may also 
     impose annual servicing fees on lenders not to exceed 0.5 
     percent of the outstanding balance of the guarantees on 
     lenders' books.
       ``(2) No service fees, processing fees, origination fees, 
     application fees, points, brokerage fees, bonus points, or 
     other fees may be charged to a loan applicant or recipient by 
     a lender in the case of a loan guaranteed under this section.
       ``(d) Deferral Period.--Loans guaranteed under this section 
     shall carry a deferral period of not less than 1 year and not 
     more than 3 years. The Administrator shall have the authority 
     to subsidize interest during the deferral period.
       ``(e) Effective Date.--No loan may be guaranteed under this 
     section until the meaningful EHR use requirements have been 
     determined by the Secretary of Health and Human Services.
       ``(f) Sunset.--No loan may be guaranteed under this section 
     after the date that is 5 years after meaningful EHR use 
     requirements have been determined by the Secretary of Health 
     and Human Services.
       ``(g) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary for 
     the cost (as defined in section 502(5) of the Federal Credit 
     Reform Act of 1990) of guaranteeing $10,000,000,000 in loans 
     under this section. The Administrator shall determine such 
     program cost separately and distinctly from other programs 
     operated by the Administrator.''.

        TITLE VII--SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM

     SEC. 701. SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM.

       Title III of the Small Business Investment Act of 1958 (15 
     U.S.C. 681 et seq.) is amended by adding at the end the 
     following:

        ``PART D--SMALL BUSINESS EARLY-STAGE INVESTMENT PROGRAM

     ``SEC. 399A. ESTABLISHMENT OF PROGRAM.

       ``The Administrator shall establish and carry out an early-
     stage investment program (hereinafter referred to in this 
     part as the

[[Page 26181]]

     `program') to provide equity investment financing to support 
     early-stage small businesses in targeted industries in 
     accordance with this part.

     ``SEC. 399B. ADMINISTRATION OF PROGRAM.

       ``The program shall be administered by the Administrator 
     acting through the Associate Administrator described under 
     section 201.

     ``SEC. 399C. APPLICATIONS.

       ``(a) In General.--Any incorporated body, limited liability 
     company, or limited partnership organized and chartered or 
     otherwise existing under Federal or State law for the purpose 
     of performing the functions and conducting the activities 
     contemplated under the program and any small business 
     investment company may submit to the Administrator an 
     application to participate in the program.
       ``(b) Requirements for Application.--An application to 
     participate in the program shall include the following:
       ``(1) A business plan describing how the applicant intends 
     to make successful venture capital investments in early-stage 
     small businesses in targeted industries.
       ``(2) Information regarding the relevant venture capital 
     investment qualifications and backgrounds of the individuals 
     responsible for the management of the applicant.
       ``(3) A description of the extent to which the applicant 
     meets the selection criteria under section 399D.
       ``(c) Applications From Small Business Investment 
     Companies.--The Administrator shall establish an abbreviated 
     application process for small business investment companies 
     that have received a license under section 301 and that are 
     applying to participate in the program. Such abbreviated 
     process shall incorporate a presumption that such small 
     business investment companies satisfactorily meet the 
     selection criteria under paragraphs (3) and (5) of section 
     399D(b).

     ``SEC. 399D. SELECTION OF PARTICIPATING INVESTMENT COMPANIES.

       ``(a) In General.--Not later than 90 days after the date on 
     which the Administrator receives an application from an 
     applicant under section 399C, the Administrator shall make a 
     final determination to approve or disapprove such applicant 
     to participate in the program and shall transmit such 
     determination to the applicant in writing.
       ``(b) Selection Criteria.--In making a determination under 
     subsection (a), the Administrator shall consider each of the 
     following:
       ``(1) The likelihood that the applicant will meet the goals 
     specified in the business plan of the applicant.
       ``(2) The likelihood that the investments of the applicant 
     will create or preserve jobs, both directly and indirectly.
       ``(3) The character and fitness of the management of the 
     applicant.
       ``(4) The experience and background of the management of 
     the applicant.
       ``(5) The extent to which the applicant will concentrate 
     investment activities on early-stage small businesses in 
     targeted industries.
       ``(6) The likelihood that the applicant will achieve 
     profitability.
       ``(7) The experience of the management of the applicant 
     with respect to establishing a profitable investment track 
     record.

     ``SEC. 399E. GRANTS.

       ``(a) In General.--The Administrator may make one or more 
     grants to a participating investment company.
       ``(b) Grant Amounts.--
       ``(1) Non-federal capital.--A grant made to a participating 
     investment company under the program may not be in an amount 
     that exceeds the amount of the capital of such company that 
     is not from a Federal source and that is available for 
     investment on or before the date on which a grant is drawn 
     upon. Such capital may include legally binding commitments 
     with respect to capital for investment.
       ``(2) Limitation on aggregate amount.--The aggregate amount 
     of all grants made to a participating investment company 
     under the program may not exceed $100,000,000.
       ``(c) Grant Process.--In making a grant under the program, 
     the Administrator shall commit a grant amount to a 
     participating investment company and the amount of each such 
     commitment shall remain available to be drawn upon by such 
     company--
       ``(1) for new-named investments during the 5-year period 
     beginning on the date on which each such commitment is first 
     drawn upon; and
       ``(2) for follow-on investments and management fees during 
     the 10-year period beginning on the date on which each such 
     commitment is first drawn upon, with not more than 2 
     additional 1-year periods available at the discretion of the 
     Administrator.

     ``SEC. 399F. INVESTMENTS IN EARLY-STAGE SMALL BUSINESSES IN 
                   TARGETED INDUSTRIES.

       ``(a) In General.--As a condition of receiving a grant 
     under the program, a participating investment company shall 
     make all of the investments of such company in small business 
     concerns, of which at least 50 percent shall be early-stage 
     small businesses in targeted industries.
       ``(b) Evaluation of Compliance.--With respect to a grant 
     amount committed to a participating investment company under 
     section 399E, the Administrator shall evaluate the compliance 
     of such company with the requirements under this section if 
     such company has drawn upon 50 percent of such commitment.

     ``SEC. 399G. PRO RATA INVESTMENT SHARES.

       ``Each investment made by a participating investment 
     company under the program shall be treated as comprised of 
     capital from grants under the program according to the ratio 
     that capital from grants under the program bears to all 
     capital available to such company for investment.

     ``SEC. 399H. GRANT INTEREST.

       ``(a) Grant Interest.--
       ``(1) In general.--As a condition of receiving a grant 
     under the program, a participating investment company shall 
     convey a grant interest to the Administrator in accordance 
     with paragraph (2).
       ``(2) Effect of conveyance.--The grant interest conveyed 
     under paragraph (1) shall have all the rights and attributes 
     of other investors attributable to their interests in the 
     participating investment company, but shall not denote 
     control or voting rights to the Administrator. The grant 
     interest shall entitle the Administrator to a pro rata 
     portion of any distributions made by the participating 
     investment company equal to the percentage of capital in the 
     participating investment company that the grant comprises. 
     The Administrator shall receive distributions from the 
     participating investment company at the same times and in the 
     same amounts as any other investor in the company with a 
     similar interest. The investment company shall make 
     allocations of income, gain, loss, deduction, and credit to 
     the Administrator with respect to the grant interest as if 
     the Administrator were an investor.
       ``(b) Manager Profits.--As a condition of receiving a grant 
     under the program, the manager profits interest payable to 
     the managers of a participating investment company under the 
     program shall not exceed 20 percent of profits, exclusive of 
     any profits that may accrue as a result of the capital 
     contributions of any such managers with respect to such 
     company. Any excess of this amount, less taxes payable 
     thereon, shall be returned by the managers and paid to the 
     investors and the Administrator in proportion to the capital 
     contributions and grants paid in. No manager profits interest 
     (other than a tax distribution) shall be paid prior to the 
     repayment to the investors and the Administrator of all 
     contributed capital and grants made.
       ``(c) Distribution Requirements.--As a condition of 
     receiving a grant under the program, a participating 
     investment company shall make all distributions to all 
     investors in cash and shall make distributions within a 
     reasonable time after exiting investments, including 
     following a public offering or market sale of underlying 
     investments.

     ``SEC. 399I. FUND.

       ``There is hereby created within the Treasury a separate 
     fund for grants which shall be available to the Administrator 
     subject to annual appropriations as a revolving fund to be 
     used for the purposes of the program. All amounts received by 
     the Administrator, including any moneys, property, or assets 
     derived by the Administrator from operations in connection 
     with the program, shall be deposited in the fund. All 
     expenses and payments, excluding administrative expenses, 
     pursuant to the operations of the Administrator under the 
     program shall be paid from the fund.

     ``SEC. 399J. APPLICATION OF OTHER SECTIONS.

       ``To the extent not inconsistent with requirements under 
     this part, the Administrator may apply sections 309, 311, 
     312, 313, and 314 to activities under this part and an 
     officer, director, employee, agent, or other participant in a 
     participating investment company shall be subject to the 
     requirements under such sections.

     ``SEC. 399K. DEFINITIONS.

       ``In this part, the following definitions apply:
       ``(1) Early-stage small business in a targeted industry.--
     The term `early-stage small business in a targeted industry' 
     means a small business concern that--
       ``(A) is domiciled in a State;
       ``(B) has not generated gross annual sales revenues 
     exceeding $15,000,000 in any of the previous 3 years; and
       ``(C) is engaged primarily in researching, developing, 
     manufacturing, producing, or bringing to market goods, 
     products, or services with respect to any of the following 
     business sectors:
       ``(i) Agricultural technology.
       ``(ii) Energy technology.
       ``(iii) Environmental technology.
       ``(iv) Life science.
       ``(v) Information technology.
       ``(vi) Digital media.
       ``(vii) Clean technology.
       ``(viii) Defense technology.
       ``(2) Participating investment company.--The term 
     `participating investment company' means an applicant 
     approved under section 399D to participate in the program.
       ``(3) Small business concern.--The term `small business 
     concern' has the same meaning given such term under section 
     3(a) of the Small Business Act (15 U.S.C. 632(a)).

     ``SEC. 399L. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated to carry out the 
     program $200,000,000 for the first full fiscal year beginning 
     after the date of the enactment of this part.''.

[[Page 26182]]



                TITLE VIII--SBA DISASTER PROGRAM REFORM

     SEC. 801. REVISED COLLATERAL REQUIREMENTS.

       Section 7 of the Small Business Act (15 U.S.C. 636) is 
     amended--
       (1) by striking ``(e) [RESERVED].'' and ``(f) 
     [RESERVED].''; and
       (2) in subsection (f), as added by section 12068(a)(2) of 
     the Small Business Disaster Response and Loan Improvements 
     Act of 2008 (subtitle B of title XII of the Food, 
     Conservation, and Energy Act of 2008; Public Law 110-246), by 
     adding at the end the following:
       ``(2) Revised collateral requirements.--In making a loan 
     with respect to a business under subsection (b), if the total 
     approved amount of such loan is less than or equal to 
     $250,000, the Administrator may not require the borrower to 
     use the borrower's home as collateral.''.

     SEC. 802. INCREASED LIMITS.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b)) 
     is amended--
       (1) in paragraph (3)(E) by striking ``$1,500,000'' each 
     place it appears and inserting ``$3,000,000''; and
       (2) in paragraph (8)(A) by striking ``$2,000,000'' and 
     inserting ``$3,000,000''.

     SEC. 803. REVISED REPAYMENT TERMS.

       Section 7(f) of the Small Business Act (15 U.S.C. 636(f)) 
     is amended by adding at the end the following:
       ``(3) Revised repayment terms.--In making loans under 
     subsection (b), the Administrator--
       ``(A) may not require repayment to begin until the date 
     that is 12 months after the date on which the final 
     disbursement of approved amounts is made; and
       ``(B) shall calculate the amount of repayment based solely 
     on the amounts disbursed.''.

     SEC. 804. REVISED DISBURSEMENT PROCESS.

       Section 7(f) of the Small Business Act (15 U.S.C. 636(f)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(4) Revised disbursement process.--In making a loan under 
     subsection (b), the Administrator shall disburse loan amounts 
     in accordance with the following:
       ``(A) If the total amount approved with respect to such 
     loan is less than or equal to $150,000--
       ``(i) the first disbursement with respect to such loan 
     shall consist of 40 percent of the total loan amount, or a 
     lesser percentage of the total loan amount if the 
     Administrator and the borrower agree on such a lesser 
     percentage;
       ``(ii) the second disbursement shall consist of 50 percent 
     of the loan amounts that remain after the first disbursement, 
     and shall be made when the borrower has produced satisfactory 
     receipts to demonstrate the proper use of 50 percent of the 
     first disbursement; and
       ``(iii) the third disbursement shall consist of the loan 
     amounts that remain after the preceding disbursements, and 
     shall be made when the borrower has produced satisfactory 
     receipts to demonstrate the proper use of the first 
     disbursement and 50 percent of the second disbursement.
       ``(B) If the total amount approved with respect to such 
     loan is more than $150,000 but less than or equal to 
     $500,000--
       ``(i) the first disbursement with respect to such loan 
     shall consist of 20 percent of the total loan amount, or a 
     lesser percentage of the total loan amount if the 
     Administrator and the borrower agree on such a lesser 
     percentage;
       ``(ii) the second disbursement shall consist of 30 percent 
     of the loan amounts that remain after the first disbursement, 
     and shall be made when the borrower has produced satisfactory 
     receipts to demonstrate the proper use of 50 percent of the 
     first disbursement;
       ``(iii) the third disbursement shall consist of 25 percent 
     of the loan amounts that remain after the first and second 
     disbursements, and shall be made when the borrower has 
     produced satisfactory receipts to demonstrate the proper use 
     of the first disbursement and 50 percent of the second 
     disbursement; and
       ``(iv) the fourth disbursement shall consist of the loan 
     amounts that remain after the preceding disbursements, and 
     shall be made when the borrower has produced satisfactory 
     receipts to demonstrate the proper use of the first and 
     second disbursements and 50 percent of the third 
     disbursement.
       ``(C) If the total amount approved with respect to such 
     loan is more than $500,000--
       ``(i) the first disbursement with respect to such loan 
     shall consist of at least $100,000, or a lesser amount if the 
     Administrator and the borrower agree on such a lesser amount; 
     and
       ``(ii) the number of disbursements after the first, and the 
     amount of each such disbursement, shall be in the discretion 
     of the Administrator, but the amount of each such 
     disbursement shall be at least $100,000.''.

     SEC. 805. GRANT PROGRAM.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b)), 
     as amended by this Act, is further amended by inserting after 
     paragraph (9) the following:
       ``(10) Grants to disaster-affected small businesses.--
       ``(A) In general.--If the Administrator declares 
     eligibility for additional disaster assistance under 
     paragraph (9), the Administrator may make a grant, in an 
     amount not exceeding $100,000, to a small business concern 
     that--
       ``(i) is located in an area affected by the applicable 
     major disaster;
       ``(ii) submits to the Administrator a certification by the 
     owner of the concern that such owner intends to reestablish 
     the concern in the same county in which the concern was 
     originally located;
       ``(iii) has applied for, and was rejected for, a 
     conventional disaster assistance loan under this subsection; 
     and
       ``(iv) was in existence for at least 2 years before the 
     date on which the applicable disaster declaration was made.
       ``(B) Priority.--In making grants under this paragraph, the 
     Administrator shall give priority to a small business concern 
     that the Administrator determines is economically viable but 
     unable to meet short-term financial obligations.
       ``(C) Program level and authorization of appropriations.--
       ``(i) Program level.--The Administrator is authorized to 
     make $100,000,000 in grants under this paragraph for each of 
     fiscal years 2010 and 2011.
       ``(ii) Authorization of appropriations.--There are 
     authorized to be appropriated to the Administrator such sums 
     as may be necessary to carry out this paragraph.''.

     SEC. 806. REGIONAL DISASTER WORKING GROUPS.

       Section 40 of the Small Business Act (15 U.S.C. 657l) is 
     amended--
       (1) in subsection (a), in the matter preceding paragraph 
     (1), by striking ``or'' and inserting ``and'';
       (2) by redesignating subsection (d) as subsection (e); and
       (3) by inserting after subsection (c) the following:
       ``(d) Regional Disaster Working Groups.--In carrying out 
     subsection (a), the Administrator, acting through the 
     regional administrators of the regional offices of the 
     Administration, shall develop a disaster preparedness and 
     response plan for each region of the Administration. Each 
     such plan shall be developed in cooperation with Federal, 
     State, and local emergency response authorities and 
     representatives of businesses located in the region to which 
     such plan applies. Each such plan shall identify and include 
     a plan relating to the 3 disasters, natural or manmade, most 
     likely to occur in the region to which such plan applies.''.

     SEC. 807. OUTREACH GRANTS FOR LOAN APPLICANT ASSISTANCE.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b)), 
     as amended by this Act, is further amended by inserting after 
     paragraph (10) the following:
       ``(11) Outreach grants for loan applicant assistance.--
       ``(A) In general.--From amounts made available for 
     administrative expenses relating to activities under this 
     subsection, the Administrator is authorized to make grants to 
     the following:
       ``(i) A women's business center in an area affected by a 
     disaster.
       ``(ii) A small business development center in an area 
     affected by a disaster.
       ``(iii) A Veteran Business Outreach Center in an area 
     affected by a disaster.
       ``(iv) A chamber of commerce in an area affected by a 
     disaster.
       ``(B) Use of grant.--An entity specified under subparagraph 
     (A) shall use a grant received under this paragraph to 
     provide application preparation assistance to applicants for 
     a loan under this subsection.
       ``(C) Program level.--The Administrator is authorized to 
     make $50,000,000 in grants under this paragraph for each of 
     fiscal years 2010 and 2011.''.

     SEC. 808. AUTHORIZATION OF APPROPRIATIONS.

       Section 20 of the Small Business Act (15 U.S.C. 631 note), 
     as amended by this Act, is further amended--
       (1) by redesignating subsection (j) as subsection (k); and
       (2) by inserting after subsection (i) the following:
       ``(j) Fiscal Years 2010 and 2011 With Respect to Section 
     7(b).--There is authorized to be appropriated such sums as 
     may be necessary for administrative expenses and loans under 
     section 7(b).''.

                         TITLE IX--REGULATIONS

     SEC. 901. REGULATIONS.

       Except as otherwise provided in this Act or in amendments 
     made by this Act, after an opportunity for notice and 
     comment, but not later than 180 days after the date of the 
     enactment of this Act, the Administrator shall issue 
     regulations to carry out this Act and the amendments made by 
     this Act.

  The CHAIR. No further amendment to the bill, as amended, is in order 
except those printed in part B of the report. Each amendment may be 
offered only in the order printed in the report, by a Member designated 
in the report, shall be considered read, shall be debatable for the 
time specified in the report, equally divided and controlled by the 
proponent and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question.

[[Page 26183]]




                Amendment No. 1 Offered by Ms. Velazquez

  The CHAIR. It is now in order to consider amendment No. 1 printed in 
part B of House Report 111-317.
  Ms. VELAZQUEZ. Mr. Chairman, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 1 offered by Ms. Velazquez:
       Page 11, line 10, insert after ``that is'' the following: 
     ``established or''.
       Page 11, line 13, insert after ``satisfies'' the following: 
     ``at least one of''.
       Page 11, strike lines 17 through 22 and insert the 
     following:
       (2) The entity is primarily engaged in the business of 
     banking, investing, or entrepreneurial development and does 
     not engage in activities which are not incidental to the 
     business of banking, investing, or entrepreneurial 
     development.
       Page 18, beginning line 17, strike ``meets basic'' and all 
     that follows through ``subsection.'' and insert ``meets the 
     eligibility and credit standards that a lender would be 
     required to apply to approve a loan under this subsection.''.
       Page 28, line 10, strike ``by striking'' and insert ``by 
     repealing''.
       Page 28, line 22, strike ``In carrying out'' and insert the 
     following: ``The Administrator shall give priority under such 
     program to small business concerns in a city with an 
     unemployment rate that is at least 125 percent of the 
     unemployment rate of the State that includes such city. In 
     carrying out''.
       Page 29, after line 19, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 119. STUDY AND REPORT ON BUSINESS STABILIZATION LOANS.

       (a) Study.--The Administrator of the Small Business 
     Administration shall conduct a study on the business 
     stabilization program established under section 506 of title 
     V of division A of the American Recovery and Reinvestment Act 
     of 2009 (Public Law 111-5), including--
       (1) how the program has been implemented;
       (2) the amount of time involved in processing applications;
       (3) the volume of applications received and the effect on 
     application processing;
       (4) impediments to participation in the program by small 
     business concerns and lenders;
       (5) courses of action that might expedite action by the 
     Administrator on applications;
       (6) courses of action that might expand participation by 
     such concerns and lenders; and
       (7) a cost benefit analysis with regard to changes to the 
     program, including--
       (A) increases in loan limits;
       (B) expanding eligibility requirements;
       (C) changes to interest rates to lenders; and
       (D) any other change the Administrator determines 
     appropriate.
       (b) Report.--Not later than 90 days after the date of 
     enactment of this Act, the Administrator of the Small 
     Business Administration shall submit to Congress a report 
     that includes--
       (1) the results of the study under subsection (a); and
       (2) recommendations on how to change the program--
       (A) to expand participation by small business concerns and 
     lenders; and
       (B) to decrease the amount of time involved in processing 
     applications.
       (c) Outreach.--In conducting the study under subsection (a) 
     and preparing the report under subsection (b), the 
     Administrator of the Small Business Administration shall meet 
     with and solicit the views of relevant stakeholders, 
     including lenders.
       Page 30, line 15, strike ``20 of'' and insert ``120 of''.
       Page 32, after line 7, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 124. LOANS USED TO PURCHASE UNOCCUPIED MANUFACTURING 
                   CENTERS OR EQUIPMENT.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended by adding at the 
     end the following:
       ``(42) Loans used to purchase unoccupied manufacturing 
     centers or equipment.--The Administration may provide loans 
     under this subsection for the purchase of what the 
     Administrator determines to be unoccupied manufacturing 
     centers or equipment.''.
       Page 48, strike lines 14 through 18 and insert the 
     following:

     SEC. 212. CERTIFIED DEVELOPMENT COMPANY; OPERATIONAL 
                   REQUIREMENTS.

       Section 502 of the Small Business Investment Act of 1958 
     (15 U.S.C. 696) is amended to read as follows:
       Page 94, strike line 10 and all that follows through line 5 
     on page 95 and insert the following:
       ``(A) Funding from institutions.--If a small business 
     concern provides--
       ``(i) the minimum contribution required by subparagraph 
     (B), not less than 50 percent of the total cost of any 
     project financed shall come from State or local governments, 
     banks or other financial institutions, or foundations or 
     other not-for-profit institutions; and
       ``(ii) more than the minimum contribution required under 
     subparagraph (B), any excess contribution may be used to 
     reduce the amount required from institutions described in 
     clause (i), except that the amount provided by such 
     institution may not be reduced to an amount that is less than 
     the amount of the loan made by the Administrator.
       Page 122, strike line 15 and all that follows through line 
     8 on page 123 and insert the following:
       ``(c) Reports on Combination Financing.--Not later than 90 
     days after the date of enactment of the Small Business 
     Financing and Investment Act of 2009, and annually 
     thereafter, 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 that--
       ``(1) includes the number of small business concerns that 
     have financing under both section 7(a) of the Small Business 
     Act (15 U.S.C. 636(a)) and title V of the Small Business 
     Investment Act of 1958 (15 U.S.C. 695 et seq.) during the 
     year before the year of that report; and
       ``(2) describes the total amount and general performance of 
     the financing described in paragraph (1).
       Page 135, line 19, strike ``new subsection''.
       Page 138, line 17, strike ``debentured''.
       Page 159, after line 8, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 511. FINANCING WITH RESPECT TO VETERANS.

       Section 354 of the Small Business Investment Act of 1958 
     (15 U.S.C. 689c), as amended by this Act, is further amended 
     by adding at the end the following:
       ``(g) Financing With Respect to Veterans.--A New Markets 
     Venture Capital company shall, to the extent practicable, 
     provide financing to small business concerns owned and 
     controlled by veterans, as defined in section 3(q) of the 
     Small Business Act (15 U.S.C. 632(q)), located in low-income 
     geographic areas.''.
       Page 165, line 24, strike ``1395x(r))'' and insert 
     ``1395x(r)))''.
       Page 166, after line 14, insert the following:
       ``(H) A State-licensed, a State-certified, or a nationally 
     accredited home health care provider.
       Page 185, line 11, insert after ``carrying out'' the 
     following: ``the responsibilities pertaining to loan making 
     activities under''.
       Add at the end of the bill the following:

            TITLE X--TEMPORARY EMPLOYEE SERVICES FRANCHISES

     SEC. 1001. TEMPORARY EMPLOYEE SERVICES FRANCHISES.

       In determining whether a franchisee is affiliated with a 
     franchiser in the temporary employee services industry for 
     the purposes of Small Business Administration lending 
     programs, the Administrator of the Small Business 
     Administration shall--
       (1) continue to apply its historically-considered 
     affiliation factors in determining whether a business is 
     affiliated with another business or the franchiser in the 
     temporary staffing industry;
       (2) promulgate such other rules and regulations as 
     necessary to determine affiliation within the temporary 
     employee services industry as the Administrator determines 
     consistent with the Small Business Act; and
       (3) consider the processing of payroll and billing by a 
     franchiser as customary and common practice in the temporary 
     employee services industry that does not provide probative 
     weight on affiliation, to the extent that the temporary 
     staffing personnel are interviewed, hired, trained, assigned, 
     and subject to discharge by the franchisee.

               TITLE XI--STUDY ON PRIVATE SECTOR LENDING

     SEC. 1101. STUDY ON PRIVATE SECTOR LENDING.

       (a) In General.--Not later than 90 days after the date of 
     the enactment of this Act, the Administrator of the Small 
     Business Administration shall submit to the Committee on 
     Small Business of the House of Representatives and the 
     Committee on Small Business and Entrepreneurship of the 
     Senate a report that describes lending to small business 
     concerns by the private sector, including the following:
       (1) The total amount of lending to small business concerns 
     by private sector financial institutions during each of 
     fiscal years 2006 through 2009.
       (2) The total amount of lending to small business concerns 
     by the 10 largest private sector financial institutions (as 
     determined by the Administrator in terms of amounts lent 
     during fiscal year 2006) during each of fiscal years 2006 
     through 2009.
       (b) Coordination.--The Administrator of the Small Business 
     Administration shall, if necessary, coordinate with the heads 
     of other Federal departments and agencies to complete the 
     report under subsection (a).
       (c) Small Business Concerns Defined.--In this section, the 
     term ``small business concern'' has the meaning given such 
     term under section 3(a) of the Small Business Act (15 U.S.C. 
     632(a)).

[[Page 26184]]



             TITLE XII--STUDY ON INCREASES IN CERTAIN CAPS

     SEC. 1201. STUDY ON INCREASES IN CERTAIN CAPS.

       Not later than 90 days after the date of enactment of this 
     Act, the Administrator of the Small Business Administration 
     shall submit to Congress a report that describes the 
     anticipated effects of the following potential changes to 
     programs, including whether such changes adequately meet the 
     financing needs of small businesses:
       (1) Increasing--
       (A) the maximum amount of a loan that may be guaranteed 
     under section 7(a) of the Small Business Act (15 U.S.C. 
     636(a)) to $3,000,000; and
       (B) participation by the Administrator with regard to such 
     a loan.
       (2) Increasing--
       (A) the maximum amount of a debenture that may be 
     guaranteed under title V of the Small Business Investment Act 
     of 1958 (15 U.S.C. 695 et seq.); and
       (B) the maximum amount of a loan that may be made with the 
     proceeds of such debenture.
       (3) Increasing the maximum amount of a microloan that may 
     be made under section 7(m) of the Small Business Act (15 
     U.S.C. 636(m)).

  The CHAIR. Pursuant to House Resolution 875, the gentlewoman from New 
York (Ms. Velazquez) and a Member opposed each will control 10 minutes.
  The Chair recognizes the gentlewoman from New York.
  Ms. VELAZQUEZ. Mr. Chairman, the manager's amendment to H.R. 3854 
makes technical changes to the bill and clarifies the legislative 
intent for several provisions contained in the legislation. More 
importantly, the manager's amendment incorporates additional changes 
that were suggested by Members of the House that will greatly improve 
the working of the bill.
  The amendment will improve the delivery of investment capital for 
veteran-owned businesses through the New Markets Venture Capital 
program. This language was suggested by Mr. Jason Altmire, a member of 
the Small Business Committee, and I was happy to include it in the 
amendment.
  Another member of the committee, Representative Bean, also 
contributed language to the amendment which will improve access to the 
SBA's lending programs for franchise small businesses. This, too, 
greatly improves the bill.
  Representative Connolly contributed language to study the role that 
the private sector has played in providing small business access to 
capital over the past 4 years, and provisions that will study the 
effect of the increased loan size limits contained in the underlying 
legislation was suggested by Representative Pingree.
  Additionally, Representative Baird has suggested the SBA conduct a 
study to examine the efficacy of the ARC loan program that was 
established under ARRA.
  Together, these provisions will significantly improve our 
understanding of the state of small business access to capital, and I 
am grateful for their contributions.
  I would also extend my thanks to Representative Boswell for his 
suggestion to include language that will enhance the ability of small 
firms to use 7(a) loans to purchase unoccupied manufacturing centers 
and equipment. This will surely help revitalize communities that have 
suffered from the loss of their manufacturing industries, as will 
language contributed by Representative Costa which will make more loans 
available for communities with unemployment that exceeds prevailing 
State levels by 25 percent.
  Together, these changes made by the manager's amendment will 
significantly improve the ability of H.R. 3854 to deliver capital and 
credit to small businesses. I thank the Members that contributed to it, 
and I urge its adoption.
  I reserve the balance of my time.
  Mr. GRAVES. Mr. Chairman, I rise to claim time in opposition to the 
gentlelady's amendment, though I do not oppose the amendment.
  The CHAIR. Without objection, the gentleman from Missouri is 
recognized for 10 minutes.
  There was no objection.
  Mr. GRAVES. Mr. Chairman, the gentlelady's amendment makes some 
needed technical changes to the bill. In addition, the amendment 
incorporates some suggestions from other House Members that will 
improve the utilization of the SBA's capital access programs. Finally, 
I would note that the amendment incorporates an important study that 
hopefully will resolve the question of whether the current loan limits 
for the 7(a) program are appropriate or whether or not they need to be 
raised.
  I want to thank the chairwoman for her thoughtful consideration in 
developing this amendment.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I yield 2 minutes to the gentleman from 
Iowa (Mr. Loebsack).
  Mr. LOEBSACK. Thank you, Madam Chairwoman. I rise in strong support 
of the Small Business Financing and Investment Act and the manager's 
amendment, and I thank Chairwoman Velazquez and the committee for their 
excellent work.
  Small businesses represent 97 percent of Iowa employers and over half 
of our private sector employment. They are vital to our economic 
recovery. This bill makes critical changes to increase their ability to 
expand and create new jobs by extending lending provisions included in 
the Recovery Act and ensuring applications are simpler.
  Many Iowa businesses face another burden. In 2008, we experienced the 
worst natural disaster in our State's history, leaving 85 of 99 total 
counties disaster areas. Given our experience with this disaster, I am 
especially pleased with the improvements included to SBA's Disaster 
Loan program, such as raising disaster loan limits and the ceiling for 
collateral requirements, and improving repayment terms.
  Further, the bill creates a grant program to help the most severely 
affected small businesses and will provide assistance to women and 
veteran outreach centers, small business development centers, and local 
chambers of commerce in reaching disaster victims for case management.
  While these changes will be beneficial for future disaster victims, 
probes are ongoing with the over $270 million in SBA disaster loans 
already approved in Iowa. Many are facing a reduction in supplemental 
assistance grants due to what is considered a duplication of benefits 
with their SBA loans, even though these are loans that must be repaid, 
not grants. Additionally, after a reduction in loan principal due to a 
duplication of benefits, small loans' monthly payment structures are 
not changed to reflect the decreased balance. These issues have delayed 
and impeded the recovery efforts taking place in Iowa.
  I look forward to working further to improve the SBA Disaster Loan 
program, and I thank the committee for their work to help small 
businesses.
  I urge support for the manager's amendment.
  Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the 
gentlewoman from New York (Ms. Velazquez).
  The amendment was agreed to.


                 Amendment No. 2 Offered by Mr. Schock

  The CHAIR. It is now in order to consider amendment No. 2 printed in 
part B of House Report 111-317.
  Mr. SCHOCK. Mr. Chairman, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 2 offered by Mr. Schock:
       Page 12, line 18, strike the closing quotation marks and 
     period.
       Page 12, after line 18, insert:
       ``(C) If the lender demonstrates, with respect to a claim 
     for payment described in subparagraph (A), that it followed 
     the applicable requirements of the National Lender Training 
     Program as established under paragraph (37) of this section, 
     the Administrator shall pay the claim unless the 
     Administrator has clear and convincing evidence demonstrating 
     that the lender failed to comply with regulatory requirements 
     established by the Administrator.''.

  The CHAIR. Pursuant to House Resolution 875, the gentleman from 
Illinois (Mr. Schock) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Illinois.

[[Page 26185]]


  Mr. SCHOCK. Thank you, Mr. Chairman.
  First, I would like to thank Chairwoman Velazquez for her work on 
this very important bill and the bipartisan way in which she has 
carried the work of this committee out. I am truly grateful for her 
efforts, as well as Ranking Member Graves for his leadership on our 
side of the aisle to incorporate Members' ideas into this bill.
  This legislation here today is intended to increase credit options 
for small business owners in America. I rise today to offer a simple 
amendment to this important legislation which will help small 
businesses across the country have greater access to necessary capital. 
Such support is needed, not only to sustain their operations but also 
for these small businesses to be able to expand their production 
capabilities and profits, and ultimately to lead to more jobs and 
opportunities for our citizens.
  It is no secret that small businesses are the engine that drive the 
American economy. Currently creating seven out of the 10 new jobs in 
America, increasing lending options and capital for small business is 
vital to leading our country out of this current economic downturn.
  I am glad today that this body is taking the necessary steps to help 
our small businesses grow, finally recognizing the significant role 
that small businesses will play in any economic recovery. It is no 
secret that one of the greatest disappointments my colleagues on this 
side of the aisle had in the so-called ``stimulus'' legislation was 
that it did not do enough for small businesses. Here today we are 
trying to rectify that.

                              {time}  1515

  That said, I am offering this simple amendment, which is backed by 
both the American Banking Association as well as those small 
independent community bankers, which I believe will help incentivize 
increased SBA-backed lending to small businesses from more and more 
banks across this country.
  The legislation before us sets up important guidelines to the 
National Lender Training Program for banks to follow if they would like 
to be considered preferred lenders, thus obtaining easier access to 
carry SBA-guaranteed loans.
  While the significance of establishing such a unified training 
program for lenders to follow cannot be understated, it is equally 
important that we reward those who complete such training with the true 
guarantee from the SBA on the loans that they offer to businesses. As 
is, the SBA currently fails to pay on claims of somewhere between 5 and 
10 percent of the loans they guarantee, therefore causing fear in the 
minds of lenders who would otherwise offer a loan.
  This amendment will ensure that the SBA will pay out on a guarantee 
to any lender who can demonstrate that they followed the prescribed 
training under the National Lender Training Program. If the SBA refuses 
to pay on such a claim, they must present clear and convincing evidence 
as to how the lender failed to meet any requirements of the training 
program. With this type of assurance of lender compensation for SBA-
guaranteed loans in default, banks across this country will be more 
likely to lend to small businesses, ultimately helping to loosen credit 
markets, get capital flowing again, and put people back to work.
  While I appreciate this legislation's efforts to extend loan 
guarantees from the SBA, it is equally important that we ensure the SBA 
pays out on those guarantees should such loans go into default. 
Removing the ambiguity of the SBA to decide which lenders get paid on 
guarantees and which do not will result in more banks being willing to 
participate in these programs and, ultimately, more loans being made to 
our Nation's small businesses.
  I urge adoption of this amendment.
  Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, one of the greatest challenges small 
firms are facing is banks' reluctance to lend. Liquidity issues are one 
reason for this. But equally important are the regulatory burden and 
capital reserves lenders are now expected to carry. As critical as it 
is to get capital back into the markets, we also need to be sure banks 
are properly regulated. At the same time, we need to increase lender 
confidence in SBA.
  Mr. Schock's amendment gets to the heart of both issues. 
Increasingly, we have seen incidents in which lenders believe they are 
following all the agency rules only to discover that SBA won't honor 
its guarantees. When this happens, it compounds the chilling effect 
already plaguing the markets.
  This amendment will make it clear to lenders that if they make a 
good-faith effort to perform due diligence on loans and complete SBA 
training programs, their guarantees will be honored. In doing so, we 
can increase lender confidence and open the door to improved small 
business lending. And we can do so in a way that mitigates risk to the 
taxpayers.
  This is a valuable amendment, and I urge Members to support it.
  I now yield to the gentleman from Missouri for any comments that he 
might have.
  Mr. GRAVES. I thank the chairwoman for yielding.
  Mr. Chairman, I rise in support of the amendment from the gentleman 
from Illinois.
  The gentleman's amendment makes it more difficult for the SBA to use 
technical errors to disregard 7(a) loans because the lenders are going 
to be able to document that they followed all the instructions of the 
SBA. This is going to bring greater certainty to the payment of 
guarantees. It will encourage more banks to participate in this 
program. And I thank the gentleman for his thoughtful addition to the 
bill.
  Ms. VELAZQUEZ. If the gentleman is prepared to yield back, we're 
prepared to accept the amendment.
  Mr. SCHOCK. Mr. Chairman, I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I urge adoption of the amendment, and I 
yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman 
from Illinois (Mr. Schock).
  The amendment was agreed to.


                 Amendment No. 3 Offered by Mr. Schock

  The CHAIR. It is now in order to consider amendment No. 3 printed in 
part B of House Report 111-317.
  Mr. SCHOCK. Mr. Chairman, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 3 offered by Mr. Schock:
       Page 162, line 18, strike ``Report'' and insert ``Reports'' 
     and strike ``Not later than one year'' and insert ``At 
     quarterly intervals''.
       Page 162, line 21, strike ``any expansion of'' and insert 
     ``the Administrator's progress towards the expansion of''.
       Page 162, line 23, strike ``of this section'' and insert 
     ``of amendments made by this title''.
       Page 162, after line 23, insert:
       (c) Regulations.--The Administrator of the Small Business 
     Administration shall promulgate such regulations as are 
     necessary to carry out the Renewable Energy Capital 
     Investment Program established pursuant to this title within 
     180 days after the enactment of this Act.

  The CHAIR. Pursuant to House Resolution 875, the gentleman from 
Illinois (Mr. Schock) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Illinois.
  Mr. SCHOCK. Mr. Chairman, I rise today to offer one more additional 
change to this important legislation which I believe will help obtain 
some of its intended goals.
  While H.R. 3854 has several initiatives aimed at increasing capital 
access for small businesses, it additionally makes several SBA 
programmatic changes. One such change is intended to increase small 
business and small manufacturer participation in renewable fuels and 
green industries through

[[Page 26186]]

an overhaul of the already established Renewable Energy Capital 
Investment Program.
  Less than 1 month ago, the Small Business Subcommittee on Contracting 
and Technology held a hearing where one of my constituents from Peoria, 
Illinois, Dr. Peter Johnsen, testified. Dr. Johnsen shared with that 
committee the difficulty he was having in finding capital investments 
or loans for the further development of the crop known as pennycress, a 
winter cover crop which yields potentially as much as 115 gallons of 
biodiesel per acre as compared to the current 59 gallons from 
traditional soy-based diesel, nearly twice as much output. I'm 
optimistic that operating at full potential, the Renewable Energy 
Capital Investment Program with its matching grant contributions would 
be of great assistance to agricultural entrepreneurs across our country 
like Mr. Johnsen.
  Established in 2007, the Renewable Energy Capital Investment Program, 
formerly known as the Renewable Fuel Capital Investment Program, has 
been a shadow of its promised self. In fact, to date, the SBA 
Administrator has failed to even issue any rules or regulations for 
small business participation in the program despite its establishment 
nearly 2 years ago. This amendment would first place specific emphasis 
on requiring the SBA to release regulations for program participation 
within 180 days of enactment of this legislation.
  Additionally, the underlying legislation allows for a yearly progress 
report from the SBA concerning this important program. Unfortunately, 
this program is too important and its potential too great for Congress 
to simply sit by for a year and wait for the SBA to act. This amendment 
will require quarterly progress reports concerning the status of the 
Renewable Energy Capital Investment Program, what steps the SBA is 
taking to encourage and promote participation, and, finally, how this 
program is being utilized by the small business community.
  No longer is the renewable fuels market dominated by those with deep 
research and development pockets backed by larger corporations. This 
important program will help ensure small businesses get equal 
opportunity to participate in the effort to make our country more 
energy efficient while also establishing new renewable fuel sources.
  For these reasons, I urge adoption of this amendment.
  Mr. Chairman, I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, green energy presents a world of 
opportunity for our economy. In terms of job creation, it has already 
generated millions of high-wage positions for workers in fields ranging 
from engineering and IT to agriculture and construction. Small firms 
make up the lion's share of this growing sector, and they will play a 
key role in our Nation's efforts to reduce carbon emissions and break 
free from foreign oil. But they cannot do it without the capital to 
continue research and production.
  H.R. 3854 delivers critical capital to the small businesses driving 
the clean energy sector. Mr. Schock's amendment enhances those efforts 
by adding an important element of transparency. By requiring SBA to 
release quarterly reports on the Renewable Energy Capital Investment 
Program, we can gauge the agency's progress in expanding the 
initiative. We can also pinpoint areas that are working and identify 
places in need of improvement. Meanwhile, this amendment mandates the 
timely establishment of program regulations. That measure should 
expedite the program's expansion and increase overall efficiency.
  These are critical improvements, and I urge support of Mr. Schock's 
amendment.
  I will now yield to the gentleman from Missouri for any comments that 
he might have.
  Mr. GRAVES. Mr. Chairman, I rise in support of the amendment from the 
gentleman from Illinois.
  The amendment would require regular reports to Congress on progress 
in establishing renewable energy investment companies so that this body 
can take appropriate action if the agency continues to delay 
implementing the will of Congress.
  I thank the gentleman for his amendment.
  Ms. VELAZQUEZ. Mr. Chairman, if the gentleman is prepared to yield 
back, we're prepared to accept the amendment.
  Mr. SCHOCK. Once again, I thank Chairman Velazquez for her bipartisan 
work on this and her leadership, and I yield back the balance of my 
time.
  Ms. VELAZQUEZ. Mr. Chairman, I urge adoption of the amendment, and I 
yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman 
from Illinois (Mr. Schock).
  The amendment was agreed to.


              Part B Amendment No. 4 Offered by Mr. Bright

  The CHAIR. It is now in order to consider amendment No. 4 printed in 
part B of House Report 111-317.
  Mr. BRIGHT. Mr. Chairman, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 4 offered by Mr. Bright:
       Add at the end of the bill the following:

                        TITLE X--RURAL OUTREACH

     SEC. 1001. RURAL OUTREACH.

       The Small Business Act (15 U.S.C. 631 et seq.), as amended 
     by this Act, is further amended--
       (1) by redesignating section 46 as section 47; and
       (2) by inserting after section 45 the following:

     ``SEC. 46. RURAL OUTREACH.

       ``The Administrator shall ensure that each district office 
     of the Administration that includes a rural area--
       ``(1) establishes a plan to provide small business concerns 
     in rural areas with information on the financing and 
     investment programs of the Administration of use to such 
     concerns;
       ``(2) designates an employee of the office as a rural 
     business financing outreach specialist, who is responsible 
     for providing advice concerning the lending and investment 
     programs of the Administration to small business concerns; 
     and
       ``(3) hosts at least one outreach seminar in a rural area 
     each year to provide information described under paragraph 
     (1) to small business concerns in rural areas.''.

  The CHAIR. Pursuant to House Resolution 875, the gentleman from 
Alabama (Mr. Bright) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Alabama.
  Mr. BRIGHT. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I rise today in support of my amendment to H.R. 3854, 
the Small Business Financing and Investment Act.
  This amendment requires SBA district offices servicing rural areas to 
establish a plan for marketing, financing, and investment opportunities 
for rural businesses. It also requires the offices to designate a rural 
business financing outreach specialist and host at least one annual 
outreach seminar in the rural areas of each of SBA's 70 district 
offices.
  When I speak to small businesses throughout my district--that's 
southeast Alabama--I often hear about their problems accessing capital 
through SBA programs. In fact, my office recently received a call from 
a constituent in Equality, Alabama, who owns a garden and plant 
nursery. This gentleman, like many other small businesses across the 
country, they're struggling to make payroll. He needs access to capital 
in order to prevent layoffs but was given the runaround at his local 
SBA district office. He turned to my office because he didn't get the 
help he needed from the local SBA office.
  Our constituents and other constituents tell me they simply don't 
know what opportunities are available to them, be it through the SBA or 
other Federal agencies. By passing this

[[Page 26187]]

amendment that I have proposed today, I believe these situations could 
be avoided in the future. A designated rural business outreach 
specialist could have helped the small business owner which I just 
talked about to process his application to access the capital he needed 
to stay in business. An aggressive marketing campaign would have 
informed his business and other business owners in my district and 
throughout the country of the opportunities the SBA has to offer for 
them. I'm sure there are hundreds of similar businesses throughout our 
country that have the same story that my constituent posed to me.
  This is why I have introduced this commonsense amendment which will 
require the SBA to do a better job of reaching out to rural small 
businesses that haven't previously participated in any of SBA's 
important programs.

                              {time}  1530

  My amendment will help small business owners throughout rural areas 
and strengthen the underlying bill. SBA district offices should always 
have business models, marketing plans and outreach specialists designed 
to specifically help rural areas of our country. This amendment will 
make the SBA user friendly for small business owners in rural parts of 
our great Nation. I urge passage of this amendment and this bill.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, traditionally, the SBA has been vitally 
important to rural businesses. For many years, rural lenders served as 
the backbone of the Small Business Administration's lending programs, 
delivering capital to areas of the country that don't have the same 
options as other parts of our Nation.
  For a range of reasons, over the last 8 years, we have seen many of 
the SBA rural lenders disappear. This is a troubling trend. It means 
that businesses on Main Street cannot find the credit they need to 
expand a store, build a new plant, or simply upgrade their facilities. 
Without a strong selection of rural lenders, we are beginning to see 
the emergence of a credit gap. Rural areas have the same need for jobs 
that the rest of America does, and it is important that they have a 
chance to create them.
  H.R. 3854 includes a provision targeted specifically at encouraging 
lenders to provide credit to entrepreneurs in rural America. The Rural 
Lender Outreach Program helps line up lenders in this part of America 
to expand capital access options for businesses.
  Mr. Bright's amendment addresses the other side of that coin, 
ensuring that businesses know these rural lenders are out there. By 
challenging the SBA to connect with rural businesses and requiring the 
SBA's district offices to engage in outreach, we can put these 
entrepreneurs in touch with local lenders.
  Small firms' potential for job creation should not be limited to 
certain parts of the country. This amendment will ensure that we 
prevent this ``credit gap'' from growing, so that small businesses, no 
matter where they are located, find financing options that work for 
them. This is an important change to today's legislation, and I ask my 
colleagues to support it.
  I yield to the gentleman from Missouri (Mr. Graves) for any comments 
he might have.
  Mr. GRAVES. Mr. Chairman, I rise today in support of the amendment 
from the gentleman from Alabama. It is important that small businesses 
in rural areas can reach an employee at the SBA dedicated to 
understanding the operation of capital access programs. In addition, by 
having an outreach effort, businesses in rural areas will learn 
directly from the SBA and lenders about options for obtaining necessary 
capital to expand their businesses.
  I would like to thank the gentleman for his very useful amendment on 
this legislation.
  Ms. VELAZQUEZ. Mr. Chairman, I now yield 1\1/2\ minutes to the 
gentleman from Iowa (Mr. Boswell).
  Mr. BOSWELL. Mr. Chairman, I appreciate the gentlewoman yielding me 
this time, and I appreciate that you took into account the factories 
and the equipment that has become available because of closings and so 
on, like Maytag, for example, in my district. A lot of good things have 
happened with the small businesses going in there, and you have really 
taken measures that will benefit that and will help our country and 
certainly help those communities that have been hit very hard.
  So we compliment you for your work, and see that is happening other 
places around the country as well. The need is there, and this will be 
a big asset. Well done. Thank you very much.
  Ms. VELAZQUEZ. Mr. Chairman, if the gentleman from Alabama is 
prepared to yield back, we are prepared to accept the amendment.
  Mr. BRIGHT. Mr. Chairman, in closing, I would like to thank our 
chairwoman today for the service and the leadership she has given us on 
the committee, and also the staff on the Small Business Committee for 
their attention to this issue and for working with my staff to draft 
this amendment.
  I would also like to thank my colleagues for their continuing support 
and commitment to this issue. I urge all of my colleagues to support my 
amendment and this bill.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman 
from Alabama (Mr. Bright).
  The amendment was agreed to.


                  Amendment No. 5 Offered by Mr. Flake

  The CHAIR. It is now in order to consider amendment No. 5 printed in 
part B of House Report 111-317.
  Mr. FLAKE. Mr. Chairman, I have an amendment at the desk designated 
No. 5.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 5 offered by Mr. Flake:
       Page 178, after line 18, insert the following:

     SEC. 702. PROHIBITIONS ON EARMARKS.

       None of the funds appropriated for the program established 
     under part D of title III of the Small Business Investment 
     Act of 1958, as added by this title, may be used for a 
     Congressional earmark as defined in clause 9(d) of rule XXI 
     of the Rules of the House of Representatives.

  The CHAIR. Pursuant to House Resolution 875, the gentleman from 
Arizona (Mr. Flake) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Arizona.
  Mr. FLAKE. Mr. Chairman, this amendment would simply prohibit the 
grant program established in the Small Business Early Investment 
Program from ever being used as a vehicle for earmarking.
  As my colleagues are aware, I have offered this noncontroversial 
amendment many times to legislation in both the 110th and 111th 
Congresses. I would expect that this would be accepted by the majority. 
This is noncontroversial.
  There is language in the bill that says this is a competitive grant 
program. Having said that, unfortunately, we have many programs that 
are slated to be competitive, or there is language saying these grants 
will be awarded on a competitive basis. And still, unless we have 
language like this amendment provides for, they become a vehicle for 
earmarking.
  If we look at some of the FEMA grants in the Homeland Security bill, 
some of those are competitive grant programs, and 100 percent of the 
money in some of those accounts has been earmarked. So it behooves us 
to opt for language like this that prevents that from happening.
  Under the Small Business Early Investment Program, this is a little 
different than others. Private investment companies can apply to 
receive a grant from the SBA. These grants are to be used by approved 
applicants for the purpose of making investments in new small 
businesses, presumably with a goal of creating or preserving jobs.
  Language contained in the committee report says applicants ``should

[[Page 26188]]

be judged by the merits of their application and should compete on 
equal footing with other applicants for selection to participate in the 
program.'' That is all we are trying to preserve, just with language to 
make sure that happens.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, in the 111th Congress, this body has 
made transparency a top priority. That is why we have adopted rule XI, 
which requires quarterly hearings on fraud, waste, abuse and 
mismanagement of Federal programs. But our commitment to good 
government extends beyond the committee room, which is why I am glad to 
accept Mr. Flake's amendment. That said, I want to point out that small 
business programs are not vehicles for waste. They are important 
avenues for economic growth, not earmarks.
  I don't think there is a single person in this room who doesn't want 
to see small businesses succeed. After all, they create the lion's 
share of new American jobs, and we are counting on them to strengthen 
our economy.
  It would not be in the best interest of this body or of our great 
Nation to compromise the integrity of SBA's programs. These initiatives 
deliver the best bang for the taxpayer's buck, and ultimately return 
more money to the economy than they take out. Mr. Flake's amendment is 
a simple affirmation of that fact, and I am willing to accept.
  I now yield to the gentleman from Missouri (Mr. Graves) for any 
remarks he may have.
  Mr. GRAVES. Mr. Chairman, I rise today in support of the amendment 
from the gentleman from Arizona. If the purpose of the early-stage seed 
capital program is to allow venture funds to identify the best possible 
small business investments, it would be counterproductive to allow 
Congress to override those decisions through earmarks. I thank the 
gentleman for his very important additional protection to the early-
stage seed capital program.
  Ms. VELAZQUEZ. Mr. Chairman, I urge everyone to support the 
amendment. I reserve the balance of my time.
  Mr. FLAKE. I thank the chairwoman and the ranking minority member on 
the committee for accepting the amendment.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman 
from Arizona (Mr. Flake).
  The question was taken; and the Chair announced that the ayes 
appeared to have it.
  Ms. VELAZQUEZ. Mr. Chairman, I demand a recorded vote.
  The CHAIR. Pursuant to clause 6 of rule XVIII, further proceedings on 
the amendment offered by the gentleman from Arizona will be postponed.


                 Amendment No. 6 Offered by Ms. Kosmas

  The CHAIR. It is now in order to consider amendment No. 6 printed in 
part B of House Report 111-317.
  Ms. KOSMAS. Mr. Chairman, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 6 offered by Ms. Kosmas:
       Page 178, after line 6, insert the following:
       ``(ix) Photonics technology.

  The CHAIR. Pursuant to House Resolution 875, the gentlewoman from 
Florida (Ms. Kosmas) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentlewoman from Florida.
  Ms. KOSMAS. Mr. Chairman, I yield myself such time as I may consume.
  I would like to thank the chairwoman of the committee and the 
committee for their hard work and leadership in introducing this 
important bill that will give small businesses greater access to 
capital.
  H.R. 3854, the Small Business Financing and Investment Act of 2009, 
establishes an early-stage investment program that will provide 
financing to support small businesses in targeted business sectors. By 
investing in fledgling companies, America's small businesses will be 
able to grow and create jobs.
  I rise today in support of my amendment to H.R. 3854, which would add 
photonics technology to the list of targeted industries qualified to 
receive grants under the new early-stage investment program.
  Photonics technology, which includes fiber optic communications and 
laser technology, is a key industry in central Florida and is a 
supporting technology for almost every industry, including energy, 
telecommunications, health care, robotics, astronomy, aerospace, and 
defense.
  According to the Opto-electronics Industry Development Association, 
the fast-growing, global photonics market is estimated to be worth half 
a trillion dollars today. In Florida alone, photonics provides over 
27,000 jobs and brings billions of dollars to our State each year. We 
must ensure that America remains competitive in this industry and that, 
as the market expands, American small businesses and workers benefit.
  Numerous small businesses in the photonics industry are at the very 
early stages of development, and therefore, they need this support and 
access to capital in order to grow and become profitable. By including 
photonics in the list of targeted business sectors, we will ensure that 
the photonics industry will continue to play a vital role in developing 
new technologies for use in every area of our economy. And this bill 
and my amendment will give small businesses in this industry the 
opportunity to succeed.
  Again, I commend the chairwoman and the committee for the bill. I ask 
my colleagues for their support of this amendment.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, growth in our economy has long depended 
on the progress of new industries. When our country bounced back from 
the recession of the 1990s, it wasn't because we simply rebuilt jobs 
where they once had been; it was because we created new ones entirely. 
And we did so in emerging industries like information technology. 
Today, we have a similar opportunity with growing fields like 
photonics, the science that uses light energy to power and improve 
everything from telecommunications to electrical systems.
  Photonics technology touches virtually every industry. Through the 
leverage of public-private partnerships like SBIR, it is already 
sparking breakthroughs that impact our everyday lives, for example, 
better bar codes for scanning groceries, or less invasive forms of 
laser eye surgery. With new investments in this promising field, we can 
build the kind of innovation America needs. That is why we will be 
adding photonics to the roster of business sectors that can receive 
early-stage investment grants.

                              {time}  1545

  Ms. Kosmas' amendment is a valuable one, and I urge my colleagues to 
support it.
  I now yield to the gentleman from Missouri for any comments that he 
might have.
  Mr. GRAVES. Mr. Chairman, I rise today in support of the amendment 
from the gentlelady from Florida. This is an area that I am very 
familiar with. Without photonics, we would not be able to enjoy the 
advancements in avionics, in aircraft that we have today or high-
definition television. Seeking the next great advancement in this field 
is important, and I thank the gentlelady for her significant 
improvement to the early-stage seed capital program.
  Ms. VELAZQUEZ. Mr. Chairman, if the gentlelady is prepared to yield

[[Page 26189]]

back, we are prepared to accept the amendment.
  Ms. KOSMAS. Thank you. I yield back the balance of my time.
  Ms. VELAZQUEZ. I urge adoption of the amendment, and I yield back the 
balance of my time.
  The CHAIR. The question is on the amendment offered by the 
gentlewoman from Florida (Ms. Kosmas).
  The amendment was agreed to.


           Amendment No. 7 Offered by Mr. Gingrey of Georgia

  The CHAIR. It is now in order to consider amendment No. 7 printed in 
part B of House Report 111-317.
  Mr. GINGREY of Georgia. Mr. Chairman, I have an amendment at the 
desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 7 offered by Mr. Gingrey of Georgia:
         Page 168, line 23, strike ``5 years'' and insert ``7 
     years''.

  The CHAIR. Pursuant to House Resolution 875, the gentleman from 
Georgia (Mr. Gingrey) and a Member opposed each will control 5 minutes.
  The Chair recognizes the gentleman from Georgia.
  Mr. GINGREY of Georgia. Thank you, Mr. Chairman.
  What I have offered is an important, yet straightforward, amendment. 
It would simply extend the period in which a physician or a medical 
group could participate in the Small Business Health Information 
Technology Financing program from 5 years to 7 years.
  Mr. Chairman, the promotion and advancement of health information 
technology should be one aspect of the health care debate upon which 
most Democrats, Republicans and Independents would agree. While a large 
portion of the health care debate has been focused on how to extend 
existing coverage and figuring out who pays for it, health information 
technology will actually improve the underlying quality of health care, 
and it also will lower the overall cost by reducing overhead and 
medical errors. Mr. Chairman, health information technology will not 
only save dollars but, more importantly, save lives.
  For this reason, I have long been a proponent of health information 
technology. Since the 109th Congress, I have introduced the Assisting 
Doctors to Obtain Proficient and Transmissible Health Information 
Technology Act, or ADOPT HIT Act, so that we can encourage medical care 
providers to purchase and implement health information technology with 
the assistance of an up to $250,000 tax deduction under section 179 of 
the code.
  Now the underlying bill provides for Small Business Administration 
loan guarantees of up to 90 percent, with overall caps of $350,000 for 
individual physicians or $2 million for physician groups. Even more 
importantly, a physician or a group of physicians could defer repayment 
of the loan for up to 3 years. Currently, there is a 5-year window in 
which a physician could participate in this program.
  Very simply, as I stated at the outset, my amendment will extend this 
window from 5 years to 7 years in order to allow physicians more time 
to see the benefits of HIT and make arrangements to invest in the 
technology and to participate in this good program.
  Mr. Chairman, I strongly encourage my colleagues to support my 
amendment and show their support for health information technology and 
the promise that it offers.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, the wide-scale adoption of medical 
records is one of the most sweeping and most important elements of 
health care reform. It will improve efficiency, reduce costs and 
streamline communication. But like any other ground-breaking 
technology, it isn't cheap. For your average small medical practice, 
initial costs are roughly $100,000. When coupled with today's larger 
legislation, Mr. Gingrey's amendment will help blunt those expenses. By 
some estimates, the nationwide adoption of health IT will spur annual 
savings of $77 billion. Already many major hospitals and medical 
practices are enjoying these cost-cutting benefits. Small firms, 
however, have been reluctant to adopt it. In fact, only 13 percent of 
solo practitioners use the technology. The gentleman's amendment 
recognizes the benefits of health IT and improves the bill, and that is 
the reason why we are supporting this amendment.
  I would now like to yield to the gentleman from Missouri for any 
comments that he may have.
  Mr. GRAVES. Mr. Chairman, I rise today in support of the amendment 
from the gentleman from Georgia. The gentleman's amendment would extend 
the time in which physicians and other health care providers could 
access the new health information technology loan program. This would 
give all providers sufficient time to obtain loans so that we can 
increase efficiencies in health care and delivery.
  I thank the gentleman for his very excellent contribution to this 
bill.
  Ms. VELAZQUEZ. Mr. Chairman, if the gentleman is prepared to yield 
back, I am prepared to accept the amendment.
  Mr. GINGREY of Georgia. Mr. Chairman, let me just say that I am 
deeply appreciative to Chairwoman Velazquez and also to Ranking Member 
Graves for their support of this amendment, and I thank them for that 
support.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman 
from Georgia (Mr. Gingrey).
  The amendment was agreed to.


                Amendment No. 8 Offered by Mr. Kratovil

  The CHAIR. It is now in order to consider amendment No. 8 printed in 
part B of House Report 111-317.
  Mr. KRATOVIL. Mr. Chairman, I have an amendment at the desk.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 8 offered by Mr. Kratovil:
       Page 32, after line 7, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 124. 100 PERCENT GUARANTEE FOR SMALL BUSINESS CONCERNS 
                   OWNED AND CONTROLLED BY VETERANS.

       Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), 
     as amended by this Act, is further amended--
       (1) in paragraph (3)(A) by striking the semicolon at the 
     end and inserting the following: ``or in paragraph (42);''; 
     and
       (2) by adding at the end the following:
       ``(42) 100 percent guarantee for small business concerns 
     owned and controlled by veterans.--Notwithstanding paragraph 
     (2), in an agreement to participate in a loan on a deferred 
     basis under this subsection with respect to a small business 
     concern owned and controlled by veterans, participation by 
     the Administrator may be equal to 100 percent. The total 
     amount outstanding and committed (by participation or 
     otherwise) with respect to a loan to such a small business 
     concern from the business loan and investment fund 
     established by this Act may not exceed $3,000,000.''.

  The CHAIR. Pursuant to House Resolution 875, the gentleman from 
Maryland (Mr. Kratovil) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Maryland.
  Mr. KRATOVIL. I yield myself as much time as I may consume.
  Mr. Chairman, I rise in support of my amendment to the Small Business 
Financing and Investment Act of 2009 that would raise the maximum SBA 
7(a) loan guarantee from 90 percent to 100 percent on qualifying loans 
for veteran-owned small businesses. As we approach Veterans Day, I feel 
we should be supporting our vets not only in words but also with our 
actions. This amendment is a very simple and appropriate way to do so. 
Raising the maximum loan guarantee will not only be a way of fulfilling 
our commitment to veterans, but it will also serve to stimulate lending 
and financing for the small businesses that are the backbone of local 
economies and the number one source of new job creation.

[[Page 26190]]

  Mr. Chairman, this bill frees up the often elusive credit that serves 
as the lifeline of any established or startup small business; it honors 
the service of our Nation's veterans; and it will stimulate the small 
businesses at the heart of the U.S. economy. I urge my colleagues to 
support it.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, entrepreneurship has long been a popular 
option for America's veterans. After all, it requires many of the same 
traits that military service does--hard work, ingenuity and dedication 
to something larger than yourself. So it is not surprising that 
veterans own roughly 15 percent of our Nation's small businesses. What 
is surprising, however, is the rate at which lending to these companies 
is declining. Between fiscal year 2007 and fiscal year 2008, the number 
of 7(a) loans to veteran-owned businesses dropped more than 22 percent. 
In other words, entrepreneurship is being pushed further and further 
out of reach for our veterans.
  Earlier this year, the House passed legislation establishing new 
veteran entrepreneurial development programs at SBA. This legislation 
will mean a range of new services for veterans. One of the most 
important goals was helping meet veteran-owned businesses' capital 
needs. The amendment offered by Mr. Kratovil builds on that earlier 
work. His amendment will ensure that veterans not only access the 
capital they need but lets them do so at affordable rates. By providing 
higher guarantees on loans and lower costs, we can offer new 
opportunities for veterans who own businesses as well as those who wish 
to start one.
  For our servicemen and -women, entrepreneurship is the tried and true 
path to economic empowerment. This amendment will put more veterans on 
that path. This is a positive change to the legislation, and I urge my 
colleagues to support the amendment.
  I yield to the gentleman from Missouri for any comments that he may 
have.
  Mr. GRAVES. Mr. Chairman, I rise today in support of the amendment 
from my football teammate, the gentleman from Maryland (Mr. Kratovil).
  Mr. Chairman, no one can deny the valuable role that veterans have 
played in maintaining the economic freedoms we have in this country. 
They certainly deserve our thanks and support. The gentleman's 
amendment would provide that support though a 100 percent guarantee on 
loans to veteran-owned small businesses. I thank the gentleman for his 
vital addition to this bill.
  Ms. VELAZQUEZ. Mr. Chairman, if the gentleman is ready to yield back, 
we are prepared to accept the amendment.
  Mr. KRATOVIL. Mr. Chairman, I yield back the balance of my time.
  Ms. VELAZQUEZ. I yield back the balance of my time.
  The CHAIR. The question is on the amendment offered by the gentleman 
from Maryland (Mr. Kratovil).
  The amendment was agreed to.


                 Amendment No. 9 Offered by Mr. Paulsen

  The CHAIR. It is now in order to consider amendment No. 9 printed in 
part B of House Report 111-317.
  Mr. PAULSEN. I rise to offer an amendment, Mr. Chair.
  The CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 9 offered by Mr. Paulsen:
       Add at the end of the bill the following:

             TITLE X--STUDY RELATING TO MEDICAL TECHNOLOGY

     SEC. 1001. STUDY RELATING TO MEDICAL TECHNOLOGY.

       Not later than one year after the date of the enactment of 
     this Act, the Administrator of the Small Business 
     Administration shall submit to Congress a report describing 
     recommendations for and the feasibility of a program--
       (1) to increase investment in the research, development, 
     and commercialization of medical technology by small business 
     concerns; and
       (2) that is administered in a manner similar to the program 
     under part C of title III of the Small Business Investment 
     Act of 1958 (15 U.S.C. 690 et seq.).

  The CHAIR. Pursuant to House Resolution 875, the gentleman from 
Minnesota (Mr. Paulsen) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Minnesota.
  Mr. PAULSEN. Thank you, Mr. Chair. I yield myself as much time as I 
may consume.
  I rise today to offer an amendment that I am hopeful will help to 
strengthen and accelerate advancements in medical technology. My 
amendment would require the SBA to conduct a study that would determine 
the feasibility of a program that would help bring funding to startup 
medical technology firms. The amendment would also require the SBA to 
report its suggestions on how to best structure such a program. It is 
my hope with this information, Congress will be able to strategically 
implement a program to help fund medical technology. Programs of this 
nature are already in place and exist for renewable energy and for 
rural manufacturing. This amendment would simply look at also expanding 
this to medical technology. Medical device companies face startup costs 
that are very steep, and a program under the SBA would help bring 
funding to these companies and allow them to get their products to 
market quicker.
  Mr. Chair, we know very well that the development of these new cost-
saving technologies allow patients to lead longer, healthier and more 
productive lives. These technologies also improve the quality of health 
care in America while helping to fight rising health care costs. 
Furthermore, the medical technology industry is a proven job-creator. 
According to one study, the medical technology industry nationwide 
employs more than 350,000 people. These are good, high-paying jobs. The 
average salary of a med tech employee is higher than the State salary 
average in 49 of the 50 states; and in some States, medical technology 
jobs pay nearly 25 percent higher than the State average salary. Many 
of these jobs are also often in the area of research and development, 
which keeps America in the forefront of innovation. It should also be 
noted that these companies are truly America's small businesses and 
success stories. Of these companies, 71 percent have fewer than 10 
employees. It fits right in with this bill, Mr. Chair.
  A week ago, I held a field hearing in my district on the issue of 
medical technology, and we heard firsthand from small businesses in my 
district about the work that they are doing and the jobs they are 
creating. As cochair of the Medical Technology Caucus, I would ask 
support for this amendment so we can have Congress spur additional 
advancement in medical technology.
  I urge adoption of my amendment and reserve the balance of my time.
  Ms. VELAZQUEZ. Mr. Chairman, while not opposed to the amendment, I 
ask unanimous consent to claim the time in opposition.
  The CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Mr. Chairman, small businesses are our Nation's most 
prolific innovators. Time and time again, they have pioneered new 
fields, developed new products and achieved important technological 
breakthroughs.

                              {time}  1600

  Today, small businesses are breaking new ground in the energy sector. 
As our Nation undergoes a green revolution, small businesses are 
leading the way in developing solar power. They are blazing the trail 
in the development of wind power and biodiesel, and renewable fuel 
industries are dominated by small businesses. Just as small firms are 
on the leading edge of developments in the energy sector, they also 
play an active role in the development of new medicines and medical 
devices.

[[Page 26191]]

  The gentleman from Minnesota is suggesting that the SBA look into the 
feasibility of an initiative to help raise capital for entrepreneurs in 
the medical field. Given the important role that small firms play in 
this arena, at least exploring the possibility of an SBA program to 
assist them in capital formation seems prudent.
  I urge adoption of the amendment.
  I yield to the gentleman from Missouri for any comments that he might 
have.
  Mr. GRAVES. Mr. Chairman, I rise today in support of the amendment 
from the gentleman from Minnesota.
  My district has a significant biotechnology industry, so I certainly 
understand the gentleman's interest in investigating the viability of 
having small business investment companies focus on medical 
technologies. It certainly is a laudable goal, and I understand the 
utility of a program before expanding it.
  Mr. Chairman, I would urge the support of this.
  Ms. VELAZQUEZ. Mr. Chairman, I reserve the balance of my time.
  Mr. PAULSEN. Mr. Chairman, I yield 2 minutes to a gentleman who has a 
great understanding of the importance of medical technology and who is 
emerging as one of the more thoughtful members of the Financial 
Services Committee, the gentleman from New Jersey (Mr. Lance).
  Mr. LANCE. I rise today in support of the amendment offered by the 
gentleman from Minnesota.
  I thank the distinguished chairwoman of the committee and the ranking 
member.
  Mr. Chairman, throughout the United States, the medical technology 
sector employs more than 350,000 workers, many of them in firms with 
fewer than 100 employees. This includes more than 3,000 jobs in the 
congressional district I have the honor of representing, the Seventh 
Congressional District in New Jersey, which many believe to be the 
medicine chest of the entire Nation and of, indeed, the world.
  These jobs are tied heavily to research and development, helping to 
keep the United States at the forefront of medical innovation. We must 
consider the importance of these lifesaving technologies, especially as 
we move forward with health care. It is vital that we do not forget the 
valuable impact medical technology has on lowering the costs of health 
care, on expanding access to lifesaving cures, and on creating jobs. 
That is why I believe we should be making investments in this field.
  I urge my colleagues to support the amendment sponsored by my friend, 
the gentleman from Minnesota.
  Ms. VELAZQUEZ. Madam Chair, if the gentleman is prepared to yield 
back, we are prepared to accept the amendment.
  Mr. PAULSEN. If I could just close by saying I appreciate the 
leadership of the Chair and of the gentlewoman, and I extend my 
appreciation for the support of this amendment.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, I urge adoption of the amendment.
  I yield back the balance of my time.
  The Acting CHAIR (Ms. Edwards of Maryland). The question is on the 
amendment offered by the gentleman from Minnesota (Mr. Paulsen).
  The amendment was agreed to.


                 Amendment No. 10 Offered by Mr. Massa

  The Acting CHAIR. It is now in order to consider amendment No. 10 
printed in part B of House Report 111-317.
  Mr. MASSA. Madam Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 10 offered by Mr. Massa:
       Page 131, after line 4, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 306. YOUNG ENTREPRENEURS PROGRAM.

       Section 7(m)(4) of the Small Business Act (15 U.S.C. 
     636(m)(4)) is amended by adding at the end the following:
       ``(G) Young entrepreneurs program.--
       ``(i) In general.--An intermediary that receives a grant 
     under paragraph (1)(B)(ii) may establish a program for the 
     geographic area served by such intermediary that provides to 
     young entrepreneurs technical assistance regarding the 
     following:

       ``(I) Establishing or operating a small business concern in 
     the geographic area served by the intermediary.
       ``(II) Acquiring or securing financing to carry out the 
     activities described in subclause (I).

       ``(ii) Young entrepreneur defined.--For purposes of this 
     subparagraph, a young entrepreneur is an individual who--

       ``(I) is 25 years of age or younger; and
       ``(II) has resided in the geographic area served by the 
     intermediary for not less than 2 years.

       ``(iii) Good faith effort requirement.--If a young 
     entrepreneur who receives technical assistance under this 
     subparagraph from an intermediary establishes or operates a 
     small business concern, the young entrepreneur shall make a 
     good faith effort to establish or operate such concern in the 
     geographic area served by the intermediary.
       ``(iv) Deferred repayment.--If a small business concern 
     established or operated by a young entrepreneur receives a 
     loan under this subsection, such concern may defer repayment 
     on such loan for a period of not more than 6 months beginning 
     on the date that such concern receives the final disbursement 
     of such loan.''.

  The Acting CHAIR. Pursuant to House Resolution 875, the gentleman 
from New York (Mr. Massa) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from New York.
  Mr. MASSA. Madam Chair, let me take this opportunity to thank Ms. 
Velazquez and to commend Mr. Schrader and his colleagues on the Small 
Business Committee for their efforts in crafting this landmark 
legislation to expand opportunities for many new entrepreneurs and for 
expanding business opportunities across the country.
  Offering these business ventures this needed help in getting off the 
ground is essential, especially right now, for the creation of jobs and 
so as to boost economic activity in local communities, especially in 
local rural communities, which are so important to my district.
  With my amendment, we can focus on a very pressing concern from many 
places across this country and on one of exceptional concern back home. 
This is the brain drain, the loss of talent, caused by the outmigration 
of so many young businesspeople.
  As is a common trend for many regions in America, we have seen a 
great loss of young people in my district, in western rural New York. 
This is due to a longstanding scarcity of jobs and of many shrinking 
opportunities for bright, young entrepreneurs. By creating programs in 
the Small Business Administration which focus specifically on providing 
business advice, technical assistance, and lowering eligibility to 
younger entrepreneurs, we can give these young people who would like to 
stay in our districts better opportunities to do so.
  Year to year, we continue to see our children leave their communities 
because they have limited opportunities to find good-paying jobs or to 
find any attractive means to make livings and to raise families. Our 
communities are shrinking in rural America, and the efforts of this 
outmigration to many places around the country and throughout the 
Nation are clear. With more and more young people forced to leave to 
find careers elsewhere, local economies are facing even higher degrees 
of challenges, and fewer jobs, therefore, are available. Many people 
back home question how long this can continue.
  For those young folks who want to start businesses, who may want to 
earn steady paychecks, who may want to create jobs and hire others in 
their communities, where will they go to grow up and raise their 
families?
  I believe we have an opportunity to help pave the way. Offering 
programs that will help reinvigorate communities through new business 
opportunities for younger entrepreneurs will both provide these 
jobseekers with local opportunities and will hugely benefit the local 
economies in the area. My amendment will do just this.
  Madam Chair, I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, while not opposed to the amendment, I ask 
unanimous consent to claim the time in opposition.

[[Page 26192]]

  The Acting CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Madam Chair, young people have been acutely affected 
by this recession.
  Americans graduating from high school or college face one of the most 
challenging job markets in decades. In some communities, this problem 
is driving recent graduates to other parts of the country as they seek 
economic opportunity. This means that communities which are hard hit by 
the downturn will have even more difficulty as they are deprived of 
their next generation of workers. This drain of young talent presents 
additional challenges for local economies that are struggling to 
recover.
  Entrepreneurship can provide another option for young people who are 
living in economically hard-hit areas. However, younger individuals 
also face unique challenges in starting or launching their own 
businesses. Finding affordable loans without an established credit 
history can be an obstacle. Many young people may not have the large 
reserves of capital that older, more established entrepreneurs have. In 
addition, younger entrepreneurs may not have as much experience in the 
job market. All of these factors present difficulties to young 
Americans who want to go into business for themselves.
  By creating an initiative through the SBA's Microloan Program, this 
amendment will help overcome these problems. With appropriate guidance 
and assistance, many young Americans can go into business for 
themselves. This amendment also recognizes the capital constraints that 
many young entrepreneurs face. It gives a younger entrepreneur who 
qualifies for the Microloan more time for repayment.
  Madam Chair, our Nation's greatest resource has always been our young 
people. They will certainly play a vital role in lifting our Nation out 
of the current downturn. This amendment will give more young Americans 
the opportunity to launch their own ventures. This is a good amendment, 
and I support its adoption.
  I now yield to the gentleman from Missouri for any comments that he 
may have.
  Mr. GRAVES. Madam Chair, I rise today in support of the amendment 
from the gentleman from New York.
  Providing America's youth with entrepreneurial education will show 
them that working for a large corporate entity is not the only way to 
achieve success. In addition, it will give them sufficient ability to 
stay in their local, often rural areas so they can use their ingenuity 
to create new jobs.
  I thank the gentleman for his important amendment in supporting the 
future of America's entrepreneurs.
  Mr. MASSA. I thank the gentleman from Missouri.
  Madam Chairman, I ask that my colleagues support this amendment.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, we are prepared to accept this amendment, 
and I urge its adoption and support.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from New York (Mr. Massa).
  The amendment was agreed to.


                  Amendment No. 11 Offered by Ms. Foxx

  The Acting CHAIR. It is now in order to consider amendment No. 11 
printed in part B of House Report 111-317.
  Ms. FOXX. Madam Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 11 offered by Ms. Foxx:
       Add at the end of the bill the following:

                          TITLE X--TERMINATION

     SEC. 1001. TERMINATION OF PROGRAMS.

       (a) In General.--Subject to subsection (b), each fiscal 
     year the Administrator of the Small Business Administration 
     may not carry out any program for which an authorization is 
     established or extended under this Act.
       (b) Effective Date.--Subsection (a) shall take effect with 
     respect to a program referred to in such subsection on the 
     earlier of the following:
       (1) The date that is 5 years after the date of enactment of 
     this Act.
       (2) The date on which the authorization under this Act for 
     such program expires.
       (c) Existing Obligations.--Subsection (a) does not affect 
     the ability of the Administrator to carry out 
     responsibilities with regard to loans, grants, or other 
     obligations made or in existence before an applicable 
     effective date under subsection (b).

  The Acting CHAIR. Pursuant to House Resolution 875, the gentlewoman 
from North Carolina (Ms. Foxx) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from North Carolina.
  Ms. FOXX. Madam Chair, my intentions were to offer an amendment today 
that would provide an opportunity to do what I think all of us on both 
sides of the aisle want to do, which is to have effective programs 
which help our citizens in this country. However, we've discovered that 
there are problems with the amendment as it has been drafted, and so it 
is my intention to withdraw the amendment at the end of my comments.
  Multiple reports from the Government Accountability Office found 
duplicative programs across the Federal Government. These programs 
included 342 economic development programs; 130 programs serving the 
disabled; 130 programs serving at-risk youth; 90 early childhood 
development programs; 75 programs funding international education, 
cultural, and training exchange activities; and 72 safe water programs.
  These are noble goals with good intentions, but they are no excuse 
for Congress to abrogate its responsibility to reexamine programs that 
may have become wasteful or duplicative since their inception.
  Just yesterday, there was an article in CongressDaily about a 
situation that should not exist:
  ``Influential Senators raised fresh concerns about the $7.2 billion 
broadband stimulus program during an oversight hearing Tuesday, 
complaining that it is divided between two Federal agencies when only 
one is necessary.''
  ```There shouldn't be two of you here. Only in the Federal Government 
would we have two people doing the same thing,' said Senator Claire 
McCaskill, Democrat of Missouri, in a blunt assessment of the 
situation, which she described as `nonsense.'''

                  [From Congress Daily, Oct. 28, 2009]

          Red Tape Could Hurt Broadband Program, Senators Warn

                            (By David Hatch)

       Referring to Rural Utilities Service Administrator Jonathan 
     Adelstein and NTIA Chief Larry Strickling, Senator Claire 
     McCaskill said, ``If I could, wave a magic wand I would morph 
     you into one person and combine your two agencies with the 
     snap of fingers.''
       ``I don't know why it was divided up the way it was, but 
     that's what happens with political power around here,'' 
     echoed Senate Commerce Chairman John (Jay) Rockefeller. He 
     further complained that some applicants well-positioned to 
     aid their communities might be dissuaded by the cumbersome 
     process for obtaining the stimulus funds.
       Their comments reflect concerns raised by companies and 
     other parties about the complexities of having requests for 
     loans and grants reviewed by two bureaucracies--and the risks 
     of ending up with loans even when grants are sought.
       After being inundated, with close to 2,200 requests seeking 
     nearly $28 billion, both agencies have fallen behind schedule 
     and plan to begin issuing awards in mid-December--a month 
     later than intended.
       Rockefeller and McCaskill were among the senators who 
     criticized criteria that could prevent some rural areas 
     within 50 miles of urban centers from being eligible for the 
     most generous grants.
       They urged the regulators to address the matter, prompting 
     Adelstein to assure them that ``everything is on the table'' 
     when it comes to making adjustments. He described Rural 
     Utilities Service as between a rock and a hard place because 
     it has been criticized for diverting too much assistance to 
     nonrural areas.
       Senate Commerce ranking member Kay Bailey Hutchison 
     reiterated her view that the bulk of the funding should help 
     regions that are unserved or ``substantially'' underserved.
       During his testimony, Mark Goldstein, director of physical 
     infrastructure issues at GAO, warned that both agencies lack 
     funding for oversight of the program beyond FY10.
       Adelstein and Strickling said they're doing everything they 
     can to maximize the impact

[[Page 26193]]

     of the grants and loans. ``I want to ensure you today that 
     these funds will be well-spent,'' Strickling said, noting 
     that there have been no turf battles.

  That is why I am offering this amendment which would explicitly 
sunset all programs contained in the bill at the end of their 
authorizations or within 5 years, whichever is first, while granting 
the administrator the authority to carry out responsibilities regarding 
all outstanding loans, grants, and other outstanding commitments before 
the authorization expiration.
  As a member of the Sunset Caucus and as a cosponsor of H.R. 393, I 
recognize the need for regular congressional review and oversight 
needed to restore accountability to the multitude of Federal programs 
that exist and that are created every day. The amendment I had planned 
to offer is part of a broader effort to reaffirm the continued 
relevance of Federal programs and to ensure they continue to operate as 
intended.
  With the current budget challenges facing the Federal Government and 
a $1.4 trillion deficit, the need for provisions that would sunset 
program authorizations is more pronounced now than ever. Congress 
constantly creates new programs with little to no thought of the amount 
of money that will be needed to finance what usually becomes their 
eternal life. This is a commonsense, prudent, and simple step that can 
be taken regularly to help keep us honest and to sunset authorizations 
which will necessitate evaluation.

                              {time}  1615

  If a program is worth continuing, its purpose and effectiveness 
should be dependable in the future. This gives committees an 
opportunity to reevaluate and retool their functioning to help restore 
accountability. I believe committee chairmen will wholeheartedly 
support sunsetting provisions, as their inclusion would more regularly 
work toward shaping policy under their purview.
  Madam Chairman, again, I have learned just prior to coming here that 
there is a problem with the language, but I also understand that there 
is a belief on the part of the chairwoman and the ranking member that 
this is something that should be done, and we will be able to work on 
that in the future.
  Madam Chairman, I ask unanimous consent to withdraw my amendment.
  The SPEAKER pro tempore. Without objection, the amendment is 
withdrawn.
  There was no objection.


                Amendment No. 12 Offered by Mr. Kissell

  The Acting CHAIR. It is now in order to consider amendment No. 12 
printed in part B of House Report 111-317.
  Mr. KISSELL. Madam Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 12 offered by Mr. Kissell:
       Page 32, after line 7, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 124. DEFERRED REPAYMENT FOR CERTAIN SMALL BUSINESS 
                   CONCERNS.

       Section 7(a)(7) of the Small Business Act (15 U.S.C. 
     636(a)(7)) is amended by adding at the end the following: 
     ``If a small business concern classified in sector 23 of the 
     North American Industry Classification System receives a loan 
     under this subsection after the date of the enactment of the 
     Small Business Financing and Investment Act of 2009, such 
     concern may defer repayment on such loan for a period of not 
     more than 12 months beginning on the date that such concern 
     receives the final disbursement of such loan.''.

  The SPEAKER pro tempore. Pursuant to House Resolution 875, the 
gentleman from North Carolina (Mr. Kissell) and a Member opposed each 
will control 5 minutes.
  The Chair recognizes the gentleman from North Carolina.
  Mr. KISSELL. Madam Chair, I yield myself such time as I may consume.
  Madam Chair, this amendment is very simple and is directed directly 
at the construction segment of our small business economy.
  Madam Chair, the Bureau of Labor Statistics tells us that since our 
economy has entered this downturn, we have lost nationwide almost 1.5 
million jobs. In my State of North Carolina, almost 20 percent of the 
jobs in construction have been lost during this time period. Clearly, 
the construction segment of our economy has suffered.
  Madam Chair, the SBA's 7(a) loans are the loans that are most 
commonly used by those small businesses engaged in construction. They 
are being used for many things. They can be used for day-to-day 
capital, for purchasing new equipment that is needed to do the job, 
construction itself, renovation or refinancing. Many things, many 
aspects of maintaining a business are used in these SBA 7(a) loans.
  The amendment that we offer is quite simple. Currently if a business 
takes out a loan, then payments are due back immediately. The amendment 
would offer that these payments be deferred for 1 year, that the small 
businesses engaged in construction have 1 year to start their payments 
back. This would help these businesses have just a little bit more help 
towards being successful.
  We oftentimes, Madam Chair, have relied upon construction to lead us 
out of recessions. This opportunity will help small businesses that are 
engaged in construction help lead us out of this recession.
  Madam Chair, I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, while not opposed to the amendment, I ask 
unanimous consent to claim the time in opposition.
  The Acting CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Madam Chair, virtually every sector of the economy has 
suffered at the hands of the downturn. The construction industry, 
however, has seen some of the most significant declines. According to a 
study by the Associated Equipment Distributors, two out of every 25 
jobs lost in the recession were construction jobs. Nationwide, the 
industry has shed 37 percent of its workforce. Those losses are larger 
than either the automobile or financial sectors. Clearly, we need to be 
addressing this issue.
  By providing better terms for 7(a) loans, this amendment will give 
small construction firms the flexibility to hire new workers. Allowing 
these businesses to defer repayment for up to 12 months also means they 
have greater capital for new investments. After all, equipment 
purchased, items such as cement mixers and bulldozers, are expensive. 
Most small firms rely on loans in order to buy these items.
  With the housing market recovering and the new transportation bill 
working its way through Congress, we should see new opportunities for 
small construction firms. Mr. Kissell's amendment gives the resources 
they need to take advantage of those opportunities, and I urge my 
colleagues to support it.
  I yield to the gentleman from Missouri for any comments that he might 
have.
  Mr. GRAVES. I thank the chairwoman for yielding.
  Madam Chair, I rise in support of the amendment of the gentleman from 
North Carolina. Everyone is aware that the construction industry is 
facing some significant economic difficulty. The amendment takes a 
sensible approach to authorizing new 7(a) loans for construction and to 
defer repayment for up to 1 year, enabling them to better survive the 
current economic conditions.
  I thank the gentleman for his unique solution to a very real problem.
  Ms. VELAZQUEZ. If the gentleman is prepared to yield back, we are 
prepared to accept the amendment.
  I yield back the balance of my time.
  Mr. KISSELL. Madam Chair, I would like to thank the chairman and her 
committee for their fine work here in helping us on this amendment, and 
I urge all my colleagues to support this.
  I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from North Carolina (Mr. Kissell).
  The amendment was agreed to.


                 Amendment No. 13 Offered by Mr. Peters

  The Acting CHAIR. It is now in order to consider amendment No. 13 
printed in part B of House Report 111-317.

[[Page 26194]]


  Mr. PETERS. Madam Chair, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 13 offered by Mr. Peters:
       Page 29, line 14, strike ``$50,000'' and insert the 
     following ``$50,000 (except as provided under subsection 
     (l))''.
       Page 29, after line 19, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 119. DELAYED REPAYMENT FOR SMALL BUSINESS CONCERNS IN 
                   AREAS WITH HIGH UNEMPLOYMENT.

       Section 506 of title V of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5) is 
     amended by adding at the end the following:
       ``(l) Small Business Concerns in Areas With High 
     Unemployment.--
       ``(1) Increase loan limits.--Notwithstanding subsection 
     (d), a loan made under this section to a small business 
     concern in what the Administrator determines to be an area 
     with high unemployment may not exceed $75,000.
       ``(2) Delayed repayment.--Notwithstanding subsection (g), 
     repayment for a loan made under this section after the date 
     of the enactment of the Small Business Financing and 
     Investment Act of 2009 to a small business concern described 
     in paragraph (1) shall not begin until 18 months after the 
     final disbursement of funds is made.''.
       Page 156, line 12, insert after ``of 1986'' the following: 
     ``, except that, without regard to such meaning, such term 
     includes an area that the Administrator determines to be an 
     area with high unemployment''.

  The Acting CHAIR. Pursuant to House Resolution 875, the gentleman 
from Michigan (Mr. Peters) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Michigan.
  Mr. PETERS. I yield myself such time as I may consume.
  Today we are considering important legislation that will provide 
borrowers, lenders and the government with a number of important tools 
to assist the survival and growth of small businesses. Small businesses 
are the prime engine of innovation, economic expansion and job 
creation, and supporting our small businesses should be the cornerstone 
of any plan for economic recovery. For areas of high unemployment, 
small businesses are particularly important, and the jobs they provide 
are particularly valuable.
  While the economy is beginning to show signs of improvement, there is 
no doubt that in some areas unemployment remains at an extreme high 
level. For example, the State of Michigan has the Nation's highest 
unemployment rate at 15.3 percent, and in the city of Pontiac, which I 
represent, the unemployment rate is a staggering 35.2 percent.
  My amendment would ensure that businesses that want to invest in high 
unemployment areas and create jobs can do so competitively at a time 
when innovation and investment is needed most by making high 
unemployment areas eligible for more expansive American Recovery 
Capital, ARC, loans and the New Market Venture Capital program.
  In order to assist these high unemployment areas, my amendment will 
increase the maximum ARC loan amount from $50,000 to $75,000 and defer 
repayment until 18 months after final disbursement of the loan is made. 
This would give struggling firms room to breathe and help avoid further 
layoffs and closures.
  My amendment would also give entrepreneurs better access to private 
capital by making eligibility for the New Market Venture Capital 
program include high unemployment areas. This would target investment 
and opportunity directly where it is needed most and encourage business 
growth in hard-hit areas like the city of Pontiac. These simple changes 
would ensure that hard-hit areas have the tools necessary to stop 
hemorrhaging jobs and to invest in new operations that will create 
jobs, bring new technologies to markets, and build a new foundation for 
Michigan's economy and the country as a whole.
  I urge my colleagues to support my amendment, and I would like to 
thank Representative Schrader for bringing forth this important 
legislation, as well as Chairwoman Velazquez and her staff for their 
help on the amendment.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, while not opposed to the amendment, I ask 
unanimous consent to claim the time in opposition.
  The Acting CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Certainly times are tough and many Americans are 
hurting because of the economic downturn. But, as they have done 
before, American entrepreneurs will lead us out of this downturn and 
begin rebuilding our economy. This amendment is about harnessing the 
job-creating potential that exists in communities that are suffering 
the worst of the downturn. It is about using the American 
entrepreneurial spirit to deliver hope to places that need it most.
  As part of the Recovery Act, we aimed to help small businesses with 
short-term, interest-free loans. So far, this program has funneled $115 
million to 3,500 businesses. With this amendment, we will make more of 
these loans available to businesses in economically distressed areas. 
By giving these businesses more time to start repayment, we will 
provide them a better chance to stay afloat and ultimately grow and 
create jobs.
  This is a good amendment. I thank the gentleman from Michigan for 
offering it. I urge its adoption.
  I now yield to the gentleman from Missouri for any comments that he 
may have.
  Mr. GRAVES. Madam Chair, I rise today in support of the amendment 
offered by the gentleman from Michigan. Certainly some areas in the 
country are suffering more significantly in the current economic 
climate than others. Allowing larger-size stabilization loans may help 
retain an economic base in areas hard-hit by the loss of manufacturing 
and real estate development jobs.
  I thank the gentleman for his contribution to the bill.
  Ms. VELAZQUEZ. Madam Chair, I yield 1 minute to the gentleman from 
Michigan (Mr. Schauer).
  Mr. SCHAUER. Madam Chair, I rise in strong support of the Peters 
amendment.
  The Small Business Administration has played a key role in the 
current economic crisis by helping businesses and manufacturers 
maintain access to credit, but we must do more.
  Michigan's unemployment numbers are unacceptably high. Hillsdale 
County in my district has an unemployment rate in excess of 17 percent. 
Local companies tell me every day that they are ready to invest and 
hire more employees, but they are having trouble getting the credit 
they need to help put Michigan and America back to work.
  Earlier this year, we passed the American Recovery and Reinvestment 
Act that created new programs for small businesses and manufacturers. 
These programs have helped. With just a $12,500 government-backed loan, 
Diane Brabon was able to create 10 new jobs at the Trusting Heart Home 
Health Services in Delta Township. Yet successful businesses are still 
starved for credit. With this amendment, the SBA will be able to 
guarantee loans that recognize the challenges small businesses are 
facing in high unemployment areas.
  I proudly support Mr. Peters' amendment and look forward to working 
to find new ways to encourage more lenders to participate in these 
important programs.
  Ms. VELAZQUEZ. Madam Chair, I yield 1 minute to the gentleman from 
Michigan (Mr. Kildee).
  Mr. KILDEE. Madam Chair, I rise today in strong support of the Peters 
amendment to H.R. 3854, the Small Business Financing and Investment 
Act. Capital is what allows small firms to grow their businesses, hire 
new employees and generate the economic activity that drives recovery. 
But ever since the near collapse of the financial industry, small 
business capital markets have been nearly frozen, making it more 
difficult for businesses to expand and hire workers. These problems are 
particularly pronounced in areas of high unemployment, which face 
greater barriers to economic recovery.

[[Page 26195]]

  The Peters amendment will make important changes to existing small 
business programs in high unemployment areas. Firms in those areas 
would qualify for an additional $25,000 in loans and an extra 6-month 
loan deferment. For areas like my hometown of Flint, Michigan, which is 
struggling with a nearly 30 percent unemployment rate, these changes 
are crucial. Small firms have long been the engine that drives economic 
recovery in our Nation, accounting for nearly two-thirds of all new 
jobs.
  I urge adoption of the amendment.

                              {time}  1630

  Ms. VELAZQUEZ. Madam Chair, if the gentleman from Michigan is 
prepared to yield back, we are prepared to accept the amendment.
  Mr. PETERS. Madam Chairman, I yield back the balance of my time.
  Ms. VELAZQUEZ. I urge adoption of the amendment, and I yield back the 
balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Michigan (Mr. Peters).
  The amendment was agreed to.


          Amendment No. 14 Offered by Mrs. Miller of Michigan

  The Acting CHAIR. It is now in order to consider amendment No. 14 
printed in part B of House Report 111-317.
  Mrs. MILLER of Michigan. Madam Chair, I rise as the designee of the 
gentlewoman from Florida (Ms. Ginny Brown-Waite) and I have an 
amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 14 offered by Mrs. Miller of Michigan:
       Page 22, line 5, add at the end the following: ``The 
     Administrator shall ensure that each individual in such group 
     with loan application evaluation and underwriting 
     responsibilities has at least 2 years experience with respect 
     to such responsibilities.''.

  The Acting CHAIR. Pursuant to House Resolution 875, the gentlewoman 
from Michigan (Mrs. Miller) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Michigan.
  Mrs. MILLER of Michigan. Madam Chair, let me start off with a simple 
premise: The American economy cannot recover without small business. As 
such, Congress has rightly taken steps to increase the guarantee amount 
at the Small Business Administration. But as many business owners can 
tell you, this has only had a modest effect. In fact, despite these 
thoughtful measures, the volume of SBA loan guarantees is still only a 
fraction of what it was last year.
  As my colleagues know, the SBA only makes loan guarantees--it does 
not make loans directly to small businesses. Therefore, if banks decide 
that even with 90 percent guaranteed, it is still not in their best 
interest to make a loan, then the small business is simply out of luck.
  One credit union president recently pointed out that, in many cases, 
banks won't seriously consider a small business loan if it is less than 
$500,000. The interest income simply isn't worth the trouble--even with 
the guarantee. In these cases, the viability of the business and the 
value of the guarantee doesn't mean anything.
  H.R. 3854 rightly introduces a new program--the Capital Backstop 
Program--that will authorize the SBA to make loans directly to small 
businesses as a last resort.
  While we are deeply concerned about the Federal Government acting as 
a bank, the fact of the matter is that Congress has spent $700 billion 
to resuscitate the lending system, $800 billion trying to stimulate the 
economy, and yet homeowners--and small businesses especially--still 
can't get the loans that they need. It is very important that Congress 
put standards in place to ensure that SBA direct loans are only made to 
viable businesses.
  This amendment establishes this same standard for individuals at the 
SBA who are directly engaged in loan application evaluation and 
underwriting. We can only imagine the bureaucratic nightmare that would 
ensue if Congress actually tried to come up with a laundry list of 
criteria for viable businesses. As any local banker can tell you, no 
two businesses are exactly the same--the people matter, the models 
matter, the market matters.
  This amendment ensures that individuals who are evaluating businesses 
have both the authority and the expertise to make the best decisions 
for the taxpayer.
  We want to thank the chairwoman and ranking member and all of their 
colleagues on the Small Business Committee for their efforts on this 
legislation. It is very important work.
  Madam Chair, I urge the adoption of this amendment.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, we are prepared to accept the amendment 
if the gentlelady from Michigan is prepared to yield back.
  Mrs. MILLER of Michigan. Madam Chair, I yield back the balance of my 
time.
  Ms. VELAZQUEZ. I urge adoption of the amendment, and I yield back the 
balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Michigan (Mrs. Miller).
  The amendment was agreed to.


          Amendment No. 15 Offered by Mrs. Miller of Michigan

  The Acting CHAIR. It is now in order to consider amendment No. 15 
printed in part B of House Report 111-317.
  Mrs. MILLER of Michigan. Madam Chair, I rise as the designee of the 
gentlewoman from Florida (Ms. Ginny Brown-Waite) and I have an 
amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 15 offered by Mrs. Miller of Michigan:
       Page 20, line 25, strike ``on a date if'' and insert the 
     following: ``on each date during the period beginning on the 
     date of enactment of this paragraph and ending on September 
     30, 2011, and on any other date after such period if''.

  The Acting CHAIR. Pursuant to House Resolution 875, the gentlewoman 
from Michigan (Mrs. Miller) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentlewoman from Michigan.
  Mrs. MILLER of Michigan. Madam Chair, this amendment makes a simple 
technical correction to the Capital Backstop Program, which we were 
just talking about.
  In short, this underlying bill wisely puts restrictions on when this 
program can and cannot operate. The bill states two things: First of 
all, that the National Bureau of Economic Research, the NBER, must have 
declared the United States to be officially in recession. Second, the 
SBA loan guarantee volume must be down 30 percent from the previous 
year. And if these two criteria are not met, then the program is shut 
down.
  As you know, the Federal Reserve recently stated that the recession 
is already likely over. The NBER is sure to follow suit soon. As well, 
because SBA loan volume is already down so substantially, the 
likelihood of another full 30 percent drop next year is very low.
  This amendment simply says that the program being created in this 
bill is authorized to begin operation immediately upon enactment and is 
authorized to continue through September 2011, even if the recession 
has been declared technically over.
  I would note personally, being from Michigan, whatever they are 
saying in the Nation, the recession is definitely not over in the State 
of Michigan.
  However, our concern, Madam Chair, is that if Congress is going to 
take the extraordinary step of authorizing the SBA to make loans 
directly to small businesses, then it ought to be making these loans 
now, when they are needed the most.
  After 2011, the restrictions that are in the underlying bill will 
resume. Frankly, Madam Chair, at that time we certainly hope that even 
stronger restrictions are in place.
  Many of our colleagues are skeptical of having the SBA make loans 
directly to small businesses. Nevertheless, taxpayers have spent nearly 
$2 trillion

[[Page 26196]]

trying to fix this situation. It hasn't worked.
  If we are going to take the step of creating this program, let us at 
least make sure that it is helping our constituents and the taxpayers 
and small businesses now, when they truly need it most.
  Madam Chair, I urge the adoption of this amendment.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, if the gentlelady from Michigan is 
prepared to yield back, we are prepared to accept the amendment.
  Mrs. MILLER of Michigan. Madam Chair, I yield back the balance of my 
time.
  Ms. VELAZQUEZ. I urge adoption of the amendment, and I yield back the 
balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentlewoman from Michigan (Mrs. Miller).
  The amendment was agreed to.


                  Amendment No. 16 Offered by Mr. Nye

  The Acting CHAIR. It is now in order to consider amendment No. 16 
printed in part B of House Report 111-317.
  Mr. NYE. Madam Chairman, I have an amendment at the desk.
  The Acting CHAIR. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Part B amendment No. 16 offered by Mr. Nye:
       Page 186, after line 24, insert the following (and 
     redesignate succeeding sections accordingly):

     SEC. 808. HOMEOWNERS IMPACTED BY TOXIC DRYWALL.

       Section 7(b) of the Small Business Act (15 U.S.C. 636(b)), 
     as amended by this Act, is further amended by inserting after 
     paragraph (11) the following:
       ``(12) Homeowners impacted by toxic drywall.--The 
     Administrator may make a loan under this subsection to any 
     homeowner if the primary residence of such homeowner has been 
     adversely impacted by the installation of toxic drywall 
     manufactured in China. A loan under this paragraph may be 
     used only for the repair or replacement of such toxic 
     drywall.''.

  The Acting CHAIR. Pursuant to House Resolution 875, the gentleman 
from Virginia (Mr. Nye) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Virginia.
  Mr. NYE. I yield myself such time as I may consume.
  Madam Chairman, I'd like to thank Chairwoman Velazquez, Ranking 
Member Graves, Mr. Schrader and all my other esteemed colleagues on the 
Small Business Committee for their work to bring about the Small 
Business Financing and Investment Act and bring it to the floor, and 
for including my bill, the Small Business Early Stage Investment Act, 
in this omnibus bill.
  Small businesses are the engine of our economy and they are key to 
our recovery. Any effort to create jobs must start with an investment 
in small businesses. But the financial crisis and the economic downturn 
have been hard on small businesses as the credit markets have dried up.
  When I meet with my Small Business Advisory Board back in Virginia's 
Second District, they tell me their number one concern is accessing the 
capital they need to support their business. It is now more important 
than ever to improve the flow of capital to our small businesses, 
particularly for the early stage research that will lead to new 
technologies--and the SBA programs outlined in this bill will do just 
that.
  I am also proud to bring to the floor an amendment--a very important 
amendment to the underlying bill--together with my friend from Florida 
(Mr. Buchanan) which addresses a serious problem facing homeowners 
across the United States--imported toxic drywall.
  In 30 States and the District of Columbia, thousands of homes have 
been reported to have been built with toxic foreign drywall, mainly 
from China. The drywall releases poisonous gases that can cause serious 
health problems and can make a home uninhabitable. The fumes even 
corrode metals--damaging electrical wiring, appliances, and piping 
systems.
  In my district, I have visited these homes and spoken with the 
families. Many of them have been forced to move in with friends or 
relatives; many others are now living in rental housing--paying for 
both the cost of a mortgage and the cost of rent--or, even worse, 
living in the home, unable to afford repairs.
  The CPSC and the EPA have recognized toxic drywall as a serious 
problem and they are conducting a detailed investigation. But many 
families simply cannot afford to wait for the test results and there is 
no guarantee anything will come of these efforts. We owe it to them to 
try every means possible to provide them relief.
  These homeowners are the victims of a calamity beyond their control--
just like any family whose home is damaged by a major disaster such as 
a hurricane or tornado--and they deserve the same assistance.
  This amendment allows these families to access low-interest disaster 
loans from the Small Business Administration to repair or replace toxic 
drywall in their homes. While it may take more time and legislation to 
ultimately eradicate this problem, we can take immediate action today 
for these struggling families.
  I urge my colleagues to join me and my colleague in passing this 
amendment to help these American families rebuild their homes and begin 
rebuilding their lives.
  With that, I reserve the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, while not opposed to the amendment, I ask 
unanimous consent to claim the time in opposition.
  The Acting CHAIR. Without objection, the gentlewoman from New York is 
recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. Madam Chair, I strongly support this amendment and now 
would like to yield 2 minutes to one of the cosponsors of this 
amendment, the gentleman from Florida (Mr. Buchanan).
  Mr. BUCHANAN. Thank you, Madam Chair. Thanks for your leadership. I'd 
also like to thank my colleague, Mr. Nye, for working with me in a 
bipartisan manner to address this issue that I believe is long overdue.
  Our amendment will extend SBA loans to homeowners who have residences 
that are suffering from toxic Chinese drywall. An estimated 36,000 
residents in my home State of Florida are believed to have this 
hazardous material.
  For most families, their house is their biggest investment. I have 
met with homeowners across my district who have seen their property 
values plummet and their health care concerns grow. The American Dream 
of home ownership has become a nightmare for these families.
  The real life story of one of my constituents, Jim Silverblatt, comes 
to mind. Jim bought a house in beautiful Venice, Florida, for $680,000 
in 2006. He retired from UPS as a supervisor and invested another 
$125,000 in his residence. He has over $800,000 in that house. However, 
due to the damage caused by the toxic drywall, Jim's home is now 
appraised at just $155,000, and is uninhabitable in the warm weather.
  Jim's story is all too common in Florida in general. Many of my 
constituents in our area that I have talked to, they have had to move 
out of their homes and they're renting another place. They're paying 
two mortgages at the same time. While this amendment doesn't fix 
everything, it represents much-needed progress for all these families. 
I urge passage.
  Mr. NYE. At this time I yield 1\1/2\ minutes to my colleague from 
Virginia (Mr. Wittman).
  Mr. WITTMAN. I rise in support of this amendment and I would like to 
thank my colleagues from Virginia and Florida for offering it. This 
amendment will offer homeowners impacted by toxic drywall an option to 
apply for Small Business Administration loans to be used for the repair 
or replacement of toxic drywall manufactured in China.
  Last week, I toured the homes of several constituents affected by the 
toxic drywall in the Hollymeade subdivision of Newport News and saw 
firsthand how toxic drywall has put the health and financial well-being 
of numerous families at risk.

[[Page 26197]]

  I extended an invitation to President Obama to tour these impacted 
homes during his visit to Hampton Roads this week and I urged him to 
put this issue at the top of the agenda for his meetings in China next 
month.
  Of particular concern is the significant military presence in Hampton 
Roads and the impact on the military families who own homes where toxic 
drywall is present. Many of these families are juggling the burdens of 
having a deployed spouse or a spouse preparing for deployment, and an 
additional financial burden such as a move out of an impacted home, 
foreclosures, or loss of insurance coverage would be devastating.
  I recently sent a letter to the chairman of the U.S. Consumer Product 
Safety Commission to urge the expeditious resolution of the 
commission's investigation into the scope and impact of toxic Chinese 
drywall.
  Homeowners across the Nation are waiting for the findings of the 
commission's investigation, which may determine their eligibility for 
State and Federal assistance, loan modification, insurance policy 
changes, tax deductions, and other programs.
  I urge my colleagues to support this amendment, which will provide 
impacted homeowners with an opportunity to pursue some relief through 
the SBA.
  Ms. VELAZQUEZ. Madam Chair, I yield 1\1/2\ minutes to the gentleman 
from Louisiana (Mr. Cao).

                              {time}  1645

  Mr. CAO. Thank you very much, Madam Chair, for yielding me time.
  I rise today in strong support of this amendment. Fifteen percent of 
all drywall contamination cases are in Louisiana. Just imagine, Madam 
Chair, that after Hurricane Katrina, many of these families had to 
spend all of their savings in order to repair their home, just to find 
out now that they replaced their drywall with Chinese contaminated 
drywall.
  I myself have repaired my home twice in the last 4 years, so I know 
of the inconvenience and the suffering that the people of Louisiana 
have to undergo in order to get this job done.
  With respect to myself, I was fortunate in that my damages were 
caused by the flooding of Katrina and Gustav. Therefore, my insurance 
company paid for the repairs in my home.
  But for many of these homeowners in Louisiana, their policy does not 
cover the problems with Chinese drywall. After spending all of their 
money repairing their homes because of Katrina, now they have no money 
whatsoever to spend in order to repair their homes due to the Chinese 
drywall.
  Therefore, I believe that this amendment is extremely important, and 
I urge that all of my colleagues vote for the passage of this 
amendment.
  Mr. NYE. Madam Chair, might I inquire as to how much time I have 
remaining?
  The Acting CHAIR. The gentleman from Virginia has 30 seconds 
remaining.
  Mr. NYE. I would like to ask unanimous consent to have an additional 
minute added to my time.
  The Acting CHAIR. Without objection, the gentleman from Virginia and 
the gentlewoman from New York each will control 1 additional minute.
  There was no objection.
  Mr. NYE. Madam Chair, I yield 1 minute to my colleague from Florida 
(Mr. Klein).
  Mr. KLEIN of Florida. I thank the gentleman. I also thank Chairwoman 
Velazquez, Mr. Nye, and Mr. Buchanan.
  Madam Chair, I rise in support of this amendment.
  This is a very important issue for obviously Florida, Louisiana and 
other States--Virginia--that have been impacted. Chinese drywall has 
affected many homeowners.
  The defective material that has been described contains a sulfur 
compound that causes corrosion in the walls, faults to plumbing and 
electrical systems and has led to severe health problems, forcing 
residents to spend thousands and sometimes even hundreds of thousands 
of dollars to move or make repairs.
  These homeowners had no reason to suspect that their homes were built 
with defective drywall, and they need our help. Most of these problems 
are not covered under standard homeowners' insurance. In some cases the 
builders that built the buildings are insolvent or gone. Families are 
now struggling to fix these problems or they risk losing insurance 
coverage and potentially their homes.
  A few days ago a number of us had a chance to meet with HUD Secretary 
Shaun Donovan in south Florida so that we could all tour some of these 
devastated homes. While it is imperative that we develop a 
comprehensive solution, it is also vital that homeowners have access to 
small business loans.
  Ms. VELAZQUEZ. Madam Chair, I yield 1 minute to the gentleman from 
Florida (Mr. Mario Diaz-Balart).
  Mr. MARIO DIAZ-BALART of Florida. I thank the distinguished 
gentlewoman and I want to thank Congressman Buchanan for bringing this 
up.
  Madam Chair, as you have heard before, this is a nightmare. This 
Chinese drywall is a nightmare. These people can't live in their homes; 
they can't sell their homes; they can't rent their homes. There are 
potential health hazards while they are there. This amendment would 
really provide immediate assistance to a number of homeowners to allow 
them to repair their homes.
  Again, Congress has to do everything we can to help these individuals 
who are stuck in this horrible nightmare situation. This is a very, 
very good, commonsense amendment. I encourage this Congress to adopt 
this amendment.
  Ms. VELAZQUEZ. Madam Chair, if the gentleman from Virginia is 
prepared to yield back, we are prepared to accept the amendment.
  Mr. NYE. Madam Chair, I yield back the balance of my time.
  Ms. VELAZQUEZ. Madam Chair, I urge adoption of this very important 
amendment, and I yield back the balance of my time.
  The Acting CHAIR. The question is on the amendment offered by the 
gentleman from Virginia (Mr. Nye).
  The amendment was agreed to.


                  Amendment No. 5 Offered by Mr. Flake

  The Acting CHAIR. Pursuant to clause 6 of rule XVIII, proceedings 
will now resume on the amendment printed in part B of House Report 111-
317 on which further proceedings were postponed.
  The unfinished business is the demand for a recorded vote on the 
amendment offered by the gentleman from Arizona (Mr. Flake) on which 
further proceedings were postponed and on which the ayes prevailed by 
voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIR. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 370, 
noes 55, not voting 13, as follows:

                             [Roll No. 828]

                               AYES--370

     Abercrombie
     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Alexander
     Altmire
     Andrews
     Arcuri
     Austria
     Baca
     Bachmann
     Bachus
     Baird
     Barrow
     Bartlett
     Barton (TX)
     Bean
     Becerra
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blackburn
     Blumenauer
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Bordallo
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (TX)
     Braley (IA)
     Bright
     Broun (GA)
     Brown (SC)
     Buchanan
     Burgess
     Burton (IN)
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Capps
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Carter
     Cassidy
     Castle
     Castor (FL)
     Chaffetz
     Chandler
     Childers
     Chu
     Clarke
     Clay
     Cleaver
     Coble
     Coffman (CO)
     Cohen
     Cole
     Connolly (VA)
     Cooper
     Costa
     Courtney
     Crenshaw
     Cuellar
     Culberson
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (KY)
     Davis (TN)
     Deal (GA)
     DeFazio
     DeGette
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Dreier
     Driehaus
     Duncan
     Edwards (TX)
     Ehlers
     Ellsworth
     Emerson

[[Page 26198]]


     Engel
     Eshoo
     Etheridge
     Faleomavaega
     Fallin
     Farr
     Fattah
     Flake
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Giffords
     Gingrey (GA)
     Gohmert
     Gonzalez
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Green, Al
     Green, Gene
     Griffith
     Guthrie
     Gutierrez
     Hall (NY)
     Hall (TX)
     Halvorson
     Hare
     Harman
     Harper
     Hastings (WA)
     Heinrich
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinojosa
     Hirono
     Hodes
     Hoekstra
     Holt
     Honda
     Hoyer
     Hunter
     Inglis
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson-Lee (TX)
     Jenkins
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Jordan (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kilroy
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Lamborn
     Lance
     Langevin
     Larsen (WA)
     Latham
     LaTourette
     Latta
     Lee (NY)
     Levin
     Lewis (CA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lummis
     Lungren, Daniel E.
     Lynch
     Mack
     Maffei
     Maloney
     Manzullo
     Marchant
     Markey (CO)
     Markey (MA)
     Marshall
     Massa
     Matheson
     McCarthy (CA)
     McCarthy (NY)
     McCaul
     McClintock
     McCollum
     McCotter
     McGovern
     McHenry
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moran (KS)
     Murphy (CT)
     Murphy (NY)
     Myrick
     Napolitano
     Neugebauer
     Norton
     Nye
     Oberstar
     Obey
     Olson
     Olver
     Ortiz
     Pallone
     Pastor (AZ)
     Paulsen
     Pence
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pierluisi
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Price (NC)
     Putnam
     Quigley
     Radanovich
     Rehberg
     Reichert
     Richardson
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Sablan
     Salazar
     Sanchez, Linda T.
     Sarbanes
     Scalise
     Schauer
     Schiff
     Schmidt
     Schock
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Sessions
     Sestak
     Shadegg
     Shimkus
     Shuler
     Shuster
     Simpson
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Souder
     Space
     Speier
     Spratt
     Stearns
     Stupak
     Sullivan
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Titus
     Towns
     Tsongas
     Turner
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Wu
     Yarmuth
     Young (FL)

                                NOES--55

     Baldwin
     Berkley
     Brady (PA)
     Brown, Corrine
     Butterfield
     Christensen
     Clyburn
     Conyers
     Costello
     Delahunt
     Doyle
     Edwards (MD)
     Ellison
     Filner
     Frank (MA)
     Fudge
     Grayson
     Grijalva
     Hastings (FL)
     Hinchey
     Holden
     Kildee
     Kilpatrick (MI)
     Kucinich
     Larson (CT)
     Lee (CA)
     Lewis (GA)
     Matsui
     McDermott
     Meek (FL)
     Meeks (NY)
     Miller, George
     Moore (WI)
     Moran (VA)
     Murtha
     Nadler (NY)
     Neal (MA)
     Pascrell
     Paul
     Rahall
     Rangel
     Reyes
     Sanchez, Loretta
     Schakowsky
     Serrano
     Shea-Porter
     Sherman
     Sires
     Stark
     Thompson (MS)
     Tonko
     Wasserman Schultz
     Wexler
     Woolsey
     Young (AK)

                             NOT VOTING--13

     Barrett (SC)
     Berman
     Bishop (UT)
     Brown-Waite, Ginny
     Buyer
     Capuano
     Conaway
     Crowley
     Linder
     Murphy, Patrick
     Murphy, Tim
     Nunes
     Payne

                              {time}  1718

  Ms. BERKLEY, Messrs. BUTTERFIELD, REYES, RANGEL, LARSON of 
Connecticut, NADLER of New York, SHERMAN, MORAN of Virginia, MEEKS of 
New York, McDERMOTT, and Ms. WASSERMAN SCHULTZ changed their vote from 
``aye'' to ``no.''
  Messrs. INSLEE, SCHAUER, GONZALEZ, KLEIN of Florida, WAXMAN, 
RODRIGUEZ, BOREN, Ms. LINDA T. SANCHEZ of California, Mr. COHEN, Mrs. 
MALONEY, Mr. CARNEY, Ms. EDDIE BERNICE JOHNSON of Texas, Ms. ROYBAL-
ALLARD, Messrs. TURNER, HALL of New York, BACA, Mrs. EMERSON, Ms. 
DeGETTE, Messrs. STUPAK, BURGESS, HARE, HINOJOSA, McINTYRE, Ms. 
McCOLLUM, and Ms. CLARKE changed their vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.
  The Acting CHAIR. There being no further amendments, under the rule 
the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Ms. 
DeGette) having assumed the chair, Ms. Edwards of Maryland, Acting 
Chair of the Committee of the Whole House on the state of the Union, 
reported that that Committee, having had under consideration the bill 
(H.R. 3854) to amend the Small Business Act and the Small Business 
Investment Act of 1958 to improve programs providing access to capital 
under such Acts, and for other purposes, pursuant to House Resolution 
875, she reported the bill, as amended pursuant to that resolution, 
back to the House with sundry further amendments adopted by the 
Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Pursuant to House Resolution 875, the question on adoption of the 
further amendments will be put en gros.
  The question is on the amendments.
  The amendments were agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


                           Motion to Recommit

  Mr. CANTOR. Madam Speaker, I have a motion to recommit at the desk.
  The SPEAKER pro tempore. Is the gentleman opposed to the bill?
  Mr. CANTOR. In its current form, I am.
  he SPEAKER pro tempore. The Clerk will report the motion to recommit.
  The Clerk read as follows:

       Mr. Cantor moves to recommit the bill H.R. 3854 to the 
     Committee on Small Business with instructions to report the 
     same back to the House forthwith with the following 
     amendment:
       Add at the end of the bill the following:

            TITLE X--STUDY ON ADDITIONAL CREDIT RISK FACTORS

     SEC. 1001. STUDY ON ADDITIONAL CREDIT RISK FACTORS.

       (a) In General.--With respect to loans made under programs 
     established or amended under this Act, the Administrator of 
     the Small Business Administration shall conduct a study on 
     whether the failure of such loans to achieve one or more of 
     the public policy goals specified in subsection (b) 
     negatively impacts the ability of businesses receiving such 
     loans to make timely repayment of such loans.
       (b) Public Policy Goals.--The public policy goals referred 
     to in subsection (a) are the provision of adequate access to 
     capital to assist small business concerns with one or more of 
     the following:
       (1) Offsetting the costs to such concerns resulting from 
     the imposition of a surtax on the income of small business 
     owners.
       (2) Offsetting the costs to such concerns resulting from 
     the enactment of a requirement that such concerns offer 
     health care of a minimum acceptable coverage level.
       (3) Offsetting the costs to such concerns resulting from an 
     increase in the marginal tax rates of small business owners.
       (4) Offsetting the reduction in capital available for such 
     concerns resulting from an increase in the tax on capital 
     gains.
       (5) Offsetting the reduction in capital available for such 
     concerns resulting from an increase in the taxes on carried 
     interest.
       (6) Offsetting the increased energy costs for such concerns 
     resulting from the enactment of a cap on carbon dioxide 
     emissions.
       (7) Offsetting the increased costs to such concerns 
     resulting from a change in Federal law that allows unions to 
     be organized through a card check process.
       (8) Offsetting the reduction in capital available for such 
     concerns resulting from new regulations on financial 
     products.
       (9) Offsetting the increased costs to such concerns 
     resulting from the imposition of net neutrality rules on the 
     Internet.
       (c) Use of Study.--Not later than 180 days after the date 
     of the enactment of this Act, the Administrator of the Small 
     Business Administration shall submit to Congress a report on 
     the results of the study conducted under subsection (a) and 
     shall use such results to evaluate and adjust, as 
     appropriate, the potential credit risk to the Government 
     through the provision of loans under programs established or 
     amended under this Act.

  The SPEAKER pro tempore. The gentleman from Virginia is recognized 
for 5 minutes.

[[Page 26199]]


  Mr. CANTOR. Madam Speaker, providing about 70 percent of U.S. jobs, 
small businesses are the lifeblood of our economy. When they struggle, 
when they contract, when they fail to obtain credit and put capital to 
work, America struggles. And right now our small businesses are 
struggling like never before.
  With such an ominous backdrop, it is only logical that we do 
everything in our power to strengthen our small businesses and make it 
easier for them to create jobs and put people back to work. But as 
small business owners across this country have told us for months now, 
Washington is doing the opposite. The wave of newly proposed tax 
increases, health care mandates, and financial and energy regulations 
are adding fresh gasoline to the fire. They have created a pervasive 
state of fear about the future cost of doing business that is 
enveloping reluctant job creators.
  Madam Speaker, if the economy is going to be resurgent, small 
business owners will have to provide the spark. I know many of us have 
met with our small business owners over the last several months. I 
have. I have conducted several small business forums in my district. 
One of those, in Richmond, I heard the message loud and clear. Small 
businesses want to expand. They want to hire more workers. They want to 
invest. But they can barely afford to keep the lights on right now.
  The message to me, Madam Speaker, was very clear. Of all times, now 
is the wrong one for Washington to go and slap more taxes and 
regulations on us. These small businesses asked me: Why is there such a 
huge disconnect between what we in the small business community need 
and what our government thinks we need? Why does Washington spend so 
extravagantly and fund this spree by squeezing the very people who can 
create and provide jobs?
  The point was this: It was that the misguided policies being brought 
forward either siphon capital away from small businesses or cause them 
to hoard capital out of a grave concern. Talk of card check, surtaxes, 
marginal tax hikes, minimum health coverage mandates, cap-and-trade, et 
cetera, all of this adds new and unnecessary layers of concern. This 
concern will harm small business employment, and has, and the number of 
business establishments and the types of such establishments, such as 
sole proprietorships, corporations, and partnerships.
  Madam Speaker, we will see repercussions in the amount of capital 
investment small businesses attract; in the number of business 
formations and failures; and the amount of sales and new orders and 
investment in plant and equipment because of the very actions being 
proposed in this House and throughout Washington.
  The bill before us today proposes to modify and expand a variety of 
SBA loan programs. The SBA plays an important part in helping America's 
small businesses. But let us be clear, Madam Speaker, the vast majority 
of small businesses do not participate in SBA programs. They rely on 
community banks, investment capital, and other forms of credit to start 
and expand their business. In fact, the Discovery Financial Services 
small business survey recently found that 90 percent of small 
businesses report that they have never even applied for an SBA loan. 
Reports from banks confirm that most small business credit is supplied 
outside of the SBA. In 2007--the most recent data--banks reported 
through the CRA that they originated or purchased $329 billion in loans 
for small businesses. By comparison, Madam Speaker, the SBA averages 
between $20 billion and $30 billion in lending a year.
  Small businesses, whether they use SBA or other sources of financing, 
will all be impacted by massive tax hikes, regulations, and mandates 
being proposed currently by the Democratic majority.
  Madam Speaker, the bottom line is this. The resulting loans being 
called for under this bill by the Small Business Administration will 
not even come close to offsetting the cost to small businesses caused 
by the concerns businesses have over the majority's agenda in this 
House. So, Madam Speaker, I suggest this. Abandon your proposals to 
impose record-high taxes. Abandon the proposals for underfunded 
mandates on our businesses and costly regulations.

                              {time}  1730

  Provide our small business job creators with the certainty that 
Washington isn't going to be saddling them with new penalties, with new 
taxes and with new high costs. We take a first step towards that goal 
today, Madam Speaker, by adopting this motion, and I urge the House to 
do so.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. Madam Speaker, while not opposed to the motion, I ask 
unanimous consent to claim the time in opposition.
  The SPEAKER pro tempore. Without objection, the gentlewoman from New 
York is recognized for 5 minutes.
  There was no objection.
  Ms. VELAZQUEZ. While I am not opposed to the motion, I do want to 
make some observations. While the gentleman is interested in studying 
the problems, we are interested in real solutions, and the bill under 
consideration does that. This bill provides $44 billion in capital for 
our small businesses, helping address the number one issue facing small 
firms right now. This bill will create 1.3 million jobs. Initiatives in 
this legislation will be specifically targeted to veterans and 
businesses located in rural communities. This legislation is supported 
by over 50 business organizations, representing small businesses in the 
health care, financial services, agriculture and technology industries.
  What I would like to see the gentleman add to the study is how small 
businesses have benefited from increased expensing limits for 
purchasing equipment, extended bonus depreciation, reduced capital 
gains rates on small business stock, and allowing businesses to carry 
back 5 years of losses. Let's add that to the study.
  It is interesting to see how the gentleman would like to study things 
that haven't happened, like offsetting the reduction in capital 
available for such concerns resulting from an increase in tax on 
capital gains. Are we going to study things that haven't happened? Does 
the gentleman have a crystal ball? Because if he does, I would like for 
him to tell me who is going to win the World Series. This is a motion 
that does nothing to provide loans to small businesses or create jobs. 
But if the gentleman wants to do a study, so be it.
  I yield back the balance of my time.
  The SPEAKER pro tempore. Without objection, the previous question is 
ordered on the motion to recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mr. CANTOR. Madam Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 and clause 9 of rule 
XX, this 15-minute vote on the motion to recommit will be followed by 
5-minute votes on passage of H.R. 3854, if ordered, and the motion to 
suspend the rules and agree to House Resolution 729.
  The vote was taken by electronic device, and there were--ayes 272, 
noes 149, not voting 11, as follows:

                             [Roll No. 829]

                               AYES--272

     Ackerman
     Aderholt
     Adler (NJ)
     Akin
     Alexander
     Altmire
     Arcuri
     Austria
     Bachmann
     Bachus
     Baird
     Barrow
     Bartlett
     Barton (TX)
     Berkley
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (TX)
     Bright
     Broun (GA)
     Brown (SC)
     Buchanan
     Burgess
     Burton (IN)
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Cardoza
     Carnahan
     Carney
     Carter
     Cassidy
     Castle
     Chaffetz
     Chandler
     Childers
     Cleaver
     Coble
     Coffman (CO)
     Cole
     Cooper
     Costa
     Crenshaw
     Cuellar
     Culberson
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (KY)
     Davis (TN)
     Deal (GA)
     DeGette

[[Page 26200]]


     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Donnelly (IN)
     Dreier
     Duncan
     Ehlers
     Ellsworth
     Emerson
     Etheridge
     Fallin
     Flake
     Fleming
     Forbes
     Fortenberry
     Foster
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Giffords
     Gingrey (GA)
     Gohmert
     Goodlatte
     Gordon (TN)
     Granger
     Graves
     Griffith
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heinrich
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hoekstra
     Hunter
     Inglis
     Israel
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jones
     Jordan (OH)
     Kilroy
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     Lipinski
     LoBiondo
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lummis
     Lungren, Daniel E.
     Lynch
     Mack
     Maffei
     Maloney
     Manzullo
     Marchant
     Markey (CO)
     Marshall
     Massa
     Matheson
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Minnick
     Mitchell
     Moore (KS)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Myrick
     Neugebauer
     Nye
     Olson
     Paul
     Paulsen
     Pence
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Richardson
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Royce
     Ruppersberger
     Rush
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Schrader
     Scott (VA)
     Sensenbrenner
     Sessions
     Shadegg
     Shea-Porter
     Shimkus
     Shuler
     Shuster
     Simpson
     Sires
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Snyder
     Souder
     Space
     Spratt
     Stearns
     Sullivan
     Tanner
     Taylor
     Teague
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Titus
     Tonko
     Turner
     Upton
     Van Hollen
     Velazquez
     Walden
     Wamp
     Weiner
     Westmoreland
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Wu
     Young (AK)
     Young (FL)

                               NOES--149

     Abercrombie
     Andrews
     Baca
     Baldwin
     Bean
     Becerra
     Berry
     Bishop (NY)
     Blumenauer
     Boccieri
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Carson (IN)
     Castor (FL)
     Chu
     Clarke
     Clay
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Costello
     Courtney
     Davis (CA)
     Davis (IL)
     DeFazio
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Doyle
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ellison
     Engel
     Eshoo
     Farr
     Fattah
     Filner
     Frank (MA)
     Fudge
     Gonzalez
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Jackson (IL)
     Jackson-Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kratovil
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Loebsack
     Lofgren, Zoe
     Markey (MA)
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     Meek (FL)
     Meeks (NY)
     Miller, George
     Mollohan
     Moore (WI)
     Murtha
     Nadler (NY)
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor (AZ)
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Roybal-Allard
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schwartz
     Scott (GA)
     Serrano
     Sestak
     Sherman
     Slaughter
     Smith (WA)
     Speier
     Stark
     Stupak
     Sutton
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Tsongas
     Visclosky
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Welch
     Wexler
     Woolsey
     Yarmuth

                             NOT VOTING--11

     Barrett (SC)
     Berman
     Brown-Waite, Ginny
     Buyer
     Capuano
     Conaway
     Crowley
     Murphy, Patrick
     Murphy, Tim
     Nunes
     Payne


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). There are 2 minutes 
remaining.

                              {time}  1756

  Messrs. DELAHUNT, NEAL of Massachusetts, COSTELLO, Ms. HARMAN, 
Messrs. FARR, MOLLOHAN, BOCCIERI, REYES, SESTAK, SHERMAN, VISCLOSKY, 
BACA, ORTIZ, SALAZAR, Mrs. HALVORSON, Messrs. GENE GREEN of Texas, 
SCHAUER, Mrs. DAVIS of California, Messrs. SCOTT of Georgia, GONZALEZ, 
Mrs. McCARTHY of New York, Messrs. ENGEL, EDWARDS of Texas, DICKS, 
MEEKS of New York, BISHOP of New York, KRATOVIL, and DRIEHAUS changed 
their vote from ``aye'' to ``no.''
  Mr. GORDON of Tennessee changed his vote from ``no'' to ``aye.''
  So the motion to recommit was agreed to.
  The result of the vote was announced as above recorded.
  Ms. VELAZQUEZ. Madam Speaker, pursuant to the instructions of the 
House in the motion to recommit, I report the bill, H.R. 3854, back to 
the House with an amendment.
  The SPEAKER pro tempore. The Clerk will report the amendment.
  The Clerk read as follows:

       Amendment offered by Ms. Velazquez:
       Add at the end of the bill the following:

            TITLE X--STUDY ON ADDITIONAL CREDIT RISK FACTORS

     SEC. 1001. STUDY ON ADDITIONAL CREDIT RISK FACTORS.

       (a) In General.--With respect to loans made under programs 
     established or amended under this Act, the Administrator of 
     the Small Business Administration shall conduct a study on 
     whether the failure of such loans to achieve one or more of 
     the public policy goals specified in subsection (b) 
     negatively impacts the ability of businesses receiving such 
     loans to make timely repayment of such loans.
       (b) Public Policy Goals.--The public policy goals referred 
     to in subsection (a) are the provision of adequate access to 
     capital to assist small business concerns with one or more of 
     the following:
       (1) Offsetting the costs to such concerns resulting from 
     the imposition of a surtax on the income of small business 
     owners.
       (2) Offsetting the costs to such concerns resulting from 
     the enactment of a requirement that such concerns offer 
     health care of a minimum acceptable coverage level.
       (3) Offsetting the costs to such concerns resulting from an 
     increase in the marginal tax rates of small business owners.
       (4) Offsetting the reduction in capital available for such 
     concerns resulting from an increase in the tax on capital 
     gains.
       (5) Offsetting the reduction in capital available for such 
     concerns resulting from an increase in the taxes on carried 
     interest.
       (6) Offsetting the increased energy costs for such concerns 
     resulting from the enactment of a cap on carbon dioxide 
     emissions.
       (7) Offsetting the increased costs to such concerns 
     resulting from a change in Federal law that allows unions to 
     be organized through a card check process.
       (8) Offsetting the reduction in capital available for such 
     concerns resulting from new regulations on financial 
     products.
       (9) Offsetting the increased costs to such concerns 
     resulting from the imposition of net neutrality rules on the 
     Internet.
       (c) Use of Study.--Not later than 180 days after the date 
     of the enactment of this Act, the Administrator of the Small 
     Business Administration shall submit to Congress a report on 
     the results of the study conducted under subsection (a) and 
     shall use such results to evaluate and adjust, as 
     appropriate, the potential credit risk to the Government 
     through the provision of loans under programs established or 
     amended under this Act.

  Ms. VELAZQUEZ (during the reading). Madam Speaker, I ask unanimous 
consent to dispense with the reading.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from New York?
  There was no objection.
  The SPEAKER pro tempore. The question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Ms. VELAZQUEZ. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--yeas 389, 
nays 32, not voting 11, as follows:

                             [Roll No. 830]

                               YEAS--389

     Abercrombie
     Ackerman
     Aderholt
     Adler (NJ)
     Alexander
     Altmire
     Andrews
     Arcuri
     Austria

[[Page 26201]]


     Baca
     Bachmann
     Bachus
     Baird
     Baldwin
     Barrow
     Bartlett
     Barton (TX)
     Bean
     Becerra
     Berkley
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blackburn
     Blumenauer
     Blunt
     Boccieri
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boren
     Boswell
     Boucher
     Boustany
     Boyd
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Bright
     Brown (SC)
     Brown, Corrine
     Buchanan
     Butterfield
     Calvert
     Camp
     Cantor
     Cao
     Capito
     Capps
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Cassidy
     Castle
     Castor (FL)
     Chaffetz
     Chandler
     Childers
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Coffman (CO)
     Cohen
     Cole
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Crenshaw
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (KY)
     Davis (TN)
     Deal (GA)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Dreier
     Driehaus
     Edwards (MD)
     Edwards (TX)
     Ehlers
     Ellison
     Ellsworth
     Emerson
     Engel
     Eshoo
     Etheridge
     Fallin
     Farr
     Fattah
     Filner
     Fleming
     Forbes
     Fortenberry
     Foster
     Frank (MA)
     Frelinghuysen
     Fudge
     Gallegly
     Gerlach
     Giffords
     Gingrey (GA)
     Gohmert
     Gonzalez
     Goodlatte
     Gordon (TN)
     Graves
     Grayson
     Green, Al
     Green, Gene
     Griffith
     Grijalva
     Guthrie
     Gutierrez
     Hall (NY)
     Hall (TX)
     Halvorson
     Hare
     Harman
     Harper
     Hastings (FL)
     Hastings (WA)
     Heinrich
     Heller
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Hoekstra
     Holden
     Holt
     Honda
     Hoyer
     Hunter
     Inglis
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jenkins
     Johnson (GA)
     Johnson (IL)
     Johnson, E. B.
     Johnson, Sam
     Jones
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     King (IA)
     King (NY)
     Kirk
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kline (MN)
     Kosmas
     Kratovil
     Kucinich
     Lance
     Langevin
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Latta
     Lee (CA)
     Lee (NY)
     Levin
     Lewis (GA)
     Linder
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Luetkemeyer
     Lujan
     Lungren, Daniel E.
     Lynch
     Mack
     Maffei
     Maloney
     Manzullo
     Marchant
     Markey (CO)
     Markey (MA)
     Marshall
     Massa
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul
     McCollum
     McCotter
     McDermott
     McGovern
     McIntyre
     McKeon
     McMahon
     McMorris Rodgers
     McNerney
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Minnick
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murtha
     Myrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Oberstar
     Obey
     Olson
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor (AZ)
     Paulsen
     Pence
     Perlmutter
     Perriello
     Peters
     Peterson
     Petri
     Pingree (ME)
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Pomeroy
     Posey
     Price (NC)
     Putnam
     Quigley
     Radanovich
     Rahall
     Rangel
     Rehberg
     Reichert
     Reyes
     Richardson
     Rodriguez
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Scalise
     Schakowsky
     Schauer
     Schiff
     Schmidt
     Schock
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sessions
     Sestak
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Shuster
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Souder
     Space
     Speier
     Spratt
     Stark
     Stearns
     Stupak
     Sullivan
     Sutton
     Tanner
     Taylor
     Teague
     Terry
     Thompson (CA)
     Thompson (MS)
     Thompson (PA)
     Tiahrt
     Tiberi
     Tierney
     Titus
     Tonko
     Towns
     Tsongas
     Turner
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden
     Walz
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Westmoreland
     Wexler
     Whitfield
     Wilson (OH)
     Wilson (SC)
     Wittman
     Wolf
     Woolsey
     Wu
     Yarmuth
     Young (AK)
     Young (FL)

                                NAYS--32

     Akin
     Bishop (UT)
     Broun (GA)
     Burgess
     Burton (IN)
     Campbell
     Carter
     Culberson
     Duncan
     Flake
     Foxx
     Franks (AZ)
     Garrett (NJ)
     Granger
     Hensarling
     Issa
     Jordan (OH)
     Kingston
     Lamborn
     Lewis (CA)
     Lummis
     McClintock
     McHenry
     Miller (FL)
     Neugebauer
     Paul
     Price (GA)
     Royce
     Ryan (WI)
     Sensenbrenner
     Shadegg
     Thornberry

                             NOT VOTING--11

     Barrett (SC)
     Berman
     Brown-Waite, Ginny
     Buyer
     Capuano
     Conaway
     Crowley
     Murphy, Patrick
     Murphy, Tim
     Nunes
     Payne


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Two minutes remain in this 
vote.

                              {time}  1804

  Messrs. KINGSTON, BURGESS and CULBERSON and Ms. FOXX changed their 
vote from ``yea'' to ``nay.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________