H.R. 2527 – Reading Mode

111th CONGRESS

1st Session

H. R. 2527

IN THE HOUSE OF REPRESENTATIVES

May 20, 2009

Ms. Markey of Colorado introduced the following bill; which was referred to the Committee on Small Business

A BILL

To provide authority for certain debt refinancing with respect to financings approved under title V of the Small Business Investment Act of 1958, and for other purposes.

Authority to provide certain debt refinancing

During the 2 year period beginning on the date of the enactment of this Act, any financing approved under title V of the Small Business Investment Act of 1958 (15 U.S.C. 695 et seq.) may include debt refinancing relating to a conventional loan that is not guaranteed by the Small Business Administration, if—

(1)

the proceeds of the indebtedness were used to acquire land, including a building situated thereon, to construct a building thereon, or to purchase equipment;

(2)

the existing indebtedness is collateralized by fixed assets;

(3)

the existing indebtedness was incurred for the benefit of the small business concern;

(4)

the financing under title V of the Small Business Investment Act of 1958 will be used only for refinancing existing indebtedness or costs relating to the project financed under such title;

(5)

the financing under such title will provide a substantial benefit to the borrower when prepayment penalties, financing fees, and other financing costs are accounted for; and

(6)

the financing under section 504 of such title will provide better terms or rate of interest than the existing indebtedness at the time of refinancing.