S.Amdt. 4488

SA 4488. Mrs. BOXER submitted an amendment intended to be proposed to amendment SA 4402 proposed by Mr. Reid (for Mr. Baucus (for himself, Ms. Landrieu, and Mr. Reid)) 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 40, between lines 3 and 4, insert the following:

(c) Working Capital Express Program.--

(1) Program established.--

(A) Working capital express program.--Section 7(a)(31) of the Small Business Act (15 U.S.C. 636(a)(31)) is amended by adding at the end the following:

“(G) Working capital express program in response to economic crisis.--

“(i) Loan guarantees.--The Administrator may guarantee loans under the Express Loan Program made by lenders designated in accordance with clause (iii)(I) to small business concerns that have been in business for not less than 2 years before the date on which the small business concern submits an application for a loan under this subparagraph.

“(ii) Loan terms.--

“(I) Minimum amount.--The Administrator may guarantee a loan under this subparagraph of not less than $100,000.

“(II) Guarantee rate.--Notwithstanding subparagraph (A)(iii), the guarantee rate for a loan under this subparagraph shall be 75 percent.

“(iii) Program safeguards.--

“(I) Eligibility.--The Administrator shall, by rule, establish criteria for the designation of lenders that are eligible to make a loan guaranteed under this subparagraph.

“(II) Underwriting standards.--The Administrator shall, by rule, establish underwriting standards for loans guaranteed under this subparagraph, to ensure that the Administrator may guarantee new loans under this subparagraph until 1 year after the date of enactment of this subparagraph. The standards established under this subclause shall require the borrower to submit income tax returns to provide verification of business income.

“(III) Penalties for fraud.--Notwithstanding section 16, a lender that knowingly makes a false statement with respect to the income, assets, or other qualifications of a small business concern in connection with a loan or application for a loan guaranteed under this subparagraph shall be fined not more than $500,000, imprisoned for not more than 5 years, or both.

“(iv) Authority of participating lenders.--A lender designated in accordance with clause (iii) shall have the same authority with respect to the underwriting and liquidation of a loan guaranteed under this subparagraph as a lender participating in the Certified Lenders Program under paragraph (19).

“(v) Total amount of loans.--The Administrator may guarantee a total of not more than $3,000,000,000 in loans under this subparagraph.

“(vi) Default rate.--The Administrator shall calculate the default rate for loans guaranteed under this subparagraph separately from the default rate for any other loans made or guaranteed by the Administration.”.

(B) Conforming amendment.--Section 7(a)(25)(B) of the Small Business Act (15 U.S.C. 636(a)(25)(B)) is amended by inserting “, and does not include loans under paragraph (31)(G)” after “by law”.

(C) Implementation.--Not later than 45 days after the date of enactment of this Act, the Administrator shall begin guaranteeing loans under section 7(a)(31)(G) of the Small Business Act, as added by this subsection.

(2) Funding.--

(A) Appropriation.--There is appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2010, $75,000,000, to remain available until 1 year after the date of enactment of this Act, for an additional amount for the appropriations account appropriated under the heading “business loans program account” under the heading “Small Business Administration” for the cost of loan guarantees under section 7(a)(31)(G) of the Small Business Act, as added by this subsection.

(B) Offsets.--There are permanently rescinded from the appropriations account appropriated under the heading “federal buildings fund” under the heading “real property activities” under the heading “General Services Administration”, $50,000,000 from Rental of Space and $25,000,000 from Building Operations, to be derived from unobligated balances that were provided in previous appropriations Acts.

(3) Prospective repeal.--

(A) In general.--Effective 1 year after the date of enactment of this Act, section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended--

(i) in paragraph (25)(B), by striking “, and does not include loans under paragraph (31)(G)”; and

(ii) in paragraph (31), by striking subparagraph (G).

(B) Penalties.--Notwithstanding subparagraph (A), subclause (III) of section 7(a)(31)(G)(iii) of the Small Business Act, as added by this subsection, shall continue to apply on and after the date described in subparagraph (A), to loans guaranteed under section 7(a)(31)(G) of the Small Business Act.

(C) Savings provision.--A loan guaranteed under section 7(a)(31)(G) of the Small Business Act, as added by this subsection, before the date described in subparagraph (A) shall remain in full force and effect under the terms, and for the duration, of the loan.