Small Business Jobs Amendments Act of 2010 - Amends the Small Business Jobs Act of 2010 with respect to the Small Business Lending Fund Program (Program) to: (1) remove the requirement that a community development loan fund (CDLF) be a tax-exempt entity; (2) include as an eligible institution under the Program any small business lending company that has total assets equal to or less than $10 billion; and (3) include as authorized small business lending nonowner-occupied commercial real estate loans. Directs the Secretary of the Treasury to develop eligibility criteria to determine the financial ability of a CDLF to participate in the Program.
Allows CDLFs to apply to receive from the Small Business Lending Fund up to 10% (current law allows up to 5%) of the total assets of the CDLF for investment in small businesses.
Provides: (1) dividend and interest incentives for participating loan institutions based on increases in small business lending; and (2) an authorized alternative computation of small business lending by such institutions. Requires eligible institutions to: (1) provide Program outreach to Indian tribes; and (2) include on its Internet website a statement that the institution is seeking to make small business loans and may not discriminate on the basis of race, color, religion, national origin, sex, marital status, or age. Requires the Secretary, in exercising loan authorities, to consider increasing the availability of credit for small businesses operating on tribal trust lands or other Indian areas.
Authorizes an eligible institution to temporarily amortize, for up to a 10-year period, any loan loss or write-down in order to increase the availability of credit for small businesses.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6219 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 6219
To amend the Small Business Jobs Act of 2010 to enhance the provisions
of the Small Business Lending Fund Program, to amend the Small Business
Investment Act of 1958 to create a Small Business Early-Stage
Investment Program, and to create the Small Business Borrower
Assistance Program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 28, 2010
Mr. Frank of Massachusetts introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To amend the Small Business Jobs Act of 2010 to enhance the provisions
of the Small Business Lending Fund Program, to amend the Small Business
Investment Act of 1958 to create a Small Business Early-Stage
Investment Program, and to create the Small Business Borrower
Assistance 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 Jobs Amendments Act
of 2010''.
SEC. 2. SMALL BUSINESS LENDING FUND AMENDMENTS.
(a) In General.--Subtitle A of title IV of the Small Business Jobs
Act of 2010 is amended--
(1) in section 4102--
(A) in paragraph (8)--
(i) in subparagraph (A), by adding ``and''
at the end;
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraph (C) as
subparagraph (B).
(B) in paragraph (11)--
(i) in subparagraph (C), by striking
``and'' at the end;
(ii) in subparagraph (D), by striking the
period at the end and inserting ``; and''; and
(iii) by adding at the end the following
new subparagraph:
``(D) any small business lending company that has
total assets of equal to or less than
$10,000,000,000.'';
(C) in paragraph (18)(A)--
(i) by inserting after ``such lending'' the
following: ``is made to a small business and'';
and
(ii) by adding at the end the following new
clause:
``(v) Nonowner-occupied commercial real
estate loans.''; and
(D) by adding at the end the following new
paragraphs:
``(20) Small business.--The term `small business' has the
meaning given the term `small business concern' under section 3
of the Small Business Act (15 U.S.C. 632).
``(21) Small business lending company.--The term `small
business lending company' has the meaning given such term under
section 3(r)(1) of the Small Business Act (15 U.S.C.
632(r)(1)).'';
(2) in section 4103--
(A) in subsection (b)--
(i) in paragraph (1), by striking the
period at the end and inserting the following:
``, and, notwithstanding other provisions of
Federal law, such debt instruments issued by an
eligible institution organized in mutual form
or that has made a valid election to be taxed
under subchapter S of chapter 1 of the Internal
Revenue Code of 1986 shall be included as a
component of tier 1 capital.''; and
(ii) in paragraph (4), by amending
subparagraph (B) to read as follows:
``(B) Eligible standards.--The Secretary, in
consultation with the Community Development Financial
Institutions Fund, shall develop eligibility criteria
to determine the financial ability of a CDLF to
participate in the Program and repay the investment.
Such criteria may include net asset ratio to total
assets, ratio of loan loss reserves to loans and leases
90 days or more delinquent (including loans sold with
full recourse), positive net income measured on a 3-
year rolling average, operating liquidity ratio, ratio
of loans and leases 90 days or more delinquent
(including loans sold with full recourse) to total
equity plus loan loss reserves, or any other measures
deemed appropriate. In addition, CDLFs participating in
the Program shall submit audited financial statements
to the Secretary, have a clean audit opinion, and have
at least three years of operating experience.'';
(B) in subsection (d)--
(i) in paragraph (1)(F), by striking ``5
percent'' and inserting ``10 percent'';
(ii) in paragraph (5), by adding at the end
the following new subparagraphs:
``(J) Incentives contingent on an increase in the
number of loans made.--For any quarter during the first
4\1/2\-year period following the date on which an
eligible institution receives a capital investment
under the Program, other than the first such quarter,
in which the institution's change in the amount of
small business lending relative to the baseline is
positive, if the number of loans made by the
institution does not increase by 2.5 percent for each
2.5 percent increase of small business lending, then
the rate at which dividends and interest shall be
payable during the following quarter on preferred stock
or other financial instruments issued to the Treasury
by the eligible institution shall be--
``(i) 5 percent, if such quarter is within
the 2-year period following the date on which
the eligible institution receives the capital
investment under the Program; or
``(ii) 7 percent, if such quarter is after
such 2-year period.
``(K) Alternative computation.--An eligible
institution may choose to compute their small business
lending amount by computing the amount of small
business lending, as if the definition of such term did
not require that the loans comprising such lending be
made to small business. Any eligible institution
choosing to compute their small business lending in
this manner shall certify that all lending included by
the institution for purposes of computing the increase
in lending under this paragraph was made to small
businesses.''; and
(iii) in paragraph (8)--
(I) by amending the heading to read
as follows: ``Outreach to minorities,
women, veterans, and indian tribes'';
(II) in subparagraph (B), by
striking ``and'' at the end;
(III) in subparagraph (C), by
striking the period at the end and
inserting ``; and''; and
(IV) by adding at the end the
following new subparagraph:
``(D) represent or work with or are members of
Indian Tribes.''; and
(C) by adding at the end the following new
subsection:
``(e) Notification to Customers.--Any eligible institution
receiving funds under the Program shall--
``(1) disclose on every applicable loan transaction that
the loan is being made possible by the Program; and
``(2) if such institution has an established internet
website, such institution shall make available on its internet
website--
``(A) the written reports made by the Secretary
pursuant to paragraphs (1) and (2) of section
4107(b)(3); and
``(B) a statement that the institution, as a
participant in the Program, is seeking to make small
business loans to qualified borrowers and may not
discriminate on the basis of any factor prohibited
under the Equal Credit Opportunity Act, including the
race, color, religion, national origin, sex, marital
status, or age.'';
(3) in section 4105--
(A) in paragraph (8), by striking ``and'' at the
end;
(B) in paragraph (9), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(10) increasing the availability of credit for small
businesses operating on Tribal trust lands or other Indian
areas.'';
(4) by redesignating section 4113 as section 4114; and
(5) by inserting after section 4112 the following new
section:
``SEC. 4113. TEMPORARY AMORTIZATION AUTHORITY.
``(a) Purpose.--The purpose of this section is to address the
ongoing effects of the financial crisis on small businesses by
providing temporary authority to amortize losses or write-downs in
order to increase the availability of credit for small businesses.
``(b) In General.--For purposes of capital calculation under the
Financial Institutions Examination Council's Consolidated Reports of
Condition, an eligible institution may choose to amortize any loss or
write-down, on a quarterly straight line basis over a period determined
under subsection (c), beginning with the month in which such loss or
write-down occurs, resulting from the application of FASB Statement 114
or 144 to--
``(1) other real estate owned (as defined under section
34.81 of title 12, Code of Federal Regulation), or
``(2) an impaired loan secured by real estate,
provided that the institution discloses the difference in the amount of
the institution's capital, when calculated taking into account the
temporary amortization, from the amount of the institution's capital
when calculated without taking into account the temporary amortization
on the Financial Institutions Examination Council's Consolidated
Reports of Condition.
``(c) Amortization Requirements.--During the initial 2-year period
referred to in section 4103(d)(5), an eligible institution's
amortization period shall be adjusted to reflect the following schedule
based on the institution's change in the amount of small business
lending relative to the baseline:
``(1) If the amount of small business lending has increased
by less than 2.5 percent, the amortization period shall be 6
years.
``(2) If the amount of small business lending has increased
by 2.5 percent or greater, but by less than 5.0 percent, the
amortization period shall be 7 years.
``(3) If the amount of small business lending has increased
by 5.0 percent or greater, but by less than 7.5 percent, the
amortization period shall be 8 years.
``(4) If the amount of small business lending has increased
by 7.5 percent or greater, but by less than 10.0 percent, the
amortization period shall be 9 years.
``(5) If the amount of small business lending has increased
by 10 percent or greater, the amortization period shall be 10
years.
``(d) Minimum Underwriting Standards.--The appropriate Federal
banking agency for an eligible institution that chooses to amortize any
loss or write-down as permitted under subsection (b) shall, within 60
days of the date of the enactment of this title, issue regulations
defining minimum underwriting standards that must be used for loans
made by the eligible institution.
``(e) Effective Date.--The provisions of this section shall apply
to loan origination that occurred on or after January 1, 2003, and
before January 1, 2008.''.
(b) Technical Amendment.--The table of contents for the Small
Business Jobs Act of 2010 is amended by striking the item related to
section 4113 and inserting the following new items:
``4113. Temporary amortization authority.
``4114. Sense of Congress.''.
SEC. 3. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the later of the following:
(1) The date of the enactment of this Act.
(2) The date of the enactment of the Small Business Jobs
Act of 2010.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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