To direct the Administrator of the Small Business Administration to establish and carry out a program to provide loans directly to small business concerns, and for other purposes.
Mr. COURTNEY introduced the following bill; which was referred to the Committee on Small Business
To direct the Administrator of the Small Business Administration to establish and carry out a program to provide loans directly to small business concerns, and for other purposes.
(a) Establishment- The Administrator of the Small Business Administration shall establish and carry out a program under which the Administrator is authorized to make loans directly to eligible small business concerns (in this section referred to as the ‘program’).
(b) Administration- Except as otherwise provided under this section and to the extent practicable, the Administrator of the Small Business Administration shall carry out the program--
(1) using the administrative resources of the Small Business Administration; and
(2) in a manner similar to the loan program under section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
(c) Use of Loan Funds- Amounts from a loan made under the program may be used by a small business concern for the operation or expansion of such concern or for any other purpose allowed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
(d) Loan Amount- The maximum amount of a loan made under the program shall be $1,500,000.
(e) Loan Term- The maximum term for repayment of a loan made under the program shall be 25 years.
(f) Loan Interest Rate- The interest rate with respect to a loan made under the program shall be the sum of--
(g) Accountability-
(1) SBA REPORTS- Not later than 30 days after the date of enactment of this Act and every month thereafter, the Administrator of the Small Business Administration shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report describing--
(A) the number of loans made under the program;
(B) the amounts of loans made under the program;
(C) the uses of loans made under the program;
(D) repayment progress with respect to loans made under the program;
(E) the default rate with respect to loans made under the program; and
(F) other relevant information with respect to the program.
(2) GAO REPORTS-
(A) REVIEW- The Comptroller General of the United States shall conduct a review of the program to evaluate the effectiveness of the program and identify any waste or abuse relating to the program.
(B) REPORTS- Not later than 90 days after the date of enactment of this Act and quarterly thereafter, the Comptroller General shall submit to the Committee on Small Business of the House of Representatives and the Committee on Small Business and Entrepreneurship of the Senate a report describing the results of the review conducted under subparagraph (A).
(h) Definitions- In this section, the following definitions apply:
(1) ELIGIBLE SMALL BUSINESS CONCERN- The term ‘eligible small business concern’ means a small business concern that the Administrator of the Small Business Administration determines--
(A) is economically healthy;
(B) has good credit; and
(C) is unable to obtain a loan on reasonable terms from a non-Federal source (which may be demonstrated with respect to a small business concern by evidence that a lender discontinued a line of credit of such concern notwithstanding the good credit of such concern).
(2) SMALL BUSINESS CONCERN- The term ‘small business concern’ has the meaning given such term under section 3(a) of the Small Business Act (15 U.S.C. 632(a)).
(i) Authorization of Appropriations- There is authorized to be appropriated to the Administrator of the Small Business Administration $10,000,000,000 to carry out the program, including the hiring of necessary personnel.
(j) Termination- The program shall terminate on the date that is 2 years after the date of enactment of this Act.
U.S. Congress - Text of H.R.4295 as Introduced in House Small Business Emergency Capital Assistance Act of 2009
