State Small Business Credit Initiative Act of 2010 - Establishes a seven-year State Small Business Credit Initiative (Initiative), administered by the Secretary of the Interior to allocate federal funds to participating states with capital access programs.
Prescribes eligibility criteria for state capital access programs providing portfolio insurance for business loans.
Requires the portfolio insurance to be based on a separate loan-loss reserve fund for each financial institution, with: (1) premiums paid by the financial institution lenders and by the business borrowers to the reserve fund to have their loans enrolled in it; and (2) state contributions to the reserve fund in amounts equal to such premium charges. Limits portfolio insurance to loans of up to $5 million to borrowers with 500 employees or fewer at the time that the loan is enrolled in the program.
Requires the Secretary to approve for federal contributions any state capital access program meeting specified minimum requirements.
Authorizes a participating state that establishes a new, or has an existing, eligible credit support program to apply for the Secretary's approval of a state other credit support program [sic] for federal contributions to, or for the account of, the state program.
Requires a state other credit support program, among other eligibility criteria, to demonstrate that one dollar of public investment by the state program will cause and result in one dollar of new private credit, with a reasonable expectation that, when considered with all other state programs, they together have the ability to use new federal contributions to cause and result in amounts of new small business lending at least 10 times the new federal contribution amount. Requires such a program to extend credit support to borrowers with an average size of 500 or fewer employees, but in no event to borrowers with more than 750 employees. Requires such credit support to target loans with an average principal amount of $5 million or less, but in no event more than $20 million.
Authorizes the reduction of federal allocations to the state or termination of further allocation transfers to the state upon its termination of participation in the program, or failure to submit timely and complete reports, or its noncompliance with the terms of the allocation agreement.
Directs the Secretary to: (1) establish minimum national standards for approved state programs; and (2) provide states with technical assistance for starting programs and generally disseminating best practices.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5302 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5302
To establish the State Small Business Credit Initiative, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 13, 2010
Mr. Peters (for himself, Mr. Levin, Mr. Dingell, Mr. Maffei, Mr.
Sarbanes, Mr. Reyes, Ms. Norton, Mr. Schauer, Mr. Pascrell, Mr. Stupak,
Ms. Tsongas, Mr. Watt, Mr. Tonko, Mr. Etheridge, Ms. Linda T. Sanchez
of California, Mr. Adler of New Jersey, Mr. Kanjorski, Mr. Moore of
Kansas, Mr. Michaud, Ms. Sutton, Ms. Bean, Mr. Lipinski, Ms. Moore of
Wisconsin, Mr. Loebsack, Mr. Kildee, and Mr. Miller of North Carolina)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To establish the State Small Business Credit Initiative, and for other
purposes.
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 ``State Small Business Credit
Initiative Act of 2010''.
SEC. 2. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency''--
(A) has the same meaning as in section 3 of the
Federal Deposit Insurance Act; and
(B) includes the National Credit Union
Administration Board in the case of any credit union
the deposits of which are insured in accordance with
the Federal Credit Union Act.
(2) Enrolled loan.--The term ``enrolled loan'' means a loan
made by a financial institution lender that is enrolled by a
participating State in an approved State capital access program
in accordance with this Act.
(3) Federal contribution.--The term ``Federal
contribution'' means the portion of the contribution made by a
participating State to, or for the account of, an approved
State program that is made with Federal funds allocated to the
State by the Secretary under section 3.
(4) Financial institution.--The term ``financial
institution'' means any insured depository institution, insured
credit union, or community development financial institution,
as those terms are each defined in section 103 of the Riegle
Community Development and Regulatory Improvement Act of 1994.
(5) Participating state.--The term ``participating State''
means any State that has been approved for participation in the
Program under section 4.
(6) Program.--The term ``Program'' means the State Small
Business Credit Initiative established under this Act.
(7) Qualifying loan or swap funding facility.--The term
``qualifying loan or swap funding facility'' means a
contractual arrangement between a participating State and a
private financial entity under which--
(A) the participating State delivers funds to the
entity as collateral;
(B) the entity provides funding from the
arrangement back to the participating State; and
(C) the full amount of resulting funding from the
arrangement, less any fees and other costs of the
arrangement, is contributed to, or for the account of,
an approved State program.
(8) Reserve fund.--The term ``reserve fund'' means a fund,
established by a participating State, dedicated to a particular
financial institution lender, for the purposes of--
(A) depositing all required premium charges paid by
the financial institution lender and by each borrower
receiving a loan under an approved State program from
that financial institution lender;
(B) depositing contributions made by the
participating State, including State contributions made
with Federal contributions; and
(C) covering losses on enrolled loans by disbursing
accumulated funds.
(9) State.--The term ``State'' means--
(A) a State of the United States;
(B) the District of Columbia;
(C) when designated by a State of the United
States, a political subdivision of that State that the
Secretary determines has the capacity to participate in
the Program; and
(D) under the circumstances described in section
4(d), a municipality of a State of the United States to
which the Secretary has given a special permission
under section 4(d).
(10) State capital access program.--The term ``State
capital access program'' means a program of a State that--
(A) uses public resources to promote private access
to credit; and
(B) meets the eligibility criteria in section 5(c).
(11) State other credit support program.--The term ``State
other credit support program''--
(A) means a program of a State that--
(i) uses public resources to promote
private access to credit;
(ii) is not a State capital access program;
and
(iii) meets the eligibility criteria in
section 6(c); and
(B) includes, collateral support programs, loan
participation programs, and credit guarantee programs.
(12) State program.--The term ``State program'' means a
State capital access program or a State other credit support
program.
(13) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 3. FEDERAL FUNDS ALLOCATED TO STATES.
(a) Program Established; Purpose.--There is established the State
Small Business Credit Initiative (Program), to be administered by the
Secretary. Under the Program, the Secretary shall allocate Federal
funds to participating States and make the allocated funds available to
the participating States as provided in this section for the uses
described in this section.
(b) Allocation Formula.--
(1) In general.--Not later than 30 days after the date of
enactment of this Act, the Secretary shall allocate Federal
funds to participating States so that each State is eligible to
receive an amount equal to the average of the respective
amounts that the State--
(A) would receive under the 2009 Allocation; and
(B) would receive under the 2010 Allocation.
(2) 2009 allocation formula.--
(A) In general.--The Secretary shall determine the
2009 Allocation by allocating Federal funds among the
States in the proportion that each such State's 2008
State employment decline bears to the aggregate of the
2008 State employment declines for all States.
(B) Minimum allocation.--The Secretary shall adjust
the allocations under subparagraph (A) for each State
to the extent necessary to ensure that no State
receives less than 0.9 percent of the Federal funds.
(C) 2008 state employment decline defined.--For
purposes of this paragraph and with respect to a State,
the term ``2008 State employment decline'' means the
excess (if any) of--
(i) the number of individuals employed in
such State determined for December 2007; over
(ii) the number of individuals employed in
such State determined for December 2008.
(3) 2010 allocation formula.--
(A) In general.--The Secretary shall determine the
2010 Allocation by allocating Federal funds among the
States in the proportion that each such State's 2009
unemployment number bears to the aggregate of the 2009
unemployment numbers for all of the States.
(B) Minimum allocation.--The Secretary shall adjust
the allocations under subparagraph (A) for each State
to the extent necessary to ensure that no State
receives less than 0.9 percent of the Federal funds.
(C) 2009 unemployment number defined.--For purposes
of this paragraph and with respect to a State, the term
``2009 unemployment number'' means the number of
individuals within such State who were determined to be
unemployed by the Bureau of Labor Statistics for
December 2009.
(c) Availability of Allocated Amount.--The amount allocated by the
Secretary to each participating State under subsection (b) shall be
made available to the State as follows:
(1) Allocated amount generally to be available to state in
one-thirds.--Except as provided in paragraph (2)--
(A) the Secretary shall apportion the participating
State's allocated amount into one-thirds;
(B) the Secretary shall transfer to the
participating State the first one-third when the
Secretary approves the State for participation under
section 4; and
(C) the Secretary shall transfer to the
participating State each successive one-third when the
State has certified to the Secretary that it has
expended, transferred, or obligated 80 percent of the
last transferred one-third for Federal contributions
to, or for the account of, State programs.
The Secretary may withhold the transfer of any successive one-
third pending results of a financial audit.
(2) Exception.--The Secretary may, in the Secretary's
discretion, transfer the full amount of the participating
State's allocated amount to the State in a single transfer if
the participating State applies to the Secretary for approval
to use the full amount of the allocation as collateral for a
qualifying loan or swap funding facility.
(3) Transferred amounts.--Each amount transferred to a
participating State under this section shall remain available
to the State until used by the State as permitted under
paragraph (4).
(4) Use of transferred funds.--Each participating State may
use funds transferred to it under this section only--
(A) for making Federal contributions to, or for the
account of, an approved State program;
(B) as collateral for a qualifying loan or swap
funding facility;
(C) in the case of the first one-third transferred,
for paying administrative costs incurred by the State
in implementing an approved State program in an amount
not to exceed 5 percent of that first one-third; or
(D) in the case of each successive one-third
transferred, for paying administrative costs incurred
by the State in implementing an approved State program
in an amount not to exceed 3 percent of that successive
one-third.
(5) Termination of availability of amounts not transferred
within 2 years of participation.--Any portion of a
participating State's allocated amount that has not been
transferred to the State under this section by the end of the
2-year period beginning on the date that the Secretary approves
the State for participation may be deemed by the Secretary to
be no longer allocated to the State and no longer available to
the State and shall be returned to the General Fund.
(6) Definitions.--For purposes of this section--
(A) the term ``allocated amount'' means the total
amount of Federal funds allocated by the Secretary
under subsection (b) to the participating State; and
(B) the term ``one-third'' means--
(i) in the case of the first and second
one-thirds, an amount equal to 33 percent of a
participating State's allocated amount; and
(ii) in the case of the last one-third, an
amount equal to 34 percent of a participating
State's allocated amount.
SEC. 4. APPROVING STATES FOR PARTICIPATION.
(a) Application.--Any State may apply to the Secretary for approval
to be a participating State under the Program and to be eligible for an
allocation of Federal funds under the Program.
(b) General Approval Criteria.--The Secretary shall approve a State
to be a participating State, if--
(1) a specific department, agency, or political subdivision
of the State has been designated to implement a State program
and participate in the Program;
(2) all legal actions necessary to enable such designated
department, agency, or political subdivision to implement a
State program and participate in the Program have been
accomplished;
(3) the State has filed an application with the Secretary
for approval of a State capital access program under section 5
or approval as a State other credit support program under
section 6, in each case within the time period provided in the
respective section; and
(4) the State and the Secretary have executed an allocation
agreement that--
(A) conforms to the requirements of this Act;
(B) ensures that the State program complies with
such national standards as are established by the
Secretary under section 9(a)(2);
(C) sets forth internal control, compliance, and
reporting requirements as established by the Secretary,
and such other terms and conditions necessary to carry
out the purposes of this Act, including an agreement by
the State to allow the Secretary to audit State
programs;
(D) requires that the State program be fully
positioned, within 90 days of the State's execution of
the allocation agreement with the Secretary, to act on
providing the kind of credit support that the State
program was established to provide; and
(E) includes an agreement by the State to deliver
to the Secretary, and update annually, a schedule
describing how the State intends to apportion among its
State programs the Federal funds allocated to the
State.
(c) Contractual Arrangements for Implementation of State
Programs.--A State may be approved to be a participating State, and be
eligible for an allocation of Federal funds under the Program, if the
State has contractual arrangements for the implementation and
administration of its State program with--
(1) an existing, approved State program administered by
another State; or
(2) an authorized agent of, or entity supervised by, the
State, including for-profit and not-for-profit entities.
(d) Special Permission.--
(1) Circumstances when a municipality may apply directly.--
If a State does not, within 60 days after the date of enactment
of this Act, file with the Secretary a notice of its intent to
apply for approval by the Secretary of a State program or
within 9 months after the date of enactment of this Act, file
with the Secretary a complete application for approval of a
State program, the Secretary may grant to municipalities of
that State a special permission that will allow them to apply
directly to the Secretary without the State for approval to be
participating municipalities.
(2) Timing requirements applicable to municipalities
applying directly.--To qualify for the special permission, a
municipality of a State must, within 12 months after the date
of enactment of this Act, file with the Secretary a complete
application for approval by the Secretary of a State program.
(3) Notices of intent and applications from more than 1
municipality.--A municipality of a State may combine with 1 or
more other municipalities of that State to file a joint notice
of intent to file and a joint application.
(4) Approval criteria.--The general approval criteria in
paragraphs (2) and (4) of section 4(b) will apply.
(5) Allocation to municipalities.--
(A) If more than 3.--If more than 3 municipalities,
or combination of municipalities as provided in
paragraph (3), of a State apply for approval by the
Secretary to be participating municipalities under this
subsection, and the applications meet the approval
criteria in paragraph (4), the Secretary shall allocate
Federal funds to the 3 municipalities with the largest
populations.
(B) If 3 or fewer.--If 3 or fewer municipalities,
or combination of municipalities as provided in
paragraph (3), of a State apply for approval by the
Secretary to be participating municipalities under this
subsection, and the applications meet the approval
criteria in paragraph (4), the Secretary shall allocate
Federal funds to each applicant municipality or
combination of municipalities.
(6) Apportionment of allocated amount among participating
municipalities.--If the Secretary approves municipalities to be
participating municipalities under this subsection, the
Secretary shall apportion the full amount of the Federal funds
that are allocated to that State to municipalities that are
approved under this subsection in amounts proportionate to the
population of those municipalities, based on the most recent
available decennial Census.
(7) Approving state programs for municipalities.--If the
Secretary approves municipalities to be participating
municipalities under this subsection, the Secretary shall take
into account the additional considerations in section 6(d) in
making the determination under section 5 or 6 that the State
program or programs to be implemented by the participating
municipalities, including a State capital access program, is
eligible for Federal contributions to, or for the account of,
the State program.
SEC. 5. APPROVING STATE CAPITAL ACCESS PROGRAMS.
(a) Application.--A participating State that establishes a new, or
has an existing, State capital access program that meets the
eligibility criteria in subsection (c) may apply to Secretary to have
the State capital access program approved as eligible for Federal
contributions to the reserve fund.
(b) Approval.--The Secretary shall approve such State capital
access program as eligible for Federal contributions to the reserve
fund if--
(1) within 60 days after the date of enactment of this Act,
the State has filed with the Secretary a notice of intent to
apply for approval by the Secretary of a State capital access
program;
(2) within 9 months after the date of enactment of this
Act, the State has filed with the Secretary a complete
application for approval by the Secretary of a capital access
program;
(3) the State satisfies the requirements of subsections (a)
and (b) of section 4; and
(4) the State capital access program meets the eligibility
criteria in subsection (c).
(c) Eligibility Criteria for State Capital Access Programs.--For a
State capital access program to be approved under this section, it must
be a program of the State that--
(1) provides portfolio insurance for business loans based
on a separate loan-loss reserve fund for each financial
institution;
(2) requires insurance premiums to be paid by the financial
institution lenders and by the business borrowers to the
reserve fund to have their loans enrolled in the reserve fund;
(3) provides for contributions to be made by the State to
the reserve fund in amounts at least equal to the sum of the
amount of the insurance premium charges paid by the borrower
and the financial institution to the reserve fund for any newly
enrolled loan; and
(4) provides its portfolio insurance solely for loans that
meet the following requirements:
(A) the borrower has 500 employees or less at the
time that the loan is enrolled in the Program; and
(B) the loan amount does not exceed $5,000,000.
(d) Federal Contributions to Approved State Capital Access
Programs.--A State capital access program approved under this section
will be eligible for receiving Federal contributions to the reserve
fund in an amount equal to the sum of the amount of the insurance
premium charges paid by the borrowers and by the financial institution
to the reserve fund for loans that meet the requirements in subsection
(c)(4). A participating State may use the Federal contribution to make
its contribution to the reserve fund of an approved State capital
access program.
(e) Minimum Program Requirements for State Capital Access
Programs.--The Secretary shall, by regulation or other guidance,
prescribe Program requirements that meet the following minimum
requirements.
(1) Experience and capacity.--The participating State shall
determine for each financial institution that participates in
the State capital access program, after consultation with the
appropriate Federal banking agency or, in the case of a
financial institution that is a non-depository community
development financial institution, the Community Development
Financial Institution Fund, that the financial institution has
sufficient commercial lending experience and financial and
managerial capacity to participate in the approved State
capital access program. The determination by the State shall
not be reviewable by the Secretary.
(2) Investment authority.--Subject to applicable State law,
the participating State may invest, or cause to be invested,
funds held in a reserve fund by establishing a deposit account
at the financial institution lender in the name of the
participating State. In the event that funds in the reserve
fund are not deposited in such an account, such funds shall be
invested in a form that the participating State determines is
safe and liquid.
(3) Loan terms and conditions to be determined by
agreement.--A loan to be filed for enrollment in an approved
State capital access program may be made with such interest
rate, fees, and other terms and conditions, and the loan may be
enrolled in the approved State capital access program and
claims may be filed and paid, as agreed upon by the financial
institution lender and the borrower, consistent with applicable
law.
(4) Lender capital at-risk.--A loan to be filed for
enrollment in the State capital access program must require the
financial institution lender to have a meaningful amount of its
own capital resources at risk in the loan.
(5) Premium charges minimum and maximum amounts.--The
insurance premium charges payable to the reserve fund by the
borrower and the financial institution lender shall be
prescribed by the financial institution lender, within minimum
and maximum limits that require that the sum of the insurance
premium charges paid in connection with a loan by the borrower
and the financial institution lender may not be less than 2
percent nor more than 7 percent of the amount of the loan
enrolled in the approved State capital access program.
(6) State contributions.--In enrolling a loan in an
approved State capital access program, the participating State
may make a contribution to the reserve fund to supplement
Federal contributions made under this Program.
(7) Loan purpose.--
(A) Particular loan purpose requirements and
prohibitions.--In connection with the filing of a loan
for enrollment in an approved State capital access
program, the financial institution lender--
(i) shall obtain an assurance from each
borrower that--
(I) the proceeds of the loan will
be used for a business purpose;
(II) the loan will not be used to
finance such business activities as the
Secretary, by regulation, may proscribe
as prohibited loan purposes for
enrollment in an approved State capital
access program; and
(III) the borrower is not--
(aa) an executive officer,
director, or principal
shareholder of the financial
institution lender;
(bb) a member of the
immediate family of an
executive officer, director, or
principal shareholder of the
financial institution lender;
or
(cc) a related interest of
any such executive officer,
director, principal
shareholder, or member of the
immediate family;
(ii) shall provide assurances to the
participating State that the loan has not been
made in order to place under the protection of
the approved State capital access program prior
debt that is not covered under the approved
State capital access program and that is or was
owed by the borrower to the financial
institution lender or to an affiliate of the
financial institution lender;
(iii) shall not allow the enrollment of a
loan to a borrower that is a refinancing of a
loan previously made to that borrower by the
financial institution lender or an affiliate of
the financial institution lender; and
(iv) may include additional restrictions on
the eligibility of loans or borrowers that are
not inconsistent with the provisions and
purposes of this Act, including compliance with
all applicable Federal and State laws,
regulations, ordinances, and Executive orders.
(B) Definitions.--For purposes of this subsection,
the terms ``executive officer'', ``director'',
``principal shareholder'', ``immediate family'', and
related interest refer to the same relationship to a
financial institution lender as the relationship
described in part 215 of title 12 of the Code of
Federal Regulations, or any successor to such part.
SEC. 6. APPROVING COLLATERAL SUPPORT AND OTHER INNOVATIVE CREDIT ACCESS
AND GUARANTEE INITIATIVES FOR SMALL BUSINESSES AND
MANUFACTURERS.
(a) Application.--A participating State that establishes a new, or
has an existing, credit support program that meets the eligibility
criteria in subsection (c) may apply to the Secretary to have the State
other credit support program approved as eligible for Federal
contributions to, or for the account of, the State program.
(b) Approval.--The Secretary shall approve such State other credit
support program as eligible for Federal contributions to, or for the
account of, the program if--
(1) the Secretary determines that the State satisfies the
requirements of paragraphs (1) through (3) of subsection 5(b);
(2) the Secretary determines that the State other credit
support program meets the eligibility criteria in subsection
(c);
(3) the Secretary determines the State other credit support
program to be eligible based on the additional considerations
in subsection (d); and
(4) within 9 months after the date of enactment of this
Act, the State has filed with Treasury a complete application
for Treasury approval.
(c) Eligibility Criteria for State Other Credit Support Programs.--
For a State other credit support program to be approved under this
section, it must be a program of the State that--
(1) can demonstrate that, at a minimum, 1 dollar of public
investment by the State program will cause and result in 1
dollar of new private credit;
(2) can demonstrate a reasonable expectation that, when
considered with all other State programs of the State, such
State programs together have the ability to use amounts of new
Federal contributions to, or for the account of, all such
programs in the State to cause and result in amounts of new
small business lending at least 10 times the new Federal
contribution amount;
(3) for those State other credit support programs that
provide their credit support through 1 or more financial
institution lenders, requires the financial institution lenders
to have a meaningful amount of their own capital resources at
risk in their small business lending; and
(4) extends credit support that meets the following
requirements:
(A) targets an average borrower size of 500
employees or less;
(B) does not extend credit support to borrowers
that have more than 750 employees;
(C) targets support towards loans with an average
principal amount of $5,000,000 or less; and
(D) does not extend credit support to loans that
exceed a principal amount of $20,000,000.
(d) Additional Considerations.--In making a determination that a
State other credit support program is eligible for Federal
contributions to, or for the account of, the State program, the
Secretary shall take into account the following additional
considerations:
(1) the anticipated benefits to the State, its businesses,
and its residents to be derived from the Federal contributions
to, or for the account of, the approved State other credit
support program, including the extent to which resulting small
business lending will expand economic opportunities;
(2) the operational capacity, skills, and experience of the
management team of the State other credit support program;
(3) the capacity of the State other credit support program
to manage increases in the volume of its small business
lending;
(4) the internal accounting and administrative controls
systems of the State other credit support program, and the
extent to which they can provide reasonable assurance that
funds of the State program are safeguarded against waste, loss,
unauthorized use, or misappropriation; and
(5) the soundness of the program design and implementation
plan of the State other credit support program.
(e) Federal Contributions to Approved State Other Credit Support
Programs.--A State other credit support program approved under this
section will be eligible for receiving Federal contributions to, or for
the account of, the State program in an amount consistent with the
schedule describing the apportionment of allocated Federal funds among
State programs delivered by the State to the Secretary under the
allocation agreement.
(f) Minimum Program Requirements for State Other Credit Support
Programs.--
(1) Fund to prescribe.--The Secretary shall, by regulation
or other guidance, prescribe Program requirements for approved
State other credit support programs.
(2) Considerations for fund.--In prescribing minimum
Program requirements for approved State other credit support
programs, the Secretary shall take into consideration, to the
extent the Secretary determines applicable and appropriate, the
minimum Program requirements for approved State capital access
programs in section 5(e).
SEC. 7. REPORTS.
(a) Quarterly Use-of-Funds Report.--
(1) In general.--Not later than 30 days after the beginning
of each calendar quarter, beginning after the first full
calendar quarter to occur after the date the Secretary approves
a State for participation, the participating State shall submit
to the Secretary a report on the use of Federal funding by the
participating State during the previous calendar quarter.
(2) Report contents.--The report shall--
(A) indicate the total amount of Federal funding
used by the participating State;
(B) include a certification by the participating
State that--
(i) the information provided in accordance
with subparagraph (A) is accurate;
(ii) funds continue to be available and
legally committed to contributions by the State
to, or for the account of, approved State
programs, less any amount that has been
contributed by the State to, or for the account
of, approved State programs subsequent to the
State being approved for participation in the
Program; and
(iii) the participating State is
implementing its approved State program or
programs in accordance with this Act and
regulations issued pursuant to section 10.
(b) Annual Report.--Not later than March 31 of each year, beginning
March 31, 2011, each participating State shall submit to the Secretary
an annual report that shall include the following information:
(1) The number of borrowers that received new loans
originated under the approved State program or programs after
the State program was approved as eligible for Federal
contributions.
(2) The total amount of such new loans.
(3) Breakdowns by industry type, loan size, annual sales,
and number of employees of the borrowers that received such new
loans.
(4) The zip code of each borrower that received such a new
loan.
(5) Such other data that the Secretary, in the Secretary's
sole discretion, may require to carry out the purposes of the
Program.
(c) Form.--The reports and data filed pursuant to subsections (a)
and (b) shall be in such form as the Secretary, in the Secretary's sole
discretion, may require.
(d) Termination of Reporting Requirements.--The requirement to
submit reports under subsections (a) and (b) shall terminate for a
participating State with the submission of the completed reports due on
the first March 31 to occur after 5 complete 12-month periods after the
State is approved by the Secretary to be a participating State.
SEC. 8. REMEDIES FOR STATE PROGRAM TERMINATION OR FAILURES.
(a) Remedies.--
(1) In general.--If any of the events listed in paragraph
(2) occur, the Secretary, in the Secretary's discretion, may--
(A) reduce the amount of Federal funds allocated to
the State under the Program; or
(B) terminate any further transfers of allocated
amounts that have not yet been transferred to the
State.
(2) Causal events.--The events referred to in paragraph (1)
are--
(A) termination by a participating State of its
participation in the Program;
(B) failure on the part of a participating State to
submit complete reports under section 7 on a timely
basis; or
(C) noncompliance by the State with the terms of
the allocation agreement between the Secretary and the
State.
(b) De-Allocated Amounts To Be Re-Allocated.--If, after 13 months,
any portion of the amount of Federal funds allocated to a participating
State is deemed by the Secretary to be no longer allocated to the State
after actions taken by the Secretary under subsection (a)(1), the
Secretary shall re-allocate that portion among the participating
States, excluding the State whose allocated funds were deemed to be no
longer allocated, as provided in section 3(b).
SEC. 9. IMPLEMENTATION AND ADMINISTRATION.
(a) General Authorities and Duties.--The Secretary shall--
(1) consult with the Administrator of the Small Business
Administration and the appropriate Federal banking agencies on
the administration of the Program;
(2) establish minimum national standards for approved State
programs;
(3) provide technical assistance to States for starting
State programs and generally disseminate best practices;
(4) manage, administer, and perform necessary program
integrity functions for the Program; and
(5) ensure adequate oversight of the approved State
programs, including oversight of the cash flows, performance,
and compliance of each approved State program.
(b) Funding.--There are hereby appropriated to the Secretary, out
of funds in the Treasury not otherwise appropriated, $2,000,000,000 to
carry out the Program, including to pay reasonable costs of
administering the Program. In administering the Program, the Secretary
is authorized to use the staff and resources of the Department.
(c) Expedited Contracting.--During the 1-year period beginning on
the date of enactment of this Act, the Secretary may enter into
contracts without regard to any other provision of law regarding public
contracts, for purposes of carrying out this Act.
(d) Termination of Secretary's Program Administration Functions.--
The authorities and duties of the Secretary to implement and administer
the Program shall terminate at the end of the 7-year period beginning
on the date of enactment of this Act.
SEC. 10. REGULATIONS.
The Secretary, in consultation with the Administrator of the Small
Business Administration, shall issue such regulations and other
guidance as Secretary determines necessary or appropriate to implement
this Act including, but not limited to, to define terms, to establish
compliance and reporting requirements, and such other terms and
conditions necessary to carry out the purposes of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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