Version	Word Count	Changes From Previous Version	Percent Change
Introduced in House	3,987	n/a	n/a
Reported in House	10,367	115	75%
Engrossed in House	20,660	148	63%
Placed on Calendar Senate	20,630	8	0%
Engrossed Amendment Senate	45,388	1,099	89%
Enrolled Bill	43,508	125 Show Changes Hide Changes	0%

Display Version Introduced in House Reported in House Engrossed in House Placed on Calendar Senate Engrossed Amendment Senate Enrolled Bill

Most commented sections:

• Paragraph 1,838 (2 comments)
• Paragraph 1,829 (1 comments)
• Paragraph 1,123 (1 comments)

HR 5297 EAS

In the Senate of the United States,

September 16, 2010.

Resolved, That the bill from the House of Representatives (H.R.5297CommentsClose CommentsPermalink

) entitled ‘An Act t One Hundred Eleventh Congress CommentsClose CommentsPermalink

CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

’, do pass with the following

AMENDMENT:

Strike all after the enacting clause and insert the following:

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

SECTION 1. SHORT TITLE.CommentsClose CommentsPermalink

This Act may be cited as the ‘Small Business Jobs Act of 2010’.CommentsClose CommentsPermalink

SEC. 2. TABLE OF CONTENTS.CommentsClose CommentsPermalink

The table of contents for this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title.CommentsClose CommentsPermalink





Sec. 2. Table of contents.CommentsClose CommentsPermalink

TITLE I--SMALL BUSINESSES

Sec. 1001. Definitions.CommentsClose CommentsPermalink

Subtitle A--Small Business Access to Credit

Sec. 1101. Short title.CommentsClose CommentsPermalink

PART I--Next Steps for Main Street Credit Availability

Sec. 1111. Section 7(a) business loans.CommentsClose CommentsPermalink





Sec. 1112. Maximum loan amounts under 504 program.CommentsClose CommentsPermalink





Sec. 1113. Maximum loan limits under microloan program.CommentsClose CommentsPermalink





Sec. 1114. Loan guarantee enhancement extensions.CommentsClose CommentsPermalink





Sec. 1115. New Markets Venture Capital company investment limitations.CommentsClose CommentsPermalink





Sec. 1116. Alternative size standards.CommentsClose CommentsPermalink





Sec. 1117. Sale of 7(a) loans in secondary market.CommentsClose CommentsPermalink





Sec. 1118. Online lending platform.CommentsClose CommentsPermalink





Sec. 1119. SBA Secondary Market Guarantee Authority.CommentsClose CommentsPermalink

PART II--Small Business Access to Capital

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

PART III--Other Matters

Sec. 1131. Small business intermediary lending pilot program.CommentsClose CommentsPermalink





Sec. 1132. Public policy goals.CommentsClose CommentsPermalink





Sec. 1133. Floor plan pilot program extension.CommentsClose CommentsPermalink





Sec. 1134. Guarantees for bonds and notes issued for community or economic development purposes.CommentsClose CommentsPermalink





Sec. 1135. Temporary express loan enhancement.CommentsClose CommentsPermalink





Sec. 1136. Prohibition on using TARP funds or tax increases.CommentsClose CommentsPermalink

Subtitle B--Small Business Trade and Exporting

Sec. 1201. Short title.CommentsClose CommentsPermalink





Sec. 1202. Definitions.CommentsClose CommentsPermalink





Sec. 1203. Office of International Trade.CommentsClose CommentsPermalink





Sec. 1204. Duties of the Office of International Trade.CommentsClose CommentsPermalink





Sec. 1205. Export assistance centers.CommentsClose CommentsPermalink





Sec. 1206. International trade finance programs.CommentsClose CommentsPermalink





Sec. 1207. State Trade and Export Promotion Grant Program.CommentsClose CommentsPermalink





Sec. 1208. Rural export promotion.CommentsClose CommentsPermalink





Sec. 1209. International trade cooperation by small business development centers.CommentsClose CommentsPermalink

Subtitle C--Small Business Contracting

PART I--Contract Bundling

Sec. 1311. Small Business Act.CommentsClose CommentsPermalink





Sec. 1312. Leadership and oversight.CommentsClose CommentsPermalink





Sec. 1313. Consolidation of contract requirements.CommentsClose CommentsPermalink





Sec. 1314. Small business teams pilot program.CommentsClose CommentsPermalink

PART II--Subcontracting Integrity

Sec. 1321. Subcontracting misrepresentations.CommentsClose CommentsPermalink





Sec. 1322. Small business subcontracting improvements.CommentsClose CommentsPermalink

PART III--Acquisition Process

Sec. 1331. Reservation of prime contract awards for small businesses.CommentsClose CommentsPermalink





Sec. 1332. Micro-purchase guidelines.CommentsClose CommentsPermalink





Sec. 1333. Agency accountability.CommentsClose CommentsPermalink





Sec. 1334. Payment of subcontractors.CommentsClose CommentsPermalink





Sec. 1335. Repeal of Small Business Competitiveness Demonstration Program.CommentsClose CommentsPermalink

PART IV--Small Business Size and Status Integrity

Sec. 1341. Policy and presumptions.CommentsClose CommentsPermalink





Sec. 1342. Annual certification.CommentsClose CommentsPermalink





Sec. 1343. Training for contracting and enforcement personnel.CommentsClose CommentsPermalink





Sec. 1344. Updated size standards.CommentsClose CommentsPermalink





Sec. 1345. Study and report on the mentor-protege program.CommentsClose CommentsPermalink





Sec. 1346. Contracting goals reports.CommentsClose CommentsPermalink





Sec. 1347. Small business contracting parity.CommentsClose CommentsPermalink

Subtitle D--Small Business Management and Counseling Assistance

Sec. 1401. Matching requirements under small business programs.CommentsClose CommentsPermalink





Sec. 1402. Grants for SBDCs.CommentsClose CommentsPermalink

Subtitle E--Disaster Loan Improvement

Sec. 1501. Aquaculture business disaster assistance.CommentsClose CommentsPermalink

Subtitle F--Small Business Regulatory Relief

Sec. 1601. Requirements providing for more detailed analyses.CommentsClose CommentsPermalink





Sec. 1602. Office of advocacy.CommentsClose CommentsPermalink

Subtitle G--Appropriations Provisions

Sec. 1701. Salaries and expenses.CommentsClose CommentsPermalink





Sec. 1702. Business loans program account.CommentsClose CommentsPermalink





Sec. 1703. Community Development Financial Institutions Fund program account.CommentsClose CommentsPermalink





Sec. 1704. Small business loan guarantee enhancement extensions.CommentsClose CommentsPermalink

TITLE II--TAX PROVISIONS

Sec. 2001. Short title.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink





Sec. 2012. General business credits of eligible small businesses for 2010 carried back 5 years.CommentsClose CommentsPermalink





Sec. 2013. General business credits of eligible small businesses in 2010 not subject to alternative minimum tax.CommentsClose CommentsPermalink





Sec. 2014. Temporary reduction in recognition period for built-in gains tax.CommentsClose CommentsPermalink

PART II--Encouraging Investment

Sec. 2021. Increased expensing limitations for 2010 and 2011; certain real property treated as section 179 property.CommentsClose CommentsPermalink





Sec. 2022. Additional first-year depreciation for 50 percent of the basis of certain qualified property.CommentsClose CommentsPermalink





Sec. 2023. Special rule for long-term contract accounting.CommentsClose CommentsPermalink

PART III--Promoting Entrepreneurship

Sec. 2031. Increase in amount allowed as deduction for start-up expenditures in 2010.CommentsClose CommentsPermalink





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.CommentsClose CommentsPermalink

PART IV--Promoting Small Business Fairness

Sec. 2041. Limitation on penalty for failure to disclose reportable transactions based on resulting tax benefits.CommentsClose CommentsPermalink





Sec. 2042. Deduction for health insurance costs in computing self-employment taxes in 2010.CommentsClose CommentsPermalink





Sec. 2043. Removal of cellular telephones and similar telecommunications equipment from listed property.CommentsClose CommentsPermalink

Subtitle B--Revenue Provisions

PART I--Reducing the Tax Gap

Sec. 2101. Information reporting for rental property expense payments.CommentsClose CommentsPermalink





Sec. 2102. Increase in information return penalties.CommentsClose CommentsPermalink





Sec. 2103. Report on tax shelter penalties and certain other enforcement actions.CommentsClose CommentsPermalink





Sec. 2104. Application of continuous levy to tax liabilities of certain Federal contractors.CommentsClose CommentsPermalink

PART II--Promoting Retirement Preparation

Sec. 2111. Participants in government section 457 plans allowed to treat elective deferrals as Roth contributions.CommentsClose CommentsPermalink





Sec. 2112. Rollovers from elective deferral plans to designated Roth accounts.CommentsClose CommentsPermalink





Sec. 2113. Special rules for annuities received from only a portion of a contract.CommentsClose CommentsPermalink

PART III--Closing Unintended Loopholes

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





Sec. 2122. Source rules for income on guarantees.CommentsClose CommentsPermalink

PART IV--Time for Payment of Corporate Estimated Taxes

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

TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVE

Sec. 3001. Short title.CommentsClose CommentsPermalink





Sec. 3002. Definitions.CommentsClose CommentsPermalink





Sec. 3003. Federal funds allocated to States.CommentsClose CommentsPermalink





Sec. 3004. Approving States for participation.CommentsClose CommentsPermalink





Sec. 3005. Approving State capital access programs.CommentsClose CommentsPermalink





Sec. 3006. Approving collateral support and other innovative credit access and guarantee initiatives for small businesses and manufacturers.CommentsClose CommentsPermalink





Sec. 3007. Reports.CommentsClose CommentsPermalink





Sec. 3008. Remedies for State program termination or failures.CommentsClose CommentsPermalink





Sec. 3009. Implementation and administration.CommentsClose CommentsPermalink





Sec. 3010. Regulations.CommentsClose CommentsPermalink





Sec. 3011. Oversight and audits.CommentsClose CommentsPermalink

TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONS

Subtitle A--Small Business Lending Fund

Sec. 4101. Purpose.CommentsClose CommentsPermalink





Sec. 4102. Definitions.CommentsClose CommentsPermalink





Sec. 4103. Small business lending fund.CommentsClose CommentsPermalink





Sec. 4104. Additional authorities of the Secretary.CommentsClose CommentsPermalink





Sec. 4105. Considerations.CommentsClose CommentsPermalink





Sec. 4106. Reports.CommentsClose CommentsPermalink





Sec. 4107. Oversight and audits.CommentsClose CommentsPermalink





Sec. 4108. Credit reform; funding.CommentsClose CommentsPermalink





Sec. 4109. Termination and continuation of authorities.CommentsClose CommentsPermalink





Sec. 4110. Preservation of authority.CommentsClose CommentsPermalink





Sec. 4111. Assurances.CommentsClose CommentsPermalink





Sec. 4112. Study and report with respect to women-owned, veteran-owned, and minority-owned businesses.CommentsClose CommentsPermalink





Sec. 4113. Sense of Congress.CommentsClose CommentsPermalink

Subtitle B--Other Provisions

PART I--Small Business Export Promotion Initiatives

Sec. 4221. Short title.CommentsClose CommentsPermalink





Sec. 4222. Global business development and promotion activities of the Department of Commerce.CommentsClose CommentsPermalink





Sec. 4223. Additional funding to improve access to global markets for rural businesses.CommentsClose CommentsPermalink





Sec. 4224. Additional funding for the ExporTech program.CommentsClose CommentsPermalink





Sec. 4225. Additional funding for the market development cooperator program of the Department of Commerce.CommentsClose CommentsPermalink





Sec. 4226. Hollings Manufacturing Partnership Program; Technology Innovation Program.CommentsClose CommentsPermalink





Sec. 4227. Sense of the Senate concerning Federal collaboration with States on export promotion issues.CommentsClose CommentsPermalink





Sec. 4228. Report on tariff and nontariff barriers.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

TITLE V--BUDGETARY PROVISIONS

Sec. 5001. Determination of budgetary effects.CommentsClose CommentsPermalink

TITLE I--SMALL BUSINESSESCommentsClose CommentsPermalink

SEC. 1001. DEFINITIONS.CommentsClose CommentsPermalink

In this title--CommentsClose CommentsPermalink





(1) the terms ‘Administration’ and ‘Administrator’ mean the Small Business Administration and the Administrator thereof, respectively; andCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink

Subtitle A--Small Business Access to CreditCommentsClose CommentsPermalink

SEC. 1101. SHORT TITLE.CommentsClose CommentsPermalink

This subtitle may be cited as the ‘Small Business Job Creation and Access to Capital Act of 2010’.CommentsClose CommentsPermalink

PART I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITY

SEC. 1111. SECTION 7(a) BUSINESS LOANS.CommentsClose CommentsPermalink

(a) Amendment- Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)(A)--CommentsClose CommentsPermalink





(A) in clause (i), by striking ‘75 percent’ and inserting ‘90 percent’; andCommentsClose CommentsPermalink





(B) in clause (ii), by striking ‘85 percent’ and inserting ‘90 percent’; andCommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(b) Prospective Repeal- Effective January 1, 2011, section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)(A)--CommentsClose CommentsPermalink





(A) in clause (i), by striking ‘90 percent’ and inserting ‘75 percent’; andCommentsClose CommentsPermalink





(B) in clause (ii), by striking ‘90 percent’ and inserting ‘85 percent’; andCommentsClose CommentsPermalink





(2) in paragraph (3)(A), by striking ‘$4,500,000’ and inserting ‘$3,750,000’.CommentsClose CommentsPermalink

SEC. 1112. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.CommentsClose CommentsPermalink

Section 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended--CommentsClose CommentsPermalink





(1) in clause (i), by striking ‘$1,500,000’ and inserting ‘$5,000,000’;CommentsClose CommentsPermalink





(2) in clause (ii), by striking ‘$2,000,000’ and inserting ‘$5,000,000’;CommentsClose CommentsPermalink





(3) in clause (iii), by striking ‘$4,000,000’ and inserting ‘$5,500,000’;CommentsClose CommentsPermalink





(4) in clause (iv), by striking ‘$4,000,000’ and inserting ‘$5,500,000’; andCommentsClose CommentsPermalink





(5) in clause (v), by striking ‘$4,000,000’ and inserting ‘$5,500,000’.CommentsClose CommentsPermalink

SEC. 1113. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.CommentsClose CommentsPermalink

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





(1) in paragraph (1)(B)(iii), by striking ‘$35,000’ and inserting ‘$50,000’;CommentsClose CommentsPermalink





(2) in paragraph (3)--CommentsClose CommentsPermalink





(A) in subparagraph (C), by striking ‘$3,500,000’ and inserting ‘$5,000,000’; andCommentsClose CommentsPermalink





(B) in subparagraph (E), by striking ‘$35,000’ each place that term appears and inserting ‘$50,000’; andCommentsClose CommentsPermalink





(3) in paragraph (11)(B), by striking ‘$35,000’ and inserting ‘$50,000’.CommentsClose CommentsPermalink

SEC. 1114. LOAN GUARANTEE ENHANCEMENT EXTENSIONS.CommentsClose CommentsPermalink

(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink

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

Section 355 of the Small Business Investment Act of 1958 (15 U.S.C. 689d) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(e) Investment Limitations-CommentsClose CommentsPermalink





‘(1) DEFINITION- In this subsection, the term ‘covered New Markets Venture Capital company’ means a New Markets Venture Capital company--CommentsClose CommentsPermalink





‘(A) granted final approval by the Administrator under section 354(e) on or after March 1, 2002; andCommentsClose CommentsPermalink





‘(B) that has obtained a financing from the Administrator.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the regulatory capital of the covered New Markets Venture Capital company; andCommentsClose CommentsPermalink





‘(B) the total amount of leverage projected in the participation agreement of the covered New Markets Venture Capital.’.CommentsClose CommentsPermalink

SEC. 1116. ALTERNATIVE SIZE STANDARDS.CommentsClose CommentsPermalink

Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(5) Alternative Size Standard-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) the maximum tangible net worth of the applicant is not more than $15,000,000; andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 1117. SALE OF 7(a) LOANS IN SECONDARY MARKET.CommentsClose CommentsPermalink

Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 1118. ONLINE LENDING PLATFORM.CommentsClose CommentsPermalink

It is the sense of Congress that the Administrator of the Small Business Administration should establish a website that--CommentsClose CommentsPermalink





(1) lists each lender that makes loans guaranteed by the Small Business Administration and provides information about the loan rates of each such lender; andCommentsClose CommentsPermalink





(2) allows prospective borrowers to compare rates on loans guaranteed by the Small Business Administration.CommentsClose CommentsPermalink

SEC. 1119. SBA SECONDARY MARKET GUARANTEE AUTHORITY.CommentsClose CommentsPermalink

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’.CommentsClose CommentsPermalink

PART II--SMALL BUSINESS ACCESS TO CAPITAL

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

(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:CommentsClose CommentsPermalink





‘(C) REFINANCING NOT INVOLVING EXPANSIONS-CommentsClose CommentsPermalink





‘(i) DEFINITIONS- In this subparagraph--CommentsClose CommentsPermalink





‘(I) the term ‘borrower’ means a small business concern that submits an application to a development company for financing under this subparagraph;CommentsClose CommentsPermalink





‘(II) the term ‘eligible fixed asset’ means tangible property relating to which the Administrator may provide financing under this section; andCommentsClose CommentsPermalink





‘(III) the term ‘qualified debt’ means indebtedness--CommentsClose CommentsPermalink

‘(aa) that--CommentsClose CommentsPermalink

‘(AA) was incurred not less than 2 years before the date of the application for assistance under this subparagraph;CommentsClose CommentsPermalink

‘(BB) is a commercial loan;CommentsClose CommentsPermalink

‘(CC) is not subject to a guarantee by a Federal agency;CommentsClose CommentsPermalink

‘(DD) the proceeds of which were used to acquire an eligible fixed asset;CommentsClose CommentsPermalink

‘(EE) was incurred for the benefit of the small business concern; andCommentsClose CommentsPermalink

‘(FF) is collateralized by eligible fixed assets; andCommentsClose CommentsPermalink

‘(bb) for which the borrower has been current on all payments for not less than 1 year before the date of the application.CommentsClose CommentsPermalink

‘(ii) AUTHORITY- A project that does not involve the expansion of a small business concern may include the refinancing of qualified debt if--CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(II) the borrower has been in operation for all of the 2-year period ending on the date of the loan; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(iii) FINANCING FOR BUSINESS EXPENSES-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(II) APPLICATION FOR FINANCING- An application for financing under subclause (I) shall include--CommentsClose CommentsPermalink

‘(aa) a specific description of the expenses for which the additional financing is requested; andCommentsClose CommentsPermalink

‘(bb) an itemization of the amount of each expense.CommentsClose CommentsPermalink

‘(III) CONDITION ON ADDITIONAL FINANCING- A borrower may not use any part of the financing under this clause for non-business purposes.CommentsClose CommentsPermalink





‘(iv) LOANS BASED ON JOBS-CommentsClose CommentsPermalink





‘(I) JOB CREATION AND RETENTION GOALS-CommentsClose CommentsPermalink

‘(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.CommentsClose CommentsPermalink

‘(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.CommentsClose CommentsPermalink

‘(II) NUMBER OF EMPLOYEES- For purposes of subclause (I), the number of employees of a borrower is equal to the sum of--CommentsClose CommentsPermalink

‘(aa) the number of full-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph; andCommentsClose CommentsPermalink

‘(bb) the product obtained by multiplying--CommentsClose CommentsPermalink

‘(AA) the number of part-time employees of the borrower on the date on which the borrower applies for a loan under this subparagraph; byCommentsClose CommentsPermalink

‘(BB) the quotient obtained by dividing the average number of hours each part time employee of the borrower works each week by 40.CommentsClose CommentsPermalink

‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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)’.CommentsClose CommentsPermalink

PART III--OTHER MATTERS

SEC. 1131. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.CommentsClose CommentsPermalink

(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:CommentsClose CommentsPermalink





‘(l) Small Business Intermediary Lending Pilot Program-CommentsClose CommentsPermalink





‘(1) DEFINITIONS- In this subsection--CommentsClose CommentsPermalink





‘(A) the term ‘eligible intermediary’--CommentsClose CommentsPermalink





‘(i) means a private, nonprofit entity that--CommentsClose CommentsPermalink





‘(I) seeks or has been awarded a loan from the Administrator to make loans to small business concerns under this subsection; andCommentsClose CommentsPermalink





‘(II) has not less than 1 year of experience making loans to startup, newly established, or growing small business concerns; andCommentsClose CommentsPermalink





‘(ii) includes--CommentsClose CommentsPermalink





‘(I) a private, nonprofit community development corporation;CommentsClose CommentsPermalink





‘(II) a consortium of private, nonprofit organizations or nonprofit community development corporations; andCommentsClose CommentsPermalink





‘(III) an agency of or nonprofit entity established by a Native American Tribal Government; andCommentsClose CommentsPermalink





‘(B) the term ‘Program’ means the small business intermediary lending pilot program established under paragraph (2).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(3) PURPOSES- The purposes of the Program are--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(4) LOANS TO ELIGIBLE INTERMEDIARIES-CommentsClose CommentsPermalink





‘(A) APPLICATION- Each eligible intermediary desiring a loan under this subsection shall submit an application to the Administrator that describes--CommentsClose CommentsPermalink





‘(i) the type of small business concerns to be assisted;CommentsClose CommentsPermalink





‘(ii) the size and range of loans to be made;CommentsClose CommentsPermalink





‘(iii) the interest rate and terms of loans to be made;CommentsClose CommentsPermalink





‘(iv) the geographic area to be served and the economic, poverty, and unemployment characteristics of the area;CommentsClose CommentsPermalink





‘(v) the status of small business concerns in the area to be served and an analysis of the availability of credit; andCommentsClose CommentsPermalink





‘(vi) the qualifications of the applicant to carry out this subsection.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(C) LOAN DURATION- Loans made by the Administrator under this subsection shall be for a term of 20 years.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(G) MAXIMUM PARTICIPANTS AND AMOUNTS- During each of fiscal years 2011, 2012, and 2013, the Administrator may make loans under the Program--CommentsClose CommentsPermalink





‘(i) to not more than 20 eligible intermediaries; andCommentsClose CommentsPermalink





‘(ii) in a total amount of not more than $20,000,000.CommentsClose CommentsPermalink





‘(5) LOANS TO SMALL BUSINESS CONCERNS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 1132. PUBLIC POLICY GOALS.CommentsClose CommentsPermalink

Section 501(d)(3) of the Small Business Investment Act of 1958 (15 U.S.C. 695(d)(3)) is amended--CommentsClose CommentsPermalink





(1) in subparagraph (J), by striking ‘or’ at the end;CommentsClose CommentsPermalink





(2) in subparagraph (K), by striking the period at the end and inserting ‘, or’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(L) reduction of rates of unemployment in labor surplus areas, as such areas are determined by the Secretary of Labor.’.CommentsClose CommentsPermalink

SEC. 1133. FLOOR PLAN PILOT PROGRAM EXTENSION.CommentsClose CommentsPermalink

(a) In General- Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended--CommentsClose CommentsPermalink





(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); andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(34) FLOOR PLAN FINANCING PROGRAM-CommentsClose CommentsPermalink





‘(A) DEFINITION- In this paragraph, the term ‘eligible retail good’--CommentsClose CommentsPermalink





‘(i) means a good for which a title may be obtained under State law; andCommentsClose CommentsPermalink





‘(ii) includes an automobile, recreational vehicle, boat, and manufactured home.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(D) TERM- An open-end extension of credit guaranteed under this paragraph shall have a term of not more than 5 years.CommentsClose CommentsPermalink





‘(E) GUARANTEE PERCENTAGE- The Administrator may guarantee--CommentsClose CommentsPermalink





‘(i) not less than 60 percent of an open-end extension of credit under this paragraph; andCommentsClose CommentsPermalink





‘(ii) not more than 75 percent of an open-end extension of credit under this paragraph.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Sunset- Effective September 30, 2013, section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended--CommentsClose CommentsPermalink





(1) by striking paragraph (34); andCommentsClose CommentsPermalink





(2) by redesignating paragraph (35), as added by section 1206 of this Act, as paragraph (34).CommentsClose CommentsPermalink

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

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:CommentsClose CommentsPermalink

‘SEC. 114A. GUARANTEES FOR BONDS AND NOTES ISSUED FOR COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSES.CommentsClose CommentsPermalink

‘(a) Definitions- In this section, the following definitions shall apply:CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) ELIGIBLE COMMUNITY OR ECONOMIC DEVELOPMENT PURPOSE- The term ‘eligible community or economic development purpose’--CommentsClose CommentsPermalink





‘(A) means any purpose described in section 108(b); andCommentsClose CommentsPermalink





‘(B) includes the provision of community or economic development in low-income or underserved rural areas.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(4) LOAN- The term ‘loan’ means any credit instrument that is extended under the Program for any eligible community or economic development purpose.CommentsClose CommentsPermalink





‘(5) MASTER SERVICER-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) loan administration, servicing, and loan monitoring;CommentsClose CommentsPermalink





‘(ii) managing regional or national loan intake, processing, or servicing operational systems and infrastructure;CommentsClose CommentsPermalink





‘(iii) managing regional or national originator communication systems and infrastructure;CommentsClose CommentsPermalink





‘(iv) developing and implementing training and other risk management strategies on a regional or national basis; andCommentsClose CommentsPermalink





‘(v) compliance monitoring, investor relations, and reporting.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(7) PROGRAM ADMINISTRATOR- The term ‘Program administrator’ means an entity designated by the issuer to perform administrative duties, as provided in subsection (f)(2).CommentsClose CommentsPermalink





‘(8) QUALIFIED ISSUER-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) APPROVAL CRITERIA FOR QUALIFIED ISSUERS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(ii) TERMS AND QUALIFICATIONS- A qualified issuer shall--CommentsClose CommentsPermalink





‘(I) have appropriate expertise, capacity, and experience, or otherwise be qualified to make loans for eligible community or economic development purposes;CommentsClose CommentsPermalink





‘(II) provide to the Secretary--CommentsClose CommentsPermalink

‘(aa) an acceptable statement of the proposed sources and uses of the funds; andCommentsClose CommentsPermalink

‘(bb) a capital distribution plan that meets the requirements of subsection (c)(1); andCommentsClose CommentsPermalink

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





‘(C) DEPARTMENT OPINION; TIMING-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(9) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury.CommentsClose CommentsPermalink





‘(10) SERVICER- The term ‘servicer’ means an entity designated by the issuer to perform various servicing duties, as provided in subsection (f)(3).CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(1) for eligible community or economic development purposes; orCommentsClose CommentsPermalink





‘(2) to refinance loans or notes issued for such purposes.CommentsClose CommentsPermalink





‘(c) General Program Requirements-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) community or economic development loans;CommentsClose CommentsPermalink





‘(B) a relending account, to the extent authorized under paragraph (2); orCommentsClose CommentsPermalink





‘(C) a risk-share pool established under subsection (d).CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(5) PROHIBITED USES- The Secretary shall, by regulation--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(B) provide that the guarantee of a bond or note under the Program may not be used for salaries or other administrative costs of--CommentsClose CommentsPermalink





‘(i) the qualified issuer; orCommentsClose CommentsPermalink





‘(ii) any recipient of amounts from the guarantee of a bond or note.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(e) Guarantees-CommentsClose CommentsPermalink





‘(1) IN GENERAL- A guarantee issued under the Program shall--CommentsClose CommentsPermalink





‘(A) be for the full amount of a bond or note, including the amount of principal, interest, and call premiums;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(C) represent the full faith and credit of the United States; andCommentsClose CommentsPermalink





‘(D) not exceed 30 years.CommentsClose CommentsPermalink





‘(2) LIMITATIONS-CommentsClose CommentsPermalink





‘(A) ANNUAL NUMBER OF GUARANTEES- The Secretary shall issue not more than 10 guarantees in any calendar year under the Program.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(f) Servicing of Transactions-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) DUTIES OF PROGRAM ADMINISTRATOR- The duties of a Program administrator shall include--CommentsClose CommentsPermalink





‘(A) approving and qualifying eligible community development financial institution applications for participation in the Program;CommentsClose CommentsPermalink





‘(B) compliance monitoring;CommentsClose CommentsPermalink





‘(C) bond packaging in connection with the Program; andCommentsClose CommentsPermalink





‘(D) all other duties and related services that are customarily expected of a Program administrator.CommentsClose CommentsPermalink





‘(3) DUTIES OF SERVICER- The duties of a servicer shall include--CommentsClose CommentsPermalink





‘(A) billing and collecting loan payments;CommentsClose CommentsPermalink





‘(B) initiating collection activities on past-due loans;CommentsClose CommentsPermalink





‘(C) transferring loan payments to the master servicing accounts;CommentsClose CommentsPermalink





‘(D) loan administration and servicing;CommentsClose CommentsPermalink





‘(E) systematic and timely reporting of loan performance through remittance and servicing reports;CommentsClose CommentsPermalink





‘(F) proper measurement of annual outstanding loan requirements; andCommentsClose CommentsPermalink





‘(G) all other duties and related services that are customarily expected of servicers.CommentsClose CommentsPermalink





‘(4) DUTIES OF MASTER SERVICER- The duties of a master servicer shall include--CommentsClose CommentsPermalink





‘(A) tracking the movement of funds between the accounts of the master servicer and any other servicer;CommentsClose CommentsPermalink





‘(B) ensuring orderly receipt of the monthly remittance and servicing reports of the servicer;CommentsClose CommentsPermalink





‘(C) monitoring the collection comments and foreclosure actions;CommentsClose CommentsPermalink





‘(D) aggregating the reporting and distribution of funds to trustees and investors;CommentsClose CommentsPermalink





‘(E) removing and replacing a servicer, as necessary;CommentsClose CommentsPermalink





‘(F) loan administration and servicing;CommentsClose CommentsPermalink





‘(G) systematic and timely reporting of loan performance compiled from all bond servicers’ reports;CommentsClose CommentsPermalink





‘(H) proper distribution of funds to investors; andCommentsClose CommentsPermalink





‘(I) all other duties and related services that are customarily expected of a master servicer.CommentsClose CommentsPermalink





‘(g) Fees-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) PAYMENT- A qualified issuer shall pay the fee required under this subsection on an annual basis.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(h) Authorization of Appropriations-CommentsClose CommentsPermalink





‘(1) IN GENERAL- There are authorized to be appropriated to the Secretary, such sums as are necessary to carry out this section.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(j) Administration-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) IMPLEMENTATION- Not later than 2 years after the date of enactment of this section, the Secretary shall implement this section.CommentsClose CommentsPermalink





‘(k) Termination- This section is repealed, and the authority provided under this section shall terminate, on September 30, 2014.’.CommentsClose CommentsPermalink

SEC. 1135. TEMPORARY EXPRESS LOAN ENHANCEMENT.CommentsClose CommentsPermalink

(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink

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

(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.CommentsClose CommentsPermalink





(b) TARP Funds and Tax Increases-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) DEFINITION- In this subsection, the term ‘covered amounts’ means--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

Subtitle B--Small Business Trade and ExportingCommentsClose CommentsPermalink

SEC. 1201. SHORT TITLE.CommentsClose CommentsPermalink

This subtitle may be cited as the ‘Small Business Export Enhancement and International Trade Act of 2010’.CommentsClose CommentsPermalink

SEC. 1202. DEFINITIONS.CommentsClose CommentsPermalink

(a) Definitions- In this subtitle--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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)); andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendments-CommentsClose CommentsPermalink





(1) DEFINITIONS- Section 3 of the Small Business Act (15 U.S.C. 632) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(t) Small Business Development Center- In this Act, the term ‘small business development center’ means a small business development center described in section 21.CommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink

SEC. 1203. OFFICE OF INTERNATIONAL TRADE.CommentsClose CommentsPermalink

(a) Establishment- Section 22 of the Small Business Act (15 U.S.C. 649) is amended--CommentsClose CommentsPermalink





(1) by striking ‘Sec. 22. (a) There’ and inserting the following:CommentsClose CommentsPermalink





‘SEC. 22. OFFICE OF INTERNATIONAL TRADE.CommentsClose CommentsPermalink





‘(a) Establishment-CommentsClose CommentsPermalink





‘(1) OFFICE- There’; andCommentsClose CommentsPermalink





(2) in subsection (a)--CommentsClose CommentsPermalink





(A) in paragraph (1), as so designated, by striking the period and inserting ‘for the primary purposes of increasing--CommentsClose CommentsPermalink





‘(A) the number of small business concerns that export; andCommentsClose CommentsPermalink





‘(B) the volume of exports by small business concerns.’; andCommentsClose CommentsPermalink





(B) by adding at the end the following:CommentsClose CommentsPermalink





‘(2) ASSOCIATE ADMINISTRATOR- The head of the Office shall be the Associate Administrator for International Trade, who shall be responsible to the Administrator.’.CommentsClose CommentsPermalink





(b) Authority for Additional Associate Administrator- Section 4(b)(1) of the Small Business Act (15 U.S.C. 633(b)(1)) is amended--CommentsClose CommentsPermalink





(1) in the fifth sentence, by striking ‘five Associate Administrators’ and inserting ‘Associate Administrators’; andCommentsClose CommentsPermalink





(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(h) Discharge of International Trade Responsibilities of Administration- The Administrator shall ensure that--CommentsClose CommentsPermalink





‘(1) the responsibilities of the Administration regarding international trade are carried out by the Associate Administrator;CommentsClose CommentsPermalink





‘(2) the Associate Administrator has sufficient resources to carry out such responsibilities; andCommentsClose CommentsPermalink





‘(3) the Associate Administrator has direct supervision and control over--CommentsClose CommentsPermalink





‘(A) the staff of the Office; andCommentsClose CommentsPermalink





‘(B) any employee of the Administration whose principal duty station is an Export Assistance Center, or any successor entity.’.CommentsClose CommentsPermalink





(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)--CommentsClose CommentsPermalink





(1) by inserting ‘the Administrator of’ before ‘the Small Business Administration’; andCommentsClose CommentsPermalink





(2) by inserting ‘through the Associate Administrator for International Trade, and’ before ‘in cooperation with’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(a) Amendments to Section 22- Section 22 of the Small Business Act (15 U.S.C. 649) is amended--CommentsClose CommentsPermalink





(1) by striking subsection (b) and inserting the following:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) trade promotion;CommentsClose CommentsPermalink





‘(B) trade finance;CommentsClose CommentsPermalink





‘(C) trade adjustment assistance;CommentsClose CommentsPermalink





‘(D) trade remedy assistance; andCommentsClose CommentsPermalink





‘(E) trade data collection;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) accompany small business concerns on foreign trade missions; andCommentsClose CommentsPermalink





‘(B) translate documents, interpret conversations, and facilitate multilingual transactions, including by providing referral lists for translation services, if required.’;CommentsClose CommentsPermalink





(2) in subsection (c)--CommentsClose CommentsPermalink





(A) by striking ‘(c) The Office’ and inserting the following:CommentsClose CommentsPermalink





‘(c) Promotion of Sales Opportunities- The Associate Administrator’;CommentsClose CommentsPermalink





(B) by redesignating paragraphs (1) through (8) as paragraphs (2) through (9), respectively;CommentsClose CommentsPermalink





(C) by inserting before paragraph (2), as so redesignated, the following:CommentsClose CommentsPermalink





‘(1) establish annual goals for the Office relating to--CommentsClose CommentsPermalink





‘(A) enhancing the exporting capability of small business concerns and small manufacturers;CommentsClose CommentsPermalink





‘(B) facilitating technology transfers;CommentsClose CommentsPermalink





‘(C) enhancing programs and services to assist small business concerns and small manufacturers to compete effectively and efficiently in foreign markets;CommentsClose CommentsPermalink





‘(D) increasing the ability of small business concerns to access capital; andCommentsClose CommentsPermalink





‘(E) disseminating information concerning Federal, State, and private programs and initiatives;’;CommentsClose CommentsPermalink





(D) in paragraph (2), as so redesignated, by striking ‘mechanism for’ and all that follows through ‘(D) assisting’ and inserting the following: ‘mechanism for--CommentsClose CommentsPermalink





‘(A) identifying subsectors of the small business community with strong export potential;CommentsClose CommentsPermalink





‘(B) identifying areas of demand in foreign markets;CommentsClose CommentsPermalink





‘(C) prescreening foreign buyers for commercial and credit purposes; andCommentsClose CommentsPermalink





‘(D) assisting’;CommentsClose CommentsPermalink





(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’;CommentsClose CommentsPermalink





(F) in paragraph (4), as so redesignated--CommentsClose CommentsPermalink





(i) by striking ‘local’ and inserting ‘district’;CommentsClose CommentsPermalink





(ii) by striking ‘existing’;CommentsClose CommentsPermalink





(iii) by striking ‘Small Business Development Center network’ and inserting ‘small business development center network’; andCommentsClose CommentsPermalink





(iv) by striking ‘Small Business Development Center Program’ and inserting ‘small business development center program’;CommentsClose CommentsPermalink





(G) in paragraph (5), as so redesignated--CommentsClose CommentsPermalink





(i) in subparagraph (A), by striking ‘Gross State Produce’ and inserting ‘Gross State Product’;CommentsClose CommentsPermalink





(ii) in subparagraph (B), by striking ‘SIC’ each place it appears and inserting ‘North American Industry Classification System’; andCommentsClose CommentsPermalink





(iii) in subparagraph (C), by striking ‘small businesses’ and inserting ‘small business concerns’;CommentsClose CommentsPermalink





(H) in paragraph (6), as so redesignated, by striking the period at the end and inserting a semicolon;CommentsClose CommentsPermalink





(I) in paragraph (7), as so redesignated--CommentsClose CommentsPermalink





(i) in the matter preceding subparagraph (A)--CommentsClose CommentsPermalink





(I) by inserting ‘concerns’ after ‘small business’; andCommentsClose CommentsPermalink





(II) by striking ‘current’ and inserting ‘up to date’;CommentsClose CommentsPermalink





(ii) in subparagraph (A), by striking ‘Administration’s regional offices’ and inserting ‘regional and district offices of the Administration’;CommentsClose CommentsPermalink





(iii) in subparagraph (B) by striking ‘current’;CommentsClose CommentsPermalink





(iv) in subparagraph (C), by striking ‘current’; andCommentsClose CommentsPermalink





(v) by striking ‘small businesses’ each place that term appears and inserting ‘small business concerns’;CommentsClose CommentsPermalink





(J) in paragraph (8), as so redesignated, by striking and at the end;CommentsClose CommentsPermalink





(K) in paragraph (9), as so redesignated--CommentsClose CommentsPermalink





(i) in the matter preceding subparagraph (A)--CommentsClose CommentsPermalink





(I) by striking ‘full-time export development specialists to each Administration regional office and assigning’; andCommentsClose CommentsPermalink





(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’;CommentsClose CommentsPermalink





(ii) in subparagraph (B)--CommentsClose CommentsPermalink





(I) by striking ‘current’; andCommentsClose CommentsPermalink





(II) by striking ‘with’ and inserting ‘in’;CommentsClose CommentsPermalink





(iii) in subparagraph (D)--CommentsClose CommentsPermalink





(I) by striking ‘Administration personnel involved in granting’ and inserting ‘personnel of the Administration involved in making’; andCommentsClose CommentsPermalink





(II) by striking ‘and’ at the end;CommentsClose CommentsPermalink





(iv) in subparagraph (E)--CommentsClose CommentsPermalink





(I) by striking ‘small businesses’ needs’ and inserting ‘the needs of small business concerns’; andCommentsClose CommentsPermalink





(II) by striking the period at the end and inserting a semicolon;CommentsClose CommentsPermalink





(v) by adding at the end the following:CommentsClose CommentsPermalink





‘(F) participate, jointly with employees of the Office, in an annual training program that focuses on current small business needs for exporting; andCommentsClose CommentsPermalink





‘(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;’; andCommentsClose CommentsPermalink





(vi) by striking ‘small businesses’ each place that term appears and inserting ‘small business concerns’; andCommentsClose CommentsPermalink





(L) by adding at the end the following:CommentsClose CommentsPermalink





‘(10) make available on the website of the Administration the name and contact information of each individual described in paragraph (9);CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.’;CommentsClose CommentsPermalink





(3) in subsection (d)--CommentsClose CommentsPermalink





(A) by redesignating paragraphs (1) through (5) as clauses (i) through (v), respectively, and adjusting the margins accordingly;CommentsClose CommentsPermalink





(B) by striking ‘(d) The Office’ and inserting the following:CommentsClose CommentsPermalink





‘(d) Export Financing Programs-CommentsClose CommentsPermalink





‘(1) IN GENERAL- The Associate Administrator’; andCommentsClose CommentsPermalink





(C) by striking ‘To accomplish this goal, the Office shall work’ and inserting the following:CommentsClose CommentsPermalink





‘(2) TRADE FINANCE SPECIALIST- To accomplish the goal established under paragraph (1), the Associate Administrator shall--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(B) work’;CommentsClose CommentsPermalink





(4) in subsection (e), by striking ‘(e) The Office’ and inserting the following:CommentsClose CommentsPermalink





‘(e) Trade Remedies- The Associate Administrator’;CommentsClose CommentsPermalink





(5) by amending subsection (f) to read as follows:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(1) a description of the progress of the Office in implementing the requirements of this section;CommentsClose CommentsPermalink





‘(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);CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(5) a description of the participation by the Office in trade negotiations.’;CommentsClose CommentsPermalink





(6) in subsection (g), by striking ‘(g) The Office’ and inserting the following:CommentsClose CommentsPermalink





‘(g) Studies- The Associate Administrator’; andCommentsClose CommentsPermalink





(7) by adding after subsection (h), as added by section 1203 of this subtitle, the following:CommentsClose CommentsPermalink





‘(i) Export and Trade Counseling-CommentsClose CommentsPermalink





‘(1) DEFINITION- In this subsection--CommentsClose CommentsPermalink





‘(A) the term ‘lead small business development center’ means a small business development center that has received a grant from the Administration; andCommentsClose CommentsPermalink





‘(B) the term ‘lead women’s business center’ means a women’s business center that has received a grant from the Administration.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) 5; orCommentsClose CommentsPermalink





‘(B) 10 percent of the total number of employees of the lead small business development center.CommentsClose CommentsPermalink





‘(4) REIMBURSEMENT FOR CERTIFICATION-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(B) LIMITATION- The total amount reimbursed by the Administrator under subparagraph (A) may not exceed $350,000 in any fiscal year.CommentsClose CommentsPermalink





‘(j) Performance Measures-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the number of small business concerns that--CommentsClose CommentsPermalink





‘(i) receive assistance from the Administration;CommentsClose CommentsPermalink





‘(ii) had not exported goods or services before receiving the assistance described in clause (i); andCommentsClose CommentsPermalink





‘(iii) export goods or services;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(C) export revenues by small business concerns assisted by programs of the Administration;CommentsClose CommentsPermalink





‘(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;CommentsClose CommentsPermalink





‘(E) the number of small business concerns referred to the Administration by an Export Assistance Center or a small business development center; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) section 7(a)(16);CommentsClose CommentsPermalink





‘(B) the Export Working Capital Program established under section 7(a)(14);CommentsClose CommentsPermalink





‘(C) the Preferred Lenders Program, as defined in section 7(a)(2)(C)(ii); andCommentsClose CommentsPermalink





‘(D) the export express program established under section 7(a)(34).CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 1205. EXPORT ASSISTANCE CENTERS.CommentsClose CommentsPermalink

(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:CommentsClose CommentsPermalink





‘(k) Export Assistance Centers-CommentsClose CommentsPermalink





‘(1) EXPORT FINANCE SPECIALISTS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) PLACEMENT OF EXPORT FINANCE SPECIALISTS-CommentsClose CommentsPermalink





‘(A) PRIORITY- The Administrator shall give priority, to the maximum extent practicable, to placing employees of the Administration at any Export Assistance Center that--CommentsClose CommentsPermalink





‘(i) had an Administration employee assigned to the Export Assistance Center before January 2003; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(l) Definitions- In this section--CommentsClose CommentsPermalink





‘(1) the term ‘Associate Administrator’ means the Associate Administrator for International Trade described in subsection (a)(2);CommentsClose CommentsPermalink





‘(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));CommentsClose CommentsPermalink





‘(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); andCommentsClose CommentsPermalink





‘(4) the term ‘Office’ means the Office of International Trade established under subsection (a)(1).’.CommentsClose CommentsPermalink





(b) Study and Report on Filling Gaps in High-and-Low-Export Volume Areas-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) conduct a study of--CommentsClose CommentsPermalink





(i) the volume of exports for each State;CommentsClose CommentsPermalink





(ii) the availability of export finance specialists in each State;CommentsClose CommentsPermalink





(iii) the number of exporters in each State that are small business concerns;CommentsClose CommentsPermalink





(iv) the percentage of exporters in each State that are small business concerns;CommentsClose CommentsPermalink





(v) the change, if any, in the number of exporters that are small business concerns in each State--CommentsClose CommentsPermalink





(I) for the first study conducted under this subparagraph, during the 10-year period ending on the date of enactment of this Act; andCommentsClose CommentsPermalink





(II) for each subsequent study, during the 10-year period ending on the date the study is commenced;CommentsClose CommentsPermalink





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





(vii) the percentage of the total volume of exports in each State that is attributable to small business concerns; andCommentsClose CommentsPermalink





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





(I) for the first study conducted under this subparagraph, during the 10-year period ending on the date of enactment of this Act; andCommentsClose CommentsPermalink





(II) for each subsequent study, during the 10-year period ending on the date the study is commenced; andCommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(i) the results of the study under subparagraph (A);CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(iv) such additional information as the Administrator determines is appropriate.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 1206. INTERNATIONAL TRADE FINANCE PROGRAMS.CommentsClose CommentsPermalink

(a) Loan Limits-CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(2) PARTICIPATION- Section 7(a)(2) of the Small Business Act (15 U.S.C. 636(a)(2)) is amended--CommentsClose CommentsPermalink





(A) in subparagraph (A), in the matter preceding clause (i), by striking ‘subparagraph (B)’ and inserting ‘subparagraphs (B), (D), and (E)’;CommentsClose CommentsPermalink





(B) in subparagraph (D), by striking ‘Notwithstanding subparagraph (A), in’ and inserting ‘In’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Working Capital- Section 7(a)(16)(A) of the Small Business Act (15 U.S.C. 636(a)(16)(A)) is amended--CommentsClose CommentsPermalink





(1) in the matter preceding clause (i), by striking ‘in--’ and inserting ‘--’;CommentsClose CommentsPermalink





(2) in clause (i)--CommentsClose CommentsPermalink





(A) by inserting ‘in’ after ‘(i)’; andCommentsClose CommentsPermalink





(B) by striking ‘or’ at the end;CommentsClose CommentsPermalink





(3) in clause (ii)--CommentsClose CommentsPermalink





(A) by inserting ‘in’ after ‘(ii)’; andCommentsClose CommentsPermalink





(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’; andCommentsClose CommentsPermalink





(4) by adding at the end the following:CommentsClose CommentsPermalink





‘(iii) by providing working capital.’.CommentsClose CommentsPermalink





(c) Collateral- Section 7(a)(16)(B) of the Small Business Act (15 U.S.C. 636(a)(16)(B)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘Each loan’ and inserting the following:CommentsClose CommentsPermalink





‘(i) IN GENERAL- Except as provided in clause (ii), each loan’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(d) Export Working Capital Program- Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (2)(D), by striking ‘not exceed’ and inserting ‘be’; andCommentsClose CommentsPermalink





(2) in paragraph (14)--CommentsClose CommentsPermalink





(A) by striking ‘(A) The Administration’ and inserting the following: ‘EXPORT WORKING CAPITAL PROGRAM-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Administrator’;CommentsClose CommentsPermalink





(B) by striking ‘(B) When considering’ and inserting the following:CommentsClose CommentsPermalink





‘(C) CONSIDERATIONS- When considering’;CommentsClose CommentsPermalink





(C) by striking ‘(C) The Administration’ and inserting the following:CommentsClose CommentsPermalink





‘(D) MARKETING- The Administrator’; andCommentsClose CommentsPermalink





(D) by inserting after subparagraph (A) the following:CommentsClose CommentsPermalink





‘(B) TERMS-CommentsClose CommentsPermalink





‘(i) LOAN AMOUNT- The Administrator may not guarantee a loan under this paragraph of more than $5,000,000.CommentsClose CommentsPermalink





‘(ii) FEES-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(II) UNTAPPED CREDIT- The Administrator may not assess a fee on capital that is not accessed by the small business concern.’.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) by redesignating clause (ii) as clause (iii); andCommentsClose CommentsPermalink





(2) by inserting after clause (i) the following:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(35) EXPORT EXPRESS PROGRAM-CommentsClose CommentsPermalink





‘(A) DEFINITIONS- In this paragraph--CommentsClose CommentsPermalink





‘(i) the term ‘export development activity’ includes--CommentsClose CommentsPermalink





‘(I) obtaining a standby letter of credit when required as a bid bond, performance bond, or advance payment guarantee;CommentsClose CommentsPermalink





‘(II) participation in a trade show that takes place outside the United States;CommentsClose CommentsPermalink





‘(III) translation of product brochures or catalogues for use in markets outside the United States;CommentsClose CommentsPermalink





‘(IV) obtaining a general line of credit for export purposes;CommentsClose CommentsPermalink





‘(V) performing a service contract from buyers located outside the United States;CommentsClose CommentsPermalink





‘(VI) obtaining transaction-specific financing associated with completing export orders;CommentsClose CommentsPermalink





‘(VII) purchasing real estate or equipment to be used in the production of goods or services for export;CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) AUTHORITY- The Administrator may guarantee the timely payment of an express loan to a small business concern made for an export development activity.CommentsClose CommentsPermalink





‘(C) LEVEL OF PARTICIPATION-CommentsClose CommentsPermalink





‘(i) MAXIMUM AMOUNT- The maximum amount of an express loan guaranteed under this paragraph shall be $500,000.CommentsClose CommentsPermalink





‘(ii) PERCENTAGE- For an express loan guaranteed under this paragraph, the Administrator shall guarantee--CommentsClose CommentsPermalink





‘(I) 90 percent of a loan that is not more than $350,000; andCommentsClose CommentsPermalink





‘(II) 75 percent of a loan that is more than $350,000 and not more than $500,000.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(F) LIST OF EXPORT FINANCE LENDERS-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(I) this paragraph;CommentsClose CommentsPermalink





‘(II) paragraph (14); orCommentsClose CommentsPermalink





‘(III) paragraph (34).CommentsClose CommentsPermalink





‘(ii) AVAILABILITY OF LIST- The Administrator shall--CommentsClose CommentsPermalink





‘(I) post the list published under clause (i) on the website of the Administration; andCommentsClose CommentsPermalink





‘(II) make the list published under clause (i) available, upon request, at each district office of the Administration.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(a) Definitions- In this section--CommentsClose CommentsPermalink





(1) the term ‘eligible small business concern’ means a small business concern that--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(B) is operating profitably, based on operations in the United States;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(D) has in effect a strategic plan for exporting;CommentsClose CommentsPermalink





(2) the term ‘program’ means the State Trade and Export Promotion Grant Program established under subsection (b);CommentsClose CommentsPermalink





(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);CommentsClose CommentsPermalink





(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)); andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Establishment of Program- The Associate Administrator shall establish a 3-year trade and export promotion pilot program to be known as the State Trade and Export Promotion Grant Program, to make grants to States to carry out export programs that assist eligible small business concerns in--CommentsClose CommentsPermalink





(1) participation in a foreign trade mission;CommentsClose CommentsPermalink





(2) a foreign market sales trip;CommentsClose CommentsPermalink





(3) a subscription to services provided by the Department of Commerce;CommentsClose CommentsPermalink





(4) the payment of website translation fees;CommentsClose CommentsPermalink





(5) the design of international marketing media;CommentsClose CommentsPermalink





(6) a trade show exhibition;CommentsClose CommentsPermalink





(7) participation in training workshops; orCommentsClose CommentsPermalink





(8) any other export initiative determined appropriate by the Associate Administrator.CommentsClose CommentsPermalink





(c) Grants-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) focuses on eligible small business concerns as part of an export promotion program;CommentsClose CommentsPermalink





(B) demonstrates success in promoting exports by--CommentsClose CommentsPermalink





(i) socially and economically disadvantaged small business concerns;CommentsClose CommentsPermalink





(ii) small business concerns owned or controlled by women; andCommentsClose CommentsPermalink





(iii) rural small business concerns;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(D) promotes new-to-market export opportunities to the People’s Republic of China for eligible small business concerns in the United States.CommentsClose CommentsPermalink





(3) LIMITATIONS-CommentsClose CommentsPermalink





(A) SINGLE APPLICATION- A State may not submit more than 1 application for a grant under the program in any 1 fiscal year.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(d) Competitive Basis- The Associate Administrator shall award grants under the program on a competitive basis.CommentsClose CommentsPermalink





(e) Federal Share- The Federal share of the cost of an export program carried out using a grant under the program shall be--CommentsClose CommentsPermalink





(1) for a State that has a high export volume, as determined by the Associate Administrator, not more than 65 percent; andCommentsClose CommentsPermalink





(2) for a State that does not have a high export volume, as determined by the Associate Administrator, not more than 75 percent.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(g) Reports-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) a description of the structure of and procedures for the program;CommentsClose CommentsPermalink





(B) a management plan for the program; andCommentsClose CommentsPermalink





(C) a description of the merit-based review process to be used in the program.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) the number and amount of grants made under the program during the preceding year;CommentsClose CommentsPermalink





(B) a list of the States receiving a grant under the program during the preceding year, including the activities being performed with grant; andCommentsClose CommentsPermalink





(C) the effect of each grant on exports by eligible small business concerns in the State receiving the grant.CommentsClose CommentsPermalink





(h) Reviews by Inspector General-CommentsClose CommentsPermalink





(1) IN GENERAL- The Inspector General of the Administration shall conduct a review of--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(B) the overall management and effectiveness of the program.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(j) Termination- The authority to carry out the program shall terminate 3 years after the date on which the Associate Administrator establishes the program.CommentsClose CommentsPermalink

SEC. 1208. RURAL EXPORT PROMOTION.CommentsClose CommentsPermalink

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--CommentsClose CommentsPermalink





(1) a description of each program of the Administration that promotes exports by rural small business concerns, including--CommentsClose CommentsPermalink





(A) the number of rural small business concerns served by the program;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(C) the volume of exports by rural small business concerns that participate in the program; andCommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(2) a description of the coordination between programs of the Administration and other Federal programs that promote exports by rural small business concerns;CommentsClose CommentsPermalink





(3) recommendations, if any, for improving the coordination described in paragraph (2);CommentsClose CommentsPermalink





(4) a description of any plan by the Administration to market the international trade financing programs of the Administration through lenders that--CommentsClose CommentsPermalink





(A) serve rural small business concerns; andCommentsClose CommentsPermalink





(B) are associated with financing programs of the Department of Agriculture;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(6) any additional information the Administrator determines is necessary.CommentsClose CommentsPermalink

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

Section 21(a) of the Small Business Act (15 U.S.C. 648(a)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘(2) The Small Business Development Centers’ and inserting the following:CommentsClose CommentsPermalink





‘(2) COOPERATION TO PROVIDE INTERNATIONAL TRADE SERVICES-CommentsClose CommentsPermalink





‘(A) INFORMATION AND SERVICES- The small business development centers’; andCommentsClose CommentsPermalink





(2) in paragraph (2)--CommentsClose CommentsPermalink





(A) in subparagraph (A), as so designated, by inserting ‘(including State trade agencies),’ after ‘local agencies’; andCommentsClose CommentsPermalink





(B) by adding at the end the following:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) consult with State trade agencies and Export Assistance Centers to provide appropriate services to the small business concern; andCommentsClose CommentsPermalink





‘(ii) as necessary, refer the small business concern to a State trade agency or an Export Assistance Center for further counseling or assistance.CommentsClose CommentsPermalink





‘(C) DEFINITION- In this paragraph, the term ‘Export Assistance Center’ has the same meaning as in section 22.’.CommentsClose CommentsPermalink

Subtitle C--Small Business ContractingCommentsClose CommentsPermalink

PART I--CONTRACT BUNDLING

SEC. 1311. SMALL BUSINESS ACT.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(v) Multiple Award Contract- In this Act, the term ‘multiple award contract’ means--CommentsClose CommentsPermalink





‘(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); andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 1312. LEADERSHIP AND OVERSIGHT.CommentsClose CommentsPermalink

(a) In General- Section 15 of the Small Business Act (15 U.S.C. 644) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(q) Bundling Accountability Measures-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) POLICIES ON REDUCTION OF CONTRACT BUNDLING-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) establish a Government-wide policy regarding contract bundling, including regarding the solicitation of teaming and joint ventures under paragraph (1); andCommentsClose CommentsPermalink





‘(ii) require that the policy established under clause (i) be published on the website of each Federal agency.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) identify each area for which the Administration has assigned a procurement center representative or a commercial market representative;CommentsClose CommentsPermalink





‘(B) explain why the Administration selected the areas identified under subparagraph (A); andCommentsClose CommentsPermalink





‘(C) describe the activities performed by procurement center representatives and commercial market representatives.’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(c) Report-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) CONTENTS- The report submitted under paragraph (1) shall--CommentsClose CommentsPermalink





(A) address ways to improve the effectiveness of the procurement center representative program in helping small business concerns obtain Federal contracts;CommentsClose CommentsPermalink





(B) evaluate the effectiveness of procurement center representatives and commercial marketing representatives; andCommentsClose CommentsPermalink





(C) include recommendations, if any, on how to improve the procurement center representative program.CommentsClose CommentsPermalink





(d) Electronic Procurement Center Representative-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 1313. CONSOLIDATION OF CONTRACT REQUIREMENTS.CommentsClose CommentsPermalink

(a) In General- The Small Business Act (15 U.S.C. 631 et seq.) is amended--CommentsClose CommentsPermalink





(1) by redesignating section 44 as section 45; andCommentsClose CommentsPermalink





(2) by inserting after section 43 the following:CommentsClose CommentsPermalink





‘SEC. 44. CONSOLIDATION OF CONTRACT REQUIREMENTS.CommentsClose CommentsPermalink





‘(a) Definitions- In this section--CommentsClose CommentsPermalink





‘(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));CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Limitation on Use of Acquisition Strategies Involving Consolidation-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) conducts market research;CommentsClose CommentsPermalink





‘(B) identifies any alternative contracting approaches that would involve a lesser degree of consolidation of contract requirements;CommentsClose CommentsPermalink





‘(C) makes a written determination that the consolidation of contract requirements is necessary and justified;CommentsClose CommentsPermalink





‘(D) identifies any negative impact by the acquisition strategy on contracting with small business concerns; andCommentsClose CommentsPermalink





‘(E) certifies to the head of the Federal agency that steps will be taken to include small business concerns in the acquisition strategy.CommentsClose CommentsPermalink





‘(2) DETERMINATION THAT CONSOLIDATION IS NECESSARY AND JUSTIFIED-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) quality;CommentsClose CommentsPermalink





‘(B) acquisition cycle;CommentsClose CommentsPermalink





‘(C) terms and conditions; andCommentsClose CommentsPermalink





‘(D) any other benefit.CommentsClose CommentsPermalink





‘(4) DEPARTMENT OF DEFENSE-CommentsClose CommentsPermalink





‘(A) IN GENERAL- The Department of Defense and each military department shall comply with this section until after the date described in subparagraph (C).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink

SEC. 1314. SMALL BUSINESS TEAMS PILOT PROGRAM.CommentsClose CommentsPermalink

(a) Definitions- In this section--CommentsClose CommentsPermalink





(1) the term ‘Pilot Program’ means the Small Business Teaming Pilot Program established under subsection (b); andCommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) customer relations and outreach;CommentsClose CommentsPermalink





(B) team relations and outreach; andCommentsClose CommentsPermalink





(C) performance measurement and quality assurance.CommentsClose CommentsPermalink





(b) Establishment- The Administrator shall establish a Small Business Teaming Pilot Program for teaming and joint ventures involving small business concerns.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(f) Termination- The authority to carry out the Pilot Program shall terminate 5 years after the date of enactment of this Act.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

PART II--SUBCONTRACTING INTEGRITY

SEC. 1321. SUBCONTRACTING MISREPRESENTATIONS.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

SEC. 1322. SMALL BUSINESS SUBCONTRACTING IMPROVEMENTS.CommentsClose CommentsPermalink

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





(1) in subparagraph (E), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in subparagraph (F), by striking the period at the end and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end, the following:CommentsClose CommentsPermalink





‘(G) a representation that the offeror or bidder will--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink

PART III--ACQUISITION PROCESS

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

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:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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);CommentsClose CommentsPermalink





‘(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); andCommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink

SEC. 1332. MICRO-PURCHASE GUIDELINES.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

SEC. 1333. AGENCY ACCOUNTABILITY.CommentsClose CommentsPermalink

Section 15(g)(2) of the Small Business Act (15 U.S.C. 644(g)(2)) is amended--CommentsClose CommentsPermalink





(1) by inserting ‘(A)’ after ‘(2)’;CommentsClose CommentsPermalink





(2) by striking ‘Goals established’ and inserting the following:CommentsClose CommentsPermalink





‘(B) Goals established’;CommentsClose CommentsPermalink





(3) by striking ‘Whenever’ and inserting the following:CommentsClose CommentsPermalink





‘(C) Whenever’;CommentsClose CommentsPermalink





(4) by striking ‘For the purpose of’ and inserting the following:CommentsClose CommentsPermalink





‘(D) For the purpose of’;CommentsClose CommentsPermalink





(5) by striking ‘The head of each Federal agency, in attempting to attain such participation’ and inserting the following:CommentsClose CommentsPermalink





‘(E) The head of each Federal agency, in attempting to attain the participation described in subparagraph (D)’.CommentsClose CommentsPermalink





(6) in subparagraph (E), as so designated--CommentsClose CommentsPermalink





(A) by striking ‘(A) contracts’ and inserting ‘(i) contracts’; andCommentsClose CommentsPermalink





(B) by striking ‘(B) contracts’ and inserting ‘(ii) contracts’; andCommentsClose CommentsPermalink





(7) by adding at the end the following:CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 1334. PAYMENT OF SUBCONTRACTORS.CommentsClose CommentsPermalink

Section 8(d) of the Small Business Act (15 U.S.C. 637(d)) is amended by adding at the end the following:CommentsClose CommentsPermalink





‘(12) Payment of Subcontractors-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(B) NOTICE-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) describe the circumstances under which a contractor may be determined to have a history of unjustified, untimely payments to subcontractors;CommentsClose CommentsPermalink





‘(ii) establish a process for contracting officers to record the identity of a contractor described in clause (i); andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

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

(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).CommentsClose CommentsPermalink





(b) Effective Date and Applicability- The amendment made by this section--CommentsClose CommentsPermalink





(1) shall take effect on the date of enactment of this Act; andCommentsClose CommentsPermalink





(2) apply to the first full fiscal year after the date of enactment of this Act.CommentsClose CommentsPermalink

PART IV--SMALL BUSINESS SIZE AND STATUS INTEGRITY

SEC. 1341. POLICY AND PRESUMPTIONS.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(w) Presumption-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) DEEMED CERTIFICATIONS- The following actions shall be deemed affirmative, willful, and intentional certifications of small business size and status:CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(3) CERTIFICATION BY SIGNATURE OF RESPONSIBLE OFFICIAL-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 1342. ANNUAL CERTIFICATION.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(x) Annual Certification-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(B) the requirements of this subsection are implemented in a manner presenting the least possible regulatory burden on small business concerns.’.CommentsClose CommentsPermalink

SEC. 1343. TRAINING FOR CONTRACTING AND ENFORCEMENT PERSONNEL.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

SEC. 1344. UPDATED SIZE STANDARDS.CommentsClose CommentsPermalink

(a) Rolling Review-CommentsClose CommentsPermalink





(1) IN GENERAL- The Administrator shall--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(C) make publicly available--CommentsClose CommentsPermalink





(i) information regarding the factors evaluated as part of each review conducted under subparagraph (A); andCommentsClose CommentsPermalink





(ii) information regarding the criteria used for any revised size standards promulgated under subparagraph (B); andCommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(i) used the factors and criteria described in subparagraph (C); andCommentsClose CommentsPermalink





(ii) adjusted or did not adjust each size standard that was reviewed under the review.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink

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

(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.CommentsClose CommentsPermalink





(b) Matters To Be Studied- The study conducted under this section shall include--CommentsClose CommentsPermalink





(1) a review of a broad cross-section of industries; andCommentsClose CommentsPermalink





(2) an evaluation of--CommentsClose CommentsPermalink





(A) how each Federal agency carrying out a program described in subsection (a) administers and monitors the program;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(C) the degree to which protege businesses become able to compete for Federal contracts without the assistance of a mentor.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 1346. CONTRACTING GOALS REPORTS.CommentsClose CommentsPermalink

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:’.CommentsClose CommentsPermalink

SEC. 1347. SMALL BUSINESS CONTRACTING PARITY.CommentsClose CommentsPermalink

(a) Definitions- In this section--CommentsClose CommentsPermalink





(1) the terms ‘Administration’ and ‘Administrator’ mean the Small Business Administration and the Administrator thereof, respectively; andCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(b) Contracting Improvements-CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(c) Small Business Contracting Programs Parity- Section 31(b)(2) of the Small Business Act (15 U.S.C. 657a(b)(2)) is amended--CommentsClose CommentsPermalink





(1) in the matter preceding subparagraph (A), by striking ‘Notwithstanding any other provision of law--’;CommentsClose CommentsPermalink





(2) in subparagraph (A)--CommentsClose CommentsPermalink





(A) in the matter preceding clause (i), by striking ‘a contracting’ and inserting ‘SOLE SOURCE CONTRACTS- A contracting’; andCommentsClose CommentsPermalink





(B) in clause (iii), by striking the semicolon at the end and inserting a period;CommentsClose CommentsPermalink





(3) in subparagraph (B)--CommentsClose CommentsPermalink





(A) by striking ‘a contract opportunity shall’ and inserting ‘RESTRICTED COMPETITION- A contract opportunity may’; andCommentsClose CommentsPermalink





(B) by striking ‘; and’ and inserting a period; andCommentsClose CommentsPermalink





(4) in subparagraph (C), by striking ‘not later’ and inserting ‘APPEALS- Not later’.CommentsClose CommentsPermalink

Subtitle D--Small Business Management and Counseling AssistanceCommentsClose CommentsPermalink

SEC. 1401. MATCHING REQUIREMENTS UNDER SMALL BUSINESS PROGRAMS.CommentsClose CommentsPermalink

(a) Microloan Program- Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (3)(B)--CommentsClose CommentsPermalink





(A) by striking ‘As a condition’ and inserting the following:CommentsClose CommentsPermalink





‘(i) IN GENERAL- Subject to clause (ii), as a condition’;CommentsClose CommentsPermalink





(B) by striking ‘the Administration’ and inserting ‘the Administrator’; andCommentsClose CommentsPermalink





(C) by adding at the end the following:CommentsClose CommentsPermalink





‘(ii) WAIVER OF NON-FEDERAL SHARE-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(II) CONSIDERATIONS- In determining whether to waive the requirement to obtain non-Federal funds under this clause, the Administrator shall consider--CommentsClose CommentsPermalink

‘(aa) the economic conditions affecting the intermediary;CommentsClose CommentsPermalink

‘(bb) the impact a waiver under this clause would have on the credibility of the microloan program under this subsection;CommentsClose CommentsPermalink

‘(cc) the demonstrated ability of the intermediary to raise non-Federal funds; andCommentsClose CommentsPermalink

‘(dd) the performance of the intermediary.CommentsClose CommentsPermalink

‘(III) LIMITATIONS-CommentsClose CommentsPermalink

‘(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.CommentsClose CommentsPermalink

‘(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.’; andCommentsClose CommentsPermalink

(2) in paragraph (4)(B)--CommentsClose CommentsPermalink





(A) by striking ‘As a condition’ and all that follows through ‘the Administration shall require’ and inserting the following:CommentsClose CommentsPermalink





‘(i) IN GENERAL- Subject to clause (ii), as a condition of a grant made under subparagraph (A), the Administrator shall require’; andCommentsClose CommentsPermalink





(B) by adding at the end the following:CommentsClose CommentsPermalink





‘(ii) WAIVER OF NON-FEDERAL SHARE-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(II) CONSIDERATIONS- In determining whether to waive the requirement to obtain non-Federal funds under this clause, the Administrator shall consider--CommentsClose CommentsPermalink

‘(aa) the economic conditions affecting the intermediary;CommentsClose CommentsPermalink

‘(bb) the impact a waiver under this clause would have on the credibility of the microloan program under this subsection;CommentsClose CommentsPermalink

‘(cc) the demonstrated ability of the intermediary to raise non-Federal funds; andCommentsClose CommentsPermalink

‘(dd) the performance of the intermediary.CommentsClose CommentsPermalink

‘(III) LIMITATIONS-CommentsClose CommentsPermalink

‘(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.CommentsClose CommentsPermalink

‘(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.’.CommentsClose CommentsPermalink

(b) Women’s Business Center Program- Section 29(c) of the Small Business Act (15 U.S.C. 656(c)) is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘As a condition’ and inserting ‘Subject to paragraph (5), as a condition’; andCommentsClose CommentsPermalink





(2) by adding at the end the following:CommentsClose CommentsPermalink





‘(5) WAIVER OF NON-FEDERAL SHARE RELATING TO TECHNICAL ASSISTANCE AND COUNSELING-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) CONSIDERATIONS- In determining whether to waive the requirement to obtain non-Federal funds under this paragraph, the Administrator shall consider--CommentsClose CommentsPermalink





‘(i) the economic conditions affecting the recipient organization;CommentsClose CommentsPermalink





‘(ii) the impact a waiver under this clause would have on the credibility of the women’s business center program under this section;CommentsClose CommentsPermalink





‘(iii) the demonstrated ability of the recipient organization to raise non-Federal funds; andCommentsClose CommentsPermalink





‘(iv) the performance of the recipient organization.CommentsClose CommentsPermalink





‘(C) LIMITATIONS-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(c) Prospective Repeals- Effective October 1, 2012, the Small Business Act (15 U.S.C. 631 et seq.) is amended--CommentsClose CommentsPermalink





(1) in section 7(m) (15 U.S.C. 636(m))--CommentsClose CommentsPermalink





(A) in paragraph (3)(B)--CommentsClose CommentsPermalink





(i) by striking ‘INTERMEDIARY CONTRIBUTION- ’ and all that follows through ‘Subject to clause (ii), as’ and inserting ‘INTERMEDIARY CONTRIBUTION- As’; andCommentsClose CommentsPermalink





(ii) by striking clause (ii); andCommentsClose CommentsPermalink





(B) in paragraph (4)(B)--CommentsClose CommentsPermalink





(i) by striking ‘CONTRIBUTION- ’ and all that follows through ‘Subject to clause (ii), as’ and inserting ‘CONTRIBUTION- As’; andCommentsClose CommentsPermalink





(ii) by striking clause (ii); andCommentsClose CommentsPermalink





(2) in section 29(c) (15 U.S.C. 656(c))--CommentsClose CommentsPermalink





(A) in paragraph (1), by striking ‘Subject to paragraph (5), as’ and inserting ‘As’; andCommentsClose CommentsPermalink





(B) by striking paragraph (5).CommentsClose CommentsPermalink

SEC. 1402. GRANTS FOR SBDCS.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(b) Allocation-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) MINIMUM FUNDING- The amount made available under this section to each State shall be not less than $325,000.CommentsClose CommentsPermalink





(3) TYPES OF USES- Of the total amount of the grants awarded by the Administrator under this section--CommentsClose CommentsPermalink





(A) not less than 80 percent shall be used for counseling of small business concerns; andCommentsClose CommentsPermalink





(B) not more than 20 percent may be used for classes or seminars.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





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

Subtitle E--Disaster Loan ImprovementCommentsClose CommentsPermalink

SEC. 1501. AQUACULTURE BUSINESS DISASTER ASSISTANCE.CommentsClose CommentsPermalink

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:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

Subtitle F--Small Business Regulatory ReliefCommentsClose CommentsPermalink

SEC. 1601. REQUIREMENTS PROVIDING FOR MORE DETAILED ANALYSES.CommentsClose CommentsPermalink

Section 604(a) of title 5, United States Code, is amended--CommentsClose CommentsPermalink





(1) in paragraph (1), by striking ‘succinct’;CommentsClose CommentsPermalink





(2) in paragraph (2), by striking ‘summary’ each place it appears and inserting ‘statement’;CommentsClose CommentsPermalink





(3) by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively; andCommentsClose CommentsPermalink





(4) by inserting after paragraph (2) the following:CommentsClose CommentsPermalink





‘(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;’.CommentsClose CommentsPermalink

SEC. 1602. OFFICE OF ADVOCACY.CommentsClose CommentsPermalink

(a) In General- Section 203 of Public Law 94-305 (15 U.S.C. 634c) is amended--CommentsClose CommentsPermalink





(1) in paragraph (4), by striking ‘and’ at the end;CommentsClose CommentsPermalink





(2) in paragraph (5), by striking the period and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end the following:CommentsClose CommentsPermalink





‘(6) carry out the responsibilities of the Office of Advocacy under chapter 6 of title 5, United States Code.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink

‘SEC. 207. BUDGETARY LINE ITEM AND AUTHORIZATION OF APPROPRIATIONS.CommentsClose CommentsPermalink

‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink

Subtitle G--Appropriations ProvisionsCommentsClose CommentsPermalink

SEC. 1701. SALARIES AND EXPENSES.CommentsClose CommentsPermalink

(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--CommentsClose CommentsPermalink





(1) $50,000,000 is for grants to small business development centers authorized under section 1402;CommentsClose CommentsPermalink





(2) $1,000,000 is for the costs of administering grants authorized under section 1402;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(5) $2,500,000 is for the costs of administering grants authorized under section 1207;CommentsClose CommentsPermalink





(6) $5,000,000 is for grants for fiscal year 2011 under the Small Business Teaming Pilot Program under section 1314; andCommentsClose CommentsPermalink





(7) $5,000,000 is for grants for fiscal year 2012 under the Small Business Teaming Pilot Program under section 1314.CommentsClose CommentsPermalink





(b) Report- Not later than 60 days after the date of enactment of this Act, the Administrator shall submit to the Committee on Appropriations of the Senate and the Committee on Appropriations of the House of Representatives a detailed expenditure plan for using the funds provided under subsection (a).CommentsClose CommentsPermalink

SEC. 1702. BUSINESS LOANS PROGRAM ACCOUNT.CommentsClose CommentsPermalink

(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’--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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’; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Definition- In this section, the term ‘cost’ has the meaning given that term in section 502 of the Congressional Budget Act of 1974.CommentsClose CommentsPermalink

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

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.CommentsClose CommentsPermalink

SEC. 1704. SMALL BUSINESS LOAN GUARANTEE ENHANCEMENT EXTENSIONS.CommentsClose CommentsPermalink

(a) Extension of Programs-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink

TITLE II--TAX PROVISIONSCommentsClose CommentsPermalink

SEC. 2001. SHORT TITLE.CommentsClose CommentsPermalink

This title may be cited as the ‘Creating Small Business Jobs Act of 2010’.CommentsClose CommentsPermalink

Subtitle A--Small Business ReliefCommentsClose CommentsPermalink

PART I--PROVIDING ACCESS TO CAPITAL

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

(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:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) paragraph (1) shall be applied by substituting ‘100 percent’ for ‘50 percent’,CommentsClose CommentsPermalink





‘(B) paragraph (2) shall not apply, andCommentsClose CommentsPermalink





‘(C) paragraph (7) of section 57(a) shall not apply.’.CommentsClose CommentsPermalink





(b) Conforming Amendment- Paragraph (3) of section 1202(a) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by inserting ‘CERTAIN PERIODS IN’ before ‘2010’ in the heading, andCommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to stock acquired after the date of the enactment of this Act.CommentsClose CommentsPermalink

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

(a) In General- Section 39(a) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) 5-year CARRYBACK FOR ELIGIBLE SMALL BUSINESS CREDITS-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) paragraph (1) shall be applied by substituting ‘each of the 5 taxable years’ for ‘the taxable year’ in subparagraph (A) thereof, andCommentsClose CommentsPermalink





‘(ii) paragraph (2) shall be applied--CommentsClose CommentsPermalink





‘(I) by substituting ‘25 taxable years’ for ‘21 taxable years’ in subparagraph (A) thereof, andCommentsClose CommentsPermalink





‘(II) by substituting ‘24 taxable years’ for ‘20 taxable years’ in subparagraph (B) thereof.CommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink





(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)’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to credits determined in taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink

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

(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:CommentsClose CommentsPermalink





‘(5) SPECIAL RULES FOR ELIGIBLE SMALL BUSINESS CREDITS IN 2010-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In the case of eligible small business credits determined in taxable years beginning in 2010--CommentsClose CommentsPermalink





‘(i) this section and section 39 shall be applied separately with respect to such credits, andCommentsClose CommentsPermalink





‘(ii) in applying paragraph (1) to such credits--CommentsClose CommentsPermalink





‘(I) the tentative minimum tax shall be treated as being zero, andCommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(C) ELIGIBLE SMALL BUSINESS- For purposes of this subsection, the term ‘eligible small business’ means, with respect to any taxable year--CommentsClose CommentsPermalink





‘(i) a corporation the stock of which is not publicly traded,CommentsClose CommentsPermalink





‘(ii) a partnership, orCommentsClose CommentsPermalink





‘(iii) a sole proprietorship,CommentsClose CommentsPermalink





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.CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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)’.CommentsClose CommentsPermalink





(c) Conforming Amendments-CommentsClose CommentsPermalink





(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,’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(a) In General- Subparagraph (B) of section 1374(d)(7) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(B) SPECIAL RULES FOR 2009, 2010, AND 2011- No tax shall be imposed on the net recognized built-in gain of an S corporation--CommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(ii) in the case of any taxable year beginning in 2011, if the 5th year in the recognition period preceded such taxable year.CommentsClose CommentsPermalink





The preceding sentence shall be applied separately with respect to any asset to which paragraph (8) applies.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink

PART II--ENCOURAGING INVESTMENT

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

(a) Increased Limitations- Subsection (b) of section 179 of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking ‘shall not exceed’ and all that follows in paragraph (1) and inserting ‘shall not exceed--CommentsClose CommentsPermalink





‘(A) $250,000 in the case of taxable years beginning after 2007 and before 2010,CommentsClose CommentsPermalink





‘(B) $500,000 in the case of taxable years beginning in 2010 or 2011, andCommentsClose CommentsPermalink





‘(C) $25,000 in the case of taxable years beginning after 2011.’, andCommentsClose CommentsPermalink





(2) by striking ‘exceeds’ and all that follows in paragraph (2) and inserting ‘exceeds--CommentsClose CommentsPermalink





‘(A) $800,000 in the case of taxable years beginning after 2007 and before 2010,CommentsClose CommentsPermalink





‘(B) $2,000,000 in the case of taxable years beginning in 2010 or 2011, andCommentsClose CommentsPermalink





‘(C) $200,000 in the case of taxable years beginning after 2011.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(f) Special Rules for Qualified Real Property-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) of a character subject to an allowance for depreciation,CommentsClose CommentsPermalink





‘(B) acquired by purchase for use in the active conduct of a trade or business, andCommentsClose CommentsPermalink





‘(C) not described in the last sentence of subsection (d)(1).CommentsClose CommentsPermalink





‘(2) QUALIFIED REAL PROPERTY- For purposes of this subsection, the term ‘qualified real property’ means--CommentsClose CommentsPermalink





‘(A) qualified leasehold improvement property described in section 168(e)(6),CommentsClose CommentsPermalink





‘(B) qualified restaurant property described in section 168(e)(7) (without regard to the dates specified in subparagraph (A)(i) thereof), andCommentsClose CommentsPermalink





‘(C) qualified retail improvement property described in section 168(e)(8) (without regard to subparagraph (E) thereof).CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(4) CARRYOVER LIMITATION-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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 toCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





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.’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(d) Computer Software Treated as 179 Property- Clause (ii) of section 179(d)(1)(A) is amended by striking ‘2011’ and inserting ‘2012’.CommentsClose CommentsPermalink





(e) Effective Dates-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) EXTENSIONS- The amendments made by subsections (c) and (d) shall apply to taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink

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

(a) In General- Paragraph (2) of section 168(k) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking ‘January 1, 2011’ in subparagraph (A)(iv) and inserting ‘January 1, 2012’, andCommentsClose CommentsPermalink





(2) by striking ‘January 1, 2010’ each place it appears and inserting ‘January 1, 2011’.CommentsClose CommentsPermalink





(b) Conforming Amendments-CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(iv) ‘January 1, 2011’ shall be substituted for ‘January 1, 2012’ in subparagraph (A)(iv) thereof, andCommentsClose CommentsPermalink





‘(v) ‘January 1, 2010’ shall be substituted for ‘January 1, 2011’ each place it appears in subparagraph (A) thereof.’.CommentsClose CommentsPermalink





(4) Subparagraph (B) of section 168(l)(5) of such Code is amended by striking ‘January 1, 2010’ and inserting ‘January 1, 2011’.CommentsClose CommentsPermalink





(5) Subparagraph (C) of section 168(n)(2) of such Code is amended by striking ‘January 1, 2010’ and inserting ‘January 1, 2011’.CommentsClose CommentsPermalink





(6) Subparagraph (D) of section 1400L(b)(2) of such Code is amended by striking ‘January 1, 2010’ and inserting ‘January 1, 2011’.CommentsClose CommentsPermalink





(7) Subparagraph (B) of section 1400N(d)(3) of such Code is amended by striking ‘January 1, 2010’ and inserting ‘January 1, 2011’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(a) In General- Section 460(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(6) SPECIAL RULE FOR ALLOCATION OF BONUS DEPRECIATION WITH RESPECT TO CERTAIN PROPERTY-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) QUALIFIED PROPERTY- For purposes of this paragraph, the term ‘qualified property’ means property described in section 168(k)(2) which--CommentsClose CommentsPermalink





‘(i) has a recovery period of 7 years or less, andCommentsClose CommentsPermalink





‘(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)).’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to property placed in service after December 31, 2009.CommentsClose CommentsPermalink

PART III--PROMOTING ENTREPRENEURSHIP

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

(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:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) by substituting ‘$10,000’ for ‘$5,000’, andCommentsClose CommentsPermalink





‘(B) by substituting ‘$60,000’ for ‘$50,000’.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

(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--CommentsClose CommentsPermalink





(1) analyzing and developing opportunities for businesses in the United States to access the markets of foreign countries; andCommentsClose CommentsPermalink





(2) enforcing trade agreements to which the United States is a party.CommentsClose CommentsPermalink





(b) Requirements- In obligating and expending the funds authorized to be appropriated under subsection (a), the United States Trade Representative shall--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(2) consider the needs of small- and medium-sized businesses in the United States with respect to--CommentsClose CommentsPermalink





(A) accessing the markets of foreign countries; andCommentsClose CommentsPermalink





(B) the enforcement of trade agreements to which the United States is a party.CommentsClose CommentsPermalink

PART IV--PROMOTING SMALL BUSINESS FAIRNESS

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

(a) In General- Subsection (b) of section 6707A of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(b) Amount of Penalty-CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(2) MAXIMUM PENALTY- The amount of the penalty under subsection (a) with respect to any reportable transaction shall not exceed--CommentsClose CommentsPermalink





‘(A) in the case of a listed transaction, $200,000 ($100,000 in the case of a natural person), orCommentsClose CommentsPermalink





‘(B) in the case of any other reportable transaction, $50,000 ($10,000 in the case of a natural person).CommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to penalties assessed after December 31, 2006.CommentsClose CommentsPermalink

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

(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.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink

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

(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).CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to taxable years beginning after December 31, 2009.CommentsClose CommentsPermalink

Subtitle B--Revenue ProvisionsCommentsClose CommentsPermalink

PART I--REDUCING THE TAX GAP

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

(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:CommentsClose CommentsPermalink





‘(h) Treatment of Rental Property Expense Payments-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) EXCEPTIONS- Paragraph (1) shall not apply to--CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(B) any individual who receives rental income of not more than the minimal amount, as determined under regulations prescribed by the Secretary, andCommentsClose CommentsPermalink





‘(C) any other individual for whom the requirements of this section would cause hardship, as determined under regulations prescribed by the Secretary.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by subsection (a) shall apply to payments made after December 31, 2010.CommentsClose CommentsPermalink

SEC. 2102. INCREASE IN INFORMATION RETURN PENALTIES.CommentsClose CommentsPermalink

(a) Failure To File Correct Information Returns-CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(b) Reduction Where Correction Within 30 Days-CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(c) Reduction Where Correction on or Before August 1-CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(d) Aggregate Annual Limitations for Persons With Gross Receipts of Not More Than $5,000,000-CommentsClose CommentsPermalink





(1) IN GENERAL- Paragraph (1) of section 6721(d) of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(A) by striking ‘$100,000’ in subparagraph (A) and inserting ‘$500,000’,CommentsClose CommentsPermalink





(B) by striking ‘$25,000’ in subparagraph (B) and inserting ‘$75,000’, andCommentsClose CommentsPermalink





(C) by striking ‘$50,000’ in subparagraph (C) and inserting ‘$200,000’.CommentsClose CommentsPermalink





(2) TECHNICAL AMENDMENT- Paragraph (1) of section 6721(d) of such Code is amended by striking ‘such taxable year’ and inserting ‘such calendar year’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(f) Adjustment for Inflation- Section 6721 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(f) Adjustment for Inflation-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) ROUNDING- If any amount adjusted under paragraph (1)--CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(g) Failure To Furnish Correct Payee Statements- Section 6722 of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink

‘SEC. 6722. FAILURE TO FURNISH CORRECT PAYEE STATEMENTS.CommentsClose CommentsPermalink

‘(a) Imposition of Penalty-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) FAILURES SUBJECT TO PENALTY- For purposes of paragraph (1), the failures described in this paragraph are--CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(B) any failure to include all of the information required to be shown on a payee statement or the inclusion of incorrect information.CommentsClose CommentsPermalink





‘(b) Reduction Where Correction in Specified Period-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the penalty imposed by subsection (a) shall be $30 in lieu of $100, andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) the penalty imposed by subsection (a) shall be $60 in lieu of $100, andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Exception for De Minimis Failures-CommentsClose CommentsPermalink





‘(1) IN GENERAL- If--CommentsClose CommentsPermalink





‘(A) a payee statement is furnished to the person to whom such statement is required to be furnished,CommentsClose CommentsPermalink





‘(B) there is a failure described in subsection (a)(2)(B) (determined after the application of section 6724(a)) with respect to such statement, andCommentsClose CommentsPermalink





‘(C) such failure is corrected on or before August 1 of the calendar year in which the required filing date occurs,CommentsClose CommentsPermalink





for purposes of this section, such statement shall be treated as having been furnished with all of the correct required information.CommentsClose CommentsPermalink





‘(2) LIMITATION- The number of payee statements to which paragraph (1) applies for any calendar year shall not exceed the greater of--CommentsClose CommentsPermalink





‘(A) 10, orCommentsClose CommentsPermalink





‘(B) one-half of 1 percent of the total number of payee statements required to be filed by the person during the calendar year.CommentsClose CommentsPermalink





‘(d) Lower Limitations for Persons With Gross Receipts of Not More Than $5,000,000-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) subsection (a)(1) shall be applied by substituting ‘$500,000’ for ‘$1,500,000’,CommentsClose CommentsPermalink





‘(B) subsection (b)(1)(B) shall be applied by substituting ‘$75,000’ for ‘$250,000’, andCommentsClose CommentsPermalink





‘(C) subsection (b)(2)(B) shall be applied by substituting ‘$200,000’ for ‘$500,000’.CommentsClose CommentsPermalink





‘(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).CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(1) subsections (b), (c), and (d) shall not apply,CommentsClose CommentsPermalink





‘(2) the penalty imposed under subsection (a)(1) shall be $250, or, if greater--CommentsClose CommentsPermalink





‘(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, orCommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(3) in the case of any penalty determined under paragraph (2)--CommentsClose CommentsPermalink





‘(A) the $1,500,000 limitation under subsection (a) shall not apply, andCommentsClose CommentsPermalink





‘(B) such penalty shall not be taken into account in applying such limitation to penalties not determined under paragraph (2).CommentsClose CommentsPermalink





‘(f) Adjustment for Inflation-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(2) ROUNDING- If any amount adjusted under paragraph (1)--CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(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:CommentsClose CommentsPermalink





(1) Section 6662A (relating to accuracy-related penalty on understatements with respect to reportable transactions).CommentsClose CommentsPermalink





(2) Section 6700(a) (relating to promoting abusive tax shelters).CommentsClose CommentsPermalink





(3) Section 6707 (relating to failure to furnish information regarding reportable transactions).CommentsClose CommentsPermalink





(4) Section 6707A (relating to failure to include reportable transaction information with return).CommentsClose CommentsPermalink





(5) Section 6708 (relating to failure to maintain lists of advisees with respect to reportable transactions).CommentsClose CommentsPermalink





(b) Additional Information- The report required under subsection (a) shall also include information on the following with respect to each year:CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Date of Report- The first report required under subsection (a) shall be submitted not later than December 31, 2010.CommentsClose CommentsPermalink

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

(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:CommentsClose CommentsPermalink





‘(4) the Secretary has served a Federal contractor levy,’.CommentsClose CommentsPermalink





(b) Federal Contractor Levy- Subsection (h) of section 6330 of the Internal Revenue Code of 1986 is amended--CommentsClose CommentsPermalink





(1) by striking all that precedes ‘any levy in connection with the collection’ and inserting the following:CommentsClose CommentsPermalink





‘(h) Definitions Related to Exceptions- For purposes of subsection (f)--CommentsClose CommentsPermalink





‘(1) DISQUALIFIED EMPLOYMENT TAX LEVY- A disqualified employment tax levy is’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to levies issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

PART II--PROMOTING RETIREMENT PREPARATION

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

(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:CommentsClose CommentsPermalink





‘(C) an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A).’.CommentsClose CommentsPermalink





(b) Elective Deferrals- Section 402A(e)(2) of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(2) ELECTIVE DEFERRAL- The term ‘elective deferral’ means--CommentsClose CommentsPermalink





‘(A) any elective deferral described in subparagraph (A) or (C) of section 402(g)(3), andCommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink





(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink

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

(a) In General- Section 402A(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(4) TAXABLE ROLLOVERS TO DESIGNATED ROTH ACCOUNTS-CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(i) there shall be included in gross income any amount which would be includible were it not part of a qualified rollover contribution,CommentsClose CommentsPermalink





‘(ii) section 72(t) shall not apply, andCommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





Any election under clause (iii) for any distributions during a taxable year may not be changed after the due date for such taxable year.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(C) COORDINATION WITH LIMIT- Any distribution to which this paragraph applies shall not be taken into account for purposes of paragraph (1).CommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to distributions after the date of the enactment of this Act.CommentsClose CommentsPermalink

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

(a) In General- Subsection (a) of section 72 of the Internal Revenue Code of 1986 is amended to read as follows:CommentsClose CommentsPermalink





‘(a) General Rules for Annuities-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(A) such portion shall be treated as a separate contract for purposes of this section,CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(b) Effective Date- The amendment made by this section shall apply to amounts received in taxable years beginning after December 31, 2010.CommentsClose CommentsPermalink

PART III--CLOSING UNINTENDED LOOPHOLES

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

(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--CommentsClose CommentsPermalink





(1) by striking ‘or’ at the end of subclause (I),CommentsClose CommentsPermalink





(2) by striking the period at the end of subclause (II) and inserting ‘, or’,CommentsClose CommentsPermalink





(3) by adding at the end the following new subclause:CommentsClose CommentsPermalink





‘(III) such fuel has an acid number greater than 25.’, andCommentsClose CommentsPermalink





(4) by striking ‘UNPROCESSED’ in the heading and inserting ‘CERTAIN’.CommentsClose CommentsPermalink





(b) Effective Date- The amendments made by this section shall apply to fuels sold or used on or after January 1, 2010.CommentsClose CommentsPermalink

SEC. 2122. SOURCE RULES FOR INCOME ON GUARANTEES.CommentsClose CommentsPermalink

(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:CommentsClose CommentsPermalink





‘(9) GUARANTEES- Amounts received, directly or indirectly, from--CommentsClose CommentsPermalink





‘(A) a noncorporate resident or domestic corporation for the provision of a guarantee of any indebtedness of such resident or corporation, orCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘(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).’.CommentsClose CommentsPermalink





(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’.CommentsClose CommentsPermalink





(d) Effective Date- The amendments made by this section shall apply to guarantees issued after the date of the enactment of this Act.CommentsClose CommentsPermalink

PART IV--TIME FOR PAYMENT OF CORPORATE ESTIMATED TAXES

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

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.CommentsClose CommentsPermalink

TITLE III--STATE SMALL BUSINESS CREDIT INITIATIVECommentsClose CommentsPermalink

SEC. 3001. SHORT TITLE.CommentsClose CommentsPermalink

This title may be cited as the ‘State Small Business Credit Initiative Act of 2010’.CommentsClose CommentsPermalink

SEC. 3002. DEFINITIONS.CommentsClose CommentsPermalink

In this title, the following definitions shall apply:CommentsClose CommentsPermalink





(1) APPROPRIATE COMMITTEES OF CONGRESS- The term ‘appropriate committees of Congress’ means--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) APPROPRIATE FEDERAL BANKING AGENCY- The term ‘appropriate Federal banking agency’--CommentsClose CommentsPermalink





(A) has the same meaning as in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)); andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(6) PARTICIPATING STATE- The term ‘participating State’ means any State that has been approved for participation in the Program under section 3004.CommentsClose CommentsPermalink





(7) PROGRAM- The term ‘Program’ means the State Small Business Credit Initiative established under this title.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) the participating State delivers funds to the entity as collateral;CommentsClose CommentsPermalink





(B) the entity provides funding from the arrangement back to the participating State; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(B) depositing contributions made by the participating State, including State contributions made with Federal contributions; andCommentsClose CommentsPermalink





(C) covering losses on enrolled loans by disbursing accumulated funds.CommentsClose CommentsPermalink





(10) STATE- The term ‘State’ means--CommentsClose CommentsPermalink





(A) a State of the United States;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(11) STATE CAPITAL ACCESS PROGRAM- The term ‘State capital access program’ means a program of a State that--CommentsClose CommentsPermalink





(A) uses public resources to promote private access to credit; andCommentsClose CommentsPermalink





(B) meets the eligibility criteria in section 3005(c).CommentsClose CommentsPermalink





(12) STATE OTHER CREDIT SUPPORT PROGRAM- The term ‘State other credit support program’--CommentsClose CommentsPermalink





(A) means a program of a State that--CommentsClose CommentsPermalink





(i) uses public resources to promote private access to credit;CommentsClose CommentsPermalink





(ii) is not a State capital access program; andCommentsClose CommentsPermalink





(iii) meets the eligibility criteria in section 3006(c); andCommentsClose CommentsPermalink





(B) includes, collateral support programs, loan participation programs, State-run venture capital fund programs, and credit guarantee programs.CommentsClose CommentsPermalink





(13) STATE PROGRAM- The term ‘State program’ means a State capital access program or a State other credit support program.CommentsClose CommentsPermalink





(14) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury.CommentsClose CommentsPermalink

SEC. 3003. FEDERAL FUNDS ALLOCATED TO STATES.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(b) Allocation Formula-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) would receive under the 2009 allocation, as determined under paragraph (2); andCommentsClose CommentsPermalink





(B) would receive under the 2010 allocation, as determined under paragraph (3).CommentsClose CommentsPermalink





(2) 2009 ALLOCATION FORMULA-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(i) the number of individuals employed in such State determined for December 2007; overCommentsClose CommentsPermalink





(ii) the number of individuals employed in such State determined for December 2008.CommentsClose CommentsPermalink





(3) 2010 ALLOCATION FORMULA-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(1) ALLOCATED AMOUNT GENERALLY TO BE AVAILABLE TO STATE IN ONE-THIRDS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary shall--CommentsClose CommentsPermalink





(i) apportion the participating State’s allocated amount into thirds;CommentsClose CommentsPermalink





(ii) transfer to the participating State the first 1/3 when the Secretary approves the State for participation under section 3004; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) AUTHORITY TO WITHHOLD PENDING AUDIT- The Secretary may withhold the transfer of any successive 1/3 pending results of a financial audit.CommentsClose CommentsPermalink





(C) INSPECTOR GENERAL AUDITS-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(ii) RECOUPMENT OF MISUSED TRANSFERRED FUNDS REQUIRED- The allocation agreement between the Secretary and the participating State shall provide that the Secretary shall recoup any allocated Federal funds transferred to the participating State if the results of the an audit include a finding that there was an intentional or reckless misuse of transferred funds by the State.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(3) USE OF TRANSFERRED FUNDS- Each participating State may use funds transferred to it under this section only--CommentsClose CommentsPermalink





(A) for making Federal contributions to, or for the account of, an approved State program;CommentsClose CommentsPermalink





(B) as collateral for a qualifying loan or swap funding facility;CommentsClose CommentsPermalink





(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 ; orCommentsClose CommentsPermalink





(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 .CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(6) DEFINITIONS- In this section--CommentsClose CommentsPermalink





(A) the term ‘allocated amount’ means the total amount of Federal funds allocated by the Secretary under subsection (b) to the participating State; andCommentsClose CommentsPermalink





(B) the term ‘ 1/3 ’ means--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(ii) in the case of the last 1/3 , an amount equal to 34 percent of a participating State’s allocated amount.CommentsClose CommentsPermalink

SEC. 3004. APPROVING STATES FOR PARTICIPATION.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(b) General Approval Criteria- The Secretary shall approve a State to be a participating State, if--CommentsClose CommentsPermalink





(1) a specific department, agency, or political subdivision of the State has been designated to implement a State program and participate in the Program;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(4) the State and the Secretary have executed an allocation agreement that--CommentsClose CommentsPermalink





(A) conforms to the requirements of this title;CommentsClose CommentsPermalink





(B) ensures that the State program complies with such national standards as are established by the Secretary under section 3009(a)(2);CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) an existing, approved State program administered by another State; orCommentsClose CommentsPermalink





(2) an authorized agent of, or entity supervised by, the State, including for-profit and not-for-profit entities.CommentsClose CommentsPermalink





(d) Special Permission-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(4) APPROVAL CRITERIA- The general approval criteria in paragraphs (2) and (4) shall apply.CommentsClose CommentsPermalink





(5) ALLOCATION TO MUNICIPALITIES-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 3005. APPROVING STATE CAPITAL ACCESS PROGRAMS.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(b) Approval- The Secretary shall approve such State capital access program as eligible for Federal contributions to the reserve fund if--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(3) the State satisfies the requirements of subsections (a) and (b) of section 3004; andCommentsClose CommentsPermalink





(4) the State capital access program meets the eligibility criteria in subsection (c).CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) provides portfolio insurance for business loans based on a separate loan-loss reserve fund for each financial institution;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(4) provides its portfolio insurance solely for loans that meet both the following requirements:CommentsClose CommentsPermalink





(A) The borrower has 500 employees or less at the time that the loan is enrolled in the Program.CommentsClose CommentsPermalink





(B) The loan amount does not exceed $5,000,000.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(7) LOAN PURPOSE-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(i) shall obtain an assurance from each borrower that--CommentsClose CommentsPermalink





(I) the proceeds of the loan will be used for a business purpose;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(III) the borrower is not--CommentsClose CommentsPermalink

(aa) an executive officer, director, or principal shareholder of the financial institution lender;CommentsClose CommentsPermalink

(bb) a member of the immediate family of an executive officer, director, or principal shareholder of the financial institution lender; orCommentsClose CommentsPermalink

(cc) a related interest of any such executive officer, director, principal shareholder, or member of the immediate family;CommentsClose CommentsPermalink

(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) the Secretary determines that the State satisfies the requirements of paragraphs (1) through (3) of section 3005(b);CommentsClose CommentsPermalink





(2) the Secretary determines that the State other credit support program meets the eligibility criteria in subsection (c);CommentsClose CommentsPermalink





(3) the Secretary determines the State other credit support program to be eligible based on the additional considerations in subsection (d); andCommentsClose CommentsPermalink





(4) within 9 months after the date of enactment of this Act, the State has filed with Treasury a complete application for Treasury approval.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(4) uses Federal funds allocated under this title to extend credit support that--CommentsClose CommentsPermalink





(A) targets an average borrower size of 500 employees or less;CommentsClose CommentsPermalink





(B) does not extend credit support to borrowers that have more than 750 employees;CommentsClose CommentsPermalink





(C) targets support towards loans with an average principal amount of $5,000,000 or less; andCommentsClose CommentsPermalink





(D) does not extend credit support to loans that exceed a principal amount of $20,000,000.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) The operational capacity, skills, and experience of the management team of the State other credit support program.CommentsClose CommentsPermalink





(3) The capacity of the State other credit support program to manage increases in the volume of its small business lending.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(5) The soundness of the program design and implementation plan of the State other credit support program.CommentsClose CommentsPermalink





(e) Federal Contributions to Approved State Other Credit Support Programs- A State other credit support program approved under this section will be eligible for receiving Federal contributions to, or for the account of, the State program in an amount consistent with the schedule describing the apportionment of allocated Federal funds among State programs delivered by the State to the Secretary under the allocation agreement.CommentsClose CommentsPermalink





(f) Minimum Program Requirements for State Other Credit Support Programs-CommentsClose CommentsPermalink





(1) FUND TO PRESCRIBE- The Secretary shall, by regulation or other guidance, prescribe Program requirements for approved State other credit support programs.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink

SEC. 3007. REPORTS.CommentsClose CommentsPermalink

(a) Quarterly Use-of-funds Report-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) REPORT CONTENTS- Each report under this subsection shall--CommentsClose CommentsPermalink





(A) indicate the total amount of Federal funding used by the participating State; andCommentsClose CommentsPermalink





(B) include a certification by the participating State that--CommentsClose CommentsPermalink





(i) the information provided in accordance with subparagraph (A) is accurate;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(iii) the participating State is implementing its approved State program or programs in accordance with this title and regulations issued under section 3010.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) The total amount of such new loans.CommentsClose CommentsPermalink





(3) Breakdowns by industry type, loan size, annual sales, and number of employees of the borrowers that received such new loans.CommentsClose CommentsPermalink





(4) The zip code of each borrower that received such a new loan.CommentsClose CommentsPermalink





(5) Such other data as the Secretary, in the Secretary’s sole discretion, may require to carry out the purposes of the Program.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(a) Remedies-CommentsClose CommentsPermalink





(1) IN GENERAL- If any of the events listed in paragraph (2) occur, the Secretary, in the Secretary’s discretion, may--CommentsClose CommentsPermalink





(A) reduce the amount of Federal funds allocated to the State under the Program; orCommentsClose CommentsPermalink





(B) terminate any further transfers of allocated amounts that have not yet been transferred to the State.CommentsClose CommentsPermalink





(2) CAUSAL EVENTS- The events referred to in paragraph (1) are--CommentsClose CommentsPermalink





(A) termination by a participating State of its participation in the Program;CommentsClose CommentsPermalink





(B) failure on the part of a participating State to submit complete reports under section 3007 on a timely basis; orCommentsClose CommentsPermalink





(C) noncompliance by the State with the terms of the allocation agreement between the Secretary and the State.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink

SEC. 3009. IMPLEMENTATION AND ADMINISTRATION.CommentsClose CommentsPermalink

(a) General Authorities and Duties- The Secretary shall--CommentsClose CommentsPermalink





(1) consult with the Administrator of the Small Business Administration and the appropriate Federal banking agencies on the administration of the Program;CommentsClose CommentsPermalink





(2) establish minimum national standards for approved State programs;CommentsClose CommentsPermalink





(3) provide technical assistance to States for starting State programs and generally disseminate best practices;CommentsClose CommentsPermalink





(4) manage, administer, and perform necessary program integrity functions for the Program; andCommentsClose CommentsPermalink





(5) ensure adequate oversight of the approved State programs, including oversight of the cash flows, performance, and compliance of each approved State program.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 3010. REGULATIONS.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

SEC. 3011. OVERSIGHT AND AUDITS.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Required Certification-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

TITLE IV--ADDITIONAL SMALL BUSINESS PROVISIONSCommentsClose CommentsPermalink

Subtitle A--Small Business Lending FundCommentsClose CommentsPermalink

SEC. 4101. PURPOSE.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

SEC. 4102. DEFINITIONS.CommentsClose CommentsPermalink

For purposes of this subtitle:CommentsClose CommentsPermalink





(1) APPROPRIATE COMMITTEES OF CONGRESS- The term ‘appropriate committees of Congress’ means--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(4) CALL REPORT- The term ‘call report’ means--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(B) the Office of Thrift Supervision Thrift Financial Report;CommentsClose CommentsPermalink





(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);CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(8) CDLF; COMMUNITY DEVELOPMENT LOAN FUND- The terms ‘CDLF’ and ‘community development loan fund’ mean any entity that--CommentsClose CommentsPermalink





(A) is certified by the Department of the Treasury as a community development financial institution loan fund;CommentsClose CommentsPermalink





(B) is exempt from taxation under the Internal Revenue Code of 1986; andCommentsClose CommentsPermalink





(C) had assets less than or equal to $10,000,000,000 as of the end of the fourth quarter of calendar year 2009.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(11) ELIGIBLE INSTITUTION- The term ‘eligible institution’ means--CommentsClose CommentsPermalink





(A) any insured depository institution, which--CommentsClose CommentsPermalink





(i) is not controlled by a bank holding company or savings and loan holding company that is also an eligible institution;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(12) FUND- The term ‘Fund’ means the Small Business Lending Fund established under section 4103(a)(1).CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(15) PROGRAM- The term ‘Program’ means the Small Business Lending Fund Program authorized under section 4103(a)(2).CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(17) SECRETARY- The term ‘Secretary’ means the Secretary of the Treasury.CommentsClose CommentsPermalink





(18) SMALL BUSINESS LENDING-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(i) Commercial and industrial loans.CommentsClose CommentsPermalink





(ii) Owner-occupied nonfarm, nonresidential real estate loans.CommentsClose CommentsPermalink





(iii) Loans to finance agricultural production and other loans to farmers.CommentsClose CommentsPermalink





(iv) Loans secured by farmland.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(19) VETERAN-OWNED BUSINESS-CommentsClose CommentsPermalink





(A) The term ‘veteran-owned business’ means a business--CommentsClose CommentsPermalink





(i) more than 50 percent of the ownership or control of which is held by 1 or more veterans;CommentsClose CommentsPermalink





(ii) more than 50 percent of the net profit or loss of which accrues to 1 or more veterans; andCommentsClose CommentsPermalink





(iii) a significant percentage of senior management positions of which are held by veterans.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4103. SMALL BUSINESS LENDING FUND.CommentsClose CommentsPermalink

(a) Fund and Program-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) PROGRAMS AUTHORIZED- The Secretary is authorized to establish the Small Business Lending Fund Program for using the Fund consistent with this subtitle.CommentsClose CommentsPermalink





(b) Use of Fund-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(4) LIMITATION ON PURCHASES FROM CDLFS-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(i) Ratio of net assets to total assets is at least 20 percent.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(iii) Positive net income measured on a 3-year rolling average.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(d) Terms-CommentsClose CommentsPermalink





(1) APPLICATION-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) INSTITUTIONS WITH ASSETS OF MORE THAN $1,000,000,000 AND LESS THAN OR EQUAL TO $10,000,000,000- Eligible institutions having total assets of more than $1,000,000,000 but less than $10,000,000,000, as of the end of the fourth quarter of calendar year 2009, may apply to receive a capital investment from the Fund in an amount not exceeding 3 percent of risk-weighted assets, as reported in the call report immediately preceding the date of application, less the amount of any CDCI investment and any CPP investment.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) CONSULTATION WITH REGULATORS- For each eligible institution that applies to receive a capital investment under the Program, the Secretary shall--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(C) in the case of a community development financial institution loan fund, consult with the Community Development Financial Institution Fund.CommentsClose CommentsPermalink





(3) CONSIDERATION OF MATCHED PRIVATE INVESTMENTS-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) CONDITIONS- The conditions referred to in subparagraph (A) are as follows:CommentsClose CommentsPermalink





(i) CAPITAL SOURCES- The eligible institution shall receive capital both under the Program and from private, nongovernment investors.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(iii) TERMS- The amount of capital to be received from private, nongovernment investors shall be--CommentsClose CommentsPermalink





(I) equal to or greater than 100 percent of the capital to be received under the Program; andCommentsClose CommentsPermalink





(II) subordinate to the capital investment made by the Secretary under the Program.CommentsClose CommentsPermalink





(4) INELIGIBILITY OF INSTITUTIONS ON FDIC PROBLEM BANK LIST-CommentsClose CommentsPermalink





(A) IN GENERAL- An eligible institution may not receive any capital investment under the Program, if--CommentsClose CommentsPermalink





(i) such institution is on the FDIC problem bank list; orCommentsClose CommentsPermalink





(ii) such institution has been removed from the FDIC problem bank list for less than 90 days.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(5) INCENTIVES TO LEND-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(i) the rate at which dividends or interest are payable shall be 5 percent per annum initially;CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(I) net loan charge offs with respect to small business lending; andCommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; orCommentsClose CommentsPermalink





(V) if the amount of small business lending has increased by 10 percent or greater, the dividend or interest rate shall be 1 percent.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(G) RATE ADJUSTMENTS FOR S CORPORATION- Before making a capital investment in an eligible institution that is an S corporation or a corporation organized on a mutual basis, the Secretary may adjust the dividend or interest rate on the financial instrument to be issued to the Secretary, from the dividend or interest rate that would apply under subparagraphs (A) through (F), to take into account any differential tax treatment of securities issued by such eligible institution. For purpose of this subparagraph, the term ‘S corporation’ has the same meaning as in section 1361(a) of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(i) includes, as a term and condition, that the capital investment will--CommentsClose CommentsPermalink





(I) be repaid not later than the end of the 10-year period beginning on the date of the capital investment under the Program; orCommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(7) CAPITAL PURCHASE PROGRAM REFINANCE-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) represent or work within or are members of minority communities;CommentsClose CommentsPermalink





(B) represent or work with or are women; andCommentsClose CommentsPermalink





(C) represent or work with or are veterans.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4104. ADDITIONAL AUTHORITIES OF THE SECRETARY.CommentsClose CommentsPermalink

The Secretary may take such actions as the Secretary deems necessary to carry out the authorities in this subtitle, including, without limitation, the following:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) The Secretary may enter into contracts, including contracts for services authorized by section 3109 of title 5, United States Code.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(5) Subject to section 4103(b)(3), the Secretary may manage any assets purchased under this subtitle, including revenues and portfolio risks therefrom.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4105. CONSIDERATIONS.CommentsClose CommentsPermalink

In exercising the authorities granted in this subtitle, the Secretary shall take into consideration--CommentsClose CommentsPermalink





(1) increasing the availability of credit for small businesses;CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(3) protecting and increasing American jobs;CommentsClose CommentsPermalink





(4) increasing the opportunity for small business development in areas with high unemployment rates that exceed the national average;CommentsClose CommentsPermalink





(5) ensuring that all eligible institutions may apply to participate in the program established under this subtitle, without discrimination based on geography;CommentsClose CommentsPermalink





(6) providing transparency with respect to use of funds provided under this subtitle;CommentsClose CommentsPermalink





(7) minimizing the cost to taxpayers of exercising the authorities;CommentsClose CommentsPermalink





(8) promoting and engaging in financial education to would-be borrowers; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4106. REPORTS.CommentsClose CommentsPermalink

The Secretary shall provide to the appropriate committees of Congress--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4107. OVERSIGHT AND AUDITS.CommentsClose CommentsPermalink

(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).CommentsClose CommentsPermalink





(b) Office of Small Business Lending Fund Program Oversight-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(3) REPORTING-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(B) RECOMMENDATIONS- With respect to any deficiencies identified in a report under subparagraph (A), the Secretary shall either--CommentsClose CommentsPermalink





(i) take actions to address such deficiencies; orCommentsClose CommentsPermalink





(ii) certify to the appropriate committees of Congress that no action is necessary or appropriate.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(6) DEFINITIONS- For purposes of this subsection:CommentsClose CommentsPermalink





(A) OFFICE- The term ‘Office’ means the Office of Small Business Lending Fund Program Oversight established under paragraph (1).CommentsClose CommentsPermalink





(B) INSPECTOR GENERAL- The term ‘Inspector General’ means the Inspector General of the Department of the Treasury.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(d) Required Certifications-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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)).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4108. CREDIT REFORM; FUNDING.CommentsClose CommentsPermalink

(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.).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4109. TERMINATION AND CONTINUATION OF AUTHORITIES.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(b) Continuation of Other Authorities- The authorities of the Secretary under section 4104 shall not be limited by the termination date in subsection (a).CommentsClose CommentsPermalink

SEC. 4110. PRESERVATION OF AUTHORITY.CommentsClose CommentsPermalink

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

SEC. 4111. ASSURANCES.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4113. SENSE OF CONGRESS.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

Subtitle B--Other ProvisionsCommentsClose CommentsPermalink

PART I--SMALL BUSINESS EXPORT PROMOTION INITIATIVES

SEC. 4221. SHORT TITLE.CommentsClose CommentsPermalink

This part may be cited as the ‘Export Promotion Act of 2010’.CommentsClose CommentsPermalink

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

(a) Increase in Employees With Responsibility for Global Business Development and Promotion Activities-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) the cohort of such employees is increased by not less than 80 persons; andCommentsClose CommentsPermalink





(B) a substantial portion of the increased cohort is stationed outside the United States.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(b) Additional Funding for Global Business Development and Promotion Activities of the Department of Commerce-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) assist small- and medium-sized businesses in the United States; andCommentsClose CommentsPermalink





(B) the Secretary determines will create or sustain the greatest number of jobs in the United States and obtain the maximum return on investment.CommentsClose CommentsPermalink

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

(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) assist small- and medium-sized businesses in the United States; andCommentsClose CommentsPermalink





(2) the Secretary determines will create or sustain the greatest number of jobs in the United States and obtain the maximum return on investment.CommentsClose CommentsPermalink

SEC. 4224. ADDITIONAL FUNDING FOR THE EXPORTECH PROGRAM.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) assist small- and medium-sized businesses in the United States; andCommentsClose CommentsPermalink





(2) the Secretary determines will create or sustain the greatest number of jobs in the United States and obtain the maximum return on investment.CommentsClose CommentsPermalink

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

(a) 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, $15,000,000 for the Manufacturing and Services unit of the International Trade Administration--CommentsClose CommentsPermalink





(1) to establish public-private partnerships under the Market Development Cooperator Program of the International Trade Administration; andCommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) 1/3 of the total start-up costs for the project; orCommentsClose CommentsPermalink





(B) $500,000.CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(1) assist small- and medium-sized businesses in the United States; andCommentsClose CommentsPermalink





(2) the Secretary determines will create or sustain the greatest number of jobs in the United States and obtain the maximum return on investment.CommentsClose CommentsPermalink

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

(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:CommentsClose CommentsPermalink





‘(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--CommentsClose CommentsPermalink





‘(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; andCommentsClose CommentsPermalink





‘(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.’.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

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

It is the sense of the Senate that the Secretary of Commerce should enhance Federal collaboration with the States on export promotion issues by--CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink

SEC. 4228. REPORT ON TARIFF AND NONTARIFF BARRIERS.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

(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.CommentsClose CommentsPermalink





(b) Predictive Analytics Technologies Requirements- The predictive analytics technologies used by the Secretary shall--CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) identify and analyze Medicare provider networks, provider billing patterns, and beneficiary utilization patterns; andCommentsClose CommentsPermalink





(B) identify and detect any such patterns and networks that represent a high risk of fraudulent activity;CommentsClose CommentsPermalink





(2) be integrated into the existing Medicare fee-for-service program claims flow with minimal effort and maximum efficiency;CommentsClose CommentsPermalink





(3) be able to--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(B) undertake such analysis before payment is made; andCommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(c) Implementation Requirements-CommentsClose CommentsPermalink





(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--CommentsClose CommentsPermalink





(A) the initial request for proposals may include subsequent implementation years; andCommentsClose CommentsPermalink





(B) the Secretary may issue additional requests for proposals with respect to subsequent implementation years.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(d) Contractor Selection, Qualifications, and Data Access Requirements-CommentsClose CommentsPermalink





(1) SELECTION-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary shall select contractors to carry out this section using competitive procedures as provided for in the Federal Acquisition Regulation.CommentsClose CommentsPermalink





(B) NUMBER OF CONTRACTORS- The Secretary shall select at least 2 contractors to carry out this section with respect to any year.CommentsClose CommentsPermalink





(2) QUALIFICATIONS-CommentsClose CommentsPermalink





(A) IN GENERAL- The Secretary shall enter into a contract under this section with an entity only if the entity--CommentsClose CommentsPermalink





(i) has leadership and staff who--CommentsClose CommentsPermalink





(I) have the appropriate clinical knowledge of, and experience with, the payment rules and regulations under the Medicare fee-for-service program; andCommentsClose CommentsPermalink





(II) have direct management experience and proficiency utilizing predictive analytics technologies necessary to carry out the requirements under subsection (b); orCommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(e) Reporting Requirements-CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(A) A description of the implementation of the use of predictive analytics technologies during the year.CommentsClose CommentsPermalink





(B) A certification of the Inspector General of the Department of Health and Human Services that--CommentsClose CommentsPermalink





(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;CommentsClose CommentsPermalink





(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; andCommentsClose CommentsPermalink





(iii) includes recommendations regarding--CommentsClose CommentsPermalink





(I) whether the Secretary should continue to use predictive analytics technologies;CommentsClose CommentsPermalink





(II) whether the use of such technologies should be expanded in accordance with the requirements of subsection (c); andCommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(D) A review of whether the predictive analytics technologies affected access to, or the quality of, items and services furnished to Medicare beneficiaries.CommentsClose CommentsPermalink





(E) A review of what effect, if any, the use of predictive analytics technologies had on Medicare providers.CommentsClose CommentsPermalink





(F) Any other items determined appropriate by the Secretary.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





(A) An analysis of the cost-effectiveness and feasibility of expanding the use of predictive analytics technologies to Medicaid and CHIP.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(f) Independent Evaluation and Report-CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(h) Funding-CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(2) RESERVATIONS-CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(i) Definitions- In this section:CommentsClose CommentsPermalink





(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.CommentsClose CommentsPermalink





(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.).CommentsClose CommentsPermalink





(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.).CommentsClose CommentsPermalink





(4) MEDICARE BENEFICIARY- The term ‘Medicare beneficiary’ means an individual enrolled in the Medicare fee-for-service program.CommentsClose CommentsPermalink





(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.).CommentsClose CommentsPermalink





(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).CommentsClose CommentsPermalink





(7) SECRETARY- The term ‘Secretary’ means the Secretary of Health and Human Services, acting through the Administrator of the Centers for Medicare & Medicaid Services.CommentsClose CommentsPermalink





(8) STATE- The term ‘State’ means each of the 50 States and the District of Columbia.CommentsClose CommentsPermalink

TITLE V--BUDGETARY PROVISIONSCommentsClose CommentsPermalink

SEC. 5001. DETERMINATION OF BUDGETARY EFFECTS.CommentsClose CommentsPermalink

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.CommentsClose CommentsPermalink

Attest:

Secretary.

111th CONGRESS

2d Session

H.R. 5297

AMENDMENT

Speaker of the House of Representatives. CommentsClose CommentsPermalink