[Congressional Record (Bound Edition), Volume 156 (2010), Part 12]
[House]
[Pages 16380-16418]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1330
                    SMALL BUSINESS JOBS ACT OF 2010

  Ms. BEAN. Madam Speaker, pursuant to House Resolution 1640 and as the 
designee of the chairman of the Committee on Financial Services, I call 
up the bill (H.R. 5297) to create the Small Business Lending Fund 
Program to direct the Secretary of the Treasury to make capital 
investments in eligible institutions in order to increase the 
availability of credit for small businesses, to amend the Internal 
Revenue Code of 1986 to provide tax incentives for small business job 
creation, and for other purposes, with the Senate amendment thereto, 
and I have a motion at the desk.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. The Clerk will designate the Senate 
amendment.
  The text of the Senate amendment is as follows:

       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

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

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this Act is as follows:

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

                       TITLE I--SMALL BUSINESSES

Sec. 1001. Definitions.

              Subtitle A--Small Business Access to Credit

Sec. 1101. Short title.

         PART I--Next Steps for Main Street Credit Availability

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

               PART II--Small Business Access to Capital

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

                        PART III--Other Matters

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

             Subtitle B--Small Business Trade and Exporting

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

                 Subtitle C--Small Business Contracting

                       PART I--Contract Bundling

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

                   PART II--Subcontracting Integrity

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

                     PART III--Acquisition Process

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

           PART IV--Small Business Size and Status Integrity

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

    Subtitle D--Small Business Management and Counseling Assistance

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

                 Subtitle E--Disaster Loan Improvement

Sec. 1501. Aquaculture business disaster assistance.

              Subtitle F--Small Business Regulatory Relief

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

                 Subtitle G--Appropriations Provisions

Sec. 1701. Salaries and expenses.
Sec. 1702. Business loans program account.
Sec. 1703. Community Development Financial Institutions Fund program 
              account.
Sec. 1704. Small business loan guarantee enhancement extensions.

                        TITLE II--TAX PROVISIONS

Sec. 2001. Short title.

                   Subtitle A--Small Business Relief

                  PART I--Providing Access to Capital

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

                    PART II--Encouraging Investment

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain 
              real property treated as section 179 property.
Sec. 2022. Additional first-year depreciation for 50 percent of the 
              basis of certain qualified property.
Sec. 2023. Special rule for long-term contract accounting.

                  PART III--Promoting Entrepreneurship

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

               PART IV--Promoting Small Business Fairness

Sec. 2041. Limitation on penalty for failure to disclose reportable 
              transactions based on resulting tax benefits.
Sec. 2042. Deduction for health insurance costs in computing self-
              employment taxes in 2010.
Sec. 2043. Removal of cellular telephones and similar 
              telecommunications equipment from listed property.

                     Subtitle B--Revenue Provisions

                      PART I--Reducing the Tax Gap

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

               PART II--Promoting Retirement Preparation

Sec. 2111. Participants in government section 457 plans allowed to 
              treat elective deferrals as Roth contributions.
Sec. 2112. Rollovers from elective deferral plans to designated Roth 
              accounts.
Sec. 2113. Special rules for annuities received from only a portion of 
              a contract.

                 PART III--Closing Unintended Loopholes

Sec. 2121. Crude tall oil ineligible for cellulosic biofuel producer 
              credit.
Sec. 2122. Source rules for income on guarantees.

[[Page 16381]]

         PART IV--Time for Payment of Corporate Estimated Taxes

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

           TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE

Sec. 3001. Short title.
Sec. 3002. Definitions.
Sec. 3003. Federal funds allocated to States.
Sec. 3004. Approving States for participation.
Sec. 3005. Approving State capital access programs.
Sec. 3006. Approving collateral support and other innovative credit 
              access and guarantee initiatives for small businesses and 
              manufacturers.
Sec. 3007. Reports.
Sec. 3008. Remedies for State program termination or failures.
Sec. 3009. Implementation and administration.
Sec. 3010. Regulations.
Sec. 3011. Oversight and audits.

             TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS

                Subtitle A--Small Business Lending Fund

Sec. 4101. Purpose.
Sec. 4102. Definitions.
Sec. 4103. Small business lending fund.
Sec. 4104. Additional authorities of the Secretary.
Sec. 4105. Considerations.
Sec. 4106. Reports.
Sec. 4107. Oversight and audits.
Sec. 4108. Credit reform; funding.
Sec. 4109. Termination and continuation of authorities.
Sec. 4110. Preservation of authority.
Sec. 4111. Assurances.
Sec. 4112. Study and report with respect to women-owned, veteran-owned, 
              and minority-owned businesses.
Sec. 4113. Sense of Congress.

                      Subtitle B--Other Provisions

          PART I--Small Business Export Promotion Initiatives

Sec. 4221. Short title.
Sec. 4222. Global business development and promotion activities of the 
              Department of Commerce.
Sec. 4223. Additional funding to improve access to global markets for 
              rural businesses.
Sec. 4224. Additional funding for the ExporTech program.
Sec. 4225. Additional funding for the market development cooperator 
              program of the Department of Commerce.
Sec. 4226. Hollings Manufacturing Partnership Program; Technology 
              Innovation Program.
Sec. 4227. Sense of the Senate concerning Federal collaboration with 
              States on export promotion issues.
Sec. 4228. Report on tariff and nontariff barriers.

                        PART II--Medicare Fraud

Sec. 4241. Use of predictive modeling and other analytics technologies 
              to identify and prevent waste, fraud, and abuse in the 
              Medicare fee-for-service program.

                     TITLE V--BUDGETARY PROVISIONS

Sec. 5001. Determination of budgetary effects.

                       TITLE I--SMALL BUSINESSES

     SEC. 1001. DEFINITIONS.

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

              Subtitle A--Small Business Access to Credit

     SEC. 1101. SHORT TITLE.

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

         PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

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

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

     SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.

       Section 502(2)(A) of the Small Business Investment Act of 
     1958 (15 U.S.C. 696(2)(A)) is amended--
       (1) in clause (i), by striking ``$1,500,000'' and inserting 
     ``$5,000,000'';
       (2) in clause (ii), by striking ``$2,000,000'' and 
     inserting ``$5,000,000'';
       (3) in clause (iii), by striking ``$4,000,000'' and 
     inserting ``$5,500,000'';
       (4) in clause (iv), by striking ``$4,000,000'' and 
     inserting ``$5,500,000''; and
       (5) in clause (v), by striking ``$4,000,000'' and inserting 
     ``$5,500,000''.

     SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.

       Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) 
     is amended--
       (1) in paragraph (1)(B)(iii), by striking ``$35,000'' and 
     inserting ``$50,000'';
       (2) in paragraph (3)--
       (A) in subparagraph (C), by striking ``$3,500,000'' and 
     inserting ``$5,000,000''; and
       (B) in subparagraph (E), by striking ``$35,000'' each place 
     that term appears and inserting ``$50,000''; and
       (3) in paragraph (11)(B), by striking ``$35,000'' and 
     inserting ``$50,000''.

     SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS.

       (a) Fees.--Section 501 of the American Recovery and 
     Reinvestment Act of 2009 (Public Law 111-5; 123 Stat. 151) is 
     amended by striking ``September 30, 2010'' each place that 
     term appears and inserting ``December 31, 2010''.
       (b) Loan Guarantees.--Section 502(f) of division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 153) is amended by striking ``May 31, 2010'' 
     and inserting ``December 31, 2010''.

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

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

     SEC. 1116. ALTERNATIVE SIZE STANDARDS.

       Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) 
     is amended by adding at the end the following:
       ``(5) Alternative Size Standard.--
       ``(A) In general.--The Administrator shall establish an 
     alternative size standard for applicants for business loans 
     under section 7(a) and applicants for development company 
     loans under title V of the Small Business Investment Act of 
     1958 (15 U.S.C. 695 et seq.), that uses maximum tangible net 
     worth and average net income as an alternative to the use of 
     industry standards.
       ``(B) Interim rule.--Until the date on which the 
     alternative size standard established under subparagraph (A) 
     is in effect, an applicant for a business loan under section 
     7(a) or an applicant for a development company loan under 
     title V of the Small Business Investment Act of 1958 may be 
     eligible for such a loan if--
       ``(i) the maximum tangible net worth of the applicant is 
     not more than $15,000,000; and
       ``(ii) the average net income after Federal income taxes 
     (excluding any carry-over losses) of the applicant for the 2 
     full fiscal years before the date of the application is not 
     more than $5,000,000.''.

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

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

     SEC. 1118. ONLINE LENDING PLATFORM.

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

     SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.

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

[[Page 16382]]



               PART II--SMALL BUSINESS ACCESS TO CAPITAL

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

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

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

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

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

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

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

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

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

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

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

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

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

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

                        PART III--OTHER MATTERS

     SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

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

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

       ``(ii) includes--

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

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

[[Page 16383]]

       (c) Availability of Funds.--Any amounts provided to the 
     Administrator for the purposes of carrying out section 7(l) 
     of the Small Business Act, as amended by subsection (a), 
     shall remain available until expended.

     SEC. 1132. PUBLIC POLICY GOALS.

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

     SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION.

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

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

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

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

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

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

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

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

       ``(C) Department opinion; timing.--
       ``(i) Department opinion.--Not later than 30 days after the 
     date of a request by a qualified issuer for approval of a 
     guarantee under the Program, the Secretary shall provide an 
     opinion regarding compliance by the issuer with the 
     requirements of the Program under this section.
       ``(ii) Timing.--The Secretary shall approve or deny a 
     guarantee under this section after consideration of the 
     opinion provided to the Secretary under clause (i), and in no 
     case later than 90 days after receipt of all required 
     information by the Secretary with respect to a request for 
     such guarantee.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of the Treasury.
       ``(10) Servicer.--The term `servicer' means an entity 
     designated by the issuer to perform various servicing duties, 
     as provided in subsection (f)(3).
       ``(b) Guarantees Authorized.--The Secretary shall guarantee 
     payments on bonds or notes issued by any qualified issuer, if 
     the proceeds of the bonds or notes are used in accordance 
     with this section to make loans to eligible community 
     development financial institutions--
       ``(1) for eligible community or economic development 
     purposes; or
       ``(2) to refinance loans or notes issued for such purposes.
       ``(c) General Program Requirements.--
       ``(1) In general.--A capital distribution plan meets the 
     requirements of this subsection, if not less than 90 percent 
     of the principal amount of guaranteed bonds or notes (other 
     than costs of issuance fees) are used to make loans for any 
     eligible community or economic development purpose, measured 
     annually, beginning at the end of the 1-year period beginning 
     on the issuance date of such guaranteed bonds or notes.
       ``(2) Relending account.--Not more than 10 percent of the 
     principal amount of guaranteed bonds or notes, multiplied by 
     an amount equal to the outstanding principal balance of 
     issued notes or bonds, minus the risk-share pool amount under 
     subsection (d), may be held in a relending account and may be 
     made available for new eligible community or economic 
     development purposes.
       ``(3) Limitations on unpaid principal balances.--The 
     proceeds of guaranteed bonds or notes under the Program may 
     not be used to pay fees (other than costs of issuance fees), 
     and shall be held in--
       ``(A) community or economic development loans;
       ``(B) a relending account, to the extent authorized under 
     paragraph (2); or
       ``(C) a risk-share pool established under subsection (d).
       ``(4) Repayment.--If a qualified issuer fails to meet the 
     requirements of paragraph (1) by the end of the 90-day period 
     beginning at the end of the annual measurement period, 
     repayment shall be made on that portion of bonds or notes 
     necessary to bring the bonds or notes that remain outstanding 
     after such repayment into compliance with the 90 percent 
     requirement of paragraph (1).
       ``(5) Prohibited uses.--The Secretary shall, by 
     regulation--
       ``(A) prohibit, as appropriate, certain uses of amounts 
     from the guarantee of a bond or note under the Program, 
     including the use of such funds for political activities, 
     lobbying, outreach, counseling services, or travel expenses; 
     and
       ``(B) provide that the guarantee of a bond or note under 
     the Program may not be used for salaries or other 
     administrative costs of--
       ``(i) the qualified issuer; or

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

     SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.

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

     SEC. 1136. PROHIBITION ON USING TARP FUNDS OR TAX INCREASES.

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

             Subtitle B--Small Business Trade and Exporting

     SEC. 1201. SHORT TITLE.

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

     SEC. 1202. DEFINITIONS.

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

     SEC. 1203. OFFICE OF INTERNATIONAL TRADE.

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

     ``SEC. 22. OFFICE OF INTERNATIONAL TRADE.

       ``(a) Establishment.--
       ``(1) Office.--There''; and
       (2) in subsection (a)--
       (A) in paragraph (1), as so designated, by striking the 
     period and inserting ``for the primary purposes of 
     increasing--
       ``(A) the number of small business concerns that export; 
     and
       ``(B) the volume of exports by small business concerns.''; 
     and
       (B) by adding at the end the following:
       ``(2) Associate administrator.--The head of the Office 
     shall be the Associate Administrator for International Trade, 
     who shall be responsible to the Administrator.''.
       (b) Authority for Additional Associate Administrator.--
     Section 4(b)(1) of the Small Business Act (15 U.S.C. 
     633(b)(1)) is amended--
       (1) in the fifth sentence, by striking ``five Associate 
     Administrators'' and inserting ``Associate Administrators''; 
     and
       (2) by adding at the end the following: ``One such 
     Associate Administrator shall be the Associate Administrator 
     for International Trade, who shall be the head of the Office 
     of International Trade established under section 22.''.
       (c) Discharge of International Trade Responsibilities of 
     Administration.--Section 22 of the Small Business Act (15 
     U.S.C. 649) is amended by adding at the end the following:
       ``(h) Discharge of International Trade Responsibilities of 
     Administration.--The Administrator shall ensure that--
       ``(1) the responsibilities of the Administration regarding 
     international trade are carried out by the Associate 
     Administrator;

[[Page 16385]]

       ``(2) the Associate Administrator has sufficient resources 
     to carry out such responsibilities; and
       ``(3) the Associate Administrator has direct supervision 
     and control over--
       ``(A) the staff of the Office; and
       ``(B) any employee of the Administration whose principal 
     duty station is an Export Assistance Center, or any successor 
     entity.''.
       (d) Role of Associate Administrator in Carrying Out 
     International Trade Policy.--Section 2(b)(1) of the Small 
     Business Act (15 U.S.C. 631(b)(1)) is amended in the matter 
     preceding subparagraph (A)--
       (1) by inserting ``the Administrator of'' before ``the 
     Small Business Administration''; and
       (2) by inserting ``through the Associate Administrator for 
     International Trade, and'' before ``in cooperation with''.
       (e) Implementation Date.--Not later than 90 days after the 
     date of enactment of this Act, the Administrator of the Small 
     Business Administration shall appoint an Associate 
     Administrator for International Trade under section 22(a) of 
     the Small Business Act (15 U.S.C. 649(a)), as added by this 
     section.

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

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

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

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

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

       (ii) in subparagraph (B)--

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

       (iii) in subparagraph (D)--

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

       (iv) in subparagraph (E)--

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

       (v) by adding at the end the following:
       ``(F) participate, jointly with employees of the Office, in 
     an annual training program that focuses on current small 
     business needs for exporting; and
       ``(G) develop and conduct training programs for exporters 
     and lenders, in cooperation with the Export Assistance 
     Centers, the Department of Commerce, the Department of 
     Agriculture, small business development centers, women's 
     business centers, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, and 
     other relevant Federal agencies;''; and
       (vi) by striking ``small businesses'' each place that term 
     appears and inserting ``small business concerns''; and
       (L) by adding at the end the following:
       ``(10) make available on the website of the Administration 
     the name and contact information of each individual described 
     in paragraph (9);
       ``(11) carry out a nationwide marketing effort using 
     technology, online resources, training, and other strategies 
     to promote exporting as a business development opportunity 
     for small business concerns;
       ``(12) disseminate information to the small business 
     community through regional and district offices of the 
     Administration, the small business development center 
     network, Export Assistance Centers, the network of women's 
     business centers, chapters of the Service Corps of Retired 
     Executives authorized by section 8(b)(1), State and local 
     export promotion programs, and partners in the private sector 
     regarding exporting trends, market-specific growth, industry 
     trends, and prospects for exporting; and
       ``(13) establish and carry out training programs for the 
     staff of the regional and district offices of the 
     Administration and resource partners of the Administration on 
     export promotion and providing assistance relating to 
     exports.'';
       (3) in subsection (d)--
       (A) by redesignating paragraphs (1) through (5) as clauses 
     (i) through (v), respectively, and adjusting the margins 
     accordingly;
       (B) by striking ``(d) The Office'' and inserting the 
     following:
       ``(d) Export Financing Programs.--
       ``(1) In general.--The Associate Administrator''; and
       (C) by striking ``To accomplish this goal, the Office shall 
     work'' and inserting the following:
       ``(2) Trade finance specialist.--To accomplish the goal 
     established under paragraph (1), the Associate Administrator 
     shall--
       ``(A) designate at least 1 individual within the 
     Administration as a trade finance specialist to oversee 
     international loan programs and assist Administration 
     employees with trade finance issues; and

[[Page 16386]]

       ``(B) work'';
       (4) in subsection (e), by striking ``(e) The Office'' and 
     inserting the following:
       ``(e) Trade Remedies.--The Associate Administrator'';
       (5) by amending subsection (f) to read as follows:
       ``(f) Reporting Requirement.--The Associate Administrator 
     shall submit an annual report to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives that 
     contains--
       ``(1) a description of the progress of the Office in 
     implementing the requirements of this section;
       ``(2) a detailed account of the results of export growth 
     activities of the Administration, including the activities of 
     each district and regional office of the Administration, 
     based on the performance measures described in subsection 
     (i);
       ``(3) an estimate of the total number of jobs created or 
     retained as a result of export assistance provided by the 
     Administration and resource partners of the Administration;
       ``(4) for any travel by the staff of the Office, the 
     destination of such travel and the benefits to the 
     Administration and to small business concerns resulting from 
     such travel; and
       ``(5) a description of the participation by the Office in 
     trade negotiations.'';
       (6) in subsection (g), by striking ``(g) The Office'' and 
     inserting the following:
       ``(g) Studies.--The Associate Administrator''; and
       (7) by adding after subsection (h), as added by section 
     1203 of this subtitle, the following:
       ``(i) Export and Trade Counseling.--
       ``(1) Definition.--In this subsection--
       ``(A) the term `lead small business development center' 
     means a small business development center that has received a 
     grant from the Administration; and
       ``(B) the term `lead women's business center' means a 
     women's business center that has received a grant from the 
     Administration.
       ``(2) Certification program.--The Administrator shall 
     establish an export and trade counseling certification 
     program to certify employees of lead small business 
     development centers and lead women's business centers in 
     providing export assistance to small business concerns.
       ``(3) Number of certified employees.--The Administrator 
     shall ensure that the number of employees of each lead small 
     business development center who are certified in providing 
     export assistance is not less than the lesser of--
       ``(A) 5; or
       ``(B) 10 percent of the total number of employees of the 
     lead small business development center.
       ``(4) Reimbursement for certification.--
       ``(A) In general.--Subject to the availability of 
     appropriations, the Administrator shall reimburse a lead 
     small business development center or a lead women's business 
     center for costs relating to the certification of an employee 
     of the lead small business center or lead women's business 
     center in providing export assistance under the program 
     established under paragraph (2).
       ``(B) Limitation.--The total amount reimbursed by the 
     Administrator under subparagraph (A) may not exceed $350,000 
     in any fiscal year.
       ``(j) Performance Measures.--
       ``(1) In general.--The Associate Administrator shall 
     develop performance measures for the Administration to 
     support export growth goals for the activities of the Office 
     under this section that include--
       ``(A) the number of small business concerns that--
       ``(i) receive assistance from the Administration;
       ``(ii) had not exported goods or services before receiving 
     the assistance described in clause (i); and
       ``(iii) export goods or services;
       ``(B) the number of small business concerns receiving 
     assistance from the Administration that export goods or 
     services to a market outside the United States into which the 
     small business concern did not export before receiving the 
     assistance;
       ``(C) export revenues by small business concerns assisted 
     by programs of the Administration;
       ``(D) the number of small business concerns referred to an 
     Export Assistance Center or a small business development 
     center by the staff of the Office;
       ``(E) the number of small business concerns referred to the 
     Administration by an Export Assistance Center or a small 
     business development center; and
       ``(F) the number of small business concerns referred to the 
     Department of Commerce, the Department of Agriculture, the 
     Department of State, the Export-Import Bank of the United 
     States, the Overseas Private Investment Corporation, or the 
     United States Trade and Development Agency by the staff of 
     the Office, an Export Assistance Center, or a small business 
     development center.
       ``(2) Joint performance measures.--The Associate 
     Administrator shall develop joint performance measures for 
     the district offices of the Administration and the Export 
     Assistance Centers that include the number of export loans 
     made under--
       ``(A) section 7(a)(16);
       ``(B) the Export Working Capital Program established under 
     section 7(a)(14);
       ``(C) the Preferred Lenders Program, as defined in section 
     7(a)(2)(C)(ii); and
       ``(D) the export express program established under section 
     7(a)(34).
       ``(3) Consistency of tracking.--The Associate 
     Administrator, in coordination with the departments and 
     agencies that are represented on the Trade Promotion 
     Coordinating Committee established under section 2312 of the 
     Export Enhancement Act of 1988 (15 U.S.C. 4727) and the small 
     business development center network, shall develop a system 
     to track exports by small business concerns, including 
     information relating to the performance measures developed 
     under paragraph (1), that is consistent with systems used by 
     the departments and agencies and the network.''.
       (b) Report.--Not later than 60 days after the date of 
     enactment of this Act, the Administrator shall submit a 
     report to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives on any travel by the 
     staff of the Office of International Trade of the 
     Administration, during the period beginning on October 1, 
     2004, and ending on the date of enactment of the Act, 
     including the destination of such travel and the benefits to 
     the Administration and to small business concerns resulting 
     from such travel.

     SEC. 1205. EXPORT ASSISTANCE CENTERS.

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

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

       (vi) the total value of the exports in each State by small 
     business concerns;

[[Page 16387]]

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

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

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

     SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.

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

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

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

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

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

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

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

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

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

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

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

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

       (a) Definitions.--In this section--
       (1) the term ``eligible small business concern'' means a 
     small business concern that--
       (A) has been in business for not less than the 1-year 
     period ending on the date on which assistance is provided 
     using a grant under this section;
       (B) is operating profitably, based on operations in the 
     United States;
       (C) has demonstrated understanding of the costs associated 
     with exporting and doing business with foreign purchasers, 
     including the costs of freight forwarding, customs brokers, 
     packing and shipping, as determined by the Associate 
     Administrator; and
       (D) has in effect a strategic plan for exporting;
       (2) the term ``program'' means the State Trade and Export 
     Promotion Grant Program established under subsection (b);
       (3) the term ``small business concern owned and controlled 
     by women'' has the meaning given that term in section 3 of 
     the Small Business Act (15 U.S.C. 632);
       (4) the term ``socially and economically disadvantaged 
     small business concern'' has the meaning given that term in 
     section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
     6537(a)(4)(A)); and
       (5) the term ``State'' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, and American Samoa.
       (b) Establishment of Program.--The Associate Administrator 
     shall establish a 3-year

[[Page 16388]]

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

     SEC. 1208. RURAL EXPORT PROMOTION.

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

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

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

                 Subtitle C--Small Business Contracting

                       PART I--CONTRACT BUNDLING

     SEC. 1311. SMALL BUSINESS ACT.

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

     SEC. 1312. LEADERSHIP AND OVERSIGHT.

       (a) In General.--Section 15 of the Small Business Act (15 
     U.S.C. 644) is amended by adding at the end the following:
       ``(q) Bundling Accountability Measures.--
       ``(1) Teaming requirements.--Each Federal agency shall 
     include in each solicitation for any multiple award contract 
     above the substantial bundling threshold of the Federal 
     agency a provision soliciting bids from any responsible 
     source, including responsible small business concerns and 
     teams or joint ventures of small business concerns.
       ``(2) Policies on reduction of contract bundling.--
       ``(A) In general.--Not later than 1 year after the date of 
     enactment of this subsection, the Federal Acquisition 
     Regulatory Council established under section 25(a) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 4219(a)) 
     shall amend the Federal Acquisition Regulation issued under 
     section 25 of such Act to--
       ``(i) establish a Government-wide policy regarding contract 
     bundling, including regarding

[[Page 16389]]

     the solicitation of teaming and joint ventures under 
     paragraph (1); and
       ``(ii) require that the policy established under clause (i) 
     be published on the website of each Federal agency.
       ``(B) Rationale for contract bundling.--Not later than 30 
     days after the date on which the head of a Federal agency 
     submits data certifications to the Administrator for Federal 
     Procurement Policy, the head of the Federal agency shall 
     publish on the website of the Federal agency a list and 
     rationale for any bundled contract for which the Federal 
     agency solicited bids or that was awarded by the Federal 
     agency.
       ``(3) Reporting.--Not later than 90 days after the date of 
     enactment of this subsection, and every 3 years thereafter, 
     the Administrator shall submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives a report 
     regarding procurement center representatives and commercial 
     market representatives, which shall--
       ``(A) identify each area for which the Administration has 
     assigned a procurement center representative or a commercial 
     market representative;
       ``(B) explain why the Administration selected the areas 
     identified under subparagraph (A); and
       ``(C) describe the activities performed by procurement 
     center representatives and commercial market 
     representatives.''.
       (b) Technical Correction.--Section 15(g) of the Small 
     Business Act (15 U.S.C. 644(g)) is amended by striking 
     ``Administrator of the Office of Federal Procurement Policy'' 
     each place it appears and inserting ``Administrator for 
     Federal Procurement Policy''.
       (c) Report.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall submit to Congress a report regarding the 
     procurement center representative program of the 
     Administration.
       (2) Contents.--The report submitted under paragraph (1) 
     shall--
       (A) address ways to improve the effectiveness of the 
     procurement center representative program in helping small 
     business concerns obtain Federal contracts;
       (B) evaluate the effectiveness of procurement center 
     representatives and commercial marketing representatives; and
       (C) include recommendations, if any, on how to improve the 
     procurement center representative program.
       (d) Electronic Procurement Center Representative.--
       (1) In general.--Not later than 1 year after the date of 
     enactment of this Act, the Administrator shall implement a 3-
     year pilot electronic procurement center representative 
     program.
       (2) Report.--Not later than 30 days after the pilot program 
     under paragraph (1) ends, the Comptroller General of the 
     United States shall submit to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     the pilot program.

     SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.

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

     ``SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.

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

     SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM.

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

                   PART II--SUBCONTRACTING INTEGRITY

     SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS.

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

     SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.

       Section 8(d)(6) of the Small Business Act (15 U.S.C. 
     637(d)(6)) is amended--

[[Page 16390]]

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

                     PART III--ACQUISITION PROCESS

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

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

     SEC. 1332. MICRO-PURCHASE GUIDELINES.

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

     SEC. 1333. AGENCY ACCOUNTABILITY.

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

     SEC. 1334. PAYMENT OF SUBCONTRACTORS.

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

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

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

           PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

     SEC. 1341. POLICY AND PRESUMPTIONS.

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

     SEC. 1342. ANNUAL CERTIFICATION.

       Section 3 of the Small Business Act (15 U.S.C. 632), as 
     amended by section 1341, is amended by adding at the end the 
     following:
       ``(x) Annual Certification.--
       ``(1) In general.--Each business certified as a small 
     business concern under this Act shall annually certify its 
     small business size and, if appropriate, its small business 
     status, by means of a confirming entry on the Online 
     Representations and Certifications Application database of 
     the Administration, or any successor thereto.

[[Page 16391]]

       ``(2) Regulations.--Not later than 1 year after the date of 
     enactment of this subsection, the Administrator, in 
     consultation with the Inspector General and the Chief Counsel 
     for Advocacy of the Administration, shall promulgate 
     regulations to ensure that--
       ``(A) no business concern continues to be certified as a 
     small business concern on the Online Representations and 
     Certifications Application database of the Administration, or 
     any successor thereto, without fulfilling the requirements 
     for annual certification under this subsection; and
       ``(B) the requirements of this subsection are implemented 
     in a manner presenting the least possible regulatory burden 
     on small business concerns.''.

     SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT 
                   PERSONNEL.

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

     SEC. 1344. UPDATED SIZE STANDARDS.

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

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

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

     SEC. 1346. CONTRACTING GOALS REPORTS.

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

     SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.

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

    Subtitle D--Small Business Management and Counseling Assistance

     SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS 
                   PROGRAMS.

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

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

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

       ``(III) Limitations.--

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

[[Page 16392]]

       ``(ii) Waiver of non-federal share.--

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

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

       ``(III) Limitations.--

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

     SEC. 1402. GRANTS FOR SBDCS.

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

                 Subtitle E--Disaster Loan Improvement

     SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.

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

              Subtitle F--Small Business Regulatory Relief

     SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.

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

     SEC. 1602. OFFICE OF ADVOCACY.

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

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

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

                 Subtitle G--Appropriations Provisions

     SEC. 1701. SALARIES AND EXPENSES.

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

[[Page 16393]]

     of the Senate and the Committee on Appropriations of the 
     House of Representatives a detailed expenditure plan for 
     using the funds provided under subsection (a).

     SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.

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

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

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

     SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT 
                   EXTENSIONS.

       (a) Extension of Programs.--
       (1) In general.--There is appropriated, out of any funds in 
     the Treasury not otherwise appropriated, for an additional 
     amount for ``Small Business Administration--Business Loans 
     Program Account'', $505,000,000, to remain available through 
     December 31, 2010, for the cost of--
       (A) fee reductions and eliminations under section 501 of 
     division A of the American Recovery and Reinvestment Act of 
     2009 (Public Law 111-5; 123 Stat. 151), as amended by this 
     Act; and
       (B) loan guarantees under section 502 of division A of the 
     American Recovery and Reinvestment Act of 2009 (Public Law 
     111-5; 123 Stat. 152), as amended by this Act.
       (2) Cost.--For purposes of this subsection, the term 
     ``cost'' has the same meaning as in section 502 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661a).
       (b) Administrative Expenses.--There is appropriated for an 
     additional amount, out of any funds in the Treasury not 
     otherwise appropriated, for administrative expenses to carry 
     out sections 501 and 502 of division A of the American 
     Recovery and Reinvestment Act of 2009 (Public Law 111-5), 
     $5,000,000, to remain available until expended, which may be 
     transferred and merged with the appropriation for ``Small 
     Business Administration--Salaries and Expenses''.

                        TITLE II--TAX PROVISIONS

     SEC. 2001. SHORT TITLE.

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

                   Subtitle A--Small Business Relief

                  PART I--PROVIDING ACCESS TO CAPITAL

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

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

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

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

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

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

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

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

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

       ``(B) Eligible small business credits.--For purposes of 
     this subsection, the term `eligible small business credits' 
     means the sum of the credits listed in subsection (b) which 
     are determined for the taxable year with respect to an 
     eligible small business. Such credits shall not be taken into 
     account under paragraph (2), (3), or (4).
       ``(C) Eligible small business.--For purposes of this 
     subsection, the term `eligible small business' means, with 
     respect to any taxable year--
       ``(i) a corporation the stock of which is not publicly 
     traded,
       ``(ii) a partnership, or
       ``(iii) a sole proprietorship,

     if the average annual gross receipts of such corporation, 
     partnership, or sole proprietorship for the 3-taxable-year 
     period preceding such taxable year does not exceed 
     $50,000,000. For purposes of applying the test under the 
     preceding sentence, rules similar to the rules of paragraphs 
     (2) and (3) of section 448(c) shall apply.
       ``(D) Treatment of partners and s corporation 
     shareholders.--Credits determined with respect to a 
     partnership or S corporation shall not be treated as eligible 
     small business credits by any partner or shareholder unless 
     such partner or shareholder meets the gross receipts test 
     under subparagraph (C) for the taxable year in which such 
     credits are treated as current year business credits.''.
       (b) Technical Amendment.--Section 55(e)(5) of the Internal 
     Revenue Code of 1986 is amended by striking ``38(c)(3)(B)'' 
     and inserting ``38(c)(6)(B)''.
       (c) Conforming Amendments.--
       (1) Subclause (II) of section 38(c)(2)(A)(ii) of the 
     Internal Revenue Code of 1986 is amended by inserting ``the 
     eligible small business credits,'' after ``the New York 
     Liberty Zone business employee credit,''.
       (2) Subclause (II) of section 38(c)(3)(A)(ii) of such Code 
     is amended by inserting ``, the eligible small business 
     credits,'' after ``the New York Liberty Zone business 
     employee credit''.
       (3) Subclause (II) of section 38(c)(4)(A)(ii) of such Code 
     is amended by inserting ``the eligible small business credits 
     and'' before ``the specified credits''.
       (d) Effective Date.--The amendments made by subsection (a) 
     shall apply to credits determined in taxable years beginning 
     after December 31, 2009, and to carrybacks of such credits.

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

       (a) In General.--Subparagraph (B) of section 1374(d)(7) of 
     the Internal Revenue Code of 1986 is amended to read as 
     follows:
       ``(B) Special rules for 2009, 2010, and 2011.--No tax shall 
     be imposed on the net recognized built-in gain of an S 
     corporation--
       ``(i) in the case of any taxable year beginning in 2009 or 
     2010, if the 7th taxable year in the recognition period 
     preceded such taxable year, or
       ``(ii) in the case of any taxable year beginning in 2011, 
     if the 5th year in the recognition period preceded such 
     taxable year.


[[Page 16394]]


     The preceding sentence shall be applied separately with 
     respect to any asset to which paragraph (8) applies.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2010.

                    PART II--ENCOURAGING INVESTMENT

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

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

     For purposes of the preceding sentence, only section 179 
     property with respect to which an election was made under 
     subsection (c)(1) (determined without regard to subparagraph 
     (B) of this paragraph) shall be taken into account.''.
       (c) Revocability of Election.--Paragraph (2) of section 
     179(c) of the Internal Revenue Code of 1986 is amended by 
     striking ``2011'' and inserting ``2012''.
       (d) Computer Software Treated as 179 Property.--Clause (ii) 
     of section 179(d)(1)(A) is amended by striking ``2011'' and 
     inserting ``2012''.
       (e) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to property 
     placed in service after December 31, 2009, in taxable years 
     beginning after such date.
       (2) Extensions.--The amendments made by subsections (c) and 
     (d) shall apply to taxable years beginning after December 31, 
     2010.

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

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

     SEC. 2023. SPECIAL RULE FOR LONG-TERM CONTRACT ACCOUNTING.

       (a) In General.--Section 460(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(6) Special rule for allocation of bonus depreciation 
     with respect to certain property.--
       ``(A) In general.--Solely for purposes of determining the 
     percentage of completion under subsection (b)(1)(A), the cost 
     of qualified property shall be taken into account as a cost 
     allocated to the contract as if subsection (k) of section 168 
     had not been enacted.
       ``(B) Qualified property.--For purposes of this paragraph, 
     the term `qualified property' means property described in 
     section 168(k)(2) which--
       ``(i) has a recovery period of 7 years or less, and
       ``(ii) is placed in service after December 31, 2009, and 
     before January 1, 2011 (January 1, 2012, in the case of 
     property described in section 168(k)(2)(B)).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to property placed in service after December 31, 
     2009.

                  PART III--PROMOTING ENTREPRENEURSHIP

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

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

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

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

[[Page 16395]]



               PART IV--PROMOTING SMALL BUSINESS FAIRNESS

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

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

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

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

     SEC. 2043. REMOVAL OF CELLULAR TELEPHONES AND SIMILAR 
                   TELECOMMUNICATIONS EQUIPMENT FROM LISTED 
                   PROPERTY.

       (a) In General.--Subparagraph (A) of section 280F(d)(4) of 
     the Internal Revenue Code of 1986 (defining listed property) 
     is amended by adding ```and''' at the end of clause (iv), by 
     striking clause (v), and by redesignating clause (vi) as 
     clause (v).
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.

                     Subtitle B--Revenue Provisions

                      PART I--REDUCING THE TAX GAP

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

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

     SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.

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

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

       ``(a) Imposition of Penalty.--
       ``(1) General rule.--In the case of each failure described 
     in paragraph (2) by any person with respect to a payee 
     statement, such person shall pay a penalty of $100 for each 
     statement with respect to which such a failure occurs, but 
     the total amount imposed on such person for all such failures 
     during any calendar year shall not exceed $1,500,000.
       ``(2) Failures subject to penalty.--For purposes of 
     paragraph (1), the failures described in this paragraph are--
       ``(A) any failure to furnish a payee statement on or before 
     the date prescribed therefor to the person to whom such 
     statement is required to be furnished, and
       ``(B) any failure to include all of the information 
     required to be shown on a payee statement or the inclusion of 
     incorrect information.
       ``(b) Reduction Where Correction in Specified Period.--
       ``(1) Correction within 30 days.--If any failure described 
     in subsection (a)(2) is corrected on or before the day 30 
     days after the required filing date--
       ``(A) the penalty imposed by subsection (a) shall be $30 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during any calendar year which are so corrected 
     shall not exceed $250,000.
       ``(2) Failures corrected on or before august 1.--If any 
     failure described in subsection (a)(2) is corrected after the 
     30th day referred to in paragraph (1) but on or before August 
     1 of the calendar year in which the required filing date 
     occurs--
       ``(A) the penalty imposed by subsection (a) shall be $60 in 
     lieu of $100, and
       ``(B) the total amount imposed on the person for all such 
     failures during the calendar year which are so corrected 
     shall not exceed $500,000.
       ``(c) Exception for De Minimis Failures.--
       ``(1) In general.--If--
       ``(A) a payee statement is furnished to the person to whom 
     such statement is required to be furnished,
       ``(B) there is a failure described in subsection (a)(2)(B) 
     (determined after the application of section 6724(a)) with 
     respect to such statement, and
       ``(C) such failure is corrected on or before August 1 of 
     the calendar year in which the required filing date occurs, 
     for purposes of this section, such statement shall be treated 
     as having been furnished with all of the correct required 
     information.
       ``(2) Limitation.--The number of payee statements to which 
     paragraph (1) applies for any calendar year shall not exceed 
     the greater of--
       ``(A) 10, or
       ``(B) one-half of 1 percent of the total number of payee 
     statements required to be filed by the person during the 
     calendar year.
       ``(d) Lower Limitations for Persons With Gross Receipts of 
     Not More Than $5,000,000.--
       ``(1) In general.--If any person meets the gross receipts 
     test of paragraph (2) with respect to any calendar year, with 
     respect to failures during such calendar year--
       ``(A) subsection (a)(1) shall be applied by substituting 
     `$500,000' for `$1,500,000',
       ``(B) subsection (b)(1)(B) shall be applied by substituting 
     `$75,000' for `$250,000', and
       ``(C) subsection (b)(2)(B) shall be applied by substituting 
     `$200,000' for `$500,000'.

[[Page 16396]]

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

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

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

     SEC. 2104. APPLICATION OF CONTINUOUS LEVY TO TAX LIABILITIES 
                   OF CERTAIN FEDERAL CONTRACTORS.

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

               PART II--PROMOTING RETIREMENT PREPARATION

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

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

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

       (a) In General.--Section 402A(c) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(4) Taxable rollovers to designated roth accounts.--
       ``(A) In general.--Notwithstanding sections 402(c), 
     403(b)(8), and 457(e)(16), in the case of any distribution to 
     which this paragraph applies--
       ``(i) there shall be included in gross income any amount 
     which would be includible were it not part of a qualified 
     rollover contribution,
       ``(ii) section 72(t) shall not apply, and
       ``(iii) unless the taxpayer elects not to have this clause 
     apply, any amount required to be included in gross income for 
     any taxable year beginning in 2010 by reason of this 
     paragraph shall be so included ratably over the 2-taxable-
     year period beginning with the first taxable year beginning 
     in 2011.
     Any election under clause (iii) for any distributions during 
     a taxable year may not be changed after the due date for such 
     taxable year.
       ``(B) Distributions to which paragraph applies.--In the 
     case of an applicable retirement plan which includes a 
     qualified Roth contribution program, this paragraph shall 
     apply to a distribution from such plan other than from a 
     designated Roth account which is contributed in a qualified 
     rollover contribution (within the meaning of section 408A(e)) 
     to the designated Roth account maintained under such plan for 
     the benefit of the individual to whom the distribution is 
     made.
       ``(C) Coordination with limit.--Any distribution to which 
     this paragraph applies shall not be taken into account for 
     purposes of paragraph (1).
       ``(D) Other rules.--The rules of subparagraphs (D), (E), 
     and (F) of section 408A(d)(3) (as in effect for taxable years 
     beginning after 2009) shall apply for purposes of this 
     paragraph.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions after the date of the enactment 
     of this Act.

     SEC. 2113. SPECIAL RULES FOR ANNUITIES RECEIVED FROM ONLY A 
                   PORTION OF A CONTRACT.

       (a) In General.--Subsection (a) of section 72 of the 
     Internal Revenue Code of 1986 is amended to read as follows:
       ``(a) General Rules for Annuities.--
       ``(1) Income inclusion.--Except as otherwise provided in 
     this chapter, gross income includes any amount received as an 
     annuity (whether for a period certain or during one or more 
     lives) under an annuity, endowment, or life insurance 
     contract.
       ``(2) Partial annuitization.--If any amount is received as 
     an annuity for a period of 10 years or more or during one or 
     more lives under any portion of an annuity, endowment, or 
     life insurance contract--
       ``(A) such portion shall be treated as a separate contract 
     for purposes of this section,
       ``(B) for purposes of applying subsections (b), (c), and 
     (e), the investment in the contract shall be allocated pro 
     rata between each portion of the contract from which amounts 
     are received as an annuity and the portion of the contract 
     from which amounts are not received as an annuity, and
       ``(C) a separate annuity starting date under subsection 
     (c)(4) shall be determined with respect to each portion of 
     the contract from which amounts are received as an 
     annuity.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to amounts received in taxable years beginning 
     after December 31, 2010.

                 PART III--CLOSING UNINTENDED LOOPHOLES

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

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

[[Page 16397]]

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

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

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

     SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES.

       (a) Amounts Sourced Within the United States.--Subsection 
     (a) of section 861 of the Internal Revenue Code of 1986 is 
     amended by adding at the end the following new paragraph:
       ``(9) Guarantees.--Amounts received, directly or 
     indirectly, from--
       ``(A) a noncorporate resident or domestic corporation for 
     the provision of a guarantee of any indebtedness of such 
     resident or corporation, or
       ``(B) any foreign person for the provision of a guarantee 
     of any indebtedness of such person, if such amount is 
     connected with income which is effectively connected (or 
     treated as effectively connected) with the conduct of a trade 
     or business in the United States.''.
       (b) Amounts Sourced Without the United States.--Subsection 
     (a) of section 862 of the Internal Revenue Code of 1986 is 
     amended by striking ``and'' at the end of paragraph (7), by 
     striking the period at the end of paragraph (8) and inserting 
     ``; and'', and by adding at the end the following new 
     paragraph:
       ``(9) amounts received, directly or indirectly, from a 
     foreign person for the provision of a guarantee of 
     indebtedness of such person other than amounts which are 
     derived from sources within the United States as provided in 
     section 861(a)(9).''.
       (c) Conforming Amendment.--Clause (ii) of section 
     864(c)(4)(B) of the Internal Revenue Code of 1986 is amended 
     by striking ``dividends or interest'' and inserting 
     ``dividends, interest, or amounts received for the provision 
     of guarantees of indebtedness''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to guarantees issued after the date of the 
     enactment of this Act.

         PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

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

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

           TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE

     SEC. 3001. SHORT TITLE.

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

     SEC. 3002. DEFINITIONS.

       In this title, the following definitions shall apply:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency''--
       (A) has the same meaning as in section 3(q) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1813(q)); and
       (B) includes the National Credit Union Administration Board 
     in the case of any credit union the deposits of which are 
     insured in accordance with the Federal Credit Union Act.
       (3) Enrolled loan.--The term ``enrolled loan'' means a loan 
     made by a financial institution lender that is enrolled by a 
     participating State in an approved State capital access 
     program in accordance with this title.
       (4) Federal contribution.--The term ``Federal 
     contribution'' means the portion of the contribution made by 
     a participating State to, or for the account of, an approved 
     State program that is made with Federal funds allocated to 
     the State by the Secretary under section 3003.
       (5) Financial institution.--The term ``financial 
     institution'' means any insured depository institution, 
     insured credit union, or community development financial 
     institution, as those terms are each defined in section 103 
     of the Riegle Community Development and Regulatory 
     Improvement Act of 1994 (12 U.S.C. 4702).
       (6) Participating state.--The term ``participating State'' 
     means any State that has been approved for participation in 
     the Program under section 3004.
       (7) Program.--The term ``Program'' means the State Small 
     Business Credit Initiative established under this title.
       (8) Qualifying loan or swap funding facility.--The term 
     ``qualifying loan or swap funding facility'' means a 
     contractual arrangement between a participating State and a 
     private financial entity under which--
       (A) the participating State delivers funds to the entity as 
     collateral;
       (B) the entity provides funding from the arrangement back 
     to the participating State; and
       (C) the full amount of resulting funding from the 
     arrangement, less any fees and other costs of the 
     arrangement, is contributed to, or for the account of, an 
     approved State program.
       (9) Reserve fund.--The term ``reserve fund'' means a fund, 
     established by a participating State, dedicated to a 
     particular financial institution lender, for the purposes 
     of--
       (A) depositing all required premium charges paid by the 
     financial institution lender and by each borrower receiving a 
     loan under an approved State program from that financial 
     institution lender;
       (B) depositing contributions made by the participating 
     State, including State contributions made with Federal 
     contributions; and
       (C) covering losses on enrolled loans by disbursing 
     accumulated funds.
       (10) State.--The term ``State'' means--
       (A) a State of the United States;
       (B) the District of Columbia, the Commonwealth of Puerto 
     Rico, the Commonwealth of Northern Mariana Islands, Guam, 
     American Samoa, and the United States Virgin Islands;
       (C) when designated by a State of the United States, a 
     political subdivision of that State that the Secretary 
     determines has the capacity to participate in the Program; 
     and
       (D) under the circumstances described in section 3004(d), a 
     municipality of a State of the United States to which the 
     Secretary has given a special permission under section 
     3004(d).
       (11) State capital access program.--The term ``State 
     capital access program'' means a program of a State that--
       (A) uses public resources to promote private access to 
     credit; and
       (B) meets the eligibility criteria in section 3005(c).
       (12) State other credit support program.--The term ``State 
     other credit support program''--
       (A) means a program of a State that--
       (i) uses public resources to promote private access to 
     credit;
       (ii) is not a State capital access program; and
       (iii) meets the eligibility criteria in section 3006(c); 
     and
       (B) includes, collateral support programs, loan 
     participation programs, State-run venture capital fund 
     programs, and credit guarantee programs.
       (13) State program.--The term ``State program'' means a 
     State capital access program or a State other credit support 
     program.
       (14) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.

     SEC. 3003. FEDERAL FUNDS ALLOCATED TO STATES.

       (a) Program Established; Purpose.--There is established the 
     State Small Business Credit Initiative, to be administered by 
     the Secretary. Under the Program, the Secretary shall 
     allocate Federal funds to participating States and make the 
     allocated funds available to the participating States as 
     provided in this section for the uses described in this 
     section.
       (b) Allocation Formula.--
       (1) In general.--Not later than 30 days after the date of 
     enactment of this Act, the Secretary shall allocate Federal 
     funds to participating States so that each State is eligible 
     to receive an amount equal to the average of the respective 
     amounts that the State--
       (A) would receive under the 2009 allocation, as determined 
     under paragraph (2); and
       (B) would receive under the 2010 allocation, as determined 
     under paragraph (3).
       (2) 2009 allocation formula.--
       (A) In general.--The Secretary shall determine the 2009 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2008 State employment 
     decline bears to the aggregate of the 2008 State employment 
     declines for all States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2008 state employment decline defined.--In this 
     paragraph and with respect to a State, the term ``2008 State 
     employment decline'' means the excess (if any) of--
       (i) the number of individuals employed in such State 
     determined for December 2007; over
       (ii) the number of individuals employed in such State 
     determined for December 2008.
       (3) 2010 allocation formula.--
       (A) In general.--The Secretary shall determine the 2010 
     allocation by allocating Federal funds among the States in 
     the proportion that each such State's 2009 unemployment 
     number bears to the aggregate of the 2009 unemployment 
     numbers for all of the States.
       (B) Minimum allocation.--The Secretary shall adjust the 
     allocations under subparagraph (A) for each State to the 
     extent necessary to ensure that no State receives less than 
     0.9 percent of the Federal funds.
       (C) 2009 unemployment number defined.--In this paragraph 
     and with respect to a State, the term ``2009 unemployment 
     number'' means the number of individuals within such State 
     who were determined to be unemployed by the Bureau of Labor 
     Statistics for December 2009.
       (c) Availability of Allocated Amount.--The amount allocated 
     by the Secretary to each participating State under subsection 
     (b) shall be made available to the State as follows:
       (1) Allocated amount generally to be available to state in 
     one-thirds.--
       (A) In general.--The Secretary shall--
       (i) apportion the participating State's allocated amount 
     into thirds;
       (ii) transfer to the participating State the first \1/3\ 
     when the Secretary approves the State for participation under 
     section 3004; and

[[Page 16398]]

       (iii) transfer to the participating State each successive 
     \1/3\ when the State has certified to the Secretary that it 
     has expended, transferred, or obligated 80 percent of the 
     last transferred \1/3\ for Federal contributions to, or for 
     the account of, State programs.
       (B) Authority to withhold pending audit.--The Secretary may 
     withhold the transfer of any successive \1/3\ pending results 
     of a financial audit.
       (C) Inspector general audits.--
       (i) In general.--The Inspector General of the Department of 
     the Treasury shall carry out an audit of the participating 
     State's use of allocated Federal funds transferred to the 
     State.
       (ii) Recoupment of misused transferred funds required.--The 
     allocation agreement between the Secretary and the 
     participating State shall provide that the Secretary shall 
     recoup any allocated Federal funds transferred to the 
     participating State if the results of the audit include a 
     finding that there was an intentional or reckless misuse of 
     transferred funds by the State.
       (iii) Penalty for misstatement.--Any participating State 
     that is found to have intentionally misstated any report 
     issued to the Secretary under the Program shall be ineligible 
     to receive any additional funds under the Program. Funds that 
     had been allocated or that would otherwise have been 
     allocated to such participating State shall be paid into the 
     general fund of the Treasury for reduction of the public 
     debt.
       (iv) Municipalities.--In this subparagraph, the term 
     ``participating State'' shall include a municipality given 
     special permission to participate in the Program, under 
     section 3004(d).
       (D) Exception.--The Secretary may, in the Secretary's 
     discretion, transfer the full amount of the participating 
     State's allocated amount to the State in a single transfer if 
     the participating State applies to the Secretary for approval 
     to use the full amount of the allocation as collateral for a 
     qualifying loan or swap funding facility.
       (2) Transferred amounts.--Each amount transferred to a 
     participating State under this section shall remain available 
     to the State until used by the State as permitted under 
     paragraph (3).
       (3) Use of transferred funds.--Each participating State may 
     use funds transferred to it under this section only--
       (A) for making Federal contributions to, or for the account 
     of, an approved State program;
       (B) as collateral for a qualifying loan or swap funding 
     facility;
       (C) in the case of the first \1/3\ transferred, for paying 
     administrative costs incurred by the State in implementing an 
     approved State program in an amount not to exceed 5 percent 
     of that first \1/3\; or
       (D) in the case of each successive \1/3\ transferred, for 
     paying administrative costs incurred by the State in 
     implementing an approved State program in an amount not to 
     exceed 3 percent of that successive \1/3\.
       (4) Termination of availability of amounts not transferred 
     within 2 years of participation.--Any portion of a 
     participating State's allocated amount that has not been 
     transferred to the State under this section by the end of the 
     2-year period beginning on the date that the Secretary 
     approves the State for participation may be deemed by the 
     Secretary to be no longer allocated to the State and no 
     longer available to the State and shall be returned to the 
     General Fund of the Treasury.
       (5) Transferred amounts not assistance.--The amounts 
     transferred to a participating State under this section shall 
     not be considered assistance for purposes of subtitle V of 
     title 31, United States Code.
       (6) Definitions.--In this section--
       (A) the term ``allocated amount'' means the total amount of 
     Federal funds allocated by the Secretary under subsection (b) 
     to the participating State; and
       (B) the term ``\1/3\'' means--
       (i) in the case of the first \1/3\ and second \1/3\, an 
     amount equal to 33 percent of a participating State's 
     allocated amount; and
       (ii) in the case of the last \1/3\, an amount equal to 34 
     percent of a participating State's allocated amount.

     SEC. 3004. APPROVING STATES FOR PARTICIPATION.

       (a) Application.--Any State may apply to the Secretary for 
     approval to be a participating State under the Program and to 
     be eligible for an allocation of Federal funds under the 
     Program.
       (b) General Approval Criteria.--The Secretary shall approve 
     a State to be a participating State, if--
       (1) a specific department, agency, or political subdivision 
     of the State has been designated to implement a State program 
     and participate in the Program;
       (2) all legal actions necessary to enable such designated 
     department, agency, or political subdivision to implement a 
     State program and participate in the Program have been 
     accomplished;
       (3) the State has filed an application with the Secretary 
     for approval of a State capital access program under section 
     3005 or approval as a State other credit support program 
     under section 3006, in each case within the time period 
     provided in the respective section; and
       (4) the State and the Secretary have executed an allocation 
     agreement that--
       (A) conforms to the requirements of this title;
       (B) ensures that the State program complies with such 
     national standards as are established by the Secretary under 
     section 3009(a)(2);
       (C) sets forth internal control, compliance, and reporting 
     requirements as established by the Secretary, and such other 
     terms and conditions necessary to carry out the purposes of 
     this title, including an agreement by the State to allow the 
     Secretary to audit State programs;
       (D) requires that the State program be fully positioned, 
     within 90 days of the State's execution of the allocation 
     agreement with the Secretary, to act on providing the kind of 
     credit support that the State program was established to 
     provide; and
       (E) includes an agreement by the State to deliver to the 
     Secretary, and update annually, a schedule describing how the 
     State intends to apportion among its State programs the 
     Federal funds allocated to the State.
       (c) Contractual Arrangements for Implementation of State 
     Programs.--A State may be approved to be a participating 
     State, and be eligible for an allocation of Federal funds 
     under the Program, if the State has contractual arrangements 
     for the implementation and administration of its State 
     program with--
       (1) an existing, approved State program administered by 
     another State; or
       (2) an authorized agent of, or entity supervised by, the 
     State, including for-profit and not-for-profit entities.
       (d) Special Permission.--
       (1) Circumstances when a municipality may apply directly.--
     If a State does not, within 60 days after the date of 
     enactment of this Act, file with the Secretary a notice of 
     its intent to apply for approval by the Secretary of a State 
     program or within 9 months after the date of enactment of 
     this Act, file with the Secretary a complete application for 
     approval of a State program, the Secretary may grant to 
     municipalities of that State a special permission that will 
     allow them to apply directly to the Secretary without the 
     State for approval to be participating municipalities.
       (2) Timing requirements applicable to municipalities 
     applying directly.--To qualify for the special permission, a 
     municipality of a State shall be required, within 12 months 
     after the date of enactment of this Act, to file with the 
     Secretary a complete application for approval by the 
     Secretary of a State program.
       (3) Notices of intent and applications from more than 1 
     municipality.--A municipality of a State may combine with 1 
     or more other municipalities of that State to file a joint 
     notice of intent to file and a joint application.
       (4) Approval criteria.--The general approval criteria in 
     paragraphs (2) and (4) shall apply.
       (5) Allocation to municipalities.--
       (A) If more than 3.--If more than 3 municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to the 3 
     municipalities with the largest populations.
       (B) If 3 or fewer.--If 3 or fewer municipalities, or 
     combination of municipalities as provided in paragraph (3), 
     of a State apply for approval by the Secretary to be 
     participating municipalities under this subsection, and the 
     applications meet the approval criteria in paragraph (4), the 
     Secretary shall allocate Federal funds to each applicant 
     municipality or combination of municipalities.
       (6) Apportionment of allocated amount among participating 
     municipalities.--If the Secretary approves municipalities to 
     be participating municipalities under this subsection, the 
     Secretary shall apportion the full amount of the Federal 
     funds that are allocated to that State to municipalities that 
     are approved under this subsection in amounts proportionate 
     to the population of those municipalities, based on the most 
     recent available decennial census.
       (7) Approving state programs for municipalities.--If the 
     Secretary approves municipalities to be participating 
     municipalities under this subsection, the Secretary shall 
     take into account the additional considerations in section 
     3006(d) in making the determination under section 3005 or 
     3006 that the State program or programs to be implemented by 
     the participating municipalities, including a State capital 
     access program, is eligible for Federal contributions to, or 
     for the account of, the State program.

     SEC. 3005. APPROVING STATE CAPITAL ACCESS PROGRAMS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, State capital access program that 
     meets the eligibility criteria in subsection (c) may apply to 
     Secretary to have the State capital access program approved 
     as eligible for Federal contributions to the reserve fund.
       (b) Approval.--The Secretary shall approve such State 
     capital access program as eligible for Federal contributions 
     to the reserve fund if--
       (1) within 60 days after the date of enactment of this Act, 
     the State has filed with the Secretary a notice of intent to 
     apply for approval by the Secretary of a State capital access 
     program;
       (2) within 9 months after the date of enactment of this 
     Act, the State has filed with the Secretary a complete 
     application for approval by the Secretary of a capital access 
     program;
       (3) the State satisfies the requirements of subsections (a) 
     and (b) of section 3004; and
       (4) the State capital access program meets the eligibility 
     criteria in subsection (c).
       (c) Eligibility Criteria for State Capital Access 
     Programs.--For a State capital access program to be approved 
     under this section, that program shall be required to be a 
     program of the State that--

[[Page 16399]]

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

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

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

     SEC. 3006. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE 
                   CREDIT ACCESS AND GUARANTEE INITIATIVES FOR 
                   SMALL BUSINESSES AND MANUFACTURERS.

       (a) Application.--A participating State that establishes a 
     new, or has an existing, credit support program that meets 
     the eligibility criteria in subsection (c) may apply to the 
     Secretary to have the State other credit support program 
     approved as eligible for Federal contributions to, or for the 
     account of, the State program.
       (b) Approval.--The Secretary shall approve such State other 
     credit support program as eligible for Federal contributions 
     to, or for the account of, the program if--
       (1) the Secretary determines that the State satisfies the 
     requirements of paragraphs (1) through (3) of section 
     3005(b);
       (2) the Secretary determines that the State other credit 
     support program meets the eligibility criteria in subsection 
     (c);
       (3) the Secretary determines the State other credit support 
     program to be eligible based on the additional considerations 
     in subsection (d); and
       (4) within 9 months after the date of enactment of this 
     Act, the State has filed with Treasury a complete application 
     for Treasury approval.
       (c) Eligibility Criteria for State Other Credit Support 
     Programs.--For a State other credit support program to be 
     approved under this section, that program shall be required 
     to be a program of the State that--
       (1) can demonstrate that, at a minimum, $1 of public 
     investment by the State program will cause and result in $1 
     of new private credit;
       (2) can demonstrate a reasonable expectation that, when 
     considered with all other State programs of the State, such 
     State programs together have the ability to use amounts of 
     new Federal contributions to, or for the account of, all such 
     programs in the State to cause and result in amounts of new 
     small business lending at least 10 times the new Federal 
     contribution amount;
       (3) for those State other credit support programs that 
     provide their credit support through 1 or more financial 
     institution lenders, requires the financial institution 
     lenders to have a meaningful amount of their own capital 
     resources at risk in their small business lending; and
       (4) uses Federal funds allocated under this title to extend 
     credit support that--
       (A) targets an average borrower size of 500 employees or 
     less;
       (B) does not extend credit support to borrowers that have 
     more than 750 employees;
       (C) targets support towards loans with an average principal 
     amount of $5,000,000 or less; and
       (D) does not extend credit support to loans that exceed a 
     principal amount of $20,000,000.
       (d) Additional Considerations.--In making a determination 
     that a State other credit support program is eligible for 
     Federal contributions to, or for the account of, the State 
     program, the Secretary shall take into account the following 
     additional considerations:
       (1) The anticipated benefits to the State, its businesses, 
     and its residents to be derived from the Federal 
     contributions to, or for the account of, the approved State 
     other credit support program, including the extent to which 
     resulting small business lending will expand economic 
     opportunities.
       (2) The operational capacity, skills, and experience of the 
     management team of the State other credit support program.
       (3) The capacity of the State other credit support program 
     to manage increases in the volume of its small business 
     lending.
       (4) The internal accounting and administrative controls 
     systems of the State other credit support program, and the 
     extent to which they can provide reasonable assurance that 
     funds of the State program are safeguarded against waste, 
     loss, unauthorized use, or misappropriation.
       (5) The soundness of the program design and implementation 
     plan of the State other credit support program.
       (e) Federal Contributions to Approved State Other Credit 
     Support Programs.--A State other credit support program 
     approved under this section will be eligible for receiving 
     Federal contributions to, or for the account of,

[[Page 16400]]

     the State program in an amount consistent with the schedule 
     describing the apportionment of allocated Federal funds among 
     State programs delivered by the State to the Secretary under 
     the allocation agreement.
       (f) Minimum Program Requirements for State Other Credit 
     Support Programs.--
       (1) Fund to prescribe.--The Secretary shall, by regulation 
     or other guidance, prescribe Program requirements for 
     approved State other credit support programs.
       (2) Considerations for fund.--In prescribing minimum 
     Program requirements for approved State other credit support 
     programs, the Secretary shall take into consideration, to the 
     extent the Secretary determines applicable and appropriate, 
     the minimum Program requirements for approved State capital 
     access programs in section 3005(e).

     SEC. 3007. REPORTS.

       (a) Quarterly Use-of-funds Report.--
       (1) In general.--Not later than 30 days after the beginning 
     of each calendar quarter, beginning after the first full 
     calendar quarter to occur after the date the Secretary 
     approves a State for participation, the participating State 
     shall submit to the Secretary a report on the use of Federal 
     funding by the participating State during the previous 
     calendar quarter.
       (2) Report contents.--Each report under this subsection 
     shall--
       (A) indicate the total amount of Federal funding used by 
     the participating State; and
       (B) include a certification by the participating State 
     that--
       (i) the information provided in accordance with 
     subparagraph (A) is accurate;
       (ii) funds continue to be available and legally committed 
     to contributions by the State to, or for the account of, 
     approved State programs, less any amount that has been 
     contributed by the State to, or for the account of, approved 
     State programs subsequent to the State being approved for 
     participation in the Program; and
       (iii) the participating State is implementing its approved 
     State program or programs in accordance with this title and 
     regulations issued under section 3010.
       (b) Annual Report.--Not later than March 31 of each year, 
     beginning March 31, 2011, each participating State shall 
     submit to the Secretary an annual report that shall include 
     the following information:
       (1) The number of borrowers that received new loans 
     originated under the approved State program or programs after 
     the State program was approved as eligible for Federal 
     contributions.
       (2) The total amount of such new loans.
       (3) Breakdowns by industry type, loan size, annual sales, 
     and number of employees of the borrowers that received such 
     new loans.
       (4) The zip code of each borrower that received such a new 
     loan.
       (5) Such other data as the Secretary, in the Secretary's 
     sole discretion, may require to carry out the purposes of the 
     Program.
       (c) Form.--The reports and data filed under subsections (a) 
     and (b) shall be in such form as the Secretary, in the 
     Secretary's sole discretion, may require.
       (d) Termination of Reporting Requirements.--The requirement 
     to submit reports under subsections (a) and (b) shall 
     terminate for a participating State with the submission of 
     the completed reports due on the first March 31 to occur 
     after 5 complete 12-month periods after the State is approved 
     by the Secretary to be a participating State.

     SEC. 3008. REMEDIES FOR STATE PROGRAM TERMINATION OR 
                   FAILURES.

       (a) Remedies.--
       (1) In general.--If any of the events listed in paragraph 
     (2) occur, the Secretary, in the Secretary's discretion, 
     may--
       (A) reduce the amount of Federal funds allocated to the 
     State under the Program; or
       (B) terminate any further transfers of allocated amounts 
     that have not yet been transferred to the State.
       (2) Causal events.--The events referred to in paragraph (1) 
     are--
       (A) termination by a participating State of its 
     participation in the Program;
       (B) failure on the part of a participating State to submit 
     complete reports under section 3007 on a timely basis; or
       (C) noncompliance by the State with the terms of the 
     allocation agreement between the Secretary and the State.
       (b) Deallocated Amounts To Be Reallocated.--If, after 13 
     months, any portion of the amount of Federal funds allocated 
     to a participating State is deemed by the Secretary to be no 
     longer allocated to the State after actions taken by the 
     Secretary under subsection (a)(1), the Secretary shall 
     reallocate that portion among the participating States, 
     excluding the State whose allocated funds were deemed to be 
     no longer allocated, as provided in section 3003(b).

     SEC. 3009. IMPLEMENTATION AND ADMINISTRATION.

       (a) General Authorities and Duties.--The Secretary shall--
       (1) consult with the Administrator of the Small Business 
     Administration and the appropriate Federal banking agencies 
     on the administration of the Program;
       (2) establish minimum national standards for approved State 
     programs;
       (3) provide technical assistance to States for starting 
     State programs and generally disseminate best practices;
       (4) manage, administer, and perform necessary program 
     integrity functions for the Program; and
       (5) ensure adequate oversight of the approved State 
     programs, including oversight of the cash flows, performance, 
     and compliance of each approved State program.
       (b) Appropriations.--There is hereby appropriated to the 
     Secretary, out of funds in the Treasury not otherwise 
     appropriated, $1,500,000,000 to carry out the Program, 
     including to pay reasonable costs of administering the 
     Program.
       (c) Termination of Secretary's Program Administration 
     Functions.--The authorities and duties of the Secretary to 
     implement and administer the Program shall terminate at the 
     end of the 7-year period beginning on the date of enactment 
     of this Act.
       (d) Expedited Contracting.--During the 1-year period 
     beginning on the date of enactment of this Act, the Secretary 
     may enter into contracts without regard to any other 
     provision of law regarding public contracts, for purposes of 
     carrying out this title.

     SEC. 3010. REGULATIONS.

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

     SEC. 3011. OVERSIGHT AND AUDITS.

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

             TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS

                Subtitle A--Small Business Lending Fund

     SEC. 4101. PURPOSE.

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

     SEC. 4102. DEFINITIONS.

       For purposes of this subtitle:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means--
       (A) the Committee on Small Business and Entrepreneurship, 
     the Committee on Agriculture, Nutrition, and Forestry, the 
     Committee on Banking, Housing, and Urban Affairs, the 
     Committee on Finance, the Committee on the Budget, and the 
     Committee on Appropriations of the Senate; and
       (B) the Committee on Small Business, the Committee on 
     Agriculture, the Committee on Financial Services, the 
     Committee on Ways and Means, the Committee on the Budget, and 
     the Committee on Appropriations of the House of 
     Representatives.
       (2) Appropriate federal banking agency.--The term 
     ``appropriate Federal banking agency'' has the meaning given 
     such term under section 3(q) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1813(q)).
       (3) Bank holding company.--The term ``bank holding 
     company'' has the meaning given such term under section 
     2(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841(2)(a)(1)).
       (4) Call report.--The term ``call report'' means--

[[Page 16401]]

       (A) reports of Condition and Income submitted to the Office 
     of the Comptroller of the Currency, the Board of Governors of 
     the Federal Reserve System, and the Federal Deposit Insurance 
     Corporation;
       (B) the Office of Thrift Supervision Thrift Financial 
     Report;
       (C) any report that is designated by the Office of the 
     Comptroller of the Currency, the Board of Governors of the 
     Federal Reserve System, the Federal Deposit Insurance 
     Corporation, or the Office of Thrift Supervision, as 
     applicable, as a successor to any report referred to in 
     subparagraph (A) or (B);
       (D) reports of Condition and Income as designated through 
     guidance developed by the Secretary, in consultation with the 
     Director of the Community Development Financial Institutions 
     Fund; and
       (E) with respect to an eligible institution for which no 
     report exists that is described under subparagraph (A), (B), 
     (C), or (D), such other report or set of information as the 
     Secretary, in consultation with the Administrator of the 
     Small Business Administration, may prescribe.
       (5) CDCI.--The term ``CDCI'' means the Community 
     Development Capital Initiative created by the Secretary under 
     the Troubled Asset Relief Program established by the 
     Emergency Economic Stabilization Act of 2008.
       (6) CDCI investment.--The term ``CDCI investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CDCI that has not been repaid.
       (7) CDFI; community development financial institution.--The 
     terms ``CDFI'' and ``community development financial 
     institution'' have the meaning given the term ``community 
     development financial institution'' under the Riegle 
     Community Development and Regulatory Improvement Act of 1994.
       (8) CDLF; community development loan fund.--The terms 
     ``CDLF'' and ``community development loan fund'' mean any 
     entity that--
       (A) is certified by the Department of the Treasury as a 
     community development financial institution loan fund;
       (B) is exempt from taxation under the Internal Revenue Code 
     of 1986; and
       (C) had assets less than or equal to $10,000,000,000 as of 
     the end of the fourth quarter of calendar year 2009.
       (9) CPP.--The term ``CPP'' means the Capital Purchase 
     Program created by the Secretary under the Troubled Asset 
     Relief Program established by the Emergency Economic 
     Stabilization Act of 2008.
       (10) CPP investment.--The term ``CPP investment'' means, 
     with respect to any eligible institution, the principal 
     amount of any investment made by the Secretary in such 
     eligible institution under the CPP that has not been repaid.
       (11) Eligible institution.--The term ``eligible 
     institution'' means--
       (A) any insured depository institution, which--
       (i) is not controlled by a bank holding company or savings 
     and loan holding company that is also an eligible 
     institution;
       (ii) has total assets of equal to or less than 
     $10,000,000,000, as reported in the call report of the 
     insured depository institution as of the end of the fourth 
     quarter of calendar year 2009; and
       (iii) is not directly or indirectly controlled by any 
     company or other entity that has total consolidated assets of 
     more than $10,000,000,000, as so reported;
       (B) any bank holding company which has total consolidated 
     assets of equal to or less than $10,000,000,000, as reported 
     in the call report of the bank holding company as of the end 
     of the fourth quarter of calendar year 2009;
       (C) any savings and loan holding company which has total 
     consolidated assets of equal to or less than $10,000,000,000, 
     as reported in the call report of the savings and loan 
     holding company as of the end of the fourth quarter of 
     calendar year 2009; and
       (D) any community development financial institution loan 
     fund which has total assets of equal to or less than 
     $10,000,000,000, as reported in audited financial statements 
     for the fiscal year of the community development financial 
     institution loan fund that ends in calendar year 2009.
       (12) Fund.--The term ``Fund'' means the Small Business 
     Lending Fund established under section 4103(a)(1).
       (13) Insured depository institution.--The term ``insured 
     depository institution'' has the meaning given such term 
     under section 3(c)(2) of the Federal Deposit Insurance Act 
     (12 U.S.C. 1813(c)(2)).
       (14) Minority-owned and women-owned business.--The terms 
     ``minority-owned business'' and ``women-owned business'' 
     shall have the meaning given the terms ``minority-owned 
     business'' and ``women's business'', respectively, under 
     section 21A(r)(4) of the Federal Home Loan Bank Act (12 
     U.S.C. 1441A(r)(4)).
       (15) Program.--The term ``Program'' means the Small 
     Business Lending Fund Program authorized under section 
     4103(a)(2).
       (16) Savings and loan holding company.--The term ``savings 
     and loan holding company'' has the meaning given such term 
     under section 10(a)(1)(D) of the Home Owners' Loan Act (12 
     U.S.C. 1467a(a)(1)(D)).
       (17) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (18) Small business lending.--
       (A) In general.--The term ``small business lending'' means 
     lending, as defined by and reported in an eligible 
     institutions' quarterly call report, where each loan 
     comprising such lending is one of the following types:
       (i) Commercial and industrial loans.
       (ii) Owner-occupied nonfarm, nonresidential real estate 
     loans.
       (iii) Loans to finance agricultural production and other 
     loans to farmers.
       (iv) Loans secured by farmland.
       (B) Exclusion.--No loan that has an original amount greater 
     than $10,000,000 or that goes to a business with more than 
     $50,000,000 in revenues shall be included in the measure.
       (C) Treatment of holding companies.--In the case of 
     eligible institutions that are bank holding companies or 
     savings and loan holding companies having one or more insured 
     depository institution subsidiaries, small business lending 
     shall be measured based on the combined small business 
     lending reported in the call report of the insured depository 
     institution subsidiaries.
       (19) Veteran-owned business.--
       (A) The term ``veteran-owned business'' means a business--
       (i) more than 50 percent of the ownership or control of 
     which is held by 1 or more veterans;
       (ii) more than 50 percent of the net profit or loss of 
     which accrues to 1 or more veterans; and
       (iii) a significant percentage of senior management 
     positions of which are held by veterans.
       (B) For purposes of this paragraph, the term ``veteran'' 
     has the meaning given such term in section 101(2) of title 
     38, United States Code.

     SEC. 4103. SMALL BUSINESS LENDING FUND.

       (a) Fund and Program.--
       (1) Fund established.--There is established in the Treasury 
     of the United States a fund to be known as the ``Small 
     Business Lending Fund'', which shall be administered by the 
     Secretary.
       (2) Programs authorized.--The Secretary is authorized to 
     establish the Small Business Lending Fund Program for using 
     the Fund consistent with this subtitle.
       (b) Use of Fund.--
       (1) In general.--Subject to paragraph (2), the Fund shall 
     be available to the Secretary, without further appropriation 
     or fiscal year limitation, for the costs of purchases 
     (including commitments to purchase), and modifications of 
     such purchases, of preferred stock and other financial 
     instruments from eligible institutions on such terms and 
     conditions as are determined by the Secretary in accordance 
     with this subtitle. For purposes of this paragraph and with 
     respect to an eligible institution, the term ``other 
     financial instruments'' shall include only debt instruments 
     for which such eligible institution is fully liable or equity 
     equivalent capital of the eligible institution. Such debt 
     instruments may be subordinated to the claims of other 
     creditors of the eligible institution.
       (2) Maximum purchase limit.--The aggregate amount of 
     purchases (and commitments to purchase) made pursuant to 
     paragraph (1) may not exceed $30,000,000,000.
       (3) Proceeds used to pay down public debt.--All funds 
     received by the Secretary in connection with purchases made 
     pursuant to paragraph (1), including interest payments, 
     dividend payments, and proceeds from the sale of any 
     financial instrument, shall be paid into the general fund of 
     the Treasury for reduction of the public debt.
       (4) Limitation on purchases from cdlfs.--
       (A) In general.--Not more than 1 percent of the maximum 
     purchase limit of the Program, pursuant to paragraph (2), may 
     be used to make purchases from community development loan 
     funds.
       (B) Eligibility standards.--The Secretary, in consultation 
     with the Community Development Financial Institutions Fund, 
     shall develop eligibility criteria to determine the financial 
     ability of a CDLF to participate in the Program and repay the 
     investment. Such criteria shall include the following:
       (i) Ratio of net assets to total assets is at least 20 
     percent.
       (ii) Ratio of loan loss reserves to loans and leases 90 
     days or more delinquent (including loans sold with full 
     recourse) is at least 30 percent.
       (iii) Positive net income measured on a 3-year rolling 
     average.
       (iv) Operating liquidity ratio of at least 1.0 for the 4 
     most recent quarters and for one or both of the two preceding 
     years.
       (v) Ratio of loans and leases 90 days or more delinquent 
     (including loans sold with full recourse) to total equity 
     plus loan loss reserves is less than 40 percent.
       (C) Requirement to submit audited financial statements.--
     CDLFs participating in the Program shall submit audited 
     financial statements to the Secretary, have a clean audit 
     opinion, and have at least 3 years of operating experience.
       (c) Credits to the Fund.--There shall be credited to the 
     Fund amounts made available pursuant to section 4108, to the 
     extent provided by appropriations Acts.
       (d) Terms.--
       (1) Application.--
       (A) Institutions with assets of $1,000,000,000 or less.--
     Eligible institutions having total assets equal to or less 
     than $1,000,000,000, as reported in a call report as of the 
     end of the fourth quarter of calendar year 2009, may apply to 
     receive a capital investment from the Fund in an amount not 
     exceeding 5 percent of risk-weighted assets, as reported in 
     the call report immediately preceding the date of 
     application, less the amount of any CDCI investment and any 
     CPP investment.
       (B) Institutions with assets of more than $1,000,000,000 
     and less than or equal to

[[Page 16402]]

     $10,000,000,000.--Eligible institutions having total assets 
     of more than $1,000,000,000 but less than $10,000,000,000, as 
     of the end of the fourth quarter of calendar year 2009, may 
     apply to receive a capital investment from the Fund in an 
     amount not exceeding 3 percent of risk-weighted assets, as 
     reported in the call report immediately preceding the date of 
     application, less the amount of any CDCI investment and any 
     CPP investment.
       (C) Treatment of holding companies.--In the case of an 
     eligible institution that is a bank holding company or a 
     savings and loan holding company having one or more insured 
     depository institution subsidiaries, total assets shall be 
     measured based on the combined total assets reported in the 
     call report of the insured depository institution 
     subsidiaries as of the end of the fourth quarter of calendar 
     year 2009 and risk-weighted assets shall be measured based on 
     the combined risk-weighted assets of the insured depository 
     institution subsidiaries as reported in the call report 
     immediately preceding the date of application.
       (D) Treatment of applicants that are institutions 
     controlled by holding companies.--If an eligible institution 
     that applies to receive a capital investment under the 
     Program is under the control of a bank holding company or a 
     savings and loan holding company, then the Secretary may use 
     the Fund to purchase preferred stock or other financial 
     instruments from the top-tier bank holding company or savings 
     and loan holding company of such eligible institution, as 
     applicable. For purposes of this subparagraph, the term 
     ``control'' with respect to a bank holding company shall have 
     the same meaning as in section 2(a)(2) of the Bank Holding 
     Company Act of 1956 (12 U.S.C. 1841(2)(a)(2)). For purposes 
     of this subparagraph, the term ``control'' with respect to a 
     savings and loan holding company shall have the same meaning 
     as in 10(a)(2) of the Home Owners' Loan Act (12 U.S.C. 
     1467a(a)(2)).
       (E) Requirement to provide a small business lending plan.--
     At the time that an applicant submits an application to the 
     Secretary for a capital investment under the Program, the 
     applicant shall deliver to the appropriate Federal banking 
     agency, and, for applicants that are State-chartered banks, 
     to the appropriate State banking regulator, a small business 
     lending plan describing how the applicant's business strategy 
     and operating goals will allow it to address the needs of 
     small businesses in the areas it serves, as well as a plan to 
     provide linguistically and culturally appropriate outreach, 
     where appropriate. In the case of eligible institutions that 
     are community development loan funds, this plan shall be 
     submitted to the Secretary. This plan shall be confidential 
     supervisory information.
       (F) Treatment of applicants that are community development 
     loan funds.--Eligible institutions that are community 
     development loan funds may apply to receive a capital 
     investment from the Fund in an amount not exceeding 5 percent 
     of total assets, as reported in the audited financial 
     statements for the fiscal year of the eligible institution 
     that ends in calendar year 2009.
       (2) Consultation with regulators.--For each eligible 
     institution that applies to receive a capital investment 
     under the Program, the Secretary shall--
       (A) consult with the appropriate Federal banking agency or, 
     in the case of an eligible institution that is a 
     nondepository community development financial institution, 
     the Community Development Financial Institution Fund, for the 
     eligible institution, to determine whether the eligible 
     institution may receive such capital investment;
       (B) in the case of an eligible institution that is a State-
     chartered bank, consider any views received from the State 
     banking regulator of the State of the eligible institution 
     regarding the financial condition of the eligible 
     institution; and
       (C) in the case of a community development financial 
     institution loan fund, consult with the Community Development 
     Financial Institution Fund.
       (3) Consideration of matched private investments.--
       (A) In general.--For an eligible institution that applies 
     to receive a capital investment under the Program, if the 
     entity to be consulted under paragraph (2) would not 
     otherwise recommend the eligible institution to receive the 
     capital investment, the Secretary, in consultation with the 
     entity to be so consulted, may consider whether the entity to 
     be consulted would recommend the eligible institution to 
     receive a capital investment based on the financial condition 
     of the institution if the conditions in subparagraph (B) are 
     satisfied.
       (B) Conditions.--The conditions referred to in subparagraph 
     (A) are as follows:
       (i) Capital sources.--The eligible institution shall 
     receive capital both under the Program and from private, 
     nongovernment investors.
       (ii) Amount of capital.--The amount of capital to be 
     received under the Program shall not exceed 3 percent of 
     risk-weighted assets, as reported in the call report 
     immediately preceding the date of application, less the 
     amount of any CDCI investment and any CPP investment.
       (iii) Terms.--The amount of capital to be received from 
     private, nongovernment investors shall be--

       (I) equal to or greater than 100 percent of the capital to 
     be received under the Program; and
       (II) subordinate to the capital investment made by the 
     Secretary under the Program.

       (4) Ineligibility of institutions on fdic problem bank 
     list.--
       (A) In general.--An eligible institution may not receive 
     any capital investment under the Program, if--
       (i) such institution is on the FDIC problem bank list; or
       (ii) such institution has been removed from the FDIC 
     problem bank list for less than 90 days.
       (B) Construction.--Nothing in subparagraph (A) shall be 
     construed as limiting the discretion of the Secretary to deny 
     the application of an eligible institution that is not on the 
     FDIC problem bank list.
       (C) FDIC problem bank list defined.--For purposes of this 
     paragraph, the term ``FDIC problem bank list'' means the list 
     of depository institutions having a current rating of 4 or 5 
     under the Uniform Financial Institutions Rating System, or 
     such other list designated by the Federal Deposit Insurance 
     Corporation.
       (5) Incentives to lend.--
       (A) Requirements on preferred stock and other financial 
     instruments.--Any preferred stock or other financial 
     instrument issued to Treasury by an eligible institution 
     receiving a capital investment under the Program shall 
     provide that--
       (i) the rate at which dividends or interest are payable 
     shall be 5 percent per annum initially;
       (ii) within the first 2 years after the date of the capital 
     investment under the Program, the rate may be adjusted based 
     on the amount of an eligible institution's small business 
     lending. Changes in the amount of small business lending 
     shall be measured against the average amount of small 
     business lending reported by the eligible institution in its 
     call reports for the 4 full quarters immediately preceding 
     the date of enactment of this Act, minus adjustments from 
     each quarterly balance in respect of--

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

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

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

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

[[Page 16403]]

     through (F), to take into account any differential tax 
     treatment of securities issued by such eligible institution. 
     For purpose of this subparagraph, the term ``S corporation'' 
     has the same meaning as in section 1361(a) of the Internal 
     Revenue Code of 1986.
       (H) Repayment deadline.--The capital investment received by 
     an eligible institution under the Program shall be evidenced 
     by preferred stock or other financial instrument that--
       (i) includes, as a term and condition, that the capital 
     investment will--

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

       (ii) provides that the term and condition described under 
     clause (i) shall not apply if the application of that term 
     and condition would adversely affect the capital treatment of 
     the stock or financial instrument under current or successor 
     applicable capital provisions compared to a capital 
     instrument with identical terms other than the term and 
     condition described under clause (i).
       (I) Requirements on financial instruments issued by a 
     community development financial institution loan fund.--Any 
     equity equivalent capital issued to the Treasury by a 
     community development loan fund receiving a capital 
     investment under the Program shall provide that the rate at 
     which interest is payable shall be 2 percent per annum for 8 
     years. After 8 years, the rate at which interest is payable 
     shall be 9 percent.
       (6) Additional incentives to repay.--The Secretary may, by 
     regulation or guidance issued under section 4104(9), 
     establish repayment incentives in addition to the incentive 
     in paragraph (5)(E) that will apply to new capital 
     investments in a manner that the Secretary determines to be 
     consistent with the purposes of this subtitle.
       (7) Capital purchase program refinance.--
       (A) In general.--The Secretary shall, in a manner that the 
     Secretary determines to be consistent with the purposes of 
     this subtitle, issue regulations and other guidance to permit 
     eligible institutions to refinance securities issued to 
     Treasury under the CDCI and the CPP for securities to be 
     issued under the Program.
       (B) Prohibition on participation by non-paying cpp 
     participants.--Subparagraph (A) shall not apply to any 
     eligible institution that has missed more than one dividend 
     payment due under the CPP. For purposes of this subparagraph, 
     a CPP dividend payment that is submitted within 60 days of 
     the due date of such payment shall not be considered a missed 
     dividend payment.
       (8) Outreach to minorities, women, and veterans.--The 
     Secretary shall require eligible institutions receiving 
     capital investments under the Program to provide 
     linguistically and culturally appropriate outreach and 
     advertising in the applicant pool describing the availability 
     and application process of receiving loans from the eligible 
     institution that are made possible by the Program through the 
     use of print, radio, television or electronic media outlets 
     which target organizations, trade associations, and 
     individuals that--
       (A) represent or work within or are members of minority 
     communities;
       (B) represent or work with or are women; and
       (C) represent or work with or are veterans.
       (9) Additional terms.--The Secretary may, by regulation or 
     guidance issued under section 4104(9), make modifications 
     that will apply to new capital investments in order to manage 
     risks associated with the administration of the Fund in a 
     manner consistent with the purposes of this subtitle.
       (10) Minimum underwriting standards.--The appropriate 
     Federal banking agency for an eligible institution that 
     receives funds under the Program shall within 60 days issue 
     guidance regarding prudent underwriting standards that must 
     be used for loans made by the eligible institution using such 
     funds.

     SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY.

       The Secretary may take such actions as the Secretary deems 
     necessary to carry out the authorities in this subtitle, 
     including, without limitation, the following:
       (1) The Secretary may use the services of any agency or 
     instrumentality of the United States or component thereof on 
     a reimbursable basis, and any such agency or instrumentality 
     or component thereof is authorized to provide services as 
     requested by the Secretary using all authorities vested in or 
     delegated to that agency, instrumentality, or component.
       (2) The Secretary may enter into contracts, including 
     contracts for services authorized by section 3109 of title 5, 
     United States Code.
       (3) The Secretary may designate any bank, savings 
     association, trust company, security broker or dealer, asset 
     manager, or investment adviser as a financial agent of the 
     Federal Government and such institution shall perform all 
     such reasonable duties related to this subtitle as financial 
     agent of the Federal Government as may be required. The 
     Secretary shall have authority to amend existing agreements 
     with financial agents, entered into during the 2-year period 
     before the date of enactment of this Act, to perform 
     reasonable duties related to this subtitle.
       (4) The Secretary may exercise any rights received in 
     connection with any preferred stock or other financial 
     instruments or assets purchased or acquired pursuant to the 
     authorities granted under this subtitle.
       (5) Subject to section 4103(b)(3), the Secretary may manage 
     any assets purchased under this subtitle, including revenues 
     and portfolio risks therefrom.
       (6) The Secretary may sell, dispose of, transfer, exchange 
     or enter into securities loans, repurchase transactions, or 
     other financial transactions in regard to, any preferred 
     stock or other financial instrument or asset purchased or 
     acquired under this subtitle, upon terms and conditions and 
     at a price determined by the Secretary.
       (7) The Secretary may manage or prohibit conflicts of 
     interest that may arise in connection with the administration 
     and execution of the authorities provided under this 
     subtitle.
       (8) The Secretary may establish and use vehicles, subject 
     to supervision by the Secretary, to purchase, hold, and sell 
     preferred stock or other financial instruments and issue 
     obligations.
       (9) The Secretary may, in consultation with the 
     Administrator of the Small Business Administration, issue 
     such regulations and other guidance as may be necessary or 
     appropriate to define terms or carry out the authorities or 
     purposes of this subtitle.

     SEC. 4105. CONSIDERATIONS.

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

     SEC. 4106. REPORTS.

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

     SEC. 4107. OVERSIGHT AND AUDITS.

       (a) Inspector General Oversight.--The Inspector General of 
     the Department of the Treasury shall conduct, supervise, and 
     coordinate audits and investigations of the Program through 
     the Office of Small Business Lending Fund Program Oversight 
     established under subsection (b).
       (b) Office of Small Business Lending Fund Program 
     Oversight.--
       (1) Establishment.--There is hereby established within the 
     Office of the Inspector General of the Department of the 
     Treasury a new office to be named the ``Office of Small 
     Business Lending Fund Program Oversight'' to provide 
     oversight of the Program.
       (2) Leadership.--The Inspector General shall appoint a 
     Special Deputy Inspector General for SBLF Program Oversight 
     to lead the Office, with commensurate staff, who shall report 
     directly to the Inspector General and who shall be 
     responsible for the performance of all auditing and 
     investigative activities relating to the Program.
       (3) Reporting.--
       (A) In general.--The Inspector General shall issue a report 
     no less than two times a year to the Congress and the 
     Secretary devoted to the oversight provided by the Office, 
     including any recommendations for improvements to the 
     Program.
       (B) Recommendations.--With respect to any deficiencies 
     identified in a report under subparagraph (A), the Secretary 
     shall either--
       (i) take actions to address such deficiencies; or
       (ii) certify to the appropriate committees of Congress that 
     no action is necessary or appropriate.

[[Page 16404]]

       (4) Coordination.--The Inspector General, in maximizing the 
     effectiveness of the Office, shall work with other Offices of 
     Inspector General, as appropriate, to minimize duplication of 
     effort and ensure comprehensive oversight of the Program.
       (5) Termination.--The Office shall terminate at the end of 
     the 6-month period beginning on the date on which all capital 
     investments are repaid under the Program or the date on which 
     the Secretary determines that any remaining capital 
     investments will not be repaid.
       (6) Definitions.--For purposes of this subsection:
       (A) Office.--The term ``Office'' means the Office of Small 
     Business Lending Fund Program Oversight established under 
     paragraph (1).
       (B) Inspector general.--The term ``Inspector General'' 
     means the Inspector General of the Department of the 
     Treasury.
       (c) GAO Audit.--The Comptroller General of the United 
     States shall perform an annual audit of the Program and issue 
     a report to the appropriate committees of Congress containing 
     the results of such audit.
       (d) Required Certifications.--
       (1) Eligible institution certification.--Each eligible 
     institution that participates in the Program must certify 
     that such institution is in compliance with the requirements 
     of section 103.121 of title 31, Code of Federal Regulations, 
     a regulation that, at a minimum, requires financial 
     institutions, as that term is defined in 31 U.S.C. 5312(a)(2) 
     and (c)(1)(A), to implement reasonable procedures to verify 
     the identity of any person seeking to open an account, to the 
     extent reasonable and practicable, maintain records of the 
     information used to verify the person's identity, and 
     determine whether the person appears on any lists of known or 
     suspected terrorists or terrorist organizations provided to 
     the financial institution by any government agency.
       (2) Loan recipients.--With respect to funds received by an 
     eligible institution under the Program, any business 
     receiving a loan from the eligible institution using such 
     funds after the date of the enactment of this Act shall 
     certify to such eligible institution that the principals of 
     such business have not been convicted of a sex offense 
     against a minor (as such terms are defined in section 111 of 
     the Sex Offender Registration and Notification Act (42 U.S.C. 
     16911)).
       (e) Prohibition on Pornography.--None of the funds made 
     available under this subtitle may be used to pay the salary 
     of any individual engaged in activities related to the 
     Program who has been officially disciplined for violations of 
     subpart G of the Standards of Ethical Conduct for Employees 
     of the Executive Branch for viewing, downloading, or 
     exchanging pornography, including child pornography, on a 
     Federal Government computer or while performing official 
     Federal Government duties.

     SEC. 4108. CREDIT REFORM; FUNDING.

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

     SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORITIES.

       (a) Termination of Investment Authority.--The authority to 
     make capital investments in eligible institutions, including 
     commitments to purchase preferred stock or other instruments, 
     provided under this subtitle shall terminate 1 year after the 
     date of enactment of this Act.
       (b) Continuation of Other Authorities.--The authorities of 
     the Secretary under section 4104 shall not be limited by the 
     termination date in subsection (a).

     SEC. 4110. PRESERVATION OF AUTHORITY.

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

     SEC. 4111. ASSURANCES.

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

     SEC. 4112. STUDY AND REPORT WITH RESPECT TO WOMEN-OWNED, 
                   VETERAN-OWNED, AND MINORITY-OWNED BUSINESSES.

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

     SEC. 4113. SENSE OF CONGRESS.

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

                      Subtitle B--Other Provisions

          PART I--SMALL BUSINESS EXPORT PROMOTION INITIATIVES

     SEC. 4221. SHORT TITLE.

       This part may be cited as the ``Export Promotion Act of 
     2010''.

     SEC. 4222. GLOBAL BUSINESS DEVELOPMENT AND PROMOTION 
                   ACTIVITIES OF THE DEPARTMENT OF COMMERCE.

       (a) Increase in Employees With Responsibility for Global 
     Business Development and Promotion Activities.--
       (1) In general.--During the 24-month period beginning on 
     the date of the enactment of this Act, the Secretary of 
     Commerce shall increase the number of full-time departmental 
     employees whose primary responsibilities involve promoting or 
     facilitating participation by United States businesses in the 
     global marketplace and facilitating the entry into, or 
     expansion of, such participation by United States businesses. 
     In carrying out this subsection, the Secretary shall ensure 
     that--
       (A) the cohort of such employees is increased by not less 
     than 80 persons; and
       (B) a substantial portion of the increased cohort is 
     stationed outside the United States.
       (2) Enhanced focus on united states small- and medium-sized 
     businesses.--In carrying out this subsection, the Secretary 
     shall take such action as may be necessary to ensure that the 
     activities of the Department of Commerce relating to 
     promoting and facilitating participation by United States 
     businesses in the global marketplace include promoting and 
     facilitating such participation by small and medium-sized 
     businesses in the United States.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated to the Secretary for each of the fiscal 
     years 2011 and 2012 such sums as may be necessary to carry 
     out this section.
       (b) Additional Funding for Global Business Development and 
     Promotion Activities of the Department of Commerce.--
       (1) In general.--There are authorized to be appropriated to 
     the Secretary of Commerce for the period beginning on the 
     date of the enactment of this Act and ending 18 months 
     thereafter, $30,000,000 to promote or facilitate 
     participation by United States businesses in the global 
     marketplace and facilitating the entry into, or expansion of, 
     such participation by United States businesses.
       (2) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by paragraph (1), the Secretary 
     of Commerce shall give preference to activities that--
       (A) assist small- and medium-sized businesses in the United 
     States; and
       (B) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

     SEC. 4223. ADDITIONAL FUNDING TO IMPROVE ACCESS TO GLOBAL 
                   MARKETS FOR RURAL BUSINESSES.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Commerce $5,000,000 for each of the fiscal 
     years 2011 and 2012 for improving access to the global 
     marketplace for goods and services provided by rural 
     businesses in the United States.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by subsection (a), the 
     Secretary of Commerce shall give preference to activities 
     that--
       (1) assist small- and medium-sized businesses in the United 
     States; and
       (2) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

     SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Commerce $11,000,000 for the period 
     beginning on the date of the enactment of this Act and ending 
     18 months thereafter, to expand ExporTech, a joint program of 
     the Hollings Manufacturing Partnership Program and the Export 
     Assistance Centers of the Department of Commerce.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by subsection (a), the 
     Secretary of Commerce shall give preference to activities 
     that--
       (1) assist small- and medium-sized businesses in the United 
     States; and
       (2) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

     SEC. 4225. ADDITIONAL FUNDING FOR THE MARKET DEVELOPMENT 
                   COOPERATOR PROGRAM OF THE DEPARTMENT OF 
                   COMMERCE.

       (a) In General.--There are authorized to be appropriated to 
     the Secretary of Commerce for

[[Page 16405]]

     the period beginning on the date of the enactment of this Act 
     and ending 18 months thereafter, $15,000,000 for the 
     Manufacturing and Services unit of the International Trade 
     Administration--
       (1) to establish public-private partnerships under the 
     Market Development Cooperator Program of the International 
     Trade Administration; and
       (2) to underwrite a portion of the start-up costs for new 
     projects carried out under that Program to strengthen the 
     competitiveness and market share of United States industry, 
     not to exceed, for each such project, the lesser of--
       (A) \1/3\ of the total start-up costs for the project; or
       (B) $500,000.
       (b) Requirements.--In obligating and expending the funds 
     authorized to be appropriated by subsection (a), the 
     Secretary of Commerce shall give preference to activities 
     that--
       (1) assist small- and medium-sized businesses in the United 
     States; and
       (2) the Secretary determines will create or sustain the 
     greatest number of jobs in the United States and obtain the 
     maximum return on investment.

     SEC. 4226. HOLLINGS MANUFACTURING PARTNERSHIP PROGRAM; 
                   TECHNOLOGY INNOVATION PROGRAM.

       (a) Hollings Manufacturing Partnership Program.--Section 
     25(f) of the National Institute of Standards and Technology 
     Act (15 U.S.C. 278k(f)) is amended by adding at the end the 
     following:
       ``(7) Global marketplace projects.--In making awards under 
     this subsection, the Director, in consultation with the 
     Manufacturing Extension Partnership Advisory Board and the 
     Secretary of Commerce, may--
       ``(A) take into consideration whether an application has 
     significant potential for enhancing the competitiveness of 
     small and medium-sized United States manufacturers in the 
     global marketplace; and
       ``(B) give a preference to applications for such projects 
     to the extent the Director deems appropriate, taking into 
     account the broader purposes of this subsection.''.
       (b) Technology Innovation Program.--In awarding grants, 
     cooperative agreements, or contracts under section 28 of the 
     National Institute of Standards and Technology Act (15 U.S.C. 
     278n), in addition to the award criteria set forth in 
     subsection (c) of that section, the Director of the National 
     Institute of Standards and Technology may take into 
     consideration whether an application has significant 
     potential for enhancing the competitiveness of small- and 
     medium-sized businesses in the United States in the global 
     marketplace. The Director shall consult with the Technology 
     Innovation Program Advisory Board and the Secretary of 
     Commerce in implementing this subsection.

     SEC. 4227. SENSE OF THE SENATE CONCERNING FEDERAL 
                   COLLABORATION WITH STATES ON EXPORT PROMOTION 
                   ISSUES.

       It is the sense of the Senate that the Secretary of 
     Commerce should enhance Federal collaboration with the States 
     on export promotion issues by--
       (1) providing the necessary training to the staff at State 
     international trade agencies to enable them to assist the 
     United States and Foreign Commercial Service (established by 
     section 2301 of the Export Enhancement Act of 1988 (15 U.S.C. 
     4721)) in providing counseling and other export services to 
     businesses in their communities; and
       (2) entering into agreements with State international trade 
     agencies for those agencies to deliver export promotion 
     services in their local communities in order to extend the 
     outreach of United States and Foreign Commercial Service 
     programs.

     SEC. 4228. REPORT ON TARIFF AND NONTARIFF BARRIERS.

       Not later than 90 days after the date of the enactment of 
     this Act, the Secretary of Commerce, in consultation with the 
     United States Trade Representative and other appropriate 
     entities, shall report to Congress on the tariff and 
     nontariff barriers imposed by Colombia, the Republic of 
     Korea, and Panama with respect to exports of articles from 
     the United States, including articles exported or produced by 
     small- and medium-sized businesses in the United States.

                        PART II--MEDICARE FRAUD

     SEC. 4241. USE OF PREDICTIVE MODELING AND OTHER ANALYTICS 
                   TECHNOLOGIES TO IDENTIFY AND PREVENT WASTE, 
                   FRAUD, AND ABUSE IN THE MEDICARE FEE-FOR-
                   SERVICE PROGRAM.

       (a) Use in the Medicare Fee-for-service Program.--The 
     Secretary shall use predictive modeling and other analytics 
     technologies (in this section referred to as ``predictive 
     analytics technologies'') to identify improper claims for 
     reimbursement and to prevent the payment of such claims under 
     the Medicare fee-for-service program.
       (b) Predictive Analytics Technologies Requirements.--The 
     predictive analytics technologies used by the Secretary 
     shall--
       (1) capture Medicare provider and Medicare beneficiary 
     activities across the Medicare fee-for-service program to 
     provide a comprehensive view across all providers, 
     beneficiaries, and geographies within such program in order 
     to--
       (A) identify and analyze Medicare provider networks, 
     provider billing patterns, and beneficiary utilization 
     patterns; and
       (B) identify and detect any such patterns and networks that 
     represent a high risk of fraudulent activity;
       (2) be integrated into the existing Medicare fee-for-
     service program claims flow with minimal effort and maximum 
     efficiency;
       (3) be able to--
       (A) analyze large data sets for unusual or suspicious 
     patterns or anomalies or contain other factors that are 
     linked to the occurrence of waste, fraud, or abuse;
       (B) undertake such analysis before payment is made; and
       (C) prioritize such identified transactions for additional 
     review before payment is made in terms of the likelihood of 
     potential waste, fraud, and abuse to more efficiently utilize 
     investigative resources;
       (4) capture outcome information on adjudicated claims for 
     reimbursement to allow for refinement and enhancement of the 
     predictive analytics technologies on the basis of such 
     outcome information, including post-payment information about 
     the eventual status of a claim; and
       (5) prevent the payment of claims for reimbursement that 
     have been identified as potentially wasteful, fraudulent, or 
     abusive until such time as the claims have been verified as 
     valid.
       (c) Implementation Requirements.--
       (1) Request for proposals.--Not later than January 1, 2011, 
     the Secretary shall issue a request for proposals to carry 
     out this section during the first year of implementation. To 
     the extent the Secretary determines appropriate--
       (A) the initial request for proposals may include 
     subsequent implementation years; and
       (B) the Secretary may issue additional requests for 
     proposals with respect to subsequent implementation years.
       (2) First implementation year.--The initial request for 
     proposals issued under paragraph (1) shall require the 
     contractors selected to commence using predictive analytics 
     technologies on July 1, 2011, in the 10 States identified by 
     the Secretary as having the highest risk of waste, fraud, or 
     abuse in the Medicare fee-for-service program.
       (3) Second implementation year.--Based on the results of 
     the report and recommendation required under subsection 
     (e)(1)(B), the Secretary shall expand the use of predictive 
     analytics technologies on October 1, 2012, to apply to an 
     additional 10 States identified by the Secretary as having 
     the highest risk of waste, fraud, or abuse in the Medicare 
     fee-for-service program, after the States identified under 
     paragraph (2).
       (4) Third implementation year.--Based on the results of the 
     report and recommendation required under subsection (e)(2), 
     the Secretary shall expand the use of predictive analytics 
     technologies on January 1, 2014, to apply to the Medicare 
     fee-for-service program in any State not identified under 
     paragraph (2) or (3) and the commonwealths and territories.
       (5) Fourth implementation year.--Based on the results of 
     the report and recommendation required under subsection 
     (e)(3), the Secretary shall expand the use of predictive 
     analytics technologies, beginning April 1, 2015, to apply to 
     Medicaid and CHIP. To the extent the Secretary determines 
     appropriate, such expansion may be made on a phased-in basis.
       (6) Option for refinement and evaluation.--If, with respect 
     to the first, second, or third implementation year, the 
     Inspector General of the Department of Health and Human 
     Services certifies as part of the report required under 
     subsection (e) for that year no or only nominal actual 
     savings to the Medicare fee-for-service program, the 
     Secretary may impose a moratorium, not to exceed 12 months, 
     on the expansion of the use of predictive analytics 
     technologies under this section for the succeeding year in 
     order to refine the use of predictive analytics technologies 
     to achieve more than nominal savings before further 
     expansion. If a moratorium is imposed in accordance with this 
     paragraph, the implementation dates applicable for the 
     succeeding year or years shall be adjusted to reflect the 
     length of the moratorium period.
       (d) Contractor Selection, Qualifications, and Data Access 
     Requirements.--
       (1) Selection.--
       (A) In general.--The Secretary shall select contractors to 
     carry out this section using competitive procedures as 
     provided for in the Federal Acquisition Regulation.
       (B) Number of contractors.--The Secretary shall select at 
     least 2 contractors to carry out this section with respect to 
     any year.
       (2) Qualifications.--
       (A) In general.--The Secretary shall enter into a contract 
     under this section with an entity only if the entity--
       (i) has leadership and staff who--

       (I) have the appropriate clinical knowledge of, and 
     experience with, the payment rules and regulations under the 
     Medicare fee-for-service program; and
       (II) have direct management experience and proficiency 
     utilizing predictive analytics technologies necessary to 
     carry out the requirements under subsection (b); or

       (ii) has a contract, or will enter into a contract, with 
     another entity that has leadership and staff meeting the 
     criteria described in clause (i).
       (B) Conflict of interest.--The Secretary may only enter 
     into a contract under this section with an entity to the 
     extent that the entity complies with such conflict of 
     interest standards as are generally applicable to Federal 
     acquisition and procurement.
       (3) Data access.--The Secretary shall provide entities with 
     a contract under this section with appropriate access to data 
     necessary for the entity to use predictive analytics 
     technologies in accordance with the contract.
       (e) Reporting Requirements.--

[[Page 16406]]

       (1) First implementation year report.--Not later than 3 
     months after the completion of the first implementation year 
     under this section, the Secretary shall submit to the 
     appropriate committees of Congress and make available to the 
     public a report that includes the following:
       (A) A description of the implementation of the use of 
     predictive analytics technologies during the year.
       (B) A certification of the Inspector General of the 
     Department of Health and Human Services that--
       (i) specifies the actual and projected savings to the 
     Medicare fee-for-service program as a result of the use of 
     predictive analytics technologies, including estimates of the 
     amounts of such savings with respect to both improper 
     payments recovered and improper payments avoided;
       (ii) the actual and projected savings to the Medicare fee-
     for-service program as a result of such use of predictive 
     analytics technologies relative to the return on investment 
     for the use of such technologies and in comparison to other 
     strategies or technologies used to prevent and detect fraud, 
     waste, and abuse in the Medicare fee-for-service program; and
       (iii) includes recommendations regarding--

       (I) whether the Secretary should continue to use predictive 
     analytics technologies;
       (II) whether the use of such technologies should be 
     expanded in accordance with the requirements of subsection 
     (c); and
       (III) any modifications or refinements that should be made 
     to increase the amount of actual or projected savings or 
     mitigate any adverse impact on Medicare beneficiaries or 
     providers.

       (C) An analysis of the extent to which the use of 
     predictive analytics technologies successfully prevented and 
     detected waste, fraud, or abuse in the Medicare fee-for-
     service program.
       (D) A review of whether the predictive analytics 
     technologies affected access to, or the quality of, items and 
     services furnished to Medicare beneficiaries.
       (E) A review of what effect, if any, the use of predictive 
     analytics technologies had on Medicare providers.
       (F) Any other items determined appropriate by the 
     Secretary.
       (2) Second year implementation report.--Not later than 3 
     months after the completion of the second implementation year 
     under this section, the Secretary shall submit to the 
     appropriate committees of Congress and make available to the 
     public a report that includes, with respect to such year, the 
     items required under paragraph (1) as well as any other 
     additional items determined appropriate by the Secretary with 
     respect to the report for such year.
       (3) Third year implementation report.--Not later than 3 
     months after the completion of the third implementation year 
     under this section, the Secretary shall submit to the 
     appropriate committees of Congress, and make available to the 
     public, a report that includes with respect to such year, the 
     items required under paragraph (1), as well as any other 
     additional items determined appropriate by the Secretary with 
     respect to the report for such year, and the following:
       (A) An analysis of the cost-effectiveness and feasibility 
     of expanding the use of predictive analytics technologies to 
     Medicaid and CHIP.
       (B) An analysis of the effect, if any, the application of 
     predictive analytics technologies to claims under Medicaid 
     and CHIP would have on States and the commonwealths and 
     territories.
       (C) Recommendations regarding the extent to which technical 
     assistance may be necessary to expand the application of 
     predictive analytics technologies to claims under Medicaid 
     and CHIP, and the type of any such assistance.
       (f) Independent Evaluation and Report.--
       (1) Evaluation.--Upon completion of the first year in which 
     predictive analytics technologies are used with respect to 
     claims under Medicaid and CHIP, the Secretary shall, by 
     grant, contract, or interagency agreement, conduct an 
     independent evaluation of the use of predictive analytics 
     technologies under the Medicare fee-for-service program and 
     Medicaid and CHIP. The evaluation shall include an analysis 
     with respect to each such program of the items required for 
     the third year implementation report under subsection (e)(3).
       (2) Report.--Not later than 18 months after the evaluation 
     required under paragraph (1) is initiated, the Secretary 
     shall submit a report to Congress on the evaluation that 
     shall include the results of the evaluation, the Secretary's 
     response to such results and, to the extent the Secretary 
     determines appropriate, recommendations for legislation or 
     administrative actions.
       (g) Waiver Authority.--The Secretary may waive such 
     provisions of titles XI, XVIII, XIX, and XXI of the Social 
     Security Act, including applicable prompt payment 
     requirements under titles XVIII and XIX of such Act, as the 
     Secretary determines to be appropriate to carry out this 
     section.
       (h) Funding.--
       (1) Appropriation.--Out of any funds in the Treasury not 
     otherwise appropriated, there is appropriated to the 
     Secretary to carry out this section, $100,000,000 for the 
     period beginning January 1, 2011, to remain available until 
     expended.
       (2) Reservations.--
       (A) Independent evaluation.--The Secretary shall reserve 
     not more than 5 percent of the funds appropriated under 
     paragraph (1) for purposes of conducting the independent 
     evaluation required under subsection (f).
       (B) Application to medicaid and chip.--The Secretary shall 
     reserve such portion of the funds appropriated under 
     paragraph (1) as the Secretary determines appropriate for 
     purposes of providing assistance to States for administrative 
     expenses in the event of the expansion of predictive 
     analytics technologies to claims under Medicaid and CHIP.
       (i) Definitions.--In this section:
       (1) Commonwealths and territories.--The term ``commonwealth 
     and territories'' includes the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, American Samoa, the Commonwealth of 
     the Northern Mariana Islands, and any other territory or 
     possession of the United States in which the Medicare fee-
     for-service program, Medicaid, or CHIP operates.
       (2) CHIP.--The term ``CHIP'' means the Children's Health 
     Insurance Program established under title XXI of the Social 
     Security Act (42 U.S.C. 1397aa et seq.).
       (3) Medicaid.--The term ``Medicaid'' means the program to 
     provide grants to States for medical assistance programs 
     established under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.).
       (4) Medicare beneficiary.--The term ``Medicare 
     beneficiary'' means an individual enrolled in the Medicare 
     fee-for-service program.
       (5) Medicare fee-for-service program.--The term ``Medicare 
     fee-for-service program'' means the original medicare fee-
     for-service program under parts A and B of title XVIII of the 
     Social Security Act (42 U.S.C. 1395 et seq.).
       (6) Medicare provider.--The term ``Medicare provider'' 
     means a provider of services (as defined in subsection (u) of 
     section 1861 of the Social Security Act (42 U.S.C. 1395x)) 
     and a supplier (as defined in subsection (d) of such 
     section).
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of Health and Human Services, acting through the 
     Administrator of the Centers for Medicare & Medicaid 
     Services.
       (8) State.--The term ``State'' means each of the 50 States 
     and the District of Columbia.

                     TITLE V--BUDGETARY PROVISIONS

     SEC. 5001. DETERMINATION OF BUDGETARY EFFECTS.

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


                            Motion to Concur

  The SPEAKER pro tempore. The Clerk will designate the motion.
  The text of the motion is as follows:

       Ms. Bean moves that the House concur in the Senate 
     amendment.

  The SPEAKER pro tempore. Pursuant to House Resolution 1640, the 
motion shall be debatable for 1 hour equally divided and controlled by 
the chair and ranking minority member of the Committee on Financial 
Services, the chair and ranking minority member of the Committee on 
Small Business, and the chair and ranking minority member of the 
Committee on Ways and Means.
  The gentlewoman from Illinois (Ms. Bean), the gentleman from Texas 
(Mr. Neugebauer), the gentlewoman from New York (Ms. Velazquez), the 
gentleman from Missouri (Mr. Graves), the gentleman from Michigan (Mr. 
Levin), and the gentleman from Louisiana (Mr. Boustany) each will 
control 10 minutes.
  Mr. FRANK of Massachusetts. Madam Speaker, I ask unanimous consent 
that I substitute for the gentlewoman from Illinois on managing our 10 
minutes.
  The SPEAKER pro tempore. Without objection, the gentleman from 
Massachusetts will control the time.
  There was no objection.


                             General Leave

  Mr. FRANK of Massachusetts. Madam Speaker, I further ask unanimous 
consent that all Members have 5 legislative days within which to revise 
and extend their remarks and include extraneous material on this piece 
of legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  Mr. FRANK of Massachusetts. Madam Speaker, I yield myself 1 minute to 
say that this is a bill that passed the House in May; it was over in 
the Senate; it was subject to a filibuster; that filibuster was broken; 
and the Senate has sent us back the bill. It is not everything we 
wanted, but it is a significant improvement and will, I think, be 
helpful.
  No one has alleged any possible negative consequences. Some have said 
it might not be as helpful as we believe, but we think it will enhance 
the lending capacity of small banks for small businesses.

[[Page 16407]]

  I reserve the balance of my time.
  Mr. NEUGEBAUER. I yield 2 minutes to the gentlewoman from Illinois 
(Mrs. Biggert).
  Mrs. BIGGERT. I thank the gentleman for yielding.
  Madam Speaker, small businesses create the majority of new jobs and 
their growth is America's best ticket to economic recovery. But today 
our small businesses are finding it difficult to keep their doors open.
  Since the end of July, I have held 14 town hall meetings, two job 
fairs, two small business grant supermarkets and several tours of area 
businesses.
  In just a few short months, I have had conversations with thousands 
of business leaders and have asked them what they need to become stable 
again. Not once did business leaders come to me asking for a $30 
billion bank bailout. What they do want is crystal clear. They want 
government to get out of the way. They want Washington to quit 
burdening them with higher taxes, new bureaucracies and excessive 
regulations. They want Washington to stop throwing taxpayer money at 
the problem with failed spending. They want incentives so that they can 
have certainty in the business climate so that they can anticipate 
their cost, to invest wisely and start hiring again.
  The most important thing for small businesses to give them certainty 
is extending all the tax cuts. Instead, this bill sets up a mini-TARP 
bailout, sending $30 billion to banks that promise to improve lending. 
Rather than telling businesses what they want, let's listen to what 
they really need.
  I urge my colleagues to reject this plan and work with us to give our 
small business community the tax relief they need to create jobs and 
lead us toward an economic recovery.
  Mr. FRANK of Massachusetts. I yield 3 minutes to one of the leading 
advocates and architects of this bill, the gentlewoman from Illinois 
(Ms. Bean).
  Ms. BEAN. Madam Speaker, I rise today in support of H.R. 5297 and 
urge my colleagues to support America's small businesses, our job 
creators, by voting ``yes'' on this bill.
  Some Members of Congress frequently talk about the importance of 
small businesses to our communities and our economy, yet fail to 
actually vote for pro-business legislation that comes before them on 
this House floor. Today they have the chance to act, to do something 
that truly provides real and immediate assistance to small business 
owners.
  The Small Business Jobs Act is one of the most important bills this 
year to support our economic recovery. During the small business 
Federal resource seminars that I hold in my district, community 
business owners have told me again and again that lack of access to 
affordable credit remains their greatest obstacle to business recovery, 
expansion and diversification.
  This critical and timely bill will help bridge that gap. Today's 
legislation builds on the successful provisions in the Recovery Act 
that helped revive small business lending and secondary credit markets. 
This bill provides increased SBA loan guarantees and reduced fees; and 
$12 billion in small business tax cuts like the net operating loss 
carryback, enhanced section 179 expense provisions and bonus 
depreciation, and eliminates capital gains taxes for small business 
investments.
  Also included is a provision I authored to allow commercial real 
estate refinancing in the SBA 504 program. This will help business 
owners with performing loans stay in their business properties that 
would otherwise be ineligible for refinancing due to falling values.
  I would now like to ask the gentleman from Massachusetts to engage in 
a short colloquy to clarify the capital treatment of small business 
lending fund investments.
  Over the last few months, hearings in the Financial Services 
Committee and many meetings that Members have had with constituents 
have clearly demonstrated that this kind of legislation is being called 
for by a broad spectrum of American small businesses and small lenders. 
One of the main components of the bill is the small business loan fund.
  Up to $30 billion in capital to small banks can be leveraged to $300 
billion in loans to small businesses, our job creators, by making money 
for the government over 10 years. Community banks that participate in 
the small business lending fund will be able to support many multiples 
of that amount in new lending. To allow that to occur, it has always 
been our intent and understanding that the bank regulators should treat 
small business lending fund investments in all eligible institutions--
community banks, thrifts and holding companies--as tier 1 capital, in a 
manner consistent with that accorded to other capital securities issued 
to Treasury by eligible institutions and in consideration of the strong 
public interest in promoting lending to small businesses.
  It is my understanding that these investments are meant to be counted 
as tier 1 capital. Mr. Chairman, is that correct?
  I yield to the chairman.
  Mr. FRANK of Massachusetts. I thank the gentlewoman for yielding.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. FRANK of Massachusetts. I yield the gentlewoman 1 additional 
minute.
  Yes, the gentlewoman is exactly correct. It is intended that this be 
treated as tier 1 capital in a way that is consistent with other 
capital securities issued to Treasury.
  Ms. BEAN. Mr. Chairman, it is also my understanding that you and 
committee staff have been in discussion with Treasury and regulators 
since this bill was in our committee about the intent that these 
investments can be counted as tier 1 capital in a manner consistent 
with that accorded to other capital securities issued to Treasury and 
that Treasury and the regulators understand Congress' intent and have 
noted that they have the appropriate authority to do so under the bill.
  Mr. FRANK of Massachusetts. The gentlewoman is correct.
  Ms. BEAN. Thank you, Chairman Frank, for all your hard work on this 
important bill. With access to tier 1 capital, community banks that 
participate in this program will be able to provide small businesses 
with the credit they need to grow and hire.

                              {time}  1340

  Mr. NEUGEBAUER. It is my honor and privilege to yield 3 minutes to 
the gentleman from Texas, the ranking member of the Financial 
Institutions Subcommittee, Mr. Hensarling.
  Mr. HENSARLING. I thank the gentleman for yielding.
  Madam Speaker, another day, another opportunity to borrow $30 
billion, much of it from the Chinese, and send the bill to our children 
and our grandchildren. Again, Madam Speaker, the American people are 
asking, what part of ``broke'' doesn't Congress understand? They don't 
get it.
  Now, I know my friends on the other side of the aisle say, ``Well, 
no, wait a second. This will actually reduce the deficit.'' Well, what 
it does, Madam Speaker, is it pairs temporary tax credits with 
permanent tax increases; again, some of that Washington accounting 
nonsense that has somehow put this Nation on the road to bankruptcy, 
that has brought us the first back-to-back trillion dollar-plus 
deficits in the history of our Nation, the kind of accounting that now 
provides us with the single largest debt in America's history.
  In fact, if you read the legislation, Madam Speaker, it has what is 
known as directed scoring. Under H.R. 5297, CBO is to determine the 
cost of this bill under credit reform without any adjustment for the 
market risk. In fact, CBO goes on to say that cost estimates made under 
FCRA do not provide a comprehensive measure of the cost to the 
taxpayers.
  Madam Speaker, again, when all is said and done, I predict the 
American taxpayer yet again will be called upon to borrow more money, 
much of it from the Chinese, and send the bill to our children and our 
grandchildren.
  Now, I know that the authors of this bill have called it SBLF, but to 
many of us it reads like T-A-R-P. This is TARP pure and simple. It is 
the capital purchase program under a different name. I will admit they 
have added an incentive to lend; but again, to lend to whom? Whatever 
this bill does theoretically to help small business, they

[[Page 16408]]

take it away. They take it away, Madam Speaker, with the cost and 
uncertainty of their health care bill. They take it away with the cost 
and uncertainty of their financial regulatory bill. They take it away 
with the cost and the uncertainty that is threatened through the 
national energy tax that is known as cap-and-trade, and certainly from 
the national debt that all small business people sooner or later are 
going to be called upon to pay.
  So whatever pennies they are trying to drop into the small business 
coffer today, they are going to take away dollars and dollars and 
dollars, which is one of the reasons, Madam Speaker, under this 
President and this Congress, we continue to be mired in almost double-
digit unemployment 16 months in a row--worst in a generation--with no 
hope in sight. And this, again, is more of the same--more spending, 
more TARP, more of the failed policies that have brought us the 
unemployment and misery that we see today.
  If you want to help small business, the first thing you can do is to 
ensure that you do not increase their taxes by increasing the marginal 
income tax rate on the top two brackets, which is already being 
threatened by the Speaker today, which we know in the Joint Committee 
on Taxation says half of all small business income would be hit by that 
tax increase.
  Reject this bill.
  Mr. FRANK of Massachusetts. Madam Speaker, I yield 1 minute to the 
gentleman from Missouri (Mr. Cleaver).
  Mr. CLEAVER. Madam Speaker, back in May I filed an amendment in 
committee hoping that I could work with the administration between then 
and now, floor consideration, to develop a meaningful way for community 
development loan funds to participate in this legislative proposal. I 
want to take this opportunity to boast about it being included in this 
final version and discuss the urgent need to assist community 
development loan funds, who have been left behind in too many programs, 
that help small business and institutions.
  Since its inception, the Treasury's CDFI fund has certified over 
1,200 CDFIs in banks, credit unions, loan funds, and venture capital 
funds. CDFI banks, credit unions, and loan funds have been historically 
well managed. It is without a doubt that CDFIs are critical to the 
development of minority and underserved populations, especially 
nonprofit loan funds that have traditionally served the more 
economically and racially diverse communities. Seventy percent of CDFI 
recipients are low income, and over 50 percent are minority and 
majority female. Furthermore, microlending and small business lending 
represent 45 percent of CDFI loans.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. FRANK of Massachusetts. I yield the gentleman 30 additional 
seconds.
  Mr. CLEAVER. I commend the administration's and Mr. Frank's 
leadership in recent proposals to increase CDFI fund investments and 
the launch of two new initiatives within the CDFI program to improve 
the health and economic viability of low-income communities. However, 
nonprofit loan funds that serve credit-starved communities were left 
out of many of these initiatives. This bill was my attempt to right 
that wrong.
  I look forward to working together to ensure that nonprofit community 
development loan funds are provided an adequate opportunity to 
participate.
  Mr. NEUGEBAUER. Madam Speaker, may I inquire as to how much time is 
remaining on both sides?
  The SPEAKER pro tempore. The gentleman from Texas has 5\1/2\ minutes 
remaining. The gentleman from Massachusetts has 4 minutes remaining.
  Mr. FRANK of Massachusetts. Madam Speaker, let me inform my colleague 
that I intend to close with my remaining 4 minutes, and I'm my last 
speaker. I will close; so I reserve the last 4 minutes to close.
  Mr. NEUGEBAUER. Madam Speaker, I yield myself such time as I may 
consume.
  Just last month, in the month of August, I traveled around the 19th 
Congressional District. I had nine town hall meetings. But more 
importantly, I had numerous meetings with small businesses and with 
larger businesses in my district and with banks, both large and small, 
about this issue of getting America back to work and getting small 
businesses back to creating jobs again, and one of the things I heard 
over and over again was the word ``uncertainty.''
  They said, Congressman, there is too much uncertainty about what the 
future looks like in this country.
  I heard small businesses say, We don't know what this new health care 
plan is going to mean or cost to our business. Congressman, we don't 
know what the tax environment is going to be in this country because 
Congress hasn't done anything to keep the largest tax increase in the 
history of our country from unfolding. Congressman, we don't know how 
to deal with all these new regulations that are coming out of all of 
these agencies where EPA is trying to circumvent Congress and regulate 
greenhouses. And, Congressman, we don't know what to think about a 
country that keeps spending and borrowing and spending and borrowing to 
the point where now every day every dollar we spend we borrow 42 cents.
  So I heard that from the businesses. And what I heard them say is, We 
are holding on to the employees we've got. We've tried not to lay off 
anybody. And we could probably buy some new machinery, or we could 
probably put some more people on, but there's too much uncertainty. We 
are just going to sit on the sidelines.
  Also I heard, when we had the debate on this bill previously, the 
other side talking about the lack of credit availability to a lot of 
small businesses, and so I went to see my friends in the banking 
business. And I went to say to them, Why aren't you lending money? And 
they said, Congressman, we've got lots of money to loan. Our bank has 
the strongest capital it's had in a long time. We have money to lend. 
They said, The good customers that we would like to lend money to don't 
want to borrow money because of the uncertainty that's going on in this 
country right now.
  I said, Well, let me make sure I understand this. You're saying you 
have the money to loan, but people don't want to borrow it because they 
are concerned about the future of this country and what the 
environment, business environment is going to be? And they said, That 
is exactly right.
  And so what is so interesting about this is this is another one of 
the majority's failed attempts to recycle a program that didn't create 
any jobs the first round. TARP I, TARP II, all of the stimulus, all of 
these massive amounts of future generations' economic opportunity 
thrown at this economy and no jobs have been created. In fact, we have 
almost got 15 million people in this country that are unemployed today. 
And since we've done all these programs, we've lost almost 2\1/2\ 
million jobs.
  What the small businesses need in this country is certainty and not 
another bailout program. This bill raises taxes. It gives some 
temporary tax relief, as my friend from Texas said, but it also--and I 
don't know what part of the fact that the small businesses are 
concerned about this 1099 thing, now we've got the 1099 in the health 
care bill. Now we've got the 1099 on rental expenses in this bill 
making it more onerous, creating more uncertainty, more lessening the 
opportunity and the motivation for small businesses to expand and to 
create jobs in this country.
  In fact, yesterday Secretary Geithner appeared in one of our 
committees. He said banks have plenty of money to lend. That's 
Secretary Geithner. We had the Independent Community Bankers say that 
banks have plenty of liquidity, plenty of money to lend. It's a matter 
of getting quality demand back.
  Another comment was from our folks at NFIB. They said that the 
primary problem facing small business owners right now in terms of job 
creation is not access to credit.

                              {time}  1350

  This is the group of people that represents small businesses in this 
country. It is a lack of sales, customers, and

[[Page 16409]]

confidence. Small business owners are unlikely to invest in hiring or 
expanding their businesses when their sales and profits remain weak.
  If the majority is serious, and we are wondering if they are serious, 
about getting America back working, getting America back to the vibrant 
economy that it had, let's do something serious about that and not put 
the American taxpayers--we are going to go borrow $30 billion for this. 
And we are going to have to borrow the whole $30 billion because 
somewhere in the middle of last month, everything the Treasury spends 
from that point going forward is borrowed money. We are headed to a 
$1.3 trillion deficit this year.
  So we are going to go borrow $30 billion to put into a program that 
the banking industry and NFIB and all of these people say really isn't 
what the economy needs. What the economy needs is certainty: certainty 
in taxes, certainty in regulatory environment, and certainty that this 
Congress is going to quit borrowing and spending money that it doesn't 
have.
  So I urge my colleagues to vote ``no'' on this bill. Let's vote for 
something that really matters and really gets America back to work.
  I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Madam Speaker, I yield myself the balance 
of my time.
  First, this bill deals with the particular needs of minority women 
and veteran-owned small businesses. I want to point out that we have 
had hearings documenting the barriers and the discrimination that face 
small businesses that are owned by minority women or service-disabled 
veterans. There were hearings on this. There is evidence that they have 
a harder time and get less value for their loans. I want to make clear 
that we have looked at that, and our inclusion of provisions for that 
is based on our evidence.
  Secondly, I have to say that my colleague from Texas is to be 
congratulated on his selectivity. He manages to do more partial quoting 
of people's positions than I get on my cell phone in a bad reception 
area.
  For example, he talked about the Independent Community Bankers. You 
might have had a hard time, listening to the gentleman from Texas, 
figuring out that they wrote us a letter dated September 22. Maybe they 
changed their mind overnight and talked to the gentleman from Texas, 
but I am skeptical. In the letter they say this bill: ``. . . is a 
bold, fresh proposal that would provide another option for community 
banks to leverage capital and expand small business credit.''
  The Independent Community Bankers, whom he sought to quote 
denigrating this bill, are very much in favor of this bill.
  The National Association of Home Builders likes the concept, although 
they were upset with one of the things that the Senate left out.
  The Financial Services Roundtable--and here is the problem when 
taking a partisan stance: You have to over-argue your case. If you 
listen to the gentleman from Texas, there are no small businesses 
anywhere that would like to get a loan but can't find it from their 
bank. Now no one, including the gentleman from Texas, believes that is 
true.
  I have to say that my advice to my colleagues is, even in the heat of 
a political debate, try to refrain from saying something that no one 
will believe because it is not helpful to your argument.
  Yes, there are cases where there are banks that have enough capital. 
There are cases where there are companies that are afraid to lend. But 
what the gentleman has said goes far beyond that: There are no 
significant number of small businesses in America that are encountering 
problems because there are banks that don't have enough capital. No one 
believes that.
  Now here is the problem. We have people who do not want to see 
anything get better. The gentleman from Texas (Mr. Hensarling), I will 
credit him because he didn't talk much about this bill. He complained 
about a lot of other bills. I understand that. He, I think, quite 
honestly realized there was not a lot of bad things to say about this 
bill. The worst they can say about this bill is it might not be used as 
much as we think. I disagree. In this vast economy, $30 billion is not 
a huge amount of money from the standpoint of the small business 
borrowers.
  Now, this bill is not what I would like it to be. The gentlewoman 
from New York (Ms. Velazquez), the chair of the Small Business 
Committee, improved this bill significantly in the House. And this is 
not as good a bill as it came back from the Senate as it was before. I 
am going to be working with her. I intend to vote for this bill to give 
the Senate another chance. I don't like to give up on people or 
institutions. I believe in redemption, and we will give the Senate a 
chance to get it right.
  But let's be clear. The Independent Community Bankers are for this. 
Other small businesses are for this. The argument that no small 
business anywhere in America has capital that they need and can put to 
use and can't find a bank, that simply isn't valid.
  On uncertainty, I understand the problem of uncertainty in taxation. 
You know what the uncertainty is? What's going to happen to the Bush 
tax cuts. And whose fault is that uncertainty? President Bush and his 
Republican allies, who passed a manipulative, book-cooking tax cut that 
they said would last 10 years. I didn't say that it should last for 10 
years and then expire. I didn't say that the estate tax should be a 
dipsy-doodle that went up and down and up and around. That is what the 
Republicans did because they were trying to hide from the American 
people the full budgetary impact of their taxes.
  Let's pass this bill, do what we can for small businesses, and go on 
to other work.

                                             Independent Community


                               Bankers of America',

                               Washington, DC, September 22, 2010.
     Hon. Nancy Pelosi,
     Speaker of the House, House of Representatives, Washington, 
         DC.
     Hon. John Boehner,
     Minority Leader, House of Representatives, Washington, DC.
       Dear Speaker Pelosi and Leader Boehner: On behalf of the 
     nearly 5,000 members of the Independent Community Bankers of 
     America, I write to express our strong support for the Small 
     Business Jobs Act (H.R. 5297), and its core component, the 
     Small Business Lending Fund (SBLF). The SBLF passed the House 
     in June, and we now look forward to the final House passage 
     of HR 5297.
       ICBA believes that the SBLF will spur the flow of 
     additional small business credit. Additionally, the 
     legislation's Small Business Administration loan program 
     incentives will allow community banks to further expand 
     lending to deserving small business borrowers. In order for 
     the SBLF to reach its full potential, Congress has 
     specifically pressed for Tier 1 capital treatment of SBLF 
     funds for all recipient institutions. Tier 1 treatment will 
     allow the funds to be leveraged to provide as much as $300 
     billion of new small business credit. Treasury and the bank 
     regulators must quickly implement this program as intended by 
     Congress.
       The nation's nearly 8,000 community banks are prolific 
     small business lenders with the community contacts and 
     underwriting expertise to get credit flowing to the small 
     business sector. The SBLF is a bold, fresh proposal that 
     would provide another option for community banks to leverage 
     capital and expand small business credit.
       Thank you for your consideration.
           Sincerely,
                                                   Camden R. Fine,
                                                President and CEO.

  Ms. VELAZQUEZ. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, small businesses have always been a critical component 
of the U.S. economy, and that is not different today. Generating nearly 
two-thirds of net new jobs over the past 15 years, they are not only 
the primary catalyst for employment growth but also for our Nation's 
underlying prosperity. Through the years, we have relied on our strong 
culture of entrepreneurship and innovation to renew us and make us 
stronger.
  Today, small firms face different challenges than in the past. As a 
result, there will be different solutions. The policies that we adopt 
today must be carefully crafted to meet entrepreneurs's current needs. 
Unfortunately, the legislation we are considering today do not provide 
the protections that we need to make sure that small businesses have 
access to affordable capital.

[[Page 16410]]

  We have seen the power of small businesses to pull us forward before. 
During the recession of the early 1990s, small businesses provided an 
economic lifeboat and created approximately 3.8 million jobs. This 
fueled the recovery then, while also planting the seeds for growth 
later in that decade. Back then it was the dot-coms and the Internet 
revolution at the forefront of the recovery. Today, we see 
entrepreneurs embracing green technologies and alternative energy. 
Small firms are fabricating solar panels, developing fuel cells, and 
researching innovations in building materials. These green firms add 
$933 billion to the economy each year and employ more than 11 million 
workers. By 2030, the number is expected to reach 40 million employees, 
or 25 percent of the American workforce.
  In the next decade, this will be the foundation for growth and job 
creation. Once again, it will be small firms leading the way.
  While these cutting-edge firms are critical to the future, we also 
must recognize the importance of established firms. These local 
businesses, the mom and pops and the local storefronts, provide 
employment to millions of individuals and anchor our communities. For 
many, the economic recovery that has begun in recent months is long 
overdue.
  Now, more than ever, we need to make sure that the environment is 
conducive to the success of both new and established businesses. For 
some, this means reducing the regulatory burden or providing tax 
relief. For others, it requires greater access to affordable capital or 
entrepreneurial assistance. Most important, we must get this mix right 
and avoid enacting policies that do not meet entrepreneurs' needs.
  Whatever policies we choose, whether it be the legislation under 
consideration today or future proposals, it is crucial that we continue 
to embrace the power of our Nation's small businesses. Doing so will 
create badly needed jobs in the short term, while laying the framework 
for a long-term, sustainable period of growth.
  I yield back the balance of my time.

                              {time}  1400

  Mr. GRAVES of Missouri. I yield myself such time as I may consume.
  Madam Speaker, I rise today in opposition to the amended version of 
H.R. 5297, the misleadingly named Small Business Jobs and Credit Act. 
We have again missed an opportunity to help small businesses around the 
country that are in desperate need of less regulation and of more 
certainty about the future. This legislation has three basic parts:
  It has a $30 billion government bailout provision with no guarantee 
that the funds are actually going to go to entrepreneurs;
  Another part is it has a slew of major changes to the Small Business 
Administration programs that actually discourage job creation;
  Third--and this is the one that amazes me the most--it has a tax 
component that combines some very limited small business benefits with 
even bigger penalties on the dreaded 1099 reporting mandate in the 
health care law.
  To better explain that last part, during the month of August, when I 
went around and listened to small businesses and to some of the 
problems that they are having, one of the biggest complaints I heard 
about was this 1099 reporting for small business with any purchase of 
over $600 or more. In this bill, it increases the penalties on 
reporting for that. So it was just amazing to me that this was actually 
included in this.
  As the ranking member of the Small Business Committee and as a small 
business owner myself, I have spent months talking to entrepreneurs and 
examining their ideas on what Washington can do to encourage a stable 
recovery. I can tell you right now that this legislation is not what 
they want. It is not what they need to create and grow their 
businesses.
  Small business owners aren't looking for more government intervention 
and more wasteful spending. They are looking for some certainty. Small 
business owners are looking for a commitment from Washington leaders 
that their taxes are going to stay the same. They need a commitment 
that they won't be bombarded with more job-killing regulations. Most of 
all, they need to feel confident that they can hire new workers and can 
invest in their businesses without the fear that next week, next month 
or even next year, Washington is going to turn its back on them.
  Instead of creating jobs like my colleagues on the other side of the 
aisle are promising, all this so-called ``small business bill'' will do 
is create disappointment. In fact, this bill actually removes a very 
critical job creation requirement from one of the SBA lending programs. 
The truth of the matter is that this is just another bailout bill that 
will generate billions of dollars for financiers and not one penny for 
workers.
  If we are serious about creating jobs and about encouraging small 
business expansion, we must work together to develop fiscally 
responsible policies that work for small businesses and families. I 
urge my colleagues and other Members to vote against this legislation. 
Instead, join me in implementing a better solution that will help small 
businesses without imposing more debt and regulations.
  Madam Speaker, I yield back the balance of my time.
  Mr. LEVIN. I yield myself such time as I may consume.
  Madam Speaker, not much time needs to be consumed to make clear what 
is happening here. Many on the minority side rise in opposition. Why? 
Essentially, it is this:
  Oppose any bill that helps the Nation, because it helps the President 
and this Congress achieve something for the Nation. Oppose it even if 
it helps small business, as this bill will. Oppose it even if it 
creates jobs, the key to this bill. Oppose it even if the pay-fors 
primarily were developed on a bipartisan basis. Find some flimsy excuse 
to oppose it.
  I will read the last sentence from the Chamber of Commerce letter:
  ``Ninety-six percent of the Chamber's members are small businesses 
with fewer than 100 employees. On behalf of these small businesses, the 
Chamber urges you to support H.R. 5297 and strongly encourages Congress 
to address the issues of broad economic importance to the small 
business community.''
  So you're trying to find some fig leaf. So far, they've all been 
transparent. To come here and to try to march with your message, even 
when it doesn't apply, doesn't serve you well. It doesn't serve this 
Congress well. It surely doesn't serve small businesses well, and it 
doesn't serve well our Nation.
  I reserve the balance of my time.
  Mr. BOUSTANY. I yield myself such time as I may consume.
  I rise in opposition to H.R. 5297.
  Madam Speaker, we have heard a lot today about the centerpiece of 
this bill--the highly controversial $30 billion small business lending 
fund, a provision sometimes referred to as TARP III. That provision is 
certainly of major concern to me, and it is reason enough to vote 
against this bill, though I want to focus my remarks on aspects of the 
bill that are within the Ways and Means Committee's jurisdiction.
  This legislation includes approximately $12 billion in small business 
tax provisions, including a number of items that Republicans have long 
supported. For example, there is widespread, bipartisan support for 
expanded business expensing and for the extension of bonus depreciation 
as ways to encourage additional capital investments.
  In addition, this bill includes a provision originally authored by 
our colleague from Texas (Mr. Sam Johnson) that would eliminate the 
outdated requirement that employees keep extensive records documenting 
their personal use of their employer-provided cell phones so they can 
include the value of that benefit in their incomes.
  It also includes a provision that I have been working on with 
Chairman Lewis of the Oversight Subcommittee that would reduce 
penalties on small businesses that unintentionally violate certain 
disclosure rules under section 6707(a) of the Tax Code. Republicans

[[Page 16411]]

don't object to these provisions. In fact, we think they should have 
been enacted months ago.
  The tax portion of this bill also contains a highly troubling 
provision that would essentially double down on a particularly flawed 
element of the majority's new health care law. It is the requirement 
that small businesses file form 1099 with the IRS for every business 
and individual to which they make total payments of more than $600 each 
a year. We already know that this highly confusing and burdensome 
information-reporting regime, which could cause the number of required 
tax forms to quintuple, will drive up the cost for small businesses 
across the country. It is clear that this added expense will mean that 
employers will have less money to hire new workers and to retain 
existing ones.
  Instead of working with Republicans to repeal these onerous new 1099 
reporting requirements, the majority is now actually seeking in today's 
bill to substantially increase the penalties for failure to comply with 
them. Although proposals to increase the penalties for failure to file 
correct information returns have not always been particularly 
controversial, these penalties now apply to a much larger universe of 
transactions because of the majority's new health law. Because those 
new requirements are so confusing and burdensome, especially for small 
businesses that are already struggling to meet payroll, increasing the 
penalties for what could be inadvertent mistakes seems especially 
unfair.
  To add insult to injury, the legislation before us would also expand 
the types of transactions subject to 1099 reporting requirements even 
further. The bill would generally require that a recipient of rental 
real estate income file an information return on his rental property's 
expense payment as well. For example, an individual who rents out even 
a single condo unit would generally be required to file a 1099 for his 
purchase from Home Depot or other corporate establishments if he buys 
more than $600 in supplies from them over the course of the year.
  This new requirement, which would raise more than $2.5 billion over 
10 years, could prove to be every bit as burdensome for owners of small 
rental real estate holdings as the health law's 1099 requirements are 
for small businesses, especially considering the increases in penalties 
I mentioned a moment ago.

                              {time}  1410

  But let me close by making a broader point. The majority boasts about 
how much this bill's tax provisions like increased expensing and 
extending bonus depreciation will help small businesses--and let me be 
clear. Those are proposals that Republicans continue to support. But 
any tax benefits provided by this bill at the margins will pale in 
comparison to the enormous tax increase the majority has in store for 
every taxpaying small business at the end of this year.
  By failing to extend the critical tax relief that is scheduled to 
expire at the end of 2010, the majority will impose a $3.8 trillion tax 
hike on American taxpayers--including every small business in America 
that pays income taxes--over the next 10 years. Especially with 
unemployment continuing to hover near 10 percent and economic growth 
very sluggish, that is a terrible idea for small businesses. It's a 
terrible idea for the economy, and it's a terrible idea for job 
creation.
  Madam Speaker, I reserve the balance of my time.
  Mr. LEVIN. Madam Speaker, I yield 1 minute to the gentleman from 
Georgia (Mr. Lewis).
  Mr. LEWIS of Georgia. I want to thank my chairman, Chairman Levin, 
for yielding.
  Madam Speaker, this week on the news we heard economists declare that 
the recession ended sometime last year. But while Wall Street may 
celebrate, in Atlanta and many other cities there is a different story. 
Small businesses from Peachtree to Cascade and from Moreland Avenue to 
Clairmont Road continue to struggle. People are still suffering. With 
this bill, we give them the support they badly need.
  Enough with politics and enough with the posturing. Small businesses 
need access to capital, and they need it now. They need it right now. 
They need tax relief, and they need it now.
  I urge all of my colleagues to vote ``yes'' and pass this bill. It is 
the right thing to do, and we must do it and do it now.
  Mr. BOUSTANY. Madam Speaker, I reserve the balance of my time.
  Mr. LEVIN. Madam Speaker, it is now my privilege to yield 1 minute to 
the gentleman from Massachusetts, a member of our committee, Mr. Neal.
  Mr. NEAL. I thank the gentleman.
  Madam Speaker, I stand in support of this small business jobs bill. 
There is no cute title for this bill. It's simply about small 
businesses and jobs. It injects funding into small businesses in two 
ways.
  First it does through the creation of a $30 billion lending fund for 
community banks. Many have complained that while community banks have 
money, they aren't positioned to lend. This fund makes favorable 
repayment rates contingent upon lending to small business.
  Second, the bill provides $12 billion in enhanced tax benefits for 
small businesses, which will encourage hiring and investment. It will 
allow small businesses to carry back the general business credits for 5 
years, and they will provide cash in hand today rather than sitting on 
the credits that they eventually cannot claim. All of this will allow 
small businesses which may be on the fence about committing new funds, 
new investments, upgrades in equipment, or retaining or rehiring 
workers to spend the funds necessary to get back to work.
  This is a very decent, reasonable piece of legislation. We ought to 
embrace it. It will have ripple effects throughout our economy.
  Mr. BOUSTANY. Madam Speaker, I mentioned earlier the small business 
provisions that we do agree upon, but we think that these are going to 
be outweighed by the onerous 1099 provision that is in the health law, 
and the impact on businesses is going to be terrible.
  I want to just mention something here. The IRS's own National 
Taxpayer Advocate highlighted several problems with this particular 
1099 reporting requirement. ``The new reporting burden, particularly as 
it falls on small businesses, may turn out to be as disproportionate as 
compared with any resulting improvements in tax compliance. Small 
businesses may have to pay for additional accounting services, 
incurring additional costs. In our view, it's highly likely that the 
IRS will improperly assess penalties that it must abate later after 
great expenditure of the taxpayer and IRS time and effort. Small 
businesses that lack the capacity to track customer purchases may lose 
customers, leaving the economy with more large national vendors and 
less local competition.'' Those are the words of the National Taxpayer 
Advocate at the IRS.
  This 1099 reporting burden on small businesses is particularly 
onerous and outweighs many of the advantages of some of these tax 
provisions that we all agree upon. It's a shame that we couldn't have 
gotten together to put together a better small business package that 
would actually promote small business growth, promote jobs, and promote 
our economy.
  Madam Speaker, I reserve the balance of my time.
  Mr. LEVIN. Madam Speaker, I yield myself such time as I may consume.
  You know, the mindless objection really overlooks the urgency of this 
picture. We go back home; people say they can't receive credit. You 
talk about TARP III. You're the only ones who use that language to try 
to find a label even for something beneficial, as was other 
legislation.
  So we go home and we hear this cry out for credit, and we put 
together a bill that provides $30 billion for small and medium-size 
businesses, and you look for an excuse. We provide money for the States 
to provide collateral so small businesses can receive the credit--a 
provision that Governors support, Republicans and Democrats--and you 
search for some basis that somehow will carry what you think is a 
winning

[[Page 16412]]

message even if the American people are the losers. It doesn't work.
  Madam Speaker, I yield 1 minute to the distinguished majority leader, 
Mr. Hoyer.
  Mr. HOYER. I thank the chairman of the Ways and Means Committee, Mr. 
Levin, for yielding. Mr. Levin has been one of our hardest workers and 
leaders in the effort to make sure that American business can succeed 
and expand and create good-paying jobs for our economy.
  I just heard the last of his remarks, but my presumption is he was 
saying, as we all know is the case, there is not a place that any of us 
travel in the United States of America, when we talk to small 
businesses all over this country, that they don't say: Congressman, one 
of the real problems I have is I can't get capital. I want to put an 
additional room on my restaurant so I can have some additional tables, 
and I'll have to hire some additional--maybe a cook and a waiter and 
waitresses and a receptionist, but I can't get capital. I know I can 
get the customers, but I can't expand.
  That's what this bill is about. This bill is about empowering small 
businesses to do what they do so well.
  In our work to recover from the worst economic crisis of our 
lifetimes as a result of the economic policies we put in place in the 
last administration, we're suffering under the worst economic crisis in 
75 years. Only the Great Depression is analogous.
  Businesses will play an extraordinarily important role in bringing us 
back; they are our economy's job-creating engine. Over the past year, 
64 percent of new jobs came from small businesses. Keeping small 
businesses growing and creating jobs is essential to our economic 
recovery, and supporting small businesses is an essential part of 
rebuilding American industry, which is why this important small 
business lending bill is part of the Democrats' ``Make It in America'' 
agenda.

                              {time}  1420

  You're going to be hearing a lot about that agenda: ``Make It in 
America.''
  There are an awful lot of people in our country right now who, 
understandably, are not sure they're going to make it in America. 
They're not sure their kids are going to be able to make it in America. 
They're not sure they're going to have a retirement on which they 
counted. ``Make It in America.''
  Now, that has another meet meaning as well: make it in America; 
manufacture it in America; create good-paying jobs through 
manufacturing things in America that Americans will buy, and yes, the 
rest of the world will buy.
  This is a plan to strengthen American manufacturing and its ability 
to create well-paying middle class jobs. Six Make It in America bills 
have already been signed into law. In addition, Democrats have voted 
for investments in job-creating infrastructure projects, lower taxes 
for 98 percent of America, expanded Small Business Administration 
lending, a tax credit for small businesses that hire unemployed 
workers, and long-term tax credits to help small businesses afford 
employer health care. And we've done it in the face of a year and a 
half of near unanimous Republican opposition.
  The challenges faced by small businesses are still, of course, 
significant ones. Last year, for instance, 45 percent of small 
businesses seeking loans to expand or even stay in business were turned 
down for a loan, which had an obvious impact on employment.
  To expand the job-creating flow of credit, I urge each of my 
colleagues, not Republicans or Democrats but all of my colleagues, who 
all want to see small businesses grow, who all want to see jobs 
created, and, therefore, I urge all of my colleagues on either side of 
the aisle of whatever ideology, support this bill.
  I talked to my small bankers last week. They say if they get this 
capital, they're going to lend to small businesses. I talked to my 
small businesses, and they say if this bill passes, they believe that 
they'll be able to get a loan to expand their business or to keep in 
business.
  First, this bill creates a small business lending fund that makes it 
easier for small businesses to access the capital they need. It also 
establishes $12 billion in tax cuts for small business.
  I've heard a lot of talk throughout my 30 years here in the Congress 
of the United States from the other side of the aisle about cutting 
taxes on small businesses. Well, this cuts $12 billion in taxes on 
small businesses. I would hope that you would feel that was consistent 
with what you said ought to be done. We agree. And we've done it. And 
we're trying to do it again.
  These tax credits encourage small business investments by eliminating 
small business capital gains taxes in many cases; they encourage 
innovation by helping entrepreneurs deduct more startup expenses; they 
make it more affordable for business owners to invest in the equipment 
they need to expand; and, as I said, they make health care more 
affordable for the self-employed--all designed to grow and expand small 
businesses and to create jobs for the millions of Americans who have 
been hardworking Americans, lost their job, and they want to work and 
they're looking for work, and they can't find it. This is an 
opportunity for us to expand that job pool by an estimated 500,000.
  In addition, this bill strengthens State and SBA programs that lend 
to small businesses. We have such a program in the State of Maryland. 
We think this will help. And it strengthens overseas competitiveness by 
funding export-promoting programs and by fighting for market access and 
a level playing field for American companies that compete abroad.
  In all, this bill's provisions are projected, as I said, to save or 
create as many as a half million jobs.
  Passing this bill is a test of every Member's commitment to the 
businesses that are the backbone of our districts. It is a measure of 
our support for their ability to innovate, grow, and employ more 
workers.
  But as important as this bill is, it is not the end of our work to 
create small business jobs.
  For instance, the House will soon debate Congressman Miller's bill to 
support lending for home construction--another example of Democratic 
efforts to support small businesses and create jobs.
  I hope that every one of my colleagues sees fit to support this bill, 
not because it perfectly represents every view that you have--none of 
us vote for bills that reflect our views perfectly--but because the 
consensus of the business community is this will move us forward.
  Vote for this bill. It's good for America. It's good for our people. 
It's good for jobs.
  Mr. BOUSTANY. I yield myself the balance of my time.
  Madam Speaker, I mentioned that we are for some of this tax relief in 
this bill. But if you talk to small business owners across this great 
country of ours, you talk to workers, you talk to families, what 
they're concerned about is the uncertainty, the uncertainty of what's 
happened over the last 2 years under this administration. This 
atmosphere of uncertainty is what's killing small business growth, and 
it's killing jobs.
  Now, we highlighted the 1099 provision in the health care bill. 
That's just one provision in a massive bill that has led to this 
tremendous uncertainty, this atmosphere that is just like cold water on 
all business activity.
  Yes, I admit the credit problems are real. Small businesses are 
struggling with it. But why is that? It's because there is uncertainty 
in the economic climate.
  Now, it's nice. We have a bill that offers some good tax provisions 
in there. But where one hand giveth, the other hand taketh away with 
onerous provisions that are going to add costs to our businesses that 
are trying to hire and trying to make a living and trying to prosper, 
trying to create wealth and prosperity for American families.
  The bottom line is we need good, solid policies that are going to 
basically eliminate this uncertainty. That's why I have to say I lament 
the fact that we couldn't get together and

[[Page 16413]]

work on something that would really promote job growth, promote 
economic growth and prosperity for families. But, no, we have to play 
these political games, and we have to put provisions in there for 
certain reasons that actually are going to work counter to what we're 
trying to do.
  The 1099 provision is just one of many, many elements that have led 
to this intense uncertainty across the board. I challenge my friends. I 
say go across the country, visit your districts, talk to small business 
owners and ask them what is the problem. They'll tell you it's credit. 
But they'll tell you, We don't know what's coming with this health care 
and what it's going to cost us.
  There are a number of provisions the way this is going to be 
implemented, the 1099 provision being one. New taxes, the tax 
uncertainty--my God, that is a huge issue. Why can't we get together 
and extend the tax relief from 2001 and 2003 and keep the capital gains 
and dividend taxes where they are today? That will create an atmosphere 
of certainty for our businesses that want to hire, they want to produce 
goods, they want to export.
  Why can't we articulate a coherent trade policy that's really going 
to promote exports? We've got three trade agreements on the table ready 
to go that immediately promote exports that will create high, good-
paying jobs. One-out-of-five jobs in this country are related to trade. 
But, no, we won't take up those trade agreements. Ask why. Special 
interest. It's not what's best for America; it's for special interest.
  We have a moratorium on drilling down in my district, in my State. 
It's killing small business growth. Killing it. These are small 
businesses that provide services and equipment and manufacturing to 
support American energy. And guess what. We have an arbitrarily imposed 
moratorium that defies any basis in fact or science at this stage, and 
we can't even get answers from this administration to bipartisan 
letters inquiring why that's the case.
  So let's talk about how you get rid of uncertainty in this economic 
climate. We've got a climate of fear right now. People are fearing 
what's coming out of Washington.
  What we need is certainty, and we need good, solid politics that are 
going to help American workers and American families.

                              {time}  1430

  Mr. LEVIN. I yield 1\1/2\ minutes to the gentleman from New Jersey 
(Mr. Andrews).
  Mr. ANDREWS. I thank my friend for yielding.
  I think if we went into any shopping mall or restaurant in America 
today and asked people who aren't in politics, What would you like to 
see us do to help put people back to work?, they would say, Well, small 
businesses create three out of four jobs in the country. Why don't you 
help them? Why don't you make it so if they create jobs you cut their 
taxes? Why don't you make it so if they can't get loans, if they have 
good credit they can get loans and pay them back so it doesn't cost the 
Treasury anything? And why don't you do this in such a way that it 
doesn't add to the deficit, that you offset the cost of doing this by 
finding other savings to pay for it? Why don't you do that?
  That's exactly what this bill does.
  Now, I suspect that if the minority's not going to support this bill, 
it has more to do with the calendar than the content of the bill. In 40 
days the voters are going to the polls. And the other side has decided 
to run their campaign on the basis that nothing good is happening. 
That's their judgment. We're making a different judgment here: helping 
small businesses by cutting their taxes, helping small businesses by 
making credit available to creditworthy borrowers, and helping the 
American people by creating jobs in a way that doesn't increase the 
deficit.
  Our friends on the other side, Madam Speaker, say there's a climate 
of fear in Washington. Maybe people are justifiably afraid out in the 
country that the other side wants to do nothing but say ``no.'' We 
should vote ``yes'' on this bill.
  Mr. LEVIN. My colleagues on the Republican side want to talk about 
everything except this bill. I understand that. I think quietly you 
might admit you are embarrassed to vote against it. You raise the 1099 
issue in the health bill. We've brought up a bill to repeal it, and 
almost all of you voted ``no.'' You want to talk about all kinds of 
other issues except this bill.


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (Ms. Edwards of Maryland). Members are 
reminded to address their remarks to the Chair, not to others in the 
second person.
  Mr. LEVIN. I will be glad to do that.
  So my colleagues want to make sure, if they can, that this doesn't 
happen. It's going to. You say, why can't we get together? The last 
months, the last year, all of this has proven the last thing you want 
to do is to get together. They think that the best thing to do is to 
make sure we can't. That won't help the small businesses of this 
country.
  This is an excellent, necessary bill for small businesses in this 
country who need the credit flowing. And those who vote ``no'' are 
standing in the way of that flow of credit for the small businesses of 
this country. Inexcusable.
  Mrs. MALONEY. Madam Speaker, the Small Business Jobs and Credit Act 
of 2010 (H.R. 5297) will strengthen our current economic recovery, by 
strengthening our small businesses.
  This legislation is sorely needed to bolster our small firms, which 
have lagged their larger counterparts in recovering from the Great 
Recession.
  While the economy has made significant progress since the beginning 
of 2010, including eight straight months of private sector job growth, 
small businesses are not yet fully participating in this recovery.
  The legislation before us will help change that--by providing small 
businesses with eight separate tax cuts totaling $12 billion; promoting 
lending to small firms; and encouraging investment in these engines of 
growth.
  A September report from the Joint Economic Committee, which I chair, 
provides fresh evidence of the challenges that continue to face small 
businesses.
  While hiring at medium and large firms began to pick up in mid-2009, 
hiring at small firms remains flat and has continued to decline for the 
smallest firms--those with fewer than 50 employees.
  Why aren't small businesses hiring?
  A big part of the answer is that they simply cannot get the loans 
they need.
  The number of loans to small businesses and the value of those loans 
are both dropping.
  Loans made to small businesses, which peaked at 27.2 million in the 
second quarter of 2008, have fallen by over 4.8 million since then, a 
drop of 17.8 percent.
  At the same time, the total value of those loans fell by $60 billion 
to approximately $650 billion.
  I have heard time and time again from my constituents that even as 
the economy gains strength, creditworthy businesses still cannot get 
the normal business loans they need to make payrolls, pay vendors, or 
expand their operations.
  I have heard this from a wide variety of businesses--from the old 
fashioned 100 year old, family-owned Eneslow Shoes, to the high tech 
QED National--a leading provider of Staff Augmentation services to IT 
organizations.
  Sound companies doing good business tell me they just can't get the 
credit they need.
  There is a provision in this legislation that I believe will get 
capital flowing again to small businesses.
  The $30 billion Small Business Lending Fund will leverage $300 
billion in loans to small businesses.
  Small and community banks receive capital from the Fund on terms that 
become more favorable as they make more loans to small businesses.
  The new lending fund is a big piece of this legislation--but it's 
just one piece.
  The bill also increases the loan limit for SBA 7(a) loans from $2 
million to $5 million.
  This is especially important for high-cost areas like New York City, 
where $2 million just doesn't go very far for a small business.
  The bill extends 50 percent bonus depreciation, enabling small 
businesses to immediately write off half the cost of investments in new 
equipment this year.
  It promotes entrepreneurship by doubling the tax deduction for start-
up expenses.
  And finally, 2 million self-employed individuals will be able to 
deduct the cost of health insurance for themselves and their families 
this year.

[[Page 16414]]

  Small businesses are the backbone of the American economy, generating 
innovation, growth, and jobs.
  Three out of four Americans work for establishments with fewer than 
250 employees.
  It's critical that we get small businesses firing on all cylinders. 
And it's frustrating it hasn't happened sooner. But, I'm confident that 
this legislation will help our small firms turn the corner, add 
employees and accelerate our economic growth.
  Mr. DINGELL. Madam Speaker, I am pleased to rise in support of the 
Senate amendment to H.R. 5297, the Small Business Lending Fund Act of 
2010. I want to commend the Chairman of the Financial Services 
Committee, Congressman Barney Frank of Massachusetts for his leadership 
on this legislation.
  This legislation should have come before us much sooner but my 
Republican colleagues across the Capitol decided to do what was 
politically advantageous for them rather than do what was right for the 
American people. Fortunately, we have the opportunity to pass this bill 
today and support the needs of our small businesses, create jobs, and 
continue our economic recovery. The legislation will provide small 
business with access to capital, spur investment, and promote 
entrepreneurship through a number of tax cuts to small business, a new 
lending initiative with community banks, and enhancements to existing 
programs that arm states with the tools to assist small businesses with 
their distinct needs, among other things.
  Throughout the two-year recession, we saw banks stop providing 
credit, and small businesses shedding jobs and closing their doors. 
Though our economy would undoubtedly be in far worse shape had we not 
passed the American Recovery and Reinvestment Act, banks are still 
being overly cautious about lending as our economy recovers. Thus, 
today we will pass a comprehensive small business job creation measure 
to allow small businesses to lead this recovery as they have aptly done 
in the past.
  Indeed, the Small Business Lending Fund Act has many provisions to 
promote job creation for everyday Americans and grow the economy. For 
example, to provide access to capital, the bill includes a $30 billion 
lending fund for small and medium size banks to leverage $300 billion 
in lending, a $1.5 billion state small business credit initiative to 
assist state capital access programs--a provision I helped write with 
my colleagues from Michigan, Congressman Gary Peters and Congressman 
Sander Levin, and a small business tax break that allows 100 percent of 
the capital gains from certain small business stock to be excluded from 
taxation. To encourage investment, the bill includes a tax break for 
small businesses to allow them to write off half of the cost of new 
equipment placed in service in 2010. And to promote entrepreneurship, 
the legislation doubles to $10,000 the tax deduction for start-up 
expenditures for entrepreneurs looking to launch a new venture. I am 
also particularly pleased that the bill will increase the maximum 
amount--from $2 million to $5 million--the Small Business 
Administration will guarantee for floorplan financing loans to auto 
dealers, which will help these economic pillars of our communities 
recover and put Americans back to work.
  Madam Speaker, Main Street Americans have had to wait for too long 
for this important bill. I am pleased to support it and urge my 
colleagues to do the same.
  Mr. HOLT. Madam Speaker, I rise in support of the Small Business Jobs 
and Credit Act.
  I regularly meet with Central New Jersey small business leaders and 
hear the difficulty they have finding the loans and credit needed to 
expand and hire more employees.
  The Small Business Jobs and Credit Act will help small businesses on 
Main Street to create jobs through a new $30 billion Small Business 
Lending Fund for small- and medium-sized community banks. In order to 
participate in this program, these banks will have to turn around and 
provide the credit that small businesses need to grow. The $30 billion 
fund, could leverage up to $300 billion in lending.
  These small- and medium-sized banks are staples in communities across 
the country and critical sources of capital to help small businesses 
get off the ground, but the financial crisis on Wall Street and 
subsequent recession diminished these banks' ability to lend.
  The bill also will support a State Small Business Credit Initiative, 
which will provide $2 billion in funding for new or existing state 
lending programs. These programs already exist in about 30 states, 
including my home state of New Jersey, and use small amounts of public 
dollars to generate substantial private financing. By supporting 
existing expertise in states around the country and using an easy-to-
replicate model, this program will be able to quickly increase small 
business lending and create jobs.
  In addition, this bill will improve access to credit by increasing 
Small Business Administration loan limits and lowering costs for small 
business to access SBA loans.
  But this bill does not merely expand access to credit--it contains 
billions of dollars in tax relief for small businesses. It will spur 
investment by giving a 100 percent exclusion from capital gains taxes 
on small business investment and by allowing businesses to write off 
immediately 50 percent of the cost of new equipment. It also will 
increase the tax deduction for business start-up expenditures. By 
allowing entrepreneurs to recover more start-up expenses, small 
business owners can focus more growing their businesses.
  It is unfortunate that this bill was held up by partisan 
obstructionists, because this is something that could help small 
businesses now. The small business owners I talk with in New Jersey are 
not concerned about political gamesmanship--they're concerned about 
lack of credit and tight lending standards. Passage of this legislation 
is long overdue and I urge my colleagues to support it and support our 
nation's small business leaders.
  Mr. HARE. Madam Speaker, I rise today in strong support of the Small 
Business Jobs Act of 2010. I want to thank our leadership for 
continuing the fight for American jobs and our Nation's small 
businesses.
  We all know that small businesses are the backbones of our local 
economies and bolster economic growth in our districts, States and 
Nation. Unfortunately, small businesses have not escaped the 
devastating impacts of this recession.
  When the credit markets tightened and payrolls declined, small 
business owners were forced to make incredibly tough decisions--
sometimes shutting their doors forever. This legislation will help 
existing small businesses grow and give entrepeneurs the assistance 
they need to open new ones.
  The bill creates a $30 billion small business lending fund in which 
financial institutions, such as the smaller community banks in my 
district, can leverage as much as $300 billion of badly needed credit 
to small businesses.
  I'm proud that this Congress continues to provide tax relief to our 
small businesses and I am happy that this bill includes another $12 
billion in tax incentives for them.
  The bottom line is that this bill gives small businesses on Main 
Street the tools they need to continue to spearhead our recovery and 
fuel our economy.
  As Members of Congress, we have a responsibility to restore the 
economic promise of this Nation, and I won't rest until small 
businesses across Illinois are secure, have the resources they need, 
and are able to put many more of our neighbors back to work.
  Madam Speaker, I urge all of my colleagues to vote in favor of both 
the rule and the underlying bill so that Americans can get the help 
they need during these tough times of economic recovery.
  Mrs. LOWEY. Madam Speaker, I rise today in support of the Small 
Business Jobs and Credit Act of 2010, which includes the Small Business 
Job Creation and Access to Capital Act I sponsored. This measure will 
increase the Small Business Administration loan limits to help small 
businesses with high inventory or property costs, as well as those in 
high cost-of-living areas, such as Westchester and Rockland Counties, 
NY.
  These provisions, which are fully paid for, are expected to increase 
lending to small businesses by $5 billion nationally in the first year.
  SBA loans create jobs and have helped small businesses in my 
district. I recently visited a Tea Shop that used an SBA microloan to 
make necessary repairs to the building prior to opening. This small 
business has now hired five employees, as well as plumber, electrician, 
and contractor to make the repairs. A flooring company in Elmsford that 
outgrew its first facility secured an SBA 504 loan to build a new 
11,000 square foot energy efficient facility, hire six new workers, and 
expand its business. In addition, the construction of the new facility 
helped bring business to manufacturers and contractors in my district.
  Small businesses will lead our economic recovery and create jobs. I 
urge the House to support this bill to help our small businesses.
  Mr. VAN HOLLEN. Madam Speaker, I rise in strong support of the Small 
Business Lending Fund Act of 2010 and urge its adoption without any 
further delay.
  Small businesses are the engine of our economy. They employ half of 
all private sector workers and have been responsible for nearly two-
thirds of net job creation over the past fifteen years. Recent economic 
data showing eight straight months of private sector job growth is an 
encouraging sign, but more needs to be done to support our small 
business job generators and keep the economy moving in the right 
direction.

[[Page 16415]]

  The centerpiece of this pro-growth legislation is a $30 billion 
lending fund for community banks serving small businesses. With 45 
percent of small businesses unable to get their credit needs met in 
2009, this kind of initiative--which can leverage up to $300 billion in 
new private sector lending--is critical to getting small businesses the 
financing they need to expand their payrolls at a time when jobs are 
what our economy needs most. Small Business Administration loan limits 
are increased. SBA borrowing fees are reduced or eliminated. And the 
nonpartisan Congressional Budget Office projects that the lending fund 
itself will actually reduce the deficit by $1 billion over ten years as 
participating banks repay their loans with interest.
  H.R. 5297 also delivers a potent package of timely tax relief to the 
small business sector. As a result of today's legislation, up to 
$500,000 worth of capital investment in equipment and machinery 
acquired in 2010 and 2011 can be immediately written off. General 
business credits can be carried back five years instead of one and 
won't be subject to the AMT. The available deduction for entrepreneurs' 
start-up expenses is doubled from $5,000 to $10,000, and direct equity 
investment in small businesses will receive a zero percent capital 
gains rate for qualifying investments made this year.
  Madam Speaker, although I might personally have prioritized a 
slightly different set of offsets, this legislation is nevertheless 
fully paid for and as a package deserves our support.
  Mr. HALL of New York. Madam Speaker, I was unavoidably detained this 
week and unable to vote on the Senate Amendment to H.R. 5297, the Small 
Business Lending Fund Act of 2010. Had I been present, I would have 
voted for this critical legislation. Earlier this year I met with small 
business leaders in the Hudson Valley and they told me that some of 
their top concerns were access to credit and the cost of doing 
business. They also strongly advocated for an extension of bonus 
depreciation to allow a quicker write-off of capital expenditures, and 
a larger start-up deduction. After these meetings, I introduced the 
Helping Small Businesses Start and Grow Act, which included a bonus 
depreciation extension, increased start-up deduction and a measure to 
help free up credit for small businesses. Similar provisions were 
included in the bill that passed the House this Wednesday. I was proud 
to vote for the Small Business Lending Fund Act when it was first 
considered in the House, and I appreciate the efforts of my colleagues 
to continue to advance these vital programs.
  Ms. RICHARDSON. Madam Speaker, I rise today in support of H.R. 5297, 
the ``Small Business Lending Fund Act of 2010,'' which will generate 
small business growth and job creation by providing tax relief, 
enhancing loan accessibility, and cutting inefficient bureaucratic red 
tape. H.R. 5297 will create 500,000 jobs without adding a dollar to the 
deficit and is one of the most crucial steps in our recovery.
  I thank Chairman Frank for his leadership in shepherding this bill to 
the floor and for his tireless commitment to reenergizing our economy 
by providing relief for struggling small businesses.
  Madam Speaker, small businesses are the engine of the American 
economy. They created two-thirds of all new jobs over the last 15 years 
and currently account for half of all private sector employees, 44 
percent of total U.S. payroll, and 97 percent of our Nation's exports. 
The 16,300 small businesses in my district are vital to our local 
economy. Ensuring that they have the credit they need to grow is one of 
my top priorities.
  Many small businesses in my district are ready to make investments, 
hire new workers, and help grow our economy out of this recession. But 
because of tight lending standards and a lack of credit, they are being 
prevented from growing to their full potential and making the 
investments that our economy needs. Since the financial crisis began in 
2008, the number of small business loans is down nearly 5 million.
  This bill takes unprecedented steps to cut taxes and provide credit 
for small businesses. It gives small businesses $12 billion in tax cuts 
by: (1) extending bonus depreciation, (2) allowing for 100 percent 
exclusion of capital gains on investments in small business, and (3) 
doubling the deduction for startup expenditures.
  The bill also creates a $30 billion Small Business Lending Fund to 
provide community banks with capital to increase small business 
lending. The fund is limited to the smallest banks (those holding $10 
billion or less in assets) with key performance-based standards to 
incentivize those lenders to extend new credit to small businesses.
  Madam Speaker, the bold actions taken by Congress and the 
Administration thus far have stopped the downward spiral caused by 
years of economic mismanagement. They prevented the Bush recession from 
becoming a second Great Depression. H.R. 5297 will generate the job 
creation and economic growth that will mark the next phase of our 
recovery. I urge my colleagues to join me in supporting H.R. 5297, 
loosening the credit squeeze, and freeing thousands of small businesses 
to put us back on the road to prosperity.
  Mr. FRANK of Massachusetts. Madam Speaker, attached is a Wall Street 
Journal article noting that the lack of credit was hurting many small 
businesses in our country.

                     [From the Wall Street Journal]

              Loan Squeeze Thwarts Small-Business Revival

                          (By Mark Whitehouse)

       Ypsilanti, MI.--Thomas Harrison, chief executive of 
     Michigan Ladder Co., has a plan that would contribute to the 
     U.S. economic recovery: Expand the 108-year-old company, 
     adding at least 20 jobs in the process. His chances of 
     getting the loan of $300,000 or more he needs to do so, 
     though, depend in part on what happens to folks like home 
     builder James Haeussler.
       Both are customers of the same community bank, the Bank of 
     Ann Arbor. Mr. Haeussler is struggling to repay $8.3 million 
     he and a partner borrowed to build a residential community in 
     nearby Saline, Mich. In this economic environment, the bank 
     doesn't want to take a chance on what it sees as a risky new 
     loan to Mr. Harrison.
       ``In a world where Jim Haeussler makes it, Tom Harrison 
     will make it,'' says Timothy Marshall, the bank's president. 
     ``But it's not prudent to do both loans at this point in 
     time. We're in a more risk-averse mode.''
       Mr. Marshall's reluctance sheds light on a problem looming 
     over the economy. A year and a half after the financial 
     crisis hit, the U.S. credit machine is still malfunctioning. 
     During the boom, credit was too abundant. Now the pendulum 
     has swung. With an eye toward limiting such swings, Sen. 
     Christopher Dodd is expected to unveil a bill Monday that 
     would be especially tough on big banks while preserving the 
     Fed's regulatory role, but the bill's prospects remain 
     uncertain.
       For a recovery to take hold, hundreds of thousands of small 
     businesses must find the confidence to expand and create 
     jobs. But when they get to that point, the local banks they 
     depend on--worried about borrowers' financial strength, 
     scrutinized by regulators and slammed by souring real-estate 
     loans--might not be willing or able to provide the credit 
     they need.
       While big companies have been able to borrow in bond 
     markets, smaller companies rely mainly on bank credit, which 
     has been shrinking. In 2009, total lending by U.S. banks fell 
     7.4%, the steepest drop since 1942. In all, the credit pulled 
     out of the economy by banks since the downfall of Lehman 
     Brothers in September 2008 amounts to about $700 billion, 
     more than double the amount so far distributed under 
     President Barack Obama's $787 billion stimulus program.
       ``It's a dismal situation,'' says Diane Swonk, chief 
     economist at Chicago-based financial-services firm Mesirow 
     Financial. ``Banks won't lend to businesses because they're 
     afraid they'll go bad, but that can become a self-fulfilling 
     prophecy.''
       The dearth of credit for small businesses could have a big 
     effect on prospects for restoring the 8.4 million jobs lost 
     since the recession began. From 1992 through the beginning of 
     the latest recession, companies with fewer than 100 employees 
     accounted for about 45% of net job growth, according to Labor 
     Department data.
       Policy makers have been looking for ways to reopen the 
     spigot. President Obama has proposed creating a $30 billion 
     fund to support small-business lending. Last month, in an 
     unusual show of solidarity, the Federal Reserve, the Federal 
     Deposit Insurance Corp. and other state and federal 
     regulators issued a joint statement urging banks to continue 
     lending to credit-worthy small enterprises.
       Making sure small firms get access to credit ``is crucial 
     to avoiding a Japan-type scenario of persistent stagnation,'' 
     says Mark Gertler, a New York University economist who has 
     done seminal research with Fed Chairman Ben Bernanke, then a 
     Princeton University professor, on how troubles with bank 
     lending can aggravate economic downturns.
       Getting banks to lend more won't be easy, given the rising 
     tide of defaults on loans made to finance housing 
     developments, office buildings, shopping malls and other 
     commercial real estate. Deutsche Bank expects banks to suffer 
     at least $250 billion in losses on such loans, with about 
     half coming in the next few years. Together with an estimated 
     $250 billion in further charge-offs on home mortgages, that's 
     more than double banks' current reserves against losses on 
     all types of loans.
       The stakes are particularly high for community banks, which 
     tend to be much more active in commercial real estate than 
     their larger counterparts. As of December 2009, such loans 
     comprised about 42% of all loans held by the 7,344 banks with 
     less than $1 billion in assets, compared to about 17% for the

[[Page 16416]]

     hundred or so banks with more than $10 billion in assets.
       Some bankers say policy makers' desire to encourage lending 
     isn't always reflected on the ground, where they say bank 
     inspectors are getting tougher about lending standards. ``For 
     the first time in my 37 years in banking, we're having to say 
     to our clients that we're not sure this will pass muster with 
     the regulators,'' says Larry Barbour, president and chief 
     executive of North State Bank in Raleigh, N.C. ``That's not 
     healthy.''
       Washtenaw County, Mich., which includes Ann Arbor, 
     Ypsilanti and Saline, offers a glimpse of how the cycle of 
     economic malaise and shrinking credit is playing out across 
     the country. The county includes the Willow Run plant, where 
     Ford Motor Co. once produced the B-24 Liberator bombers that 
     helped win World War II, the University of Michigan football 
     stadium, and hospital complexes and high-tech start-ups in 
     Ann Arbor. As of December, Washtenaw's unemployment rate 
     stood at 9%, close to the national average.
       Michigan Ladder's Mr. Harrison, 44 years old, remembers 
     vividly the day in September 2008 when the recession hit 
     home. The company, which manufactures wooden ladders and 
     distributes imported aluminum and fiberglass models, had been 
     doing well despite the financial crisis. Sales were up 6% 
     over the previous year, and Mr. Harrison had expanded the 
     company's staff to about 28, from 20 at the beginning of the 
     year.
       But during the week of Sept. 15, the company's largest 
     supplier of aluminum and fiberglass ladders suddenly refused 
     to deliver ladders unless it was paid in advance. Within 
     days, says Mr. Harrison, Michigan Ladder lost as much as $1 
     million of the supplier credit on which it relied to pay for 
     raw materials and maintain its inventory of ladders. At the 
     same time, its customers started failing to pay for ladders 
     it had already delivered.
       ``Literally overnight, the whole world changed for us,'' 
     says Mr. Harrison. ``It was simply too much of a shock--too 
     much of a change, too quickly.'' He laid off eight workers in 
     December 2008 and another eight in 2009 as sales fell 40%.
       Mr. Harrison has since lined up new credit from suppliers, 
     and he says sales are on track to rise 15% this year. He 
     thinks the time has come to implement the expansion project 
     he shelved when the crisis hit. The plan: Produce in Michigan 
     the aluminum and fiberglass ladders he currently imports from 
     places such as Mexico and China. He already has the 
     customers, and he calculates that manufacturing in Michigan 
     will actually boost his profit margins, in part because the 
     savings on shipping will offset the higher cost of U.S. 
     labor.
       ``We can do this,'' he says. ``We can be a low-cost 
     producer, and we will have a made-in-USA product, which we 
     think will have some appeal to people.''
       The Bank of Ann Arbor is Mr. Harrison's best bet to finance 
     his project. Larger banks typically don't deal with companies 
     the size of Michigan Ladder. Also, Bank of Ann Arbor, which 
     has $543 million in assets, has weathered the crisis much 
     better than most of its peers. It turned profits every year, 
     expanded overall lending and declined the support of the 
     government Troubled Asset Relief Program.
       The bank has made loans to finance expansions for some of 
     its stronger customers, such as Solohill Engineering, which 
     makes products used in the manufacture of vaccines and more 
     than doubled sales in 2009. Nonetheless, says its president, 
     Mr. Marshall, fears about a weak recovery are prompting even 
     healthy banks to be careful, a trend he recognizes could help 
     make those fears a reality.
       ``It's kind of a vicious cycle,'' he says. ``Anytime you're 
     in an economic environment like we are, bankers are going to 
     be more conservative.''
       One of bankers' main concerns is the damage the recession 
     has done to many companies' finances. Values of real estate 
     and other things small business owners can put up as 
     collateral for loans have fallen so far, so fast, that many 
     businesses have little to offer. Also, a year or more of 
     losses have eroded the value of owners' stakes in companies, 
     leaving less of a cushion against bankruptcy.
       Mr. Marshall says such financial concerns are a big reason 
     he's not ready to lend to Mr. Harrison, who says his company 
     took heavy losses in 2008 before returning to profitability 
     in 2009. Mr. Harrison says he's exploring ways to raise new 
     money from investors, but so far to no avail. ``It's not 
     reasonable to expect that [the Bank of Ann Arbor] can make up 
     for all the credit companies like ours have lost,'' he says.
       Mr. Harrison's credit difficulties also are linked to the 
     travails of other borrowers such as Mr. Haeussler, the 51-
     year-old president of Peters Building. In 2005, he and a 
     partner began developing a 625-acre piece of land known as 
     Saline Valley Farms, the site of a cooperative farm in the 
     mid-1900s.
       The downturn hit Mr. Haeussler hard in 2007, when home 
     builder Toll Brothers called with bad news: It wouldn't 
     exercise its option to purchase 93 luxury-home lots, the 
     entire first phase of the Saline Valley Farms project. When 
     the $8.3 million loan he and a partner had taken out to grade 
     the lots and build infrastructure came due in late 2008, they 
     still owed $6.7 million and had 76 empty lots, the estimated 
     value of which had fallen to about $1.4 million.
       ``It was perfectly wrong timing,'' says Mr. Haeussler.
       Losses on loans to developers such as Mr. Haeussler have 
     taken a toll on community banks, eroding their capital and 
     limiting their capacity to make new loans. Bank of Ann Arbor 
     has moved more quickly than other banks to recognize losses, 
     charging off nearly one-quarter of its construction and 
     development loans in 2009. That compares to about 5% for all 
     banks. In its remaining portfolio of such loans, about 6% are 
     delinquent, compared to about 16% for all banks.
       Many community banks are renegotiating troubled real-estate 
     loans. In Mr. Haeussler's case, the Bank of Ann Arbor cut a 
     deal: In return for a four-year extension, Mr. Haeussler and 
     his partner more than quadrupled the amount of collateral 
     backing the loan, putting up the entire Saline Valley Farms 
     project and more. Even with the added collateral, the bank 
     charged off $2.1 million of the loan, effectively recognizing 
     that it may never get the money back.
       The bank figures that giving Mr. Haeussler more time 
     increases the odds he will pay off his loan. But such deals 
     tie up cash on what essentially are bets that existing 
     borrowers will make it through. That leaves banks, including 
     Bank of Ann Arbor, with less appetite to make new loans to 
     customers like Mr. Harrison, who doesn't have the resources 
     Mr. Haeussler and his partner used to secure their loan.
       Mr. Haeussler, for his part, says he's trying not to think 
     too much about all that's hanging in the balance, which could 
     include his entire business. ``It's a little unnerving at 
     times,'' he says. ``But you just have to put your head down 
     and work through it.''

  Mr. POMEROY. Madam Speaker, I rise in support of H.R. 5297--Small 
Business Lending Fund Act of 2010, a bill that brings billions of 
dollars of tax relief and access to capital to small businesses.
  Helping North Dakota businesses create jobs is one of my top 
priorities. In North Dakota, small business is business. Nearly 80 
percent of North Dakotans work for companies with less than 500 
employees and 60 percent work for companies with less than 100 
employees. Small businesses are a proven engine of job creation. During 
the last economic expansion, companies with less than 20 employees 
accounted for 40 percent of the job growth while accounting for only 25 
percent of all jobs.
  Today, we give this engine of job creation the fuel it needs to 
charge forward.
  Surveys of National Federation of Independent Business members 
identified the number one economic concern facing small businesses as 
poor sales stemming from a lack of demand from consumers. This has been 
their top concern since the recession and most recently 31 percent of 
respondents reported poor sales as their most important problem. 
Beneath this response is the fact that many small businesses want to 
borrow but cannot. So, they need help with capital too.
  To help small business, I introduced bipartisan legislation, the 
Small Business Jobs and Tax Relief Act, which would generate demand for 
products and services while putting more capital into the hands of 
small businesses.
  One of the lingering difficulties is that many small businesses have 
limited access to the capital they need to operate, grow, and create 
new jobs. By providing small business tax relief, Congress can free up 
money, which will help small businesses feel that they can hire new 
employees and make investments in new equipment that will build demand 
for goods and services. I am pleased that tax cuts from the bill I 
authored are in key components in this bill before the House today.
  One of the several good measures in H.R. 5297 that will generate the 
demand that our small business need to grow is bonus depreciation. It 
is one of the best ways to stimulate the economy and create jobs. Bonus 
depreciation accelerates the rate at which businesses can deduct the 
cost of capital expenditures so it encourages companies to spend while 
it boosts company cash flows.
  Economists rate bonus depreciation as one of the most economically 
productive tax initiatives. In a 2001 analysis, the Institute for 
Policy Innovation estimated that every $1 of tax cuts devoted to 
accelerated depreciation generates about $9 new growth in the economy. 
Looking back at times when bonus depreciation was used to encourage 
capital investment, economists determined that it was responsible for 
creating several hundred thousand jobs.
  Out in our small towns, many Americans are creating job opportunities 
for themselves and for others by starting new small business. We need 
to encourage this spirit of free enterprise. The Small Business Lending 
Fund Act of 2010 will help new start-up businesses in

[[Page 16417]]

two ways that I heard from North Dakotans would be helpful and included 
in my bill:
  1. The bill would double the current amount a start-up business can 
deduct, so that a new business owner could deduct $10,000 of expenses 
he or she might have incurred to set up shop. Without the bill before 
us today, that deduction for start up costs would be limited to only 
$5,000; and
  2. The 100 percent exclusion from tax of gains on small business 
stock in H.R. 5297 would expand the access to capital for small 
business across the county.
  This bill also reduces the regulatory burden on small business by 
modernizing the tax accounting required for business provided cell 
phones and eliminating outlandish penalties for abusive tax shelters.
  Small businesses are most likely to conduct business while they are 
away from their offices. Nine out of ten small businesses indicate they 
use mobile phones for their business and one in seven feel that their 
businesses could not survive without mobile devices. The Internal 
Revenue Code still contains paperwork requirements for wireless phones 
from the 1970s. Rather than spending money on accountants and the costs 
associated with an IRS audit, H.R. 5297 allows small businesses to 
spend it instead on creating jobs.
  While the Internal Revenue Service must stop abusive tax shelters, 
today will vote to eliminate a disproportionate effect that some tax 
penalties have on small businesses. No longer will small businesses 
face outlandish penalties for failing to disclose on their taxes 
reportable transactions. The bill brings such penalties into proportion 
with the underlying tax savings and does not put business owners out of 
business.
  In conclusion, I would like to thank Chairman Levin for including 
small business tax incentives, especially bonus depreciation, and 
relief from excessive regulations that I authored in the bipartisan 
Small Business Jobs and Tax Relief Act in the final bill that we vote 
on today.
  The Small Business Lending Fund Act of 2010 is good for North Dakota 
small businesses. I urge my colleagues to vote yes on H.R. 5297.
  Ms. SCHAKOWSKY. Madam Speaker, I rise today in strong support of H.R. 
5297, the Small Business Jobs Act. Legislation that provides much 
needed lending to millions of small businesses and offers tax 
incentives to help small businesses grow, hire, and fuel our economy.
  As we all know, small businesses are a key engine of our economy, 
creating two-thirds of the new jobs over the last 15 years. America's 
27 million small businesses continue to face a lack of credit and tight 
lending standards, with the number of small businesses loans down 
nearly 5 million since the financial crisis in 2008 under President 
Bush.
  Last month, I went on a tour of small businesses throughout my 
district. I have also met individually with many small business owners 
who are struggling to stay open. While visiting these businesses, I saw 
firsthand the serious challenges they face while the United States 
struggles to overcome its most significant economic crisis since the 
Great Depression. It was clear to me that they have all the tools 
necessary to prosper but need our financial institutions to function 
properly and provide them the resources to succeed.
  H.R. 5297 will provide small businesses with this opportunity by 
increasing access to capital and spurring investment and growth 
throughout our country. In fact, it is estimated that this bill alone 
will create 500,000 new jobs in America.
  Madam Speaker, I am proud to support this legislation, which will 
provide our small businesses with the assistance they need to compete 
in this difficult economic climate. I know it will have a substantial 
impact on my district and strongly urge my colleagues to support it.
  Ms. McCOLLUM. Madam Speaker, I rise in strong support of the Small 
Business Lending Fund Act of 2010 (H.R. 5297). This legislation will 
extend much needed credit and reduce taxes for small businesses all 
across the country.
  Small businesses are the engine of job creation in our economy and 
are playing a crucial role in helping America recover from the worst 
recession in 75 years. Still, small main street businesses are 
struggling to expand due to a lack of credit. The Small Business 
Lending Fund Act of 2010 (H.R. 5297) helps small businesses expand by 
creating a new $30 billion fund for small and medium-sized community 
banks. This fund is expected to leverage up to $300 billion in small 
business lending.
  The economic impact of this legislation would be significant. It will 
create up to 500,000 jobs and provide loan guarantees to approximately 
8,000 community banks. H.R. 5297 provides $12 billion in tax breaks for 
small businesses, including write-offs on capital investments and 
credits for new hires. More importantly, his bill will not add a dime 
to the deficit because it is fully paid for by closing tax loopholes.
  Congressional Republicans repeatedly say they support small 
businesses while at the same time deliberately delaying and obstructing 
this legislation, which cuts taxes and expands access to credit for 
small businesses. When our economy is recovering and small businesses 
need access to credit, new American jobs should not fall victim to the 
gridlock caused by Republicans in Congress.
  There is no question in my mind that we will get America's economy 
back. Until credit is flowing and houses are selling, until customers 
are confident and job creation is back on track, I will continue to 
take actions that place our country on a sustained path of broad-based 
economic growth.
  I urge my colleagues to join me in voting for the Small Business 
Lending Fund Act of 2010.
  Mr. LEVIN. I yield back the balance of my time.
  The SPEAKER pro tempore. Pursuant to House Resolution 1640, the 
previous question is ordered.
  The question is on the motion offered by the gentlewoman from 
Illinois (Ms. Bean).
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. LEVIN. Madam Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on the motion to concur will be followed by 5-minute votes 
on motions to suspend the rules on the following measures: H.R. 5307, 
H.R. 5756, H.R. 3199, H.R. 1745, and H.R. 5710.
  The vote was taken by electronic device, and there were--yeas 237, 
nays 187, not voting 9, as follows:

                             [Roll No. 539]

                               YEAS--237

     Ackerman
     Adler (NJ)
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berkley
     Berman
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boccieri
     Boswell
     Boucher
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson (IN)
     Chandler
     Chu
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly (VA)
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Critz
     Crowley
     Cuellar
     Cummings
     Dahlkemper
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (TN)
     DeGette
     Delahunt
     DeLauro
     Deutch
     Dicks
     Dingell
     Doggett
     Donnelly (IN)
     Doyle
     Driehaus
     Edwards (MD)
     Ellison
     Ellsworth
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Foster
     Frank (MA)
     Fudge
     Garamendi
     Giffords
     Gonzalez
     Gordon (TN)
     Grayson
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Halvorson
     Hare
     Harman
     Hastings (FL)
     Heinrich
     Higgins
     Hill
     Himes
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson Lee (TX)
     Johnson (GA)
     Johnson, E. B.
     Jones
     Kagen
     Kanjorski
     Kaptur
     Kildee
     Kilpatrick (MI)
     Kilroy
     Kind
     Kirkpatrick (AZ)
     Kissell
     Klein (FL)
     Kosmas
     Kratovil
     Kucinich
     Langevin
     Larsen (WA)
     Larson (CT)
     Lee (CA)
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lujan
     Lynch
     Maffei
     Maloney
     Markey (CO)
     Markey (MA)
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum
     McDermott
     McGovern
     McIntyre
     McMahon
     McNerney
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Minnick
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy (NY)
     Murphy, Patrick
     Nadler (NY)
     Napolitano
     Neal (MA)
     Nye
     Oberstar
     Obey
     Olver
     Ortiz
     Owens
     Pallone
     Pascrell
     Pastor (AZ)
     Payne
     Pelosi
     Perlmutter
     Perriello
     Peters
     Pingree (ME)
     Pomeroy
     Price (NC)
     Quigley
     Rahall
     Rangel
     Reyes
     Richardson
     Rodriguez
     Ross
     Rothman (NJ)
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schauer
     Schiff
     Schrader
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Space
     Speier
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Teague
     Thompson (CA)
     Thompson (MS)
     Tierney
     Tonko
     Towns
     Tsongas
     Van Hollen
     Visclosky
     Walz
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch
     Wilson (OH)
     Woolsey
     Wu
     Yarmuth

[[Page 16418]]



                               NAYS--187

     Aderholt
     Akin
     Alexander
     Austria
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett
     Barton (TX)
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Boehner
     Bonner
     Bono Mack
     Boozman
     Boustany
     Boyd
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp
     Campbell
     Cantor
     Cao
     Capito
     Carter
     Cassidy
     Castle
     Chaffetz
     Childers
     Coble
     Coffman (CO)
     Cole
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     DeFazio
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Djou
     Dreier
     Duncan
     Edwards (TX)
     Ehlers
     Emerson
     Flake
     Fleming
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gingrey (GA)
     Gohmert
     Goodlatte
     Granger
     Graves (GA)
     Graves (MO)
     Griffith
     Guthrie
     Hall (TX)
     Harper
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Hoekstra
     Hunter
     Inglis
     Issa
     Jenkins
     Johnson (IL)
     Johnson, Sam
     Jordan (OH)
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Lamborn
     Lance
     Latham
     LaTourette
     Latta
     Lee (NY)
     Lewis (CA)
     Linder
     LoBiondo
     Lucas
     Luetkemeyer
     Lummis
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul
     McClintock
     McCotter
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Mitchell
     Moran (KS)
     Murphy, Tim
     Myrick
     Neugebauer
     Nunes
     Olson
     Paul
     Paulsen
     Pence
     Peterson
     Petri
     Pitts
     Platts
     Poe (TX)
     Polis (CO)
     Posey
     Price (GA)
     Putnam
     Radanovich
     Rehberg
     Reichert
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Rooney
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Scalise
     Schmidt
     Schock
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuler
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Stearns
     Sullivan
     Taylor
     Terry
     Thompson (PA)
     Thornberry
     Tiahrt
     Tiberi
     Titus
     Turner
     Upton
     Velazquez
     Walden
     Wamp
     Westmoreland
     Whitfield
     Wilson (SC)
     Wittman
     Wolf
     Young (AK)

                             NOT VOTING--9

     Blunt
     Boren
     Bright
     Castor (FL)
     Fallin
     Hall (NY)
     Kennedy
     Meek (FL)
     Young (FL)

                              {time}  1503

  Messrs. EDWARDS of Texas, BACHUS, and EHLERS changed their vote from 
``yea'' to ``nay.''
  Mr. PALLONE changed his vote from ``nay'' to ``yea.''
  So the motion was agreed to.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.
  Stated for:
  Mr. CAO. Madam Speaker, on rollcall No. 539 I misunderstood the vote 
and inadvertently voted ``nay'' when I wanted to vote ``yea.''
  Ms. CASTOR of Florida. Madam Speaker, I was not present for a vote 
today. If I were present, I would have voted:
  ``Yea'' on rollcall No. 539, on passage of H.R. 5297, the Small 
Business Jobs and Credit Act of 2010.

                          ____________________