S. 1615

Next Step for Main Street Credit Availability Act of 2009

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II

111th CONGRESS

1st Session

S. 1615

IN THE SENATE OF THE UNITED STATES

August 6, 2009

Ms. Snowe introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship

A BILL

To amend the Small Business Act and the Small Business Investment Act of 1958 to stop the small business credit crunch, and for other purposes.

1.

Short title

This Act may be cited as the Next Step for Main Street Credit Availability Act of 2009.

2.

Maximum amounts for 7(a) loans

Section 7(a)(3)(A) of the Small Business Act (15 U.S.C. 636(a)(3)(A)) is amended by striking $1,500,000 (or if the gross loan amount would exceed $2,000,000 and inserting $4,000,000 (or if the gross loan amount would exceed $5,000,000.

3.

Refinancing Existing 7(a) Loans

(a)

In General

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

(34)

Refinancing existing loans

A borrower that has received a loan under this subsection may refinance the balance of the loan by applying for a loan from the lender that made the original loan or with another lender.

.

(b)

Technical amendment

Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended by striking (32) Increased and inserting (33) Increased.

4.

Maximum loan amounts under 504 program

Section 502(2)(A) of the Small Business Investment Act of 1958 (15 U.S.C. 696(2)(A)) is amended—

(1)

in clause (i), by striking $1,500,000 and inserting $4,000,000;

(2)

in clause (ii), by striking $2,000,000 and inserting $5,000,000; and

(3)

in clause (iii), by striking $4,000,000 and inserting $5,500,000.

5.

Maximum loan limits under microloan program

Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended—

(1)

in paragraph (1)(B)(iii), by striking $35,000 and inserting $50,000;

(2)

in paragraph (3)(E), by striking $35,000 each place it appears and inserting $50,000; and

(3)

in paragraph (11)(B), by striking $35,000 and inserting $50,000.

6.

Online lending platform

It is the sense of the Congress that the Administrator of the Small Business Administration should establish a website that—

(1)

lists each lender that makes loans guaranteed by the Small Business Administration and provides information about the loan rate of each such lender; and

(2)

allows prospective borrowers—

(A)

to compare rates on loans guaranteed by the Small Business Administration; and

(B)

to apply online for loans guaranteed by the Small Business Administration.