S.Amdt. 4401

SA 4401. Mr. BAUCUS submitted an amendment intended to be proposed by him to the bill H.R. 5297, 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; which was ordered to lie on the table; as follows:

On page 115, between lines 6 and 7, insert the following:

SEC. 702. BUSINESS AND INDUSTRY DIRECT AND GUARANTEED LOANS.

(a) Tangible Equity Requirements.--Section 310B(d) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(d)) is amended by striking paragraph (6) and inserting the following:

“(6) Equity.--In the case of direct or guaranteed loans under this section, the Secretary shall use commercial lending standards in determining any equity requirement.”.

(b) General Terms.--Section 310B(g) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1932(g)) is amended by adding at the end the following:

“(10) General terms.--

“(A) Maximum loan guarantee amount.--

“(i) In general.--Notwithstanding any other provision of this Act, during the period beginning on the date of enactment of this paragraph and ending on December 31, 2011, the Secretary shall guarantee up to 90 percent of a business and industry loan in an amount of up to $10,000,000 that is a high priority project, as determined based on published criteria of the Secretary that includes rural economic factors.

“(ii) Subsequent fiscal years.--Notwithstanding any other provision of this Act, beginning on January 1, 2012, the Secretary may guarantee up to 80 or 90 percent (as determined by the Secretary) of a business and industry loan in an amount of up to $10,000,000 that is a high priority project, as determined based on criteria described in clause (i).

“(B) Line-of-credit loans.--In guaranteeing business and industry loans, the Secretary shall guarantee line-of-credit loans in accordance with section 316(c).

“(C) Refinancing.--

“(i) In general.--A business and industry loan may be used by a small business to refinance debt in existence as of the day before the date on which the loan was made or guaranteed, if--

“(I) the project for which the debt was incurred is viable and will create or save jobs, as determined by the Secretary; and

“(II) as of the date of application for refinancing--

“(aa) the underlying loan has been current for at least 1 year; and

“(bb) the lender is providing better rates and longer terms than under the original loan.

“(ii) Subordinated owner debt.--Subordinated owner debt shall not be eligible for inclusion in debt described in clause (i).

“(D) Audit standards.--Notwithstanding any other provision of law, the Secretary--

“(i) shall not require audited financial statements consistent with generally accepted accounting principles for business and industry loans of less than $3,000,000; and

“(ii) may waive any requirement for audited financial statements consistent with generally accepted accounting principles for business and industry loans of at least $3,000,000.

“(E) Calculation of delinquency rates.--To allow accurate comparison of delinquency rates among Federal agencies, in calculating the delinquency rate for business and industry loans, the Secretary shall use the calculation method used by the Administrator of the Small Business Administration.”.

(c) Sense of Congress Relating to the Rural Microentrepreneur Assistance Program.--It is the sense of Congress that in allocating discretionary funds of the Secretary of Agriculture, the Secretary of Agriculture should give priority to the rural microentrepreneur assistance program established under section 379E of the Consolidated Farm and Rural Development Act (7 U.S.C. 2008s).