Small Business Intermediary Lending Pilot Program Act of 2010 - Establishes a three-year small business intermediary lending pilot program under which the Administrator of the Small Business Administration (SBA) may make direct loans to eligible nonprofit lending intermediaries for the purpose of making loans of up to $200,000 each to startup, newly-established, and growing small businesses. Authorizes the Administrator, under the program, to make one percent, 20-year loans of up to $3 million to up to 20 lending intermediaries.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5332 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5332
To amend the Small Business Act to establish a small business
intermediary lending pilot program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 18, 2010
Ms. Kilroy (for herself, Mr. Ryan of Ohio, and Mr. Miller of North
Carolina) introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act to establish a small business
intermediary lending pilot program.
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 ``Small Business Intermediary Lending
Pilot Program Act of 2010''.
SEC. 2. SMALL BUSINESS INTERMEDIARY LENDING PILOT PROGRAM.
(a) In General.--Section 7 of the Small Business Act is amended by
striking subsection (l) and inserting the following:
``(l) Small Business Intermediary Lending Pilot Program.--
``(1) Definitions.--In this subsection--
``(A) the term `eligible intermediary'--
``(i) means a private, nonprofit entity
that--
``(I) seeks or has been awarded a
loan from the Administrator to make
loans to small business concerns under
this subsection; and
``(II) has not less than 1 year of
experience making loans to startup,
newly established, or growing small
business concerns; and
``(ii) includes--
``(I) a private, nonprofit
community development corporation;
``(II) a consortium of private,
nonprofit organizations or nonprofit
community development corporations; and
``(III) an agency of or nonprofit
entity established by a Native American
Tribal Government; and
``(B) the term `Program' means the small business
intermediary lending pilot program established under
paragraph (2).
``(2) Establishment.--There is established a 3-year small
business intermediary lending pilot program, under which the
Administrator may make direct loans to eligible intermediaries,
for the purpose of making loans to startup, newly established,
and growing small business concerns.
``(3) Purposes.--The purposes of the Program are--
``(A) to assist small business concerns in areas
suffering from a lack of credit due to poor economic
conditions or changes in the financial market; and
``(B) to establish a loan program under which the
Administrator may provide loans to eligible
intermediaries to enable the eligible intermediaries to
provide loans to startup, newly established, and
growing small business concerns for working capital,
real estate, or the acquisition of materials, supplies,
or equipment.
``(4) Loans to eligible intermediaries.--
``(A) Application.--Each eligible intermediary
desiring a loan under this subsection shall submit an
application to the Administrator that describes--
``(i) the type of small business concerns
to be assisted;
``(ii) the size and range of loans to be
made;
``(iii) the interest rate and terms of
loans to be made;
``(iv) the geographic area to be served and
the economic, poverty, and unemployment
characteristics of the area;
``(v) the status of small business concerns
in the area to be served and an analysis of the
availability of credit; and
``(vi) the qualifications of the applicant
to carry out this subsection.
``(B) Loan limits.--No loan may be made to an
eligible intermediary under this subsection if the
total amount outstanding and committed to the eligible
intermediary by the Administrator would, as a result of
such loan, exceed $3,000,000 during the participation
of the eligible intermediary in the Program.
``(C) Loan duration.--Loans made by the
Administrator under this subsection shall be for a term
of 20 years.
``(D) Applicable interest rates.--Loans made by the
Administrator to an eligible intermediary under the
Program shall bear an annual interest rate equal to
1.00 percent.
``(E) Fees; collateral.--The Administrator may not
charge any fees or require collateral with respect to
any loan made to an eligible intermediary under this
subsection.
``(F) Delayed payments.--The Administrator shall
not require the repayment of principal or interest on a
loan made to an eligible intermediary under the Program
during the 2-year period beginning on the date of the
initial disbursement of funds under that loan.
``(G) Maximum participants and amounts.--During
each of fiscal years 2010, 2011, and 2012 the
Administrator may make loans under the Program--
``(i) to not more than 20 eligible
intermediaries; and
``(ii) in a total amount of not more than
$60,000,000.
``(5) Loans to small business concerns.--
``(A) In general.--The Administrator, through an
eligible intermediary, shall make loans to startup,
newly established, and growing small business concerns
for working capital, real estate, and the acquisition
of materials, supplies, furniture, fixtures, and
equipment.
``(B) Maximum loan.--An eligible intermediary may
not make a loan under this subsection of more than
$200,000 to any 1 small business concern.
``(C) Applicable interest rates.--A loan made by an
eligible intermediary to a small business concern under
this subsection, may have a fixed or a variable
interest rate, and shall bear an interest rate
specified by the eligible intermediary in the
application of the eligible intermediary for a loan
under this subsection.
``(D) Review restrictions.--The Administrator may
not review individual loans made by an eligible
intermediary to a small business concern before
approval of the loan by the eligible intermediary.
``(6) Termination.--The authority of the Administrator to
make loans under the Program shall terminate 3 years after the
date of enactment of the Small Business Intermediary Lending
Pilot Program Act of 2010.''.
(b) Rulemaking Authority.--Not later than 180 days after the date
of enactment of this Act, the Administrator shall issue regulations to
carry out section 7(l) of the Small Business Act, as amended by
subsection (a).
(c) Availability of Funds.--Any amounts provided to the
Administrator for the purposes of carrying out section 7(l) of the
Small Business Act, as amended by subsection (a), shall remain
available until expended.
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Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
Sponsor introductory remarks on measure. (CR H3665-3666)
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