An amendment printed in House Report 111-508 to authorize the establishment of the Small Business Borrower Assistance Program which will create a fund for 7(a) loan borrowers to use if they need help paying the principal or interest payments of their small business loans.

1. Adds TITLE __--SMALL BUSINESS BORROWER ASSISTANCE PROGRAM at the end of the bill

   Adds a title

   Inserted: TITLE __--SMALL BUSINESS BORROWER ASSISTANCE PROGRAM

   Inserted: SEC. __1. SHORT TITLE.

   Inserted: This title may be cited as the "Small Business Assistance Fund Act of 2010".

   Inserted: SEC. __2. SMALL BUSINESS BORROWER ASSISTANCE PROGRAM.

   Inserted: (a) In General.--The Administrator shall carry out a program to be called the "Small Business Borrower Assistance Program" to provide payments of principal and interest on qualifying small business loans.

   Inserted: (b) Automatic Enrollment; Commitment of Funds.--

   Inserted: (1) In general.--To the extent funds are available under the Program, each borrower that receives a qualifying small business loan after the date on which the Administrator issues regulations pursuant to subsection (e) shall be automatically enrolled in the Program, unless the borrower requests otherwise, and the Administrator shall commit an amount to each borrower equal to 6 percent of the principal disbursed amount of such borrower's qualifying small business loan.

   Inserted: (2) One year window for participating in program.--Notwithstanding paragraph (1), a borrower may only be enrolled in the Program if the borrower is approved for a qualifying small business loan before the end of the 1-year period following the date on which the Administrator issues final regulations pursuant to subsection (e).

   Inserted: (3) Termination of participation in certain circumstances.--In any instance in which the Administrator determines that a borrower participating in the Program has committed fraud or made a material misrepresentation related to such participation, the Administrator may terminate such borrower's participation in the Program and ban such borrower from any future participation in the Program.

   Inserted: (c) Disbursement of Funds.--

   Inserted: (1) In general.--A borrower enrolled in the Program may submit a request for the payment of committed funds by a method to be developed by the Administrator.

   Inserted: (2) Multiple disbursements permitted.--A borrower enrolled in the Program may request multiple payments under paragraph (1), as long as the aggregate amount of such payments does not exceed the amount committed to such borrower under subsection (b).

   Show 15 more inserted paragraphsShow less

   Inserted: (d) Terms.--

   Inserted: (1) Payments only to lender or servicer.--Payments made by the Administrator under the Program shall only be made to the lender or servicer of a qualifying small business loan to be applied against outstanding principal or interest, and may not be made to the borrower.

   Inserted: (2) Program participation only permitted during first 2 years.--

   Inserted: (A) In general.--Payments made by the Administrator under the Program may only be made with respect to a payment of interest or principal due on a qualifying small business loan within the 2-year period following the date on which such loan is disbursed.

   Inserted: (B) Unexpended committed funds.--

   Inserted: (i) In general.--With respect to any funds committed to a borrower enrolled in the Program that remain unexpended at the end of the 2-year period described under subparagraph (A), such funds shall be paid to the lender or servicer of the borrower's loan and applied to the principal of such loan.

   Inserted: (ii) Exception.--In any case in which the amount of committed funds that remain unexpended is greater than the remaining principal of a borrower's loan, the amount of any excess shall be returned to the Treasury.

   Inserted: (e) Rulemaking.--Not later than 180 days after the date of the enactment of this section, the Administrator shall issue regulations necessary to carry out this section.

   Inserted: (f) Contracting With Agents.--The Administrator may contract with one or more entities as necessary to carry out the provisions of the Program. The Secretary of the Treasury is authorized to designate financial institutions, including any bank, savings association, or trust company, as financial agents of the Federal government to carry out the authorities of this section, and such institutions shall perform all such reasonable duties related to the Program as financial agents of the Federal government as the Secretary may require. In engaging any such third parties to carry out the Program, the Administrator or the Secretary shall seek to involve small businesses in the provision of the core direct services required under the engagement.

   Inserted: (g) Definitions.--For purposes of this section:

   Inserted: (1) Administrator.--The term "Administrator" means the Administrator of the Small Business Administration.

   Inserted: (2) Program.--The term "Program" means the Small Business Borrower Assistance Program established under subsection (a).

   Inserted: (3) Qualifying small business loan.--The term "qualifying small business loan" means any loan, up to $300,000, made to a small business concern and guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)), other than a loan made pursuant to section 7(a)(31) of such Act, a revolving credit line, or any other revolving loan.

   Inserted: (4) Small business concern.--The term "small business concern" has the meaning given such term under section 3 of the Small Business Act (15 U.S.C. 632).

   Inserted: (h) Authorization of Appropriations.--There is hereby authorized to be appropriated to the Administrator $300,000,000 to carry out this section.

   Original wording

   Add at the end the following new title:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed