Veterans Access to Capital Act of 2012 - Amends the Small Business Investment Act of 1958 to authorize the Administrator of the Small Business Administration (SBA), using up to 20% of annual amounts available for SBA loans to state and local development companies, to make loans directly to small businesses owned and controlled by veterans to be used on projects having a sound business purpose. Provides loan limits and requires partial project funding by such small business.
Amends the Small Business Act to authorize the Administrator to make up to 20% of the annual amounts available for SBA section 7(a) general small business loans available for loans to veteran-owned small businesses.
Directs the Administrator, for purposes of loans or loan guarantees to veteran- or disabled veteran-owned small businesses, to reduce any applicable requirement relating to the veteran's credit score, as long as the veteran has complied with other conditions that the Administrator may require.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5835 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 5835
To amend the Small Business Act and the Small Business Investment Act
of 1958 to provide for additional loan programs for veteran-owned small
businesses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 18, 2012
Mr. Boswell introduced the following bill; which was referred to the
Committee on Small Business
_______________________________________________________________________
A BILL
To amend the Small Business Act and the Small Business Investment Act
of 1958 to provide for additional loan programs for veteran-owned small
businesses, 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 ``Veterans Access to Capital Act of
2012''.
SEC. 2. LOAN PROGRAM FOR VETERANS FOR CERTAIN PROJECTS.
Section 502 of the Small Business Investment Act of 1958 (15 U.S.C.
696) is amended--
(1) in the matter preceding paragraph (1) by striking ``The
Administration'' and inserting ``(a) In General.--The
Administration''; and
(2) by adding at the end the following:
``(b) Loan Program for Veterans.--
``(1) Loan program.--From amounts made available under
subsection (a), the Administrator of the Small Business
Administration may make loans each fiscal year, totalling not
more than 20 percent of such amounts, directly to small
business concerns owned and controlled by veterans (as such
term is defined in section 3(q)(3) of the Small Business Act
(15 U.S.C. 632(q)(3)).
``(2) Terms and conditions.--The Administrator may make
loans under this subsection only in accordance with the
following:
``(A) Use of funds.--The proceeds of the loan shall
be used only for a project with a sound business
purpose approved by the Administration.
``(B) Maximum amount.--Loans made by the
Administration under this subsection shall be limited
to--
``(i) $5,000,000, if the loan proceeds will
not be directed toward a goal or project
described in clause (ii), (iii), (iv), or (v);
``(ii) $5,000,000, if the loan proceeds
will be directed toward 1 or more of the public
policy goals described under section 501(d)(3);
``(iii) $5,500,000 for each project of a
small manufacturer;
``(iv) $5,500,000 for each project that
reduces the borrower's energy consumption by at
least 10 percent; and
``(v) $5,500,000 for each project that
generates renewable energy or renewable fuels,
such as biodiesel or ethanol production.
``(C) Funding by the small business concern.--The
small business concern (or its owners, stockholders, or
affiliates) shall provide--
``(i) at least 15 percent of the total cost
of the project financed, if the small business
concern has been in operation for a period of 2
years or less;
``(ii) at least 15 percent of the total
cost of the project financed if the project
involves the construction of a limited or
single purpose building or structure;
``(iii) at least 20 percent of the total
cost of the project financed if the project
involves both of the conditions set forth in
clauses (i) and (ii); or
``(iv) at least 10 percent of the total
cost of the project financed, in all other
circumstances, at the discretion of the
Administrator.
``(D) Collateralization.--Collateral provided by
the small business concern shall be so provided in
accordance with the requirements of subsection
(a)(3)(E).
``(E) Additional requirements.--The small business
concern shall comply with the requirements of
paragraphs (4), (5), (6), and (7) of subsection (a),
except that--
``(i) for purposes of subparagraph
(C)(i)(I) of such paragraph (7), the term
`borrower' means a small business concern that
submits an application to the Administrator
under this subsection; and
``(ii) clauses (iii) through (vi) of such
paragraph (7)(C) shall not apply in the case of
that small business concern.
``(3) Definition.--As used in this subsection, the term
`small manufacturer' means a small business concern--
``(A) the primary business of which is classified
in sector 31, 32, or 33 of the North American
Industrial Classification System; and
``(B) all of the production facilities of which are
located in the United States.''.
SEC. 3. LOAN PROGRAM FOR VETERANS.
Section 7(a) of the Small Business Act is amended by adding at the
end the following:
``(36) Loan program for veterans.--Not more than 20 percent
of loans made under this subsection in a fiscal year may be
loans under this paragraph. The Administrator may make loans
each fiscal year to small business concerns owned and
controlled by veterans (as such term is defined in section
3(q)(3)) in the same manner as loans otherwise made under this
subsection, except that such loans may only be made directly by
the Administrator to the small business concern.''.
SEC. 4. VETERAN CREDIT SCORE RELIEF.
(a) Small Business Act.--The Small Business Act (15 U.S.C. 631 et
seq.) is amended by redesignating section 45 as section 46 and
inserting after section 44 the following:
``SEC. 45. VETERAN CREDIT SCORE RELIEF.
``For purposes of loans or loan guarantees under this Act to small
business concerns owned and controlled by veterans or to small business
concerns owned and controlled by service-disabled veterans, if a
veteran has complied with such conditions as the Administrator may by
rule require, the Administrator shall reduce any applicable requirement
relating to a veteran's credit score. No decrease in credit score
attributable to a violation of the Servicemembers Civil Relief Act (50
U.S.C. App. 501 et seq.) shall apply.''.
(b) Small Business Investment Act of 1958.--Title I of the Small
Business Investment Act of 1958 (15 U.S.C. 661 et seq.) is amended by
inserting after section 103 the following:
``SEC. 104. VETERAN CREDIT SCORE RELIEF.
``For purposes of loans or loan guarantees under this Act to small
business concerns owned and controlled by veterans or to small business
concerns owned and controlled by service-disabled veterans, if a
veteran has complied with such conditions as the Administrator may by
rule require, the Administrator shall reduce any applicable requirement
relating to a veteran's credit score. No decrease in credit score
attributable to a violation of the Servicemembers Civil Relief Act (50
U.S.C. App. 501 et seq.) shall apply.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Small Business.
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