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S 2869 IS

111th CONGRESS

1stRSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

S. 2869CommentsClose CommentsPermalink

To increase loan limits for small business concerns, to provide for low interest refinancing for small business concerns, and for other purposes.CommentsClose CommentsPermalink

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

December 10, 2009CommentsClose CommentsPermalink

Ms. LANDRIEU (for herself and, Ms. SNOWE, Mr. KERRY, Mr. LIEBERMAN, Mrs. SHAHEEN, Mr. DORGAN, Mr. CASEY, Mr. PRYOR, Mr. BINGAMAN, Mr. BURRIS, Ms. KLOBUCHAR, Mr. LEVIN, Mrs. BOXER, Ms. STABENOW, Mr. BAYH, Mr. ISAKSON, Mrs. FEINSTEIN, Mr. CARDIN, Mr. JOHNSON, Mrs. LINCOLN, Mrs. MURRAY, Mr. JOHANNS, Mr. BENNET, Mrs. MCCASKILL, Mr. MERKLEY, Mr. SPECTER, Mr. UDALL of New Mexico, and Ms. CANTWELL) introduced the following bill; which was read twice and referred to the Committee on Small Business and EntrepreneurshipCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To increase loan limits for small business concerns, to provide for low interest refinancing for small business concerns, and for other purposes.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 Job Creation and Access to Capital Act of 2009’.CommentsClose CommentsPermalink

TITLE I--NEXT STEPS FOR MAIN STREET CREDIT AVAILABILITYCommentsClose CommentsPermalink

SEC. 101. SECTION 7(a) BUSINESS LOANS.

(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. 102. MAXIMUM LOAN AMOUNTS UNDER 504 PROGRAM.

Section 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended--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. 103. MAXIMUM LOAN LIMITS UNDER MICROLOAN PROGRAM.

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. 104. TEMPORARY FEE REDUCTIONS.

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

SEC. 105. NEW MARKETS VENTURE CAPITAL COMPANY INVESTMENT LIMITATIONS.

Section 355 of the Small Business Investment Act of 1958 (15 U.S.C. 689d) is amended by adding at the end the following: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. 106. ALTERNATIVE SIZE STANDARDS.

Section 3(a) of the Small Business Act (15 U.S.C. 632(a)) is amended by adding at the end the following: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. 107. SALE OF 7(a) LOANS IN SECONDARY MARKET.

Section 5(g) of the Small Business Act (15 U.S.C. 634(g)) is amended by adding at the end the following: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. 108. ONLINE LENDING PLATFORM.

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

TITLE II--SMALL BUSINESS ACCESS TO CAPITALCommentsClose CommentsPermalink

SEC. 202. LOW-INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT BUSINESS LOAN PROGRAM.

(a) Refinancing- Section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the following: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 80 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 $4,000,000,000 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