II
112th CONGRESS
1st Session
S. 1828
IN THE SENATE OF THE UNITED STATES
November 8, 2011
Mr. Kerry introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To increase small business lending, and for other purposes.
Short title
This Act may be cited as the
Increasing Small Business Lending Act
of 2011
.
Small business lending market stabilization
Fee reductions and loan guarantees
Fee reductions
Section 501 of
the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat.
151) is amended by striking March 4, 2011
each place it appears
and inserting the date that is 1 year after the date of enactment of the
Increasing Small Business Lending Act of
2011
.
Loan guarantees
Section 502(f) of division A of the American Recovery
and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 153) is amended by
striking March 4, 2011
and inserting the date that is 1
year after the date of enactment of the Increasing Small Business Lending Act of
2011
.
Authorization of appropriations
There are authorized to be appropriated to the Administrator of the Small Business Administration such sums as may be necessary to carry out sections 501 and 502 of the American Recovery and Reinvestment Act of 2009 (Public Law 111–5; 123 Stat. 151), as amended by this subsection.
Main street incentives
In general
Section 502 of the Small Business Investment Act of 1958 (15 U.S.C. 696) is amended—
by striking paragraphs (4) and (5) and inserting the following:
Limitation on leasing
If the use of a loan under this section includes the acquisition of a facility or the construction of a new facility, the small business concern assisted—
shall permanently occupy and use not less than a total of 50 percent of the space in the facility; and
may, on a temporary or permanent basis, lease to others not more than 50 percent of the space in the facility.
; and
by redesignating paragraphs (6) and (7) as paragraphs (5) and (6), respectively.
Policy for 7(a) loans
Section 7(a)(28) of the Small Business Act (15 U.S.C. 636(a)(28)) is amended to read as follows:
Limitation on leasing
If the use of a loan under this subsection includes the acquisition of a facility or the construction of a new facility, the small business concern assisted—
shall permanently occupy and use not less than a total of 50 percent of the space in the facility; and
may, on a temporary or permanent basis, lease to others not more than 50 percent of the space in the facility.
.
Loan pooling
Section 5(g)(1) of the Small Business Act (15 U.S.C. 634(g)(1)) is amended—
by inserting (A)
before
The Administration
;
by striking the colon and all that follows and inserting a period; and
by adding at the end the following:
A trust certificate issued under subparagraph (A) shall be based on, and backed by, a trust or pool approved by the Administrator and composed solely of the guaranteed portion of such loans.
The interest rate on a trust certificate issued under subparagraph (A) shall be either—
the lowest interest rate on any individual loan in the pool; or
the weighted average interest rate of all loans in the pool, subject to such limited variations in loan characteristics as the Administrator determines appropriate to enhance marketability of the pool certificates.
.
Alternative variable interest rate
In general
Section 7(a)(4)(A) of the Small Business
Act (15 U.S.C. 636(a)(4)(A)) is amended by striking prescribed by the
Administration,
and inserting: prescribed by the Administration,
including, on variable rate loans, a nationally recognized prime rate of
interest and at least 1 other index as an alternative thereto at the option of
the participating lender,
.
Applicability
Not later than 180 days after the date of enactment of this Act, the Administrator of the Small Business Administration shall select not less than 1 alternative index under section 7(a)(4)(A) of the Small Business Act, as amended by paragraph (1) of this subsection, and make such index available for use by participating lenders.