S.Amdt. 4450

1. Adds SEC. 1348. SMALL BUSINESS TURNAROUND LOAN PROGRAM on page 113, between lines 17 and 18

   Adds a section

   Inserted: SEC. 1348. SMALL BUSINESS TURNAROUND LOAN PROGRAM.

   Inserted: Section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as amended by section 1206 of this Act, is amended by adding at the end the following

   Inserted: "(36) Small business turnaround loan program.--

   Inserted: "(A) Definitions.--In this paragraph--

   Inserted: "(i) the term 'program' means the Turnaround Loan Program established under subparagraph (B);

   Inserted: "(ii) the term 'turnaround small business concern' means a small business concern that--

   Inserted: "(I) is economically distressed, as determined by the Administrator;

   Inserted: "(II) has a history of a positive net income;

   Inserted: "(III) has had recent success in the business of the small business concern; and

   Inserted: "(IV) has the potential to increase the business of the small business concern; and

   Inserted: "(iii) the term 'Secretary' means the Secretary of the Treasury.

   Inserted: "(B) Establishment.--Not later than 120 days after the date of enactment of this paragraph, the Administrator shall establish a Turnaround Loan Program under which the Administrator may guarantee the timely payment of loans made to turnaround small business concerns to address cash flow difficulties.

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   Inserted: "(C) Standards for small business turnaround loans.--

   Inserted: "(i) In general.--In consultation with the Secretary, the Administrator shall issue rules establishing qualifying criteria for loans guaranteed under the program.

   Inserted: "(ii) Specific borrower requirements.--The rules issued under clause (i) shall require a turnaround small business concern applying for a loan guaranteed under the program to submit--

   Inserted: "(I) a business plan that includes--

   Inserted: "(aa) data on the performance before the date of the application, and projections, of the turnaround small business concern;

   Inserted: "(bb) a detailed description of the factors that led to the economic difficulties of the turnaround small business concern;

   Inserted: "(cc) a discussion of how the turnaround small business concern responded to the economic difficulties; and

   Inserted: "(dd) a detailed description of the projected outlook for the turnaround small business concern; and

   Inserted: "(II) subject to clause (iii), documentation establishing--

   Inserted: "(aa) a history of a positive net income;

   Inserted: "(bb) recent success of the business of the turnaround small business concern, which shall include documentation that the turnaround small business concern has had increasing revenue for not less than the 2 consecutive quarters before the date of the application; and

   Inserted: "(cc) that the turnaround small business concern has had repeated and substantial difficulty in obtaining credit elsewhere.

   Inserted: "(iii) Waiver authority.--The Administrator may waive any requirement under clause (ii)(II) if the Administrator determines that the waiver is supported by mitigating factors included in the business plan submitted by a turnaround small business concern under clause (ii)(I).

   Inserted: "(iv) Minimize administrative burden.--The rules issued under clause (i) shall, to the extent practicable, minimize paperwork, minimize administrative burden on lenders and applicants, and maximize clarity in guidelines.

   Inserted: "(D) Maximum loan limits for small business turnaround loans.--Notwithstanding paragraph (3)(A), a loan may not be guaranteed under this paragraph if the total amount outstanding and committed (by participation or otherwise) to the borrower from the business loan and investment fund established by this Act would exceed $5,000,000.

   Inserted: "(E) Guarantees, fees, and cost repayment.--

   Inserted: "(i) Guarantees for small business turnaround loans.--The Administrator may--

   Inserted: "(I) except as provided in subclause (II), guarantee not more than 95 percent of a loan under the program; and

   Inserted: "(II) guarantee not more than 100 percent of a loan under the program if a loan is also made to the applicant under a State other credit support program under section 3206 of the Small Business Jobs Act of 2010.

   Inserted: "(ii) Fees.--With respect to each loan guaranteed under the program, the Administrator shall collect no fee.

   Inserted: "(iii) Repayment for underwriting costs.--If a turnaround small business concern makes timely payment of a loan guaranteed under the program for all of the 3-year period beginning on the date of the loan, the Administrator shall make a payment to the lender in an amount equal to 1 percent of the amount of the loan, for the cost of underwriting the loan.

   Inserted: "(F) Sunset.--The Administrator may not guarantee a loan under the program after the date that is 22 months after the date of enactment of this paragraph.

   Inserted: "(G) Funding.--

   Inserted: "(i) Small business lending fund.--The Secretary may transfer from the Small Business Lending Fund established under section 3103 of the Small Business Jobs Act of 2010 to the Administrator such sums as are necessary to carry out this paragraph, which shall be available to the Administrator, without further appropriation or fiscal year limitation.

   Inserted: "(ii) Authorization.--There are authorized to be appropriated to the Administrator such sums as are necessary to carry out this paragraph.".

   Original wording

   On page 113, between lines 17 and 18, insert the following:

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As printed