DEPARTMENT OF THE
TREASURY
Treasury Inspector
General for Tax Administration
SALARIES AND
EXPENSES
For an additional
amount for necessary expenses of the Treasury
Inspector General for Tax Administration in
carrying out the Inspector General Act of 1978,
$7,000,000, to remain available until September
30, 2013, for oversight and audits of the
administration of the making work pay tax credit
and economic recovery payments under the
American Recovery and Reinvestment Act of 2009.
Community
Development Financial Institutions Fund Program
Account
For an additional
amount for `Community Development Financial
Institutions Fund Program Account',
$100,000,000, to remain available until
September 30, 2010, for qualified applicants
under the fiscal year 2009 funding round of the
Community Development Financial Institutions
Program, of which up to $8,000,000 may be for
financial assistance, technical assistance,
training and outreach programs designed to
benefit Native American, Native Hawaiian, and
Alaskan Native communities and provided
primarily through qualified community
development lender organizations with experience
and expertise in community development banking
and lending in Indian country, Native American
organizations, tribes and tribal organizations
and other suitable providers and up to
$2,000,000 may be used for administrative
expenses: Provided, That for the
purpose of the fiscal year 2009 funding round,
the following statutory provisions are hereby
waived: 12 U.S.C. 4707(e) and 12 U.S.C. 4707(d):
Provided further, That no awardee,
together with its subsidiaries and affiliates,
may be awarded more than 5 percent of the
aggregate funds available during fiscal year
2009 from the Community Development Financial
Institutions Program: Provided further,
That no later than 60 days after the date of
enactment of this Act, the Department of the
Treasury shall submit to the Committees on
Appropriations of the House of Representatives
and the Senate a detailed expenditure plan for
funds provided under this heading.
Internal Revenue
Service
HEALTH INSURANCE
TAX CREDIT ADMINISTRATION
For an additional
amount to implement the health insurance tax
credit under the TAA Health Coverage Improvement
Act of 2009, $80,000,000, to remain available
until September 30, 2010.
GENERAL SERVICES
ADMINISTRATION
Real Property
Activities
FEDERAL BUILDINGS
FUND
LIMITATIONS ON
AVAILABILITY OF REVENUE
(INCLUDING
TRANSFER OF FUNDS)
For an additional
amount to be deposited in the Federal Buildings
Fund, $5,550,000,000, to carry out the purposes
of the Fund, of which not less than $750,000,000
shall be available for Federal buildings and
United States courthouses, not less than
$300,000,000 shall be available for border
stations and land ports of entry, and not less
than $4,500,000,000 shall be available for
measures necessary to convert GSA facilities to
High-Performance Green Buildings, as defined in
section 401 of Public Law 110-140: Provided,
That not to exceed $108,000,000 of the amounts
provided under this heading may be expended for
rental of space, related to leasing of temporary
space in connection with projects funded under
this heading: Provided further, That
not to exceed $127,000,000 of the amounts
provided under this heading may be expended for
building operations, for the administrative
costs of completing projects funded under this
heading: Provided further, That not to
exceed $3,000,000 of the funds provided shall be
for on-the-job pre-apprenticeship and
apprenticeship training programs registered with
the Department of Labor, for the construction,
repair, and alteration of Federal buildings:
Provided further, That not less than
$5,000,000,000 of the funds provided under this
heading shall be obligated by September 30,
2010, and the remainder of the funds provided
under this heading shall be obligated not later
than September 30, 2011: Provided further,
That the Administrator of General Services is
authorized to initiate design, construction,
repair, alteration, and other projects through
existing authorities of the Administrator:
Provided further, That the General Services
Administration shall submit a detailed plan, by
project, regarding the use of funds made
available in this Act to the Committees on
Appropriations of the House of Representatives
and the Senate within 45 days of enactment of
this Act, and shall provide notification to the
Committees within 15 days prior to any changes
regarding the use of these funds: Provided
further, That, hereafter, the Administrator
shall report to the Committees on the obligation
of these funds on a quarterly basis beginning on
June 30, 2009: Provided further, That
of the amounts provided, $4,000,000 shall be
transferred to and merged with `Government-Wide
Policy', for the Office of Federal
High-Performance Green Buildings as authorized
in the Energy Independence and Security Act of
2007 (Public Law 110-140): Provided further,
That amounts provided under this heading that
are savings or cannot be used for the activity
for which originally obligated may be
deobligated and, notwithstanding any other
provision of law, reobligated for the purposes
identified in the plan required under this
heading not less than 15 days after notification
has been provided to the Committees on
Appropriations of the House of Representatives
and the Senate.
Energy-Efficient
Federal Motor Vehicle Fleet Procurement
For capital
expenditures and necessary expenses of acquiring
motor vehicles with higher fuel economy,
including: hybrid vehicles; electric vehicles;
and commercially-available, plug-in hybrid
vehicles, $300,000,000, to remain available
until September 30, 2011: Provided,
That none of these funds may be obligated until
the Administrator of General Services submits to
the Committees on Appropriations of the House of
Representatives and the Senate, within 90 days
after enactment of this Act, a plan for
expenditure of the funds that details the
current inventory of the Federal fleet owned by
the General Services Administration, as well as
other Federal agencies, and the strategy to
expend these funds to replace a portion of the
Federal fleet with the goal of substantially
increasing energy efficiency over the current
status, including increasing fuel efficiency and
reducing emissions: Provided further,
That, hereafter, the Administrator shall report
to the Committees on the obligation of these
funds on a quarterly basis beginning on
September 30, 2009.
Office of
Inspector General
For an additional
amount for the Office of the Inspector General,
to remain available until September 30, 2013,
for oversight and audit of programs, grants, and
projects funded under this title, $7,000,000.
RECOVERY ACT
ACCOUNTABILITY AND TRANSPARENCY BOARD
For necessary
expenses of the Recovery Act Accountability and
Transparency Board to carry out the provisions
of title XV of this Act, $84,000,000, to remain
available until September 30, 2011.
SMALL BUSINESS
ADMINISTRATION
Salaries and
Expenses
For an additional
amount, to remain available until September 30,
2010, $69,000,000, of which $24,000,000 is for
marketing, management, and technical assistance
under section 7(m) of the Small Business Act (15
U.S.C. 636(m)(4)) by intermediaries that make
microloans under the microloan program, and of
which $20,000,000 is for improving,
streamlining, and automating information
technology systems related to lender processes
and lender oversight: Provided, That no
later than 60 days after the date of enactment
of this Act, the Small Business Administration
shall submit to the Committees on Appropriations
of the House of Representatives and the Senate a
detailed expenditure plan for funds provided
under the heading `Small Business
Administration' in this Act.
Office of
Inspector General
For an additional
amount for the Office of Inspector General in
carrying out the provisions of the Inspector
General Act of 1978, $10,000,000, to remain
available until September 30, 2013, for
oversight and audit of programs, grants, and
projects funded under this title.
Surety Bond
Guarantees Revolving Fund
For additional
capital for the Surety Bond Guarantees Revolving
Fund, authorized by the Small Business
Investment Act of 1958, $15,000,000, to remain
available until expended.
Business Loans
Program Account
For an additional
amount for the cost of direct loans, $6,000,000,
to remain available until September 30, 2010,
and for an additional amount for the cost of
guaranteed loans, $630,000,000, to remain
available until September 30, 2010:
Provided, That of the amount for the cost
of guaranteed loans, $375,000,000 shall be for
reimbursements, loan subsidies and loan
modifications for loans to small business
concerns authorized in section 501 of this
title; and $255,000,000 shall be for loan
subsidies and loan modifications for loans to
small business concerns authorized in section
506 of this title: Provided further,
That such costs, including the cost of modifying
such loans, shall be as defined in section 502
of the Congressional Budget Act of 1974.
Administrative
Provisions--Small Business Administration
SEC. 501. FEE
REDUCTIONS. (a) ADMINISTRATIVE PROVISIONS SMALL
BUSINESS ADMINISTRATION- Until September 30,
2010, and to the extent that the cost of such
elimination or reduction of fees is offset by
appropriations, with respect to each loan
guaranteed under section 7(a) of the Small
Business Act (15 U.S.C. 636(a)) and section 502
of this title, for which the application is
approved on or after the date of enactment of
this Act, the Administrator shall--
(1) in lieu of
the fee otherwise applicable under section
7(a)(23)(A) of the Small Business Act (15
U.S.C. 636(a)(23)(A)), collect no fee or
reduce fees to the maximum extent possible;
and
(2) in lieu of
the fee otherwise applicable under section
7(a)(18)(A) of the Small Business Act (15
U.S.C. 636(a)(18)(A)), collect no fee or
reduce fees to the maximum extent possible.
(b) Temporary Fee
Elimination for the 504 Loan Program-
(1) IN
GENERAL- Until September 30, 2010, and to
the extent the cost of such elimination in
fees is offset by appropriations, with
respect to each project or loan guaranteed
by the Administrator pursuant to title V of
the Small Business Investment Act of 1958
(15 U.S.C. 695 et seq.) for which an
application is approved or pending approval
on or after the date of enactment of this
Act--
(A) the
Administrator shall, in lieu of the fee
otherwise applicable under section
503(d)(2) of the Small Business
Investment Act of 1958 (15 U.S.C.
697(d)(2)), collect no fee;
(B) a
development company shall, in lieu of
the processing fee under section
120.971(a)(1) of title 13, Code of
Federal Regulations (relating to fees
paid by borrowers), or any successor
thereto, collect no fee.
(2)
REIMBURSEMENT FOR WAIVED FEES-
(A) IN
GENERAL- To the extent that the cost of
such payments is offset by
appropriations, the Administrator shall
reimburse each development company that
does not collect a processing fee
pursuant to paragraph (1)(B).
(B)
AMOUNT- The payment to a development
company under subparagraph (A) shall be
in an amount equal to 1.5 percent of the
net debenture proceeds for which the
development company does not collect a
processing fee pursuant to paragraph
(1)(B).
(c) APPLICATION OF
FEE ELIMINATIONS-
(1) To the
extent that amounts are made available to
the Administrator for the purpose of fee
eliminations or reductions under subsection
(a), the Administrator shall--
(A) first
use any amounts provided to eliminate or
reduce fees paid by small business
borrowers under clauses (i) through
(iii) of paragraph (18)(A), to the
maximum extent possible; and
(B) then
use any amounts provided to eliminate or
reduce fees under paragraph (23)(A) paid
by small business lenders with assets
less than $1,000,000,000 as of the date
of enactment; and
(C) then
use any remaining amounts appropriated
under this title to reduce fees paid by
small business lenders other than those
with assets less than $1,000,000,000.
(2) The
Administrator shall eliminate fees under
subsections (a) and (b) until the amount
provided for such purposes, as applicable,
under the heading `Business Loans Program
Account' under the heading `Small Business
Administration' under this Act are expended.
SEC. 502. ECONOMIC
STIMULUS LENDING PROGRAM FOR SMALL BUSINESSES.
(a) PURPOSE- The purpose of this section is to
permit the Small Business Administration to
guarantee up to 90 percent of qualifying small
business loans made by eligible lenders.
(b) DEFINITIONS-
For purposes of this section:
(1) The term
`Administrator' means the Administrator of
the Small Business Administration.
(2) The term
`qualifying small business loan' means any
loan to a small business concern pursuant to
section 7(a) of the Small Business Act (15
U.S.C. 636) or title V of the Small Business
Investment Act of 1958 (15 U.S.C. 695 and
following) except for such loans made under
section 7(a)(31).
(3) The term
`small business concern' has the same
meaning as provided by section 3 of the
Small Business Act (15 U.S.C. 632).
(1) ALIENS
UNLAWFULLY PRESENT IN THE UNITED STATES- A
loan guarantee may not be made under this
section for a loan made to a concern if an
individual who is an alien unlawfully
present in the United States--
(A) has an
ownership interest in that concern; or
(B) has an
ownership interest in another concern
that itself has an ownership interest in
that concern.
(2) FIRMS IN
VIOLATION OF IMMIGRATION LAWS- No loan
guarantee may be made under this section for
a loan to any entity found, based on a
determination by the Secretary of Homeland
Security or the Attorney General to have
engaged in a pattern or practice of hiring,
recruiting or referring for a fee, for
employment in the United States an alien
knowing the person is an unauthorized alien.
(d) CRIMINAL
BACKGROUND CHECKS- Prior to the approval of any
loan guarantee under this section, the
Administrator may verify the applicant's
criminal background, or lack thereof, through
the best available means, including, if
possible, use of the National Crime Information
Center computer system at the Federal Bureau of
Investigation.
(e) APPLICATION OF
OTHER LAW- Nothing in this section shall be
construed to exempt any activity of the
Administrator under this section from the
Federal Credit Reform Act of 1990 (title V of
the Congressional Budget and Impoundment Control
Act of 1974; 2 U.S.C. 661 and following).
(f) SUNSET- Loan
guarantees may not be issued under this section
after the date 12 months after the date of
enactment of this Act.
(g) SMALL BUSINESS
ACT PROVISIONS- The provisions of the Small
Business Act applicable to loan guarantees under
section 7 of that Act and regulations
promulgated thereunder as of the date of
enactment of this Act shall apply to loan
guarantees under this section except as
otherwise provided in this section.
(h) AUTHORIZATION-
There are authorized to be appropriated such
sums as may be necessary to carry out this
section.
SEC. 503.
ESTABLISHMENT OF SBA SECONDARY MARKET GUARANTEE
AUTHORITY. (a) PURPOSE- The purpose of this
section is to provide the Administrator with the
authority to establish the SBA Secondary Market
Guarantee Authority within the SBA to provide a
Federal guarantee for pools of first lien 504
loans that are to be sold to third-party
investors.
(b) DEFINITIONS-
For purposes of this section:
(1) The term
`Administrator' means the Administrator of
the Small Business Administration.
(2) The term
`first lien position 504 loan' means the
first mortgage position, non-federally
guaranteed loans made by private sector
lenders made under title V of the Small
Business Investment Act.
(c) ESTABLISHMENT
OF AUTHORITY-
(A) The
Administrator shall establish a
Secondary Market Guarantee Authority
within the Small Business
Administration.
(B) The
Administrator shall appoint a Director
of the Authority who shall report to the
Administrator.
(C) The
Administrator is authorized to hire such
personnel as are necessary to operate
the Authority and may contract such
operations of the Authority as necessary
to qualified third party companies or
individuals.
(D) The
Administrator is authorized to contract
with private sector fiduciary and custom
dial agents as necessary to operate the
Authority.
(A) The
Administrator shall establish, by rule,
a process in which private sector
entities may apply to the Administration
for a Federal guarantee on pools of
first lien position 504 loans that are
to be sold to third-party investors.
(B) The
Administrator is authorized to contract
with private sector fiduciary and custom
dial agents as necessary to operate the
Authority.
(A) The
Administrator shall establish, by rule,
a process in which private sector
entities may apply to the SBA for a
Federal guarantee on pools of first lien
position 504 loans that are to be sold
to third-party investors.
(B) The
rule under this section shall provide
for a process for the Administrator to
consider and make decisions regarding
whether to extend a Federal guarantee
referred to in clause (i). Such rule
shall also provide that:
(i)
The seller of the pools purchasing a
guarantee under this section retains
not less than 5 percent of the
dollar amount of the pools to be
sold to third-party investors.
(ii)
The Administrator shall charge fees,
upfront or annual, at a specified
percentage of the loan amount that
is at such a rate that the cost of
the program under the Federal Credit
Reform Act of 1990 (title V of the
Congressional Budget and Impoundment
Control Act of 1974; 2 U.S.C. 661)
shall be equal to zero.
(iii)
The Administrator may guarantee not
more than $3,000,000,000 of pools
under this authority.
(C) The
Administrator shall establish documents,
legal covenants, and other required
documentation to protect the interests
of the United States.
(D) The
Administrator shall establish a process
to receive and disburse funds to
entities under the authority established
in this section.
(1) The
Administrator shall ensure that entities
purchasing a guarantee under this section
are using such guarantee for the purpose of
selling 504 first lien position pools to
third-party investors.
(2) If the
Administrator finds that any such guarantee
was used for a purpose other than that
specified in paragraph (1), the
Administrator shall--
(A)
prohibit the purchaser of the guarantee
or its affiliates (within the meaning of
the regulations under 13 CFR 121.103)
from using the authority of this section
in the future; and
(B) take
any other actions the Administrator, in
consultation with the Attorney General
of the United States deems appropriate.
(e) OVERSIGHT- The
Administrator shall submit a report to Congress
not later than the third business day of each
month setting forth each of the following:
(1) The
aggregate amount of guarantees extended
under this section during the preceding
month.
(2) The
aggregate amount of guarantees outstanding.
(3) Defaults
and payments on defaults made under this
section.
(4) The
identity of each purchaser of a guarantee
found by the Administrator to have misused
guarantees under this section.
(5) Any other
information the Administrator deems
necessary to fully inform Congress of undue
risk to the United States associated with
the issuance of guarantees under this
section.
(f) DURATION OF
PROGRAM- The authority of this section shall
terminate on the date 2 years after the date of
enactment of this section.
(g) FUNDING- Such
sums as necessary are authorized to be
appropriated to carry out the provisions of this
section.
(h) BUDGET
TREATMENT- Nothing in this section shall be
construed to exempt any activity of the
Administrator under this section from the
Federal Credit Reform Act of 1990 (title V of
the Congressional Budget and Impoundment Control
Act of 1974; 2 U.S.C. 661 and following).
(i) EMERGENCY
RULEMAKING AUTHORITY- The Administrator shall
issue regulations under this section within 15
days after the date of enactment of this
section. The notice requirements of section
553(b) of title 5, United States Code shall not
apply to the promulgation of such regulations.
SEC. 504. STIMULUS
FOR COMMUNITY DEVELOPMENT LENDING. (a) LOW
INTEREST REFINANCING UNDER THE LOCAL DEVELOPMENT
BUSINESS LOAN PROGRAM- Section 502 of the Small
Business Investment Act of 1958 (15 U.S.C. 696)
is amended by adding at the end the following:
`(7)
PERMISSIBLE DEBT REFINANCING-
`(A) IN
GENERAL- Any financing approved under
this title may include a limited amount
of debt refinancing.
`(B)
EXPANSIONS- If the project involves
expansion of a small business concern,
any amount of existing indebtedness that
does not exceed 50 percent of the
project cost of the expansion may be
refinanced and added to the expansion
cost, if--
`(i)
the proceeds of the indebtedness
were used to acquire land, including
a building situated thereon, to
construct a building thereon, or to
purchase equipment;
`(ii)
the existing indebtedness is
collateralized by fixed assets;
`(iii)
the existing indebtedness was
incurred for the benefit of the
small business concern;
`(iv)
the financing under this title will
be used only for refinancing
existing indebtedness or costs
relating to the project financed
under this title;
`(v)
the financing under this title will
provide a substantial benefit to the
borrower when prepayment penalties,
financing fees, and other financing
costs are accounted for;
`(vi)
the borrower has been current on all
payments due on the existing debt
for not less than 1 year preceding
the date of refinancing; and
`(vii)
the financing under section 504 will
provide better terms or rate of
interest than the existing
indebtedness at the time of
refinancing.'.
(b) JOB CREATION
GOALS- Section 501(e)(1) and section 501(e)(2)
of the Small Business Investment Act (15 U.S.C.
695) are each amended by striking `$50,000' and
inserting `$65,000'.
SEC. 505.
INCREASING SMALL BUSINESS INVESTMENT. (a)
SIMPLIFIED MAXIMUM LEVERAGE LIMITS- Section
303(b) of the Small Business Investment Act of
1958 (15 U.S.C. 683(b)) is amended as follows:
(1) By
striking so much of paragraph (2) as
precedes subparagraphs (C) and (D) and
inserting the following:
`(A) IN
GENERAL- The maximum amount of
outstanding leverage made available to
any one company licensed under section
301(c) of this Act may not exceed the
lesser of--
`(i)
300 percent of such company's
private capital; or
`(B)
MULTIPLE LICENSES UNDER COMMON CONTROL-
The maximum amount of outstanding
leverage made available to two or more
companies licensed under section 301(c)
of this Act that are commonly controlled
(as determined by the Administrator) and
not under capital impairment may not
exceed $225,000,000.';
(2) By
amending paragraph (2)(C) by inserting `(i)'
before `In calculating' and adding the
following at the end thereof:
`(ii)
The maximum amount of outstanding
leverage made available to--
`(I) any 1 company described in
clause (iii) may not exceed the
lesser of 300 percent of private
capital of the company, or
$175,000,000; and
`(II) 2 or more companies
described in clause (iii) that
are under common control (as
determined by the Administrator)
may not exceed $250,000,000.
`(iii)
A company described in this clause
is a company licensed under section
301(c) in the first fiscal year
after the date of enactment of this
clause or any fiscal year thereafter
that certifies in writing that not
less than 50 percent of the dollar
amount of investments of that
company shall be made in companies
that are located in a low-income
geographic area (as that term is
defined in section 351).'.
(3) By
striking paragraph (4).
(b) SIMPLIFIED
AGGREGATE INVESTMENT LIMITATIONS- Section 306(a)
of the Small Business Investment Act of 1958 (15
U.S.C. 686(a)) is amended to read as follows:
`(a) PERCENTAGE
LIMITATION ON PRIVATE CAPITAL- If any small
business investment company has obtained
financing from the Administrator and such
financing remains outstanding, the aggregate
amount of securities acquired and for which
commitments may be issued by such company under
the provisions of this title for any single
enterprise shall not, without the approval of
the Administrator, exceed 10 percent of the sum
of--
`(1) the
private capital of such company; and
`(2) the total
amount of leverage projected by the company
in the company's business plan that was
approved by the Administrator at the time of
the grant of the company's license.'.
(c) INVESTMENTS IN
SMALLER ENTERPRISES- Section 303(d) of the Small
Business Investment Act of 1958 (15 U.S.C.
683(d)) is amended to read as follows:
`(d) INVESTMENTS
IN SMALLER ENTERPRISES- The Administrator shall
require each licensee, as a condition of
approval of an application for leverage, to
certify in writing that not less than 25 percent
of the aggregate dollar amount of financings of
that licensee shall be provided to smaller
enterprises.'.
SEC. 506. BUSINESS
STABILIZATION PROGRAM. (a) IN GENERAL- Subject
to the availability of appropriations, the
Administrator of the Small Business
Administration shall carry out a program to
provide loans on a deferred basis to viable (as
such term is determined pursuant to regulation
by the Administrator of the Small Business
Administration) small business concerns that
have a qualifying small business loan and are
experiencing immediate financial hardship.
(b) ELIGIBLE
BORROWER- A small business concern as defined
under section 3 of the Small Business Act (15
U.S.C. 632).
(c) QUALIFYING
SMALL BUSINESS LOAN- A loan made to a small
business concern that meets the eligibility
standards in section 7(a) of the Small Business
Act (15 U.S.C. 636(a)) but shall not include
loans guarantees (or loan guarantee commitments
made) by the Administrator prior to the date of
enactment of this Act.
(d) LOAN SIZE-
Loans guaranteed under this section may not
exceed $35,000.
(e) PURPOSE- Loans
guaranteed under this program shall be used to
make periodic payment of principal and interest,
either in full or in part, on an existing
qualifying small business loan for a period of
time not to exceed 6 months.
(f) LOAN TERMS-
Loans made under this section shall:
(1) carry a
100 percent guaranty; and
(2) have
interest fully subsidized for the period of
repayment.
(g) REPAYMENT-
Repayment for loans made under this section
shall--
(1) be
amortized over a period of time not to
exceed 5 years; and
(2) not begin
until 12 months after the final disbursement
of funds is made.
(h) COLLATERAL-
The Administrator of the Small Business
Administration may accept any available
collateral, including subordinated liens, to
secure loans made under this section.
(i) FEES- The
Administrator of the Small Business
Administration is prohibited from charging any
processing fees, origination fees, application
fees, points, brokerage fees, bonus points,
prepayment penalties, and other fees that could
be charged to a loan applicant for loans under
this section.
(j) SUNSET- The
Administrator of the Small Business
Administration shall not issue loan guarantees
under this section after September 30, 2010.
(k) EMERGENCY
RULEMAKING AUTHORITY- The Administrator of the
Small Business Administration shall issue
regulations under this section within 15 days
after the date of enactment of this section. The
notice requirements of section 553(b) of title
5, United States Code shall not apply to the
promulgation of such regulations.
SEC. 507. GAO
REPORT.
(a) REPORT- Not
later than 60 days after the enactment of this
Act, the Comptroller General of the United
States shall report to the Congress on the
actions of the Administrator in implementing the
authorities established in the administrative
provisions of this title.
(b) INCLUDED ITEM-
The report under this section shall include a
summary of the activity of the Administrator
under this title and an analysis of whether he
is accomplishing the purpose of increasing
liquidity in the secondary market for Small
Business Administration loans.
SEC. 508. SURETY
BONDS.
(a) MAXIMUM BOND
AMOUNT- Section 411(a)(1) of the Small Business
Investment Act of 1958 (15 U.S.C. 694b(a)(1)) is
amended--
(1) by
inserting `(A)' after `(1)';
(2) by
striking `$2,000,000' and inserting
`$5,000,000'; and
(3) by adding
at the end the following:
`(B) The
Administrator may guarantee a surety under
subparagraph (A) for a total work order or
contract amount that does not exceed
$10,000,000, if a contracting officer of a
Federal agency certifies that such a guarantee
is necessary.'.
(b) Denial of
Liability--
Section 411 of
the Small Business Investment Act of 1958
(15 U.S.C. 694b) is amended--
(1) by
striking subsection (e) and inserting the
following:
`(e) REIMBURSEMENT
OF SURETY; CONDITIONS-
Pursuant to any
such guarantee or agreement, the Administration
shall reimburse the surety, as provided in
subsection (c) of this section, except that the
Administration shall be relieved of liability
(in whole or in part within the discretion of
the Administration) if--
(1) the surety
obtained such guarantee or agreement, or
applied for such reinbursement, by fraud or
material misrepresentation,
(2) the total
contract amount at the time of execution of
the bond or bonds exceeds $5,000,000,
(3) the surety
has breached a material term or condition of
such guarantee agreement, or
(4) the surety
has substantially violated the regulations
promulgated by the Administration pursuant
to subsection (d).'
(2) by adding at
the end the following:
`(k) For bonds
made or executed with the prior approval of the
Administration, the Administration shall not
deny liability to a surety based upon material
information that was provided as part of the
guaranty application.'.
(c) SIZE
STANDARDS- Section 410 of the Small Business
Investment Act of 1958 (15 U.S.C. 694a) is
amended by adding at the end the following:
`(9)
Notwithstanding any other provision of law
or any rule, regulation, or order of the
Administration, for purposes of sections
410, 411, and 412 the term `small business
concern' means a business concern that meets
the size standard for the primary industry
in which such business concern, and the
affiliates of such business concern, is
engaged, as determined by the Administrator
in accordance with the North American
Industry Classification System.'.
(d) STUDY--The
Administrator of the Small Business
Administration shall conduct a study of the
current funding structure of the surety bond
program carried out under part B (15 U.S.C. 694a
et seq.) of title IV of the Small Business
Investment Act of 1958. The study shall
include--
(1) an
assessment of whether the program's current
funding framework and program fees are
inhibiting the program's growth;
(2) an
assessment of whether surety companies and
small business concerns could benefit from
an alternative funding structure; and
(e) REPORT--Not
later than 180 days after the date of enactment
of this Act, the Administrator shall submit to
Congress a report on the results of the study
required under subsection (d).
(f) SUNSET- The
amendments made by this section shall remain in
effect until September 30, 2010.
SEC. 509.
ESTABLISHMENT OF SBA SECONDARY MARKET LENDING
AUTHORITY.
(a) PURPOSE- The
purpose of this section is to provide the Small
Business Administration with the authority to
establish a Secondary Market Lending Authority
within the SBA to make loans to the systemically
important SBA secondary market broker-dealers
who operate the SBA secondary market.
(b) DEFINITIONS-
For purposes of this section:
(1) The term
`Administrator' means the Administrator of
the SBA.
(2) The term
`SBA' means the Small Business
Administration.
(3) The terms
`Secondary Market Lending Authority' and
`Authority' mean the office establishedunder
subsection (c).
(4) The term
`SBA secondary market' meansthe market for
the purchase and sale of loans originated,
underwritten, and closed under the Small
Business Act.
(5) The term
`Systemically Important Secondary Market
Broker-Dealers' mean those entities
designated under subsection (c)(1) as vital
to the continued operation of the SBA
secondary market by reason of their purchase
and sale of the government guaranteed
portion of loans, or pools of loans,
originated, underwritten, and closed under
the Small Business Act.
(c)
RESPONSIBILITIES, AUTHORITIES, ORGANIZATION, AND
LIMITATIONS-
(1)
DESIGNATION OF SYSTEMICALLY IMPORTANT SBA
SECONDARY MARKET BROKER-DEALERS- The
Administrator shall establish a process to
designate, in consultation with the Board of
Governors of the Federal Reserve and the
Secretary of the Treasury, Systemically
Important Secondary Market Broker-Dealers.
(2)
ESTABLISHMENT OF SBA SECONDARY MARKET
LENDING AUTHORITY-
(i)
The Administrator shall establish
within the SBA an office to provide
loans to Systemically Important
Secondary Market Broker-dealers to
be used for the purpose of financing
the inventory of the government
guaranteed portion of loans,
originated, underwritten, and closed
under the Small Business Act or
pools of such loans.
(ii)
The Administrator shall appoint a
Director of the Authority who shall
report to the Administrator.
(iii)
The Administrator is authorized to
hire such personnel as are necessary
to operate the Authority.
(iv)
The Administrator may contract such
Authority operations as he
determines necessary to qualified
third-party companies or
individuals.
(v)
The Administrator is authorized to
contract with private sector
fiduciary and custodial agents as
necessary to operate the Authority.
(i)
The Administrator shall establish by
rule a process under which
Systemically Important SBA Secondary
Market Broker-Dealers designated
under paragraph (1) may apply to the
Administrator for loans under this
section.
(ii)
The rule under clause (i) shall
provide a process for the
Administrator to consider and make
decisions regarding whether or not
to extend a loan applied for under
this section. Such rule shall
include provisions to assure each of
the following:
(I) That loans made under this
section are for the sole purpose
of financing the inventory of
the govern ment guaranteed
portion of loans, originated,
underwritten, and closed under
the Small Business Act or pools
of such loans.
(II) That loans made under this
section are fully collateralized
to the satisfaction of the
Administrator.
(III) That there is no limit to
the frequency in which a
borrower may borrow under this
section unless the Administrator
determines that doing so would
create an undue risk of loss to
the agency or the United States.
(IV) That there is no limit on
the size of a loan, subject to
the discretion of the
Administrator.
(iii)
Interest on loans under this section
shall not exceed the Federal Funds
target rate as established by the
Federal Reserve Board of Governors
plus 25 basis points.
(iv)
The rule under this section shall
provide for such loan documents,
legal covenants, collateral
requirements and other required
documentation as necessary to
protect the interests of the agency,
the United States, and the taxpayer.
(v)
The Administrator shall establish
custodial accounts to safeguard any
collateral pledged to the SBA in
connection with a loan under this
section.
(vi)
The Administrator shall establish a
process to disburse and receive
funds to and from borrowers under
this section.
(C) LIMITATIONS ON
USE OF LOAN PROCEEDS BY SYSTEMICALLY IMPORTANT
SECONDARY MARKET BROKER-DEALERS- The
Administrator shall ensure that borrowers under
this section are using funds provided under this
section only for the purpose specified in
subparagraph (B)(ii)(I). If the Administrator
finds that such funds were used for any other
purpose, the Administrator shall--
(i) require
immediate repayment of outstanding loans;
(ii) prohibit
the borrower, its affiliates, or any future
corporate manifestation of the borrower from
using the Authority; and
(iii) take any
other actions the Administrator, in
consultation with the Attorney General of
the United States, deemsappropriate.
(d) REPORT TO
CONGRESS- The Administrator shall submit a
report to Congress not later than the third
business day of each month containing a
statement of each of the following:
(1) The
aggregate loan amounts extended during the
preceding month under this section.
(2) The
aggregate loan amounts repaid under this
section during the proceeding month.
(3) The
aggregate loan amount outstanding under this
section.
(4) The
aggregate value of assets held as collateral
under this section;
(5) The amount
of any defaults or delinquencies on loans
made under this section.
(6) The
identity of any borrower found by the
Administrator to misuse funds made available
under this section.
(7) Any other
information the Administrator deems
necessary to fully inform Congress of undue
risk of financial loss to the United States
in connection with loans made under this
section.
(e) DURATION- The
authority of this section shall remain in effect
for a period of 2 years after the date of
enactment of this section.
(f) FEES- The
Administrator shall charge fees, up front,
annual, or both at a specified percentage of the
loan amount that is at such a rate that the cost
of the program under the Federal Credit Reform
Act of 1990 ((title V of the Congressional
Budget and Impoundment Control Act of 1974; 2
U.S.C. 661) shall be equal to zero.
(h) BUDGET
TREATMENT- Nothing in this section shall be
construed to exempt any activity of the
Administrator under this section from the
Federal Credit Reform Act of 1990 (title V of
the Congressional Budget and Im poundment
Control Act of 1974; 2 U.S.C. 661 and
following).
(i) EMERGENCY
RULEMAKING AUTHORITY- The Administrator shall
promulgate regulations under this section within
30 days after the date of enactment of enactment
of this section. In promulgating these
regulations,the Administrator the notice
requirements of section 553(b) of title 5 of the
United States Code shall not apply.
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