II
111th CONGRESS
1st Session
S. 1832
IN THE SENATE OF THE UNITED STATES
October 21, 2009
Ms. Landrieu (for herself, Mr. Kerry, Mrs. Shaheen, Mr. Casey, Mr. Cardin, and Mr. Harkin) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To increase loan limits for small business concerns, provide for low interest refinancing for small business concerns, and for other purposes.
Short title
This Act may be cited as the
Small Business Access to Capital Act
of 2009
.
Section 7(a) business loans
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended—
in paragraph (2)(A)—
in clause (i), by
striking 75 percent
and inserting 90 percent
;
and
in clause (ii),
by striking 85 percent
and inserting 90 percent
;
and
in paragraph (3)(A), by striking
$1,500,000 (or if the gross loan amount would exceed $2,000,000
and inserting $4,500,000 (or if the gross loan amount would exceed
$5,000,000
.
Low interest refinancing under the local development business loan program
Section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended by adding at the end the following:
Refinancing not involving expansions
In general
A project that does not involve the expansion of a small business concern may include the refinancing of existing indebtedness if—
the amount of the financing is not more than 80 percent of the value of the collateral for the financing;
the small business concern has been in operation for all of the 2-year period ending on the date of the financing;
the existing indebtedness was not incurred during the 2-year period ending on the date of the financing;
the existing indebtedness is not subject to a guarantee by any Federal agency; and
for a loan for which the Administrator determines there will be an additional cost for making a loan that includes the refinancing of the existing indebtedness, the borrower agrees to pay a fee in an amount equal to the anticipated additional cost.
No job creation goals
A financing may be approved under this subparagraph regardless of whether the project meets the job creation goals under subsection (d) or (e) of section 501.
.
Microloans
Marketing, management, and technical assistance grants
Section 7(m)(4) of the Small Business Act (15 U.S.C. 636(m)(4)) is amended—
in subparagraph (A)—
in the first
sentence, by striking and subject to subparagraph (B)
;
and
in the second sentence—
by
striking each intermediary meeting the requirements of subparagraph
(B)
and inserting an intermediary
; and
by
striking 25 percent
and inserting 50
percent
;
by striking subparagraph (B); and
by striking subparagraph (C)(iii).
Microloan amounts
Section 7(m) of the Small Business Act (15 U.S.C. 636(m)) is amended—
in paragraph
(1)(B)(iii), by striking $35,000
and inserting
$50,000
;
in paragraph
(3)(E), by striking $35,000
each place it appears and inserting
$50,000
; and
in paragraph
(11)(B), by striking $35,000
and inserting
$50,000
.
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—
in clause (i), by striking
$1,500,000
and inserting $5,000,000
;
in clause (ii),
by striking $2,000,000
and inserting $5,000,000
;
and
in clause (iii),
by striking $4,000,000
and inserting
$5,500,000
.
New Markets Venture Capital company investment limitations
Section 355 of the Small Business Investment Act of 1958 (15 U.S.C. 689d) is amended by adding at the end the following:
Investment limitations
Definition
In this subsection, the term covered New Markets Venture Capital company means a New Markets Venture Capital company—
granted final approval by the Administrator under section 354(e) on or after March 1, 2002; and
that has obtained a financing from the Administrator.
Limitation
Except to the extent approved by the Administrator, a covered New Markets Venture Capital company may not acquire or issue commitments for securities under this title for any single enterprise in an aggregate amount equal to more than 10 percent of the sum of—
the regulatory capital of the covered New Markets Venture Capital company; and
the total amount of leverage projected in the participation agreement of the covered New Markets Venture Capital.
.
Extramural research and development budget of the National Institutes of Health
Title VIII of division
A of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123
Stat. 176) is amended in the matter under the heading Office of the
Director
under the heading National Institutes
of Health
under the heading Department of Health and
Human Services
, by inserting after
638(n)(1):
the following:
Provided further, That not later
than September 30, 2010, of the amount appropriated under this heading,
$150,000,000 shall be obligated to be expended with the programs of the
National Institutes of Health described in the previous
proviso:
.
Business stabilization program
Section
506(c) of division A of the American Recovery and Reinvestment Act of 2009
(Public Law 111–5; 123 Stat. 157) is amended by striking but shall not
include
and all that follows through enactment of this
Act
.
Prospective repeals
Amendments
Section 7(a) business loans
Section 7(a) of the Small Business Act (15 U.S.C. 636(a)) is amended—
in paragraph (2)(A)—
in
clause (i), by striking 90 percent
and inserting 75
percent
; and
in
clause (ii), by striking 90 percent
and inserting 85
percent
; and
in paragraph (3)(A), by striking
$4,500,000
and inserting $3,750,000
.
Low interest refinancing under the local development business loan program
Section 502(7) of the Small Business Investment Act of 1958 (15 U.S.C. 696(7)) is amended by striking subparagraph (C).
Effective date
The amendments made by this section shall take effect on October 1, 2010.