Main Street Survival Act - Expresses the sense of Congress that the President should encourage financial institutions that have received federal financial support to maintain historic levels of lending to small and medium-sized businesses.
Instructs the Secretary of the Treasury to establish a three-year Main Street Revolving Loan Fund Program to provide temporary loans to businesses with less than 1,000 full-time equivalent employees.
Establishes in the Treasury a revolving loan fund to implement the Program.
Permits a business to use a Main Street revolving loan to finance the cost of certain operations, but prohibits the use of it to expand its operations significantly. Limits the term of such a loan to nine months, and the maximum total amount of loans to a particular business in any fiscal year to $1 million.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4340 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 4340
To require the Secretary of the Treasury to establish a revolving loan
fund program for certain businesses to facilitate increased lending in
the United States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 16, 2009
Mr. Davis of Alabama introduced the following bill; which was referred
to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Secretary of the Treasury to establish a revolving loan
fund program for certain businesses to facilitate increased lending in
the United States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Main Street Survival Act''.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--The Congress finds the following:
(1) Despite the infusion of hundreds of billions of dollars
to provide liquidity to capital markets, many qualified and
creditworthy small and medium-sized businesses continue to face
severely constricted credit markets.
(2) Banks of all sizes have significantly decreased lending
in, and in some cases withdrawn completely from, the small and
medium-sized business credit market.
(3) Available and affordable credit is critical for the
survival of the small and medium-sized businesses that form the
backbone of the economy of the United States.
(b) Sense of the Congress on Lending to Small and Medium-sized
Businesses.--It is the sense of the Congress that the President, acting
through the Secretary of the Treasury, should encourage financial
institutions that have received Federal financial support to maintain
historic levels of lending to small and medium-sized businesses.
SEC. 3. DEFINITIONS.
In this Act--
(1) the term ``revolving loan fund'' means the revolving
loan fund established under section 4(b); and
(2) the term ``Secretary'' means the Secretary of the
Treasury.
SEC. 4. MAIN STREET REVOLVING LOAN FUND PROGRAM.
(a) Establishment.--The Secretary shall establish the Main Street
Revolving Loan Fund Program (hereinafter in this Act referred to as the
``program'') to provide temporary loans to businesses that meet the
size requirement under paragraph (1) of subsection (c).
(b) Revolving Loan Fund.--
(1) In general.--There is established in the Treasury a
revolving loan fund for the program.
(2) Initial transfer.--From dividends paid by financial
institutions that have received financial assistance provided
under title I of the Emergency Economic Stabilization Act of
2008 (Public Law 110-343; 12 U.S.C. 5211 et seq.), the
Secretary shall transfer and credit $1,000,000,000 to the
revolving loan fund.
(3) Expenditures.--The Secretary shall use the amounts in
the revolving loan fund to carry out the program.
(4) Deposits.--The Secretary shall deposit amounts received
as payment on loans provided under the program into the
revolving loan fund.
(c) Eligibility.--
(1) Size requirement.--To qualify for a loan under the
program, a business shall have less than 1,000 full-time
equivalent employees at the time of submission of an
application under subsection (d).
(2) Considerations.--The Secretary, through regulations,
shall develop criteria to evaluate and select businesses for
participation in the program, taking into consideration--
(A) the likelihood that the business concerned will
be forced to lay off employees in the absence of
obtaining a loan under such program; and
(B) the ability of such businesses to repay the
loan.
(3) Availability.--The criteria developed under paragraph
(2) shall be made available on the official public Web site of
the Department of the Treasury.
(d) Application.--A business desiring a loan under the program
shall submit an application to the Secretary at such time, in such
manner, and accompanied by such information as the Secretary may
require.
SEC. 5. TERMS.
(a) Use of Funds.--A business receiving a loan under the program
may use the funds to finance the cost of operations, including--
(1) purchasing and operating equipment;
(2) paying salaries, wages, and building expenses; and
(3) purchasing inventory or making improvements to enhance
productivity.
(b) Prohibited Use.--A loan provided under the program may not be
used to significantly expand operations.
(c) Repayment Period.--A loan provided under the program shall be
made for a period not to exceed 9 months.
(d) Maximum Loan Amount.--Under the program, the Secretary may
provide not more than a total of $1,000,000 in loans to a particular
business in any fiscal year.
SEC. 6. ADMINISTRATIVE COSTS.
Not more than $1,000,000 may be used for administrative costs in
any fiscal year to carry out the program.
SEC. 7. REPORT.
(a) In General.--The Secretary shall make available on the official
public Web site of the Department of the Treasury, and submit to
Congress--
(1) within 1 year after the date of enactment of this Act
and each year thereafter in which a loan has been made under
the program, an annual report; and
(2) within 90 days after the end of the 9-month period
following the issuance of the final loan under the program, a
final report.
(b) Details.--Each report shall provide details on loans provided
under the program and the effectiveness of such program in providing
stability for, and otherwise supporting, businesses.
SEC. 8. REGULATIONS.
The Secretary may prescribe regulations necessary to carry out this
Act.
SEC. 9. SUNSET.
An application for a loan under the program may not be accepted
after the date which is 3 years after the date of enactment of this
Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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