S 2780 ISCommentsClose CommentsPermalink

To amend the Small Business Act to establish a small business intermediary lending pilot program.CommentsClose CommentsPermalink

November 17, 2009CommentsClose CommentsPermalink

Mr. LEVIN introduced the following bill; which was read twice and referred to the Committee on Small Business and EntrepreneurshipCommentsClose CommentsPermalink

To amend the Small Business Act to establish a small business intermediary lending pilot program.CommentsClose CommentsPermalink

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.

This Act may be cited as the ‘Small Business Intermediary Lending Pilot Program Act of 2009’.CommentsClose CommentsPermalink

SEC. 2. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.

(a) In General- Section 7 of the Small Business Act 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 $3,000,000 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 2010, 2011, and 2012, 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 $60,000,000.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 Intermediary Lending Pilot Program Act of 2009.’.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